CHAPTER ONE 1.1       BACKGROUND OF THE STUDY             If we have to choose one essential characteristics of what we call the new bankingenvironment that characteristics would be operated. Unit fairly recent executives operated    with the assumption that the enjoyed limitless resources and plenty of time to build profitable enterprise today finite resources new technology accelerated change andlicensing of new banks are placing unprecedented pressure on every organization. Only those leaders who learn to anticipate an even invent the future will profit from rather thanbe surprised by damage.             The one answer therefore, to stopping in power and reminting competitive is in product innovation and management, essentially, product innovation and management hasfocused on two respects. Firstly, maintaining a fair show previously dominated by them as attracted other operations competing aggressively fort this share of the financial pic and secondly, is increasing the profitability of their operations as   a whole.             Banks are beginning of appreciate that every contract with their customer is important (Ownlah 1989). In production innovation and management there are certain things which has bank must bearmind.             There are three co-confidence convenience and costs. Confidence strictly speaking is that cornerstone of finance and the banking sector for it to survive.             Secondly is (convenience) this enable the commercial banks to have direct relationship with the customers and the only way its contact them is to bring the financial products to their door step.             Thirdly, is the cost, it is essential commercial banks weigh through the cost involved in their transaction in this high, through prudence should be exercised.             Finally, the study has been born out of the desire to examine the relevant of product innovation and management in Nigeria commercial bank of Nigeria Plc. 1.2       STATEMENT OF THE RESEARCH PROBLEM             There is no doubt that much awaits the innovative bank whose intent is searching widely for new product ideas and evaluating these on a systematic basis. But success will not flow from installation and caging procedures along.             In Nigeria political economic and social trials have tremendous impact on banking operation. Political development catalyzed economic development in baking for example, the political power acquired by the region under the regional constitution that enable the eastern and western regions in 1954 reduce three oldest established indigenous banks national bank of Nigeria, the continental bank and the wema bank for collapsing following banking boom and crash of the 1950s. Political decision also competitive environment through computerization product such as debt factoring andequipment leasing in these circumstances the financial institution are moving away from the armchair to dynamic structure to woo customers and client and the result is bound to be improved services.             The problems therefore lie in the following penitent questions 1.      Who are your customers and what are the services rendered by the commercial banks? 2.      What methods are used to create awareness with the public? 3.      Can innovation in banking be uses as insurance against a decline ofinterest in the existing products/services? 4.      Can the expectation from banking as a “silent sale man” be realized? 5.      Can product differentiation be successfully used in a long term without leading t predictable reaction by competitions to either emulate or improve upon this preference offering? 1.3       OBJECTIVES OF THE STUDY            The following are objectives to this study 1.      Determine if the relationship between product innovation and commercial bank profitability? 2.      Determine to the impact of product innovation in the banking industry. 3.      Determine to the impact product innovate in the banking industry? 1.4       RESEARCH QUEESTIONS 1.      Does product innovation contribute to commercial bank profitability? 2.      Does product innovation result increase in customer patronage? 3.      What are the impact of product innovation in the banking industry? 1.5       RESEARCH HYPOTHESISHYPOTHESIS ONE: Ho: there is no significance relationship between product innovation and bank profitability. Hi: there is a significance relationship between product innovation and bank profitability HYPOTHESIS TWO Ho: there is no significance relationship between product innovation and customer’s patronage. Hi: there is a significance relationship between product innovation and customer’s patronage. HYPOTHESIS THREE Ho: product innovation has no impact on the growth of the Nigeriabanking industry. Ho: product innovation has impact on the growth of the Nigeria banking industry 1.6       SCOPE OF THE STUDY             The study is concerned with product innovation and management in Nigeria commercial bank of Nigeria Plc. The study will conducted in two branches of the bank located in Benin City.             The study will therefore be limited to the following areas what product innovate is about what is product modification product positioning, evaluation   of product strategy result and the importance of product innovation.  The sample size to which the questionnaire will be administration includes management staff and workers of the banks as product and marketing of those products/services and outside Aslomers and only selected from a larger population to ensure accuracy of information. 1.7       SIGNIFICANCE OF THE STUDY In a rapidly changing society such as ours which is competing increasing the quality of service in bank is of paramount important. The banking sector is in a state of reasonable rapid change.            There is the need therefore to probe into customer satisfaction and dissatisfaction and to suggest how these can be improved or minimized. This type of study is necessary because the perception of an individual plays on important role in his choice of commercial homogenous and proliferation of banking (products, also this study is expected be n significance t first bank of Nigeria Plc. Because it will give an insight into the needs t explicit certain marketing opportunities. To the customers the appreciation of the study by the bank will enable customer be well informed about the product. 1.8       ORGANIZATION OF THE STUDY This work product innovation and management in Nigeria commercial banks is a five chapter work. The chapter one of this work is the introductory background hypothesis etc. in order to have a theoretical framework the work also puttogetherliterature reviews comparing the opinions and definition made by other authors. This is contained in the chapter two of the work. The method by which the research gathered and analysis the information of the research which is termed as research methodology encompassed in chapter three of the work. The four of the work deals with the presentation and analysis of conclusion and recommendation about the subject. 1.9       DEFINITION OF TERMS 1.      Product: (Phillip Kote 1990) defined it as anything that can be offered to market for attention acquisition use or consumption that might satisfy a want or a need. 2.      Strategy: (Chart and Stapleton, 1983) defined it is as a plan sometime in outline only for reading. 3.      Service: (Kolter 190) defined it as impact of performance that are partly offer to another that is essentially intangible and does not result in the ownership of anything its production may or may not be led to a physical product. 4.      Marketing strategy: is the fundamental marketing activity by which the business firms intend to achieve its marketing objectives. A marketing strategy forms the care of a successful marketing. 5.      Marketing danger: (Louis and Adel, 1900) defined it as a set of independent organization involved in the process of marketing products or service available for use. 6.      Price: is the value placed on what is exchanged anything of value can be measured by a price. 7.      Sale promotion: an activity or material that act as a direct inducement offering added value or incentives for their product, sellers, sales person or customer. It is an activity that complement advertising personal setting and publicity. 8.      Product concept: product concept holds that customers will favour those goods that offer the most quickly performance and features. 9.      Promotion: promotions communication information between sellers and buyers and attitude. 10.  Brand loyalty: (Hart and Stephen, 1990) defined it as active support by consumers in continuing consumption of a particular or brand in face of competition but the other brands such loyalty often subjective or subconscious.