Question

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new product development process.

Answer 1

Answer:

Business Analysis

Explanation:

The development of a new product is comprised of eight stages, Business Analysis is the 4th stage. Other stages include Idea generation, idea screening, concept testing, product development, test marketing, commercialization and the review of market performances.

Business Analysis is the stage involved in the evaluation or assessment of projected or expected costs, sales and profits from the new product being development. This is called the attractiveness of the business. A product that is unable to generate enough sales and profit to cover it costs and boost the overall income of an organisation cannot be said to be attractive.

To find out the commercial profitability of the company, some of the following questions are asked in the business analysis stage:

• What is the potential cost of the new product?
• What is the total sales expected to be?
• Will the new product be commericially profitable?
• what will our expected advertising and promotion expenses be?
• What kind of competition should we expect with the new product?
• What will the demand for the product be according to different seasons?