Australia-based Renewable Energy Ltd.sells a $10 million device that converts manure into energy.One of these devices is capable of generating energy equal to $2 million of natural gas per year.The company believes its target market is businesses that use a lot of energy like its first customer, a fertilizer manufacturer, and companies located in rural areas.It most likely will use which of the following strategies to segment its market?
A)behavioral and geographic
B)number of employees and behavioral
C)purchase location and purchase type
D)NAICS code and geographic
E)behavioral and NAICS code

Question

Quizplus · Accepted Answer

The company is targeting businesses located in rural areas, which can be identified by geographic segmentation. Additionally, the company mentions its first customer is a fertilizer manufacturer, which falls under the NAICS code (North American Industry Classification System) for manufacturing. Therefore, the company is likely to use NAICS code and geographic segmentation to target potential customers.

Australia-Based Renewable Energy Ltd