Marketing Research and the Process of New Product Development

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Marketing problem
In today’s marketing environment, which changes rapidly, companies are enforced to adjust their business strategy to please their customers. Adjustment of business strategy is complex desire, especially to those firms which try to offer to their customers more, better and different products or services. Hence, we can see marketing problem, which will be defined through problematic questions: * Why marketing research is important for the new product development? * How to apply marketing research to the new product development? * How companies find and develop new product ideas?

* How companies manage the process of new product development in today’s environment? Problem Statement
The general concept of research is essential because through it, people attain information that is not fully known to them. Marketing research is not only important for gaining information, but serves as a foundation for making marketing decisions. Also, it helps firms to succeed in new product development. In order to stay in today´s changing market, companies should develop new products. Many researchers argue that about 80% of new products fail, so companies should pay more attention to marketing research, when decide to develop new product or number of products. The purpose of this thesis is to provide some useful information for Bosnian enterprises, in order to be successful when introducing new products, because success will not result solely from having a good idea.

1. Marketing research

Marketing research is closely related to operating businesses. Research shows that the most successful new products result from marketing research. So, it is necessary to be defined and explained when developing new product. Many companies use marketing research in a wide range of situations. It can help them to understand purchase behavior, or to measure effectiveness of pricing, product, and distribution and promotion activities. Today, as we know, many large companies (P&G, Nestle, and Kraft) have their own research departments. With marketing research companies are allowed to make effective decisions in identifying new product opportunities. “Marketing research is the function that links an organization to its market through the gathering of information. This information allows for the identification and definition of market-driven opportunities and problems. The information allows for the generation, refinement and evaluation of marketing actions. It allows for monitoring of marketing performance and improved understanding of marketing as a business process.” Marketing research definition has to take in account the changing role of research in modern marketing. Marketing research identifies the information required to address issues such as to define and distinguish marketing opportunities, to create, improve and assess marketing actions, to monitor marketing performance. It helps to improve understanding of marketing as a process.

1.1. Marketing information system (MIS)
MIS primarily exists to help company’s marketing experts to make effective and good decisions. “A marketing information system consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers.” First, it assesses information needs. However, it also helps to some external partners, for example to resellers, marketing service agencies or suppliers. It increases the number of options that are available to those who make decisions and supports every element of marketing strategy. In today’s marketing environment, which changes rapidly, initiative in decision making is necessary, and marketing information system prevents suffering management from an overload of redundant information. It facilitates integration between functional business departments and in that way supports marketing decisions. When marketing information system is good there...
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