Legal Definitions - geographic market

A geographic market is a specific area or demographic segment where there is demand for particular goods or services. It is a part of the relevant market that identifies the regions in which a firm might compete. If a firm can raise prices or cut production without causing a quick influx of supply to the area from outside sources, that firm is operating in a distinct geographic market.

For example, if a company sells surfboards in California, their geographic market would be the state of California. If they try to raise prices, they will not face competition from surfboard sellers in other states because shipping costs would make it unprofitable for those sellers to compete in California.

Another example is a restaurant that serves a specific type of cuisine, such as Mexican food. Their geographic market would be the area where there is demand for Mexican food, such as neighborhoods with a high Hispanic population or areas with a lack of Mexican restaurants.