APPLICATION OF MARKETING CONCEPTS IN MANUFACTURING INDUSTRY(A CASE STUDY OF SUNGLASS LTD KADUNA)


 

CHAPTER ONE

INTRODUCTION

1.0   Background of the study

Marketing was defined by Kotler (2001) “as a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. Staton (1964) defines marketing “as a total interaction of business activities designed to plan, price, promote, and distribute  want satisfying products and services to present to potential customers.

Schew and Smith (1982) saw marketing concept as the philosophy of business or attitudes of management which maintain that the local point of the entire firm is the consumer.  These marketing activities are called the marketing mix which basic function includes product development, packaging branding, pricing, placement, and promotion clearly, marketing activities  should be carried out under a well thought out philosophy of efficient, effective, and socially responsible marketing.  Kotler (2001) how ever maintains that there are five competing concepts under which organization conduct marketing activities, the productions concept, product concept, selling concept, marketing concept and societal marketing concept.

All business administrators recognize that marketing is important for the success of a business and that customers want satisfactory is the economic and social justifications of a company’s existence. All company’s activities are devoted to determine what the customers want and then satisfy these want.  While still maintaining reasonable profit marketing is one of the major activities that determines the success or otherwise of every organization. As such marketing plays a vital role in attaining organizational objectives organizations therefore; need marketing concepts in order to achieve greater productivity as well as satisfying consumer wants.

It is far easier to sell goods or services that properly match the needs or wants of buyers than to sell the products that do not, and since sound knowledge of consumers need and wants provide information base to effect this match, application of the marketing concept should result in greater sales which assumes efficient and effective management of costs subsequently result is greater profit. Consumers communicate their needs and wants by buying or refusing goods and services offered to them by retailers and other intermediaries .  If the offering are satisfying sales occur and more order will be made, but if the product are not satisfying no sales will occur which will show that the products have not gotten acceptance from consumers.

A successful organization is that which recognize consumer’s desire and therefore adjust its activities to meet those needs and adjust its activities to meet those needs and wants.  As always says “consumer is a king” therefore, for any organization to live successfully must consider its consumers by doing what is standard to them.  The success of organization therefore, depends on the success of her product or services which in turn is tied to the effectiveness of marketing mix.  Marketing mix and tools that keep producers to continue to acquire large share of the market for its products, the longer the market the longer the output hence leading to full resource utilization (capacity utilization), with these tools organizations can able to hit target of their marketing as well as operating at full capacity.

Each and every organization have concept that will best match their products.  Some organization believe in production in large quantity and wait for buyer to buy  (production concept) and some produce and go out to persuade consumers to buy (Selling concept), while some produce in order to satisfy its consumer as well as making profit (marketing concepts) and so on.  All these applications depends on the nature and of product organizations is producing as well as how those products get acceptance in the market.

1.1   Historical Background of Sunglass Nigeria Ltd.

Sunglass Nigeria limited as one of the manufacturing organization in Kaduna was incorporated as a limited liability company in the year 1992 to under take the business of producing glass containers.  After incorporation the company bought over the assets of  the former Ballapur Glass limited which explains why sunglass is occupying the premises vacated by the defunct Ballapur Glass.

Sunglass employs over 500 persons directly and many more indirectly. Source its raw materials about 85% locally (Katsina, Kogi, Abuja, Borno, and Plateau) which constitute Sand, Marble powder, Dolomite, feldspar, Barytes.

Sunglass Nigeria limited has started producing glass containers on the 15th of November, 1995, to its consumers within and outside the state.  And it is doing averagely in the industry.  Sunglass is equipped with high speed automotive machines that produce up to 260,000 glass bottles daily,

1.2   Statement of the Problem

Several philosophers of business affairs have propounded different producers on how to administer the affairs of business efficiently.  Marketing as one of the   business aspect i.e one of the aspect of business management has its own procedures (theoretical principles for business applications).  Nigeria as a developing nation blessed with abundant natural resources that can feed the manufacturing industries to work at full capacity and it has a large marketing size to consume significant proportion of output produced.  But it has been discovered that most industries are there but operating below capacity that shows there is something which  has negative effect on these industries, is it that they lack professional knowledge on how to manage the resources or how these industries reach the end users, and not only reaching them but maintaining existing customers and exploring new ones.

1.3   Objectives of the study

The objectives of the study are as follows:

-      To assess the extend to which manufacturing industries apply marketing concepts.

-      To find out why manufacturing industries  operate below capacity

-      To find out the hindering factors to reach final consumers.

1.4   SIGNIFICANCE OF THE STUDY

This study is meant to add more light on how to apply marketing concepts in an organization in order to achieve greater productivity. The study will also help students who are reading about marketing to know the practical aspect. In their field, also can serve as a source for further research work.  This study will also help manufacturing organization particularly small and medium to be acquainted with the methods of applying marketing concepts in their operation.

1.5   RESEARCH QUESTIONS

1.     What should be the effective ways of applying marketing concepts?

2.     Why manufacturing organization operate below capacity?

3.     What factors to be used in order to reach final consumers effectively?

1.6   SCOPE OF THE STUDY

The aim of this study is to identify the significance of marketing concepts in satisfying consumers need and wants.  This study therefore covers marketing area with respect to sunglass limited as a glass container producers in Nigeria.

1.7   LIMITATION OF THE STUDY

Studies of this nature cannot be made without facing some problems.  These include:

Time: Time is very short to carry out this research work but   effort were made to make best use of the time given.

Confidentiality:-For the sole fact that sunglass ltd is a foreign company some important and necessary document and information that would have enviched this work could not be displayed to seeing.