Question

1. Is it typically inexpensive to brand a new product or service? Explain your answer in at least 3 to 4 sentences.

Answer 1

When the product is new then customers are not aware of the product and services. To make the customers aware of the new products or services the companies have to invest a lot in advertisement, promotions and other activities. These all factors need capital. So the statement is wrong. Actually when the product is launched then this is into its introduction phase. There are four stages of the product life cycle. In the introduction phase of the product life cycle, the products are new into the market company need to tell the customers about the product and services that we are offering something new you can try it out and for those activities, the cost is needed. Hence branding new product and services need capital.