Role And Importance Of Marketing To Manufacturing Firms In A Competitive Market Environment (A Case Study Of De-United Foods Industry Limited. Producer Of Indomie Instant Noodles)
The primary objective for any profit oriented organization in to maximize profit and minimize lost among other objective. This in that survival mechanize for such organization. However, achieving these stated objectives and others given along with some environment elements which are not within the control and capacity of the organization. Among these external elements or environment factoring competition. The nature diversity and dynamic competition in the market determines the strategy and traffics that will be formulated and adopted in dealing with such environmental factor. Among several available strategy that could be adopted includes promotion which its integral part is marketing. This research project will evaluated the importance and significant role of marketing to manufacturing firm in a competitive market environment taking DE –UNITED FOOD INDUSTRY as a case of study. The project concluded that any manufacturing organization that is profit oriented should adopted marketing concept strategy. This will enable organization to fully understand the fundamental needs and desire of the target market there by gaining competitive advantage over other competition. The project recommends that the primary objective of any manufacturing organization will and can be fully accomplished if marketing concept is adopted and fully frizzed in a competitive environment.
Table of Contents
- Title Page
- Table Of Content
Background of the Study
- 1.1 Introduction
- 1.2 Statement of the Study
- 1.3 Aim and Objective of the Study
- 1.4 Significance of the Study
- 1.5 Scope of the Study
- 1.6 Definition of Term
- 2.1 Concept of Marketing
- 2.2 Concept of Competitive Environment
- 2.3 Benefits of Marketing to Manufacturing Firm
- 2.4 The Function of Marketing in Manufacturing Firms
- 2.5 Types of Marketing Concept
- 3.1 Research Design
- 3.2 Population and Sample Size
- 3.3 Method of Data Collection
- 3.4 Data Presentation And Analysis Techniques
Data Analysis and Presentation
- 4.1 Brief History of De-United Food Industry Limited
- 4.2 Data Presentation
- 4.3 Data Analysis And Hypothesis Techniques
- 4.4 Data Analysis
Summary Conclusion and Recommendation
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendation
Background of the Study
In the ancient times, there was no marketing because individual tended to be self sufficient, growing and producing things that they needed to satisfy their basic need. There was therefore almost no exchange of commodities and hence no desire for the market place. As time passes, however, the concept of division of labour our evolved, people began to concentrate on producing the items which they did not have. This brought about specialization in the production system. Thus people began to exchange goods with goods, a system known as trade by barter.
After this stage, comes the existence of a medium for exchange called money. The introduction of money in business transaction leads to more advanced and rapid exchange system. The introduction of money as a suitable medium of exchange also led to the evolution of modern industries which undertake high production of commodities, thereby improving the marketing sector of the production system.
Exchange involves not merely a transfer of value between the contracting parties but a positive gain in value arising from the exchange, is greater than it was before the exchange takes place. The exchange was largely saved on the production of the basic needs which usually ware cleared to marketing.
With the growth of time which resulted to industrial revolution, there was evolution of marketing, producers manufacturing their goods in large quantities in anticipation of future demands. There and then, marketing become the most important sector emphasized by all manufacturing firms.
According to Philip Kotler, in his book, principle of marketing practice, the forth edition inc.1980 page 15, defined marketing as “A set off principle for choosing target market measuring their need, developing want satisfying product and services and delivering them at a value to the company. From the definition, marketing process is aimed at getting the right goods to the company. From the definition, marketing process is aimed at the right people in the right time.
This means that the activities designed to make commodities available at either tine or places where they are more in demand at times. In this present age charges, marketing is the heart beat or beating heart of many business operation. A manufacture firm which has little or no knowledge of marketing jeopardizing the probability achieving the primary objective, which is profit maximization especially in this age where many firms and product are having a strong competition with each other.
Marketing therefore is an integral part for manufacturing organization to succeed. Marketing should be taken into consideration especially with the use of marketing strategies by a firm facing competition with each other firm.
Finally marketing is the most vital way of an organization to make profit, without which an organization cannot achieve its objectives which is maximize profit.
1.2 Statement of the Study
The statement of this research study highlights problems and challenges encounter by the organization in the present of achieving the pre-determine objectives, which is profit –maximization through increase in demand volume for the product produced.
During the course of this project, it was discovered that the sales volume and the demand ratio for the company’s product drastically reduced from 95% sales volume 87% sales volume.
Additional, it was also detected that the customer base ratio also falls within the context of the selected geographically places where the research study was conducted.
While the brand image or the goodwill of the company and its recognition and public acceptance reduce all due to the impact of competition in market.
The selling concept policy which is adopted by the management of the organization goes a way in reducing the brand loyalty and recognition from the customer, both from the actual consumer and other prospective customer of the company’s product (INDOMIE INSTANT NOODLES). This is due to the fact that consumers are more aware of their right and freedom in relation to the purchase as goods produced for consumption and services tendered are concerned.
1.3 Aim and Objective of the Study
The aim of this research project is to highlight the roles and importance of marketing in a competitive environment. Hence, the following objectives are achieved during the time the research project was conducted in relation to food industries market, work reference to DE-UNITED INDUSTRY, producer of INDOMIE INSTANT NOODLES.
The research project enables the organization concerned to understand the determinant factors responsible for the decrease or fall in sales volume from 95% sales ration to 87% sales ration. The decrease in sales volume is as a result of the inception of various industries producing related product. Introduction of new related product from competing industries couple with the failure on the part of (DE-UNITED) Industry to systematically analyze its product performance against standard drastically reduce the sales volume.
Another objective of this research project is to expanciate on the significant roles of marketing concept policy in a competitive environment in relation to the selling concept policy adopted by the management of DE – UNITED INDUSTRY.
Marketing concept (Philip Kottler, 1993, 4th Edition) holds to the view that satisfying consumer needs effectively is a pre-requisition for achieving the pre-determined objective of my manufacturing organization.
While selling concept holds to the view that the primary objective of any established organization is to maximize profit irrespective of consumer frame of mind.
Therefore, De-United Industry management should adopt marketing concept policy which will help to create delighted customer through satisfaction of their basic needs, which will in turn yield optimum profit from increase in sales volume.
Recommend solution to some of the problems the company might be facing which might also be useful to other competitive firms.
1.4 Significance of the Study
The significance of the study to researcher, the government and the company, De-United Food Industry cannot be over emphasized. The researcher gains more knowledge in the process of gathering information about this research work. Also, it is a partial fulfillment for the award of Higher National Diploma (HND) in marketing.
The government itself controls and owns a cost of industries or business units at home and abroad. Therefore, an appreciation of the need for this research work will enlighten the government on international market segmentation and reveal the domestic and foreign opportunities for the government owned industries.
The company, De-United Food Industry will gain more information about the market for its product and can use such information to appraise the national and significance of market segmentation and target marketing to its business success.
1.5 Scope of the Study
The scope of this research study cover the duration of time used during the research project, the geographical distance covered as at the time the research was conducted the financial constraint encountered and the challenges faced in getting relevance and coherent response from the targeted and selected audience.
The research project was conducted within the period of two (2) semester starting from December 2011 to June 2012. This is due to the availability of limited time which was carefully apportioned among other academic work besides project work.
The research study limited its findings to the consumption pattern of varieties of DE-UNITED FOOD INDUSTRY within Ilorin Metropolis, specifically between ELERO and SANGO Metropolis.
The financial incapability of the researcher limited the geographical distance covered during the time the project was conducted. However, the financial constraint experienced was eased by the contribution gotten from friends and relatives.
Additionally, most of the respondents are not willing to divulge and information regarding their perception of the product (INDOMIE) produced by DE-UNITED FOOD INDUSTRY in relation to other related products produced by several competing firms. However, with consistency and assurance that any information given will only be attributed for the purpose of the research project and report writing, the respondent feel at ease in responding to the question asked.
1.6 Definition of Term
In the presentation of this project work, there are some important terminologies that are peculiar to the topic under discussion which may not be understood by some readers of this project such as marketing, market targeting, and market segmentation etc. there are defined below:
According to British Institute of Marketing (B.I.M) annual report paper of 1982, 3rd edition, page 3, defines marketing as “the management process responsible for identifying, anticipating and satisfying customer requirement profitably.
While the American Marketing Association (AMA) in its own answer report of 1981, 5th edition, page 4, defined marketing as “The performance of all business activities that direct the flow of goods and services from producer to customer or users”. The process is a society by which the demand for economic goods and services are anticipated or enlarged and satisfied through the conception physical distribution and exchange of such goods and services.
Marketing concept holds to the fact that the key for achieving organization pre-determined goals and objectives is determining the needs and wants of target market and delivering the desired satisfaction more efficiently and effectively than other competitors.
A particular potential market consists of people with similar need for particular goods and services, sufficient resources to make a purchase and willingness and ability to buy.
Marketing segmentation can be defined as the analysis of a target market into several component homogeneous part in such a way that set of buyers can be differentiated.
This is a process of selecting carefully a portion of the market and designing a product to meet the requirement of that particular portion of the market. Market segmentation reveals the market segment, divide the opportunity facing the organization. At a point, the organization has to decide between ways and types of organization market selection strategies to be adopted.
Here, the firm decides to operate to several segment of the market and designs, separate product for each identified market segment.
Here the firms go after one particular market segment and develop the idea product or them.
The organization might ignore segment differences and to offer the whole market with one product offer. T eh organization does this by identifying what is common in the needs of consumer rather than what is different.
Target market is specific group of people to whom an organization marketing effort is directed.
This refers tot eh set of controllable variable that firms use to influence the target market to achieve its objectives.
This refers to everything both favorable and unfavorable that one receives in an exchange for its evaluated value usually in monetary term. It can be an idea, service, goods or services or both.
This refers to people who patronize a particular product or service to satisfy variety of their needs.
Summary Conclusion and Recommendation
The main objective of this projects in to explore in dept, the significant role and importance of marketing in manufacturing firm and to justify the main reason for high prices on those product to the consumer especially in a competitive market environment.
The study reveals that the company pricing policy is not stable (non – consistent) and even the price change affects their branches patronage. The researcher was able to discover the most of the management do not advertise their product accurately and some do not use the sight media for the advertisement.
Also, the researcher discovered that some consumers do not want to buy indamines instant noodles any move because the quality for which it was known before has deduced and it is too sweet companied with the rest of other blanch and they promised to improve on those companies of the consumers.
The researcher was also able to discover during the research findings that young ones (especially babied of younger ages) constitute the layout consumers to purchase because of the high price, these by reducing their interest and changing their taste to other branches. The findings show that the company possess bock the technical know –how and managerial potentials required of a leader of instant noodles industry.
The researcher discovered that their in a high competition among concession granted that distributors which affect the purchase of instant noodles.
Finally, the findings reverse that out of the total respondents, majority claim to have tasted the DE- UNITED FOODS INDUSTRY LIMITED’S product (i.e.) indamines instant noodles. This indicates that they have the layout share of the total market share and their marketing strategy affects other manufacture of instant noodles.
Most people think that marketing is merely the disposal of output of producers, rather, it in the guiding force that directs production through identifying the understanding consumer desire.(i.e.) it enable the manufactures to know what consumers want in a given product, the target market and how the product should be designed and priced. The type of middlemen to be used by the firm and type of advertisement or promotion to be adopted.
Also, marketing to manufacturing from provide the stimulant upon which and the economy of the firm and the society in based, without marketing of products and services, it will not be possible to maximize profit by the firm concerned. The objective of most company in to maximize profit which can and will only be realized when there is reasonable sales or firm over of the products and services.
There is also a lot of benefit in marketing, in that it improves the standard of living of the consumers and it also aids technological progress of a firm. Marketing also enable a manufacturer to position his product or service to a particular segment of the consumers instead of positioning it to all segment of the consumers.
Presently, competition is becoming move still among companies. Marketing enable companies to differentiate itself from other competition in the mind of the consumers. Marketing is the most ritual way for any organization to achieve its objective.
The marketing executive should try to protect their product (anomie instant noodles) with most compatible segment of the market. A simple approach to segmentation is to divide the market into segment using factors such as “AGE, SEX AND EDUCATION” and then geographical location from the data analyzed, the researcher was able to discover that those of that falls between B and 25 consumers noodle most having the high percentage of the market and therefore the organization should position the product to this target market. Also, the marketing planner obviously should constantly study the reaction of the market to discord the emergent of new significant differences for the consumers.
For an advertised product, their should be a unified segment differences for the consumers in the company product from that of this competitors (i.e) their should be a ward in the product in the best.
Furthermore, the marketing executives of various manufacturing companies should encourage and continue to embark on advertising programs of the rest of their brand of product of being market since it has effect in terms of states increase and questionnaire.
This will have a position impact on the company’s economy and the society as a whole. The company should strive to make a conscious attempt to deliver adequate stock to their consumers.
Also market of indamines instant noodles should try as much as possible to we ate a good sales department bearing in mind that selling in the livewire of any baroness and that nothing happens unit some-one sell some things.
Management must be very careful in selling or determine the price for this might affect both short and long run objectives of the company, such as increase in market share, company profit target and liquidity target etc, must also be taken into consideration.
The company should try as much as possible to verify the locality from which the distributors come in order to have a fair distribution all over the state and the federation. The company should bear in mind that the product should be well packed so as to prevent breakage. Also the company should ensure that the containers attractive to the eyes of the consumers.
In addition the company should review the financial strength of the distributors whether they are still capable of being given one type of financial concession or not some of distributors due. Reviewing this frequency will make the company see that the distributors are educated on the quality, price and type of nourishment provided by instant noodles and the advantages they have over other competitors of other instant noodles manufacture in the market.
Firms should be considered as an efficient backbone for establishing direct and cordial relationship word the customers/consumers and this must be property planned and executed otherwise, it could had to low productions level of the firms.
This however calls for the need to critically scrutinize and evaluate the significant role and importance of marketing to the manufacturing firms in a competitive market environment.
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