NEW PRODUCT DEVELOPMENT AS A STRATEGY FOR SALES GROWTH, PROFITABILITY AND COMPETITIVENESS

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CHAPTER ONE

INTRODUCTION

1.1   Background to the Study

In Nigeria, the banking industry has been experiencing cyclical movements in its development patterns right from independence in 1960 to date. As a result of the importance of the banking industry in the economic development of the country, successive governments in the nation came up with different policies, programmes, regulations and strategies in the form of financial guidelines with the aim of improving the performance of the industry. These guidelines include: regulation, deregulation, liberalization, globalization, paging of interest rate, consolidation and the like. In essence, the relevance of any business organization lies in its ability to develop new product in line with the needs, wants, interests and or aspirations of the society or community within which it operates. However, changes in the consumer taste, preferences and aspiration, as well as technological innovations, open market economy, challenges of globalization coupled with the new banking consolidation policy aimed at sanitizing the fragmented and crowed banking industry in the country, have brought in discipline and orderliness in the sector. However, there is no guarantee that a successful product today will remain relevant or success in the near future.

However, with deregulation and liberalization policies, the central bank of Nigeria was able to reduce the number of small indigenous banks from 89 to about 25 mega-sized banks, solely to provide a wide range of new product.

1.2 STATEMENT OF THE PROBLEM.

There are some producers who failed to carryout marketing research and those who carryout theirs failed to highlight the problem associated with marketing research on product development.

The problem are how to carryout marketing research, the strategies and the techniques to be used in carrying out marketing must be identified.

1.3   PURPOSE OF THE STUDY

At the end of this research study, the researcher intends and wishes to achieve the following objectives:

i.                   To reveal how marketing research can help in the development of new products.

ii.                 To show how the modern business executives can apply a truly analytical approach and scientific procedures to decision making.

iii.              Another factor that leads to this research work is the need for product development through a well planned and tailor marketing research.

iv.               To help modern business executive in the analysis and evaluation of the marketing decision that have been taken.

v.                 Finally, this study aim at showing the impact of marketing research on new product development.

1.4 SIGNIFICANCE OF THE STUDY

The significance of this study is to show how new product can be developed through a well planned and executed marketing research in order to enhance and maintain efficiency, high standard production and effective marketing operations. This study is design to show the benefits that lies to any production and marketing firm which have taken the pain to effectively and efficiently carryout marketing research before developing new products.