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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 products 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 the 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 decisions that
successfully integrate 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 functions 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 its 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 PROBLEM
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 problem.The primary objective of most business
enterprises is to make profit. This is because profit ensures growth, survival
and continuity in business. Many companies like Guinness Nig. Plc recognizes
this fact but much enterprise still fail to realize that the achievement of
this goal depends on their ability to satisfy the needs 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
Nig. 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 how they are propelled into buying
the company’s products.
1.3 OBJECTIVE OF THE STUDY
The main objective of this study is the role of marketing strategy in determining consumer. But for the successful completion of the study; the researcher intends to achieve the following sub-objectives;
1. To determinemarketing strategy and how Guinness Nigeria Plc, Benin City uses them to identify and retain customers
2. To find out how Guinness Nigeria Plc, Benin Cityuses the strategy to make profit.
3. To identify the major problems associated with the implementation and use of the marketing strategy in this company.
4. To ascertain the relationship between marketing strategy and consumer purchasing behavior
1.4 RESEARCH HYPOTHESES
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0:there are noproblems associated with the implementation and use of the marketing strategy in this company
H1: there areproblems associated with the implementation and use of the marketing strategy in this company
H02:there are no relationship between marketing strategy and consumer purchasing behavior
H2:there are relationship between marketing strategy and consumer purchasing behavior
1.5 SIGNIFICANCE OF THE STUDY
The fact that implementation of effective marketing strategies 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 organizations. Companies should realize the importance of strategic planning in the provision of goods and services to ensure guaranteed profits. Good strategies means lower cost and so lower prices and consumers are induced to repeat purchase. This way the producers realize 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, adapt and apply knowledge of consumers purchasing behaviour in tackling their marketing problems.Again it is hoped that the study and the recommendation 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. If the research achieves this, it will be a worthwhile contribution to the integration of functional specialism (marketing) that is essential in the business world today.
1.6 SCOPE AND LIMITATION 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
necessity 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 analyzed based on the data collected from consumers of
Guinness products within Benin City to see its place in the market.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
researcher 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. In addition some of the respondents were
unco-operative and unwilling to take the questionnaire or accept interview
appointments from the researcher. These were also the problem of some
respondents not returning their questionnaires, having lost them or misplaced
them.
1.7
DEFINITION OF RELEVANT TERMS
There are probably as many definition of marketing terms as there are textbooks
and it is very difficult in real life to come up with a comprehensive
definition of any term particularly in the social sciences that can withstand a
total universal acceptance, it is therefore plausible to establish operation or
functional definition for the key concepts or terms used in this study.
MARKETING DEFINED
Kotler defined marketing as human activities directed at satisfying needs and wants through an exchange process.Stanton defined marketing as a total system of business activities designed to plan, price, promote and distribute want satisfying goods and services to consumers.Kotler further saw marketing as looking at business through the consumer’s eyes and satisfying his needs at a profit.Marketing can also be seen as the process in a society by which the demand structure for economic goods and services is anticipated, or enlarged and satisfied through the conception, promotion, exchange and physical distribution of such goods and services.
STRATEGY
This term borrowed from the military refers to the systematic approach a
commanding officer charged with a military action wishes to employ in
discharging his responsibility.Osaze defined strategy as the means, schemes and
methods designed by an organization for operational singpolicies and pursuing
its objectives. Appleby also saw strategy as the behaviour of management in
trying to achieve success for a company’s goal in environment.
MARKETING STRATEGY
Kotler
defined marketing strategy as the broad principle by which the business unit
expects to achieve its marketing objectives in a target market.Cunfiff et al
(1973) observed that a company’s marketing strategy is basically its completive
positive in the market place.
Marketing strategy can also be defined as the general terms used to describe
the overall company programme for selecting a particular market segment and
then satisfying it’s consumers through careful use of the elements of the
marketing mix.
i) The Marketing mix: Is that combination of product features, accompanying services, price decisions, promotional tools and place for the distribution of these products in reaching, serving and appealing to the target market.
ii) The Target Market: This is that group of consumers which the company wishes to sell its products.
CONSUMER PURCHASING
BEHAVIOUR
This is defined as the acts of individuals in obtaining and using goods and
services, including the decision process that precede and determine these acts.
PRODUCT
A product can be defined as anything that can be offered to someone to satisfy
a need or want.
Product for the purpose of this study refers to anything Guinness Nigeria Plc,
has to offer for want or need satisfaction, which include Guinness Stout, Harp,
etc.
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study
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