During new product development, the main purpose of the business analysis may perform a number of functions. Which of the following BEST describes the purpose?
A) to estimate the resources that will be needed to support the new product in its first few years
B) to evaluate the extent to which the new product proposal fits with the corporate mission
C) to evaluate the financial viability of the new product proposal
D) to outline the marketing strategies and tactics that will be used to commercialise the product
E) to evaluate the probable competitor responses to any new product launch

Question

Quizplus · Accepted Answer

The main purpose of the business analysis in new product development is to evaluate the financial viability of the new product proposal. This involves analyzing the costs and potential revenue of the product, estimating the return on investment, and identifying any potential risks or challenges. While the other functions listed (estimating resources, evaluating fit with corporate mission, outlining marketing strategies, and evaluating competitor responses) are important considerations during new product development, they are not the primary purpose of business analysis.

During New Product Development, the Main Purpose of the Business