Final answer:
Companies invest the most in marketing and promotion during the introduction stage of the product life cycle to generate awareness and demand.
Step-by-step explanation:
In the product life cycle, a company typically invests the most in marketing and promotion during the introduction stage. This is when the product is newly launched, and awareness among potential customers is crucial for its success. The goal is to create demand and encourage the adoption of the product.
Aggressive marketing is also employed to differentiate the product from competitors and to establish a market presence. As the product moves into the growth stage, the marketing costs may remain high to sustain the growing demand and fight off competition. However, usually, the peak of the marketing investment is during the initial introduction phase.