E-Marketing Professionals

Business Analysis 

Business analysis for the remaining product concepts is much more detailed than product screening. These are some of the factors considered in this stage of planning :

Demand projections : Price/sales relationship; short- and long-run sales potential: speed of sales growth: seasonally: rate of repurchases: channel intensity

Cost projections : Total and per unit costs; use of existing facilities and resources; startup vs. continuing costs: estimates of future raw materials and other costs; economies of scale; channel needs; break-even point

Competition :Short-run and long-run market shares of company and competitors; strengths and weaknesses of competitors; potential competitors; likely competitive strategies in response to new product by firm

Required investment : Product planning (engineering, patent search, product development, testing): promotion: production; distribution

Profitability: Time to recoup initial costs; short- and long-run total and per-unit profits; control over price; return on investment (ROI); risk

Because the next step is expensive and time-consuming product development, critical use of business analysis is essential to eliminate marginal items.