THE CONTRIBUTION OF MARKETING RESEARCH FOR NEW PRODUCT DEVELOPMENT (A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC)

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Product Code: 00003340

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ABSTRACT

The research work focused on "the contribution of marketing research for new product development". Discussing fully marketing research and new product development, its definition, importance, different types of marketing research and stages of new product development.

 

The research topic is concerned with the persistent increase of new product failure which faced many organizations of business and left many business in a serious financial loss. The relationship between marketing research and new product development. The effect of marketing research on new product development. The influence of marketing research on brand name of a new product.

 

In sorting the sample area, 60 questionnaire was administered by the staff of Nigerian Bottling company Plc using random sampling method. Data collection method were primary and secondary and was analysed using Spearman Ranking to drive home points and findings. Reliability and validity was tested through the distribution of questionnaires to the staff of Nigerian Bottling Company Plc. for conclusion, the respondents claimed that there is no relationship between marketing research and new product development.







TABLE OF CONTENTS


Title page                                                                                                       i

Certificate                                                                                                      ii

Dedication                                                                                                     iii

Acknowledgement                                                                                        iv

Abstract                                                                                                         v   

Table of contents                                                                                         vi

 

CHAPTER ONE: INTRODUCTION

1.1       An Overview of Marketing                                                               1                                                                                                1.2       Background of the Study                                                                             2               

1.3       Statement of the Problems                                                             2

1.4       Objectives of the Study                                                                    3

1.5       Research Questions                                                                          3

1.6       Research Hypothesis                                                                        3

1.7       Scope and Limitation of the Study                                                 4

1.8       Significance of the Study                                                                  5

1.9       Definition of Terms                                                                           5

      

CHAPTER TWO: LITERATURE REVIEW

2.1       Introduction                                                                                      8

2.2       Historical Background                                                                      8

2.3       Models and Theories Relevant to the Study                                 10

2.4       Current Literature Based on such of the Relevant Variables of

the Model/Theory.                                                                           25

2.5       Summary of the Chapter                                                                 34

      

CHAPTER THREE: RESEARCH METHODOLOGY      

3.1       Introduction                                                                                      35

3.2       Restatement of the Research Questions and Hypotheses           35

3.3       Research Design                                                                               36

3.4       Description/Characteristics of the Study Population                   37

3.5       Sampling Design and Procedure                                                     37

3.6       Data Collection Methods                                                                 37

3.7       Data Analysis Methods                                                                    38

3.8       Scoring and Administration of the Research Instruments           39

 3.9      Reliability and Validity of the Data/Study Instruments               40

3.10    Scope of the Study                                                                            40

3.11    Limitation of Methodology                                                             40

 

CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION

4.1      Introduction                                                                                       41

4.2       Analysis of Respondents Bio-Data                                                  41

4.3       Analysis of Research Questions                                                      44

4.4       Analysis of Research Hypothesis                                                    54

4.5       Test of Hypotheses                                                                           55       

4.6       Discussion of findings                                                                       59

           

 

CHAPTER FIVE: SUWMARY CONCLUSION(S) AND RECOMMENDATION(S)

5.1       Summary of Findings                                                                       60

5.2       Conclusion(s) Drawn From the Findings                                        62

5.3       Recommendations Based on the Conclusion(s)                            62

5.4       Limitation and Suggestions for Further Studies                           63

Bibliography                                                                                      64

Appendix I – Covering Letter                                                           67

Appendix II – Questionnaire                                                            68

 

 

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

 

1.1      AN OVERVIEW OF MARKETING

Marketing as defined by the chartered institute of marketing United Kingdom is the management process for identifying, anticipating and satisfying customer requirements profitably. Marketing focuses on customers needs, identifies this needs through marketing research and goes ahead to produce goods and services that satisfies the needs of the consumers more effectively and efficiently than that of the competitors.

Marketing research according to Kottler (2006), can be defined as the systematic design, collection, analysis and reporting of data and findings relevant to the specific marketing situation facing an organisation. It requires the business information to determine the right techniques to use in order to carryout the activities of the organisation and achieve its objectives. Marketing research includes product, price, place and promotion research and provides managers with information that would assist them to take decision relating to marketing mix variables.

 

1.2      BACKGROUND TO THE STUDY

New product development, though considered to be costly and risky must be undertaken by every firm, so that the firm can maintain or improve its position in the market place.

New product development can be actualized in the following ways;

a.     Acquisition: The organization can buy other firms or buy a  license or franchise or buy patents

b.     Internal new product development: It can be achieved in two ways i.e. through the development of new product by an in-house research and development (R & D) team, or use of outside agencies to develop products.

Because new product development goes through a continuous process, it is crucial that companies stand back after each step to evaluate whether the new product is worth investing on.

 

1.3      STATEMENT OF THE PROBLEM

This study is concerned with the persistent increase of new product failure, which has forced many organizations out of business and left many business in a serious financial loss, while so many business/organization have lost competitive advantage due to inability to fully satisfy the growing customers expectations.

1.4      OBJECTIVE OF THE STUDY

The purpose of this research work is to determine whether marketing research can be used to:

·        Provide customer satisfaction

·        Design optimum package for a new product

·        Prevent product failure

·        Increase market share and profit turnover.

 

1.5      RESEARCH QUESTIONS

·        Does marketing research have any effect on new product development?

·        Does lack of marketing research affect new product acceptance in the market?

·        Is there any relationship between marketing research and new product development?

·        Does marketing research influence the brand name of a new product?

 

1.6      RESEARCH HYPOTHESES

HYPOTHESIS ONE

Ho:     Marketing research does not have any effect on new product development

Hi:       Marketing research has effect on new product development

HYPOTHESIS TWO

Ho:     There is no relationship between marketing research and new  product development

Hi:       There is relationship between marketing research and new product development

HYPOTHESIS THREE

Ho:     Marketing research does not influence the brand name of a new product

Hi:       Marketing research has influence on the brand name of a new product.

 

1.7      SCOPE AND LIMITATIONS OF THE STUDY

This study deals with the contribution of marketing research for new product development using Nigerian Bottling Company Plc. as a case study.

The study will focus on the following;

 i.         Marketing research

ii.         Stages of new product development.

There is nothing in life that has its advantages that does not have its limitations and restraining factors. The major limitations to this work is time, fund and people can be bias, gathering of information requires movement from one place to another, requires availability of funds.

1.8      SIGNIFICANCE OF THE STUDY

The significance of this study cuts across individual, organisation and the government.

To the individual, it helps avoid sub-standard products in the market, while to the organisation, they have the ability to cope with environmental changes and challenges.

To the government, it helps reduce the burden of monitoring sub-standard products.

 

1.9      DEFINITION OF TERMS

1. Product:               This is anything that is offered for acquisition, use and disposal and that satisfies the needs of the target market. The term product is broad and covers both tangible goods and intangible goods. Tangible goods have physical presence that can be seen, felt, smelt and touched e.g. mobile handsets, toothpaste, textbooks, television sets, while intangible goods include hair cut, financial service, accounting service and tourism.

2. Consumer:          This is an individual or organizational unit that uses or consumes a product.

3. Customer:           This is an individual or organisation that actually makes purchase decision or a person buying goods or services for a purpose etc.

4. Innovation:         This is a new product that has recently been offered to the market. It is any idea, practice or product perceived to be new by the relevant individual or group.

5. Innovators:         These are set of consumers that are the first to adopt or purchase an innovation. They represent approximately 2.5% of all the buyers who will eventually adopt the new product. They are active information seekers

6. Market:               Consists of individual and organisation who are interested and willing to buy a product and has the resources to engage in such transaction. A market may be defined as a place where buyers or sellers meet, goods and services are offered for sale and transfer of ownership occur.

7.Marketing:          Stanton W. J. (1981), defines marketing as "A total  system of business activities designed to plan price, promote and distribute want satisfying goods and services to a present and potential customers, MIN London defines marketing as "The management process responsible for identifying, anticipating and satisfying customers requirement profitably".

8.Research:             Research means to search for knowledge, information etc. Marketing research concerns investigation of the size, composition and characteristics of the market as well as distribution channels and market shares. It seeks to find out how many people buys, what they buy, why and where they buy

9.Strategy:              Indicates specific target market and the types of competitive advantage that are to be developed and exploited

10.Target Market:            This is the segment of the market that the company aims to serve with its marketing programmes and efforts.

11.Need:                  Is e state of felt depreciation. A lack that is necessary for our physical and psychological well being. It includes psychological, safety, social, ego and actualization needs.

12.Peak Period:     This is the period at which a product has reached its highest level, it is also known as the maturity stage.

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