During the market introduction stage of the product life cycle, the basic objective of promotion is usually to:
A) spend more money on promotion than competitors.
B) remind customers about the firm and its products.
C) inform potential customers of the product.
D) stimulate selective demand.
E) persuade the early majority to buy the product.

Question

Quizplus · Accepted Answer

During the market introduction stage, the main objective of promotion is to inform potential customers of the product, its features, and benefits. This is because most customers are not aware of the product's existence since it has just been launched in the market. Therefore, the company needs to create awareness about the product to attract early adopters and generate sales. Options A, B, D, and E are not correct because spending more money than competitors, reminding customers about the firm, stimulating selective demand, and persuading the early majority are objectives that are more relevant in later stages of the product life cycle.

During the Market Introduction Stage of the Product Life Cycle