CHAPTER ONE
BACKGROUND OF THE STUDY
1.1 INTRODUCTION
In the ancient times, there was no marketing because
individual tended to be self sufficient, growing and producing things that they
needed to satisfy their basic need. There was
therefore almost no exchange of
commodities and hence no desire for the market place. As time passes, however,
the concept of division of labour our evolved, people began to concentrate on
producing the items which they did not have. This brought about specialization
in the production system. Thus people began to exchange goods with goods, a
system known as trade by barter.
After this stage, comes the existence of a medium
for exchange called money. The introduction of money in business transaction
leads to more advanced and rapid exchange system. The introduction of money as
a suitable medium of exchange also led to the evolution of modern industries
which undertake high production of commodities, thereby improving the marketing
sector of the production system.
Exchange involves not merely a transfer of value
between the contracting parties but a positive gain in value arising from the
exchange, is greater than it was before the exchange takes place. The exchange
was largely saved on the production of the basic needs which usually ware
cleared to marketing.
With the growth of time which resulted to industrial
revolution, there was evolution of marketing, producers manufacturing their
goods in large quantities in anticipation of future demands. There and then,
marketing become the most important sector emphasized by all manufacturing
firms.
According to Philip Kotler, in his book, principle
of marketing practice, the forth edition inc.1980 page 15, defined marketing as
“A set off principle for choosing target market measuring their need,
developing want satisfying product and services and delivering them at a value
to the company. From the definition, marketing process is aimed at getting the
right goods to the company. From the definition, marketing process is aimed at
the right people in the right time.
This means that the activities designed to make
commodities available at either tine or places where they are more in demand at
times. In this present age charges, marketing is the heart beat or beating
heart of many business operation. A manufacture firm which has little or no
knowledge of marketing jeopardizing the probability achieving the primary
objective, which is profit maximization especially in this age where many firms
and product are having a strong competition with each other.
Marketing therefore is an integral part for
manufacturing organization to succeed. Marketing should be taken into
consideration especially with the use of marketing strategies by a firm facing
competition with each other firm.
Finally marketing is the most vital way of an
organization to make profit, without which an organization cannot achieve its
objectives which is maximize profit.
1.2 STATEMENT OF THE STUDY
The statement of this research study highlights
problems and challenges encounter by the organization in the present of
achieving the pre-determine objectives, which is profit –maximization through
increase in demand volume for the product produced.
During the course of this project, it was discovered
that the sales volume and the demand ratio for the company’s product
drastically reduced from 95% sales volume 87% sales volume.
Additional, it was also detected that the customer
base ratio also falls within the context of the selected geographically places
where the research study was conducted.
While the brand image or the goodwill of the company
and its recognition and public acceptance reduce all due to the impact of
competition in market.
The selling concept policy which is adopted by the
management of the organization goes a way in reducing the brand loyalty and
recognition from the customer, both from the actual consumer and other
prospective customer of the company’s product (INDOMIE INSTANT NOODLES). This
is due to the fact that consumers are more aware of their right and freedom in
relation to the purchase as goods produced for consumption and services tendered
are concerned.
1.3 AIM AND OBJECTIVE OF THE STUDY
The aim of this research project is to highlight the
roles and importance of marketing in a competitive environment. Hence, the
following objectives are achieved during the time the research project was
conducted in relation to food industries market, work reference to DE-UNITED
INDUSTRY, producer of INDOMIE INSTANT NOODLES.
The research project enables the organization
concerned to understand the determinant factors responsible for the decrease or
fall in sales volume from 95% sales ration to 87% sales ration. The decrease in
sales volume is as a result of the inception of various industries producing
related product. Introduction of new
related product from competing industries couple with the failure on the part
of (DE-UNITED) Industry to systematically analyze its product performance
against standard drastically reduce the sales volume.
Another objective of this research project is to
expanciate on the significant roles of marketing concept policy in a
competitive environment in relation to the selling concept policy adopted by
the management of DE – UNITED INDUSTRY.
Marketing concept (Philip Kottler, 1993, 4th
Edition) holds to the view that satisfying consumer needs effectively is a
pre-requisition for achieving the pre-determined objective of my manufacturing
organization.
While selling concept holds to the view that the
primary objective of any established organization is to maximize profit
irrespective of consumer frame of mind.
Therefore, De-United Industry management should
adopt marketing concept policy which will help to create delighted customer
through satisfaction of their basic needs, which will in turn yield optimum
profit from increase in sales volume.
Recommend solution to some of the problems the
company might be facing which might also be useful to other competitive firms.
1.4 SIGNIFICANCE OF THE STUDY
The significance of the study to researcher, the
government and the company, De-United Food Industry cannot be over
emphasized. The researcher gains more
knowledge in the process of gathering information about this research
work. Also, it is a partial fulfillment
for the award of Higher National Diploma (HND) in marketing.
The government itself controls and owns a cost of
industries or business units at home and abroad. Therefore, an appreciation of
the need for this research work will enlighten the government on international
market segmentation and reveal the domestic and foreign opportunities for the
government owned industries.
The company, De-United Food Industry will gain more
information about the market for its product and can use such information to
appraise the national and significance of market segmentation and target
marketing to its business success.
1.5 SCOPE OF THE STUDY
The scope of this research study cover the duration
of time used during the research project, the geographical distance covered as
at the time the research was conducted the financial constraint encountered and
the challenges faced in getting relevance and coherent response from the
targeted and selected audience.
The research project was conducted
within the period of two (2) semester starting from December 2011 to June 2012.
This is due to the availability of limited time which was carefully apportioned
among other academic work besides project work.
The research study limited its findings to the
consumption pattern of varieties of DE-UNITED FOOD INDUSTRY within Ilorin
Metropolis, specifically between ELERO and SANGO Metropolis.
The financial incapability of the
researcher limited the geographical distance covered during the time the
project was conducted. However, the financial constraint experienced was eased
by the contribution gotten from friends and relatives.
Additionally, most of the respondents are
not willing to divulge and information regarding their perception of the
product (INDOMIE) produced by DE-UNITED FOOD INDUSTRY in relation to other
related products produced by several competing firms. However, with consistency
and assurance that any information given will only be attributed for the
purpose of the research project and report writing, the respondent feel at ease
in responding to the question asked.
1.6 DEFINITION OF TERM
In the presentation of this project
work, there are some important terminologies that are peculiar to the topic
under discussion which may not be understood by some readers of this project
such as marketing, market targeting, and market segmentation etc. there are
defined below:
·
MARKETING:
According to British Institute of Marketing (B.I.M) annual report paper of
1982, 3rd edition, page 3, defines marketing as “the management
process responsible for identifying, anticipating and satisfying customer
requirement profitably.
While the American Marketing
Association (AMA) in its own answer report of 1981, 5th edition,
page 4, defined marketing as “The performance of all business activities that
direct the flow of goods and services from producer to customer or users”. The
process is a society by which the demand for economic goods and services are
anticipated or enlarged and satisfied through the conception physical
distribution and exchange of such goods and services.
·
MARKETING CENCEPTS:
Marketing concept holds to the fact that the key for achieving organization pre-determined
goals and objectives is determining the needs and wants of target market and
delivering the desired satisfaction more efficiently and effectively than other
competitors.
·
MARKET:
A particular potential market consists of people with similar need for particular
goods and services, sufficient resources to make a purchase and willingness and
ability to buy.
·
MARKETING SEGMENTATION:
Marketing segmentation can be defined as the analysis of a target market into
several component homogeneous part in such a way that set of buyers can be
differentiated.
This is a process of selecting
carefully a portion of the market and designing a product to meet the requirement
of that particular portion of the market.
Market segmentation reveals the market segment, divide the opportunity
facing the organization. At a point, the
organization has to decide between ways and types of organization market
selection strategies to be adopted.
·
DIFFERENTIATED
MARKETING: Here, the firm decides to operate
to several segment of the market and designs, separate product for each
identified market segment.
·
CONCENTRATED MARKETING:
here the firms go after one particular market segment and develop the idea
product or them.
·
UNDIFFERENTIATED MARKETING:
the organization might ignore segment differences and to offer the whole market
with one product offer. T eh organization does this by identifying what is
common in the needs of consumer rather than what is different.
·
TARGET MARKET:
Target market is specific group of people to whom an organization marketing
effort is directed.
·
MARKETING MIX:
This refers tot eh set of controllable variable that firms use to influence the
target market to achieve its objectives.
·
PRODUCT:
This refers to everything both favorable and unfavorable that one receives in
an exchange for its evaluated value usually in monetary term. It can be an idea, service, goods or services
or both.
·
CONSUMER:
this refers to people who patronize a particular product or service to satisfy
variety of their needs.