Gear Power Inc., an automobile company, manufactures different cars for different market segments. It markets its SUVs for customers who live in the mountains, sedans for customers in the coastal plains, and smaller hatchback cars for those in big cities. In this scenario, Gear Power Inc. is primarily using variables of market segmentation.

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Explanation:

Market segmentation refers to dividing your total potential market into smaller segments or groups based on different characteristics that each consumer in a segment shares, and are not shared by other segments. This way the marketing strategies can focus on the different needs that consumers in a segment have based on similar characteristics that they share.  

In this case, Gear Power segments its total market using geographical variables: mountain areas, coastal areas and urban areas. E.g. it will offer SUVs to those living in the mountains because they need larger and tougher vehicles to satisfy their needs, or they will sell small hatchbacks to people living in big cities because space is very limited.

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