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Price And Advertising Effort Over The Product Life Cycle: The B.C.G. And Dorfman-Steiner Approaches

Shekhar Misra
Published 2015 · Economics

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The relative importance of the price and advertising variables in the total marketing mix is expected to vary over the product life cycle. The Boston Consulting Group’s share-growth matrix, as well as the Dorfman-Steiner Theorem can “be useful in providing direction to strategy. The implications of the two approaches are analysed. Although both approaches provide somewhat similar directions, they diverge in terms of their implications for the decline stage of the product life cycle.
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