As the ear examination kit is making a loss, the company is spending money on advertising to let customers know the product is still in the introductory stage of product life cycle.
The phrase "product life cycle" describes the time frame from when a product is first made available to buyers until it is taken off the market. Professionals in management and marketing employ this idea.
The product life cycle's introduction stage is the first one. The product is still fresh on the market, revenues are sluggish, and in order to increase sales, the corporation must spend a lot of money on advertising to make the product appealing to consumers.
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