MARKETING COMMUNICATION AND MARKETING PERFORMANCE OF SMALL SCALE BUSINESSES IN RIVERS STATE

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Abstract

The main objective of this study is to examine the relationship between marketing communication and marketing performance of small scale businesses in Rivers State. The researcher therefore determined the sample size to use from the population of both the senior and junior staffs of all Jegin Consult, Regin Agency, Mapemond Resources and Favour Sport in Port Harcourt, which was unknown. Therefore, the sample size of this study is judgmental sample of 60 respondents. The statistical test used in the analysis of the data collected was the Chi-Square statistical tool. From the analysis, the study concludes that marketing communication influences the marketing performance of small scale businesses in Rivers State. As such, the following recommendations were made among others: that small scale business should ensure a cordial public relationship between them and their customers as this has the power to influence their marketing performance, that small scales businesses should as a matter of urgency re-strategize their personal selling strategy to pay more attention to achieving marketing performance.

Table of Content

Title Page    i

Cover Page ii

Declaration iii

Certification         iv

Dedication  v

Acknowledgements        vi

Table of Content  viii

CHAPTER ONE  1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of Problems      3

1.3 Objectives of the Study     4

1.4 Research Question   5

1.5 Research Hypotheses        5

1.6 Significance of the Study   6

1.7 Scope of the Study  6

1.8 Limitation of Study 7

1.9 Definition of Terms 8

CHAPTER TWO 10

REVIEW OF RELATED EMPIRICAL REVIEW         10

2.1 INTRODUCTION   10

2.2 CONCEPTUAL FRAMEWORK         10

2.2.1 Concept of marketing Communication       11

2.2.2 Dimensions of Marketing Communication  13

i. Advertising       13

ii. Personal Selling         14

iii. Public Relation         16

iv. Sales Promotion       17

2.2.3 Concept of marketing performance   18

2.2.4 Measures of Marketing performance 20

Profitability          21

Market share        23

Sales Volume       24

2.2.5 Marketing communication and marketing performance 26

`2.3 Theoretical Framework    28

2.3 Review of Related Empirical Studies    30

2.4 Summary of Literature Review   32

CHAPTER 3        33

RESEARCH METHODOLOGY      33

3.1 Introduction   33

3.2 Research Design      33

3.3 Population of the Study    33

3.4 Sampling Techniques Used         34

3.5 Sample Size    34

3.6 Sources of Data       34

3.6.1 Primary Source (s) of Data      34

3.6.2 Secondary Source of Data       34

3.7 Research Instrument for Data Collection       35

3.8 Validity and Reliability of Instrument  35

3.9 Techniques for Data Analysis     36

CHAPTER FOUR         37

DATA PRESENTATION AND ANALYSIS       37

4.1 Questionnaire and analysis of response         37

4.2 Data Analysis and Interpretation         38

4.3 Test of Hypotheses: 44

4.4 Discussion of Findings:     47

CHAPTER FIVE 50

SUMMARY, CONCLUSION AND RECOMMENDATION  50

5.1 Summary       50

5.2 Conclusion     51

5.3 Recommendations:  52

References: 53

Appendix 1 55

Appendix II          56

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

Communication is a vital tool in any business organization as well as other types of organizations. It is a factor that can sustain the existence of any organization. Communication also helps in understanding the concepts and variables that come across the thinking of informed person or group. Communication can be viewed as the process by which information is exchanged and understood mutually by two or more people usually with the intent to motivate or influence behaviour. Communication can also be seen as the flow of information from the sender to the receiver, taking a mutual understanding into consideration. Communication according to Sannie (2006), is ‘the imparting, sharing or exchange of ideas, knowledge, skills etc whether by speech, writing or signs.   He also defined communication as the process of passing and receiving messages, instructions and or directives. Sannie (2006) also viewed communication as ‘the process of transmitting and exchanging ideas, feelings and information through realization, symbol, writing and silence, to create mutual understanding between the communicator and the receiver.

Communication can be seen as a process by which one person or a group shares and imparts information to another so that both people clearly understand each other. It can also be defined as an exchange of facts, ideas, opinions, feelings or emotions by two or more animated objects. Communication can also be defined   as   any means   by which   a thought   is transferred or transmitted from one person to the other.

Most business organizations operate in a complex and competitive environment where demands are constantly changing. To confront this challenge, management of business organisations has had to increase the levels of resources with attention focused on attracting and retaining customers.  This situation has prompted the marketing concept that Kotler (1988) describes as the determination and subsequent satisfaction of customer needs and wants more efficiently and effectively than one’s competitors. In this era of intense competition, especially within the telecommunication sector, the criterion for measuring success would much depend, on creating awareness, persuasion and informing customers of the existence of offerings. This has however resulted in several marketing communications tools being employed by marketers to help them succeed in this game of competition. Marketing firms specifically, are managing their marketing communications activities in an integrated manner, with the coordination of message, media and timing, developed in support of the overall organizational objectives.

The most essential aspect of any business is selling their brand(s) since sales sustain any business’ existence. Selling, as a marketing function, involves promoting the product. This entails the use of personal selling, and advertising, including other direct mass-selling methods. Perhaps, this is the most visible aspect of marketing. Invariably,  sales  must  necessarily  begin  with  some  form  of  awareness  creation.  However to build sales, promotion must be seen or heard by potential buyers and cause them to react to the information in some way desired by the marketer. In order to elicit this desired action, Palmer (2005) posits that the message is presented according to a simple “master formula” (model) which is: Attract the “attention” of your prospect; “Interest” your prospect in the product; cause your prospect to “desire” the product, and demand “action” from the prospect. This is known as the AIDA concept, one of the numerous models adopted by marketing practitioners. This implies that getting the prospect’s attention is marketing communications first task. Marketing communications are messages and related media used to communicate with a market. Marketing communications is the “promotion” part of the “marketing mix” or the “four Ps”: price, place, promotion, and product. It can also refer to the strategy used by a company or individual to reach their target market through various types of communication. The problem associated with such performance measure for marketing is the conceptualization of marketing inputs. From the foregoing therefore, the study is determined to examine the relationship between marketing communication and marketing performance of small scale firms in Rivers State.

1.2 Statement of Problems

In ancient years, management have developed formal communication channels to enhance effective performance in offices/organization but little do we know whether the channel their objectives in the organizational set-up.

Some organizations despite the possession of formal communication channels or organization charts are still performing below the expected level.

Perhaps creating awareness of a firm’s product(s) and subsequent purchase is essential for most organizations’ success and long-term growth. One key challenge confronting most trading firms, small businesses in Rivers State being no exception, is how to measure and evaluate the impact of their integrated marketing communication efforts on their business effectiveness as a whole. The evaluation of personal selling effectiveness, for example, seems to be the most challenging aspect of the marketing communications efforts as authors such as Fahy, Farrelly and Quester (2004); Chadwick and Thwaites (2004); and Stotlar (2004), highlighted. The basic question then is whether the firms engaged in these activities are getting the required returns from the huge financial commitments into such activities.  Therefore the study seeks to examine the relationship between marketing communication and marketing performance of small scale businesses in Rivers State.

1.3 Objectives of the Study

The main objective of this study is to examine the relationship between marketing communication and marketing performance of small scale businesses in Rivers State. The specific objectives are as follows:

1.       To examine the extent to which advertising associate with marketing performance of small scale businesses in Rivers State.

2.       To examine the extent to which sales promotion associate with marketing performance of small scale businesses in Rivers State.

3.       To examine the extent to which personal selling associate with marketing performance of small scale businesses in Rivers State.

4.       To examine the extent to which public relation associate with marketing performance of small scale businesses in Rivers State.

1.4 Research Question

The following research questions were proposed to guide the study.

1.       To what extent does advertising associate with marketing performance of small scale businesses in Rivers State?

2.       To what extent does sales promotion associate with marketing performance of small scale businesses in Rivers State?

3.       To what extent does personal selling associate with marketing performance of small scale businesses in Rivers State?

4.       To what extent does public relation associate with marketing performance of small scale businesses in Rivers State?

1.5     Research Hypotheses

The following hypotheses were formulated to guide the study:

HO1: There is no significant relationship between advertising and marketing performance of small scale businesses in Rivers State.

HO2: There is no significant relationship between sales promotion and marketing performance of small scale businesses in Rivers State.

HO3: There is no significant relationship between personal selling and marketing performance of small scale businesses in Rivers State.

HO4: There is no significant relationship between public relation and marketing performance of small scale businesses in Rivers State.

1.6 Significance of the Study

This research is designed to be of great benefit to both business organizations, governments and the general consuming publics.

It will remind them that marketing communication helps to promote product and services to win acceptance, enhance marketing performance of small businesses and help gain competitive edge. It will equally be of use to organizations, as it will enable them to know where, when and how consumers appreciate. To the government, it will help them to understand the role of marketing communication is very essential in marketing performance.

It will also help in regulating and checking business organization on when a low quality product is being produced and distributed into the market. To the general public, it will help them to know that they have the right to accept or reject an advertisement.

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 marketing communication and marketing performance of small scale businesses in Rivers State. The dependent variable is marketing performance, measured by profitability, sales volume and market share. While independent variable is marketing communication measure by advertising, sales promotion, personal selling and public relation.

Geographical Scope: This study is delimited in Port Harcourt Rivers State with references to some selected small scale businesses in Rivers State which include Jegin Consult Woji Road, Regin Agency Mile 3 Diobu Port Harcour, Mapemond Resources Peter Odili Road and Favour Sport all in Port Harcourt.

Unit of Analysis: The unit of analysis in this research involves both senior and junior staffs of Jegin Consult Woji Road, Regin Agency Mile 3 Diobu Port Harcour, Mapemond Resources Peter Odili Road and Favour Sport all in Port Harcourt at the time of carrying out the study.

1.8 Limitation of Study

The study was limited by the following:

The level of frankness in response to questions by the respondents is quite doubtful.

Finance: Accessing fund for the research work was difficult and this 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

Definition of some of the key words in this work should be briefly discussed below to enable the research to fully digest the media message in the research.

Marketing: Is the activity, set of institutions, and processes for creating communicating, delivery, and exchanging offering that have value for customers events, partners and society at large American marketing Association.

Advertising: Any paid form of non-personal communication which is directed to the consumers or target audiences through various media to prevent and promote product, services and idea.

Product: An article or substance that is manufactured or refined for sale.

Promotion: Activity that supports or provides active encouragement for the furtherance of a cause, venture, or aim.

Sales Promotion: Sales promotions are short-term incentives to encourage the purchase or sale of a product.

Public Relations: Publicity is the disseminating of information by personal or non-personal means, which is not directly paid for by the organization, nor is the organization the source. free coverage  in  their  stories  related  to  their  product.

Personal Selling: Personal selling is face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders.

Direct Marketing: Direct marketing specifically ensures sending a promotional message directly to consumers rather than via a mass medium. It is aimed at creating and exploiting a direct relationship between producers and their customers.

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