Question

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 select target market segments?

A. Best Food's competitive position in the segment
B. Best Food's created product groupings
C. expected growth of the market segment
D. size of the market segment
E. compatibility with Best Food's objectives and resources

Answer 1

Answer:

A. Best Food's competitive position in the segment

Explanation:

Best Food's competitive position in the segment is an example of the criterion used to select target market segments.

It would be used by the management to evaluate and analyze potential new geographic market segments in order to know whether new equipment must be bought to serve each new segment.

Answer 2

Answer:

E. Compatibility with Best Food's objectives and resources

Explanation:

Expansion is necessary for any business because it increases the profit of the company, however, expansion must comply with the company's objective and available resources.

For Best Food's Company to select target market segments, they must establish that the target market segments to be explored comply with Best Food's objectives and resources. This is to ensure that Best Foods is established in these market segments without any violations of company objectives and policies and also that resources are available to completely establish the company on target market segments.