Future Business Leaders of America (FBLA) Marketing Practice Test

What is the concept called that refers to people in the same physical location having similar wants and needs?

1. Market segmentation

2. Geographic segmentation

3. Psychographic segmentation

4. Behavioral targeting

The correct answer is: Geographic segmentation

The concept that refers to people in the same physical location having similar wants and needs is known as geographic segmentation. This marketing strategy involves dividing a market into segments based on geography, which can include cities, regions, or even countries. The rationale behind this approach is that individuals living in a particular area may share certain characteristics, preferences, and needs due to cultural, economic, or environmental influences. By focusing on geographic segmentation, businesses can tailor their marketing efforts to better meet the local demands and preferences of consumers, making it more effective. For instance, a company might promote snow gear in colder climates and beachwear in warmer areas. Market segmentation, while related, is a broader concept that categorizes the market into different segments without specifically focusing on geography. Psychographic segmentation, on the other hand, classifies consumers based on their lifestyles, values, or personality traits, rather than their physical location. Behavioral targeting focuses on consumer behaviors such as purchasing patterns and usage, which also do not directly address the geographic location of customers. Understanding these distinctions helps in using the correct segmentation strategy in marketing.