Impact Of Effective Marketing Communication On Manufacturing Company In Nigeria (A Case Study Of Northern Bag Manufacturing Company)

Project and Seminar Material for Business Administration and Management BAM

Impact Of Effective Marketing Communication On Manufacturing Company In Nigeria (A Case Study Of Northern Bag Manufacturing Company)


Abstract


The research project deals with the business of investigating the impact of effective marketing communication on manufacturing company, using Northern Bag manufacturing company as a case study. The objective of the research work among others were to know the role of marketing communication on the advertising media selection, sales promotion campaign influence the volume of bags produced by Northern bags manufacturing company. The researcher was able to address some problems such as problems or constrains encounters during the course of carrying out marketing communication by the company under study. The research questions that were created influence, does marketing communication help in achievement of increase in sales volume of bags, and does marketing communication contribute in increasing the potential customers and retaining the actual customers etc. the researcher used the whole population which comprised all the staff in the marketing department Northern bags manufacturing company with a sample size of 120 the methodology adopted was the use of primary and secondary data collection method. the researcher used percentage in analyzing the respondents profile and chi-square (x2) scientific method for testing of hypothesis finally the work came up with finding such as “there is a relationship between marketing communication and increase on the sales volume of bag and recommendation were made and among the were that the works of the company should cultivate the habit of speaking good word of mouth (WOM) about the product of the company.


Chapter One


Introduction

1.1 Background of the Study

One of the element of marketing strategy is promotion included also are price, product, and place. If the target public are not adequately communicated or not good knowledge about product/service, the marketing strategy exercise will fail organization firms need to use promotion to convey or create awareness about their product to the target audience.

However promotion is a popular variable through which an organization/ firm conveys or send message about their company and product or services such as consumers, suppliers, dealers etc.

Marketing promotion is the main goal of marketing communication, which helps to project a positive image for an organization and its product before its relevant publics to facilitate acceptance and patronage.

Kernal et al (1968) observed that communication creates commonness in relationship between the organization and the largest publics to the extent that they both share information idea, thought or attitude. Ordinarily communication is intended to build store traffic purchase and increase usage and stock level, brand switching and stock piling.

The word communication is derived from the Latin word “communis” which means “common”. Therefore communication could be seen as the process of establishing a commonality or oneness of thought between a sender and a receiver. The above definition highlights two important ideas.

One communication is a process and as such has elements and inter relationship, can be modeled and examined in a structure manner.

Secondary, oneness of thought must be developed between the sender and receiver if true communication is to occur which imply that a sharing relationship must exist between the sender and receiver.

It is a common mistake to view the sender as the active member in the relationship and the receiver as passive. For instance a person (the sender) speaking to a day dreaming friend (the intended receiver). It must appear that communication no thought is being shared thus there is no communication between them. Lack of communication in this instance is the passivity of the intended receiver called one of the intended receiver Although sound waves are bouncing against his/ her eardrums, he/ she is not actively receiving and sharing thought. A human receiver can be likened to a television set, a television set is continuously bombarded by television (electro magnet) waves from several situation.

However. it will receive only the station to which the channel selector are timed. Human receiver like wise are bombarded with stimuli from many vision, a person selects one source tune to act.

Engel et al (1983) defined promotion as controlled integrated programmed of communication methods and material designed to present a company and its products to prospective customers, to communicate need satisfying attributes of the product to facilitate sales volume and thus contribute to long run profile able performance.

Consumers are able to patronize a product or services if only they aware of its existence, quality, price and availability. But they can know these through the elements of communication. As Kotler (1988) identified them to be; they as follows.

  1. Advertising
  2. Personal selling
  3. Public relation
  4. Sales promotion
  5. Publicity

Through Recently, Kotler and Keller (2009) came up with the new idea that marketing communication consists of eight major modes of communication which are

  • Advertising
  • Sales promotion
  • Events and experiences
  • Public Relations and publicity
  • Direct marketing
  • Interactive marketing
  • Word of mouth marketing and
  • Personal selling

The major aim of the marketing communication is to prompt people to take positive action by placing orders, making enquiring and purchasing.

Based on the company under study, emphasis will be laid on only these communication otherwise known as promo-tools. These communication include. Advertising, sales promotion and personal selling, Although, other promo-tools will be touched in this research work.

1.1.1.1 Profile of the Company of Case Study.

Northern Bag Manufacturing Company Limited (Kano) was acquired by Nigerian Bag Manufacturing Co. on the 3rd of December 1990 from Danakar industries.

It commenced production of grain sacks in March 1991 with installed capacity of 1.5 million sacks per month.
During 2004, the management of Bagco approved a major expansion programme, which resulted in the acquisition of more plots of land, construction of three new factory bays and complete replacement of the existing machinery and generators.

From that time additional equipment has been installed which has increased the capacity of the factory to the ton of 10 million sacks per month which include various industrial sacks and jumbo bags (1 to 2 ton carrying capacity).

The expansion project has been completed in order to proliferate the installed capacity between 9 and 10 million sacks per month.


1.2 Statement of the Problem

The problem is that in our present society there are some competitors who produce bags that are similar to the one Nothern Bag produce and also in a very low amount or cost, they manufactured also go into advertising, sales promotions personal selling and other promo-tool to create awareness and stimulate interest to their prospective customers. Another problems is that most Nigerians do not make use of marketing communication to enable them increase the volume of their sales in the maufacturing industry also Nigerian made goods lack recognition many do not believe that made in Nigerian goods are what they are and many find it difficult to trust their quality of made in Nigerians product and services, marketers gives false information about the goods and services at their disposal. The customer say that Nigerian goods do not always work what the manufactures are in the label of those products. Also a lot of imitation are in the market and they are sold at a cheaper price which affect the original goods even when marketing communication is effectively apply, the volume of sales will be very low.


1.3 Objective Of the Study

The objective of the study is to identify the impact of effective marketing communication on manufacturing company. The following under listed points are the major objectives of this research work.

  1. To determine the impact of effective marketing communication on manufacturing company.
  2. To find out how marketing communication affect the distribution channel of Northern bags manufacturing company.
  3. To know the role of marketing communication in the sales volume of Northern bags manufacturing company.
  4. To examine how product serves as a tool for marketing communication.

1.4 Research Questions

  1. Does marketing communication help in the achievement of sales volume of Northern bags manufacturing company?
  2. Does marketing communication has any relationship between sales volume of Northern bags manufacturing company?
  3. Does marketing communication help to influence customers buying behaviour?
  4. Does marketing communication contribute in increasing the potential customers and relating the actual customer?

1.5 Research Hypothesis

The two type of Hypothesis used in this study are;

Null (Ho) and alternative (Hi) They are used below.

  1. Ho: Marketing communication does not help in the achievement of sales volume of Northern bags manufacturing company.
    Hi: Marketing communication help in the achievement of sales volume of Northern bags manufacturing company.
  2. Ho: There is no relationship between marketing communication and increase in sales volume.
    Hi: There is relationship between marketing communication and increase in sale volume.
  3. Ho: Marketing communication dose not help to influence consumer behaviour.
    Hi: Marketing communication helps to influence consumer buying behaviour.

1.6 Significance of the Study

The relevance of the research work include the following.

  1. To me as a student: It also serves as a means of bracketing my knowledge in the marketing field.
  2. To companies in manufacturing industry it help manufacturers discover the various effective means of directing their products to potential customers and thereafter increase sales volume of their products.
  3. To future researchers: It will be useful to future researchers that want to embark on a research work related to the problems under study.

1.7 Definition of Terms

The following terms are defined as thus;

Marketing Communication:

It is the package of promotional efforts and strategies designed by marketing executive to attract the alternation and arouse buyer’s interest.

Sales Promotion:

It is a short term promotional tactic, providing an inducement to buy rather than to produce long- term effect.

Sales Volume:

This refers the quantity of sales of a product over specific time period usually one fiscal years.

Consumer:

This is an individual who buy or uses the product or services offered for sale by the producer.

Consumer Behaviour:

It is decision process and physical activity individual’s engage in when evaluating, acquiring, using or disposing goods and services.

Industry:

This is the total number of firms /companies that produces particular goods and services that have close substitute.

Promotion:

This is the act of communicating information between seller and potential buyer or other in the channel to influence attitude and behaviour.Marketing: This is the performance of a set of systematically coordinated activities or functions aimed at need/ want identification and satisfaction at a profit, through the exchange process.

Marketing Mix:

These are the controllable variables the company puts together to influence the target market. They include the 4ps of marketing product, price, promotion and place.

Product:

This is the need satisfying offering of a firms.

Advertising:

This is any paid form of non-personal presentation of ideas goods and services by and identified sponsor.

Personal Selling:

This is an aspect of marketing promotion done through face to face or person to person presentation of sales forces or an intermediary to the target market.

Direct Marketing:

This is the use of mail, telephone, fax, e-mail, or internet to communication directly with or solicit response or dialogue from specific customers and prospects.

Interactive Marketing:

This include online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or encourage sales of products and services.

Word of Mouth Marketing:

This has to do with people-to-people, written or electronic communications with relate to the merits or experiences of purchasing or using product or services.


Chapter Five


Conclusion and Recommendation

5.1 Conclusion

In this study, our focus was to carryout a critical analysis on the impact of effective marketing communication on manufacturing company in Nigeria. The study specifically was aimed at looking In a competitive economy such as Nigeria, with many competing companies of consumer products, and many brand names, ways of increasing sales and hence profit have been a serious problem to marketers. This study reviewed and anchored its framework on conversational theory.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 100 responses were validated from the enrolled participants where all respondent are active workers in northern bags manufacturing company, Kano.

The findings revealed the Marketing communication help in the achievement of sales volume of Northern bags manufacturing company. The findings also revealed that there is relationship between marketing communication and increase in sale volume. Also it revealed that Marketing communication helps to influence consumer buying behaviour.


5.2 Recommendation

Based on the responses obtained, the researcher proffers the following recommendations:

5.2.1 Advertising’s Effects on Purchase Intention

The key recommendations derived from the conclusions on the first objective ‘effects of advertising on purchase intention’, are described. Advertisement initiatives to increase trial usage should incite word of mouth and optimize on great experience for great results. Advertising budgets should have priorities on TV advertising and online marketing since they are the main channels of information. Advertisements should be more concentrated in the evening from 7pm onwards because this is when consumers interact with the main channels’ TV and internet. Nonetheless target newspapers readers because newspaper have the strongest positive association for influencing purchase probably because readers go through the information provided more keenly. Internet follows in influencing purchase probably for the same reason as newspaper readers. Brands should build familiarity and trustworthiness because this is most important.

When advertising build familiarity, trustworthiness and provide adequate product information to connect with consumers since these are the most important elements to them. Quality of advertisements can currently be improved by increasing product information and price information since these are the most unmet gaps in the advertisement content. Use ‘celebrities or famous people’ and ‘discounts or deals’ to drive purchase since they had the strongest, positive correlation. Eliminate factors that cause potential disliking to avoid promoting non-purchase of a brand.

5.2.2 Sales Promotion’s Effects on Purchase Intention

The key recommendations resulting from the conclusions on the second objective; effects of sales promotions on consumer purchase decisions, are described. Sales promotions should be frequent enough to leverage on the bimonthly to monthly shopping frequency. Competitions and free gifts are underutilized compared to their leading awareness hence increase frequency of these promotions. Price discounts are the most widely used however there is potential to get more effective results through ‘extra amounts’ e.g. buy 2 get 1 free. Leverage on training sales representatives and effective TV communication since they are the main sources of knowledge on sales promotions. Sales promotions should be used to boost immediate sales since they promote temporary switch of brands. Support marketing strategies should be used to promote permanent switching. Marketers should look into loyalty points as consumers anticipate using them the most over the next 3 months. Marketers should bias their sales promotions to household item followed by clothes which drive impulse purchase

5.2.3 Personal Selling’s Effects on Purchase Intention

The key recommendations derived from the conclusions for the third objective; the effects of personal selling on consumer purchase decisions, are described. Marketers should maintain current performance on personal selling as most customers are happy across the various factors which include the types of products it is done for; household and personal care. Consumers also appreciate the extra convincing efforts implemented for food items. Marketers should also maintain the dissemination of information given as it results in majority taking action and purchasing the product. And it increases the trustworthiness and image of a brand. Marketers should bias recruitment of sales persons to women as they drive purchase more than men. Personal selling initiatives should also be done on social media where consumers have had higher incidence of interacting with the same

5.2.4 Social Media’s Effects on Purchase Intention

The key recommendations derived from the conclusion for the fourth objective; effects of social media marketing on consumer purchase decisions on FMCG products, are as follows. Marketer should use Facebook and WhatsApp for achieving wide reach since they are most frequent and widely used. Marketers should use Facebook and Twitter for providing adequate product information. Marketers should use Pinterest, WhatsApp, and Instagram for effective results since they drive purchase better. Product information should focus on promotions and the functions of the product since these information types influence purchase on half of the consumers. Marketers should sell clothes, personal care, food items and household items on social media as they are most popular product categories on these platforms. Social media marketing should be leveraged on because it is perceived to be more creative and attractive compared to other marketing platforms.


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