Which Stage of New Product Development Requires Management to Estimate

question 127

Multiple Choice

Which stage of new product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?

• A) concept testing
• B) marketing strategy development
• C) business analysis
• D) product development
• E) test marketing

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Definitions:

Sales Revenue

The total amount of money generated from sales of goods or services before any costs or expenses are subtracted.

Invested Capital

The total amount of money invested into a company by shareholders and debtors, used to fund the company's operations and growth.

Residual Income

Income that remains after all costs and expenses, including a charge for capital, have been deducted.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit of the investment by its initial cost.