MARKETING ASPECTS OF BUSINESS ACTIVITIES IN NIGERIA
A Study of Nigeria Bottling Company Plc Lagos, Nigeria
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CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Marketing consists of individual, business and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas. Marketing is generally interpreted today as including all those business activities concerned with the development, production and distribution of product to identifiable market, where they will provide satisfaction to those who buy them. Marketing activities therefore, covers product development, identifying the market and suitable method of selling, distribution, promotion, pricing and sales service facilities. Marketing has an advisory role in marketing management. It is used to acquire and analyze information and to make recommendations to management as to how marketing problems should be resolved.
The current globalization market has made businesses to see the internationalization of their activities as a way to remain competitive. Marketing has become important tool globally for any business to remain in competitive market environment and wax stronger.
Marketing activities starts with market research, in which needs and attitudes and competitors’ products are assessed and continues through into advertising, promotion, distribution and where applicable, customer servicing, packaging, sales and distribution. Marketing strategy must focus on delivering greater value to customers and the firm at a lower cost (Chiliya, 2009).
Owomoyela (2013) also see marketing activities as way of providing a quality product that satisfies customer needs, offering affordable price and engaging in wider distribution and back it up with effective promotion strategy. Marketing strategy is a vital prerequisite of industry’s ability to strengthen its market share and minimize the impact of the competition.
Marketing activities draws its strength from the overall corporate strategy. It may be defined as those marketing programmes and tactics designed to achieve the objectives of an organization. A marketing activity outlines the strategic direction and tactical plans that marketing teams must implement to support the company’s overall objectives (Ebitu, 2017). Marketing activities articulates the best uses of a business resources and tactics to achieve its marketing objectives. It states which opportunities are to be pursued by an organization, indicates the specific markets towards which activities are to be targeted, and identifies the types of competitive advantage that are to be developed and exploited.
The revolution in information technology (IT) and communications changed the way people conduct business today. In recent years, increasing numbers of businesses have been using the internet and other electronic media in their marketing efforts, giving the chance for electronic marketing (as a new marketing phenomena and philosophy to grow in a very dramatic and dynamic way. The internet and other electronic media are playing now a very important role in conducting marketing activities one to its unique characteristics as a market is seeking to add to the body of knowledge by investigating and understanding the practices and activities of business enterprises through conducting a research about the effect of implementing E-marketing.
Marketing plan should be based on what is known of the competitor’s strength and weakness, the physical characteristics of the battle ground, the friendly or hostile sentiment of those who occupied the territory, and of course, the nature of resources available to the organization (Stanton, 2012). In the business organization, there is safely no activity where the marketer must not therefore make the right decision about the four components of the marketing mix – price, product, place/distribution and promotion through the employment of marketing strategy. These key components must be coordinated and moved into a unified effective strategy if the product must perform well in the market (Kotler, 2007).
Marketing strategy has the fundamental goal of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic, short-term, and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the company and its marketing objectives.
Packaging has been also recognised as important marketing strategy that serves dual functions. It serves as protective device and promotional tool to glamorize product in order to attract the consumer’s attention. Sometimes packaging is so important that it cost more than the product itself in order to lure the consumers to buy it. Diana, (2005) believes that most consumers judge a product by its packaging before buying. So it is logical to say attractive packaging is crucial in order to get the first time buyers to buy your products. Packaging can also differentiate one brand of product from another brand. Because the product packaging can contain company names, logos and the colour scheme of the company, it helps consumers to identify the product as it sits among the competition’s products on store shelves. Packaging also plays an important role for portraying information about the product. Outside packaging may contain directions on how to use the product or make the product.
In addition to packaging, branding has also been recognized as marketing strategy that provides value to organization beyond physical assets. The American Marketing Association defines a brand as: a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and differentiate them from those of competitors (Kotler, 2003). A brand may have many other meanings depending on the role it plays, the value it has and more importantly, to whom it is related. To brand owners, a brand is mainly a differentiation device: the living memory and the future of its products. To brand users, a brand may create an emotional bond with them which turns the brand into an icon. In the most developed role, brands represent not only the products or services a company provides but the firm itself, the brand is the company and brands become a synonym of the company’s policy.
Moreover, researchers have realized that advertising, packaging and branding are the most important factors that influence business performance. Many researchers in marketing have recognized the critical roles of advertising, packaging and branding in customer’ buying behaviour. The three factors are particularly important in developing and maintaining a loyalty on the part of customers.
1.2 Statement of the Problems
The problem that emanated from marketing activities in most business organizations include the poor implementations of marketing research and poor attitude of most industrial players towards marketing research in their organizations couple with inadequate provision of fund for effective marketing research.
However, for some times, Nigerian Bottling Company has been experiencing poor sales of its products in the market place as a result of the followings;
– Unfavourable external business environment.
– Inability of the products to face other competing ones in the market place.
– Customers’ reaction against repeat purchase
As a result of these aforementioned problems the researcher intends to examine the impact of marketing strategy on organization performance in Nigerian Bottling Company Plc.
1.3 Purpose of the Study
The general objective of the research is to examine the marketing aspects of business activities in Nigeria while other specific objectives of the study include;
- Identify whether sales promotion increases the profitability of Nigerian Bottling Company.
- Determine whether the advertisement through media increases the sales and profitability of Nigerian Bottling Company.
- Ascertain whether the packaging strategy adopted by Nigerian Bottling Company has helped to increase the sales of its product.
- Examine whether branding strategy adopted by Nigerian Bottling Company have contributed to an increase in sales and profitability of its products.
1.4 Research Questions
The following research questions will guide the study:
- How does sales promotion increase the profitability of Nigerian Bottling Company?
- Does advertisement through media increases the sales and profitability of Nigerian Bottling Company?
- How does packaging strategy used by Nigerian Bottling Company increase the sales of its product?
- Does branding strategy adopted by Nigerian Bottling Company contributed to an increase in sales and profitability of its products?
1.5 Research Hypotheses
The following hypotheses will guide the study:
- H0: Sales promotion has no significant impact on profitability of an organization.
H1: Sales promotion has a significant impact on profitability of an organization.
- H0: Advertisement through media has no significant impact on sales and profitability of Nigerian Bottling Company.
H1: Advertisement through media has a significant impact on sales and profitability of Nigerian Bottling Company.
1.6 Significance of the Study
This study is carried out because it was intended to help in solving a problem(s), and if the problem is solved, it will benefit those who are affected by it.
It can be seen from the problems that organizations major difficulties are identified to be marketing strategies. It is then hoped that this study will help the Nigerian Bottling Company to adopt better marketing strategies that will improve the overall business performance of products and equally enable them to realize their business objectives as well as utilize all their opportunities.
In addition to this, the recommendations made would provide initial steps in major decision areas facing the company, such areas includes; decision on the determination of the present marketing strategies that can be used by organizations to improve the performance of its products in the market place, and also for vital expansion of business activities. In addition, the study will enable the readers to know that the success of a business depends on good marketing strategies that will promote good image for the company and as well increase their sales revenue.
It will also widen the marketer’s knowledge about the various marketing strategies available and how they can be effectively applied to any company’s products so as to improve the performance of their business. It will equally aid organizations immensely by providing them with the appropriate marketing strategies to be adopted in making high sales over.
Above all, the study will help other people such as businessmen, industrialists and so on to know the value of marketing strategies and how they can be effectively used to attract new market and also win more market share from the existing market.
1.7 Scope of the Study
The study examines marketing aspects of business activities in Nigeria and it covers the different marketing strategies with regard to the 4p’s for improved performance of business products with special emphasis to selected staff of Nigerian Bottling Company Plc in Lagos, Nigeria.
1.8 Limitation of the Study
There were many problems that might be encounter by the researcher during the course of carrying out this project, some of which are:
Respondents Apathy: Inadequate response experienced by the researcher from his respondents might pose a hindrance to getting the desired results.
Inadequate Finance: The shortage of funds also might affect the number of times the researcher would have visit the company situated in Lagos State.
Insufficient Time: The time expected to carry out this work might be too short, and as a result of other academic commitments, the researcher would have gone to different places to get more facts for the study.
1.9 Operational Definition of Terms
Marketing: This is a process of planning and executing the conception, pricing, promotion, distribution, ideas, goods and services to create exchange that will satisfy individual and organization objectives.
Marketing Research: It is the systematic and objective design, collection, presentation, analysis and interpretation of data (information) to enable managers deal with specific problems facing any organization.
Business activities: Business activities include any activity engaged in the primary purpose of making a profit. This is a general term that encompasses all the economic activities carried out by a company during the course of business.
Marketing Strategy: An organization’s marketing strategy combines all of its marketing goals into one comprehensive plan.
Organization Performance: Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).
Sales promotion: Sales promotion is any initiative undertaken by an organisation to promote an increase in sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of the marketing communications or promotions mix).
Packaging Strategies: Packaging Strategies identifies and analyzes packaging trends, package development, package innovation, insights and solutions for packagers.
Brand Strategy: Brand strategy is a long-term plan for the development of a successful brand in order to achieve specific goals.
Advertisement: Advertising is an audio or visual form of marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.
Sales: Sales focuses on selling prospects and growing revenue among current customers
Project Overview
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