The Impact Of Marketing Strategy On Productivity Of An Organization
This study was carried out on the impact of marketing strategy on the productivity of an organization. The study focused on First bank Nigeria Plc, Asaba metropolis, Oshimili south local government area of delta state, Nigeria.The descriptive research design method was used in this study which involves using a self-design questionnaire in collecting data from one hundred (100) respondents. The instrument used in this study is a close-ended questionnaire that was designed by the researchers. Multiple regression analysis was used to analyze the data with the aid of statistical package for social sciences (SPSS) version 22. The results show that the independent variables (i.e Marketing Strategy (MS), Service Strategy (SS), Pricing Strategy (PS), Promotions Strategy (PRS), Place Strategy (PLS), After Sales Service Strategy (ASSS), Bank Marketing Strategies (BMS), and Social Media Marketing Strategies (SMMS) were significant joint predictors of business productivity in term of productivity, market share, return on investment, and expansion. (F = 25.181); R = (0.830); R2 = (0.689); P< .05). The independent variables jointly explained (66.1%) of variance in business productivity. Subsequently, recommendation was made to bank operators to higher education marketing strategies quality; charge competitive prices, position appropriately, use attractive promotion channels for the university, engage in after sales service and provide other distinctive functional benefits to students.
Table Of Contents
- Title page i
- Certification page ii
- Dedication iii
- Acknowledgement iv
- Abstract v
- Table of content
- 1.1 Background of the study
- 1.2 Statement of the problem
- 1.3 Objective of the study
- 1.4 Research questions
- 1.5 Hypotheses of the study
- 1.6 Significance of the study
- 1.7 Scope of the study
- 2.1 Concept of marketing strategy
- 2.2 Pricing Strategy (PS)
- 2.3 Promotion Strategy (PRM)
- 2.4 Place Strategy (PLS)
- 2.5 After Sales Service Strategy (ASSS)
- 2.6 Social Media Strategy (SMMS)
- 2.7 Meaning and Definition of Productivity
- 2.10 Theoretical Review
- 2.11 The Conceptual Model of Study
- 3.1 Introduction
- 3.2 Research design
- 3.3 Sample Size
- 3.4 Data Collection Method
- 3.5 Data Analysis and Interpretation
- 3.6 Validity and Reliability Methods
Results And Discussion
- 4.1 Introduction
- 4.2 Descriptive Statistics
- 4.3 Regression Analysis
- 4.4 Reliability Analysis
- 4.5 Validity Analysis
- 4.6 Hypothesis Testing
- 4.7 Discussion
Conclusion And Recommendations
- 5.1 Conclusion
- 5.2 Implications for Management Practice
- 5.3 Research Contributions
- 5.4 Recommendations
1.1 An Overview Of The Study
Every organization needs to have clear marketing objectives and the major route to achieving organizational goals. Profitability is the function of productivity, a company success depends on how marketing strategies are used to achieve marketing objectives, which will result in productivity.
To achieve a set of organizational goals and objectives, companies, conceptualize, design and implement various strategies. These strategies can be corporate, business, operational or functional. Marketing strategies constitute one of the functional strategies to application by contemporary companies in order to enhance performance. Marketing has been defined and conceptualized In various ways, depending on the author’s background, interest and education for example marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy the perceived needs, wants and objectives of individuals and organization (Arens, 2011).
Marketing strategy is important for the success of any organization, whether service or product-oriented.
Marketing strategy is a method by which needs, attributes and competitors products are assessed and the firm concentrates it’s limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage (Nymous.2006).
Marketing strategy focus on delivering greater value to customers and the firm at a lower cost however, quantifying the return on investment form marketing expenditure on activities such as advertising. Promotion and distribution is one of the most complex issue facing decision markers. Marketing performance is central to success into day’s fast moving competitive markets and measuring marketing performance is critical to managing it effective. (Chiliya,2009)
In order to measure marketing strategy effectiveness, a business has to break down it’s marketing function into constituent parts, along with a mechanism through which to analyze the interaction between those parts. By doing this, decision-makers will finally be in a position to relate marketing expenses to shareholders value and to understand how to tie marketing initiative back into the value created for the company. Decision-makers will be able to understand the internal motives that propel the marketing value of business. The manipulation of the following marketing variables namely price variation and price promotion, research, advertising, product differentiation, quality, packaging and place will yield increased returns for firms
Marketing strategies in commercial banks serve as the fundamental components of marketing plans designed to fill market needs and reach marketing objectives. Marketing strategy involves careful scanning of the internal environmental factors including marketing mix, plus performance analysis and strategic constraints. While external environmental factors include customer analysis as well as evaluation of the element of technological, economic, cultural or political/legal environment likely to impact success.
Marketing strategy in commercial Banks in Nigeria is basically designed to direct the flow of banking services profitably to target customers. The need for an effective marketing strategy stems from intense competition, not just from bank but other financial organization. Therefore banks strategize their marketing to create customer value as well as to establish customer need and to provide needs, in-order to add more value to their service and gain competitive advantage.
However, there are challenges in measuring market strategies in relations to productivity. Indeed several researchers indicate that there is a gab in this regard (Okoh, 2009). It is against this, that the researcher consider the subject matter as a problem worthy of investigation.
1.2 Statement Of The Problem
The study addresses the challenges of measuring marketing strategy in relation of productivity which has not been addressed by previous research and marketing text in Nigeria.
In view of this, majority of banks in Nigeria have developed concrete strategic plans to increase their business, a strategy towards increasing the penetration levels within the Nigerian banking industry. Some of the marketing strategies put forward are: – intensified marketing activities locally (through market penetration, market development and product development strategies), increased the level of customer service and focus in all departments of the company; intensified personal selling as a marketing communication strategy and pursue a competition oriented pricing strategy in all markets, (Osalo, 2007). In order to operationalize these market driven business objectives, it’s critical to have in place some silent strategies that fuel them such as sales promotion, market intelligence and product innovation.
The argument is that the major contributors to the sector productivity are the marketing strategies adopted by banks. It is important to emphasize that good marketing practices by banks in Nigeria is imperative if the industry is to effectively play a key role in the overall development of the country.
From this study’s background information, productivity and achievements of most banks depends largely on the use of effective marketing strategies that are tailor-made to suit customer needs among other strategies. It is evident from this argument that the development and implementation of effective marketing strategy is a very important function for an organization.
1.3 Objective Of The Study
The central objective of this study is to examine the impact of marketing strategies on productivity other specific objectives are:
- To examine if the marketing strategies are managed in-house or outsourced.
- To assess the social media strategies used to manage the marketing function.
- To examine how decision-making processes are influenced by marketing strategies.
- To examine how the organization productivity helped the organization to succeed?
- To determine the marketing strategies attributed to the productivity of the organization.
1.4 Research questions
- Explain how the marketing strategies are managed either in-house or outsourced?
- What social media strategies are used to manage the marketing function?
- How is decision-making processes influenced by marketing strategies?
- How has the organization productivity helped the organization to succeed?
- What marketing strategies attributeto the productivity of the organization?
1.5 Hypotheses of the study
- H1: Marketing strategies have positive significant effect on Organization Productivity.
H2: Services strategies have positive significant effect on organizational productivity.
- H3: Price strategies have positive significant effect on organizational productivity.
H4: Promotion strategies have positive significant effect on organizational productivity.
- H5: Place strategies have positive significant effect on organizational productivity.
H6: After registration services strategy has positive significant effect on organizational productivity.
- H7: Higher education marketing strategies have positive significant effect on organizational productivity.
H8: Social media marketing strategies have positive significant effect on organizational productivity.
1.6 Significance of the study
The relationship between marketing strategies and business sustainability needed further investigation for small business survival because small businesses have been able to expand local economies by offering employment opportunities. The study goal was to determine the pattern of business startups that survive the first 5 years; interpreted through interviews with bank students, staff, and employees. The researcher’s intent was to understand the effect of marketing strategies on small business startups, having completed the first 5 years in business, by studying marketing and decision-making practices of successful businesses.
The government and other institutions involved in the country’s policy formulation cannot overlook the banking sector as one of the major contributor to the country’s GDP. The findings from this study will therefore be of importance because they will have the capacity of being used to formulate positive fiscal policies which are relevant and sensitive to the forces influencing the banking sector productivity and penetration in Nigeria.
To those who have scholarly interest in marketing of banks and overall financial sector, this study will provide a source of reference; literature review and basis upon which further studies can be developed.
1.7 Scope of the study
The study is carried out within Asaba metropolis, Oshimili south local government area of delta state, Nigeria. The study focuses on the banking system and selects first bank as the case study. The sampling objects used in the study are executives and customer of both banks. It is presumed that this group of people could provide more information to the question contained in the questionnaire relating to the title of the study.
Quantitative research methods have strengths and weaknesses, and are vulnerable to subjectively, which affects research negatively (Diefenbach, 2009). Research methods come with strengths and weaknesses; challenges beyond the researchers’ control, which limit the study (Diefenbach, 2009). The first limitation was that the research was restricted to a single case study. To an extent, generalizing the results of a single case study could cause difficulties when attempting to assign the outcome(s) to the business population as a whole.
Also, depending on the small business, the sample size of participants within the area could pose difficulties for a single case study. The second limitation was that the researchers decided to use an educational type of business for the study. The data collected from interviews by questionnaire 100 insufficient may not have provided adequate information to analyze the bank whereas a larger business could have offered larger amounts of samples. The results could differ from a small manufacturing or merchandising company.
Conclusion And Recommendations
The study investigates the effect of marketing strategy on organization productivity: case of First bank. The study found that marketing strategies (Service Strategy (SS), Pricing Strategy (PS), Promotions Strategy (PRS), Place Strategy (PLS), After Sales Service Strategy (ASSS), Bank Marketing Strategies (BMS), and Social Media Marketing Strategies (SMMS) were significantly independent and joint predictors of organization productivity. The study however, discovered that promotion has strongest positive significant effect on organization productivity. The study conforms to the positions of except the result of promotion which has contrary opinion to the previous researches. Therefore, banks operators should produce quality more services; charge competitive prices, position appropriately, use attractive services for the bank, engage in after sales service and provide other distinctive functional benefits to students.
5.2 Implications for Management Practice
This research should provide several important findings for management practice. These include: (1) the change in productivity metrics may be equally if not more important than the value of the metric itself; (2) the productivity measures that discriminate between high and low performing origination; (3) the development of financial productivity composite measures that can be used as a proxy for market-based measures when either no market information or inefficient market information is available; (4) the importance of using financial productivity metrics that are appropriate to the timeframe being examined; and (5) the importance of using a combination of financial and non-financial metrics that are tailored to the specific circumstances of an organization to predict and explain the change in shareholder returns. Potentially the most important finding for practitioners is the fact that the change in productivity metrics should be considered equally, if not more important, than the value of the metric itself.
Those productivity metrics that have been shown in this research to discriminate between high and low performing organizations should receive the primary attention of management and users of financial statements. Those organizations that attain and sustain competitive advantage in the market do not strive to be average. Therefore, the metrics they use to gauge productivity should focus on outcomes that set them apart from the competition. While market-based measures may provide management with the best indication of the value they are creating for shareholders, markets only react to information that is available outside the organization. During the interim periods between private disclosure of productivity information, management needs metrics to estimate the market response to new financial information when it is disclosed.
5.3 Research Contributions
This research makes several unique contributions to the understanding of organization productivity measurement for both research and management practice. Specifically, this research
- Demonstrated that the change in productivity metrics provides unique and significant information about shareholder returns;
- Identified the most frequently used marketing strategies productivity measures that discriminated between high and low performing organization with respect to shareholder returns;
- Tested the relative information content of individual productivity measures with respect to shareholder returns;
- Identified several distinct dimensions of marketing productivity and measures of them;
- Developed and tested multidimensional models of organization productivity.
The summary of productivity measures presented in this research found that the changes in organization productivity metrics are not generally used in empirical research. This is consistent with the results of prior research that examined the productivity measures used in entrepreneurship and strategic management research. Further, no prior research specifically tested and quantified the information content of the changes in financial productivity measures. This dissertation is the first and only studies in the fields of marketing strategies to demonstrate that the change in organization productivity which provides significant and unique information about organization.
Based on the research findings, the researcher made some recommendations that are aimed at strengthening the company’s performance within the banking industry.
The researcher recommended that companies should strengthen their research portfolio. Improved research will enable firms to develop more effective customer retention strategies by identifying both their “at risk” and most valuable customers. In doing so these firms will increase customer retention, acquire profitable customers and create more effective cross-selling and up-selling strategies.
Banks in Nigeria should develop more focused marketing and sales campaigns this will enable enables marketers to plan marketing programs and campaigns—and closely monitor results—using skills they already have. Marketers will receive a complete, current view of their customers, and insight into customer attitudes and behavior through this approach and hence build on the company competitive advantage.
To build on competitive advantage through marketing strategies banks in Nigeria should understand the similarities and differences among customers in specific geographic regions and demographic segments in order to serve their customer better — especially on varied population. Segmenting will enable these firms to create more precise campaigns, rather than sending general offers to the entire customer database.
Finally the researcher continues to recommend the following quick win strategies for both companies: – Optimizing the company customer relationship management strategy to improve the customer experience and increase retention; Leveraging companies marketing, branding and customer self-care strategies to build customer loyalty and Strategic partnership in key areas such as technology, promotions and community social responsibility.
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