Marketing costs are high in the introductory stage of the product life cycle because:

1 answer:

Pie2 years ago

4 0

Marketing costs are high in the introductory stage of the product life cycle because
(b) HIGH DEALER MARGINS ARE OFTEN NEEDED TO MAINTAIN ADEQUATE DISTRIBUTION.

Product life cycle consists of 4 stages:
1. Introductory stage
2. Growth stage
3. Maturity stage
4. Decline stage

Introductory stage is a stage when the product is actually introduced in the market. It is a costlier stage than other stages. and the additional costs such as branding, promotional costs are included in this stage.

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