Marketing Strategies and Their Effects in Sales Expansion in Organisation
CHAPTER ONEย
ย Objectives of the Study
To achieve the study purpose; the research addressed the following specific objectives:
- To establish the relationship between product development strategy and sales expansion at Tembo Steels Nigeria Limited.
- To evaluate the relationship between price strategy and sales expansion at Tembo Steels Nigeria Limited.
- To determine the relationship between place strategy and sales expansion at Tembo Steels Nigeria Limited.
- To examine the relationship between promotion strategy and sales expansion of Tembo Industries.
CHAPTER TWO
LITERATUREย REVIEW
Theoreticalย Foundation
This section examines the various theories that were used to inform the study on theย effectsย ofย marketingย strategiesย onย sales expansion.ย Theย studyย wasย guidedย byย theย followingย theories; marketingย mixย theoryย and theoryย of push and pull.
Marketingย Mixย Theory
According to Grรถnroos, (1994) the theory of Marketing Mix was coined by Borden. Theย theory is still used today to make important decisions that lead to the execution of aย marketing plan. The idea of a marketing mix theory is to organize all aspects of theย marketing plan around the habits, desires and psychology of the target market. Marketingย Mix Theory combines a number of components in order to strengthen and solidify aย productโs brand and to help sell the product or service. The components combined by thisย are products, price, promotion and place forming the Four Pโs. These four P’s are theย parameters that the marketing manager can control, subject to the internal and externalย constraints of the marketing environment. The goal is to make decisions that centers theย four P’s on the customers in the target market in order to create perceived value andย generateย aย positiveย response.
The marketing mix framework was particularly useful in the early days of the marketingย concept when physical products represented a larger portion of the economy (Grรถnroos,ย 1994). Today, with marketing more integrated into organizations and with a wider varietyย ofย productsย andย markets,ย someย authorsย haveย attemptedย toย extendย itsย usefulnessย byย proposingย aย fifthย P,ย suchย asย packaging,ย people,ย process,ย etc.ย Todayย however,ย theย marketing mix most commonly remains based on the 4 P’s. Despite its limitations andย perhaps because of its simplicity, the use of this framework remains strong and manyย marketingย textbooks haveย been organized aroundย it.
Pushย andย Pullย Theory
The Push and Pull theory of customer service are two theories, the “Push” theory and theย “Pull” theory. The theory of push pull has been most often applied to marketing processesย by businesses and organizations. Push or pull is defined by whether the customer or theย business initiates the activity. According to Zmud (1984) the theory of push and pull wasย developedย inย 1911ย byย Fredrickย Winslowย Taylorย inย hisย workย onย “Theย Principlesย ofย Scientificย Management.”ย Businessย tookย hisย ideasย toย heartย andย startedย focusingย onย becoming more efficient than their competition. This led to determining the needs of theย potential customer and pushing the solutions out to those customers. In today’s, marketย pushing solutions are sometimes seen by the customer as intrusive or overlooked by theย customer as the solution gets lost due to information overload. Many companies areย moving away from the push theory to a pull theory. That is, they are providing theย information and solutions in a generally accessible format and allowing the customer toย determineย what best suits their needs.
One of the base assumptions about pushing solutions (products, information, etc.) toย customers is that the business or organization can anticipate the needs of the customer inย advance of the need and prepare the solution ahead of time (Cooper & Kleinschmidt,ย 2015). Organizations that emphasize the push theories often do so to increase efficiency.ย They believe that if, for instance, they create the penultimate user manual that they willย coverย allย ofย theย questionsย theย customerย mightย haveย andย therebyย limitย theย amountย ofย contact the customer needs to make to the organization. As well, by using a push modelย the organization can limit those areas for which service is provided which again mightย provide efficiency in the training of support personnel. This model has become moreย difficult to implement as organizations are believe they may be sacrificing effectivenessย forย the efficiency.
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CHAPTER THREE
RESEARCHย METHODOLOGY
Researchย Design
Kothariย (2004)ย definesย researchย designย asย frameworkย thatย showsย howย problemsย underย investigation are solved. A descriptive survey is a design that involves establishing what isย happening as far as a particular variable is concerned.ย This research adopted a descriptiveย research survey to determine the effects of marketing strategies on sales expansion in an organization in Nigeria.ย As noted by Mugenda and Mugenda (2003), descriptiveย design is the precise measurement and reporting of theย characteristics of the phenomenaย under investigation and describes phenomena, situations and events. This is mainly becauseย the focus of the research is to gain an understanding and insight on the effects of marketingย strategiesย on sales expansionย in an organization.
Targetย Population
In this study the target population were business managers operating atย the Central Business District in Abuja.ย Toย comeย upย withย an appropriate study sample, the study utilized stratified sampling technique where business managers were classified into different business areas including food andย restaurants and other non-food item businesses. The rationale behind the selection of theย stratifiedย sampling wasย because the businessesย areย evenly distributedย acrossย the Centralย Business District and this ensured collection of unbiased data. This helped to enhance theย chancesย of participation amongย potential participants (Kothari, 2004).
CHAPTERย FIVE
SUMMARYย OFย FINDINGSย CONCLUSIONย ANDย RECOMMENDATIONS
Summaryย ofย theย Findings
The study findings show that considerable number of Businesses in Abuja County had adopted product development strategies, there existed a strong positive significant correlation between sales expansion of SMEs and product development strategies, SMEs offered a broad product and that SMEs are efficient in meeting customer wants. The findings are in support of the research by Doyle (2009) that the power of product development has helped SMEs to and while enduring competitive. The findings also conform to Njorogeโs (2015), argument that product innovation process provides the means for safeguarding and improving quality and for saving costs. The study further revealed that SMEs developed and test their products to confirm their adaptability and suitability to the target customers and that SMEs have products with a broad market appeal. The study also confirms with Otieno (2015) that SMEs should learn, adopt and reorient itself to the changing environment product innovation process.
Conclusion
Based on the study results, the study concludes that considerable number of Businesses in Abuja County had adopted product development strategies, adoption of product development strategies resulted to a positive significant effect on the sales expansion in an organization in Nigeria. Product development strategy helps SMEs achieve business goals, such as entering new markets, selling more to existing customers or winning business from competitors.
Recommendations
Based on the study analysis the study recommends that Businesses in Nigeria should continuallyย embraceย productย developmentย strategy asย thisย strategy providedย a frameworkย for creatingย newย products or improvingย theย performance,ย costย orย qualityย ofย existingย products.
The Businesses in Nigeria should continually adopt pricing strategies (market penetration pricing,ย premium pricing, price skimming and economy pricing) as these tactics were found to have aย positive impact on sales expansion. Although a successful pricing strategy can increaseย revenue and profitability, careful planning is also essential to minimize the risk of costlyย mistakesย related each specific strategy.
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