During the market introduction stage of the product life cycle:
A) considerable money is spent on promotion while place development is left until later stages.
B) products usually show large profits if marketers have successfully carved out new markets.
C) most potential customers are quite anxious to try out the new-product concept.
D) funds are being invested in marketing with the expectation of future profits.
E) product and promotion are more important than place and price.

Question

Quizplus · Accepted Answer

During the market introduction stage, significant funds are being invested in marketing with the expectation of future profits. Establishing a market for a new product is costly, and profits may not be realized for some time. Therefore, companies focus on building brand awareness and generating demand through various promotional activities. Place development and pricing strategies may be addressed later in the product life cycle when the product gains wider acceptance and adoption. Potential customers may not be immediately willing to try out a new-product concept as they may have concerns around quality, pricing, and potential risks associated with the product's use.

During the Market Introduction Stage of the Product Life Cycle