Large promotion expenditures are needed in the growth stage of the product life cycle in order to build brand preference for a new product.

Question

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During the growth stage of the product life cycle, a new product requires increased promotion expenditures to build brand preference among customers. This helps to create awareness and generate interest in the product, leading to increased sales and market share. As the product moves into the maturity stage, promotional expenditures may decrease as the brand becomes more established and the focus shifts to maintaining market share and profitability.

Large Promotion Expenditures Are Needed in the Growth Stage of the Product