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 consists of businesses similar to its first customer,a fertilizer manufacturer that was located in a rural area.If the firm decides to expand to the U.S. ,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 best strategy for Renewable Energy Ltd. to segment its market in the U.S. would be based on NAICS (North American Industry Classification System) code and geographic location. This would allow the company to target businesses in specific industries (such as agriculture or manufacturing) that are located in rural areas, similar to their first customer in Australia.

Australia-Based Renewable Energy Ltd