Question

In declining markets: 1. the only effect advertising will have on primary demand is to slow the rate of decline.2. advertisers are largely indifferent to conquest sales. 3. advertising has no influence over selective demand. 4. advertising stimulates demand for the entire product class. 5. the only effect advertising will have on selective demand is to slow the rate of decline.

Answer 1

Answer: 1. The only effect advertising will have on primary demand is to slow the rate of decline.

Explanation: Declining markets are those that have gone from maturity - where sales stay flat or may even climb occasionally - to multiple periods where there are decreasing sales. This drop in sales is the first and most obvious sign of a declining market and lower sales quickly lead to other attributes.

Common characteristics of the decline stage include a decrease in sales, an increasing difficulty to make a profit, and a decrease in advertising.