EVALUATION OF ENVIRONMENTAL MARKETING CONCEPT IN THE OIL AND GAS INDUSTRY IN NIGERIA (A STUDY OF OANDO PLC)

ABSTRACT

The business organization or marketing activity can work effectively and profitably in an unhealthy and polluted environment. This means that for oil marketing industry to achieve their (OANDO) corporate and one thrust, survive they competitive environment and advance in the market place or economy, they should take proper recognizance of the environment and its conservation, this effort is mostly called environmentalism. This becomes paramount when it is realized that making profit is no longer they object of industry in today marketing (of product especially oil) world but continuous operations and consumer/public satisfaction. In this research, questionnaire and interviews were used in evaluation of environmental marketing concept in oil and gas industry in Nigeria. Then the data collected from questionnaires and oral interview, 153 respondents were selected from the study., the data collected was analyzed and presented tables, objectives 1 – 3 was achieved using simple percentage while 4 – 5 was achieved using simple regression. The results shows that majority of the respondent were customers and staffs. Giving all the significance, it then becomes an issue that should be absolute and not relative. It should be fully incorporated in the oil industry corporate policy and be properly implemented, otherwise they will be facing a constant negative business operations within OANDO.

TABLE OF CONTENTS

Tittle page                                                                                                          i

Declaration                                                                                                         ii

Certification                                                                                                       iii

Dedication                                                                                                          iv

Acknowledgement                                                                                              v

Abstract                                                                                                              vi

CHAPTER ONE

1.1          Background of the Study                                                                         1

1.2          Statement of the Problem                                                                         7

1.3          Objectives of the Study                                                                            8

1.4          Research Questions                                                                                  9

1.5          Research Hypothesis                                                                                10

1.6          Significance of the Study                                                                         10

1.7          Limitations of the Study                                                                          11

1.8          Definition of Terms                                                                                 11

CHAPTER TWO

LITERATURE  REVIEW

2.1     History of Environmental Marketing Concept                                        11

2.2     Definition of Environmental Marketing Concept                                    12

2.3     An Overview of Environmental Marketing Concept                               13

2.4     The Scope and Implication of Environmental Degradation in Nigeria.   19

2.5     Government and Environmentalism in Nigeria.                                      21

2.6     The Agonies of the Oil and Gas Communities                                        25

2.7     Community Reaction to the Oil Companies                                            24

2.8     Disturbances in Oil Fields                                                                       26

2.9.    Education and Employment                                                                     29

2.10   Environmental Marketing Concept in the Oil and Gas                          33

2.11   Argument for Environmentalism in the Oil and Gas Industry \

(OANDO).                                                                                                          34

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Research Design                                                                                      37

3.2     Scope and Area of Study                                                                         37

3.3     Population of Study                                                                                 38

3.4 Sample and Sample Techniques                                                                   38

3.5 Sample Size                                                                                                  38

3.6 Data Collection                                                                                            39

3.7 Data Collection Procedures                                                                          40

3.8 Data Analysis and Hypothesis Testing                                                        41

CHAPTER FOUR

4.1     Data Presentation and Analysis                                                               42

4.2     Presentation of Data                                                                                 42

4.3     Survey opinion on the effects of corporate responsibility                               54

4.4     Environmental marketing concept and market performance           63

4.5     Hypothesis testing                                                                                    65

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1     Summery of Finding                                                                                68

5.2     Conclusion                                                                                               69

5.3     Recommendations                                                                                    69

REFERENCES                                                                                                 71

APPENDIX A                                                                                                   72

APPENDIX B: QUESTIONNAIRE                                                               73

 APPENDIX C                                                                                                  77

LIST OF TABLES

Table 4.1 Distribution and Collection of Questionnaire                                    42

Table 4.2 Sex Respondents                                                                                43

Table 4.3: Marital Status of Respondents                                                          43

Table 4.4 Educational Qualifications of Respondents                                       44

Table 4.5 Age Respondent                                                                                 44

Table 4.6 Working Experience of Respondents                                                 45.

Table 4.7 The environmental marketing concept in Oil and gas industry

in Nigeria                                                                                                            45

.Table 4.8 Need for Corporate Response                                                           46

Table 4.9 Need for the adoption of environmental marketing concept in

Oil and gas industry in Nigeria                                                                          47

Table 4.10 Involvement of oil and gas industry in the environmental

marketing concept in Nigeria                                                                             48

Table 4.11 Involvement of the oil and gas industry in the environmental

 marketing concept                                                                                             49

Table 4.12 Approaches to Area of the environmental marketing concept

in Oil and gas industry in Nigeria.                                                                     50

Table 4.13   Environmental marketing concept in Investors/Capital Providers51

Table 4.14 Adoption of environmental marketing concept in Tax Payment          51

Table 4.15 the environmental marketing concept in employee wellbeing     52

Table 4.16 Environmental marketing concept in Community Base

Development                                                                                                      53

Table 4.17 Environmental marketing in Customer Protection                               53

Table 4.18 survey opinion on the effect of the environmental marketing

concept in Oil and gas industry in Nigeria                                                         55

Table 4.19 Environmental marketing concept and employee well being    56

Table 4.20 Environmental marketing concept and Long term Profitability 57

Table 4.21 Environmental marketing concept and Liquidity                               58

Table 4.22 Environmental marketing concept and returns to investors                58

Table 4.23 Environmental marketing concept and company’s turnover                 59

Table 4.24 Environmental marketing concept and Company’s Network       59

Table 4.25 Environmental marketing concept and working capital                    60

 working capital.

Table 4.26 Environmental marketing concept and Customer Satisfaction  60

Table 4.27 Environmental marketing concept and Government development          61

Table 4.28 Environmental marketing concept and Community Development         62

Table 4.29 Environmental marketing concept and Short Term Profitability 62

Table 4.30 Environmental marketing concept and market performance           63

Table 4.31 Environmental marketing concept and market Performance           64

Table 4.32 Correlation Analysis                                                                        66

4.6. Testing For Effect of Environmental Marketing Concept Cost

on Market Performance                                                                                      67

Table 1: Correlation Analysis                                                                            77

Table 2 – Regression Analysis                                                                           78

CHAPTER ONE

          1.1          Background of the Study

Different organizations have different objectives for being in business. The objective may be to make profit increase sales volume, increase shareholders interest etc in the list of the objectives of any business enterprise, the one that often come top is to make profit or profit max equation.  According to (Udo 2003), oil companies are in the business of prospecting exploring, Gas and marketing both crude and refined oil.  But in process of their business, their intrusive activities affect, sometime adversely, the environment and social conditions of carious communities within which they operate.

Though what the companies are prospecting for is a natural endowment, the fact that it is located the people backyard, demands that those affected be accorded some degree of compensation to make up for the devastation of their environment or reduction of the pain of other hazards associated with the company activities.  Often, the artisanal activities, upon which the livelihoods of the majority of the people are derived, are disrupted by oil spills which pollute their fishing streams.

Those unaffected by the spills cannot be sure to escape the adversity of gas flares in the environment by oil companies.  A situation where the people quality of life contrasts sharply with their status as the goose that sits on the golden egg, is bound to trigger a rash of expectations by the people concerned to redress the trend.

According to the Niger Delta Environmental Survey (NDES), in it recent report and findings, the oil companies spread over Delta, Beyelsa, Rivers, Akwa Ibom, Abia, Imo Ondo and Edo states suffer large scale deviation and hazardous effects resulting from the intrusive activities by the companies operating in their area (Udo 2003).

According to (Ifeanyi 2003) almost every day stories about ugly happenings at these oil/gas communities make newspaper headlines lives are lost, people maimed, farmland destroyed and just as the saying goes, no problem is resolved through fighting.

This reached a frightening flood tide in 1995 when Ogoni youths protesting alleged degradation of their community by Shell Petroleum Development Company, the oldest and biggest oil and gas industry in Nigeria, took over flow stations, belonging to the industry in the area, held the workers hostage and vandalized some oil installations.  This action led to internal violence and murder, which in tumbled to the arrest detention, trial and execution of Ken Soro Wiwa a prominent Ogoni son and eight others of his kinsmen who were convicted to communed murder and causing of civil strife the forced shell to leave Ogoni.  It is quite a long time this happened and shell has not returned to the station.  There were after effect of the execution against Nigeria.  One of Ken was the expulsion of Nigeria from the membership of common wealth (Adebayo 1995).

(Udo 2003) noted that the issues of inadequate compensation to oil and gas communities is as old as history of oil exploration and exploitation in the country.  Since the late 50’s the more than 800 communities that make up the Niger Delta area, covering about 70,000 square kilometers of country, has always been the newer of wood and drawers of water used to fire and water the process that generate the energy that sustains the levers of the nations development and growth.

The several multi-national and indigenous oil and gas companies doing business in the country have over the years been prospecting for gas and crude oil from the area.  From where more than 40% of the nation’s earning is derived, yet their rewards have always been unequal to their sacrifices.

The more than six million population of the region live a life that contrasts sharply with the enormous resources, nature has bestowed in their community or environment.

They lack the basic necessities of life especially the basic amenities like electricity, portable water, good roads, education facilities and other infrastructures that helps to contribute to their well being (Udo 2003) agreed that is not the responsibility of the companies to cater for the people’s need, but they profitable operations.

They have an obligation restore to hesitate a process that will demonstrate that they are caring corporate citizens, deserving of an opportunity.  It will be fool hardy for the companies to connect  the people, having them drilling and carting a ways from their backyard all the crude that fetch billions of foreign exchange would wait for government to provide for all the socio-economic needs.

To guarantee a cordial relationship, the companies owe the people on obligation to reciprocate their gesture of allowing them exploit the resources in their areas, by identifying with needs for good roads, qualitative education and basic essential infrastructures that will bring about good life.

The mutually rewarding partnership is the insurance for good business with the community.  It is in a bid to redress the glaring neglect of these geese that lay the golden in eggs that this concept of environmental marketing which is the main thrust of this research work in brought to light.

Environmental marketing concept has been defined by many people in several ways (Kotler 1987:17) stated that environmental marketing concept held that the organization should determine the needs, wants and interest of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer, and society’s well being.

The underlying premises of the concept are;

1.       Consumer will increasingly favour organizations which show a concern with meeting their wants and society long run interest.

2.       The organization task is to serve so as to get market in a way that produces not only want satisfaction but long-run individual and societal benefit as the key to attracting and holding consumers (Anyanwu 1993:95) noted that this concept has evolved in response to satisfying products/services but also to consider the society’s well being.

The narrow concept of this concept gave rise to the broad concept of social responsibility of business organization.

It further emphasizes that is their pursuit of the profit objective, business enterprises have to be able to assemble the resources from local environment and have the stable socio-political and investment climate in which to operate successfully.  Social responsibility could also be seen as a duty of business enterprise to ensure that it does not disrupt the life of the communities in which it operates. Others see it as the concern for the welfare of the society which restrains business from engaging in destructive activities, whatever their immediate profitability and their focus on positive contributions to the betterment of the society.

          1.2      Statement of the Problem

Many years of reckless oil exploration by multinational oil companies seem to have left many communities in Nigeria completely devastated.  These communities have as many gas and oil production centres as possible.  It is a matter of regret that these communities have nothing positive to show for the gas and oil exploration (Hiliyu 1998) noted that the intensification of oil and gas production activities in these areas has given rise to constant class between oil companies and their host communities.  Allegations ranging from socio-economics problems related to unemployment loss of farmlands, poverty and deprivation, inadequate compensation lade of sustained commitment to rural development programmes, deficiencies in existing systems of resources assessments, emanating from the communities with accusing fingers painting at oil companies.  Bio-diversity depletion related to aid pollution, soil and water resources degradation, deforestation and water pollution, pressure and over exploitation are also familiar complaints.

The oil companies however are quick to point out that it is the responsibility o the government to attend to the needs of the communities, since the bulk of oil money filters into government coffers.

          1.3      Objectives of the Study

The main objective of the study is to evaluate of environmental marketing concept in the oil and gas industry in Nigeria.

The specific objectives are to;

i.        Ascertain the effect of environmental marketing concept in the corporate image of the enterprise.

ii.       Analyse the effect of public relations on the environmental marketing concept of the enterprise.

iii.      Determine the relationship between the environmental marketing and the market performance of the enterprise.

iv.      Examining the challenges of environmental marketing by the enterprise.

          1.4      Research Questions

i.        What is the effect of environmental marketing concept on the corporate image of the enterprise?

ii.       What is the effect of public relations practice on the environmental marketing concept of the enterprise?

iii.      What is the relationship between the environmental marketing concept and market performance of the enterprise?

iv.      What are the challenges for the environmental marketing concept in the enterprise.

          1.5      Research Hypothesis

Ho₁:   Environmental marketing concept is not significant in the profitability of the oil and gas industry in Nigeria.

Ho₂:   Environmental marketing concept is not significant on the market performance of the oil and gas industry in Nigeria.

          1.6      Significance of the Study

The following groups will benefit from the outcome of the research work.

1.       The research work will help in providing a good environmental friendliness between oil and gas companies and oil gas areas.  By so doing there would be improvement in environmental cleanliness avoidance of environmental degradation as well as community development.

2.       The communities:- This work will help to reduce the level of environmental degradation and pollution in the oil and gas areas and accelerate the level of development in this areas.

3.       The oil and gas companies:- It will sense them to their social responsibilities and as such help in guiding against vandalization of pipelines.

4.       Academic:- This work will add to the existing literature on the subject matter for consultation by researchers and students for reference purpose during forth research works.

1.7     Limitations of the Study

The limitation of the study is element of some problems are;

i.               Logistics problems:  With the current state of the economy, the researcher experienced difficulties in the research work.  Administered to collect research questionnaires.

ii.             Time constraints:- The time allocated for this research work was not sufficient for a through survey.  Hence the researcher was compelled to adjust by reconciling the needed work with the available time.

1.8     Definition of Terms

Environmental marketing concept:  It holds that the organization task is determine the needs, wants, interest of target markets and to deliver the deserved satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societies well-being, social responsibility:  It holds true of those social benefits host communities enjoy from their oil and gas companies.

Buyers has the right to create dispute within seven (7) days of purchase for 100% refund request when you experience issue with the file received. 

Dispute can only be created when you receive a corrupt file, a wrong file or irregularities in the table of contents and content of the file you received. 

ProjectShelve.com shall either provide the appropriate file within 48hrs or send refund excluding your bank transaction charges. Term and Conditions are applied.

Buyers are expected to confirm that the material you are paying for is available on our website ProjectShelve.com and you have selected the right material, you have also gone through the preliminary pages and it interests you before payment. DO NOT MAKE BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.

In case of payment for a material not available on ProjectShelve.com, the management of ProjectShelve.com has the right to keep your money until you send a topic that is available on our website within 48 hours.

You cannot change topic after receiving material of the topic you ordered and paid for.