The Effect of Marketing Research on the Product Planning Process
Chapter One
OBJECTIVE OF THE STUDY
The primary objective of this study is to analyse the comparative use and effectiveness of marketing research in the product planning process using Unilever Nigeria plc, Aba as a case study, the study is to determine and establish the following objectives:
- The necessity of effective marketing research in new product planning and development
- The importance and benefits of monitoring the change in consumers’ tasks and preferences as well as other environmental variables such as competitors’ activities.
- How marketing research can be helpful in management of product mix and line a firm offers to the market
- The fact that marketing research is in agreement with marketing concept is the chief determinant of a firms survival in this competitive environment
- The positive contribution of marketing research to the success of a new product planning and product development.
- The consequence of ignoring marketing research in product planning process.
- The importance of marketing research in goods product packaging and brand design.
CHAPTER TWO
REVIEW OF LITERATURE
INTRODUCTION
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
Precisely, the chapter will be considered in three sub-headings:
- Conceptual Framework
- Theoretical Framework
- Empirical Review
CONCEPTUAL FRAMEWORK
Marketing
Marketing has been defined as the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to crate exchanges that satisfy the perceived needs, wants and objectives of individuals and organizations (Arens, Weigold, Arens, 2009). Marketing has also been described as the process of creating, distributing, promoting and pricing goods, services, and ideas to facilitate satisfying exchange relationships with consumers and to develop and maintain favorable relationships with shareholders in a dynamic environment (Pride and Ferrel, 2009).
The procedure of marketing can be divided into several steps, which should be followed in order to achieve successful marketing. The first step is to find out what the customers needs, or want. This may vary between different customers segments. The next step is to develop the product or service to meet these requirements in order to satisfy the needs customers. After these, the customer must be informed about the product, this stage includes finding the correct marketing channels to communicate with the customers. These involve the application of marketing mix elements (product, price, place and production (Puustinen and Rouhiaine, 2007).
Marketing Mix
The term marketing mix involves variables that are controllable and can be adjusted on a frequent basis to meet the changing needs of the target market and other dynamics of the marketing environment (Palmer, 2004). Marketing mix elements help the company to influence the demand for its products. These are the four core variables generally known as 4Ps: product, price, place, and promotion. In order to create an effective marketing programme the elements should be blended and used effectively (Kotler and Armstrong, 2010). The choice of a mix is normally influenced by the nature of the product, the number and location of target audience, the financial ability of the company and the preferences of management. Other determinants are government regulations professional codes of conduct, as well as the degree of competition in the industry (Ile, 2001).
Still on the concept of marketing mix, it has been defined as a combination of product, prices, distribution (place) and marketing communications (promotion) by a company to make marketing decisions. It can also be considered as a leadership style, whose goal is to ensure customer’s satisfaction by using the appropriate marketing mix. The main tools for the company to influence its customers through marketing actions are selecting the right products, pricing, delivery channels, and marketing communications tools (Anttila and Iitanen, 2001). However, these elements are used as strategy most companies in running the businesses.
Marketing Approaches
There are various marketing strategies used by SMEs to enhance their performance and to market their products and services. This study examines the customer relationship marketing strategy, innovative marketing strategies and the technology based marketing strategies.
Customer relationship marketing goal is to provide increased value to the customer and results in a lifetime value for the service provider. Customer relationship marketing is very important concept to attract and keep the customers in organizations. In modern business world, marketing focus reflect the move away from transactional marketing to relationship marketing. Establishing, maintaining and enhancing customer relationships have always been an important aspect of business (Velnampy and Sivesan, 2012). Customers Relationship Marketing is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. CRM is a business strategy used to identify, cultivate, and maintain long-term profitable customer relationships. A study by Alibhai (2015) established that customer’s relationship marketing strategies influence firm performance. Further, the study established that service quality enables the firms to maintain communication with the customers. The study concluded that all the employees who are conversant with the
CRM strategies and are constantly involved in the implementation of the strategies. In addition, Velnampy and Sivesan (2012) established that customer relationship marketing impact on customer value creation in mobile service providing companies.
Innovation is an important and critical factor for the organizations in order to create value and sustainable competitive advantage in today’s complex and changing environment; and more innovative organizations will be more successful in dealing with changing environments and in creating and developing novel capabilities, which allow them to achieve a higher performance (Ghorbani and Fakhimi, 2013). The intense competition between organizations in the global market leads that the innovation is considered as a critical characteristic for organizations.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e. mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION SAMPLING SIZE
The population for the study will consist of executives and their subordinates in the organization which is charged with the application of management by objectives to attain organizational goals in the organization.
This study was carried out to examine the effect of marketing research in product planning process using Unilever Nigeria Plc, Aba as a case study. Hence, the population of this study comprises of staff of Unilever Plc Aba, Abia State.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of sixty five (65) questionnaires were administered to respondents of which fifty (50) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 50 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS:
Introduction
This chapter summarizes the findings on the effect of marketing research in product planning process using Unilever Nigeria Plc, Aba as a case study. The chapter consists of summary of the study, conclusions, and recommendations.
Summary of the Study
In this study, our focus was to examine the effect of marketing research in product planning process using Unilever Nigeria Plc, Aba as a case study. The study was specifically carried out to determine the necessity of effective marketing research in new product planning and development, the importance and benefits of monitoring the change in consumers tasks and preference well as other environmental variables such competitors activities, how marketing research can be helpful in management of product mix and line a firm offers to the market, the fact that marketing research is in agreement with marketing concept is the chief determinant of a firms survival in this competitive environment, the positive contribution of marketing research to the success of a new product planning and product development, the consequence of ignoring marketing research in product planning process, and the importance of marketing research in goods product packaging and brand design.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 50 responses were validated from the enrolled participants where all respondent were staff of Unilever Plc Aba, Abia State.
Conclusions
Based on the findings of this study, the researcher concluded that;
- Marketing research have a positive contribution to the success of a new product planning and development.
- There is need for marketing research in product line and mix decision and management.
- Marketing research is of importance in product life cycle as regards to the strategies to adopt at each stage.
- Marketing research helps in good packaging and brand design of a product.
- There is benefit of monitoring the changes in consumers tastes and preferences, and the marketing environment (among which are competitors activities technological change etc) in order to know the best to them.
- Marketing research have benefit to organizations if applied as often as the need arises in the product planning process.
Recommendations
Based on the findings of the study, the following recommendations are proffered.
- Most company should invest in promotional activities to enable the product sell in the market and to increase the profitability of the company.
- Also companies should adopt the scientific method of product planning and development within the context of marketing research.
- That they should also conduct gap analysis of the existing products by interviewing a representative of consumers to find out their views about the company‟s existing products before thinking of producing another one.
- They should also take note of the types of research approach used at the stage which includes monadic approach which is concern with comparing the concept with or against existing market after of the competitors. The Holistic approach of data about the marketing mix variable such as price, promotion package and distribution. Although the companies conduct testing, it may suggestion that the company studies very well the procedure of product testing which varies from company to company and product to product.
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