Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is generally emphasized during the product introduction phase?

1. Cost reduction strategies

2. High investment in advertising and consumer awareness

3. Market research and analysis

4. Distribution channel optimization

The correct answer is: High investment in advertising and consumer awareness

During the product introduction phase, there is a strong emphasis on high investment in advertising and consumer awareness. This phase is crucial for creating awareness about the new product among potential customers, as it often involves educating them on the product's features, benefits, and how it differs from existing offerings in the market. The primary goal is to generate interest and drive initial sales, which typically requires substantial marketing efforts including advertising campaigns, promotional events, and outreach initiatives. Additionally, this phase may involve building brand recognition and establishing a foothold in the market. Consumers need to be made aware of the product's existence and its value proposition before they can make a purchasing decision. While other aspects, such as cost reduction strategies, market research, and distribution optimization, are also important in the broader product lifecycle, the introduction phase distinctly prioritizes marketing activities to ensure that the product gains visibility and popularity.