1.1 Background of the Study
Organization’s success not only depends
on what organizations currently providing but also depends on how the
organizations can make change to improve whatever they are providing
from the marketing standpoint, the socio-economic justificationfor the
existence of any business organization isthe satisfaction of customers’
needs and wants. The organizationalsurvival over-time depends on its
ability tocreate loyal customers because its products match theneeds of
the buyers. Thus, the organization meets itsbasic responsibility to the
society through its product offerings.Planning is a continuous process
which involves decisions or choices, aboutalternative ways of using
available resources with the aim of achieving a particular product
atsome time in the future, Silver E. A., Pyke D. F., Peterson R., (2008)
For a firm to compete effectively in the
dynamicand competitive business environment and achieve set goals in
terms of profitability, high sales volume, and large market share, it
must continuously develop products and product lines to satisfy the
constantly changing desires and needs of customers (Grundiche,
2004:168). These Organizational adjustments in response to new customer
preferences even make it necessary to modify existing products,
introduce new ones or eliminate products that are unsuccessful. Product
development is a broad field of endeavour dealing with design, creation
and marketing of new product, (Yanelle, 2005:92).
It encompasses product planning as well
the technical activities of product research, engineering design, etc to
take advantage of potential opportunities facing a company’s product
idea in a market. Product development is very critical to organizational
performance because the product is the cornerstone of the firm’s
marketing mix: every other element rests on the product. Product is not
used to mean only tangible ‘things’, but includes services (the
intangibles) as well as things that can be touched and seen and tasted.
This explains why Kotler (1994:434) sees
it as a bundle of physical, service, and symbolic particulars expected
to yield satisfaction or benefits to the buyer. It enables managers to
evaluate whether organizational objectives have been achieved, and is
further used to develop and compensate managers. It helps managers
monitor whether the company is moving in the direction they want it to
go (Teeratansirikool.L, Siengthai. S, Badir.Y, 2013).The
Telecommunication industry is considered to be one of the largest and
most powerful industries in the global market, vis-à-vis technological
advancement, with its operations covering every corner of the globe and
with the world heavily dependent on communication. Today, activities in
the telecommunication industry are composed of various procedures
including service provision, sales of products like Handsets,Subscriber
Identity Module (SIM) packs and other communications gadgets. While all
this activities requires marketing, achieving efficient and effective
marketing strategy by an organization is difficult, as a result of the
ambiguity and dynamic of business factors (Brownie and Spender, 2005).
Sound and robust marketing commitment on the part of organization and
sales-people are important to the survival and growth of the
communication companies, considering the subtle, unstable and seemingly
hostile business environments in which contemporary business
organizations operate (Creveling, 2004).
1.2 Statement of the Problem
industry in Rivers State, as many other countries in the world (Daniel,
2007) has in the recent past been among the most competitive industry of
the economy. Organizations from both the private and public sector are
increasingly embracing the practice of strategic planning in
anticipation that this would translate to improved performance. The
most obvious problems of telecommunication firms in Port Harcourt is how
to provide effective services to the nation, which has been yearning
for an improved telecommunication services for a long period of time. In
response to that, the Federal Government provided for the creation of a
company that will function purely on commercial basis.
Past and recent research
studies have made it clear that there is an increased internal
andexternal uncertainty due to emerging opportunities and threats, lack
of the awareness of needs and of the facilities related issues and
environment and lack of direction.Many organizations spend most of their
time realizing and reacting to unexpectedchanges and problems instead
of anticipating and preparing for them. This is called crisismanagement.
Organizations caught off guard may spend a great deal of time and
energy playing catch up. They use up their energy coping with immediate
problems with littleenergy left to anticipate and prepare for the next
challenges. This vicious cycle locksmany organizations into a reactive
1.3 Purpose of the Study
The general purpose is to examine the
effect of Product Planning and Organizational Performance of selected
telecommunication firms in Port Harcourt while the specific objectives
1. To determine the extent to which consumer needs influence organization performance
2 To ascertain extent to which Product design influences organization performance
1.4 Research Questions
From the above specific objectives, the following research questions are formulated:
1. To what extent does Consumer needs affect organization performance?
2 To what extent does Product design affect organization performance?
1.5 Conceptual Framework of Product planning and Organizational Performance
SOURCE:(Researcher’s Desk 2015).
1.6 Research Hypotheses
The following null hypotheses are formulated from the above specific objectives:
H01: There is no significant relationship between Consumer needs andsales Growth.
H02: There is no significant relationship between Product designand Market share .
H03: There is no significant relationship between Consumer Needs and Market Share.
H04: There is no significant relationship between product design and sales growth.
1.7 Scope of the Study
The general scope of this study covers
Product Planning and Organizational Performance. The geographical scope
is Rivers State of Nigeria. The units of analysis covers randomly
selected telecommunication firms.
1.8 Significance of study
The study will be helpful to various
stakeholders in telecommunication industry who are interested to the
long-term strategies for profitability namely shareholders, investors
and creditors in such a way that they should be able to realize the
potentials and scope for the business growth in local telecommunication.
The study has provided recommendations to be considered by
telecommunication industry to improve their products development. The
study will justify whether product planning is influence Organizational
performance and whether telecommunication should take critical
consideration. Lastly the research helped the researcher to increase her
knowledge and be able to apply and compare theoretical aspects with
practices done in banks.
1.9 Limitations of the Study:
These arethe problems encountered by the researcher in the course of generating data for this project and they are;
(i) Secrecy of Respondents:
The high rate of secrecy manifested by respondents in releasing of
information as concerns the operations of the organizations contributed
to the limitations of this study.
Ignorance manifested it self in this study, it was most disappointing
that even graduates who occupied responsible posts were among the
respondents that needed a lot of persuasions before they agree to
complete the questionnaires, others needed a lot of persuasions before
they agree to complete the questionnaires. Some misplaced theirs which
the researcher had to call several times at some for the collection of
the completed and had to be rejected.
(iii) Bureaucratic Red Tape:
The researcher was made to call several times at the offices of the
personnel manager and company secretary for the necessary permission. It
was not an easy task for the researcher to set what was really needed
for the work. But with the help of some staff of the company, the
researcher was able to obtain the necessary information.
(iv) Finance: Finance
constraint was another problem faced by the researcher in the course of
the study. As a result of the poor state of the economy, costs of
almost everything especially transport had increased drastically. This
made the researcher encounter heavy financial difficulties as a result
of insufficient fund to meet the high cost of stationary and printing of
The time frame within which this work was allowed was quite limited for
an intensive as well as extensive work to be accomplished and so forms a
constraint on the work.
1.10 Definition of Terms
Product planning: The process of coming up with a business idea for a manufactured good, preparing the good for production and then introducing it to the market. Product planning involves managing the product'smanufacture and development by selecting marketing and distribution approaches, makingmodifications, setting and changing prices, and offering promotions.
Organizational performance: Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).
Consumer needs:Problems that customers intend to solve with the purchase of a good or service.
Product design: Product design as a verb is the process of creating a new product to be sold by a business to its customers
Profitability: Profitability is the ability of a business to earn a profit.