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Utilization of Direct Marketing Channels by Manufacturing Companies in Anambra State, Nigeria

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Utilization of Direct Marketing Channels by Manufacturing Companies in Anambra State, Nigeria.

ABSTRACT

The purpose of the study was to determine the extent of utilization of direct marketing channels by manufacturing companies in Anambra State. The study adopted a descriptive survey design. Seven specific purposes were developed in line with the major purpose of the study.

The study answered seven research questions and tested seven hypotheses at a 0.05 level of significance. The population of the study consisted of 341 managers.

This was made up of 108 marketing managers, 99 advertising managers and 134 sales managers in the 140 registered manufacturing companies in Anambra State.

There was no sampling as the entire population was studied. The choice of these managers was informed by the fact that they are directly involved in the utilization of direct marketing channels in their companies.

The questionnaire was structured on a 5- point rating scale and was validated by three experts from the Department of Vocational Teacher Education, University of Nigeria, Nsukka.

Their observations and suggestions were used to improve the quality of the final draft of the instrument used for the study. Cronbach Alpha reliability coefficient of 0.92 was obtained for the entire items in the instrument.

The 7 clusters had Cronbach alpha coefficients of 0.89, 0.87, 0.91, 0.95, 0.96, 0.87 and 0.89 respectively. A total of 332 copies of the 341 questionnaires administered were retrieved representing about 97% retrieval.

The data collected were analysed using mean and standard deviation for answering the seven research questions while t-test statistic and analysis of variance (ANOVA) were used in testing the seven null hypotheses at 0.05 level of significance and 330 degrees of freedom (df) for the t-test statistics.

The major findings of the study were (1) personal selling was utilized to a great extent in serving customers (2) direct-mail, telemarketing, catalogues, direct response marketing, customer database marketing and websites were utilized only to a little extent.

It was concluded that direct marketing channels were poorly utilized. Based on the findings and conclusions, it was recommended that manufacturing companies need to adopt direct marketing techniques as this has been found to promote profits and assure maximum returns on investment.

TABLE OF CONTENTS

Title Page i
Approval Page ii
Certification iii
Dedication iv
Acknowledgements v
Table of Content vi
List of Tables ix
Abstract xi

CHAPTER ONE: INTRODUCTION 1

Background of Study 1
Statement of the Problem 8
Purpose of Study 10
Significance of Study 11
Research Questions 11
Hypotheses 12
Delimitation of Study 13

CHAPTER TWO: REVIEW OF RELATED LITERATURE 14

1. Conceptual Framework 15
· Manufacturing Companies and the Utilisation of Personal
Selling in Anambra State 22
· Manufacturing Companies and the Utilization of Direct-mail
in Anambra State 29
· Manufacturing Companies and the Utilization of Telemarketing
Channel in Anambra State 35
· Utilisation of Catalogues by Manufacturing Companies
to Reach Customers in Anambra State 40
· Utilisation of Direct-Response Marketing by Manufacturing
Companies to Collect Information from Customers in
Anambra State 44
· The Use of Customer-Database by Manufacturing
Companies to Individualise Market Offerings 48
· The Use of Websites by Manufacturing Companies in
Serving Customers 53
2. Theoretical Framework 61
3. Related Empirical Studies 66
4. Summary of Related Literature. 69

CHAPTER THREE: METHODOLOGY 72

Design of Study 72
Area of Study 72
The population of Study 73
Sample for the Study 73
An instrument for Data Collection 73
Validation of Instrument 75
Reliability of the Instrument 75
Method of Data Collection 76
Method of Data Analysis 76

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 78

Testing of Hypotheses 89
Major Findings of Study 95
Discussion of Major Findings 98
Discussion of Findings on Hypotheses 103

CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS 107

Restatement of the Problem 107
Summary of Findings 110
Conclusions 112
Implications for Marketing Education 113
Recommendations 113
Suggestions for Further Research 114
References 115

INTRODUCTION

1.1 Background of the Study

Manufacturing companies are companies that produce goods that are used or needed by consumers or other producers.

Thus, according to the United States Department of Commerce (USDC, 2006), manufacturing is the process of making or producing goods for individual or business use.

Succinctly, Randolf (2007) defines manufacturing as the process or business of producing goods in factories. Manufacturing involves converting materials into a form that can satisfy human needs or desires.

According to Anyanwu (2004), a manufacturing company is involved in the transformation or changing of the basic materials extracted by primary producers into forms acceptable to final consumers.

Anyanwu’s examples of manufactured goods include television, cars, clothes, aeroplanes, soaps, electronic gadgets, processed foods, steel bans etc.

Manufacturing companies in Anambra State include companies that produce industrial goods and those that produce consumer goods for sale.

Industrial goods are goods purchased by business buyers (producers) for purposes of production. Consumer goods are goods purchased by end-users (consumers) for purposes of consumption. Some companies are located in urban towns while others are in rural areas.

REFERENCES

Abdulrahman (2009). Internet: Two sides of a revolution. Newswatch, July 20, 62.
Adams, S; Mulye, R. & Deans, R. (2002). Marketing in perspective: A three country comparison of business use of the Internet. Marketing Intelligence and Planning 20(4) 243-51.
Ajiborah, I.F. (2003). Introduction of a new product in the market using IMC approach. A case study of aloe vera product. Unpublished B.Sc Thesis, University of Nigeria, Enugu Campus.
American Direct Marketing Association (2008). Direct marketing flow chart, direct marketing (May). American Marketing Association (2004). Journal of Marketing Management, 1 (16).
American Marketing Association (1990). Core of marketing, Marketing Week, January.
Anderson, R.E. (1996). Personal selling and sales management in the new millennium

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