Which stage of the product life cycle usually involves the highest marketing expenses?

The introduction stage of the product life cycle is characterized by high marketing expenses because it involves creating awareness and stimulating interest for a newly launched product. During this stage, the company invests significantly in marketing efforts to educate potential customers about the product's features and benefits, establish a market presence, and differentiate it from competitors. Costs are associated with promotional activities, advertising campaigns, public relations, and sometimes financial incentives to encourage trial and adoption among consumers.

This heavy investment in marketing is critical because the product is new to the market, and sales are typically low at this point, which necessitates spending to build a customer base and generate demand. As the product gains traction and moves into the growth stage, marketing expenses per unit typically decrease because the brand begins to gain recognition and customer loyalty, allowing for more streamlined promotional efforts.