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 additional real estate must be purchased or leased to serve new segments. This is an example of which criterion used to select target market segments?
A)Best Foods' competitive position in the segment
B)Best Foods' product groupings
C)expected growth of the market segment
D)size of the market segment
E)cost of reaching the segment

Question

Quizplus · Accepted Answer

The criterion being used to evaluate potential new geographic market segments is the cost of reaching the segment. This includes the cost of real estate, which is a major expense for expanding into new markets. The other criteria listed (competitive position in the segment, product groupings, expected growth, and size of the market) are also important, but they are not specifically related to the cost of reaching the new market.

Best Foods Company Is Considering Expanding Beyond the Regional Market