In which of the following stages of product life cycle a company reduces sales promotion to take…
During the Growth stage of the Product Life Cycle (PLC), rapid market acceptance and strong word-of-mouth generate heavy consumer demand. Companies maintain or slightly…
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In which of the following stages of product life cycle a company reduces sales promotion to take advantage of heavy consumer demand?
Answer and explanation
Correct answer B
During the Growth stage of the Product Life Cycle (PLC), rapid market acceptance and strong word-of-mouth generate heavy consumer demand. Companies maintain or slightly increase advertising to build brand conviction but reduce sales promotion expenditures as a percentage of sales because fewer promotional incentives are needed to induce trial.
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UGC NET Commerce