Refer to the Scenario Below to Answer the Following Questions

Multiple Choice

Refer to the scenario below to answer the following questions.
Herb Marks was making wooden pens and pencils, which had unique engravings, as a hobby until Mel Yoder recognized Herb's talent. Mel immediately ordered 250 pens and pencils of various styles to be displayed in his shop's showcase. Within three months, the wooden pencils were a hit with all school goers! Herb Marks had never thought of marketing his talent, but Mel's enthusiasm and the recent sales were enough to change his mind.
With limited resources, Herb contacted three additional specialty shops within 100 miles which were situated near schools. He explained his manufacturing processes and engraving options to each. All three shop owners placed a trial order. Within two months, just prior to the holiday season, each shop owner placed an additional order. Herb was ecstatic!
"I figured business would slow down after that," Herb stated, "but in February I was contacted by Elmore Distributors. At that point, I had to make a huge decision about how far I wanted to go with this business."
Elmore Distributors provides products for school fundraisers in a seven-state area. Herb was offered a two-year contract and immediate inclusion in Elmore's promotional flyer. Herb Marks accepted the offer and, along with it, the responsibility to produce thousands of wooden pens and pencils.
"I had to get a grip on the magnitude of this project," Herb added.
Herb decided to place his major focus on the large contract with Elmore. However, to avoid placing his total emphasis with one customer, Herb continued nurturing his four previously established accounts without targeting any additional customers.
"At this point, I had set up an assembly line in a rented building," Herb explained. "I had to hire three full-time employees to work the line while I managed the customer orders and purchased materials." Herb paused. "But I can't take the Elmore project for granted. It might not always be there. I'll have to have a good alternate plan if that day comes."
-In the scenario, Herb has segmented his market based on ________.

A) geography
B) benefits sought
C) occasion
D) degree of loyalty
E) demographics