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

Typically, as a product matures, the amount spent on advertising should decrease as the costs of acquisition for each unit sold will likely increase. Additionally, with Gillette already having a strong brand awareness and market share, there may be little room for substantial gains through increased advertising spend. Therefore, it would be best for Gillette to focus on maintaining its current market position and adjust its advertising budget accordingly.

When Gillette Introduced Its Venus Razor for Women, It Spent