CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
In the past years, the main aim of business organization was to Manufacture and sell, but recent marketing dynamic has change this my topic notion of our poor industrialists with finding out what consumers want and buy, as only then will there be certainty that the product can be sold profitability and also offer return on investment. Previously, product departments produce what they want for marketing department, but now marketing department request for what consumers want from the company thus indicating what is to be produced.
Marketing has been defined by different authors in several ways, while Kotler, p (1984) &Bolt D.W (1987) see it as an attempt but a manufacturer of goodsprovider of services, or its agent to present a product or service in a manner that will be acceptable to its numerous customers both prospective existing ones, Henry, H (1986) & Foster, D (1982) view it as the execution of those business function that direct flow of goods and services the producer to the consumer. To achieve this, the market adopts the product planning, pricing, promotion and place of marketing in a way that the product would be developed to satisfy the need of their consumers.
Appreciating these needs, marketing also provides products defined to satisfy them either in unit or in-group. As a result, consumers are faced with taking a decision on what product best suit their need. Realizing the problem of consumers, marketing managers with help of research and development, design information system and program which guides the consumers in analyzing each product and take appropriate decision on which product to purchase.
1.2 STATEMENT OF PROBLEM
It has been discovered that in-spite of efforts, human and materials put into conception and development of a product, they were still not visible on shelves and shop stands.
I this regard, the following questions come to mind of what use is good product if the questions to be answered are: after all efforts by the manufacturer in producing it acceptably, fixing a competitive price, backed up with promotion and advertising, when the product is not getting to the consumers as a result of inappropriate marketing channel I the consumers search for the product a result of ineffective management of channel mix the marketing managers?
Why are these products missing on shelves? If these are competitive product what advantages has it over the missing product on display? If it is distribution advantages, what procedure was used in channel selection for the product that is missing on shelves? What channel lines is adopted for the product? Who is responsible for the channel management and how efficient is the channel mix? How often does he evaluate the channels to monitor the performance? What alternative are available?
Answer must be sought for these questions, and related issues researched, re-assessed and address accordingly to achieve an effectives market share development for a product in the physical distribution of the product of manufacturing company.
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is to study the effect of distribution channel on effective Market share development in enhancing organisation performance for a product. More specifically,the study aims at;
i. Identifying the problem associated with channel selection and distribution of products
ii. Ascertaining the scope and importance of distribution channel as it relates to marketing mix
iii. Identifying the distribution channels of products in Lisabi Mills
iv. Analyzing the effectiveness of the channels in product delivery to consumer
v. Making recommendations/suggestions based on research finding for effective development of products market share.