Business Analysis
A stage of the new product development process where a new product idea surviving the screening stage is subjected to a more sophisticated and detailed analysis. Because new product development costs accelerate sharply thereafter, it is imperative to eliminate inappropriate ideas at this stage. Usually, sales potentials are forecast, cost estimates are made, BREAK-EVEN POINTS are calculated, and in some cases more comprehensive decision procedures such as Bayesian analysis are used.
Reference: http://www.westburnpublishers.com/marketing-dictionary/b/business-analysis-%28new-product-development%29.aspx
My opinion: it estimate likely selling price based upon competition and customer feedback and estimate sales volume based upon size of market and also estimate profitability and breakeven point.
1 comments:
Dont you think that pricing depends on what you are sell.for insatance sale of perfume is never on its cost.
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