IMPACT OF EFFECTIVE DISTRIBUTION MANAGEMENT IN MARKETING COMPANY

CHAPTER ONE

INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

2.0   LITERATURE 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

This study was critically designed to examine the impact of effective distribution management in a marketing company ( A case study of Conoil and Chemical Marketing Company). The project aims to provide managers with a sound knowledge of effective distribution, the distribution channels, methods of distribution, types of middlemen etc. Over the years, most petroleum and chemical marketers pay more attention on how best they can manipulate and make abnormal profit from petroleum and chemical business without considering how effective the distribution of the product, and how it can affect the overall well being of the nation’s economy.

 

 

 

 

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

• Background of the study

The executives have devoted the bulk of their time to the stimulation function because of the increased competition in the market. Their attention has been given over to developing a cause of product, price, promotion and channel that would keep demand high and growing. More recently, several development have awakened management interest in the logistic problem which enabled them to wonder whether they were not over looking many opportunities and not only for cost saving but also for improved demand stimulation.  Globalization makes the world a smaller place (Arnold 2010, 770). Being involved in international trade, firms have to deal with a number of activities and decisions, which vary in both complexity and scope, such as intricacy and fickleness of foreign market environment, cultural differences, transportation challenges, etc. (Doole & Lowe 2012, 1). For many years companies have been giving the least attention to the issues related to distribution. Nowadays, they start realizing that the efficient distribution strategy formulation is vital to the success and survival of any organization, especially if it is involved in international trade. (Cateora & Graham 2007.) Today’s world is challenging due to rapidly changing market conditions. Therefore, in order to be able to compete, satisfy customers, and meet the needs of other stakeholders profitably, it is crucial for any company to make profound market environment analyses, and react to changes in the market accordingly, otherwise they will significantly affect the company’s performance. Owing to deregulation, new technology and changing consumer behavior, the competition in the banking sector is getting more fierce. In the banking sector the intensified competition has recently resulted in a number of banks launching non-bank financial services through their branches as well as insurance companies and other financial companies opening banks. The battle for the customers is, however, also fought through new electronic distribution channels. Greenland (2004) predicted that in the foreseeable future the branch network will remain the main channel for retail banks. However, despite these predictions, the electronic distribution channels available for financial service companies world-wide force the banks to make a number of strategic distribution channel decisions. According to economic distribution channel theory, the “ideal” distribution system or the normative distribution channel can be determined by exploring what the consumers want in terms of service outputs from the distribution channel, how much they are willing to pay for a given service level, how the services can be provided to them, and what the costs of the alternative distribution channels are (Stern et al., 2006). As a result they argue that it can be determined which distribution system most efficiently meets the customers‟ wants and it can be pointed out that the distribution channel strategy adopted by a firm should take a customer perspective and analyse the output from the commercial part of the different distribution channels and relates it to the customers‟ costs and benefits from the different levels of service output offered by the available distribution channels (Cohen et al., 2003). They have viewed physical distribution on the logistics of getting goods to the buyers as a supportive and subsidiary attractive. One of the factors is the steady champs in the bills for such physical distribution services such as right, ware housing and inventory freight and ware housing bills are rising as a result of increased labour, because buyers are tending to place smaller over more frequently and manufacturers are tending to expand the width and depth of their lines.

Furthermore, physical distribution is potent instrument in the demand stimulation process; companies can gain by offering more in the way of services or physical distribution cost. Any company in the world desires to achieve its business objectives; broadly speaking, they are to maximize sales volumes and profits, increase productivity, enhance customer satisfaction, and etc. In order to achieve these goals, a company has to take into account a lot of aspects of such topics as product development, price setting, organization of distribution, and promotion activities selection. (Ferrell & Hartline 2011; Kotler et al. 2012.) As product, price, place or distribution, and promotion – the components of international marketing strategy – are interrelated, decisions on distribution cannot be made without taking into consideration the other components. Additionally, operating in international environment, a company has to consider numerous forces that may have impact on its performance. (Ferrell & Hartline 2011.) Therefore, the purpose of this chapter is to define distribution strategy, identify its importance and position within international marketing strategy, present factors that affect company’s performance, and establish the role of target audience identification.  The capacity to innovate is recognised today as one major way to gain competitive advantage in the marketing of products and services in particular and corporate world in general. An innovative firm would readily lend its support to new ideas, novelty, experimentation and the creative processes that may result in new products, services or technological processes (Fulmer, Gerhart and Scott, 2003). One traditional means of achieving competitive advantage is to create new products but can be easily copied. Low-cost of products as a competitive advantage also suffers from sustainability while the brand name as competitive advantage is possible only if there is a strong brand. Marketers are turning more and more to channels as a competitive advantage e.g. Dell Computer (Rhodes, Hung, Lok, Ya-Hui Lien and Wu, 2008). This maximises control over service level/output, enhances product‘s image and engenders higher markups, promotes dealers loyalty, better forecast, better inventory and merchandising control and restricts resellers from carrying competing brands. The rules of competition in the World today have made it even more important for firms to innovate or liquidate. Globally, many firms have been found not to be adequately innovative and there is a wide gap between firms in sub-Saharan Africa and their counterparts elsewhere. Within the context of developing countries, innovation is best thought of as a process of adopting existing indigenous technologies. To do this, firms need to develop the capability to manage technological change. Oyelaran–Oyeyinka, B; .Laditan,G.O.A; and Esubiyi A.O (1996) found out in their study of 50 Nigerian firms that innovation is mostly adaptive and incremental in nature within the Nigerian industrial sector. Because of constraints that are peculiar to developing countries (such as poor infrastructure and weak innovative systems), the results of innovation studies carried out in developed nations may not be of much use in Nigeria. Nigeria is presently witnessing an emerging entrepreneurial development in various sectors of the economy. This trend is championed by the presence of multinational corporations (MNCs), which are responsible for independent/sole venture capital development, joint venture collaboration and complex intra and inter-industry relationship. The MNCs use this strategy to develop comparative upper reach in industrial structure, over and above their domestic counterparts (Kuratko & Hodgetes, 2004). A broad categorisation of innovation is difficult to achieve, because innovation normally covers a considerable range and combination of products/markets and technological innovation, as in the case of sophisticated, technologically innovative products designed to meet demand in a specific market.  Many executive are of the opinion that the total cost of storing, moving and handling their products are anywhere between 15 and 30 percent of sales

 1.2 STATEMENT OF PROBLEMS

The effective planning of distribution networks tends to reflect the means by which company’s product are moved from the manufacturers to the final consumers. The reasons for effective distribution are of great economy significant in marketing of goods and services, because of the expenses involved. It goes a long way in determine not only the price of goods but also the success of any market activities. Therefore, many market failure can be traced to the inability of distribute the product effectively, that is logistic problem in which the goods and services will be distributed to the buyers, through which channels of distribution which this goods will be distributed to the place of users. Lack of support facilities or lack  of storing of goods. The facilities need for smooth hand undisturbed operation of distribution are not available i.e ware housing and irregular supply of goods that is inventory control problem. Problem of social and political manner i.e the operational routes, fares through which the goods are been carried. The problem of channels members are too many that caused increased in price of product. More so, problem of distribution management is very poor. Customers are also objected to dictates of distributors since goods are very few. The distribution either adopt other means of exploiting hoard goods to initiate prices, which are of important on distribution and too few to make any meaningful impact.

• OBJECTIVE OF THE STUDY

The main objective of the study is to investigate the impact of effective distribution management in marketing company. but to aid the successful completion of the study, the researcher intends to achieve the following specific objectives

1. To investigate the impact of distribution management on sales volume
2. To ascertain the benefit of effective management of distribution channel on the profitability of the organization

• To examine the relationship between distribution management and sales volume

1. To examine the role of the management in on the effectiveness of marketing company
   • RESEARCH HYPOTHESES

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

H₀: distribution management does not have any significant impact on sales volume

H₁: distribution management does have a significant impact on sales volume

H₀²: there is no significant relationship between distribution management and sales volume

H₂: there is a significant relationship between distribution management and sales volume

• SIGNIFICANCE OF THE STUDY

The research work is very significant because of it contributes to the field of knowledge, in finding ways of improving the physical distribution policies of Nigerian company. Additionally, the research work would appraise the significant role of physical distribution policies of the Nigerian Companies as to know whether it has been adequate to the company’s most target audience. The findings and recommendations of this research work, if adopted by Nigerian companies in her physical distribution policies will reduce some costs and enhance her distribution activities above her competition. Management of Companies in Nigeria, in particular can adopt these findings as a guide in formulating their physical distribution polices for their companies. Academically, further research could be carried out to widen the intellectual horizon of people, and also, improve the physical distribution policies.

• SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers the impact of effective distribution management in marketing company in Nigeria. In the course of the study, there were some factors which militate against the scope of the study;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study.
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities        and examinations with the study.
3. c) 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.

1.7 OPERATIONAL DEFINITION OF TERMS

Marketing

Marketing is the study and management of exchange relationships. Marketing is used to create, keep and satisfy the customer

Distribution channel

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer

Distribution management

Distribution management is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain and logistics

Marketing company

The Marketing Company is a brand-marketing firm whose approach is more like that of a fully-integrated marketing department. This means not only creating and developing marketing messages to be distributed among all selected media and managing those messages, but also making sure that the messages and promises can be delivered

1.8 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 is 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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