Will promotion-expenditure strategy for a product in the growth stage of the product life cycle be different from that for a product in the maturity stage? Discuss.
What will be an ideal response?
The stage of the product life cycle does affect the perspective of promotion-expenditure strategy. During the growth stage, for consumer goods the major emphasis is placed on advertising, which is designed to stimulate selective demand. As for industrial goods, while personal selling continues to be important, an advertising program is initiated, too. In the maturity stage, competition is intense, and advertising along with sales promotion measures are used for the promotion of consumer goods. Industrial goods during maturity call for intensive personal selling. The emphasis on different types of promotion during growth and maturity stages requires different expenditure perspectives.
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