Question

Best Foods Co. 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?

Answer 1

The answer is: the cost of reaching the market

Step-by-step explanation:

The five basic criteria that you should follow to select a viable market segment are:

1. size
2. expected growth
3. competitive position
4. cost to reach: refers to the costs associated with reaching that market. Is that market accessible for our company? For example, lots of companies would like to sell their products in the Ball Harbor Mall (highest $ per feet² selling ratio in the country) but the costs of doing so are very expensive and not many companies can afford to do so.
5. compatibility