A geographic area refers to a specific location, often defined by physical boundaries such as state or city borders. This area can be determined by a variety of factors, including population density, land features, or cultural and political boundaries. A geographic area can be used for a variety of purposes, such as for regional marketing campaigns or for analyzing market penetration.
There are several types of geographic areas that can be used to define a location. Some of the most common types include:
This type of geography is defined by political boundaries such as countries, states/provinces, and cities.
Physical geography is defined by natural features such as mountains, rivers, and forests.
Cultural geography is defined by cultural characteristics such as language, religion, and customs.
In regional marketing, geographic areas are used to target specific regions where a business can have the greatest impact. By analyzing geodemographic data, businesses can determine which locations will be most receptive to their marketing efforts based on factors such as age demographics or income levels.
Target geography is determined through market penetration analysis which examines areas where there is a high concentration of potential customers. Retail trade areas are also examined to determine foot traffic patterns and identify areas where there may be potential customers who have not yet been reached.
Geodemographic data refers to information that combines demographic data with geographic information to create detailed profiles of people living in specific areas. This data can be used to better understand consumer behaviors and preferences within certain locations.
Market penetration analysis is the process of examining the level of sales achieved within a specific geographic area compared to the total accessible market for a particular product or service. This analysis can help businesses identify potential areas of untapped customer bases and develop strategies to better reach these customers.
A retail trade area is the geographic region surrounding a retail location where a majority of the customers are likely to originate from. This area is determined by analyzing data on customer demographics, spending patterns, and physical distance from the location.
