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Region groupings and market tiers: why they are not the same axis

Region groupings and market tiers answer different questions. Mixing them into one field is what makes reports and routing rules disagree with each other.

Published

  • regions
  • market tiers
  • data modelling

Region groupings and market tiers are often stored in the same column because they are both ways of sorting countries into buckets. They arrive from different directions, they change for different reasons, and they are consumed by different readers, so a single field that tries to hold both eventually serves neither.

This article separates the two. It describes where groupings come from, why a market tier is a business judgement that has nothing to do with format support, and how to keep a grouping that will be re-read years after it was written.

Where do region groupings actually come from?

Groups are conventions, not facts about the world. A country does not carry its region in the same way that it carries a coastline; someone decided, for a purpose, which neighbours it should be reported with.

That has a practical consequence. Two teams can both be right about the grouping of the same country and still disagree, because one is grouping for a report and the other for a shipping rate card. The disagreement is only a problem when the grouping is stored once and consumed everywhere, because then one reader’s purpose silently overrides the other’s.

The remedy is not to search for the one true grouping. It is to name each grouping — report region, logistics region, content region — and to let a country occupy a position in each of them independently.

Continents, subregions and the official regional codes

The most stable groupings come from the international coding systems. They define regions and subregions, and they exist precisely so that statistics can be aggregated across countries without everyone inventing their own shelf order.

Because they are maintained as standards, they travel well. A report grouped by an official subregion can be reproduced by someone who has never seen your internal conventions. A report grouped by your internal conventions can only be read by someone who has.

The cost is granularity: standard regions are defined for statistical purposes, and business questions often cut across them. Treat the official grouping as the baseline, and layer the business grouping on top as a separate attribute rather than redefining the baseline.

Market tiers and format support are unrelated

A market tier is a statement about priority, not about capability. The usual shape is a small number of levels arranged by attention: a launch market, a focus market, a watch list, and the rest. None of those levels says anything about how complete the data for that country is.

The confusion arises because both attributes feel like levels, so they get encoded as one. The result is a system in which lowering a country’s tier appears to degrade its data, and a country with excellent data but no commercial plan ends up filed as unsupported.

Keep them apart and the failure modes separate as well. A country can be a launch market with thin data — which is a data problem — or a watch-list market with complete data, which is not a problem at all.

Attribute Type of statement Who decides it How often it changes
Region or subregion A convention about where Reporting or standards body Rarely, and by agreement
Market tier A judgement about priority Commercial owner On planning cycles
Format support A fact about the data Data or engineering owner When the data changes

Which group should a dependency belong to?

Dependencies, overseas departments and other regions of contested status are where a grouping scheme is most likely to be wrong, because there is no obvious answer to inherit and every available answer has a precedent behind it.

The rule that works is to write the criterion down instead of recalling it. Is a dependency grouped with the state that administers it, with the geographic region it sits in, or in a group of its own? Any of the three can be right; none of them is self-evident, and the person applying the rule six months from now will not be able to reconstruct it from the data.

Once the criterion exists, it must also be applied consistently through the coding layer. The guide to ISO country and subdivision codes is the place to look for how the code systems treat these entities, because a grouping that contradicts the codes underneath it will keep producing exceptions in joins.

Why groupings drift over time

A grouping is a snapshot of a situation that keeps moving. Markets open and close, regulations change, a supply route becomes impractical, and a country that was once an obvious member of one group becomes an odd fit.

Two properties make that drift survivable. A grouping should be configurable, so that changing it does not require changing code. And a past record should be traceable, so that a report produced last year can still say which group the country was in at that time.

If the grouping is only ever overwritten in place, history becomes unreadable. Nobody can tell whether a dip in a chart is a real change or an artefact of a country having been moved between groups mid-period.

For developers: keep the grouping key out of the code

The strongest practical advice in this area is to make the grouping a value rather than a branch. A country list that carries an identifier for each of its groupings can be regrouped by editing data; a country list that carries an identifier only when a team remembered to add a branch cannot.

Model the groupings as separate attributes with their own allowed values, each with a short definition attached. Then any consumer — a report, a routing table, a content plan — picks the grouping it needs rather than inheriting whichever one was stored first.

Keep the definitions next to the values, and keep them short enough to read. When someone asks what a tier means, the answer should be in the same artefact as the tier itself. The country and region directory shows how a directory can be organised by region while keeping countries individually addressable, which is the same separation applied one level down.

Everything named above is illustrative. The grouping names, tier names and country placements in this article are synthetic examples chosen to explain a modelling choice; they describe no real company’s market plan and no real reporting scheme, and they should not be read as one.

Next steps

List every place in your system where countries are grouped, and check whether they are all using the same attribute for the same purpose. Where they are not, split the attribute before adding another value to it. The guide to cross border address scenarios shows what happens when several country attributes have to agree inside one transaction, and the guide to choosing countries for test data covers how the underlying set of countries gets selected.

Keep reading

Address & Identity Data Formats for 86 Countries guides