The Impact Of Marketing Communication On Consumer Brand Loyalty

Project and Seminar Material for Marketing

The Impact Of Marketing Communication On Consumer Brand Loyalty


Abstract


This study sought to determine the impact of marketing communication on consumer brand loyalty using Pz cusson Plc Aba in Abia state as a case of study. Instrument for the study was the questionnaires the population size were 505 and the sample size were also 223. Data were analyzed by the use of descriptive statistic and were tabulated, chi-square represent a statistical tools to rest the hypothesis. This paper has also provided useful recommendations, which if carried out would help in effective branding on sales in the industry and should not be underrated.


Chapter One


Introduction

1.1 Background of the Study

Recently, increased attention is being paid by business, on how to achieve maximum returns in their investment and it is a truism that no business organization can survive in today’s competitive and adverse economy without effective marketing of its goods and services.

Now, it is no longer the question of people beating their ways to the producer of goods mousetrap. The mousetrap producer is no longer alone in the production of good traps.

In a situation like this, each producer must communicate the nature of his products, where to find them, their prices, their benefits and in some cases how to use them.

Brand loyalty has been proclaimed by some to be the ultimate goal of marketing. In marketing, brand loyalty consists of a consumer’s commitment to repurchase the brand and can be demonstrated by repeated buying of a product or services or other positive behaviours such as word of mouth advocacy true brand loyalty implies that the consumer is willing, at least in occasion, to put aside their own desires in the interest of the brand. Philip Kotler (2007).

Kotler and Armstrong (2004), reaffirmed the above fact, when they wrote that “modern marketing calls for more than just developing a good product, pricing it attractively and making it available to the target consumer. Companies must also communicate with current and prospective customers and what they communicate should not be left to change. All of their communication effort must be blended into a consistent and coordinated communication program, just as good communication is important in building and maintaining any kind of relationship, it is a crucial element in a company effort to build customer’s relationship.

In general, the potential customer must know something about a product if they are to buy at all. A firm with a really new product may not have to do anything but inform customers about it and show that it meets their need better than other product, so the fact that people do not readily grab the advantages of the product particularly if it is entirely new, makes it utmost important that companies must design and disseminate adequate information about product characteristics and benefit to the target market.

Having started the above, brand, is a persuasive communication about an organization and its product. The communication, the media, the audience, the respondent and the feedback, which make up the communication process element, are the foundation of branding strategy. This gives credence to the fact that the marketer and the buyer contribute something and each want to gain something from branding activities, thus describing marketing as a profitable exchange between two interested parties ‚Äď Kotler (1993).

Thus in a sense, when consumer buyer products, they buy with these expectations, though, the organization want to remind consumers, it equally have objectives which must at all cost be in consonance with corporate goals.

In the light of the above notion, that the researcher considered it pertinent to study the influence that brand loyalty exert on marketing communication, using PZ Cusson Nigeria plc. Aba, plant as a parameter of the study

1.1.1 Profile of PZ Cusson Nigeria Plc

PZ Cusson Nigeria plc, was founded in England in 1984 by Peterson (British) and Zochonis (Greek). It has its head office in Manchester, England.

The Company was incorporated in Nigeria as a private company on the 4th December 1948 under the name D.B. Nicholas and company limited. The name was change to Algbon Ind. Ltd. In 1953 and to associated ind. Ltd. On 19th July 1972, it was converted to a public company.

Further more, the company changed its name present to Peterson Zochonis industry plc on 22nd November 1909; the company’s authorized share capital on incorporation was 80,000 dividends into 40000 ordinary share of N2.00 each issued to Mr. P. B. Nicholas as a part of consideration for his business acquired by the company.

The board of directors in Nigeria are G. J. Poupas (chief executive chairman) chief Babatunde Onyeleda (chairmen) Kostsa Theodora Komplous (member) paanos Gieuras (member) A. N.; calder (member) B.O.Ola and E. Mgbeachire.

The Aba plant of cussons is located at Margeret Avenue, Eziama, Aba north of Abia state. The Aba plant specializes in the manufacturing of soap (toilet, laundry and medicated) some of the brands produced here includes: Joy, imperial, Premier, Venus, Ava, Cussons and baby soap, Canoe, Duck, Tempo, Robert medicated and robber and antiseptic soap. One company’s fiscal year ends every month. The company renders some social services to its host communicates such as employment especially unskilled labour, provisions of food, roads, water borehole and free technical education at its head office training school in Lagos.


1.2 Statement of the Problem

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 these problems includes:

  1. Lack of training and Development in the Industry.
  2. Poor packaging, labeling and Low mentality, also hinder the profitability in the Industry.
  3. The absence of strong brand loyalty makes consumers switch to other brands easily thereby causing lost of sale in PZ Cusson Nigeria plc
  4. Non distinctiveness of brands in the market causes confusion among brands.

1.3 Objectives of the Study

The objectives of the study were:

  1. To give suitable suggestion where necessary for the improvement of product.
  2. To know whether brand helps to meet the needs and wants of target markets.
  3. To show the impact of brand strategy on sales turnover
  4. To identify the common problem to brand loyalty.
  5. To know whether brand affect PZ Cusson Nigeria plc, Aba growth negatively.

1.4 Research Questions

The major research questions considered in the study were:

  1. What suitable suggestions could improve product?
  2. Does brand help the company to meet the needs and wants of thee target market?
  3. Does brand militate company’s sales turnover and market share increase?
  4. Does brand play an important role in brand loyalty?
  5. Does brand affect organizational growth negatively?

1.5 Research Hypotheses

The following hypothesis were posited and tested in the study

  1. HO1: The creation of brand loyalty does not depend on influence of promotional strategy.
    HA1: The creation of brand loyalty depend on influence of promotional strategy
  2. HO2: An effective product sale does not depend on the Influence of brand loyalty
    HA2: An effective product sale depend on the influence of brand loyalty
  3. HO3: Brand negatively affects organizational growth
    HA3: Brand positively affects organizational growth
  4. Ho4: Brand does not help the company to meet the needs and want of their target market.
    HA4: Brands help the company to meet the needs and wants of their target market.

1.6 Significance of the Study

The influence of consumer brand loyalty will help the company, in formulating economics policies and planning in the enactment of law to guide or strengthen consumer protection against sharp practices from manufacturers over competition.

However, competition is a major characteristic of capitalism. Chief O. K. Uduma (2003) reaffirms that ‚Äúcapitalism is a bad system and co-operation is the panacca to its evils‚ÄĚ

This study will help Pz Cusson Nigeria Plc, Aba, to strengthen its branding tools and guide it in designing brand strategies

To the student and academic public, it will enhance student performance, which tend to carryout further research on the topic in future with information’s collected.

Again, it will make student stand in a better position to understand what brand is and measures that could be adopted in promoting products.

As a student, this study will help the researcher for the award of higher national diploma certificate. It will help improve customer’s loyalty


1.7 Definition of Terms

The following terms used in the study are defined as below

Consumer:

One who uses goods and services (product), which directly satisfy his/her needs.

Competition:

A situation where organization complete with each other

Company:

This is a business organization that makes money by production of selling goods and services

Marketing:

This is getting the right goods and services to the right people at the right time at the right price, with the right communication and promotion. It is also the sum total of business activities that is designed to produce, price, promote and or distribute wants satisfying product to present and potential customer.

Objectives:

This is what organization intends to do, achieve and accomplish at a given/specified period of time

Product:

A product is anything that is offered and accepts in exchange for satisfaction. It is made up of tangible and intangible product

Sales:

Is a collection of products sold for revenue generation?

Strategy:

This involves a grand design for what a firm does in a product market area.

Target Market:

These are the set of buyers sharing common needs to characteristics that the company decides to serve.


Chapter Five


Conclusion and Recommendation

5.1 Conclusion

In this study, our focus was to carryout a critical analysis on the impact of marketing communication on consumer brand loyalty. 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 PZ Cusson Nigeria plc, Aba.

The findings revealed the that Branding help the company to meet the needs and wants of their target market. The findings also revealed that that Branding positively affects organizational growth. Also it revealed that an effective product sale depends on the influence of brand loyalty.


5.2 Recommendation

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

5.2.1.1.Advertising’s Effects on Purchase Intention

The key recommendations derived from the conclusions on the first objective ‚Äėeffects of advertising on purchase intention‚Äô, 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‚Äô 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 ‚Äėcelebrities or famous people‚Äô and ‚Äėdiscounts or deals‚Äô to drive purchase since they had the strongest, positive correlation. Eliminate factors that cause potential disliking to avoid promoting non-purchase of a brand.

5.2.1.2. 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 ‚Äėextra amounts‚Äô 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

5.2.1.3. 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

5.2.1.4. 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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