Effect Of Marketing Concept On The Performance Of Manufacturing Company
ABSTRACT
The paper examined the effect of marketing concept on the performance of manufacturing company. The objectives of the paper include; to examine the relationship between marketing concept and organizational performance, to establish the influence of product quality on competitors’ market policies amongst others. Findings revealed that there is strong relationship between the use of marketing concept and consumers’ satisfaction, a company product quality has influence on competitors’ company policies, amongst others. The paper recommends that organization should strive to satisfy their customers.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Marketing Concept’s focus on the need to understand the future customers just before designing and manufacturing a product or service for them. With the customer’s wants and needs incorporated into the design and manufacture of the product, sales and profit goals are far would be met. Customer’s satisfaction is key to the organization, the need to understand the customer is highly important. Marketing research techniques was bought about just for that purpose. Smaller companies can be able to keep a close relationship with them but imply talking with them. While larger organizations have set up strategies in place in order to be able keep in close touch with their customers, be it through focus groups, or even third-party research studies. Whatever the strategy, the goal is to know the customers so that organization can better serve their customers and not lose focus of their needs and wants. The marketing concept, as defined in the marketing literature, is of the view that for success in any organization soley depends on first determining the needs of the target market and delivering satisfaction to the target markets more efficiently and effectively than competitors do (Kimerey & Rinehart, 1998).
The marketing concept can be seen as a guide to ensure the satisfaction of customer needs and wants. The marketing concept is based on the principle that individuals who do not have a need or desire for the products which the firm is selling will simply not purchase it. Ibidunni O.S (2012) marketing concept is the management orientation that holds the key in achieving organizational goals.. Peter and Donnelly (2004) holds that the concept of marketing means that organizations should try as much as possible to strive to be profitable by serving the needs of customers. Kotler and Keller (2009) argue that marketing is often known to be “the art of just selling products, and the truth is that many people are shocked to find out that selling is just the tip of the marketing iceberg. According to pioneer management theorist Peter Drucker stated that marketing should make selling superfluous by understanding consumer needs very well that the product can be made.
Marketing concept and philosophy states that the organization should always strive to create satisfaction for its customers’ wants and needs while also meeting the different organization’s goals. It should be noted that meeting organizational goals can best achieved by meeting the customer’s needs and wants. The core of the marketing concept is the enterprises’ dependency on the identification of the needs of the customers and satisfaction of its customers. The customer will become the focal point for company functions such as planning, strategic setting research problem development as well as marketing activities.
The traditional marketing concept holds that an organization should enhance long-term customer satisfaction through a co-ordinate set of activities that also allows the organization to satisfy its profit goal. The implications are clear; long-term relationships with customers is desired by any organization, profit making instead of short-term exchanges is emphasized, and co-ordination will signify long-term relationships with both internal and external stakeholders especially customers. The product service system (PSS) concept is known as path way to help contribute to this system level improvement (Goedkoop, van Helen et al. 1999; Mont2000).
Advertising a product or service must be targeted at motivating the interest of the target market, as it creates a desire for the product or service. For example, some advertisement raws attention, but some seconds afterwards, the product or service is forgotten. Great advertisement would always keep products in the minds of the target consumer. Also, advertising budget must also be in mind while selecting a marketing concept that should be adopted. When firms first begin to adopt the marketing concept, they always set up separate marketing departments whose goal is to satisfy customer needs and desires. Interestingly some of these departments include sales departments with additional responsibilities. While this sales department can be found in some organizations today, many other organizations have structured themselves to becoming marketing organizations having a company-focus on customers. Since the entire organization aim is for the satisfaction of customer needs and wants, other departments in the organization cannot abandon any customer issue by declaring it as a marketing department problem. This involves the contribution of every personnel in the organization to be concerned with the satisfaction of customer needs and wants. The marketing concept relies on marketing research so as to be able to define market segments. To satisfy those needs in the market segments, the marketing department makes decisions about the controllable parameters of the marketing mix.
1.2 STATEMENT OF THE PROBLEM
Market concept is an orientation that emphasizes on the need to achieving organizational goals is in first understanding the needs and wants of target markets and then adapting itself to delivering the product or service satisfactory, more efficiently and effectively than its competitors. It has being noticed that consumer needs are numerous and cannot be easily satisfied. This problem is to find out the influence of marketing concept on human needs, in what ways can marketing concept be used ,in order to solve human needs and what are consumers perception of marketing concept in meeting their needs?
1.3 OBJECTIVES OF STUDY
The broad objective of the study is to know the impact of marketing concept and satisfaction of consumer, specifically the objective include:
(i) To examine the relationship between marketing concept and performance of manufacturing company.
(ii) To examine the extent to which customer income affect marketing objectives.
(iii) To establish the influence of the product quality on the policy of the competitors.
1.4 RESEARCH QUESTIONS
Is there any significant relationship between marketing concept and performance of manufacturing company?
Can consumer income affect marketing objectives?
Can Product quality influence the policy of the competitors?
1.5 RESEARCH HYPOTHESES
The following hypotheses which are stated in the null form are formulated for the purpose of the study:
Ho: There is no relationship between marketing concept and performance of manufacturing company.
Hi: There is relationship between marketing concept and performance of manufacturing company.
Ho: Consumer income does not affect marketing objectives.
Hi: Consumer income does affect marketing objectives.
Ho: Product quality does not influence the policy of the competitors.
Hi: Product qualities do influence the policy of the competitors.
1.6 SIGNIFICANCE OF THE STUDY:
This study is carried out because it was intended to help in solving a problem(s), and if the problem is solved, it will benefit those who are affected by it.
It can be seen from the problems that Nestle Nigeria Plc difficulties are identified to be marketing strategies. It is then hoped that this study will help the company to adopt better marketing strategies that will improve the overall marketing performance of products and equally enable them to realize their business objectives as well as utilize all their opportunities.
In addition to this, the recommendations made would provide initial steps in major decision areas facing the company, such areas includes; decision on the determination of .the present marketing strategies that can be used by Flour Mill Plc to improve the performance of its products in the market place, and also for vital expansion of business activities.
In addition, the study will enable the readers to know that the success of a business depends on good marketing strategies that will promote good image for the company and as well increase their sales revenue.
It will also widen the marketer’s knowledge about the various marketingstrategies available and how they can be effectively applied to any company’s products so as to improve the performance of their business.
It will equally aid Flour Mill Plc immensely by providing them with the appropriate marketing strategies to be adopted in making high sales over.
Above all, the study will help other people such as businessmen, industrialists and so on to know the value of marketing strategies and how they can be effectively used to attract new market and also win more market share from the existing market.
1.7 SCOPE OF THE STUDY:
The study covers the different marketing strategies with regard to the 4p’s for improved performance of Flour Mill Plc products with special emphasis to management, distributors and customers of Flour Mill Plc Products.
1.8 DEFINITION OF TERMS:
Marketing Concept:
Performance:
Marketing Strategies: A consistent, appropriate, and feasible set of principles through which a particular company hopes to achieve its long – run customer satisfaction and profitability objectives in a particular competitive environment.
Market Leader: A firm in-an industry with the largest market share, it usually heads other firms in price changes, new product introductions, distribution coverage and promotion spending.
Market Challenger: A runner-up firm in an industry that is fighting hard to withstand the leader by increasing its market share.
Positioning: The art of fitting a product to one or more segment of the broad market in such a way as to set it apart from competition and optimize opportunity for greatest sales and profit.
Satisfaction:
Concept:
1.8 HISTORICAL BACKGROUND OF THE CASE STUDY
Flour Mills of Nigeria Plc was incorporated in September 1960 as a private limited liability company, and commenced operations in 1962 with an installed capacity of 600 metric tons per day. The Company was converted to a public limited liability company in 1978, and its shares were subsequently listed on The Nigerian Stock Exchange.
In its 54 year history, Flour Mills has remained at the forefront of wheat milling in Nigeria. The Company’s flagship brand, Golden Penny, remains one of the best known and the preferred brands amongst bakers, confectioneries and consumers in Nigeria. Flour Mills has invested over N25billion in milling infrastructure over the last seven years, to maintain its competitive advantage. Today, Flour Mills has a rated milling capacity of over 8,000 metric tons per day, making it one of the largest single site mills in the world.
The Company’s flagship mill located in Apapa, Lagos comprises of 16 integrated mills. Each mill was designed as a multilevel operation in order to optimize the use of gravity in the sifting process, thereby reducing the energy requirements. In addition, the Company maintains dedicated mills to the processing of different wheat varieties to produce different flour types. This has ensured consistent quality of its products for 50 years. The Apapa Mill also boasts of modern silos with a storage capacity to 191,000 metric tons.
Flour Mills has also made significant investments in power generation. The Company has 11 General Electric (GE) Jenbacher gas generators at its Apapa Mills, with a combined capacity of 30 megawatts. This has enabled the company to reduce the occurrence of production stoppages. In addition, the Company has a 30megawatt diesel plant at the same site to act as a backup in the event of any shortage of feedstock to the gas generators.
As part of its diversification strategy, FMN commissioned a Sugar Refinery of international standards, a Vegetable oil and margarine facility and also entered the snacks category. The Company engages in the importation and distribution of high grade fertilizer While in a bid to decrease their own packaging cost and provide valuable products to the Nigerian market as a whole, FMN has taken a 70% stake in BAGCO, one of the largest suppliers of industrial sacks to many industrial and agro- allied companies in Nigeria. It is noteworthy, that FMN runs profitably, a series of support or auxiliary businesses such as Golden Transport, which operates more than 500 trucks and the Apapa Bulk Terminal, which handles over 3 million MT of bulk cargo per annum. Such businesses, in addition to being viable and profitable in their own right, give FMN a tremendous competitive advantage in terms of agility, efficiency, and service delivery.
In addition to these ventures, FMN’s interest in becoming the nation’s dominant food business company is furthered by entities operating in agriculture, livestock feed and pasta manufacturing. As such, the collective clout of Flour Mills of Nigeria stands poised to help achieve the company’s objectives whilst simultaneously improving the lives of untold numbers of Nigerians, employees and consumers alike.
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