Impact of product development and innovation on market share

Abstract

This study was conducted to identify the relationships between increase in market share through product development and innovation. Many studies have been done on the concept of product development and innovation and much of what has been written tends to discuss this concept as a veritable tool for improving the life cycle of a product without substantial relation to market share enhancement. The population from where samples (respondents) were drawn included product developers, marketers, advertising practitioners, and salespersons in organisations and direct sellers of commodities. There was need to visit the salespersons of organisations and direct sellers so as to ascertain if motivation existed in selling, and if selling more arises from the introduction of a new product or new uses for a product. Direct sellers were interviewed to ascertain if there was any correlation between higher profits and the introduction of a new product and/or new uses for a product. Questionnaires, interviews and direct observation (when new products are brought to the attention of direct sellers and salespersons) were the techniques used for data collection in this study. Direct sellers were observed to underscore their joys and/or disappointment at new products. The results of the survey were interpreted using the Likert model through SPSS analysis, as it is the case with this type of investigative research. Also, recommendations and conclusions were made based on the findings, and conclusions were drawn highlighting the main issues of the study.<p></p> Key words: Product development, product innovation, product quality, product life cycle, market share, globalisation, test marketing, promotions, marketing, customer needs.