Asked by Alpha Drone on Jun 22, 2024
Verified
Firms using the __________ approach during the decline stage of the product life cycle will gradually reduce marketing expenditures and use a less resource-intensive marketing mix.
A) divesting
B) harvesting
C) repositioning
D) life extending
E) balanced
Harvesting Approach
A business strategy focusing on extracting maximum profits from a product, market, or investment with minimal reinvestment, often in the decline stage of its lifecycle.
Marketing Expenditures
The total amount of money a company spends on creating and executing its marketing strategies.
Resource-intensive
Describing activities, processes, or industries that require a large amount of resources (such as capital, time, or energy) to produce goods or services.
- Identify the marketing approaches during the decline stage of the product life cycle.
Verified Answer
HB
Hamid BakhshiJun 22, 2024
Final Answer :
B
Explanation :
The harvesting approach involves gradually reducing marketing expenditures and utilizing a less resource-intensive marketing mix during the decline stage of a product's life cycle, aiming to maintain or gently decrease the product's market presence while maximizing cash flow.
Learning Objectives
- Identify the marketing approaches during the decline stage of the product life cycle.