MARKETING STRATEGIES AND SALES PERFORMANCE OF RETAIL ORGANIZATIONS IN PORT HARCOURT, RIVERS STATE

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Abstract

The study examined the relationship between marketing strategies and performance of retail organizations in Port Harcourt, Rivers State. The survey design was employed since the study was to ascertain the relationship between marketing strategies and performance of retail organizations. The population of this study constitutes management and staff of all retail organizations in Port Harcourt which was unknown. The sample size of this study was a judgmental sample of 42 respondents which comprise of both the senior and junior staff of Nextime Supermarket Abacha Road and Spar Garrison Junction, Port Harcourt. In this study both the primary and secondary data were used. A self-designed questionnaire on marketing strategies and performance of retail organizations was used and administered for the collection of data from the respondents. The data collected were processed electronically using Statistical Packages for Social Sciences (SPSS). The statistical test used in the analysis of the data collected was Pearson Product Moment Correlation Coefficient. Findings amongst others reveal that product, pricing and distribution strategies associate with performance of retail organizations in Port Harcourt, Rivers State. Based on the findings of the study, we recommended amongst others that retail organizations should adopt sustainable product strategies that will enhance the performance of their product and service.

 

Table of Contents

Title Page    i

Cover Page ii

Declaration iii

Certification         iv

Dedication  v

Acknowledgements        vi

Abstract      vii

Table of Contents viii

CHAPTER ONE  1

INTRODUCTION         1

1.1 Background of the Study  1

1.2 Statement of Problem        3

1.3 Objectives of the Study     3

1.4 Research Questions 4

1.5 Hypotheses    4

1.6 Significance of the Study   5

1.7 Scope of the Study  5

1.8 Limitation of Study 6

1.9 Definition of Terms 7

CHAPTER TWO 8

REVIEW OF RELATED LITERATURE   8

2.0 Introduction   8

2.1 Conceptual Framework     8

2.1.2 Concept of Marketing Strategies       9

2.1.3 Dimension of Marketing Strategies   10

  1. Product Strategy 11
  2. Promotion Strategy 12

iii. Distribution Strategy          13

  1. Pricing Strategy 15

2.1.4 Concept of Sales Performance 16

2.1.5 Measures of Sales Performance         17

  1. Profitability 18
  2. Market share 19

iii. Sales Volume  21

2.1.6 Marketing Strategies and Sales Performance        22

2.2 Theoretical Framework     23

2.2.1 Porter’s five Forces of Competitive Position Analysis   23

2.3 Review of Related Empirical Studies    25

2.4 Summary of Literature Review   27

CHAPTER THREE       28

RESEARCH METHODOLOGY      28

3.1 Introduction   28

3.2 Research Design      28

3.3 Population of the Study    28

3.4Sampling Techniques Used          29

3.5 Sample Size    29

3.6 Sources of Data       29

3.6.1 Primary Source (s) of Data      29

3.6.2 Secondary Source of Data       29

3.7 Research Instrument for Data Collection       29

3.8 Validity and Reliability of Instrument  30

3.9 Techniques for Data Analysis     31

CHAPTER FOUR         32

DATA PRESENTATION AND ANALYSIS       32

4.1 Questionnaire and analysis of response         32

4.3 Hypotheses Testing 39

4.3 Discussion of finding         42

CHAPTER FIVE 45

SUMMARY, CONCLUSION AND RECOMMENDATION  45

5.1 Introduction   45

5.2 Summary       45

5.3 Conclusion     46

5.4 Recommendation     47

References  48

Appendix I 53

Appendix II          54

 

 

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Marketing activities play important role in the growth and survival of any business organization. In recent times, marketing activities in the world today have been posing serious problems to the retail organizations because of the competitive nature and increase in the number of organizations and other manufacturing industries. Marketing as we know it today was given little or no attention. A successful marketing operation must rest on careful thought and plan. The strategic aspect of the plan should be based on what was known of the competitors strength and positioning the physical characteristic of the battle ground, the financial or hostile sentiment of those who occupy the territory, and of course, the strength and character of the resources available to compete. Ebitu (2014) conceived strategy as an action plan or a set of plans intended to achieve specific goal or objectives over a period. He further stressed that marketing strategy is an action plan on how organization intends to achieve its marketing objectives.

Orji (2010), conceive a strategy as a pattern of action and resources allocations designed to achieve the objectives in an organization. He also found strategy as a game plan for “getting there” and that every business must follow a strategy for achieving its marketing goals. Louise and David (1989) in Orji (2010) pointed out that marketing strategy is the overall company programme for selecting a target market and satisfying the target consumers through a blending of the marketing mix elements. The component of the marketing mix such as product, price, distribution and promotion represent subset of the marketing strategy. These key elements must be coordinated and put into a unified effective strategy where product must perform well in the market. The marketing strategy is direct and useful in business and in marketing.

Firms performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives).

According to Richard, (2009), performance encompasses three specific areas of firm outcomes: (a) financial performance (profit, return on assets, return on investments, etc.); (b) product market performance (sales, market share, etc); (c) shareholder return (total shareholder return, economic value added, etc.). Performance could be evaluated by organizational performance. Drucker, (1999) pointed out the measurement of performance through non-financial ways that Operating Performance was segmented by time; the short-term objective should consider the value of shareholders, while the long-term objective aimed to balance the sustainable operation and survival. Robbins, (2001) indicated that financial performance and marketing performance were generally used for operating performance of a business. Financial performance contained rate of return, return on sales, pretax income, volume of sales, and sales growth rate, while market shares were the representative of marketing performance. Erdogan, (2001) considered that the denouncement and problems in operation could be discovered through the measurement of operating performance aiming at the operational performance and the employees’ work performance. In other words, operating performance of a business stands for the business performance of the organization interacting with external environments.

Aiming at the definition and indicator of performance, the following dimensions in operating performance organized by Chang, (2009) are utilized for this study. From the foregoing therefore, the study seeks to examine the relationship between marketing strategies and the performance of retail organizational in Port Harcourt, Rivers State.

1.2 Statement of Problem

Every firm which intends to improve on its marketing must create good marketing strategies for its operation. These strategies should be effective and increase the sales/profitability of such companies and will also help the company to achieve its goals.

Paramount problem as regards to the decline in the level of sales performance is due to the marketing strategies being adopted.  This situation led the researcher to undertake a research work to know how to improve the standard of marketing strategies to improve the performance of retail organizations in Port Harcourt, and to know the roles that could be played by the marketing managers in enhancing sales performance and organizational growth in Nigeria. This study therefore is determined to examine the relationship between marketing strategies and performance of retail organizational in Port Harcourt, Rivers State.

1.3 Objectives of the Study

The main objective of the study is to examine the relationship between marketing strategies and performance of retail organizational in Port Harcourt, Rivers State. The specific objectives are as follows:

  1. To examine the relationship between the product strategies and performance of retail organizational in Port Harcourt, Rivers State.
  2. To examine the relationship between the price strategies and performance of retail organizational in Port Harcourt, Rivers State.

iii.      To examine the relationship between distribution strategiesand performance of retail organizational in Port Harcourt, Rivers State.

  1. To examine the relationship between promotionstrategiesand performance of retail organizational in Port Harcourt, Rivers State.

1.4 Research Questions

In line with the objectives of the study, the following questions will be answered.

  1. Do product strategies relate with performance of retail organizational in Port Harcourt, Rivers State?
  2. To what extent does pricing strategies influence performance of retail organizational in Port Harcourt, Rivers State?

iii.      What is the relationship between the distribution strategies and performance of retail organizational in Port Harcourt, Rivers State?

  1. Do promotion strategies influence performance of retail organizational in Port Harcourt, Rivers State?

1.5 Hypotheses

The following research hypotheses were formulated to guide the researcher:

HO1: There is no significant relationship between product strategies and sales performance of retail organizational in Port Harcourt, Rivers State.

HO2: There is no significant relationship between pricing strategies and sales performance of retail organizational in Port Harcourt, Rivers State.

HO3: There is no significant relationship between distribution strategies and sales performance of retail organizational in Port Harcourt, Rivers State.

HO4: There is no significant relationship between promotion strategies and sales performance of retail organizational in Port Harcourt, Rivers State.

1.6 Significance of the Study

The significance of the study cannot be over emphasized. It can be seen from the problem statement that major difficulties are identified with marketing strategies. It is hoped that the study will help retail organizations, managers, marketing managers on the field of study to adopt better marketing strategies that will improve the overall performance forthe organizations and help them realize set goals and objectives.

The recommendations made in this study if applied would provide initial steps in major decision on the determination of the present marketing strategies that can be used to improvethe performance of retail organizations in Port Harcourt, Rivers State.

The study will also help the reader to know that the success of an organization especially retail organizations depends on a good marketing strategy so that it will present good image and increase their sales revenue. It will also widen the researcher’s knowledge about the various strategies available and how they can be applied to the marketing firms and manufacturing industries.

Above all, the study will also help the people to know the value of marketing strategies and how it can be used to attract new market customers from existing market.

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 marketing strategies and retail organizations. The dependent variable is performance, measured by profitability, market share and sales volume. While independent variable is marketing strategies measure by product strategies, price strategies, distribution strategies and promotion strategies.

Geographical Scope: This study is delimited in Port Harcourt Rivers State with references to some selected retail organizations including Nextime Supermarket Abacha Road and Spar Garrison Junction, Port Harcourt.

Unit of Analysis: The unit of analysis in this research involves both senior and Junior staffs of Nextime Supermarket Abacha Road and Spar Garrison Junctionat 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

MARKET:  Market is people or organization that has money, they ready and willing to spend their money for the product of choice during a marketing plan.

MARKETING MIX:      The marketing mix refers to the set of actions or fact that the company uses to promise its bound or product in the market.

MARKETING: Marketing is the process of planning and executing the consumption pricing, promoting and distribution of ideas goods and services to create exchange that satisfy individual and organizational objective.

STRATEGY: Is an ability of person skilled or planning things, or a plan designed for a particular purpose.

PERFORMANCE: Performance comprises the actual output or results of an organization as measured against its intended outputs.

 

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