CHAPTER ONE
1.0 GENERAL
INTRODUCTION
Several
explanatory notes have been proposed for the term Marketing. Each tends to
emphasized different issues concerning marketing as well as drawing a valid
conclusion.
Many
definitions of marketing have been put forth over the years. A popular one
holds that “Marketing is the performance of business activities that direct the
flow of goods and service from producer to consumer or end user”
The American Marketing Association
(1995) offers managerial definition of marketing: Marketing is the process of
planning and executing the conception pricing, promotion and distribution of
ideas, goods and service to create exchange that satisfy individual and
organizational goals.
Philip Kotler
(Custom Edition 2005), says marketing is the methodology of communicating the
value of products and services to customers for the purpose of selling the
products and service. This involves some techniques such as choosing the target
marketing through market analysis and segmentation, understanding consumer
behaviour and advertising the product value to the customers.
In marketing,
marketers use numerous tools to elicit the desired responses from their target
market. These tools constitute Marketing Mix (McCarthy, 1999); Marketing Mix is
the set of marketing tools that business organization use to pursue their
Marketing objective in the target market. These include: Product, Price and
Promotion; popularly known as four Ps
In a general sense, this research
project bring to light how Marketing Mix allow business organization to build
and sell value to their ultimate customers and also getting better return on
their investment.
1.1 BACKGROUND
OF THE STUDY
A business
organization is an entity formed for the purpose of carrying out commercial activities.
It can also be analysed as an individual or group of people that collaborate to
achieve certain commercial goals and this can be achieved by a well-structured
marketing system.
Marketing
(Kotler, 1991) is not the art of clever ways to dispose of what you make or
producer. It is an art of creating genuine customers’ value and helping them
become better-off. The introductory part of this project discussed marketing as
a means of identifying customers’ needs and supply various goods and services to
satisfy those needs most effective.
A business
organization needs to produce goods and services, make it at a price the
consumers find reasonable, supply the good and services at different outlets
the consumers can conveniently access and also inform them about the product
and services through the media they have access to. All these can be attributed
to a set of controllable variables and the controllable variables in this
context refer to four “PS” (Product, Price, Place and Promotion) which
constitute marketing mix. Each firm or business organization strive to build up
such a composition of four ‘p’s which can create highest level of consumer
satisfaction and at the same time meet its organization objective and goals
i.e. Maximization of sales and profit, Bigger market share, survival in the
market amongst others. The impact of these variables on business organization
form the basis of this research project putting into consideration the case
study: LUBCON NIGERIA LIMITED ILORIN,
KWARA STATE.
1.2 STATEMENT
OF THE PROBLEM
Effective
Marketing Mix constitutes to highest level of consumer satisfaction,
maximization of sales and profit, bigger market share and survival of the
market amongst others.
In conducting
this research, the following outlines are some of the problem encountered:
·
Inadequate information as there are lots of neural
response and restrictions of information in the questionnaire
·
Time factor
·
Data collection problem
·
Financial instabilities
1.3 OBJECTIVE
OF THE STUDY
Roles of Marketing
Mix in business organization cannot be over emphasized, therefore, it is the
duty of management concerned to facilitate effective marketing mix. This will
enable business organization to achieve its aims and objectives.
The aim of this
research project is to examine roles of marketing mix in business organization.
While the objectives comprises of the following:
1. To explain the
concept of marketing mix and its components.
2. To find out the
importance of marketing mix in business organization.
3. To identify the
marketing problem encountered by LUBCON
NIGERIA LIMITED, ILORIN, KWARA STATE and how to proffer solution to the
problem.
1.4 SIGNIFICANCE
OF THE STUDY
The importance of this study is to
extend the sphere of knowledge on “Roles of Marketing Mix in Business
Organization”. The heart of a business lies in its Marketing. Most aspect of a
business depends on successful marketing. The overall marketing umbrella covers
advertising, public relations, promotion and sales. Without marketing a business
may offer the best products or services, but none of the potential customers
would know about it. For a business to succeed, the product or service it provides must be known to
potential buyers and this can be achieve through the use of effective marketing
tools known as Marketing Mix (Product, Price, Place and Promotion).
This study is
not only important to the case study (LUBCON NIGERIA LIMITED, ILORIN, KWARA
STATE) but to organizations, individuals and researchers. It will also serve as
a guide for industries, organizations and individual that might want to explore
the importance of Marketing Mix.
1.5 SCOPE OF
THE STUDY
The scope of this study involves the
area covered by the research topic. The study dwells on “Roles of Marketing Mix
in Business Organization” putting into consideration the case study: LUBCON NIGERIA LIMITED, ILORIN, KWRAR
STATE.
The system adopted in achieving
effective Marketing Mix and how the mix help the organization to achieve its
objectives and goals are considered. The geographical area covered is Ilorin,
Kwara State where the case study is located.
1.6 LIMITATION OF THE STUDY
Limitation of the study is the
constraints and occurrence which hinder the research work. Some of the
constraints include:
·
TIME FACTOR: The time
available to carry out the research work and to measure change or stability
over time is constrained by due date of the project and other academic work
during the course of it.
·
FINANCIAL
CONSTRAINT: This aspect has to do with the expenses incurred
during the course of the project. This involves movement in order to get
relevant information, online research amongst others
·
OTHERS INCLUDE: limited access
to some of the officials and relevant information of the organization used as
case study.
·
PROBLEM OF DATA
COLLECTION
1.7 DEFINITION
OF TERMS
MARKETING:
Marketing is
the process of planning and executing the conception pricing, promotion, and
distribution of ideas, goods and services to create exchange that satisfy
individual and organizational goals.
BUSINESS ORGANIZATION:
A business
organization is an entity formed for the purpose of carry out commercial
activities. It can also be analysed as an individual or group of people that
collaborate to achieve certain commercial goals.
MARKETING MIX:
Marketing mix
is the set of marketing tools that business organization use to purse their
Marketing objective in the target market. These include Product, Price, Place,
and Promotion, popularly known as four Ps.
PRODUCT:
The element of
marketing mix that represent the basic offering being made to consumers. It is
everything (both favourable and unfavourable that one receives in an exchange,
it is a complexity of tangible and intangible attributed, including functional,
attributed, including functional, social and psychological utilities or
benefits. A product may be a good, service or an idea.
PRODUCT CONCEPT:
This is the
marketing philosophy that holds the believes that consumers will not buy a
product unless it offers the most quality, performance and features that will
arouse and retain the interest of the consumers. The consumer’s perception is
how to get a quality product that will perform to their expectation.
PRICE:
one of the
marketing mix (4p’s). This is the value agreed upon by the members in the
exchange process. It is the means that allows products or services to get value
in the eyes of both buyers and the sellers.
PRICE DIFFERENTIATION:
A
demand-orientated pricing method whereby a firm uses more than one price in the
marketing of a specific product; differentiation of price can be based on
several dimensions, such as type of customers, types of distribution used, or
the time of the purchase.
PLACE:
In marketing
this the various activities the company undertakes to make the product
accessible and availableto target customer. It includes two major activities;
channel of distribution, and physical distribution.
PROMOTION:
One of the
marketing mix (4p’s), that communicate with individuals, groups, or
organizations directly or indirectly to facilitates exchanges by influencing
audience members to accept an organization’s products. All forms of
communication other than advertising that call attention to products and
services by adding extra value toward the purchase.
Includes
temporary discounts, allowances, premium offers, coupons, contests, sweepstakes
e.t.c
PROMOTION MIX:
The specific
combination of promotional methods that an organization uses for a particular
product. It comprises the promo tools (Advertising, Sales Promotion, Personal
Selling, Public Relations and Publicity).
DISTRIBUTION MANAGEMENT:
Distribution
management can be define as the system designed to move goods and services from
Producers to consumers which consist of people and organizations supported by
various facilities, equipment and information resources.
CONSUMERS:
A consumer is a
person that buys goods and services for personal use rather than for resale or
use in manufacturing.
BRAND:
A brand is the
totality of product, features that distinguishes it from other product or a
means by which the firm identifies itself to consumers.
BRAND NAMES:
This is the part of a firm’s brand which can be
spoken. Example LUBCON, LUX etc