Why is geodemographic segmentation important?


Quick Answer

Geodemographic segmentation is important for understanding populations in a particular geographic area and for dividing resources across that area in an effective way. Geodemographic segmentation is a marketing classification technique for categorizing people who live in the same area and who share multiple other traits, such as ethnicity or age.

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Full Answer

The principle behind geodemographic segmentation is that differences within groups are smaller than differences between groups. Knowing what kind of consumer lives in a particular area is useful for deciding how to advertise a product or service. It is also useful for targeting sales efforts at particular kinds of consumers. Geodemographic segmentation methods have also been used to infer ethnicity from lists of residents' names.

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