APPRAISAL OF MARKETING COMMUNICATIONS AS A STRATEGIC TOOL FOR ENHANCING MARKETING PERFORMANCE OF FRUIT DRINKS (A STUDY OF COCACOLA 5-ALIVE JUICE)

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ABSTRACT

The need for an organization to properly coordinate its marketing communications strategies in order to achieve a clear, consistent and competitive message about itself and its product has become issue of concern to every result driven firm. The study is aimed at examining the impact of integrated marketing communications in the overall performance of consumers patronage of Nigerian bottling company. The objectives of this research among others are to (i) To determine the effect of Advertising on the customer patronage of 5Alive fruit drinks. (ii) To examine how Sales Promotion enhances sales volume of 5Alive fruit drinks. (iii) To determine the impact of integrated marketing communications (IMC) in the overall performance of the Nigerian bottling company. The researcher adopted descriptive research design using a mixture of survey and ex-post facto methods and two hundred and ninety-seven (297) structured questionnaires were distributed among sampled respondents in owerri metropolis and studied in other to achieve the objective of the study. Then Out of (297) questionnaires administered to respondents, 280 questionnaires representing 94.3% were carefully filled and returned. The researcher also adopted primary data in gathering the required information’s.

 In analyzing data, the researcher used suitable statistical tool chi-square (X2) and three hypotheses were also tested and analyzed. Based on the data collected and analyzed, the researcher found out among others that marketing communications tools enhances consumer’s patronage and brand loyalty of 5Alive fruit drinks as well as its sales volume. In view of the findings, the researcher recommends; the need to study marketing communications tools in order to improve organizational profitability and growth; also that Producers of 5Alive and other players in the industry should explore the wonderful opportunities that are available to them through the application of marketing communications tools in enhancing sales volume.





TABLE OF CONTENTS

 

Title page    .................................................................................................. i

Declaration  ..................................................................................................ii

Certification .................................................................................................iii                                                                                                         

Dedication ....................................................................................................iv

Acknowledgement ........................................................................................v

Table of Contents .........................................................................................vi

List of Tables................................................................................................vii

Abstract.........................................................................................................viii

                                                                                           

CHAPTER ONE

      

1.0 introduction……………………………………………………...............1

1.1       Background to the Study ……………………………………................1

       1.2         Statement of the Problem.......................................................................5

1.3      Objectives of the Study.........................................................................6

1.4      Research Questions...............................................................................6

1.5     Research Hypotheses.............................................................................7

1.6     Scope of the Study..................................................................................7

1.7    Significance of the Study..........................................................................7

1.8    Limitations of the Study..........................................................................8

 1.9    Definition of Terms.................................................................................8

CHAPTER  TWO

REVIEW OF RELATED LITERATURE

2.1     Overview of Integrated Marketing Communications (IMC)....................10

2.2     The Tools for Integrated Marketing Communications (IMC)..................12

2.3     Integrated marketing communications (IMC) as a Concept and Process..21

2.4       Integrated marketing communications (IMC)  Planning  Model ……………23

2.5     Models of Marketing Communication Process ..........................................24

CHAPTER THREE

RESEARCH METHODOLOGY

3.1         Research Design....................................................................................26

3.2        Area of the Study...................................................................................26

3.3       Population of the Study...........................................................................27

3.4       Sample Size Determination......................................................................27

3.5      Sampling Techniques………………………………………………………30

3.6         Method of Data Analysis………………….………………………………31

 

3. 7        Instrument for Data Collections...............................................................32

       3.8            Validity of the Research Instrument.........................................................32

3.9        Reliability of the Research Instrument…………………………………….32

3.9.1      Sources of Data…………………………………………………………….33

 

CHAPTER FOUR

4.0    DATA PRESENTATION AND ANALYSIS...............................................34

4.1    Test of Hypotheses.......................................................................................44

 

CHAPTER  FIVE

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1       Summary of Findings....................................................................................52

5.2 Conclusions...................................................................................................52

5.3 Recommendations..........................................................................................53

REFERENCES

APPENDIX

 

 

 

 

 

LIST OF TABLES


Table 4.1.1:   On Administration of Questionnaire.........................................34

Table 4.1.2:   On Sex Distribution of Respondents.........................................35

Table 4.1.3:  On Age Distribution of Respondents........................................35

Table 4.1.4:   On Educational Qualifications of Respondents.........................36

Table 4.1.5:   On Marital Status of Respondents.............................................36

Table 4.1.6:   On Occupation of Respondents..................................................37

Table 4.1.7      On Whether Respondents have Consumed 5ALive Fruit    Drinks.............................................................................................................37

Table 4.1.8:       If ‘‘YES’’ Which of the Fruit Drinks have you Consumed.............38

Table 4.1.9:   On whether the 5ALIVE  was so Tasty........................................39

Table                   Table  4.1.10:  On Whether Producers of 5ALive utilizes Marketing     Communication Tools.......................................................................................39

Table  4.1.11:    On whether Advertising encourages Consumer Patronage of 5ALive Fruit Drinks.......................................................................................................40


Table  4.1.12:      On whether Sales Promotion enhances Sales  Volume of 5Alive fruit   Drinks...............................................................................................41

Table 4.1.13:      On whether Marketing Communications Tools contributes to Brand

Loyalty of 5Alive fruit drinks............................................................42

Table 4.1.14:    On which Marketing Communications Tools enhances consumers 

                          Brand Loyalty of 5Alive fruit drinks.........................................42

Table 4.1.15:    On whether the company frequently redeems its pledges immediately/ during Sales Promotion .......................................................................43

 

 

 

 

                                              CHAPTER  ONE

                                             INTRODUCTION


1.1     Background to the Study

The need for an organization to properly coordinate its marketing                         communications strategies in order to deliver a clear, consistent, credible and competitive message about itself and its product has become a challenge today for every result oriented firm. Effective marketing communications should therefore be an integral part of every efficient and result driven organization. How innovative and creative marketing communications practitioners are inappropriately combining, coordinating and efficiently using marketing communication tools will have great impact on their companies’ products /services and by extension, on such products’ market share. This again could pose serious challenge to competing companies across markets in the country. The Integrated Marketing Communication (IMC) approach believes that a company must leave no chance for error, no patience for miscommunication, and no time for confusion. (Picton and Broderick, 2005).

Integrated marketing communication (IMC) is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines -general advertising direct response, sales promotion, and public relations and combines these disciplines to provide clarity, consistency, and maximum communications impact (Belch and Belch, 2009).The integrated marketing communication (IMC) approach placed much importance on the consistency of messages and as such avers that communications effort of an organization through its various products must project a synergized voice. According to Schultz and Kitchen (1997) as in Ehikwe (2005) business (companies) must be able to deliver the right message in the right medium to elicit the right results. A simple positive argument for integrated marketing communication (IMC) is that there are financial, competitive benefits to be achieved through the synergy afforded by the process of integration ( Peltier and Schultz, 2003,; Smith, 2002,; Schultz and Kitchen, 2000,; Thomas, 2001,; Picton and Hartley, 1998). Rather than being considered as a revolution in the marketing thought, integrated marketing communications (IMC) is gradually emerging as a natural evolution in marketing communications brought about by drastic changes in at least three main areas, which are : (i) the market place, (ii) the media and communications, (iii) the customers ( Kehinde,2009). These changes have been driven primarily by advancement in information and technology; and have caused a major shift from the mass marketing, product centered theories of marketing popularized in the 1950s and 1960s  to the more customer centered , database-driven interactive and measurable approaches of integrated marketing communications ( Schultz, 2003) as in Ehikwe (2005).

The development of integrated marketing communications can be traced to the early 1980s when many Americans advertising agencies started to feel threatened by their clients’ attempt to save money through direct media buying and patronage and creative boutique operations. Added to these forces were the inclinations of many advertisers to shift money from advertising to more immediate and effective aspect of marketing. These developments came to a climax towards the early part of 1990s when

advertising agencies started to offer more than their traditional functions of just producing and placing advertising in the media. The advertising agencies then saw that their survival in the turbulent decade of the 1980s depended on providing integrated strategies. The question one might ask here is “were advertising agencies not adding value to their clients’ programs before integrated marketing communications?” Of course, they were but not in ‘an integrated sense’.  Kliatchko (2005) opines that value added services need not to start and end in only advertising messages and strategies. But now, in an expanded view of advertising, advertising agencies must positively evolve specific promotional mix to provide clarity, consistency and maximum communication impact.  According to Belch and Belch (2015) during the 1980s, many companies began to take a broader perspective of marketing communication and seeing the need for a more strategic integration of their promotional tools. The decade was characterized by the rapid development of areas such as sales promotion, direct marketing, and public relations which began challenging advertising’s role as the form of marketing communication. These firms began moving toward the process of integrated marketing communications (IMC), which involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers.  Schimp (2000) summarized five facts of integrated marketing communications as:

(i). Aims to affect behavior

(ii). Starts with customers or prospects

(iii). Uses any and all forms of contents

(iv). Achieves synergy and

(v). Builds relationships.

 In this 21st century Nigerian marketing environment, many organizations have not appreciated the importance of the strategic blending of the promotional mix elements so as to produce cohesive, consistent, clear, precise and efficient messages. The common explanation is that through integrated marketing communications, a firm or manager can attain synergy between all the firm’s marketing communications activities and decisions. This synergy in turn improves performance. With the pace at which globalization is moving, there is need for Nigerian advertising agencies to wake up to a new reality in the marketing world ( Kehinde, 2009). The following reasons are why marketers are adopting integrated marketing communication approach according to Belch and Belch( 2015);

 “The understanding that the strategic integration of the various communication functions rather than having them operate autonomously would bring many added benefits to clients and customers. Advocates of integrated marketing communications (IMC) believe that it will help company maximize returns on their investments. The move towards integrated marketing communications (IMC) reflects an adaptation by marketers to a changing environment with respect to consumer’s technology and the media. Today many consumers are tired of being bombarded with different sales messages.”

 

1.2   Statement of the Problem

The need for organizations to properly coordinate its marketing communications strategies in order to deliver a clear, consistent, credible and competitive message about itself and its products has become an issue of concern, which every focus driven and result oriented firm wishes to overcome today. Similarly, the marketing environment is becoming highly volatile, and the once glamorous world of advertising is currently struggling to survive in a market that seems to have adapted to integrated marketing communications (IMC) under which managers can combine approaches and allow brands to speak with a single voice across all media formats. It is a known fact that companies operating in the Nigerian marketing environment still see the various promotional tools as responsibility of different departments or agencies and this has led to conflict of interest among these different agencies or departments thereby performing below customer’s expectations. Due to the rate of competitiveness in the market place, firms strive hard to keep afloat these days through the implementation of promotional activities geared towards enhancing sales volume of the company’s products.

 

1.3    Objectives of the Study

For the purpose of this study, the main objective is the appraisal of integrated marketing communications as a strategic tool for enhancing marketing performance, while the specific objectives are;

i.                     To determine the effect of Advertising on the consumers patronage of 5alive fruit drinks in owerri metropolis.

ii.                   To examine how Sales Promotion enhances sales volume of 5Alive fruit drinks in Owerri  Metropolis.

iii.                 To determine the impact of integrated marketing communications (IMC) in the over-all performance of the Nigerian Bottling company.


1.4   Research Questions

The following research questions guides the researcher at arriving at a solution to the problems identified.

i.                     What is the effect of Advertising on the consumer’s patronage of 5Alive fruit drinks in Owerri metropolis?

ii.                   How has Sales Promotion contributed on enhancing sales volume of 5Alive fruit drinks in Owerri metropolis?

iii.                 What is the impact of integrated marketing communication (IMC) in the over-all performance of 5Alive fruit drinks in Owerri metropolis?


1.5   Research Hypotheses

Based on the research questions and objectives, the researcher used the following hypotheses as a guide;

i.            Ho:  Advertising has no effect on consumer patronage of 5Alive fruit drinks in Owerri metropolis.

ii.          Ho:  Sales Promotion does not enhance sales volume of 5Alive fruit drinks in Owerri metropolis.

iii.         Ho:  Integrated Marketing communications tools does not have any impact on the over-all performance of 5Alive fruit drinks in Owerri Metropolis.


1.6   Scope of the Study

 This study covers appraisal of integrated marketing communications(IMC) as a strategic tool for enhancing marketing performance, concentrating more on 5Alive fruit drink of Nigerian Bottling Company (NBC) Plc in Owerri metropolis.


1.7   Significance of the Study

 This study is beneficial to the following;

i.                     Company:  The study will be of immense contribution to the corporate existence of Nigerian Bottling Company (NBC) as it is expected to unravel the need for full adoption of integrated marketing communications (IMC) toward organizational growth and competitiveness in a volatile marketing environment.

ii.                   Consumers:  This study is also expected to contribute to consumer satisfaction as organizations adapt to integrated marketing communication(IMC), the consumers stands the chance of  becoming partners as conscious effort are being made towards communicating clear, consistent, precise and efficient messages.

iii.                 Students: The study is expected at the end to also be a reference material to students and the academia who will find the study useful for further study in a similar or related area of interest.


1.8        Limitations of the Study

This research work is intended to be comprehensive but due to the anticipated limitations it might not be able to attain the set goal.  This is because there is a lot of time involved in sourcing materials for this study and poor responses due to uncoordinated attitude of the respondents. costs was also incurred in designing the questionnaires.


1.9    Definition of Terms

For proper understanding of this study, some operational terms used in this work were defined thus;

Integrated Marketing Communication (IMC): This means coordinating to integrate various promotional elements and other marketing activities that communicates with a firms customer.

Advertising Agency: This is a firm or a company that is staffed with people who are advertising practitioners and which render advertising services to its clients. They include government agencies, Rosabel Advertising, Insight communications, Pal Communications.

Marketing Communication: Marketing communication is the process of communicating with the individual groups or organization directly to facilitate exchange by influencing them to accept the company’s products or ideas.  It is also messages and related media used to communicate with a marketer. It is also a message that deals with buyers and sellers relationship.

Consumer: This is an individual who buys products or services for personal or household needs use and not for resale.

Advertising Practitioner: APCON defines an advertising practitioner as one who is skilled in planning, creating and placing advertisement.

Media: These can be defined as the channels through which advertising or promotional messages are transmitted to the intended audience. This includes the media of mass communication such as Newspapers, Radio, Television, Outdoors display such as billboards, etc.

Public Relations: (PR), Planned activities designed to promote goodwill between an organization and its publics.

 

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