CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability. It’s the strategic business function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits. By operating customer-centrically, marketing brings positive returns on investment, satisfies shareholders and stakeholders from business and the community, and contributes to positive behavioral change and a sustainable business future (CIM, 2007). Marketing helps organizations to respond to the needs and wants of customers and compete effectively.

        According to Kotler, Armstrong, & Cunningham (2005), an effective marketing strategy combines the 4 Ps (Product, Price, Place and Promotion) of the marketing mix. It is designed to meet the company’s marketing objectives by providing its customers with value. The 4 Ps of the marketing mix are related, and combine to establish the product’s position within its target markets. Marketing is the activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure.

        However, marketing is what a company does to acquire customers and maintain a relationship with them. Even the small tasks like writing thank-you letters, playing golf with a prospective client, returning calls promptly and meeting with a past client for coffee can be thought of as marketing.

The ultimate goal of marketing is to match a company's products and services to the people who need and want them, thereby ensure profitability. A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need (Kotler).The goods and service combination the firm offers to the target market, including variety of product mix, features, designs, packaging, sizes, services, warrantees and return policies.

Price is the amount of money a consumer is willing to pay to obtain the product. This includes wholesale/retail/promotional prices, discounts, trade in allowances, quantity discounts, credit terms, sales and payment periods and credit terms. Pricing decision making also involves adjusting prices concerning the competitive environment, economic situations and involve buyer perceptions. Other factors of marketing mix include Place/Distribution which refers to the company’s activities that make the product available, using distribution and trade channels, coverage, assortments, locations, inventory and transport. Typical supply chain consists of four links in the chain: Producer/Factory/Manufacturer, Distributor, Wholesaler, Retailer supplying the consumer and user (Principles of Marketing, Kotler and Armstrong, 2012).

1.2 STATEMENT OF RESEARCH PROBLEM

The manufacturing sector has contributed a lot in the socio-economic development in Nigeria; despite their contribution there are still some lapses in the area of their ability to adopt a good marketing strategy that will influence consumer behavior. Most organizations/firm failed to utilize all the tools (mass media, social media and other form of advertisement) for effective marketing of their products and this a clog on the wheel on organizational performance.

1.3 AIM AND OBJECTIVES OF STUDY

The main aim of the research work is to determine the effect of marketing strategy on consumer behavior. Other specific objectives of the study are:

1. to determine the relationship between effective marketing strategy and consumer behavior
2. to investigate on other factors of affecting  consumer behavior
3. to examine the perception of consumers on marketing strategies adopted by most firms in Nigeria
4. to determine whether marketing strategies affect consumers’ decision making
5. to proffer solution to the above stated problem

1.4 RESEARCH QUESTIONS

The study came up with research questions so as to ascertain the above stated objectives of the study. The research questions for the study are:

1. What is the relationship between effective marketing strategy and consumer behavior?
2. What are factors of affecting consumer behavior?
3. What is the perception of consumers on marketing strategies adopted by most firms in Nigeria?
4. Does marketing strategy affect consumers’ decision making?

1.5 STATEMENT OF RESEARCH HYPOTHESIS

H0: there is no significant relationship between effective marketing strategy and consumer behavior

H1: there is significant relationship between effective marketing strategy and consumer behavior

1.6 SIGNIFICANCE OF STUDY

The study on the effect of marketing strategy on consumer behavior will be of immense benefit to the firms in Nigeria, the consumers and other researchers that desire to carry out similar research on the above topic as the findings of the study will educate the above population on the marketing, marketing strategies, types of markets and the effect of marketing strategy on consumer behaviour. Finally the study will contribute to the body of existing literature and knowledge in this field of study and provide a basis for further research.

1.7 SCOPE OF STUDY

The study on the effect of marketing strategy on consumer behavior will cover on the marketing, marketing strategies, types of markets and the effect of marketing strategy on consumer behavior.

1.8 LIMIATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

1.9 DEFINITION OF TERMS

Marketing: This was defined by (Peter Drucker, 1973) as human activity directed at satisfying need and wants through exchange processes. However, (Wroe Anderson, 1976) equally defined marketing as individual and organizational activities aimed at facilitating and expediting exchanges within a set of dynamic environmental forces.

Marketing Concept: This is a philosophy of business that states the customers’ want-satisfaction is the economic and society justification for a firm existence. It stresses that the emphasizes on all business activities should be focused or geared towards the satisfaction of the customers.

Marketing Environment: This refers to all factors and forces both internal and external that influences the marketing decision making. The internal forces are controllable which includes the organizational structure, the 4M’s i.e. Man, Money, Machine and Materials.

        However, the external forces which are uncontrollable falls outside the firm, constitute the greatest opportunities and threats to the firm. These include economic condition, socio-cultural influences, competitors, customers, political and legal environment, international influences, technological factors e.t.c.

Product: A product can be an idea, a service, a good or any combination of these three. It could also be defined as anything that can be offered to the market for attention, acquisition, use or consumption that will satisfy a need. This implies that product include physical, objects, services, persons, places, organization and ideas.

Marketing Strategies: This is a written plan, usually comprehensive describing all activities involved in achieving a particular marketing objective and their relationship to one another in both time and magnitude, it will include short and long term sales forecast, production and profit target, pricing policy, promotional and selling strategy, staffing requirement as well as the selected marketing mix and expense budget.