Name: 

There are three different types of business markets: producers, trade industries (retailers and wholesalers), and governments.  The importance of each type is different for each product or service category, depending upon the demand each type has for a given product or service.  Importance can be quantified in terms of sales dollars or volume, and in terms of percentage of total category sales. 

The following is a chart of energy use in Canada over 1997–2001 taken from the Statistics Canada Web site (www.statscan.ca).  If you were considering entering the energy market with a new alternative fuel or energy-producing system, you would want to focus your initial sales efforts to be efficient with your limited resources.

ENERGY USE IN CANADA (in petajoules)

	1997	1998	1999	2000	2001
Energy use – total demand	7095.5	6956.2	7132.5	7376.0	7163.3
Industrial	2196.9	2149.0	2177.3	2268.6	2161.7
Transportation	2182.9	2256.6	2307.3	2279.8	2240.3
Agricultural	230.0	224.7	229.9	231.9	218.1
Residential	1295.1	1183.5	1232.3	1287.8	1239.6
Public Administration	135.9	130.3	124.5	131.3	126.8
Commercial and Other Institutional Customers	1054.8	1012.3	1061.4	1176.4	1176.9

Source: Statistics Canada, CANSIM II, table 128-0002 and Catalogue No. 57-003-XPB

Calculate the following based on the above chart.

The above chart encompasses the three types of business markets plus the consumer market.  Fill in the following chart by calculating the share of the energy use market that each of these four segments had in 2001 compared to 1997.

	1997	2001
Energy use – total demand	100.0%	100.0%
Producers
Trade Industries
Governments
Consumers

Complete the following chart by calculating the growth rate of the total energy use market and each of the four segments between 1997 and 1999, and then between 1999 and 2001 (hint: for the 1999 column, use 1997 as the denominator for your growth rate calculation).

	1999	2001
Energy use – total demand
Producers
Trade Industries
Governments
Consumers

Suppose that, after analyzing the information you generated, you decided that to place your initial sales efforts against the producers given (a) the large size of this segment and (b) that you do not expect that growth will continue for the only other sector of interest from a size or growth standpoint, the trade industries. You must now decide which sub-segment to focus on: the industrial or transportation organizations.  Fill in the following chart to clarify their size and growth trends.

	1997	1999	2001
Industrial Subsegment
Share of energy use market
Growth rate
Transportation Subsegment
Share of energy use market
Growth rate

Based on the above chart and your own understanding of the marketing environment for the energy use market over the next decade, would you place your initial sales efforts on the Industrial Subsegment or the Transportation Subsegment?