EFFECT OF TEST MARKETING ON PRODUCT INNOVATION
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EFFECT OF TEST MARKETING ON PRODUCT INNOVATION
ABSTRACT
This study was conducted to explore the impact of test marketing on product innovation at Markon Chemical Industry Limited in Onitsha. The term “test marketing on product innovation” is very important to any profit-oriented organisation that engages in the activity of producing chemicals or goods and providing helpful services to customers.
Most organisations seek to profit from the exchange of commodities or services in order to fund their everyday operations. As this topic focuses on the impact of testing marketing on product innovation, it highlights the benefits and drawbacks of the procedure and type of test marketing that are deemed beneficial to the company,
as well as the consideration of consumers when developing new products and test marketing. The researcher will use questionnaires and interviews to collect data from consumers, staff,
and distributors, and will then analyse it using a contingency table and statistical tools to arrive at a very explanatory answer. Readers of this work will find it beneficial to use of work in any company where they work as staff or distributors.
Chapter one
1.0 Introduction
This chapter provides a full overview of this work. It serves as the foundation for this research project, presenting the study’s background, objectives, research questions, and other significant subtopics.
The work is centred on two primary concepts: test marketing and product innovation. Before a product or goods and services can be approved, it must go through a series of processes, one of which is marketing.
1.1 Brief History of the Study
The company was established in Nigeria on October 5, 1984, as a division of Shirley Chemical Industry, Importer, Exporter, and Manufacturer.
The enterprise is based at No. 42 Francis Street, Onitsha, Anambra State, along the Old Market Road, Onitsha, and has two more branches. It was incorporated in Britain on January 9, 1959, as Britain Paint Wakko (WA) Limited.
Markson Chemical Industry (Marketing Group of Companies) subscribed for 87.9% of the company’s issued share capital and retained control. Its main businesses include the production of soap, cosmetics, and plastic.
The company currently employs 278 people, of whom 20 are skilled workers, 80 are semi-skilled, and the remaining 187 are cause workers. This wide range of products manufactured by the company today has become more household names; for example, in the soap and detergent range, they have Rock,
Medicated soap, Bona Black soap; other important products include hair rollers and baby boy cream, Cusson baby body cream, and Cusson baby products in terms of plastic and cosmetics. Indeed, the samples given show that practically every home is likely to include a product manufactured by the Markson Chemical Industry.
1.2 Background of the Study
The work is centred on two primary concepts: test marketing and product innovation. Before a product, products, or service can be approved, it must go through specific processes, one of which is marketing.
According to Bush and Houston, test marketing involves testing a product in a limited geographic area to evaluate whether it should be released to the national market.
According to the business lexicon, test marketing is a stage in the product development process in which the product and its marketing plan are exposed to a carefully selected sample of the public before being rejected for full-scale rollout. According to Wikipedia, product innovation is the creation and subsequent introduction of similar goods and services.
It’s a comprehensive approach to new product development. Many innovative products reach the market on a daily basis; some last for a long time, while others fade away within a few weeks or months of their introduction.
Some products that do not have sufficient planning do not sell quickly because of failures in product innovation, while others are late to the market and fail. This study will explain in detail why Markson Chemical Industries is the market.
Testing marketing is critical for chemical-oriented products in the market. It includes all of the company’s intentions for such or similar products.
Finally, this work is centred on Markson Chemical Industry Limited, which is located in Onitsha, Anambra state. Many researchers will find it useful to analyse what will happen to a new product at the end of its marketing life cycle, as well as customer response.
STATEMENT OF PROBLEM
The fundamental challenge of this work is to find out the extent test marketing on product innovation influences on the marketing of goods; however, the smaller problems are as follows:
To what extent does the corporation promote its product through test marketing for product innovation?
To what extent does test marketing for product innovation benefit the company’s product?
1.4 PURPOSE OF THE STUDY
The major purpose of this study is to know the effect of test marketing on product innovation in the marketing of goods by Markson Chemical industry. The particular objectives are:
To determine the impact of test marketing on product innovation and demand for the company’s products.
To determine who in the Markson chemical business can enhance its market share through appropriate test marketing for product innovation.
1.5 RESEARCH QUESTIONS.
The researcher formulated these research questions for the purpose of this study, and they are:
To what extent has test marketing for product innovation been beneficial to the company?
Does the corporation enhance product sales through test marketing and product innovation?
1.6 Significance of the Study
This study examines the requirement for adequate test marketing on product innovation to enable such companies and products to achieve a market level where the product will not fail in the market and consumers will gain the necessary satisfaction.
The study will also help us understand the importance of test marketing in product innovation and the benefits it has over products that are brought directly to the market.
It is thus appropriate for persons or consumers who are new to product or brand management, as well as those who aspire to be in such a position. Most significantly,
it will provide Markson Chemical Industry Limited with an advantage over competitors that bring their products directly into the market, as well as an indication of how likely such a product will fail in the market.
Finally, this study will be extremely beneficial to future researchers by supporting and directing them through the successful completion of their own particular investigations.
1.7 SCOPE OF THE STUDY.
This study is limited to Nigeria, namely to the Markson chemical business in Onitsha, Anambra state.
1.8 Limitations of the Study
This activity, as a research project, is difficult to complete due to constraints such as data inadequacy, financial involvement, and the time-consuming nature of the work, which is carried out alongside other academic pursuits. All of these, as well as some others, are study limitations.
1.9 Definition of Terms
This is to help us and others better understand the terminologies used in this work.
Peter Drrucker (Hesselbein 2002) defines innovation as a change that provides a new dimension of performance.
PRODUCT: This can be defined as a set of tangible and intangible features that satisfy customers and are exchanged for money or other units of value. Kolter and Armstrong (2005:276) define a product as anything that can be offered to a market for attention, acquisition, or consumption in order to satisfy a want or need.
MARKETING: According to Philip Kotler, marketing is a human activity that aims to satisfy needs and wants through the exchange process.
Bush and Houston (1985) define test marketing as the presentation of a product in a small geographical area to determine whether the product should be introduced to the national market.
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