THE IMPACT OF MARKETING STRATEGY ON PRODUCTIVITY OF ORGANIZATION

THE IMPACT OF MARKETING STRATEGY ON PRODUCTIVITY OF ORGANIZATION

ABSTRACT

Previous studies and marketing texts in Nigeria have not fully addressed the difficulties of measuring marketing strategy in relation to productivity. As a result, this study investigates the impact of First Bank’s marketing strategy. First Bank’s Kaduna main branch, with a staff of 135 people, was chosen as the sample location from the bank’s whole customer base. The research design is made up of the survey method. The research instrument is a five-point Likert scale questionnaire created by the researcher. Data analysis used the mean scores. The analysis shows that the customer service strategy, advertising, quality enhancement, special packaging, and efficient distribution methods are the main components of the marketing plan used by First Bank. First Bank’s marketing strategy affects its productivity by increasing customer value, which facilitates an increase in sales. Despite this, First Bank’s marketing strategy is constrained by issues caused by its inability to combine a variety of models and marketing tools in order to withstand the dynamism inherent in strategic implementation due to shifting market conditions.

Absence of integrated views of planning and development of marketing strategy, as well as the marketing environment. As a result, it was advised that there should be a complete “paradigm shift” in managerial thinking towards the delivery of high-quality services through ongoing training and education of workers in areas like customer retention and satisfaction. Companies create, devise, and implement a variety of strategies to accomplish a set of organizational goals and objectives. These tactics may be corporate, commercial, or practical.

CHAPITER 1

INTRODUCTION

1.1  BACKGROUND TO THE STUDY

Companies create, devise, and implement a variety of strategies to accomplish a set of organizational goals and objectives. These tactics may be corporate, commercial, or practical. Depending on the author’s background, interests, and education, marketing has been described and theorized in a variety of ways. For instance, marketing can be viewed as a matrix of commercial activities set up to plan, create, price, promote, distribute, and market products, services, and ideas to target audiences of customers and clients. Any firm, whether it is focused on providing services or selling goods, needs a solid marketing strategy to be successful.

A company’s marketing plan is a tool it employs to draw clients as it works to reach its target market. Market research is the first step in any successful marketing plan. It allows companies to focus their limited resources on the most promising prospects to boost sales and gain a durable competitive advantage (Nymous, 2006). One of the most challenging problems facing decision-makers is determining the return on investment from marketing expenditure on activities like advertising, promotion, and distribution. Marketing strategy must focus on providing greater value to customers and the company at a reduced cost. In today’s fast-paced, competitive marketplaces, marketing performance is essential to success, and assessing it is essential for effective management (Chiliya, 2009).

A company must deconstruct its marketing function into its component elements and have a method for analyzing how those parts interact in order to evaluate the effectiveness of its marketing strategy. This will enable decision-makers to connect marketing expenses to shareholder value and comprehend how to link marketing initiatives back to the value produced for the business. The internal motivations driving the marketing value of the company will be clear to decision-makers. Increased profits for businesses will result from the manipulation of the following marketing variables, including pricing fluctuation and price promotion, research, advertising, product differentiation, quality, packaging, and site. Commercial banks use marketing techniques as the cornerstone of marketing plans created to satisfy consumer wants and accomplish marketing goals. A thorough examination of both the internal and external environments is necessary for marketing strategy. The marketing mix is one example of an internal environmental component, along with performance evaluation and strategy limitations. The evaluation of the component of the technological, economic, cultural, or political/legal environment likely to have an impact on success is one of the external environmental factors, along with customer analysis, competitive analysis, target market analysis, and customer analysis of the climate.
The main goal of Nigerian commercial banks’ marketing strategies is to profitably channel the flow of banking services to their target clients.  Because of the fierce competition among financial institutions—not just banks—an efficient marketing plan is required. Thus, banks plan their marketing to determine customer demands, meet those needs, and create customer value in order to enhance the value of their services and obtain a competitive edge. Measuring marketing techniques in connection to production is difficult, though. In fact, a number of researchers claim that this is a myth (okoh, 2009). In opposition to this, the researcher thought the subject matter to be a problem deserving of examination.

1.2  STATEMENT OF THE PROBLEM

Marketing plans are interactive and dynamic. They are only partially planned as such, and due to the effect of macro and micro environmental conditions, the majority of organizations do not strictly follow their organization’s intended strategy. As a result, the majority of the organizational components of the marketing plan are inconsistent with the company’s broader objective, making them ambiguous and difficult to understand. As a result, it becomes extremely difficult for most organizations to implement their strategic marketing plans. This is clear from the fact that many marketing literatures and journals have failed to address the difficulties in measuring marketing tactics in connection to productivity. Indeed, according to a number of researchers, this is a myth (okoh, 2009).

The researcher believes the topic is worthy of inquiry because of this. Hence, the study addresses issues that have not been covered by other studies and marketing literature in Nigeria, such as measuring marketing strategy in connection to productivity.

1.3  OBJECTIVE OF THE STUDY

This study’s main goal is to investigate how marketing methods affect productivity. Additional specific goals include:

i. Research the marketing tactics used by corporate firms in Nigeria.
ii. Identify the best marketing mix to deploy in achieving the organizational goal
iii. Determine the impact of marketing tactics on productivity.
iv. Determine the elements working against the marketing efforts.

1.4  RESEARCH QUESTIONS

This study was influenced by the following research question:

i. What kind of marketing techniques does First Bank employ?
ii. What is the best marketing mix that the first bank uses to achieve its organizational goals?
iii. How does First Bank’s marketing plan impact its productivity?
iv. Are the first bank’s marketing techniques under threat?

1.5  SIGNIFICANCE OF THE STUDY

By demonstrating the connection between marketing strategy and productivity, this study will add to the body of knowledge already available on the topic. As a result, it will serve as a useful reference for academics, the general public, and students.
The banking industry would also benefit from the study by strengthening their strategic planning, particularly when they make use of its findings. The study will also be used as a foundation for the central bank of Nigeria’s policy-making process in the domain of commercial bank marketing.
The study will serve as a springboard and a foundation for additional research, which will be helpful to students, the general public, and anybody who wants to do their own research.

1.6  SCOPE OF THE STUDY

The report includes an analysis of the first bank’s marketing tactics. In this regard, the researcher will look at the strategic marketing approach taken by the first bank as well as the best marketing mix applied to first bank’s achievement of organizational objectives. The study also outlines the elements endangering Nigerian banks’ marketing efforts. The research spans a ten-year period from 2002 to 2011.

1.7  DEFINITION OF TERMS

A company’s endeavour to reach its target markets is accomplished through its marketing strategy.

Productivity is the speed at which a company creates and sells its goods.

Price, promotion, product, and public relations make up the marketing mix.

Marketing is the practice of commercial operations that control the flow of products and services from the producer to the customer.

Price: A product’s price is its monetary value.

Public Limited Corporation, or PLC.

Something that can be made available to a market for consideration, acquisition, usage, or consumption in the hopes of satisfying a need or a want. It encompasses things, services, places where people are, organizations, and concepts.

Any action or advantage that one party can provide to another that is fundamentally intangible and does not lead to the ownership of any tangible property is referred to as a service. Its creation may or may not be connected to a tangible good.

Consumer value is the distinction between what a customer receives from owning and utilizing a product and what it costs to buy it.

The degree to which a product’s perceived performance meets a buyer’s expectations is known as customer satisfaction. The customer is unhappy if they don’t perceive performance from the product. If results are as expected or better, the buyer is satisfied or delighted.

Owner of a business that produces goods or services is a manufacturer.