During which phase of the product life cycle are advertising costs typically highest?

During the introduction phase of the product life cycle, advertising costs are typically highest. This phase is crucial for establishing market presence and spreading awareness about the new product. Companies invest significantly in advertising to inform potential customers about the product's features, benefits, and availability, aiming to generate initial interest and stimulate demand.

High advertising expenditures during this stage are used to create a strong brand image and encourage trial among consumers. The company seeks to capture attention and differentiate the product from competitors, making a substantial marketing investment essential. This contrasts with later stages like growth, maturity, and decline, where advertising expenses may decrease as the product gains traction and brand recognition, or as companies focus on maintaining market share rather than building awareness from scratch.