Aveneu Park, Starling, Australia

CHAPTER to the study, statement of the

CHAPTER ONE

INTRODUCTION AND
BACKGROUND OF THE STUDY

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

1.0  Introduction

This is an introductory chapter. It presents
the background to the study, statement of the problem, research objectives, and
research questions, significance of the study, scope and limitations of the
study.

1.1   
Background of the
study

In dealing with the product, one should
consider; product management, branding and product development. Where the aim
will only be; to create and acquire new customers, retain the olds ones and
keeping a firm in better position in a mind of customers.

 

Given the rapid change in consumer tastes,
technologies and competition, companies must develop a steady stream of new
products and services. This can be done in, two ways, by acquisition of firm or
by new product development by the firm’s own research and development
department. By new products it means original products, products improvements,
products modifications and new brands that firm develops through its own
research and developments efforts (Kotler 1998).

 

Innovation can be risky and the only way to
succeed lies in strong new product planning in setting up a systematic
new-product development process for finding and growing new product
developments process as well a keen management commitment (Armstrong and
Kotler, 1998).

 

Product innovation involves
conceptualization, design, development, validation and commercialization of the
new products and process that provides superior solution to the need and commercialization
of the new products and process that provides superior solution to the need and
expectation of customers’ stakeholders. Product innovation involves developing
new solutions that provide positive benefits to customers and stakeholders. Product
innovation is the fundamental management used for creating new products,
reinvigorating existing products and solving product related difficulties with
customers and stakeholders. With dynamic surge in New Developments Product
programs, leading business corporations across the world are improving their
approaches to enhance integration and to become more proactive in meeting the
realities of changing business landscapes. (Rainey, 2005)

Many executives in business firms tend to
concentrate on pricing, promotion, placement and service delivery, when
products are in the market. They believe these are tactics that can pull and
hold them to success. They overlook effective product development and
innovations. (Source: Global Benchmark Study (2004) Mastering Innovation).

In determining, understanding and analysing customers’ behaviours. The
result from many scholars was that: customers are more likely flexible in
shifting to a new product and this is due to number of reasons such as;
competition with in the market, Technology which is always change in day to day
life, social, political, culture, economic and even psychological factors in
their purchasing decision.

Sometimes customers become idle in the
market.  They do wait for new products
and services that satisfy their needs and wants.  Businesses should be pro-active to changes by
identifying opportunities and threats before any product decision. If business
firms are not innovative in introducing new products in the market, they will
lose customers and getting new ones will be very difficult. (Source: Wilson and
Fook (1987:199).

When the product is already developed, what
is needed now, is to make it last longer in a product life cycle. Making the
product last longer in a product life cycle it needs to be effectively in
developing it and launching it to the market. Therefore existing products are
to be improved, old ones to be eliminated from the market and new ones to be
generated. Effective product development gives support and improves competitive
position in the market, increase possibilities to make markets and satisfy
customer needs, assures better sales, turnover, profit and a considerable market
share.

Free entry and existing in banking industry
creates the room of tough competition in a market. Thus existing of many Banks,
brings stiff competition in the banking industry.  Thus in order NMB to overcome this situation,
it will have to position well itself in bank industry by having effective
developing of new products and make sure that they do not die in market(
Banking industry) but keep on surviving and staying stable at maturity.
(Source: Researcher’s view)

 

 

 

 

1.2   
Statement of
the Problem

The banking industry is an essential element
of the modern business world since it offers important service globally. It is
also one of the most volatile sectors. Owing to the needs of the people with
low income, particularly youth whom are now focusing on the having entrepreneurship
activities, NMB Bank Plc has continued to come up with new product development
by opening NMB FANIKIWA ACCOUNT for lower end business customers Micro and
Small Enterprises (MSE). The account is intended to offer cheaper fees and
easier know your customers (KYC) to NMB customers at the same time they enjoy
tailor made services for them. Also this products offers easy way to access
business loan, offering flexibility on both Business account and Personal
account and many others. Although faced by regulatory discord and economic uncertainty,
the bank has struggled to maintain sound footing and a competitive edge, all
the way while endeavoring to provide crucial and uninterrupted banking services
within the bank. With the economic change and poor response in money
circulation with increase in life standard of majority NMB enable to offer the
product with the quality satisfied basic to their customers though the competition
from other banks.

 

The extent to the factors that influenced their
product development and challenges likely face FANIKIWA ACCOUNT has not been adequately
addressed an evaluated.

Therefore the purpose of the study will be
to look into depth the factors influencing new products development process in
the banking sector with the reference to FANIKIWA ACCOUNT

 

1.3 Objective
of the study

 The purpose
of the study will be to investigate factors influencing new product development
in banking sectors.

1.3.1
Specific objectives

       
i.           
To establish how competition will affect the new
product development process in banking sectors

     
ii.           
To investigate how technology will influence the new
product development process in the banking industry.

    iii.           
To determine how the management influence the new
product development process in the banking industry.

    iv.           
To investigate the role of customers’ needs in the new
product development process in the banking sectors.

 

1.3   
Research
Questions

  i.                       
How does competition affect the innovation process in
the banking sector?

ii.                       
How do customers affect the innovation process in the
banking sector?

iii.                       
How does technology affect the innovation process in
the banking sector?

iv.                       
How does management influence the innovation process in
the banking sector?

 

1.4   
Significance
of the study

NMB Bank Plc

The finding of the study will be expected to
enable the organization management to improve their efficiency in service
delivery to its client. This will enable NMB to be continually bring forth new
innovation in the market and increasing the competition to other Banks.

Researcher

The study will help the researcher to
integrate theoretical training obtained from classrooms with the practical
reality in the field. Also widening the knowledge of the researcher in
marketing activities.

Other Researchers

The study is will be expected to be used by
the other researchers especially the future researcher as the advance sources
of data as reference areas. And it will be known as the secondary source of
information.

 

 

 

 

 

 

 

x

Hi!
I'm Simon!

Would you like to get a custom essay? How about receiving a customized one?

Check it out