The Relevance Of New Product Development On Attaining Marketing Objective Of Table Producers
ABSTRACT
This study was conducted to determine the relevant of new product development in attaining marketing objective of table water manufacturers in Anambra State . However, to achieve the goal of the study, the closed ended r4esearch was used to study (twenty one) table water manufacturers, where questionnaire were administered to 18 respondents in order to obtain first hand information after a critical analysis of the data collected and the test of the hypothesis using the chi-square statistical tool. The following were established, that there is significant relationship between new product development and marketing objective of bottled water manufactuturers. Marketing testing enhances the relationship between new product development and marketing performance of bottled water manufacturer.
The table water manufacturers should not rely on external agency, they should employ qualified and expert who are capable of elicity the required information to work in the development unit so that misleading information will not be send to the management for decision making.
They should carry out persuasive advertising in order to change their customer behaviour towards their product.
Since the new product development needs expertise, they should establish functional marketing intelligent system so as to reduce the burden f frequent new product development on enevironmental and market study.
CHAPTER ONE
1.0. INTRODUCTION
New product development is not only an essential ingredient in effective marketing but also indispensable is very persuasive. Although in practice it is mostly applied in production of new and better methods in an enterprise operations (process technology) aimed at improving efficiency and effectiveness.
The society we found ourselves is in a state of flux and therefore the only thing that is stable is change. The needs nad wants of the inhabitants of the society are changing by the day. Sequel to this the firm must innovate or perish. Therefore the products developed should be able to meet the dynamic need of the target market, for market to be secured.
Hence adequate marketing research has to be effectively conducted before coming up with a product otherwise its sale will hit the rock.
Product development is absolutely pivotal to future marketing success. The major goal of product development is modify products so as to better satisfy needs at reduced costs and also make the management of an organization to obtain a competitive advantage and customer loyalty.
Therefore, this chapter will deals with a view of earlier work on the subject matter.
1.1. BACKGROUND OF THE STUDY
The Nigerian economy has recently recorded growth in some of its major sectors, among which is the bottled water manufacturing industry. In the past this sector comprise of very few companies who could not meet the market demand of portable drinking water in the country. Due to the untapped opportunity in this sector, a lot of mushroom operators ceased advantage to market very poor quality unbranded products popularly regarded as “pure water”.
However, with the economic reforms still taking place, a lot of government enforcement agencies such as National Agency for Food and Drug Administration Control (NAFDAC) and Standard Organization of Nigeria (SON) have intervened by clearing up the cities of inferior products (pure water).
Although, growth in the bottled water industry is not rapid, one can appreciate the level of sanity in the sector. The improvements noticed in the product quality can be traced to its packaging, labeling, branding and its contents. With the relatively slow growth experienced in this sector competition has began to intensity and since price war is not too common, firms must resort to other strategies (New product development, promotion and distribution).
Product are the linking point and relying totally on old or existing products will be a stupid, ides. Companies here to innovate, whether by differentiating or diversifying their product portfolio, there is the need for bottled water producers to invest heavily on research and development in order to continually meet the ever-changing demand of consumers.
New product development is the process of creating something entirely new or adjusting and existing product to thing entirely new or adjusting and existing product to better satisfy customers needs and wants (Bassi, 2006)
New product development is one of the avenues of enlarging the size of a firms products portfolio although, any firms seem not to have recorded much success in this area due to depressed global economy, it is imperative to recognize the fact that necessity gives birth to depressed global economy, it is imperative to recognize the fact that necessity gives birth to invention and organizations who refused to innovate will be forced out of the market.
New products are the future any business and with out a continuous flow of them, the marketing system would probably die. Every organization should carry on with a new product it for no reason at all, “that some existing company’s product with enter the decline state some day.
Furthermore, it is of paramount importance for top management to develop specific criteria for accepting new products ideas. Such criteria can vary with the specific role the product is expected to play.
This study will lend from Booz – Atlen and Hamilton (1982) in Baker (1996) eight (8) strategic role that companies can use to set objectives for their new products.
They are as follows:
1. To maintain position as a product innovation
2. to establish a market share position
3. to establish a foothold in a future new product
4. to preempt a market segment
5. to exploit technology in a new way
6. to capitalize on distribution strengths
7. to utilize excess or off season capacity
8. to provide cash generations.
Kolter (2000) also quoting Booz- Allen and Hamilton 91982) identified six categories of products and their newness to the company and the market.
i. Market of complexity
ii. Relative merit
iii. How compatible
iv. Observation benefits
v. Sampling quality
To crown it up today under the pressures of inflection and high cost, major factors of production the succession of a company’s product development depends on how effectively organized its structure is in managing the new product development process; Kotler (2002) noted that new product development is retarded as a result of the following; shortage of important ideas fragmented markets, social and government constraint, costless of the development time and shorter product life cycles.
He further added that eigth (8) steps could be identified in the development process namely;
1. Ideal generation
2. Ideal screening
3. Concept development and testing
4. Marketing strategy development
5. business analysis
6. Product development
7. Test marketing
8. Commercialization
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