When Gillette introduced its Venus razor for women,it spent several million dollars on advertising and other promotions and successfully boosted its market share.As an advertising consultant,what would you advise that Gillette do in terms of its advertising budget?
A)double its advertising budget in order to double its market share
B)maintain the current advertising budget and continue to focus on brand awareness and market share gains
C)shift the budget dollars from advertising to sales promotion and personal selling due to a change in the product life-cycle stage
D)focus on maintaining market share and spend proportionately less on advertising because additional expenditures would reap diminishing benefits

Question

Quizplus · Accepted Answer

The advertising response function shows that beyond a certain level of spending for advertising and sales promotion,diminishing returns set in.As a mature,successful company,Gillette can choose to spend only as much as needed to maintain market share.

When Gillette Introduced Its Venus Razor for Women,it Spent Several