APPRAISAL OF MARKETING MIX APPLICATION IN RETAIL BUSINESSES
APPRAISAL OF MARKETING MIX APPLICATION IN RETAIL BUSINESSES
This research will examine whether and to what degree theoretical marketing principles are utilised in the retail business. In order to conduct an effective and efficient appraisal of marketing mix application in the retail industry that would be representative of the entire retail business in Auchi town, certain selected retail businesses were utilised as case studies, and questionnaires were distributed.
The data collection methods used were primary and secondary sources of information. My greatest limitation in my attempt was the scarcity of research-based evidence and certain inaccessible publications; yet, this and other challenges motivated me, and I tried to make the best of an otherwise awful situation.
The work is broken into five chapters. The first chapter focuses on the study's background, description of research problems, objective of the investigation, research questions, research hypothesis, significance of the study, scope of the study, study limitations, and operational definitions of words.
Chapter two (2) expands on the literature review by examining an overview of marketing and marketing mix elements, retailing as a marketing function, the nature and importance of retailing, marketing mix application in retail business, retail price and pricing strategy, promotional mix, distribution as a marketing mix element,
and an evaluation of the marketing concept in retail businesses. Chapter three (3) discussed research methodology, including research design, study population, sampling procedure, data collection methods, data analysis, instrument validation, cut-off point, and decision rule.
Chapter four (4) discussed questionnaires, which were structured and administered to respondents, their responses were analysed, and hypotheses were tested. Chapter five (5) discussed the summary of findings, conclusion, and recommendations.
To summarise, the marketing mix element should be viewed as a true market instrument for attaining an organization's long-term goals and objectives, rather than a marketing tool for activities.
1.1 Background of the Study
Since the business world is getting increasingly competitive, organisations aim to outperform one other using various marketing techniques in order to gain a competitive advantage in the market.
Managers at various corporate organisational levels use controllable factors at their disposal to achieve their business goals. We refer to these characteristics as marketing mix elements.
According to Agbonifoh, Ogwo, Nnolim, and Nkamnebe (2007), marketing Mix is the combination of product, price, promotion, and distribution used by a marketer or company to address a target market over a particular time period. A target market is the group of current and future customers to whom a corporation markets its products.
When designing the proper marketing mix to reach a target market, the target marketing is evaluated in terms of customer acceptance and long-term societal impact. Physical product decision, product qualities, and distinction are three logistical elements that influence product decisions.
Physical product features in terms of storage include the weight-to-value relationship and the risk associated with purchasing the product. Pricing interacts with logistics in a variety of ways, including the transfer of product title and transfer obligations, which are governed by the specific local pricing system utilised.
A retailer views price as the amount for which he or she wishes to sell his or her product in order to profit, but a buyer or consumer often sees price as the cost of acquiring and owning a product or service, including the time required to shop and compare brands.
Promotion intersects with logistics in areas like as advertising, sales promotion, and personal selling, among others. Advertising promotional campaigns must be planned; the focus here will be on the promotional process and the communication elements that underpin it.
Based on the foregoing, a check on the effectiveness of the marketing mix element in retail business, which, if correctly and regularly appraised, can provide improved customer happiness and hence boost retail business profits.
1.2 Statement of Research Problems.
In recent years, many retailers have seen reduced customer traffic, which has resulted in a decline in profitability. Customers who visit these many stores frequently complain about the price of their product (exorbitant prices), the poor product quality stocked, the inability to obtain the product when needed, or a lack of awareness of the product's availability.
Given the number of consumer complaints and the retailer's slow reaction. A study of this sort to determine how to remedy this problem appears to have become necessary.
So the study's challenge, expressed in question form, is: How can merchants improve their services by implementing the marketing mix?
1.3 The purpose of the study
This research will be directed by the following aims.
(i) To determine whether high prices are the reason for low sales in retail stores.
(ii) Determine whether lack of promotion is accountable for poor patronage.
(iii) Determine the distribution method that will best serve the needs of customers while also meeting the objectives of retail outlets.
(iv) To tell the retailers about the combination of variables that make up the marketing mix.
1.4 RESEARCH QUESTION.
In a nutshell, the research study focuses on the following pertinent question.
(i) Do high prices lead to low sales in the retail industry?
(ii) Do retail outlets do promotional activities?
(iii)Is the retail business's distribution channel effective in meeting the needs of its customers?
(iv) Are retailers aware of the combination of marketing mix variables?
1.5 Research hypothesis
To achieve the study's purpose, the following hypotheses are proposed. They are:
Ho: High product prices are not the cause of low sales.
Hi: Low sales are due to high product prices.
Ho: A lack of promotional activity does not account for poor patronage.
Hi: Low patronage can be attributed to a lack of promotional activity.
1.6 Significance of the Study
This research will be beneficial to individuals or groups involved in retail businesses since it will provide them with information that will help them better their operations.
Furthermore, this project work would act as a resource for any future researchers who may consult it in order to get knowledge about the marketing mix as it applies to retail outlets.
Most importantly, the study will be a valuable resource for potential retailers who consult it, as the project work focuses heavily on the relationship that exists between the theoretical marketing mix variables and retail firms in Auchi town.
Potential merchants would be better positioned to effectively blend the many factors of the marketing mix so that they meet the needs and goals of higher customer happiness while also meeting the retail business's profit standing.
1.7 Scope of the Study
This research aims to evaluate the use of marketing mix in the retail industry. Given that retail businesses in Auchi town have been chosen as a case study, the researcher will distribute structured questionnaires to managers and employees of some selected retail outlets in order to collect information (data) on their product line, stock control,
price and pricing, distribution, and promotion. Based on the findings, the information gathered will be examined to determine whether the marketing mix variables are being applied successfully and efficiently.
1.8 Operational Definition of Terms
It is important to understand some marketing jargons that are used in this research activity, which are stated below.
a. Retailer: A retailer is a merchant, a person, or occasionally an agent whose primary business is selling directly to the end user. He acts as an intermediate between the wholesaler or producer and the end consumer.
b. Appraisal: The act of estimating or determining the nature or value of something. It is an estimate or considered opinion about nature, quality, importance, etc.
c. Marketing mix: This is a set of controllable variables such as product, price, promotion, and place that a marketer uses to meet the requirements and wants of customers while also meeting company objectives.
d. Price: This is what the buyer pays and what the seller receives in exchange for a product. The price of an item is either the monetary value for which the seller is willing to swap the product or the buyer's perception of the thing's value.
e. Product: This is described as anything that may be supplied for market notice, acquisition, and consumption while also satisfying consumers' demands or needs at a profit. It is the benefit obtained as a result of marketing a physical entity or service.
f. Promotion: Agbonifoh, 2007. Define promotion as any type of communication that aims to influence and facilitate exchange. This is also known as marketing communication, and it includes personal selling, sales promotion, advertising, publicity, and direct marketing.
a. Place: Also known as distribution or channel of distribution, it refers to the transfer of title to products and the movement of items from the point of production to the point of consumption.
1.9 Limitations of the Study
This project is confined to retail businesses in Auchi town. The goal is to provide the researcher adequate time to conduct an in-depth examination of the subject matter,
which is an appraisal of marketing mix aspects in retail organisations. Some of the significant limitations that the research encountered while carrying out this work are as follows:
1. Time Constraint: This aspect hampered the successful completion of this project by interfering with other activities such as assignments, tests, and exam preparation.
2. Financial Constraint: The researcher struggles to complete the project on time due to insufficient financial resources to cover the logistics of travel (transport) and internet searches for published materials.
3. Respondent Attitude: The respondents' attitude towards the questionnaire constituted a severe challenge in terms of the amount of information acquired from the field survey.
4. Insufficient research materials: Obtaining related materials such as textbooks, journals, and other publications from the library and other sources proved challenging.