Commercial Applications
In declining stage of PLC, which tool would be more preferred?
- Sales promotion
- Personal selling
- Advertising
- Publicity
Answer
Sales promotion
Reason — During the decline stage, the emphasis is on reducing promotional expenses to minimise loss. Sales promotion tools such as discounts, attractive packaging, and economy packs are preferred since they are short-term and cost-effective measures to revive the market and clear stocks.
Related Questions
In which stage of product life cycle, the company takes decision whether to maintain, harvest or drop the product?
- Introduction
- Growth
- Maturity
- Decline
Which element of the marketing mix is most directly affected by the change illustrated in the image below?
- Product
- Promotion
- Place
- Price
The strategy of introducing new product in existing market is classified as
- Market development
- Market Penetration
- Product development
- Diversification
Statement 1: A product in the growth stage of its life cycle typically has low competition and high prices.
Statement 2: The maturity stage is characterized by intense competition and product differentiation.
Which of the following is correct?
- Only Statement 1 is correct.
- Only Statement 2 is correct.
- Both statements are correct.
- Both statements are incorrect.