THE PRACTICE OF MATERIAL MANAGEMENT AND MARKETING PERFORMANCE OF SELECTED OIL MARKETING COMPANIES IN PORT HARCOURT

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ABSTRACT

The study was determined to examine the practice of material management and marketing performance of selected oil marketing companies in Port Harcourt. The research design used descriptive and survey method of data collection in an attempt to empirically examine the practice of material management and marketing performance of selected oil marketing companies in Port Harcourt. The population of the study was made of the entire staffs of SPDC, Total, Elf, Agip, Intels and Exon Mobil. The sample size of this study is judgmental sample of 75 respondents which comprise of both the senior and junior SPDC, Total, Elf, Agip, Intels and Exon Mobil. Data used in this study were obtained from two source namely, primary and secondary sources. The research instrument used for the collection of primary data needed for the study was mainly questionnaire. The questionnaire was designed in a way that respondents could easily provide adequate answers for the study. The Chi-Square statistical tool was used to test the hypotheses. Findings reveals that there is a significant relationship between the practice of material management and marketing performance of oil marketing companies in Port Harcourt. Based on the findings of the study summary, conclusion and recommendations were made that Oil and gas marketing scholars or researchers should endeavour to study holistically the relevant business functions and activities which may enhance or hinder the understanding and subsequently applicability of relevant modern management concepts and principles to oil services marketing.

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Effective material management and procurement can contribute significantly to the success of building materials industries as well as other organizations. Growing management interest through necessity and improved insight into the opportunities in the material, area has resulted in a variety of organization concepts.

In this work, we will try to look at the procurement activities in the building materials industries in Port Harcourt.

According to Iruka (1993), procurement is a synonym for buying or purchasing. Lender (1988:2), opines that the term purchasing describes the process of buying, learning of the need, locating and selecting a supplier negotiating price, and other pertinent terms and following up to ensure delivery.

Materials management deal with planning and building design for the movement of material or with logistics that deal with the tangible component of a chain supplied.

Specifically, this covers the acquisition of spare parts and replacement quality control of purchasing or ordering such part and the standards involved in ordering, shipping and warehousing the parts (Keubler 1995). Thus, goals of material management are to provide an unbroken chain of component for the customer base towards marketing performance. Materials management enhance marketing performance of sales increment, branding commitment of sales force, growth of merchandizing activities, expansion of market shares, rises in customers satisfaction, increase in profitability, productivity and promotional activities.

James (2003) argued that, the implementation of materials management concept in the long term enhances its profit ability. It is in the light of this Skinner (1989) opines that proper material management implementation contributes to sales volume increment and market share expansion towards customers satisfaction. Furthermore, Dutta (1998) argued that material management proficiency leads to effectiveness in the management of purchasing and stores. Items which could generate high profitability and sales increment.

Effective material management and marketing performance can contribute significantly to the success of building material industries in Port Harcourt as well as other organization.

1.2   STATEMENT OF THE PROBLEM

This study is poised at comprehensively determining the practice of materials management and marketing performance of oil marketing companies in Port Harcourt. The procurement activities of any organization or company are so weighty to the extent that they are weightily integrated into the broad business terms known as materials management. Because of the complex nature of these procurement activities, the strategic management in the organization ensures that they tailor every program, plans, procedure, policy, strategy, and objective towards the actualization of the corporate mission statement or philosophy of the organization.

This study will find out and understand what building material industry procurement activities are, as well as how this activities are organized or corporately managed to ensure perpetual existence and successful growth.

This study will also reckon with the merchandising, purchasing, promotions and pricing programmes and the factors affecting the operations of building material industries, as well as the role of effective customer service management to the success of the industries. Effect will also be exerted to examine the quality management, utility creation, and the right procurement sources to the system. This study is therefore, specifically designed to examine the procurement activities in the building materials industry in Port Harcourt.

1.3   PURPOSE AND OBJECTIVES OF THE STUDY

The main purpose of this study is to investigate the pracetice of materials management marketing on the performance of selected oil marketing companies Port Harcourt.

The specific objectives are:

1) To determine the relationship between material management modes and profitability of the firm.

2) To analyzes the relationship between economic order quantity and sales increment of the firm.

3) To improve means by which materials management strategic plains can equipped the sales force growth of the essence of adequate and protective storage capacity.

4) To determine the effect of materials management, techniques towards promotional activities of the firm.

1.4 RESEARCH QUESTIONS

  1. What are the relationship between material management modes and profitability of the firm?
  2. To what extent is the relationship between economic order quantity and sales increment of the firm?
  3. What are the means by which materials management strategic plains can be equipped the sales force growth of the essence of adequate and protective storage capacity?
  4. What is the effect of materials management, techniques towards promotional activities of the firm?

1.5 RESEARCH HYPOTHESES

HO: There is no significant relationship between the material management and marketing performance of oil marketing companies in Port Harcourt.

HI: There is a significant relationship between the material management and marketing performance of oil marketing companies in Port Harcourt.

1.6   SIGNIFICANCE OF THE STUDY

The study will be useful to the following groups and corporate firms.

It beneficial to the management of the oil producing firms likewise, all stock holders in the manufacturing company. The study is expected to be of use to organization practicing material management such as employees, hospitals, construction companies and marketing management consultants.

Also the study will be beneficial to universities institutions, particularly those involved in seminars, symposium and workshops, as it is a rich materials. The study adds to the stock of knowledge in the field of management science research as it fills the wide vacuum created by existing literature materials on the research problem.

1.7 SCOPE OR DELIMITATION OF THE STUDY

The area of this study focuses on the oil producing companies (i.e. Exxon Mobile, SPDC, Total elf, Agip, Intels) in the Port Harcourt metropolis. The study discusses the role of material management techniques (e.g. EOQ, Two bin system Pareto analysis quenching etc) toward the effectiveness had efficiency of market, performance, such of profitability, sales revenue increment, expansion of market share, equipping sales force.

1.8 LIMITATION OF THE STUDY

A study of this nature cannot be expected to be problem- free, given the fact that the study is new; the researcher is a student faced with both controllable and uncontrollable variables. Besides the following under state issues equally militates against the study. Attitude of the respondent interpretation of result finding, unple ntifulness of relevant materials.

1.9 DEFINITION OF TERMS

Material Management: Is a techniques use to actualize potential benefit in the stock control in other to minimize cost and maximize profit.

Profitability: It is the index that measures gross-profit and net profit yield in firm’s sale activities.

Market Share: It is the percentage of the aggregate or total market that a firm has capture on controls within a period of time.

 

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