In the maturity stage of the PLC, consumer goods companies find that they spend __________.
A) A small percentage of their budget on mature products preferring to spend on new products
B) A large percentage of their budget on marketing communications because of the need to support the brand and reinforce key product differentiators
C) A proportionate percentage of the their budget on marketing communications in order to maintain their market share and not let new competitors enter the market with ease
D) A lower percentage of their budget on marketing communications in order to milk the product for profitability.
E) None of the above

Question

Quizplus · Accepted Answer

In the maturity stage of the PLC, consumer goods companies find that they spend a large percentage of their budget on marketing communications because of the need to support the brand and reinforce key product differentiators. This is because the competition is high and there is a need to maintain market share and brand positioning. It is not advisable to spend a small percentage of the budget on mature products or lower the marketing communications budget to milk the product for profitability as it can lead to losing market share to new competitors who may enter the market with ease. A proportionate percentage of the budget should be spent on marketing communications to maintain market share and not let new competitors enter the market with ease.

In the Maturity Stage of the PLC, Consumer Goods Companies