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Abstract
This research work examined customer orientation and marketing effectiveness of manufacturing firms in Port Harcourt. The survey research design was adopted. The population of the study was unknown. The sample size of this study was judgmental sample of 110 respondents. Both primary and secondary data was used. The instrument of data collection was the questionnaire. The questionnaire were distributed to the Democks paints Limited, First Alumminium Plc and Kebelmetal Nigeria plc, Port Harcourt. The questionnaire was adopted , modified and refine to suit the present study. The data collected were processed electronically using statistical packages for social sciences (SPSS Version 22). The pearson product moment correlation, coefficient was used to test the hypothesis. The study found a positive relationship between the dimensions of customers orientation and marketing effectiveness of manufacturing firms in Port Harcourt. Based on the findings of the study it was recommended that manufacturing firms ensure that their products satisfy the tastes of customers so that customers will be prompt to buy their product or services, as well as produce product and service that will create a good and appealing pictures in the mind of the customers to meet up with their expectation.
Table of Contents
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Abstract vi
Table of Contents vii
List of Tables ix
List of Figures x
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of Problems 4
1.3 Purpose/Objectives of the Study 5
1.4 Research Questions 5
1.5 Research Hypotheses 6
1.6 Significance of the Study 6
1.7 Scope of the Study 7
1.8 Limitation of the Study 8
1.9 Definition of Terms 8
CHAPTER 2 10
REVIEW OF RELATED LITERATURES 10
2.1 Conceptual Review 10
2.1.1 Customer Orientation 10
2.1.2 Dimensions of Customer Orientation 13
2.1.3 Marketing Effectiveness 16
2.1.4 Measures of Marketing Effectiveness 18
2.1.5 Customer Orientation and Marketing Effectiveness 22
2.2 Theoritical Framework 23
2.2.1 Resource-Advantage (R-A) Theory (Hunt and Morgan, 1995). 23
2.3 Review of Related Empirical Studies 24
2.4 Summary of Review of related Literatures 26
CHAPTER 3 28
RESEARCH METHODOLOGY 28
3.1 Research Design: 28
3.2 Population of the Study 28
3.3 Sampling Techniques Used 28
3.4 Sample Size 28
3.5 Source of Data 29
3.5.1 Primary Source (s) of Data 29
3.5.2 Secondary Source of Data 29
3.6 Research Instrument for Data Collection 29
3.7 Validity and Reliability of Instrument 30
3.8 Techniques for Data Analysis/Test of hypotheses 30
CHAPTER 4 32
DATA PRESENTATION AND ANALYSIS 32
4.1 Questionnaire Distribution and Retrieval 32
4.2 Data Analysis and Presentation 33
4.4 Hypotheses Testing 37
4.5 Discussion of Findings 39
CHAPTER 5 41
SUMMARY, CONCLUSION AND RECOMMENDATIONS 41
5.2 Summary 41
5.3 Conclusion 41
5.4 Recommendations 42
References 43
Appendix I 47
Appendix II 48
Questionnaire 48
List of Tables
Table 4.2: Age Respondents 33
Table 4.3: Sex Respondents 33
Table 4.4: Academic Qualification 34
Table 4.5: Customer need and Marketing Effectiveness 34
Table 4.6: Customer Expectation and Marketing Effectiveness 35
Table 4.7: Customer Awareness and Marketing Effectiveness 36
Table 4.1: Questionnaire Administra tion and Retrieval 32
List of Figures
Fig2.1: A Conceptual framework showing the relationship between Customer Orientation and Marketing Effectiveness. 10
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Marketing has been an effective tool and strategy for increasing the sales of a product (Jager 2007). The essence of marketing effectiveness is particularly useful in any business, as it assumes better business stability, long-term profit growth, increased customer satisfaction, competitive advantage, and business sustainability. The assessment of marketing effectiveness is an integral part of a comprehensive business performance evaluation that helps companies to implement a marketing strategy by providing a general view of business performance (Heilman and Philips, 2011). Drucker, as the first author dealing with the issue of marketing effectiveness, states that the basis for the success of marketing activities and processes is to do the right things, which means, to do things in an effective way (Drucker, 1995). Marketing effectiveness is also related to return on marketing investment. Marketing effectiveness produces far more than return on investment, a financial calculation used to determine whether an investment achieves a satisfactory return compared to other uses of cash (Mulky, 2011). Measuring the effectiveness of marketing activities should be among the most important priorities of each company (Mulky, 2011).
Effectiveness of firms helps to assess the progress towards mission fulfillment and goal achievement (Heilman and Philips, 2011). Marketing effectiveness is the process of creating value, using organization’s resources for marketing activities and creation of competitive advantage (Žostautienė, and Vaičiulėnaitė, 2010). To improve effectiveness, management should strive for better communication, adaptability and positive environment.
Marketing effectiveness is also related to return on marketing investment. Marketing effectiveness produces far more than return on investment, a financial calculation used to determine whether an investment achieves a satisfactory return compared to other uses of cash (Mulky, 2011). Measuring the effectiveness of marketing activities should be among the most important priorities of each company (Mulky, 2011).
The effectiveness of a marketing campaign therefore is determined and measured by the extent to which the marketing objectives are achieved at the end of the campaign. Generally marketing effectiveness or the effectiveness of a marketing programme or campaign is measured on the impact of that campaign on the company‟s sales, market share, profitability and return on investment.
Solcansky and Simberova (2010) posit that marketing effectiveness is the quality with which managers go on the market to optimize their spending in order to achieve good results in short-term and long-term period, Optimizing quality of spending to achieve the desired results in a period of time. Marketing effectiveness is the process of creating value, using organization’s resources for marketing activities and creation of competitive advantage (Žostautienė, and Vaičiulėnaitė, 2010).
Customer orientation is a key focus for any firm’s relationship to its market (Leeflang, 2011). As the central component of market orientation, customer orientation is also an important driver of marketing effectiveness (Kirca, Jayachandran, & Bearden, 2005). Customer orientation is adequate understanding of a company toward its target customers to be able to create superior value for them. Customer orientation advocates a steady and active state to meet the necessities of clients.
In the discussion of Customer orientation and Marketing Effectiveness, one thing is very important and it is customer satisfaction. Customer satisfaction in the principles of effective business and marketing has become so important that it is considered in the statements and strategic vision of organizations. Customer satisfaction is the result of customer’s perception in a transaction or valued relationship (Edalatifard, 2010).
In this competitive cycle Organizations have no choice but to pay attention and commitment to customer satisfaction and profound attention to their demands, and desires and should always see customers as a key competitive advantage, (Edalatifard, 2010)
Customer orientation origin can be connected to the development of the marketing concept, which believes that ultimate goal of organizations is fulfilling the customer needs to maximize business profits (Heskett, 2000). Customer orientation is one of the major concerns to maintain a long-term relationship with customers. As the marketing principles thinks the focus on customer is required the outer reality also has endorsed this matter and supports these principles. Perhaps the customer orientation in the 1970s after the radical changes in the global economy once created. The effectiveness of customer orientation also depends upon environmental conditions.
According to Heskett, (2000) customer orientation is defined as an approach to sales and customer relations in which staff focus on helping customers to meet their long-term needs and wants. Customer orientation has been studied frequently and comprehensively around the world. Essentially, it means observing the wishes and needs of the customer, anticipating them and then acting accordingly. Research conducted by Heskett, (2000) shows that satisfied, loyal and committed employees are more enthusiastic towards customers, which ultimately leads to more satisfied, loyal and committed customers. A customer-oriented organization places customer satisfaction at the core of each of its business decisions (Heskett, 2000).
Customer orientation is collecting customer information and using this information in business units (kohli & jaworski, 1990). Customer orientation is the amount of collecting information from customers and using it in developing a strategy to meet these needs and implement this strategy by responding positively to the demands and needs of customers (Ruekert, 1992). Customer orientation is the set of beliefs that puts the client’s interests at the top of the organization’s stakeholders, including owners of the organization, managers and employees to make the company profitable (Deshpande, 1993).
A customer oriented organization places customer satisfaction at the core of each of its business decisions (Heskett, 2000). From the foregoing therefore, the study is determine to examine the relationship between customer orientation and marketing effectiveness of manufacturing firms in Port Harcourt.
1.2 Statement of Problems
The highly competitive nature of today’s market forces organizations to be more sensitive to customer’s need in order to retain their customers and acquire new ones. As a result, customer satisfaction has been the major concern of all organizations, including pharmacies. In order to satisfy the customers and maintain their loyalty, manufacturing firms must focus on building customer orientation skills in their sales personnel (marketers) so as to build a strong relationship with customers. Nevertheless, the presence of customer orientation skills on behalf of sales personnel does not necessarily guarantees customer satisfaction unless a quality service is delivered to satisfy the customers. Previous studies found a positive effect of Customer orientation on customer satisfaction (Ooi, 2011). Although scholars have recognized the importance of customer orientation but prior researches were insufficient in several respects. First; Leeflang, (2011) in his study found that customer orientation was evaluated by the employees rather than the customers. The study of Edalatifard, (2010) revealed that there is a need for more rigorous quantitative methodologies and analysis, which can smoothen the way for building integrative models to set out the antecedents of customer satisfaction, such as customer orientation and marketing effectiveness. From the foregoing therefore, the study seeks to examine the relationship between customer orientation and marketing effectiveness of manufacturing firms in Port Harcourt.
1.3 Purpose/Objectives of the Study
The purpose of the study was to examine the relationship between between customer orientation and marketing effectiveness of manufacturing firms in Port Harcourt. The specific objectives were as follows;
1. To examine the extent to which customer needs associate with marketing effectiveness of manufacturing firms in Port Harcourt.
2. To examine the extent to which customer expectation associate with marketing effectiveness of manufacturing firms in Port Harcourt.
3. To examine the extent to which customer awareness associate with marketing effectiveness of manufacturing firms in Port Harcourt.
1.4 Research Questions
The following research questions shall guide the study
1. To what extent do customer needs associate with marketing effectiveness of manufacturing firms in Port Harcourt?
2. To what extent do customer expectations associate with marketing effectiveness of manufacturing firms in Port Harcourt?
3. To what extent does customer awareness associate with marketing effectiveness of manufacturing firms in Port Harcourt?
1.5 Research Hypotheses
H01: There is no significant relationship between customer needs and marketing effectiveness of manufacturing firms in Port Harcourt.
H02: There is no significant relationship between customer expectation and marketing effectiveness of manufacturing firms in Port Harcourt.
H03: There is no significant relationship between customer awareness and marketing effectiveness of manufacturing firms in Port Harcourt.
1.6 Significance of the Study
The consumer as the focal point of the marketers is very complex and technical in his/her buying behaviour. Probing into the complexity and technicality will result into useful information about the consumer, which would be of greater interest to the marketers, manufacturers, and other interest groups like the government and the academicians. These will enable the marketer to recover new product opportunities or new ways of promoting existing product.
From the foregoing, it is believed that the completion of this work will provide empirical material on the relationship between customer orientation and marketing effectiveness. Also, it is believed that the work will serve as a stepping stone for future researcher as it will provide useful materials for future studies.
In another development, the result of this study will also guide marketers on the relationship between customer orientation and marketing effectiveness. This simply means that it will enable them to develop strategies that can foster their profitability, sales growth, market share, return on investment, sales turnover and customer retention which in turn will enhance marketing effectiveness of the firms.
1.7 Scope of the Study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves an investigation to ascertain the relationship between customer orientation and marketing effectiveness of manufacturing firms in Port Harcourt. The dependent variable is marketing effectiveness; measured by sales growth, market share and customer retention, while independent variable is customer orientation measured by customer needs, customer expectation and customer awareness.
Geographical Scope: This study is delimited to Rivers State with reference to selected manufacturing firms in Port Harcourt which includes Demcok Paints Limited, 76, Elioparanwo Road, Off Wimpey Junction, Mile 4, Port Harcourt, First Aluminium Plc, 19/21 Onitsha Street, Trans Amadi Industrial Layout, Port Harcourt and Kabelmetal Nigeria Plc, 6, Bori Road, Rumuibekwe Port Harcourt.
Unit of Analysis: The unit of analysis in this research involves both senior and Junior staff of the selected manufacturing firms at the time of the study.
1.8 Limitation of the Study
The study was limited by the following:
The level of frankness in response to questions by the respondents was quite doubtful.
Finance: Accessing fund for the research work was difficult and this to a great extent limited the quality of research activity.
Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.
Organization Policy: Policies of the organization limited the level of information received. The personnel of the firms were not willing to give information, stating that it was against the organization’s policy.
1.9 Definition of Terms
Customer awareness: It is a process educating customers about his/her company, its performances and the products or services his/her company delivers.
Customer expectation: It is the set of behaviors or actions that individuals anticipate when interacting with a company.
Customer needs: They are things that a customer wants needs or expects in a product or service.
Customer orientation: It is a business strategy that requires management and employees to focus on the changing wants and needs of its customers.
Customer Retention: It refers to the ability of a company or product to retain its customers over some specified period.
Market Share: It is the portion of a market controlled by a particular company or product.
Marketing effectiveness: It is the measure of how effective a marketing plan is at optimizing spending to achieve positive short and long-term results.
Sales Growth: It is the amount by which the average sales volume of a company’s products or services has grown, typically from year to year.
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