You want to develop a new product for your business.

With the proper use of theory

discuss product lifecycle stages (PLC graph) and how you develop 4P’s of that product
in each stage.

Actually for new products development I have to follow the product life cycle.Which start
with introduction, growth, maturity and decline.

Introduction Stage:

 Product:In this stage I give the basic facility of my product to my customer.

Price: Here I have to set cos based pricing strategy for my customer

Promotion: Here I have invested a large amount of my money for promotion to induce my
product in the market.

Place: I have to build a selective distribution for my customer.

Growth Stage:

Product: I have to extend my product here.

Price: I have to set a market penetration strategy here.

Promotion:I have to reduce expenditure here to take advantage of the market.

Place: I have to build an intensive distribution here.

Maturity Stage:

Product:I have to diversify my brand and model here for my product.

Price:I have to set a price here according to my market.

Promotion:Here I have to set some unique strategy because without unique and beneficial
strategy customers cannot leave their previous company and come to my company.

Place: Here I have to build some stress brand differences and benefits.

Decline Stage:

Product: Here I have to phase out of my weak item products.

Price:I have to cut my product price here.

Place: Again here I have to go for a selective strategy for my product.

Promotion: And here I have also reduced my product. promotion price

Explain the methods for setting promotional budget. Which method you will use for
your business and why?

I have to use 4 methods for promotional budget which are:

Affordable Method: Here I have to set budget by thinking my customer affordability

Percentage of sale method: The customer who huge produt they get discount here.

Competitive parity method:Here I have to set the price to match the competitors outlays.

Objective and task method:Here I have to set promotional budget on some specific object

For my product I have an affordable method.Because using this method I can easily catch the
attraction of buyers for my product.