The relative importance of advertising, and the budget required for advertising, varies from one state in the product life cycle to another. Advertising is more important in the
A) cancellation
B) decline
C) growth
D) maturity
E) introduction and growth

Question

Quizplus · Accepted Answer

Advertising is more important in the introduction and growth stages of the product life cycle as it helps to create awareness and build brand recognition in the minds of consumers. As the product gains popularity and reaches maturity, other factors such as price, distribution and product improvement become more important. In the decline and cancellation stages, advertising can still be important to maintain awareness and encourage loyal customers, but the budget for advertising may be reduced as the focus shifts towards managing the product's decline.

The Relative Importance of Advertising, and the Budget Required for Advertising