Question

Which two of the following demographic segmentation variables would firms use to segment organizational markets?

a) Usage rate and type of outlet
b) Global region and statistical area
c) Statistical area and annual sales
d) Lifestyle and statistical area

Answer 1

Firms use demographic variables like statistical area and annual sales to segment organizational markets, with the goal of tailoring marketing strategies appropriately.

Step-by-step explanation:

When firms seek to segment organizational markets, they consider multiple demographic segmentation variables. Among the provided options, c) Statistical area and annual sales are the two variables firms would typically use to segment organizational markets. Segmenting by statistical area helps firms understand the geographic distribution of organizations, while annual sales provide insight into the organization's size and purchasing capacity. Firms tailor their marketing strategies according to these segments to better meet the needs of their target organizations.