Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One criterion management wants to use to evaluate potential new geographic market segments is whether new equipment must be bought to serve each new segment. This is an example of which criterion used to pick new target market segments?
A)expected growth of the market segment
B)Best Food's competitive position in the segment
C)compatibility with Best Food's objectives and resources
D)Best Food's created product groupings

Question

Quizplus · Accepted Answer

The criterion being used to evaluate potential new geographic market segments is compatibility with Best Food's objectives and resources. The need to buy new equipment to serve each new segment is a resource-based consideration. The other options (expected growth of the market segment, Best Food's competitive position in the segment, and Best Food's created product groupings) do not directly relate to the need for new equipment.

Best Foods Company Is Considering Expanding Beyond the Regional Market