1. The Economic Environment Identify economic factors (personal income level, inflation rate, taxes) that might influence pricing decisions in this country. (In many countries, people may not be able to afford products that are considered minor purchases in industrialized nations.) 2. Cost Analysis Estimate production costs and other business expenses that would be encountered when offering this product or service. (The total cost of providing an item must include both direct production costs as well as administrative and overhead expenses.) 3. Demand Analysis Analyze the potential demand for this product (or service) based on the current and expected market. (As a product gains in popularity or a country's economy improves, demand for various items is likely to expand.) 4. Competitor Analysis Compare your pricing plans with those of any competitors that may be providing identical or similar products or services