CHAPTER ONE

INTRODUCTION

In this present business world, the survival of any firm in a competitive environment depends on the plan of the management. Therefore, the ideas of a new product development must not be neglected, it is very vital to properly look into the product development by the top management whether in a manufacturing or service firm.

The change in consumer needs and tastes, rapid technological changes, shortened product life cycles and changes in Business environment facilitates the need for product development to meet consumer expectations.

Product development can be examined with regards to market development which covers the search for new uses or new market remove. At times, the companies that make the industry as its target find new markets in the consumer field.

Diversification is another form of new product development. It may be a departure from existing product, or a new product with new technology and new market. It becomes imperative to develop new product if the firms long term survival is to be assured and to take over from rationalized products. It is also needed when major technological changes have taken place or when forecast or when a company wishes to expand its activities into other places which includes the search for assessment, planning and lunching of new product or services ideas.

The survival of any business depends majorly on how quick it can adapt to changes in the environment and the challenges exhibited by the company in the market area.

However, top management, marketing manager and all those directly concerned with the company’s product needs to take necessary steps towards this development. Any new development in the market area must be monitored by the management through adequate marketing intelligence.

The techniques implemented in setting the firms goods and services will vary depending on the tope of consumers and the sort of market involved. The consumer may be distributors, retailers or an individual. The market may be fairly competitive with large number of buyer and sellers. In such a situation, they have to be specially concerned with price, quality source and their product style in order to keep old customers and attract new ones.

To win the lion share of the market, the company decision, this can be achieved by providing best product or services that satisfies customers.

In a situation whereby products and price are the same with those of the competitors, the firm must create differences in packages, services or corporate image. It is therefore necessary for any manufacturing company to embark on proper product, planning and development that enable its new product last longer in the market.

Another important aspect to lay emphasis upon is advertisement. This is a means of getting information across to the target customer; hence the introduction of new product in a competitive market environment cannot be attained without advertisement.

1.2 STATEMENT OF THE PROBLEM

New product development is a decision which the management of an organization needs to plan very well before It is executed. In this regard, certain questions arise and this constitutes the problems of this study namely:

1. Would the new brand of product developed by favourably with other products?
2. Can the new product enhance profit management of the firm?
3. What strategies could be used to penetrate the market with the new product?
4. Will the new product developed be accepted by the market?
5. It is imperative that external environment affect marketing mix, if so what would be the nature and magnitude of influence on the new product proposed to be developed?
6. Does the firm posses qualified and strategic and adequate persononnel to handle the strategy of new product developed and implementation.

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