Question:
You grow lots of different herbs and spices on your certified organic farm, and you can think of many different people and businesses who might be interested in purchasing them. Some of your prospect ideas are obvious, whereas others are a bit of a stretch. What's the best way to segment these prospects so that you can focus on those with the greatest potential first
Options:
A. sort by personal characteristics, such as age and income level.
B. sort by customer types, such as commercial and reseller.
C. sort by customer types, such as restaurants, grocery stores, and food product manufacturers.
D. sort by end-use application, such as food preparation versus food product production
Answer:
The best choice is C) sort by customer types, such as restaurants, grocery stores, and food product manufacturers.
Explanation:
The above choice is called:
Firmographic Segmentation: This refers to focusing ones marketing efforts on Business to Business relationships. This is more beneficial because
- businesses have set standards,
- they are easy to relate with
- they already have a hub of numerous customers waiting to buy from them
- there is an assurance of consistent demand for the herbs
Cheers
Answer:
Effect on income= $16,000 increase
Explanation:
Giving the following information:
Pillows
Sales revenue $300,000
variable expenses 240,000
Contribution margin 60,000
Fixed expenses 76,000
Operating income(loss) (16,000)
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= avoidable fixed costs - contribution margin
Effect on income= 76,000 - 60,000
Effect on income= $16,000 increase
It’s very important to your business. Good records will help you do the following: Monitor the progress of your business.