Market analysis scope—identify what is not typically included Which of the following elements is not ordinarily part of a market analysis for a chemical product?

Difficulty: Easy

Correct Answer: Economics

Explanation:


Introduction / Context:
A market analysis focuses on the external commercial environment for a product: customers, competitors, channels, and unmet needs. It supports demand forecasting and go-to-market strategy. Distinguishing it from the broader techno-economic feasibility avoids duplicated work across project phases.


Given Data / Assumptions:

  • Market analysis addresses demand, segmentation, competition, pricing bands, and distribution.
  • Detailed plant “economics” (capex/opex, NPV, IRR) are part of financial or economic analysis, not strictly “market” scope.
  • High-level price dynamics can appear in market analysis, but deep financial modeling is separate.


Concept / Approach:
Separate external market study from internal economic evaluation. Competition, distribution, and opportunity mapping are core market topics. Comprehensive economics—cash flows, depreciation, and taxes—belong to the financial appraisal and project evaluation workstream.


Step-by-Step Solution:

List typical market analysis items: competitors, channels, customers, pricing surveys, opportunities/threats.Contrast with economic evaluation: capital cost, operating cost, profitability metrics.Identify the choice that falls outside core market scope: “Economics”.


Verification / Alternative check:
Most project manuals separate chapters into Market Study, Technical Study, and Economic/Financial Evaluation, underscoring different deliverables and skillsets.


Why Other Options Are Wrong:

  • Competition: central to market analysis.
  • Product distribution: a key GTM element.
  • Opportunities: part of SWOT and unmet-needs assessment.


Common Pitfalls:
Over-merging market and economic analyses, which can obscure assumptions and cause circular logic in demand vs. price forecasts.


Final Answer:
Economics

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