A cosmetics company had launched a product that earned good revenues for the company.A recent market analysis shows intense competition for market share from a large number of competitors.The company decides to spend more on marketing the product to help it to retain its market share.In the context of the product life cycle, the product is currently in the:
A)maturity stage.
B)growth stage.
C)initiation stage.
D)introduction stage.
E)decline stage.

Question

Quizplus · Accepted Answer

The fact that the product has already earned good revenues for the company suggests that it has gone past the introduction stage. The recent market analysis indicating intense competition indicates that the product is facing some saturation and is likely in the maturity stage. The decision to spend more on marketing is also a typical strategy employed in the maturity stage to retain market share.

A Cosmetics Company Had Launched a Product That Earned Good