Kellogg's has several cereals targeted at different types of users. This is an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing only one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and .

A. decreases the cost of the physical plant. B. stabilizes competition. C. better serves customers' needs. D. uses the same promotion and packaging for all segments. E. conforms to all FDA guidelines.

C. better serves customer's needs.

Explanation:

Marketing segmentation refers to division or segregation of markets on the basis of different traits and basis and employing different marketing strategies to cater to different segments.

Such segmentation may be done on the basis of geographical i.e based upon location, demographic i.e as per population, age composition, behavioral i.e based upon consumer behavior and trends and psychographic i.e based upon psychology and perceptions of the consumers.

In the given case, Kellogg's serves cereals targeted at different users and directed at different segments. This is multiple products satisfying the needs of multiple markets.

Offering multiple products and serving multiple markets would be costly, but if it leads to increase in the revenue without leading to a compromise in the quality of products offered or leading to price increase and above all, if it serves the needs of the customers in a better way, the strategy is worthwhile.

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