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

Answer 1

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

1. businesses have set standards,
2. they are easy to relate with
3. they already have a hub of numerous customers waiting to buy from them
4. there is an assurance of consistent demand for the herbs

Cheers