Which type of segmentation divides markets by geographic characteristics?

The correct answer is geographic segmentation because it specifically focuses on dividing a market based on geographic characteristics such as location, climate, region, and population density. This type of segmentation allows marketers to tailor their strategies to meet the specific needs and preferences of customers in different areas. For instance, a company may offer different products or marketing messages in urban versus rural areas or adjust its offerings based on regional climate differences.

When companies understand the geographic characteristics of their target market, they can optimize their marketing efforts to address local preferences, cultural distinctions, and logistical considerations. This can lead to more effective marketing strategies and ultimately better engagement with consumers.

Demographic segmentation, on the other hand, categorizes markets based on traits like age, gender, income, and education level, while behavioral segmentation focuses on consumer behavior, such as purchasing patterns and brand loyalty. Psychographic segmentation dives into psychological aspects like personality, values, and lifestyle. Each of these segmentation methods has its own focus area, distinct from the geographic segmentation that specifically considers the physical location of the market.