Question

Promotional expenditures at the introduction stage of the product life cycle are best spent on

A) to maintain brand loyalty or static demand.
B) product samples to create secondary demand.
C) personal endorsements to generate word-of-mouth demand.
E)advertising to stimulate primary demand.
F)contests and sweepstakes to stimulate selective demand.

Answer 1

E. Advertising to stimulate primary demand

Step-by-step explanation:

Promotional expenditures refers to the spending, expenses or cost incurred by an organization or company while marketing their products or services to consumers. It involves activities like free sample and other promotional gimmicks aimed at improving sales of products or services been rendered. At the beginning stage of a new product, the best form of promotional expenses should go to advertising and creating awareness of the product in order to increase demand.

Answer 2

E. Advertising to stimulate primary demand.

Step-by-step explanation:

Promotional expenditure refers to the total cost incurred by a firm during the course of marketing its product.

Product life cycle is the process a product pass through from conception to the declining stage.

There are four stages of product life cycle;

• Introduction stage

• Growth stage

• Maturity stage

• Declining stage

Promotional expenditures at the introduction stage of the product life cycle are best spent on advertising to stimulate primary demand.

Advertising is used to create awareness of a product to Customers. It helps to increase customers demand for the product. More people become aware of product through advertising and individuals tend to patronise more the sellers that advertise their products.

Advertisement helps to cover a wide range of customers.