Dividing a market into different geographical units such as nation, states, regions countries cities or neighborhoods.

A Co. many decide to operation one or a few geographical areas, or to operate in all areas but pay attention to geographical differences needs and wants.

Many Co. today are localizing their products, advertising, promotions and sales efforts to fit the needs of individual regions, cities, and even neighborhoods,.

For e.g. Procter & Gamble sells Ariel Laundry detergent primarily in Los Angels, San Diego, San Francisco, Miami and South Texas Areas with larger concentrations of Hispanic Consumers.