Abel Building Solutions, a steel manufacturing company that supplies steel to various construction companies, segments its customers based on the number of employees in the company and the sales revenue generated by it. This strategy is used by Abel to develop specific marketing plans for their customers. What type of segmentation is Abel using?

Question

Quizplus · Accepted Answer

Abel Building Solutions is using demographic characteristics for segmentation, as they are categorizing their customers based on quantifiable statistics such as the number of employees and sales revenue. This approach is typical of demographic segmentation, which involves dividing the market into segments based on variables such as age, gender, income, occupation, and in the case of businesses, size and revenue.

Abel Building Solutions, a Steel Manufacturing Company That Supplies Steel