Question

When a product reaches the decline stage of the product life cycle, a firm has two choices. One choice involves product deletion, where a product is dropped from a firm's product line. Another less drastic choice is to retain the product in the product line, but to reduce marketing costs. When this option called __________ is selected, advertising expenditures for the product are reduced and salespeople do not devote their efforts to selling the product.

a. decline maintenance
b. customer need maintenance
c. divestment
d. maturity re-development
e. harvesting

Answer 1

Answer: harvesting

         

Explanation: A harvest strategy is a business plan for either canceling or reducing a product's advertising expenditure. The management decides that improving revenue would expense too much.

In other words, when contemplating likely future sales from the drug, they could not justify the expense.When a commodity has arrived at the end of its life cycle, marketing managers pick a good harvesting approach. They target at generating the maximum return from whatever sales scope is left.

Thus, from the above we can conclude that the correct option is E.