CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Effective marketing decisions are based on sound information. This is true whether the decision is by a consumer on which brand and model to buy, or a marketer (producer) on the number, characteristics of the models to offer, as well as time of introduction of the new products. It is equally true whether the decision is by a marketer of physical product or a marketer of service product. These judgments can be no better than the information on which they are based. That is the amount and quality of information emanating from both external and internal sources of the organization. Marketing research and other tools could be employed to gather relevant information needed for more accurate production of goods and services that will satisfy consumer needs, and events that will provide either threats or opportunities to the organization.

No organization can succeed, grow or survive without marketing research. The function of marketing research is to provide information that will assist management in making decisions.

Effective marketing decisions are based on sound information, information is needed both to help identify problems and to solve them once they have been identified.

Marketing research helps to develop information that will be useful to manufactures in the process of developing a new products. Today many forces dictate that every firm has access to timely information. Some of these forces include:

Competitive pressure: To be competitive, companies must develop and market new products more quickly then ever before.

Expanding markets: Marketing activity is becoming increasingly complex and broader in scope as more firms operate in both domestic and foreign markets.

Cost of mistake: Introducing and marketing a new product is enormously expensive. A product failure can cause severe, even fatal damage to a firm.

Growing customer expectations: The lack of timely, adequate information about a problem with respect to some aspect of an organization’s marketing program can result in lost business. (Cannon: 1996, p. 100).

Marketing research is the function that links the marketer to consumers and the public through information in term of developing a new products . It is used to identify and define marketing opportunities and problems, to generate, reline, and evaluate marketing actions; to monitor marketing performance and to improve understanding of the marketing process. (Kotler and Armstrong: 1999, pp. 115-116).

Marketing research furnishes the information which enables an organization to give value and satisfaction to consumer. In order to produce superior value and satisfaction for customers, companies need information at almost every turn. Good new products and marketing programs begin with a thorough understanding of consumer’s needs and wants. Companies also need an abundance of information on competitors, resellers and other actors and forces in market place. Increasingly marketers are viewing information not just as an input for making better decisions but also as an important asset and marketing tool. (Glazer: 1991, pp. 1-19).

Marketing research helps an organization keep abreast with its changing environment. It is essential that organizations which strive to satisfy consumers’ needs and wants must keep abreast of the

changing marketing environment. The dynamic nature of the market inevitably means that information collected several years ago or opinions formed on the basis of past experience will no longer be valid or tenable today.

Marketing research is essentially a tool for reducing manufactures decision risk in the process of developing a new products and thus enhancing long-term profitability. Research does this in many ways. One of the fundamentals, which must be grasped, is that the more manufactures managers know about the consumers or the market in which they are operating the better they will be able to prepare an appropriate marketing program. Simply put, the better the marketing information, the marketing decision.

STATEMENT OF PROBLEM

Even though it is absolutely essential that marketing research be used by every organization, this has not been the case in Nigeria. What is lacking in most organizations in Nigeria today is the use of marketing principles and marketing research to direct their effort or programs. The hue and cry of most Nigeria is that the locally-made products are of inferior quality compared to imported products.

Most organizations in Nigeria are not marketing-oriented and do not see marketing research to direct their operations. In this situation, they are not in touch with their target customers and do not bother to identify or address their needs and wants. As a result they scarcely know when the needs and wants of their customers are changing.

1.3 RESEARCH QUESTIONS

1)   What benefit does manufacturers drives in conducting marketing research when developing a new product?

2)    How many companies in Enugu State conduct a marketing research before developing a new product?

3)  What is the effect of conducting/not conducting marketing research on company product?

4)  When and how often companies introduce new products, before or after marketing research?

5)   What is the performance of product introduced before or after marketing researcher?

6)    Does customers drives satisfaction after using products made before or after marketing research.

7)  How is marketing research conducted in your company?

8)  Does marketing research help to know to best time to introduce a new product?

9)   Does marketing research helps to find quality raw materials for developing a new product.

10)  What is the rule of marketing in research in development of a new product?

11)  Does marketing research help to find out consumer’s need and taste?

12)  What is the influence of marketing research in the development of new products?

1.4 RESEARCH HYPOTHESIS

The following hypotheses have been formulated for this study.

Ho: Manufacturers do not conduct marketing research when developing new products.

Hi: Manufactures conduct marketing research when developing new products.

Ho: Marketing research is not useful in the development of new products.

Hi: Marketing research is useful in the development of new Products.

Ho: Marketing research cannot help to know the best time to introduce new products.

Hi: Marketing research help to know the best time to introduce new products.

Ho: Products made after marketing research are not of high quality.

Hi: Products made after marketing research are of high quality.

Ho: Consumers do not derive satisfaction after using products made through marketing research.

Hi: Consumers derive satisfaction after using products made through marketing research.

1.5 PURPOSE OF THE STUDY

The main purpose of this study is to, investigate whether manufactures conduct

Marketing research before developing of new products in Nigeria.

Other objectives that captured the focus of this study include:

i. To investigate whether Nigeria companies conduct marketing research in their organizations

ii.   To identify their reasons for conducting marketing research by the companies.

iii.    To find out whether marketing research helps manufacturers to know consumer’s needs and tastes

iv.   To find out whether marketing research helps manufacturers to introduce their new products successfully.

v. To identify the influence of marketing research in the development of new products.

vii.   To find out whether Nigeria manufacturers have procedure in conducting marketing research.

1.6 SIGNIFICANCE OF THE STUDY

It is obvious that in any field of human endeavour, enrichment of knowledge or awareness is the key to successful adventuring. The use or application of marketing research by organizations in Nigeria. Will help them to bridge the unsatisfied gaps in the consumer’s needs and wants, and improve on their short comings and failure to give the required satisfaction and benefits to consumers. Marketing research should be utilized continuously by organizations to monitor their target market! customers and to help them apply the best marketing mix aimed at delivering high level satisfaction In this regard, this research work directed to find out the

‘‘ role marketing research plays in the development of new products, that will be beneficial to members of the public, the government, students, and manufacturers of tangible (physical) and intangible (service) products.

Moreover, if the conclusions and recommendations of this research project is adopted, it will enable business organizations in the country to review their plans in the development of new products and adopt them in the direction that would lead to the satisfaction of consumers needs and wants, as well as obtaining and maintaining profitable sales volume.

1.7 SCOPE OF THE STUDY

‘Marketing research and development of new products’ is a

research study carried out to depict the quality of products in Enugu state.

However, the scope of the study shall be examined using the three senatorial zones that make up Enugu State. They are: Enugu-East senatorial zone, Enugu-West senatorial zone, and Enugu-North senatorial zone. The senatorial zones were used to enable the Searcher collect a broad based information that will cut across the area of study. Out of each senatorial zone, one company was selected, making up three companies.