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 one, but seems worthwhile if it meets customers' needs better, doesn't reduce quality or increase price, and
A)conforms to all FDA guidelines.
B)adds to the manufacturer's sales revenues and profits.
C)creates economy of scale.
D)decreases the cost of the physical plant.
E)stabilizes the sales revenues and profits.

Question

Quizplus · Accepted Answer

The aim of targeting multiple markets is ultimately to add to the manufacturer's sales revenues and profits. If the cost of manufacturing does not increase and the quality and price remain unchanged, then it makes sense to have multiple products aimed at different markets to increase sales and revenue.

Kellogg's Has Several Cereals Targeted at Different Types of Users