ABSTRACT
This research work is basically carried
out to critically and objectively examine the significant and in negligible
role played by "Marketing Communications on consumer loyalty to consumer
products".
This study further reveals the
identical, relationship between Marketing Communications with terms as used
therein, such as - Marketing. Mix (Those combination of the four (4Ps) inputs
that constitute the core of a company's marketing system, that is - product,
price, place and promotion); Consumer Products, Social Marketing and
Consumerism, with more emphasis on consumer products manufacturing giant, CADBURY NIGERIA PLC.
Moreso, this research is carried out
though the traditional primary and secondary sources of data respectively and
it reveals how the company (Cadbury, in this case), in comparison to other
competitors, has been able to explore and implement the a concept of Integrated
Marketing Communications (IMC) in achieving its marketing goals of increase
products patronage, brand loyalty, customers' acquisition and retention, in a
highly competitive consumer market.
However, the research has limited the
exercise to the following:
(i) A random sample of consumers in Lagos and other accessible
areas.
(ii) Four
major product mix (Bounrvita, TomTom, Knorr and Chocolate) of Cadbury are being
considered.
(iii) The
study is intended to examine the performance of marketing communications to
overall objectives of Cadbury.
(iv) The
roles played by various communication tools., on consumers' patronage of
Cadbury products.
(v) Examining the raison d'etre for
consumers' tastes and preferences.
TABLE OF CONTENTS
Pages
Title Page i
Certification ii
Dedication iii
Acknowledgment iv
Abstract v
Table of Contents vi
CHAPTER
ONE: INTRODUCTION
1.1
Background
of the Study 1
1.2
Statement
of Problem 5
1.3
Objective
of the Study 7
1.4 Research
Questions 8
1.5 Statement
of Hypotheses 9
1.6 Significance
of the Study 10
1.7 Scope
and Limitation of the Study 11
1.8 Definition
of Terms 13
CHAPTER
TWO: LITERATURE REVIEW
2.1
Introduction 16
2.2
Review
of Related Literature 16
2.2.1 Marketing in Relation to Communications
17
2.2.2 Marketing Communications Defined 19
2.3
A view
of the Communications Process 23
2.4
Developing
Effective Communications 26
2.5
Components
of Marketing Communications 46
2.5.1 Advertising 46
2.5.2 Sales Promotion 47
2.5.3 Publicity 48
2.5.4 Public Relations 49
2.5.5 Packaging 50
2.5.6 Direct Marketing 50
2.5.7 Event Marketing 51
2.5.8 Personal Selling 52
2.5.9 Other Promotional Tools 53
2.6
Understanding
Consumer Behaviour 56
2.6.1 Consumer Buying Motives 57
2.6.2 Consumer Buying Decision Process 61
2.6.3 Types of Consumer Buying Behaviour 63
2.6.4 Consumer Evolution and Transformation 64
2.7
Summary
of Literature Review 65
CHAPTER
THREE: RESEARCH METHODOLOGY
3.1
Introduction 68
3.2
Location
of the Study 68
3.3
Research
Data and Design 71
3.4
Research
Instruments 72
3.5
Data
Collection Procedures 73
3.6
Questionnaires
Assumption & Design 75
CHAPTER
FOUR: PRESENTATION AND TREATMENT OF DATA
4.1
Introduction 76
4.2
Presentations
and Treatment of Data 76
4.3
Analysis
of Data 77
4.4
Testing
of Hypotheses 79
4.5
Interpretation
of Results 82
CHAPTER
FIVE: SUMMARY OF RESEARCH STUDY
5.1
Introduction 86
5.2
Summary
of Findings 86
5.3
Recommendations 88
5.4
Conclusion 90
Bibliography 92
Questionnaire 94
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
This chapter will examine the basic
background to the study and its objectives will involve analyzing the
historical and analytical perspectives of Marketing Communications on consumer
loyalty to consumer products in the consumer segment of the market with
proportionate emphasis on Cadbury Nigeria Plc.
The chapter will also include statement
of problem, which will give rise to fundamental questions that will be answered
in the context of the study.
Purpose of this study will be analyzed
in order to bridge communication' gap between the reader and the writer of the
project (researcher).
The scope and limitation of the study
will be reviewed. The essence of this is to provide the audience with
information about areas that this researcher has considered for the collection
of data. This is because it is obvious the study cannot cover all geographic
areas inherently concerned with the study. Limitation of course, will also be
given consideration particularly as it affect this research.
The fact that the combo of marketing
communications and the attendant consumer behavioural process breeds a complex
study also indicates numerous problem that may hinder our research efforts into
its indepth development and applications.
The world communication 'is derived
from the Latin word – “COMMUNIS” meaning "Common". Thus when you
communicate, you are trying to establish a commonness with someone. Through the
use of verbal or nonverbal symbols; you, as the source, send a message through
a channel, to receiver, in an effort to share an idea, attitude .attitude or,
some other kinds of information.
As universally acknowledged,
communication is an all-embracing discipline; it permeates all walks of life,
and it is the life-blood of all organizations' activities. It is an integral
part of marketing management, which makes marketing itself to be referred to as
communication.
Marketing communication is, therefore,
employed as a promotional tool in the consumer market just like in other types
of businesses for attaining the set goals and objectives of corporate bodies
and individuals and even, the government at all levels.
Modern marketing calls for more than
developing a good product, pricing it attractively and making it accessible to
the target consumer s. companies must also communicate with their present and
potential customers, retailers, suppliers, other stakeholders and the general
public. Every company is inevitably cast into the role of communicator and
promoter, all promoters, all rolled into one. It is observed that, for most
companies; Cadbury Nigerian plc inclusive, the question has always been not whether
to communicate but rather -- what to say to whom and how often.
Basically, the term
"Marketing" goes beyond selling or invitation to buy but it rather
involves fundamental functions of identifying, anticipating and satisfying the
need of the consumer. Once, it is described as a complex system rightly
envisaged and catered for, even before production take place. It is off-shot of
a larger marketing system that determines what to produce, when to produce it,
how to produce it and for whom to produce for, leading to the study of consumer
behaviour in attempt to discover his motives, willingness and ability to buy a
product.
According to Foxall, "the
marketing communication mix, otherwise known as promotional mix, is that
complex of techniques under the control of management which may be used to
communicate directly with buyer and potential buyer".
It is however, notably observed that
the production in itself ,is not yet completed until it transform through all
processes till it ultimately reach the final consumer who uses or consumes the
product to quench his desire and satisfy his wants, either in the industrial or
consumer market.
In a nutshell, the itinerary of
marketing involves production of goods, good distribution, selling of the
goods, satisfying the need of demands and getting feedback (information) about
the strength and weakness of the product and the company in the market. Then
marketing would have been completed.
Thus, Ames B. C. in his book (Pay-off
from Product Management) defined product "as the essential vehicle for the
provision of consumer satisfaction offered by a company in the market
place." The Nigerian economic environment has undergone some fundamental
structural changes. in, the recent years, which led to intermittent changes and
instability, in the market. The apparent implication of such changes is the
distortion of economic life of Nigerians. It elongates poverty and diseases,
which lead to reduction in standard of living of the people. It creates low or
better still, no purchasing power due to weak naira. It leads to low capacity
utilization of the manufacturing sector thus low per capita income for
household and industries. It also intensified inflation rate to high level and
created room for smuggling, corruption and other anti-economy vices while ensuring
steady rise in the rate of unemployment.
Amidst all these changes is - the
obvious adverse effects inflicted on the marketing environment to the detriment
of the manufactures . and particularly, the marketers. This is because,
marketers have to contend with these obstacles day-in, day-out and it becomes
necessary to fashion ways out of the doldrums in order to meet their set
targets and break even, by making goods and services available to consumers and
at the same time, aim to shoot up the sales turnover and profit of their
respective companies.
As a result, those elements of the
marketing mix which had to this time been relegated to the background, came
into limelight to form the mix of corporate marketing operations in planning,
implementation and controlling, all in the efforts to analyze the trends in the
market and strategize to breakeven by winning a fair share of total market
competitions.
For a product, a marketer is faced with
the task of creating a favourable disposition, thus, in the course of his
attempt of persuasion, the marketer is compelled to seek for-confirmation of
the existing attitude of consumers; change the new attitude to give him that
edge. This, of course, is the main persuasive strategy a seasoned marketer
would employ to pull through in a competitive marketing environment.
Essentially, the challenges of changes are better handle through effective
deployment of marketing communications strategies.
As every consumer is aware especially
those in Urban areas, there are confusing arrays of integrated marketing
communication campaigns, with each trying to out do other in an effort to win
consumers patronage and
loyalty to their competing brands, they
resulted to the use of promotional tools such a - Advertising, Personal Selling
Direct Marketing, Public Relations, Sales Promotion etc.
Also, the enthronement of consumer
sovereignty and concept, of consumerism places the manufactures at the behest
of, consumers. Which lend credence to the scrambling of these manufactures to
intimate their various brands with consumers through vigorous use of aggressive
marketing communication tools.
1.2
STATEMENT OF PROBLEMS
The structural changes that affected
the economic 'landscape of Nigeria,
as discussed earlier, heralded the intense employment of tools of marketing
communications by manufactures of consumer products.
Since the main task of marketing in
mobilizing the resources of the organization towards improving the well-being
of the society through the delivery of standard of living to the economy.
In producing any from of goods or
services, the producer must of necessity have the consuming public in mind.
Marketing has in it roots, the customer which is the reason for the business.
The multiple adverse effects of
economic changes warrants the manufacturers to find solution to low demand of
their products prices; the restraints on purchasing power of consumers caused
by inflation and weak currency and influx of foreign competitive and substitute
goods to the market.
A suave marketer will seek to study and
understand the emotions and instincts-induced behavioural processes of
consumers to determine their needs and preferences in order to satisfy those
needs. The business philosophy that focuses on the customer and, brings all the
organization's resources and skills to bear on the task of understanding and
meeting customer needs is integrated marketing communications.
And because marketing environment is
the one that is ever dynamic,, tastes and preferences of these so-called
consumers changes with time. Then,
manufacturers and faced with problems
of creating awareness and knowledge-based information about their products to
consumers.
To stay in touch with consumer's
changing needs and ensuring the company's ability to deliver those needs with
new product lines and suitable marketing synergies. It is with this notion that
the organization crowns the customer as the "king". This philosophy,
recognizes that the objectives of a company bother on-customer satisfaction,
goods availability 'in a profitable volume, planned through integrated
marketing concept and executed in a socially responsible manner.
The use of marketing communications
becomes imperative in the operations of a company, when he plan to launch and,
or re-launch its products. These tools are also employed by company to correct
some wring impressions about its products or the company's reputation in public
perceptions.
In recent times, Procter and Gamble, a
consumer products manufacturing giant, tried to inform the public about the
erroneous impression create about one of its. brands - ALWAYS SANITARY PAD. And when NESTLE,
another consumer drinks giants was battling to save and protect its reputation
over news rave on expired skimmed milk brouhaha with Nigeria authority, the usefulness
and essence of marketing communications strategies prevailed.
The intrinsic constant factor in
production, in the name of Product-Life, Cycle (PLC), only make the functions
of integrated marketing communications more inevitable. This is necessary as a
result of each and different stage of production need specific and suitable
marketing approach in communicating about the product to the consumers.
It could be deduced from the analysis
above that manufacturers of consumer products, are indeed have to contend with
either business extinction or business survival by breaking even mainly
through, effective and aggressive use of integrated marketing communications
strategy.
1.3 OBJECTIVES OF STUDY
This study is designed and arranged to
focus on the achievement of two major objectives:
i. The fundamental principle of consumer
behavioural processes and the all-important consumer market; and
ii. The essentiality of the concept of
integrated marketing communications as a veritable tool of linking the
consumer, to his varying . demands in the established consumer market.
The intertwined role of marketing
communications concept and the principle of consumer behaviour in the marketing
system cannot be underestimated. This is obvious, a certain character as human
being will always have the reasons to desire some wants for his basic living
that will create demand for those needs based on his preference or taste and
purchasing power. These consumers' needs will form the basis of what the
manufacturing company will produce, supply and make available to this consumer
at appropriate time in order to create satisfaction for the consumer.
Hence, the intermediary function of
determining the needs of the consumers, how he will buy, when he will buy, what
he buys, and even what induces his motives to buy, at one end, and the
understanding the usefulness of these needs to the consumers by the
manufacturers; of how he intends to supply these needs, how to convince his
target audience, what will distinguish his products from others and how to make
consumer sensitive to his valued pleas and assure them of protecting their
interests, at the other end. All these aforementioned task necessarily becomes
the 'onerous responsibility of marketing communications.
The bottom line of which is, marketing
communications performing the dual role of:
a. Informing, persuading and influencing
the consumer decisions for the benefits of manufacturers, and
b. Interpreting the responses of consumers
as cognitive (creating attention), affective (affecting responses) and
behavioural (effecting decision).
Also, the purpose of this study, is to
test the viability of the concept of integrated marketing communications as
applicable to CADBURY NIGERIA PLC,
in improving her share of the competitive consumer market.
Amongst other objectives is to examine
the significant roles of other variable factors that aided the effectiveness of
marketing communications and to suggest solutions to its defects.
1.4 RESEARCH QUESTIONS
sequel to series of problem raised by
this study and in order to accomplish the objective of this research, the study
attempts to find appropriate solutions to the problems identified. The
following research questions are therefore put to empirical finding in the
study:
1. What
is the role of marketing communications in a business?
2. How does promotional mix influence
consumers buying motives and their buying decision process?
3. What are the marketing communications
strategies of the subject or research-Cadbury?
4. How has the company effectively
implemented and control the marketing communications strategies employed?
5. Does marketing communications really
impacted on the consumer patronage and lead to increased production volume?
6. Does marketing communications
contribute to the sales turnover and profit margin of Cadbury? .
7. Will and do consumers switch over to
other brands in absence, of these marketing communications?
8. Does any relationship exist between a
depressed economy and resurgence of marketing communications?
9. Can marketing communications strategy
enhance the public image of a company?
10. Won't marketing communications
appropriations lead to increased expenditure and decreased revenue to the
company?
1.5
STATEMENT OF HYPOTHESES
Considering the nature of this
research, two major hypotheses will be drawn and put to test in the study using
Null hypothesis and Alternate hypothesis.
Ho: The use of
marketing communications influence the loyalty of consumers to company's products.
Hi: Consumer
loyalty, to company's products is not influenced by the use of marketing
communications.
Ho: Marketing
communications improves the public image of the company thus, patronage of its
products.
Hi: Marketing
communications strategies can neither improve the public image of the company
nor induce patronage of its products.
1.6
SIGNIFICANCE OF THE STUDY
This study is significant is several
perspectives.
Firstly, it presents the analytical
perspective of this unique segment of marketing and thus, serves as materials
for future reference.
It becomes so significant because it
energizes the quest to further develop this area as a result of overriding
importance of communication in a dynamic environment, which marketing entails.
It expose not only how to reach the
consumers but also, how best their satisfaction can be ensured.
The changing face of marketing system
from previous and outdated mass marketing; selling highly standardized products
to masses of customers at invaluable high costs, has moved to purposeful and
obtainable fragmented market which necessitated the development of focused
marketing programmes designed to build closer relationships with consumers in
more narrowly defined micro-markets.
Informing, persuading and influencing
the consumer decisions for the benefits of manufacturers, and Interpreting the
responses of consumers as cognitive (creating attention), affective (affecting
'responses) and behavioural (effecting decisions).
This study becomes more significant in
exploring the emerged prospects of w communications avenues for reaching even
target consumer segments with more tailored message being made possible by vast
improvements in computer information technology.
The ever present need for consumers to
be adequately informed, the increase competition of consumer products, the
ranging distance between manufacturers of consumer product and vast scattered
consumers in near and remote geographical locations, also point out the
significance of this study.
Again, the manufacturer recognized the
need to expand the horizon of his potential and actual share of the consumer
market that will yield high sales turnover and fulfill his capitalist motive of
increasing profit base. The concept of marketing communications is most' important
in this respect.
How well has consumers been informed
and satisfied, and how far has the company responds to the needs of the
consumer and yearnings of the larger society? These are questions that made
this study very significant in unraveling the solution to these problems.
1.7 SCOPE AND LIMITATION OF STUDY
The study intends to appraise the '
compelling role of marketing communication in enhancing consumer loyalty to
consumer products of a manufacturer.
However, has it always been found with
majority of previous studies, this study is not exempted from certain
limitations that hindered the desire of the researcher to present a through
position in this area of marketing system, which had hitherto been. merely-treated
and almost neglected by many authors.
scope of this study is to further
investigate through practical research approach, the development of marketing
communications, its objectives, the components of, communications system, the
various role of marketing communications, the evaluation of the effectiveness
and performance of marketing communications against the set objectives for
obtaining the loyalty of target consumers to specific products in the consumer
markets.
But due to time constraints, financial
incapacitation, non-availability of material resources among other limitations,
it becomes impracticable to extend the research to every inherent part of the
country. As a result, the study will be limited to Lagos metropolis and other remote areas, accepted
to be a cosmopolitan city with highest population density nationwide that will
be representative enough to the required sample and data collection method.
Other limitations to the study include:
a.
Non-availability
of several research works in this specific area to provide a background and
serve as references to this study.
b.
Inability
of the researcher to obtain accurate response from the respondents due to their
lack of in-depth knowledge about the topic of research.
c.
The
subject of this research will focus only on the competitive consumer market
with great emphasis on a leading consumer products manufacturer – CADBURY.
d.
As we
are aware of complexities of consumer market, this research will only examine
the effects of marketing communication on few selected brands.
Despite all these obstacles, efforts
shall be made to present adequate and well articulate position by exploring to
the extreme, the basic data available to ensure the study serve as a basis for
future source of information.
1.8
DEFINITION OF "SALIENT"
TERMS AS USED IN THE STUDY
They key ‘unfamiliar’ terms used in the
context of this study shall be defined, in order to enable the reader
understand the report of the research more clearly. Those terms are as defined
below:
§ Advertising: This is any paid form of non-personal
presentation and promotion of ideas, goods or services by an identified
sponsor.
§ Consumer
Goods: All product
which are "destined for use by ultimate consumers or households and is
such form that they can be used without further processing".
§ Consumer
Behaviour: This is a study
of understanding the characteristics of those class of people who must of
necessity desired maximum satisfaction from commodities purchased to meet their
needs.
§ Direct
Marketing: This is
marketing achieved through various advertising medial that interact directly
with consumers, generally calling for the consumers to make a direct response.
§ Industrial
Goods: All products
which are "destined to be sold primarily for use in producing other goods
or rendering services as contrasted with goods destined to be sold primarily to
the ultimate consumer.
§ Integrated
Marketing Communications Concept (IMC):
This is a concept under which a company strategically integrates and
coordinates its many communications channel, to deliver a clear, consistent and
compelling message about the organization and its products to , the consumers.
§ Marketing
Database: It is an
organized set of data about individual customers or prospects that can be used
to generate and qualify customer leads, sell products and services and maintain
customer relationship.
§ Non-Personal
Communication Channels:
These are media carrying messages without personal contact of feedback
including major media, atmospheres and events.
§ Personal
Communication Channels: These
are channels through which two or more people communicate directly with each
other including face to face, 'person to audience, over the telephone, or
through the mail.
§ Packaging: This is the general group of
activities in product planning that involve designing and producing the
container or wrapper for a product to serve the purpose of serve the purpose of
protection, convenience, economy and promotional functions.
§ Personal
Selling: Personal
presentation by a firm sales force, for the purpose of making sales and
building customer relationships.
§ Promotion
Mix: It is the specific mix of
communications tools a company uses to pursue its marketing objectives.
§ Product
Line Depth: This
consists of product item intended for essentially similar uses, and possessing
reasonably similar physical characteristic.
§ Product
Mix: This is the full list of all products
offered for sale by the company consisting of the entire range of products
marketed by the company. It consists of all product lines are item that a
particular company offered for sale in the market place.
§ Publicity: Publicity is a form of non-personal
demand stimulation for an idea, a product-goods or services by embarking on
media-over (news worthy) and commercially significant activities to obtain
favourable presentation.
§ Public
Relation: It is the
deliberate plan and sustained efforts of an organization to establish and
maintain mutual understanding between it and its various publics by building up
a good `corporate image' and handling 'off unfavourable rumours and events.
§ Sales
Promotion: There are
short-term incentives provided to stimulate purchase or sale of a product or
service.
§ Telemarketing: This is art of using telephone to
sell directly to consumers.
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