To be sure, âSunday Night Footballâ remains the most expensive program on TV for advertisers, commanding an average of $637,330 for a 30-second spot. But its ability to gain more from Madison Avenue remains in doubt. Last season, the average price of a 30-second ad in the show fell 0.8% to $623,425.
In other words, selling, marketing, and advertising costs are not part of getting the products ready to sell. Since these costs are not incurred solely for the purpose of manufacturing products, they are not considered product costs. By default, since these costs are not product costs, they are period costs.
Because the next step is expensive and time-consuming product development, critical use of business analysis is essential to eliminate marginal items. Product Development. Product development converts a product idea into a physical form and identifies a basic marketing strategy. It involves product construction, packaging, branding, product positioning, and attitude and usage testing.