NEW PRODUCT DEVELOPMENT AS A STRATEGY FOR EFFICIENT MARKETING OF LIFE ASSURANCE PRODUCT IN NIGERIA
This research titled new product development in insurance industry as a strategy for efficient marketing for life assurance products in Nigeria was carried out with the objectives of identifying why marketing of life assurance product are low in Nigeria. Why many life assurance companies do not go into new product development and the prospects of new product development in life assurance industry. Related literatures were reviewed and structure questionnaire and oral interview were used to collected primary data from the respondent. The data collected were analyzed using likest-scale of ranking and the hypothesis were tested using Z-test statistic yaro Yamane method were used to determinant the sample size out of the total population. The work discovered that new product development increases market share, profit margin and also help in customer loyalty and new product development were necessitate by the changing demand from the insuring public and technology. The work recommended that among other that there should be also be a method by which the regulatory bodies in the life assurance industry regulates all these new product to make sure that their capital base can carry it. There should also be marketing of life assurance product.
TABLE OF CONTENTS
Title page i
Table of contents vi
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Research Question 5
1.5 Research Hypothesis 5
1.6 Significance of the Study 7
1.7 Scope and Limitation of their Study 7
1.8 Definition of Terms 8
REVIEW OF THE RELATED LITERATURE 12
2.1 An Overview 12
2.2 Historical Development of life Assurance in Nigeria 13
2.3 Development before Independence 15
2.4 Developing after Independence 16
2.5 The Meaning of New Product Development 17
2.6 Meaning of Strategy 18
2.7 Reasons for New Product Development as a
Strategy for Efficient Marketing of Life Assurance 19
2.8 Productions Life Cycle 20
2.9 Introduction Stage 21
2.10 Growth Stage 22
2.11 Maturity Stages 22
2.12 Decline Stage 22
2.13 Marketing Segmentation 23
2.14 Insurance Companies in Nigeria That Offer
Popular Life Assurance After Recapitalization 25
2.15 Prospect of New Product Development 27
2.16 Challenges facing New Product Development
in Life Assurance Industry 28
RESEARCH DESIGN AND METHODOLOGY 30
3.1 Source of Data 30
3.2 Sample Size Sample Techniques of the Study 33
3.3 Validity of the Instrument Used 36
3.4 Method of Analysis and Presentation 36
3.5 Decision Rule 37
DATA PRESENTATION AND ANALYSIS AN OVERVIEW 38
4.1 Data Presentation and analysis 38
4.2 Analysis of the distribution of respondent 39
4.3 Analysis of responses 41
4.4 Testing of Hypothesis 47
SUMMARY OF FINDING CONCLUSION AND RECOMMENDATIONS 60
5.1 Summary of findings 60
5.2 Recommendations 61
1.9 Background of the Study
The most important thing a company offer to its customer is its product. The product which marketing organization offer to customer, protend reason for its existence.
Thus, the relevance of can organization much depends on relevance of its product to the community. New product development of any corporation is always of great important to their performance and operation. It is also very important when they deal with the production of those goods that are the community or customer need or go into producing of those product that are not been seen in the hand of their competitors. In connection with life assurance as the product. Life assurance industry offer to their customer is security and confidence for financial protective in event contingent upon human life. These products they offer to their customer are intangible strategic planning is required in order to achieve high level of sales. There is always doubt whether their existing products a company’s product going.
Product has life cycle which entails the introduction stage (when the product is just new in the market) the growth stage (the stage when the sales of goods or products grow at an increasing rate).
The maturity stage (when the sales of products are in its apex level and the decline stages (sales decreased for the product which mare consequently lead to its abandonment).
Any company which depends only on existing product in the market can easily fall off from the market, if its products are not renewed. For a company or any industry to ensure continue existence in the market, the company must go into development of new product to sustain its existence in the market. Life assurance industry also engaged in the development of new products to sustain its existence in the market. Efficient marketing of the product designed to suit the demand of the customer were usually pursed.
1.10Statement of the Problem
The problem that leads to this study is how new product development will help in efficient market of life assurance products in Nigeria.
1) Determine the new product available for life assurance companies in Nigeria.
2) Determine the new product development will help in life assurance industry.
3) To know the effectiveness of life assurance product department.
4) Determine how important new product development is to the students and the general public.
1.11Objectives of the Study
The objectives of this study are:
1) To identify why the marketing of life assurance products’ is very low in Nigeria.
2) To know why many life assurance companies don’t develop New Products.
3) To know the prospects of new development in life assurance industry.
4) To make recommendation based on the finding to ensure efficient marketing of life assurance products in Nigeria.
1) Do middlemen in life assurance industry cause any problem in new product development of the industry?
2) Do education level in Nigeria affected the market ability of life assurance product in Nigeria?
3) What are the prospects expected in new product development in life assurance industry.
1) Ho: The image of the life assurance industry do not reduced the marketability of life assurance products.
Hi: The image of the life assurance industry reduces the marketability of life assurance products.
2) Ho: Low level of technology and changes is demand does not affect the development of new product in life assurance industry.
Hi: Low level of technology and changes is demand affect the development of new product in life assurance industry.
3) Ho: New product development increased profit margin markets share and customers retention in life assurance industry.
Hi: New product development does not increase profit margin markets share and customers retention in life assurance industry.
4) Ho: New product development increased profit margin markets share and customer retention in life assurance industry
Hi: New product development does not increase profit margin markets share and customer retention in life assurance industry.
1.14Significance of the Study
The study will be importance in many ways such as:
1) It will review some new product in the life assurance industry.
2) It will bring efficient marketing of life assurance product to their customer and the general public.
3) It will bring up life assurance industry to measure up with their competitors
4) This will help life assurance industry to satisfy the needs of their customers.
1.15Scope and Limitation of their Study
This study is limited to life assurance companies in Enugu metropolis. The limitation of the study were enormous ranging from pan citing of relevant information, and difficulty of having access to the executives of life assurance companies to obtain face to face information. Other constraints were time and money. The researcher struggled to go to classes, engaged assignments and also carry out this research work.
Finally, enough money was not available for the researcher to travel and to do some photocopies of relevant materials.
1.16Definition of Terms
It is the combination on announcing of a company’s product in the radio, television, market place etc.
This is the intermediary who handles the sales of insurance policies between the insurer and insured on commission deductible from premium aid by the policy holders.
A broker is a full time insurance specialist of professional standing and have technical knowledge of the relevant classes of insurance in handling all is insurance problem in return brokerage is being paid as commission.
This is the centralization of authority to subordinates in the hand offices.
It is the delegation of authority to subordinates in the branch offices.
This includes all the activities aimed at moving the product from the producers to the ultimate consumer getting the insurance policies to the ultimate consumer (policy holder).
This is a legal binding agreement or contract between two parties, the insured and the insurer by which the insurance aggress in consideration of money paid to him by the insured called premium to him on the happening certain events.
This is insurance company who covers risk and provides policy.
The party covered by the insurer against an uncertainty
They are services rendered by bankers, insurance etc you cannot see the goods.
This is a contract in which one party aggress to pay a given sum on the happening of a particular event contingent upon which the definition of human life in consideration of the immediate payment of a smaller sum or certain equivalent payment by another.
This is the management process responsible for identifying anticipating and satisfying customer’s requirement profitably. It involves all those set of activities that facilities exchange transaction of economic good and services.
This is the fundamental logic its marketing objectives
This is the consideration paid by the insurance to the insurer for the insurances coverage (ie) price of the insurance services.