Question

During the introductory stage of the product life cycle__________.a) The company yields very high profits.b) There is significant competition creating barriers to entry.c) The company is trying to recoup its marketing expenditures, such as promotions, research and development.d) Brand awareness is high due to product novelty.e) Brand loyalty is established.

Answer 1

Answer:

Letter c is correct. The company is trying to recoup its marketing expenditures, such as promotions, research and development.

Explanation:

The introductory phase of the product cycle is characterized by the insertion of the final product in the market.

In this phase the company focuses its efforts on the implementation of a marketing strategy such as promotions and advertisements that help reach the target audience. As it is a new product in the market, it is not common to have many competitors, but in return the profitability is also low, being common at this stage even financial losses.

Therefore, it is ideal to focus on customer-driven marketing so that the company begins to make profits.