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.
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