When advertising gets beyond a certain ad spending level and diminishing returns set in this is called _____________.

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Another problem with advertising is that beyond a certain ad spending level, diminishing returns tend to set in. That is, market share stops growing-or even begins to decline-despite continued spending. This effect is known as the advertising response function and leads marketing managers to rely more heavily on advertising early in the product life cycle (PLC), as well as to focus on it during target customers' initial stages of the AIDA model.

When Advertising Gets Beyond a Certain Ad Spending Level and Diminishing