Full Project – THE EFFECTS OF MARKETING COMMUNICATION MIX ON THE SALES VOLUME IN THE DETERGENT INDUSTRY

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THE EFFECTS OF MARKETING COMMUNICATION MIX ON THE SALES VOLUME IN THE DETERGENT INDUSTRY.

(A CASE STUDY OF PZ NIGERIA PLC ABA)

ABSTRACT

The research project deals with the business of investigating the effects of marketing communication mix on the sales volume in the Detergent industry, using PZ Nigeria plc, Aba as a case study. The objective of the research work among others were to know the role of marketing communication mix on the advertising media selection, sales promotion campaign influence the volume of the detergent product. 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 mix help in achievement of increase in sales volume of detergent, and does marketing communication mix contribute in increasing the potential customers and retaining the actual customers etc. the researcher used a population of 70 which comprised all the staff in the marketing department of PZ Nigeria PZ Aba with a sample size of 50 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 mix and increase on the sales volume of the detergent product 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.

TABLE OF CONTENTS

Chapter One

INTRODUCTION

1.1        Background Of The Study

1.1.1          Profile Of The Company Of Case Study

1.2           Statement Of The Problem

1.3           Objective Of The Study

1.4           Research Questions

1.5           Research Hypothesis

1.6           Significance Of The Study

1.7           Scope And Limitations of the study

1.8           definition of terms

Chapter Two

REVIEW OF RELATED LITERATURE

2.1        Introduction

2.2        Sales Promotion

2.3         Advertising

2.4        History Of Advertising

2.5        Personal Selling

2.6        Current Literature On Marketing

Communication Mix

2.7    Summary

Chapter Three

RESEARCH METHODOLOGY

3.1        Research Methodology

3.2        Areas Of Study

3.3        Population Of The Study

3.4        Sample And Sampling Technique

3.5        Method Of Data Collection

3.6        Method Of Data Analysis

Chapter Four

PRESENTATION AND ANALYSIS OF DATA

4.1 Question By Question Analysis Of The Investigate Research Question

4.2 Testing F Hypothesis

4.3 Discussion Of Finding

4.4 Finding Of The Study

Chapter Five

5.0 Summary, Conclusion And Recommendation

5.1 Restatement Of The Study

5.2 Summary Of Finding

5.3 Conclusions

5.4 Recommendations

5.5 Suggestions For Further Study

References

          Appendixes

LIST OF TABLES

4.1        Shows the responses as to whether marketing communication mix motivates customers to purchase more

4.2        Shows whether the respondents have bought and used the elephant blue detergent before

4.3        Shows the responses as to what prompt the buyer  to buy  the detergent product.

4.4        Shows  the responses as to which promo tool is more effective in stimulating  buyer’s interest

4.5        Shows the responses as to whether marketing communication mix help in the achievement of sales target.

4.6        Shows whether there is any relationship between marketing communication mix and increase in sales volume.

4.7        Shows the responses as to whether marketing communication mix help to influence consumer buying behaviour.

4.8        Shows the stage of product life cyel at which elephant blue detergent   find advertising necessary

4.9        Shows  the stage of product life cycle at which elephant blue detergent find personal selling necessary

4.10    Shows the stage  of product life cycle at which elephant  blue detergent finds sales  promotion necessary

4.11    Shows  whether marketing communication mix help to increase market share in the detergent industry

4.12    Shows whether marketing communication mix help to trigger trail purchase of the detergent product.

4.13    Shows the response as to whether marketing communication mix help to retain the actual customers of the firm.

4.14     Shows whether marketing communication mix encourage repeat purchase of the detergent product

4.15    Shows whether marketing communication mix help to attract new  customer or user of the detergent product

4.16    Show whether marketing communication mix makes customers to develop brand loyalty.

4.17    Shows the responses as to whether marketing communication mix help to promote the image of the firm.

4.18    Shows whether marketing communication mix help to capture the interest of the potential customers.

4.19    Shows  the responses  as to how much  the company may spend on marketing communication mix annually

4.20    Shows whether marketing communication help to stimulate consumer purchase and dealers effectiveness.

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

One of the element of marketing mix 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 mix 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 mix 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 mix 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 mix. 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 mix consists of eight major modes of communication which are

1. Advertising
2. Sales promotion
3. Events and experiences
4. Public Relations and publicity
5. Direct marketing
6. Interactive marketing
7. Word of mouth marketing and
8. Personal selling

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

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

1.1.1 PROFILE OF THE COMPANY OF CASE STUDY.

The company was incorporated on 4th December, 1984 under the name of P.B  Nicholas Peterson Zochonis (PZ) and company limited of Manchester subscribed 75.5 percent of the company’s issued, or through subsidiary companies, retained the controlling interest.

Pz itself incorporated in England in 1884 which become a public company quoted on the London and Northern stocks exchange in 1953 its principal activity is that of general merchants in west African and it has been established in this capacity in Nigeria since 1899. Peterson Zochonis (pz) interest now include industrial ventures in Nigeria, Ghana and Sierra Leon and textiles whole selling in the united kingdom.

In 1951 Mr. P.B Nicholas sold out his interest in the company to P.Z in 1960 the company achieved its first indigenous Nigeria Equity participation and by the end of 1972, it had sold 10 percent of its share capital to Indigenous Nigerians.

In accordance with the federal government directives (indispensation act) it sold another 20 percent its shares to Nigerians in 1976, Thus bringing the equity share participation to 60 percent in favour of Nigerians. A year after, new factory building were created and modern soap making equipment installed at Aba, thereby export of glycerin and oil cake, buy products of the soap making process which utilized substantial tonnage of palm oil and other vegetable oil purchased locally.

The increasing popularity of detergents indicated by market surveys gave rise to decision to extent the range of products to include detergent factory premises for this purpose were erected Ilupeju Lagos.

In pursuance of this expenses policy a modern detergent factory complex was constructed at Ikorondu Lagos and production now on.

1.2    STATEMENT OF THE PROBLEM

The problem is that in our present society there are some competitors who produce detergent that are similar to the one P.Z 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 mix to enable them increase the volume of their sales in the detergent 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 mix 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 effect of marketing communication mix on ales volume in the detergent industry. The following under listed points are the major objectives of this research work.

1. To determine how marketing communication mix help in the sales volume of the detergent product in the pz company.
2. To find out how marketing communication mix affect the distribution channel of the detergent product.
3. To know the role of marketing communication mix in the sales volume of detergent product.
4. To find out how advertising media selection and sales promotion campaign influence the sales volume of the detergent.
5. To examine how product serves as a tool for marketing communication mix.

1.4       RESEARCH QUESTIONS

1.       Does marketing communication mix help in the achievement of sales volume of detergent?

2.       Dose marketing communication mix has any relationship between sales volume of detergent?

3.       Dose marketing communication mix help to influence customers buying behaviour?

4.       Dose marketing communication mix 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.

Ho: Marketing communication mix does not help in the achievement of sales volume of detergent.

Hi: Marketing communication mix help in the achievement of     sales volume of detergent.

Ho: There is no relationship between marketing       communication mix and increase in sales volume.

Hi: There is relationship between marketing communication       mix and increase in sale volume.

Ho: Marketing communication mix dose not help to influence     consumer behaviour.

Hi: Marketing communication mix helps to influence         consumer buying behaviour.

1.6       SIGNIFICANCE OF THE STUDY

The relevance of the research work include the following.

a.       To me as a student: it is pre –requisite for the award of Higher National Diploma (HDN) in marketing under the school of business and management Technology Abia state Polytechnic Aba. It also serves as a means of bracketing my knowledge in the marketing field.

b.       To companies in detergent industry it help producers of detergent to discover the various effective means of directing their products to potential customers and thereafter increase sales volume of their products.

c.       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       SCOPE AND LIMITATION OF THE STUDY

The area covered in this study include sales promotions advertising, (history of advertising, advertising agencies and their duties and personal selling. The research was structure and focused on PZ Nigeria plc, Aba the population sample was selected from those working in the marketing department of pz Nigeria plc, Aba which the total population is about 70.The researcher used sample size of 35 respondents. The limitations of the work are many and varied but the following are the out standing ones.

i.        Time constraints: The period for this work is too short, hence it is too tasking especially when it has to be combined with routine lectures.

ii.        Inadequate of materials: Academic material on marketing communication mix are not sufficient enough for the study. This means that I had to go out and visit several libraries in search for relevant materials with the title resources available to me acquiring these material became a problem.

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