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THE RELEVANCE OF PRODUCT INNOVATION ON THE MARKETING PERFORMANCE OF AN ORGANIZATION
ABSTRACT
This research work is on relevance of product innovation on the marketing performance of an organization. A Case Study of Diamond Bank PLC, Warri. Its objective is to determine the relationship between product innovation and the growth banks. This study is limited to Diamond Bank PLC, Warri. Due to the fact that the population is low the same number is adopted as the sample size for this research work which is eighty (80). The statistical tool used is the chi-square. One of the hypotheses of this research work is H0: there is no significant relationship between product innovation and organization marketing performance. H1: there is a significant relationship between product innovation and organization marketing performance. After the analysis, it was discovered that there is a significant relationship between product innovation and the marketing performance of an organization. Therefore, it was recommended that top level management should give support and encouragement to those responsible for developing product in the organization (bank).
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Many companies have employed different strategies to good management innovation strategy. The innovation process includes the acquisition, dissemination and use of new knowledge (Carlanton et al 2012). Robertson (2001) defines product innovation as an idea or object that is perceived as new by an individual or an agency. The perceived newness of the idea from the individual’s point of view determines. To be called a product innovation an idea must satisfy a specific need. Product innovation involves deliberate application of information, imagination and initiative in deriving greater of different values from resources and encompasses all converted into useful product. In business, product innovations often result from the application of a scientific or technical ideal in decreasing the gap between the need or expectation of the customer and the performance of a company product.
Companies with good innovation strategies always thrive and grow faster than those companies with poor product innovation strategy or those with no innovation strategy at all. Banking transaction in Nigeria is not new to us as we have been practicing this system for about fifty (50) years after independence. In the past, we use to have an orthodox banking process whereby banker release on those wanting for customers to bring business. This type of bankers is looked as somebody with rigid idea about bankable project and which records the smooth flow of banking operation. One bank also employs all possible promotion strategies in order to survive. Hence competition has come into play and thereby creating innovation and business acumen. The quality of service provided by any organization is better judged in terms of its ability to give the customer the desired satisfaction. In this regards, characteristic such as reliability, standardization, availability and other desired attributes associated with service combine to determine the relevance of product innovation on the marketing performance.
1.2 STATEMENT OF THE PROBLEM
The effect of the relevance of product innovation on the marketing performance of an organization cannot be over-emphasized. Lack of product innovation strategies is caused by among others lack of sufficient funds, and lack of expertise which are important ingredient to successful product innovation. Another problem associated with product innovation is over reliance on imported goods. This makes it almost impossible for innovators to market their product and make efficient and effective performance. There is also lack of encouragement by the government and other agencies concerned. This also discourages man product innovators. This is due to the fact that many businesses have folded up due to lack of product innovation on their marketing performance and has caused the business to lose their place in the market.
1.3 OBJECTIVES OF THE STUDY
The objectives of this research work are:
i. To determine the effect of product innovation on sales volume.
ii.To examine the effect of product innovation in profitability.
1.4 RESEARCH QUESTIONS
i. Does product innovation affect sales volume?
ii. To what extent does product innovation affect profitability?
1.5 HYPOTHESIS FORMULATION
H0: There is no significant relationship between product innovation and sales volume.
H1: There is significant relationship between product innovation and sales volume.
1.6 SIGNIFICANCE OF THE STUDY
Finally, the finding of this study will be great help to the banking industries as a whole and Diamond Bank in particular. It will attempt to highlight areas of deficiency with a view to help management in improving its service and product and recommendation, if implemented it would help the bankers to improve its operation.
1.7 SCOPE OF THE STUDY
This study covers Diamond Bank Plc Staffs of Diamond Bank, Warri Metropolis and to determine the effect of product innovation in Diamond Bank Plc.
1.8 LIMITATION OF THE STUDY
This study is limited to Diamond Bank Plc, secondly the research has a sample size that is limited to Diamond Bank Plc, Warri.
1.9 DEFINITION OF TERMS
Innovation: An idea or object that is perceived as new by an individual or an agency that creates a value (Robertson and Fn 2001).
Product: A good service or idea that offers a bundle of tangible and intangible attributes to satisfy consumers (Scott Ogini, 2012).
Strategy:The process of planning something in putting a plan into operation in a skillful way.
Invention: The ability to have new and interesting ideas.
Marketing: American Marketing Association (1985) defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of goods and service to create exchange that satisfy individual and organization objectives.
