Which statement is NOT TRUE for products in the maturity stage? Profits starts declining. Companies always increase their promotion expenditure. New competitive forces emerge, and weaker competitors withdraw. The rate of sales growth will slow in earliest phase.
Question
Which statement is NOT TRUE for products in the maturity stage? Profits starts declining. Companies always increase their promotion expenditure. New competitive forces emerge, and weaker competitors withdraw. The rate of sales growth will slow in earliest phase.
Solution
The statement that is NOT TRUE for products in the maturity stage is "Companies always increase their promotion expenditure." While it's common for companies to increase promotional efforts during the maturity stage to maintain market share, it's not a rule that they always do so. Some companies might choose to reduce promotional expenditure to maximize profits, especially if the product has a strong market presence and customer loyalty.
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