CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Of all business activities or functions, none is as interested in the consumer and his purchasing behaviour as marketing. Marketing is invariably connected with the research into consumers purchasing behaviour; namely what the consumer want, need, prefer and value, who are the prospective consumers and where they live their income and mode of spending, how and why they make purchase decision and so on. Infact the influencing of the buyer behaviour is the primary task of the marketing department in any organisation.

Equally, marketing tries to define the right type of product in terms of the company’s objective and attempts to make it available at the right place and at the right price, with the right promotions. This performance of marketing functions involves basically marrying consumer wants and with the appropriate products and services. It is the duty of the firm to adopt appropriate marketing strategy to attract customers to its products. This is important because in a free market economy, the ultimate judge of the firm performance is the consumer.

Consumer purchasing behaviour will determine the fate of the enterprise, this behaviour can best be described by a marketing manager who can also tell how he will be influenced by market variables such as price, promotion, product (variation and distribution) and place.

Marketing strategy depicts the overall company program for selecting a particular market segment and then satisfying it’s consumers through careful use of elements of the marketing, mix product, price, place (distribution) and promotion. Effective marketing requires decision that successfully integrates a forms marketing program towards satisfying the consumer whose act in obtaining and using goods and services, including his decision process that precede and determine those acts are highly affected by the strategy adopted by the marketing manager in marketing the firm’s products. 

Since the performance of marketing function involves basically marrying consumer needs and wants with the appropriate products and services and since it is generally believed that marketing begins and ends with the consumer, this project therefore attempt to examine how the use of marketing strategies have generated sales for Guinness Nigeria Plc following it’s impact on consumer, purchasing behaviours. Efforts are therefore made to show the relationship between sales turnover and amount spent on marketing activities and it’s resultant impact on consumer purchasing behaviour. We shall also concentrate on establishing how consumer purchasing behaviour is influenced by a forms strategy for accomplishing marketing objectives and plans. We shall pay special attention to Guinness Nigeria Plc.

1.2    STATEMENT OF THE PROBLEMS     

This is considered as the first major step and of great importance in carrying out research. Here the researcher attempts to define or describe the research problems.

The primary objective of most enterprise is to make profit. This is because profit ensures growth, survival and continuity in business. Many companies like Guinness Nigeria Plc recognizes this fact but many enterprises still fail to realise that the achievement of this goals depends on their ability to satisfy the need of marketing strategies, besides a primary task of marketing is to influence the buyers.

This study will therefore examine the following problems.

a.   The marketing strategies used by Guinness Nigeria Plc.

b.   The extent these strategies are used in this company in generating sales.

c.   Essentially the impact of these strategies on the consumers will be assessed by finding out hoe they are propelled into buying the company’s products.

1.3    OBJECTIVES OF THE STUDY  

The objective of this study is to investigate and identify the marketing strategies employed by Guinness Nigeria Plc, Benin City. We shall look at the various elements of marketing strategy and determine how this company uses them to identify and retain customers and how this firm used to find out how to compete favourable in the industry and make profit.

This research will also try to determine the marketing strategy used in Guinness Nigeria Plc Benin City in its operations, the attainment of corporate/marketing goals and move emphatically consumers of Guinness products.

Further, will still try to identify the major problems associated with the implementation and use of the marketing strategy in this company. We shall suggest possible solutions, which might help eliminate or reduce these problems.

This study is also aimed at bridging the gap between classroom theory and the realistic of industrial practice, particularly in the area of marketing and consumer purchasing behaviour. In this vain, it is hoped that this little effort will stimulate the interest of other students, professional managers and marketing policy makers to pay attention to research in the relationship between marketing strategies and consumer purchasing behaviour. It will in no doubt leave the consumer and producer’s interest harmonized.

1.4    RESEARCH QUESTIONS             

This research work tends to proved answer to the following research questions.

a.   What are the strategy used by Guinness Nigeria Plc to influence consumers buying behaviour?

b.   How does this company identify the factors influencing consumers buying behaviour?

c.   What are the problems associated with the implementation and use of these strategies in this company?

1.5    SCOPE OF THE STUDY

Realizing the financial and time constraint that are involved in this type of study, it becomes necessary to limit the scope of the study to one hundred and fifty consumers within Benin City and to one company.

Using one company will limit and reduce the necessary for comparative analysis. The elements in a marketing strategy are common to all the firms hence we shall place emphasis on the marketing mix, i.e. product, price, promotion and place. This will help us see how they relate to each other and combine to influence the buyers of Guinness products.

Equally, the concept of consumers purchasing behaviour shall be analysed based on the data collected from consumers of Guinness products within Benin City to see its place in the market.

1.6    LIMITATION OF THE STUDY    

Certain factors constitute limitations to this study, paramount among them are time and financial constraints.

Due to the short academic session, the researcher didn’t have enough time to cover all possible and existing literatures pertaining to the research. And the economy of the nation did not help matters since the research didn’t have enough money to cover the research.

Another limitation to the study was the reluctance of the company to give certain information because they believe it will expose them to their competitors.

1.7    SIGNIFICANCE OF THE STUDY  

The fact that implementation of effective marketing strategy creates satisfaction for both the procedures and consumers, it can be stated that in Nigeria today, there is the need to improve on market orientation among organisations. Companies should realise the importance of strategies planning in the provision of goods and services to ensure guaranteed profits.

Good strategies means lower cost and so lower price and consumers are induced to repeat purchase. This way the producers realise their aims and objectives and consumer gets needed goods and services at affordable prices. It is therefore towards this state of affairs that this research work is oriented.

This research work is also undertaken in the hope that it’s finding will enable marketing people to understanding, adopt and apply knowledge of consumers purchasing behaviour in tackling their marketing problems.

Again it is hoped that the study and the recommendations that will be made, will be of benefit to the Guinness marketing department in particular and the entire industry as a whole. It will contribute to determining the strategic requirements for effective marketing and would enable firms serve their customers more effectively and efficiently. It the research achieve this, it will be a worthwhile contribution to the integration of function specialism that is essential in the business world today.

1.8    OPERATIONAL DEFINITION OF TERMS     

Marketing: As a total system of business activities designed to plan, price, promote and distribute want satisfying goods and services to consumers.

Strategy: Is the means, schemes and methods designed by an organisation for operationalizing policies and pursuing its objectives.

Marketing Strategy: A general terms used to described the overall company programme for selecting a particular market segment and then satisfying it’s consumers through careful use of the target market.

Target market: Is a group of consumers which the company wishes to sell its goods and services to i.e. products.

Consumer purchasing behaviour: Is the acts of individuals in obtained and using goods and services, including the decision process that precede and determine these acts.

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