EFFECT OF MARKETING RESEARCH ON PRODUCT DEVELOPMENT
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EFFECT OF MARKETING RESEARCH ON PRODUCT DEVELOPMENT
Chapter one
1.0 Introduction
1.1 Background of Study
Today’s world is characterised by significant market and economic shifts, as well as rapid technological advancements. To assure future market success, corporations invest in marketing research on New Product Development (NPD).
Most marketing research on new product development is more likely to fail than succeed; yet, addressing shifting tastes with new products is critical in sustaining consumer loyalty,
so strong NPD becomes a crucial aspect in competitiveness. New product development can be successful if the organisation changes the way it does marketing research.
(Hollingsworth 2006 and Jeffery 2008) suggested that NPD strategies and processes adapt to changes in the market and technology. It is commonly acknowledged that effective new product development (NPD) processes play a causal role in long-term corporate success (Cooper, 2003; Ulrich and Eppinger, 2005; Wheelwright and Clark, 2005).
They can result in a core competency that either distinguishes a company from its competitors (Prahalad and Hamel, 2000) or provides a minimum competency required to survive in rapidly changing and inventive industry sectors.
Given the significance and relevance of NPD to company performance, academics have established descriptive frameworks based on linear, recursive, and chaotic system perspectives, providing various insights and descriptive theories regarding NPD process structure and behaviour.
These are frequently the foundation for normative research, which attempts to predict and dictate causation in NPD processes (Gryphon, 2007). Problems with performing successful marketing research on NPD are exacerbated in many big industrialised countries, where spending on R&D and NPD management may be even lower.
However, while some study on NPD in developing countries has begun to surface, NPD success determinants have garnered some academic attention, with higher technology industries typically providing the context.
Developing countries are extremely competitive in several areas that do not require significant technology, but they must conduct marketing research on NPD to stay current with market trends.
Management is frequently faced with the dilemma of whether or not to invest in a specific stage of the new product development (NPD) programme, given the market and technology uncertainties that surround such a decision in current markets, particularly technology-driven or high-tech markets (Moriarty and Kosnik, 2009).
The changing economic conditions and technologies, combined with increased domestic and global competition, changing customer needs, rapid product obsolescence, and the emergence of new markets, necessitate a rapid resource allocation process in NPD (Bower and Hout 2008, Gryphon 2003, Gupta and Wilemon 2000, Rosenau 2008).
At the same time, market and technological unpredictability necessitate programme flexibility; see Sanchez 2005, Wind, and Mahajan. To remain competitive, we must focus more on value-added products in the future,
which will necessitate higher investment in marketing research. Modern retailing and evolving consumer preferences drive demand for higher-quality items with longer shelf lives and better packaging.
Foreign brands that were previously imported for a wealthy minority are now locally manufactured and affordable to the general public. NPD is likely the most significant procedure for many businesses because it enhances and develops the company’s innovativeness.
In essence, NPD is a method of attracting clients after the generated products are of high quality. In business, new product development (NPD) is the entire process of introducing a new product to the market.
A product is a bundle of benefits delivered in return, which can be visible (i.e., something you can touch) or intangible (such as a service, experience, or belief).
The NPD process contains two concurrent paths: one for idea creation, product design, and detail engineering, and another for market research and marketing analysis.
Companies often view new product development as the initial stage in creating and commercialising new products as part of a larger strategic process of product life cycle management used to retain or expand market share. The NPD process is critical within an organisation, but it is a complex and time-consuming process that involves a variety of tasks.
Several scholars define NPD as the integration of market assumptions with technology potential to translate a market opportunity into a product. Krishnan and Ulrich (2001); Griffm and Hauser (2002, 2006).
In 2006, the Product Development and Management Association (PDMA) described NPD as a comprehensive process that includes strategy, organisation, concept generation, product and marketing plan formulation and evaluation, and new product commercialization.
This means that NPD is a process that starts with identifying opportunities and finishes with a set of data that provides value to customers and generates profits for businesses.
1.2 Statement of the Problem
Marketing research is a critical component of new product development; it is the first step in determining the success of any product. It serves as the foundation and cornerstone for any product.
Unfortunately, the influence of marketing research receives the least attention; businesses must not only rely on promotional methods, but also fine-tune their marketing research programme with the goal of increasing the quality of their product.
The issue could be a lack of marketing in some businesses, as marketing can generate little or no revenue. Finally, while multiple studies have been conducted on the effect of marketing research on new product creation,
not a single study has been conducted on the effect of marketing research on product development, as demonstrated by a case study of Demas Food Limited in Eket, Akwa Ibom.
1.3 Aims and Objectives of the Study
The primary goal of the study is to investigate the impact of marketing research on product development. Other specific study objectives include:
1. Determine the extent to which marketing research has influenced product development at Demas Food Limited, Eket.
2. To identify the factors that influence marketing research at Demas Food Limited, Eket.
3. To assess the impact of marketing research on product creation at Demas Food Limited, Eket.
4. Investigate the conditions under which marketing research is more likely to be used during the product development process.
5. Determine the value of marketing research in new product development at Demas Food Limited, Eket.
6. To suggest alternative solutions to the challenges.
1.4 RESEARCH QUESTIONS.
1. To what extent has marketing research influenced product development at Demas Food Limited, Eket?
2. What elements influence marketing research at Demas Food Limited, Eket?
3. What effect does marketing research have on product development?
4. In what conditions is marketing research more likely to be used during the product development process?
5. How important is marketing research for new product development in Demas Food Limited, Eket?
6. What are some potential remedies to the problems?
1.5 Statement of Research Hypothesis
H0: Marketing research has no meaningful impact on product development.
H1: Market research has a substantial impact on product development.
1.6 Significance of the Study
The study on the effect of marketing on research on product development will be extremely beneficial to the entire Demas Food Limited, Eket in the sense that it will educate them in the areas of customer satisfaction and integration within the organisation to achieve a single goal.
To make these possible, marketers must conduct thorough research to understand their consumers’ shifting needs as well as their competitors’ activity. Also, instead of relying heavily on promotional activities and other marketing tools to determine whether or not a new product will be accepted in the market,
it is necessary to re-examine other tools that could be used to reduce the high rate of product failure. This will also expose other areas that have inherent characteristics that make marketing research an unavoidable tool for product development.
Finally, the study will add to the corpus of existing literature and expertise in this field of study, establishing a foundation for future research.
1.7 SCOPE OF THE STUDY
The study on marketing research for product development is limited to Demas Food Limited in Eket, Akwa Ibom State.
1.8 Limitations of the Study
Financial constraints- Insufficient funds tend to restrict the researcher’s efficiency in accessing relevant resources, literature, or information, as well as in data collecting (internet, questionnaire, and interview).
Time constraints: The researcher will conduct this investigation while also working on other academic projects. This will reduce the amount of time spent on research.
1.9 Definition of Terms
Effect A change that occurs as a result of another’s activity or cause.
Marketing Research Marketing research is the function that connects consumers, customers, and the general public to marketers via information.
This information is used to identify and define marketing opportunities and problems, generate, refine, and evaluate marketing actions, monitor marketing performance, and improve understanding of marketing as a process.
Product A product or substance that is produced or processed for sale.
Development The act of developing or being developed.
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