ADVERTISING AND MARKETING PERFORMANCE OF SELECTED DETERGENT COMPANIES IN PORT HARCOURT
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CHAPTER ONE
INTRODUCTION
1.1 Background Of The Study
Sheldon, (2002) defined a banking business as to receive money from customers and to collect instruments representing money from customer on the understanding that the money will be refunded or collected either on demand or at some definite date agreed upon between union and his customers. From the above, the core activity of a bank is funds intermediation which entails mobilizing funds from surplus spending unit and channeling such funds to the deficit unit. This activity facilitates capital formation which generates growth and development in the economy. How Nigeria banks have fared along the lines of the above function has been an issue of unresolved debates in the banking domain, as their effectiveness has been consistently criticized. Perhaps the fallout of this argument led to the banking sector reforms.
The current banking sector reforms in Nigeria was designed to promote the viability, sound stability of the system to enable it meet the aspiration of the economy in term of accelerated growth and development (Nwachukwu and Peterson,2007) for bank in the industry to acquire effectiveness within the sector, banks must compete vigorously using their competitive strategies. One such competitive strategy would be thedevelopment of superior brand identity, brand image and brand personality. These marketing concepts areusually noted as a prerequisite for achieving sustainable competitive advantage.Given these trends after the bank consolidation, marketing strategy has become a fundamental tool inthe banking sector.
Indeed, both the application of marketing concepts to the banking firms and theunderstanding of customer behavior have been subjects many research works in many decade ago (German andHunt, 2003; Jessica and Pius 2008; and Kotler et al 2006). Banking industry have aggressively pursued variousmarketing strategies to enable firms succeed, a good example of such are market segmentation (Harvey 2000cited in Denmasks, 2010; Nichols 2001 cited Nubam 2008), relationship marketing and database marketing(Amett et al 2003) and other marketing activities that will enhance performance.
Brand identity is the visual aspect that forms part of the overall brand (Koneonit, 2002).However, brand identity is seen as what the owner want to communicate to its potential consumers. Leclere and
Schmitt (2007) submitted that consumers brand knowledge consist of two measures, brand awareness and brandimage. Brand awareness refers to the strength a brand’s present in the consumer’s mind. Aaker (2006) thereforedefines brand awareness as the ability of a certain product category. Brand image increases the produce inmarketing efforts.
Although these strategic issues in marketing are important to the banking sector researchers andpractitioners, the understanding of the unique nature of how these strategies enhance performance need to beexplicated. Several studies in relationship marketing and many in branding has focused on brand equity, brandpersonality and brand image. This study departs from previous research in that we are looking at using brandidentity as a specific strategy to differentiate our service from other of our competitors. Our examination ofbrand identity in the banking context aims to extend prior research on brand identity and firm performance(Jackson and Smith 2006; Manson et al 2008; and Mubok 2010).
1.2 Statement of Problem
There is no gainsaying that the present economy deserves a sound, stable and better banking performancefollowing the causative factors, such as unethical and unprofessional practices, poor management quality among others which contributed to low level of bank performance and sometimes lead to failure of bank.
The major problem in the Nigeria banking industry is that bank services are still lacking in so many spheres in Nigeria, yet the banks perception of marketing has not shifted from mere advertising until recently as a result of stiff competition brought about by reforms. This crisis demonstrated in no unmistakable terms that “even strong economies, lacking transparent control, responsible corporate boards and shareholder right can collapse quite quickly as investor’s confidence collapse”. The alarming rate of corporate failures as witnessed globally has necessitated this study apparently; the failures have known no boundary as it cuts across both the very big organizations and the very small corporate entities especially financial industries. In a nutshell, the present study is designed to investigate the Bank’s management ability, capability and performance. It also reviews the interventionist role played by corporate governance to bank performance.
1.3 Purpose of the Study
The general purpose is to examine the effect of Brand Identity and Marketing Performance Empirical Evidence from Quoted Commercial Banks in Nigeria while the specific objectives are:
- To determine the extent to which Product Design influence Marketing Performance from Quoted Commercial Banks in Nigeria
2 To ascertain extent to which Brand Image influences Marketing Performance from Quoted Commercial Banks in Nigeria
3 To ascertain extent to which brand awareness influences Marketing Performance from Quoted Commercial Banks in Nigeria.
1.4 Research Questions
From the above specific objectives, the following research questions are formulated:
- To what extent does Product Design influence Marketing Performance from Quoted Commercial Banks in Nigeria?
2 To what extent does Brand Image affect Marketing Performance from Quoted Commercial Banks in Nigeria?
3 To what extent doesbrand awareness affect Marketing Performance from Quoted Commercial Banks in Nigeria?
1.6 Research Hypotheses
The following null hypotheses are formulated from the above specific objectives:
H01: There is no significant relationship between Product Design andMarket Share from Quoted Commercial Banks in Nigeria.
H02: There is no significant relationship between Brand Imageand Sales Volume from Quoted Commercial Banks in Nigeria.
H03: There is no significant relationship between Brand Awareness and profitability from Quoted Commercial Banks in Nigeria.
1.7 Significance of study
The study will be helpful to various stakeholders in Quoted Commercial banks 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 Quoted Commercial banks. The study has provided recommendations to be considered by Quoted Commercial banks to improve on their service.
Therefore this study will add new knowledge to bankers in Nigerian regarding the extra value banks can earn through implementation of product Identity.
This study will be of benefits and interest not only to banks in Nigeria, but it will be valuable to other service sectors in Nigeria as a whole. The study will also be a source of secondary data to other researchers who wish to conduct studies on related issues. It will
again act as mainstream for generating, keeping and maintaining customers.This study is important for customers, employees, banks, academia and even government. Customers will have access to better and qualitative services from the banks. Employees can also have improved conditions of service due to better organizational performance. Banks can gain in terms of superior performance. The research can also benefit the academia in terms of addition to knowledge.
1.8 Scope of the Study
The study will only concentrate three (3) selected quoted Banks.The selected quoted Banks under study are: First Bank of Nigeria PLC (FBN); United Bank for Africa PLC (UBA) and Zenith Bank PLC.
1.9Limitations of the Study
The success of this study depends to a very large extent on both qualitative and quantitative factors.
Financial constraints: Data gathering and analysis involve financial expenses thus, the extent to which information is acquired depends on the available funds at the disposal of the researcher.
1.10 Definition of Terms
Brand Identity: According to Janonis et al. (2007), Brand identity includes everything that makes the brand meaningful and unique.
Brand awareness is how easily consumers can recognize a brand or the identity of a company and/or product.
Marketing performance: refers to the improvement of the organizational status in the market (market share), improvement of the customers’ perception of organization and its products, and increase in their loyalty toward organization
Sales growth: The increase in sales over a specific period of time, often but not necessarily annually.
Profitability: is the ability of a business to earn a profit. Business environment throws dynamic challenges in the form of ever-growing competition. Product and brand extensions pose a challenge in terms of getting customer attention. Marketing metrics become a serious concern for marketers, who apply a variety of tools to overcome the competition. Advertisement is a vital tool used by marketers to sell their products or services. Advertisement reaches consumers through their TV sets, computers, radios, newspapers, magazines, mailboxes and more.
The usage of advertisement as a measure to build long-term competitive edge gains momentum in twentieth and twenty-first century only. Economists of the nineteenth century and before hardly paid any attention to advertisement. It so happens since the attention of the economists of nineteenth century was devoted largely towards the theory of perfect competition, which hardly sees any role for advertisement (Bagwell, Ramey and Spulber, 2007). Advertisement is regarded as being persuasive, informative and complementary with the advertised product (Bagwell, Ramey and Spulber, 2007). American Marketing Association defines advertisement as any paid form, non-personal presentation of ideas, products and services by an identified sponsor. Similarly, Advertisement is any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor (Alexander, 1965). Burnett (2008) also views advertisement as a tool of non-personal communication aimed at disbursing marketing related information to a target audience, usually paid for by the advertiser and delivered through mass media in order to achieve the specific objectives of the sponsor Historically, the research work studying advertisement has focused largely on sales and profit response of marketing actions. The foremost function of advertisement has been seen in terms of increasing sales revenue. Thinkers find that advertisement helps in generating sales both in short-run and long-run (Dekimpe and Hanssens, 1995; Lee et al, 1996; Leong et al, 1996; Leach and Reekie, 1996).
Advertising attracts the attention of the consuming public. Most often, firms in various industries try to stimulate sales through the manipulations of consumers psychological, emotional and economic rate of mind through the means of advertising this often happens when there is an intense competition in the business line, manufacturers or producers find a pressing need for promotional or advertising activities.
Advertising in other words called communication mix is used in promoting a product both new and old that is communicating the consumers in the use and purpose of the new product, including the need for it. Since the purpose of advertising is to change customers attitude or patterns of behavior toward a product or service in a direction favourable to the advertise as well as increasing the sales volume. It is pertinent therefore, for firms to embark on descriptive informative advertisement attract attention to the existence of a new product and motivating the public to buy a trial supply or perhaps accept a free sample may be rendering a desirable service advertising as an exercise in information persuasion and communication is related because to inform is to persuade and a person who is persuaded is also informed, and persuasion and information become effective through some form of communication, therefore advertising, promotion is the design and management of a marketing subsystem for the purpose of informing and persuading present and potential customers. Moreover, when a new product is introduced in the market, an initial risk to take buyers aware of it’s value and and existence. The role of information in promotion, however, is too restricted to new product because buyers differ in stage of their relationship with a product. Even products that have been in the market for years still need information support.
It’s also needed during periods of shortages, promotion in this period could take the form of structural information, emphasizing on product conservation or an instructional programme to help consumers with product. It can also be very useful to stimulate sales when the company is having very low sales. Obviously, the basic objective underlying all advertising on the part of the production in an increase of sales volume brought about the advertisement. This aim may be further, subdivided in terms of dimension and by devising strategies aimed at achieving either short or long term gains however, both aims will be achieved, but the immediate objective until condition the strategy and the promotional tools employed.
By and large use can infer that the motive of advertising is not to write great literature but to present the prettiest picture or to entertain the audience through some or all of these elements are often present in advertising. Advertising is first and for most a sales tool and we must never lose sight of that fact.
Again advertising is also a major stimulant to vigorous economic growth and stability. Advertising promotes a more efficient use of the natural resources, it is a key linking the marketing process, the aim of which to produce what the market needs and can absorb.
Having dealt extensively with the concept of advertising, we can now look into the impact of advertising. So once it has been determined that a key problem or opportunity for the brand / product involves it’s communication with consumers, thus, an integral part of the advertising planning and decision making process is an assessment of the role that advertising is meant to play.
As in the part of communication mix, once this perspective has been gained the brand manager must design a marketing and communication plan with the different elements complement and each other increasing the sales of the brand. Advertising as a communication tool and in most cases, is advantageous to set objectives and measures the result in terms of intervening variables like brand awareness, brand image, or attitude. However, these communication tasks are ultimately expected to create a behavioural response to the market place.
Also, advertising as a sales tool has acquire a wide range of acceptance as a functional form of promoting sales. Firms, therefore, should adopt it so as to enable properly set an objective selection of tools, effectives implementation and channeling of resources as well as profit maximization through increased sales.
According to Adirika, Ebue and Nnokim (2006) advertising is a powerful marketing communication tool used by companies to fulfill the promotional tool. It is an impersonal form of communication or presentation of goods, ideas, or services conducted through paid media under open or identified sponsorship. Everything about advertising is a sponsor sending a message, called advertisement, through one mass media (radio, television, newspaper, magazines) to reach large numbers of potential use of buyers of product. By itself, advertising is a vital marketing tool that helps to sell goods, services, images and ideas through information and persuasion. Many companies consider advertising a superior promotional tool to personal selling, sales promotion or publicity. This is because advertising provides multiple presentation to masses of people with one message, compared with personal selling that involves individual contact with each prospect. Sales promotion frequently requires individual contact also, publicity may provide multiple simultaneous presentation like advertising, but the firm has limited control on the message content and placement. While advertising is given such a credit, it is crucial to our understanding, therefore, that we appreciate from the start the real place of advertising in marketing, the best advertisement cannot sell a product that they feel are of poor quality, too expensive or below expectations. As a matter of fact, the best way to kill a bud product is to advertise if. Advertising on it’s own rarely sell promotion mix variables, and the other marketing concerns including product development and research. Most advertisement are designed to make both personal selling and sales promotion easier by informing, persuading reminding, reassembling, reinforcing and establishing positive attitude and images towards product and a company. Simply bet advertising enhances the potential customers responses to the company’s activities. as a tool of marketing, advertising therefore can defined as “Any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor” (American marketing association).
1.2 Statement of the Problem
According to Kotler and Armstrong (2005) advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
Most business establishments generally cherish competition especially when it is healthy and worthwhile. Competition also thrives well in a mixed economy as a Nigeria where the tents of capitalism provides for free enterprise activities. In a pure Nigerian competitive market situation like the one that exists here in the market with Port Harcourt as a case study, a marketing manager often faced with the problem of how to determine the demand for his product in a particular market segment and also the issue of finding out and separating those that are inconsistent in the demand pattern of his product Agu, C. A. Nnamani, C. J. Ejike (1998).
Looking at the growth trend of the detergent, market, facts portray that competition will continually grow. Therefore, makers of OMO blue detergent need to have an edge over it’s competitors. This can be achieved through research by designing suitable balanced strategies to out with competitors and also to determine the strength of the promotional mix for purpose of stimulating demand of it’s own product brand.
1.3 Purpose of the Study
The purpose of this study is to examine the Impact of advertising and the marketing performance of detergent of elephant extra of PZ industry in Port Harcourt. The specific study objectives are:
- Examine the association between Social Media in detergent manufacturing companies in Port Harcourt.
- Examine the relationship between Email in detergent manufacturing companies in Port Harcourt.
- Examine the relationship between online Communication in detergent manufacturing companies in Port Harcourt.
1.4 Research Questions
The following research questions are posed to guide this study.
- To what extent does Social Media affect detergent manufacturing companies in Port Harcourt?
- To what extent does Email affects detergent manufacturing companies in Port Harcourt?
- To what extent does online Communication in detergent manufacturing companies in Port Harcourt?
1.5 Research Hypothesis
The under listed hypothesis have been formulated for the study.
Ha1: There is a significant relationship between Social Media and Market share
Ha2: There is a significant relationship between Social Media and Sales Volume.
Ha3: There is a significant relationship between Email and Market Share
Ha4: There is a significant relationship between Email and Sales Volume
Ha5: There is a significant relationship between Online Communication and Market Share
Ha6: There is a significant relationship between Online Communication and Sales Volume.
1.7 Significance of the Study
This study will also be valuable to marketing students who may as advertising executives so as to know how to channel the company’s strategies for effectives and efficient advertising delivery and customers retention. It will be beneficial to customers who will learn from what to expect from a detergent product. It will enable the company know that effectives advertising expose the brands name and the brands message to the identified target audience at the right time and through the right media. The data collected will be used to improve advertising process. Above all, this study will be of a great advantage of both the researcher and reader as the study provide an indepth knowledge and understanding in areas which could stir up further study.
1.8 Scope of the Study
This study intends to cover large production orientation on manufacturing industries in Rivers State, especially on the promotion of detergent product with regards to PZ industry, the scope of this study tends to concentrate of elephant extra detergent and also to analyze the effect of promotion on the buying behavior of consumer.
1.9 Limitation of the Study
The major problem of administrating the questionnaire is lack of proper understanding on the part of the respondents on the use and need of such questions. Problems were also encountered in the areas of non-availability of secondary data from PZ industry and the explanation for non availability of such data was that it would violate the company business policy. It look the researcher quite a reasonable time before PZ could provide the needed secondary data that were used.
1.10 Definition Of Terms
The following terminologies used in this study are hereby defined for easy understanding and general comprehension of the study or of the whole work.
IMPACT: This is an affect on the mind of the consumer, it’s also mean the satisfaction that consumer achieved.
ADVERTISING: This refers to a non-personal form of mass communication, presentation and promotion of goods, ideas, goods and services by an identified sponsor through the means of using different media such as television, radio, newspaper, magazine etc.
MARKETING: According to Kotler (2004) marketing is the social and managerial process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging product and service of value with others.
STRATEGY: A strategy is a pattern of actions and resources allocation designed to achieve the goals and purposely coordinate organizational moves in it’s markers.
CONSUMER: Consumer is a person who buy product, or use product or goods and all these mention was satisfied by the user.
DETERGENT: This refers to a sustain that removes dirt and stain from cloths.
BRAND LOYALTY: Brand loyalty deals with the preference of customers in buying a particular brand over and over.
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