CHAPTER ONE SAMPLE OF RESEARCH PROJECT

ASSESSMENT OF MARKETING STRATEGY ON THE PROFITABILITY OF A COMPANY:A CASE STUDY OF FORTIS MICRO FINANCE BANK LIMITED, WUSE ABUJA.

CHAPTER ONE

INTRODUCTION

1.1.      Background Of The Study

This study argues that a complete company business is necessary. This will result in interventions which will improve the quality of strategic marketing decisions and consequently profitability of the company.  Due to lack of a model available on how marketing strategy affects the profitability of a company, a comprehensive literature search will be done and norms of marketing strategies will be developed and subsequently used to bench mark the practices of organizations.

A marketing strategy is a method by which a firm attempts to reach its target audience. Marketing strategies start with market research, in which competitors’ products are assessed and it continues through advertising, promotion, distribution, price and where applicable, customer servicing, packaging, sales and distribution.

Marketing strategy must focus on delivering greater value to customers and the firm at user cost.  However, quantifying the return on investment from marketing expenditure on activities such as advertising, promotion and distribution is one of the most complex issues facing decision makers in every organizations today.

 Marketing performance is central to success in today’s fast moving competitive markets, and measuring marketing performance is critical to managing it affectively.

In order to measure marketing strategy effectiveness, firm has to break down its marketing function into constituent parts, along with a mechanism through which to analyze the interaction between those parts Bello Ayuba (2009). By doing this, decision makers will finally be in a position to relate marketing expenses to shareholders value and to understand how to tie marketing initiatives back into value. Decision makers will be able to understand the internal motives that propel the marketing value of the business.

The manipulation of the following marketing variables namely; price, promotion, research, advertising, product differentiation, quality, packaging and place will yield increase returns for firms. The trading environment in Nigeria as globally has changed dramatically in recent years.

Whether in town, cities or more rural areas, there has been significant economic and social change which has altered the ability, perception and behavior of consumers with regard to shopping and retailing. The needs and desires of consumers have changed in different ways. Although there are constant needs in the general sense, such as access to food and clothing, the consumption of products has varied considerably.

1.2     Statement Of Problem.

Problems that lead to business failure may be classified into main categories (internal and extend factors). The internal problems are mainly management related problems - majority of company business failure may be caused by the poor quality of management.

To this end the poor operated company business will fail while the well managed will succeed and this is illustrated as follows:

i.             Wrong choice of business: establishing a business on a wrong footing may lead to its sudden failure. Entrepreneurs should choose business field that are promising rather than slogging it out with business opportunities already crowded.

ii.           Lack of business connection: inability of an entrepreneur to foster good relationship with customers and creditors may lead to the collapse of a business organization.

iii.         Location problem: poor location affects a business. Inability of a business to be located where substantial portion of customers can be easily reached, may contribute to business failure.

iv.          Lack of experience: lack of knowledge particularly technical-know-how in the particular business undertaken by the entrepreneur will lead to failure.

v.            Lack of managerial know-how: majority of company, industries lack the necessary managerial know-how for effective running of a business.

1.3     Objective Of The Study

The objective of this study is expected to take a more proactive stance in terms of creating awareness on how to plan marketing strategies in order to enhance productivity level and improving the quality standard of the people and maintaining adequate or appropriate infrastructures conducive for profitability of a company driven economic development.

At the end of this research, the following objectives would have been achieved

i.             Understanding the impact of marketing strategy on the profitability of a company.

ii.           To ascertain whether company owners in Abuja, Northern Nigeria adopt marketing strategies that maximize their profitability and hence owners wealth.

iii.         To contribute to a more comprehensive understanding of variables that advance on the marketing strategy and performance of a company.

iv.          To determine how lack of capital impedes on the marketing strategies of organizations.

v.            Repositioning the company to improve on its marketing strategies.

1.4     Scope Of Study

The scope of this study is “the impact of marketing strategy on the profitability of a company” - the company is the engine of economic growth and it is the executor, investor, and manager of business.

Therefore, the range of coverage for convenient sake, the study scope is to examine the Fortis Micro Finance Bank, Wuse, Abuja, Nigeria.

1.5     Research Hypothesis

For valid and effective work on the topic in focus, the following key research hypothesis would be addressed in the course of study.

There are two types of hypothesis, the Null hypothesis that takes the negative form and the Directional or Alternative hypothesis that takes the positive form.

Let H₀      stands for Null hypothesis

Let H₁      stands for Directional/Alternative hypothesis

H₀           Marketing strategy does not result to profitability in an organization

H₁           Marketing strategy does result to profitability in an organization

H₀           Marketing strategy does not have significance impact on the organizational growth.

H₁           Marketing strategy does have significance impact on the organizational growth.

H₀           Marketing strategy does not enhance productivity in an organization.

H₁           Marketing strategy does enhance productivity in an organization.

1.6     Significance Of The Study

A company is an entity that can sue and be sued and it consists of individuals and organization - its economic resources are commonly owned and all its activities are economic agents in the pursuance of its goals and national development. In capitalist economic, the company is supposed to be in the forefront, enjoying considerable autonomy and freedom in the pursuance of profit with government providing only rules and regulations. These are predominantly profit seeking organization such as business firms. Profits are partly retained by the firms and partly distributed to the owners. Managers are employees of the organization under mutually agreed upon condition of employment.

The research would be of importance in the following areas:-

i.             Due to its legal background, it is unlike individual marketing firms.

ii.           As shares are not easily transferable, there is no dilution of the management and strategy.

iii.         The liabilities of shareholders are limited

iv.          A company does not need to declare its profits position to the entire public as it is not a quoted firm.

v.            It is a partial requirement for the owner of a Diploma in business administrations.

1.7     Limitations Of The Study

It would be premature to state limitations here, but limitations are inevitable in a research work like this and would be stated after chapters 2, 3, 4 and 5 are completed. 

1.8.    Definition Of Terms

A COMPANY: This is a business organization that is purposive established to make money or profit by producing or selling goods or services.

EMPLOYEE/PERSONNEL: This refers to the member of staff of Forties Micro Finance Bank.

TARGETS: Target as referred to in this study deals with the objectives of the organization.

RANDOM SAMPLING; WITHOUT REPLACEMENT: As used in the study, it involved representing each person within the population of the organization by number and those numbers were drawn by ballot from an arrangement of number in a way that number drawned cannot be replaced by another number even if the person the number represents cannot be found or is not around to answer questionnaire.

RESPONDENT: This refers to the number of staff of Forties Micro Finance Bank whose answers to the questionnaire were collected.

REPORT: As used here means the atmosphere of friendliness.

PRE-TESTING: This is testing the questionnaire before distribution to avoid an ambiguous questions and also to know how long it takes to fill questionnaire.