New brands with a small market shares tend to spend proportionately more for advertising and sales promotion than do those with large market shares.

Question

Quizplus · Accepted Answer

This is because new brands have to establish brand awareness and attract customers, while established brands with large market shares already have a customer base and don't need to spend as much on advertising and sales promotion to maintain their market position.

New Brands with a Small Market Shares Tend to Spend