During the MARKET INTRODUCTION stage of the product life cycle:
A) large profits are typical--until competition arrives.
B) Price and Promotion are more important than Place and Product.
C) much money is spent on Promotion, while spending on Place is left until later.
D) money is invested--in the hope of FUTURE profits.
E) most customers will try really new products.

Question

Quizplus · Accepted Answer

During the market introduction stage, the product is new in the market and requires heavy investments in promotion, product development, and other marketing activities. The company spends a lot of money to create awareness about the product among its target customers. However, due to the lack of brand recognition, sales are typically low and profits are usually negative or low. Therefore, during this stage, the company invests money in the hope of future profits once the product gains acceptance in the market.

During the MARKET INTRODUCTION Stage of the Product Life Cycle