Final answer:
The target costing process includes steps such as identifying the target cost, determining the desired profit margin, and developing the product concept. Conducting market research is not a step in this process.
Step-by-step explanation:
The target costing process begins with market mapping and product definition and positioning. The marketing team must complete several steps. One of the steps in this process is identifying the target cost. This involves determining the cost at which the product can be produced and sold in order to meet the desired profit margin and be competitive in the market.
Another step is determining the desired profit margin. This is important because it helps the company set a pricing strategy and ensure that the product will generate the desired level of profitability.
Developing the product concept is also a step in the target costing process. This involves creating and refining ideas for the product, considering factors such as customer needs, market trends, and technological feasibility.
Conducting market research is not a step in the target costing process. Market research is typically done before the target costing process begins and is used to gather information about the target market, customer preferences, and competitors.