Why do companies with new brands that have a small market share tend to spend proportionately more for advertising and sales promotions compared to those with a large market share for existing products?
A)as a result of experiential marketing research
B)to create the appropriate level of institutional advertising
C)to achieve a certain minimum level of exposure to measurably affect purchase habits
D)to prevent product cannibalization

Question

Quizplus · Accepted Answer

There are two reasons that companies with new brands with small market share tend to spend proportionately more for advertising and sales promotions compared to those with existing products and large market share.The first reason is in response to the advertising response function.The second reason is to create product awareness in the minds of the target audience.

Why Do Companies with New Brands That Have a Small