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Geodemographics uses geographical information, typically census and other sociodemographic and consumer statistics for very localized geographical areas, to improve the targeting of advertising and marketing communications, such as mail shots and door drops, and to optimize the location of facilities or businesses. The central goal of geodemographics is to classify people according to the type of residential neighborhood in which they live. The segmentation scheme (that is, the system of classification) is developed through complex proprietary spatial and nonspatial statistical procedures that group neighborhoods according to their similar combinations of geographic, demographic, and consumer characteristics.

For example, a geodemographic classification might determine that residents living between the 1200 block and the 1600 block of Ash Street are likely to buy a lot of encyclopedias and ...

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