What factors should be considered in the market analysis phase?

In the market analysis phase, it is crucial to consider the costs of materials and customer needs because these factors directly impact both the feasibility and the potential success of a product in the marketplace. Understanding customer needs helps to identify market demands and shapes the development of a product that meets those demands effectively. This ensures that the product will not only be relevant but also appealing to the target audience.

Additionally, the costs of materials play a significant role in determining the overall production expenses and pricing strategy. If the cost of materials is too high, it can lead to higher prices for consumers, potentially making the product less competitive. By analyzing these factors, businesses can align their offerings with market expectations and develop a cost-effective strategy that maximizes profitability while satisfying customer requirements. This thorough understanding is essential for making informed decisions throughout the product development process.