EFFECT OF EXTENSIVE DISTRIBUTION STRATEGY CHOICE OF CONVENIENCE PRODUCT (A CASE OF CONSUMER IN ADO EKITI)

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPETR ONE

1.0   INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Research questions

1.4        Objective of the study

1.5        Significance of the study

1.6        Scope of the study

1.7       Definition of terms

CHAPTER TWO

LITERATURE REVIEW

2.1 introduction

2.2 conceptual review

2.3 empirical review

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

 Abstract

Effective and extensive product distribution plays a key role within the marketing mix, and the key to success is its successful integration within the mix, ensuring that customers get their required products at the right place and at the right time. Suggests that the construct of convenience has not been clearly defined and operationalized. Proposes a conceptual framework which can be used to examine the convenience of consumer products, involving five dimensions: time, place, acquisition, use and execution convenient product does not always have a competitive demand.  If the product cannot reach its chosen destination at the appropriate time, then it can erode competitive advantage and customer retention. The purpose of this study is to explore the best distribution strategy and other factors that help the organization meet customer expectations in respect of delivery and service promises.

CHAPTER ONE

INTRODUCTION

Background of the study

For any organization to be effective there should be effective distribution management process to convey finished products from the manufacturer to the final consumers. This is because without distribution the best product will not be delivered and the marketing mix will break down and fail. As a result of this, firms are increasingly adopting supply chain management to reduce cost, increase market share and sales, and build solid customer relations (Ferguson 2000). Supply chain management can be viewed as a philosophy based on the belief that each firm in the supply chain directly and indirectly affects the performance of all the other supply chain members, as well as ultimately, overall supply chain performance (Cooper et al, 2017).

The aim of marketing as a set of individual and organizational activities is to ensure that consumer wants, needs and preferences are appropriately and properly satisfied in order to ensure customer/consumer satisfaction and at the same time achieve the goals of the individual or organization. Marketing ensures that goods and services are not only produced, but also ensure that these goods are made available to the consumers at the right time, place and in the right quality.

The goal of marketing is achieved through the marketing mix elements – Product, Price, Promotion, and Place (distribution). Marketing ensures that these marketing mix elements combined in the right proportion, at the right time, and in the right sequence in order to meet the requirement of the target market.  Distribution which is one of the marketing mix elements is the subject of this study. The major aim of distribution is to ensure that goods and services move from the points of production to the points of consumption. This involves not only the physical movement and handling of products, but also the transfer of title as well. It is important to point out that distribution is a broad concept.

Agbonifor et al (2018), defined distribution as ”the flow of title to goods and the movement of those goods from point of production to the point of consumption.” Kotler (2008) defined distribution as “involving tasks of planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirement at a profit.” He stated further that distribution as a resource in marketing is used to make the product available at the right place and in the amount that the target group wants it.  Without distribution systems, organizations would expend more of their funds or trying to build their own infrastructure for reaching customers.

It is necessary to mention that distribution is made of two broad aspects namely; channel of distribution often referred to as marketing channel or trade channel, and physical distribution (logistics). A definition of physical distribution is same as earlier stated according to Kotler. Channel of distribution refers to the pathway or course taken in the transfer of title to a product as well as the individuals and institutions that participate in the distribution of goods from points of production to the point of consumption.

Firms adopt different distribution strategies in the marketing of their products. They may use exclusive, intensive, or selective strategy. It should be noted that the strategy selected depends on the firm and the nature of its products.  In the past, physical distribution typically started with products at the plant and then tried to find low-cost solutions to get them to the customers. However, today’s marketers prefer customer-centered logistics thinking, which starts with the market place and works backward to the factory, or even to source of supply. Therefore, as the world market is becoming more and more competitive, a firm that wants to be successful must carefully plan its distribution policy to ensure that goods not only are available, but are able to set to the right customers at the right time and place, and at the right quantity and quality.

• STATEMENT OF THE PROBLEM

Consumer benefits, not firm profits, are at the heart of competition law.  Some economists might argue that the willingness of a product supplier to bear the cost of higher retail prices in exchange for greater investment in product image through selective distribution signals that the tradeoff is necessarily in the consumers’ interest as well.  That notwithstanding, many organizations do not have a well-structured distribution policy that could help in the effective distribution of their products, Companies on the other hand  especially small scale businesses fail to associate effective distribution program with the successful marketing resource of their products.  Also, many organizations face the problem of selecting the right distribution strategy for their products.  It is in view of this that the research becomes pertinent to investigate the effect of extensive distribution strategy choice on convenient product.

• OBJECTIVE OF THE STUDY

The study has one main objective which is subdivided into general and specific objective; the general objective is to examine the effect of extensive distribution strategy choice of convenience in Ado Ekiti; the specific objectives are:

1. To examine the effect of ill-structured distribution policy on effective distribution of convenience goods.
2. To examine the impact of effective distribution policy on the success of a marketing program

• To ascertain if there is any significant relationship between extensive distribution strategy and consumers patronage of convenience product

1. To proffer suggested solution to the identified problem
   • RESEARCH QUESTIONS

The following research questions were formulated by the researcher to aid the completion of the study;

1. Does ill-structured distribution policy has any effect on the effective distribution of convenience goods?
2. Does effective distribution policy has any impact on the success of a marketing program?

• Is there any significant relationship between extensive distribution strategy and consumers patronage of convenience product?
  • RESEARCH HYPOTHESES

The following research hypotheses were formulated by the researcher to aid the completion of the study;

H₀: There is no significant relationship between extensive distribution strategy and consumers patronage of convenience product

H₁: There is a significant relationship between extensive distribution strategy and consumers patronage of convenience product

H₀: Effective distribution policy does not have any impact on the success of a marketing program

H₂: Effective distribution policy does have an impact on the success of a marketing program

SIGNIFICANCE OF THE STUDY

The major significant of this research work is to the researcher. This is because the research work: is required in partial fulfillment of the requirement for the award of the Bachelor of Science (Bsc) in Marketing.

The research work is also of great significance to the case study as a source of eliciting information for the best combination of the promotional mix strategies. Also, the research work is of great significance to the distributing sub – sector or firms in order to realize the importance of effective distribution policy and strategies in the present complex and dynamic business world.  This is the ideology behind the slogan, “Production is not completed until the goods get to the final consumers”. The research work will also reveal to the firms and organizations involved in distribution, variables that can help to improve effective distribution.  Lastly, the research work will ultimately criticize the past work of different scholars in order to validate their assertions on the subject matter. Findings shall determine if such assertions shall be accepted or refuted.

• SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers the effect of extensive distribution strategy on the choice of convenient product; but in the course of the study, there are other factors that limit the scope of the study;

 

AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study

TIME: The time frame allocated to the study does not enhance wider coverage as the researcher have to combine other academic activities and examinations with the study.

FINANCE: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.

 1.8 OPERATIONAL DEFINITION OF TERMS

MARKETING: This consists of individual and organizational activities designed to identify and satisfy consumer needs, wants and preferences and to facilitate and expedite exchange.

 

MARKETING MIX: Kotler (2008) “is a set of controllable tactical marketing tools – product, Price, place, and Promotion – that the firm blends to produce the responses it want in the target market.

PRODUCT: Anything that can be offered to a market for attention, acquisition or consumption in order to satisfy a want or need.

DISTRIBUTION: This refers to the flow of title to goods and the movement those goods from point of production to point of consumption.

PHYSICAL DISTRIBUTION: This is the flow of materials, final goods and related information from the point of origin to the point of consumption to meet customer needs at a profit.

CHANNEL OF DISTRIBUTION: This is the pathway or course taken in the transfer of title to a product as well as the individuals and institutions that participate in the distribution of goods from points of production to the point of consumption.

CONSUMER GOODS: These are goods purchased for personal or household use.

 CONVENIENCE PRODUCT

A convenience product is a consumer product or service that customers normally buy frequently, immediately and without great comparison or buying effort.

 

1.9 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

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