Market segmentation is the process of dividing a market into groups, known as segments, of customers with similar needs or characteristics who are likely to exhibit similar purchase behaviour. In segmenting the market the business is acknowledging that different 'types' of buyers may require different products or marketing approaches / marketing mixes.Within business studies we focus on the most commonly used bases for segmentation:

• geographical bases (region, urban/non-urban environment...)
• demographic bases (age, gender, life cycle phase...)
• psychographic bases (lifestyle, values, personality...)
• behaviour bases (seeking profits, degree of use, degree of loyalty...)

Geographic segmentation divides the market into different geographical units, be they neighbourhoods, cities, counties, countries, or world regions such as Europe or South East Asia etc.

Such segmentation will seek to identify factors, which should be taken into account in developing appropriate marketing strategies for each area, including Language, Climate, and Lifestyles

Geographical segmentation is most commonly used by multi-national and global businesses, who may alter their marketing mix based on the differing needs of consumers in each geographic segment they operate within.