A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources.This approach is called
A)harvesting.
B)investing.
C)realigning.
D)divesting.
E)mixing.

Question

Quizplus · Accepted Answer

Harvesting is the process of gradually reducing marketing expenditures and reallocating resources to more profitable products or areas of the business. This is a common strategy for products in the decline stage of the product life cycle, as it allows the firm to maximize profits while minimizing costs. By slowly reducing marketing expenses and shifting resources to other areas of the business, the firm can capture as much value as possible from the product before phasing it out completely.

A Firm with a Product in the Decline Stage of the Product