IMPACT OF MARKETING ON THE SALES OF AGRICULTURAL PRODUCE (RICE) IN ENUGU METROPOLIS

ABSTRACT

The study examines the impact of marketing on the sales of agricultural produce (rice) in Enugu metropolis. The research measures the profit and profitability ratio of rice, identify types of agricultural produce that is consumed mostly in Enugu metropolis and analyze the effect of rice marketing on standard of living. A structural questionnaire was administered to 400 respondents upon which 250 were returned giving a response of 62.5%.discriptive statistics and cost and returned analysis were used to analyze the data. The result show that profitability enhances the marketing potentials of rice in Enugu metropolis and that the product is efficient and impacts positively to standard of living. The study will help to find a possible way of achieving effective selling of agricultural produce (rice) in Enugu metropolis.

TABLE OF CONTENTS

Title page - - - - - - - - - i

Certification - - - - - - - - ii

Dedication - - - - - - - - - iii

Acknowledgement - - - - - - - - iv

Table of contents - - - - - - - - v

Abstract - - - - - - - - - vii

CHAPTER ONE

INTRODUCTION

1.1  Background to the Study -- - - - - - 1

1.2 Statement of the Problem - - - - - - 3

1.3 Objectives of the Study - - - - - - 3

1.4  Research Questions - - - - - - 4

1.5  Formulation of Hypothesis - - - - - 4

1.6  Significance of the Study - - - - - 4

1.7 Delimitation (Scope) of the Study - - - - 5

1.8 Limitations of the Study - - - - - - 5

1.9  Definition of Terms - - - - - - 6

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction - - - - - - - - 7

2.1 Marketing and its Nature - - - - - - 7

2.2 Promotion and Selling - - - - - - 10

2.3 Price and Selling - - - - - - - 11

2.4 Place and Selling - - - - - - - 11

2.5 Origin and Development of Marketing - - - 11

2.5.1 The Production Era - - - - - - 12

2.5.2 The Product Era - - - - - - - 13

2.5.3 The Selling/Sales Era - - - - - - 13

2.5.4 The Marketing Concept Era - - - - - 14

2.5.5 The Societal Marketing Era - - - - - 14

2.5.6 The Relationship Marketing Era - - - - 14

2.6 Meaning of Marketing - - - - - - 15

2.7 The Scope of Marketing - - - - - - 16

2.8 Importance or Role of Marketing in the Economy - - 16

2.9 The Nigeria Marketing System. - - - - - 19

2.10 Marketing Functions - - - - - - 19

2.11. Marketing and Agriculture - - - - - 23

2.11.1 The Role of Agriculture in Nigeria Economy - - - 24

2.12 Problems of Agriculture - - - - - - 26

CHAPTER THREE

METHODOLOGY

3.1 Research Design - - - - - - - 30

3.2 Area of Study - - - - - - - 30

3.3 Population of the Study - - - - - - 31

3.4 Sampling Size Determination - - - - - 31

3.5 Sources of Data - - - - - - - 32

3.6 Instrument for Data Collection - - - - - 32

3.7 Validity and Reliability of Instrument - - - - 32

3.8 Method of Data Presentation and Analysis - - - 33

3.9 Model Specification - - - - - - 33

CHAPTER FOUR

RESULT AND DISCUSSION

4.0 Introduction - - - - - - - - 34

CHAPTER FIVE

SUMMARY AND FINDINGS, CONCLUSIONS AND

RECOMMENDATION

5.1 Summary of Findings - - - - - - 41

5.2 Conclusion - - - - - - - - 41

5.3 Recommendation - - - - - - - 42

References - - - - - - - - 43

Appendix 1

LIST OF TABLES

Table 3.3 District population of Enugu metropolis as at 2006

Table 4.1 Number of questionnaire administered

Table 4.2 Sex of respondents

Table 4.3 Age of respondents

Table 4.4 Marital status of respondents

Table 4.5 Level of education

Table 4.6 Years of marketing experience

Table 4.7 Rank of the effect of distribution channels of marketing of rice

Table 4.8 Analysis of Agricultural products produced in Enugu metropolis

Table 4.9 Analysis of rice marketing problems

Table 4.10 Cost and return analysis of rice marketing

CHAPTER ONE

INTRODUCTION

1.1  Background to the Study.

Generally, agriculture comprises the main field of human activity concerning the primary production   of food and cash crops, livestock, fishing and marketing of the product. Marketing is about identifying and meeting human and social needs.

According to AMA (2013) marketing is defined as an organizational function and a set of processes for creating, communicating and delivery value of customers and managing customer relationships in ways that benefit the organization and its stakeholders. The role of marketing on the sales of agricultural produce in any economy is well articulated in the relevant literature. For developing countries it can promote economic development by increasing availability of food and releasing labour for the industries. It can expend the size of domestic market for industrial goods; it raises the level of savings and capital formation while also earning foreign exchange from exports. In the case of Nigeria the agricultural sector has also generated development capital, revenue for government, employment for labour because economic activities are still predominantly agricultural especially in the rural areas (Anyanwu et al 2007; Eriemo 2007; Tomori 2007; Central Bank of Nigeria 20077; Eyo 2007). Although Nigeria is the giant of Africa and the most populous black nation in the world with great potential and brilliant experts in different field of endeavors, here inability to break away from the shackle of poverty despite her rich natural and human endowment is due largely to mismanagement, inconsistent, poor conceived government policies, neglect and lack of basic infrastructure such as storage facilities, good road network and communication networks. Still the agricultural sector amount for over 40% of gross domestic product (GDP) employs about 70% of the labour force, account for over 60% of non – oil export and perhaps provides over 80% of the food needed in the country (Adeboye, 2004). During the era before independence, agriculture provided adequate food for Nigerians both in quantity and quality (Uwusu Oluwaseyi, 2011). Financial success often depends on marketing ability. Finance, operation, accounting, industrial growth and other business functions will not really matter if there is no sufficient demand for products and services so that the company can make profit (Kottler, 2010).

Managers sometimes think of marketing as “the art of selling products “but many people are surprised when they hear that selling is only tip of marketing iceberg. Drucker a leading management theorist put it this way:

“There will always. One can assume, be need for some selling but the aim of marketing is to make selling super flops. The aim of marketing is to know and understand the customer so well that the product or service fit him and sells itself. Ideally marketing should result in a customer who is ready to buy all that should be needed then is to make the product or service available in the right quantity and quality, at the right time, in the right place, with the right price.”

Agriculture and industry are linked as markets. In particular, agriculture is the major market for the output of industrial goods. Considering the industry must sell its output or products to contribute and develop the economy, the agricultural sector provides the market. In addition rising rural demand for product of other sector can occur by selling of marketable surplus of agricultural produce for cash. This helps promote the development of country’s tertiary sector. Most of the agitation border on made mate distribution of agricultural produce. Low standard of Living and high unemployment rate in Nigeria generally and Enugu metropolis in particular.

1.2 Statement of the Problem

The inability of proper marketing on the scale sales of agricultural produce in Enugu metropolis in ensuring effective and efficient distributions of farm produce has become a source of concern to marketers, buyers, consumers and the state government. When problems are well stated; it will set the tone of the study by stating clearly the gap which the study aims at filling at the end of the day (Onodugo Ugwuonah, 2010); Therefore to effectively carryout the investigation on the impact of marketing on the sales of agriculture produce in Enugu metropolis (state) the following interrogative problem statements could be raise as follows.

· What are the factors that are responsible for effective distribution of agricultural produce in Enugu metropolis?

· To what extent does poor sales of agricultural produce effects Enugu state standard of living?

· What is the profitability ratio of rice marketing?

· To what extent does consumer get satisfied with agricultural produce sold in Enugu metropolis

All the above constitute the problems which the study is challenged to unravel.

1.3 Objectives of the Study

The general objective of this research is to evaluate the impact of marketing on the sales of Agricultural produce (Rice) in Enugu metropolis while the specific objectives where to;

1. identify the types of agricultural produce that is consumed mostly in Enugu state (metropolis)

2. analyze the effect of rice marketing on standard of living

3. measure the profit and profitability ratio of rice

1.4  Research Questions

Due to the state of this work, the researcher is poised to ask the following questions

i. What are the agricultural products produced in Enugu State?

ii. What are the effects of rice marketing on standard of living in Enugu?

iii. What is the profitability ratio of rice marketing?

1.5  Formulation of Hypothesis

To make this work more comprehensive, the researcher formulated the following hypothesis

H₀₁: There is no significant profit and profit ratio in rice production and marketing

H₀₂: Rice marketing does not have any significant effect on standard of living

1.6  Significance of the Study

This study is very timely especially now that all hands are on deck to enhance the efficiency and effectiveness of marketing on the sales of agricultural produce and prevent various problems and bottleneck hindering effective selling of agricultural produce in Enugu metropolis. The findings will help Enugu metropolis government to choose policy initiative that enhances selling of agricultural produce. It will help the farmers in Enugu metropolis as it will facilitate the sales of their produce to the final consumers and other users. The consumers and other users of agricultural produce will benefit from the study because the policies that will be formulated from the findings will facilitate effective distribution of high quality produce thereby increasing the standard of living of Enugu metropolis people. It will also enhance price stability of agricultural produce in Enugu metropolis. It will also make raw materials available for the industry thereby reducing the cost of production of industrial products. It will increase the knowledge of academia’s and researchers on how to best market various agricultural produce as well as industrial product. It will also increase economic development and creates unemployment opportunities since marketing have many activities and functions which different people can engage in.

1.7 Delimitation (Scope) of the Study

The scope of the study is on the impact of marketing on the sales of agricultural produce in Enugu metropolis. The work describes the impact of marketing on the sale of agricultural produce in economic development of Enugu metropolis, its contribution to the development of other industries, its benefits to farmers and consumers in Enugu metropolis and the implications of ineffective distribution of agricultural produce. The study is limited to Enugu metropolis in Enugu state Nigeria.

1.8 Limitations of the Study

The research work was limited in application based on the difficulties and constraints that were encountered in the course of carrying out the work. Shortcoming such as finance and lack of funds, time constraints as well as materials sources. It was also difficult to get the respondents to fill questionnaire properly.

1.9  Definition of Terms

Marketing: (Kotler, 2010) Defined marketing a set of processes for creating, communicating, delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders.

Product: (Kotler, 2010) defined product as anything that can be offered to market for attention, acquisition and usage and which can satisfy wants.

Produce: is defined as the end results of agricultural production processes.

Impact: The effect one thing has on the other.

Advertising: Any paid form of non personal presentation and promotion of idea, goods and services by an identified sponsor through media.

Word of mouth advertising: This is the use of month to inform the public about the product. It is mostly used in the sales of agricultural produce.

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