>> You are CMO at Fitness Shoes Inc. Three decades ago you were first to market with thick-soled athletic shoes that utilize gel or air insoles to absorb shock. The category grew extremely fast, but after many years of profits and market leadership, you are falling behind. Many competitors have entered the thick-soled athletic shoes market and pricing is fierce. Clearly, this category is in the decline phase of the product life cycle. You also see a shift in consumer preferences. Athletes increasingly look for thin-soled shoes that support a more natural running stride and more responsive - almost barefoot - feel. The category of thin-soled shoes represents an opportunity because it's in the early growth stage. As a result of increased competition and the shift in consumer preferences, your company's sales and profits are declining rapidly. At this rate, the company won't last another two years unless you make a big turnaround. Luckily, Fitness Shoes Inc. has a new line of thin-soled athletic shoes in development. The problem is this new line is 12 months from being ready to launch. In the meantime, you must figure out what to do with the thick-soled line. You are meeting with your two marketing managers to pinpoint a strategy, but they disagree on next steps. "The only way to restore profits to our thicksoled line is to go upscale. My suggestion is that we launch an aggressive ad campaign to enhance our brand positioning, add new features and styles to our shoes, and raise prices slightly to increase our contribution margin." "I disagree. We should actually reduce marketing costs at this stage, and minimize our production costs as well. This will allow us to squeeze whatever profits remain in the thick-soled shoe category, while we wait for the thin-soled line to launch."

Which marketing strategy will you choose?

A. Increase ads and pricing

B. Reduce marketing production and expenses