AN APPRAISAL OF MARKETING MIX APPLICATION IN RETAIL BUSINESSES

ABSTRACT

This study is on an appraisal of marketing mix application in retail businesses. The total population for the study is 200 staffs of selected retails outlet in Auchi town. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, sale representatives, secretaries and junior staffs was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

 CHAPTER ONE

INTRODUCTION

• Background of the study

Since the business world is becoming increasingly competitive and businesses try to outdo the others with different marketing strategies in order to gain a competitive stand in the market. Managers at different business organizational level are using some controllable variables at their disposal to achieve their business objective. These variables are what we call the marketing mix elements.

According to Agbonifoh, Ogwo, Nnolim and Nkamnebe (2007) they define marketing Mix as that combination of product, Price, promotion and distribution utilized by a marketer or company to address a target market during a given period. A target market is the group of present and potential customers that the company aims its product at.

In developing the appropriate marketing mix to reach a target market, the target marketing is evaluated as a function of its acceptability to the customer and its ultimate effect on the society. Some of the logistical factors affecting product decisions are physical product decision, product characteristics and differentiation. Physical product characteristics as regards storage of the product include the weight value relationship and the risk associated with buying of product. Pricing interacts with logistics in several areas being terms of transfer of the product title and responsibilities of transfer are determined by the specific geographical pricing system used. A retailer regards price as the amount for which he or she wants to sell his product in order to make profit, while a buyer or consumer on the other hand often view price differently as the cost of acquiring and owning a product or service, including the time required to shop and compare brands.

Promotion interacts with logistics in the area of advertising, sales promotion and personal selling e.t.c. Advertising promotional campaigns must be planned, the focus here will require an exploration of promotional process and element of communication on which it is based.

From the foregoing, a check on the performance of the marketing mix element in retail business and if effectively and continuously appraised, it can yield better customer satisfaction and thus increase the profit of retail business.

• STATEMENT OF THE PROBLEM

Many retailers in recent years have been experiencing low patronage from customers, which has in most cases led to decrease in profitability of such business. A common trend among customers who patronise these various outlets is that they either complain of price of their product (exorbitant prices) or poor product quality stocked, inability to get the product when needed to lack of awareness of the existence of the product. Looking at these complaints from customers, and low response on the part of the retailer. A study of this nature to find out how this problem can be solved became apparently imperative. So the problem of the study put in question form is; how can retailers improve on their services by applying the marketing mix?

• OBJECTIVE OF THE STUDY

This research work will be guided by the following objectives

(i)    To know whether high price is responsible for low sales in retail outlets

(ii)       To know whether lack of promotion is responsible for low patronage

(iii)     To know the distribution channel to be used that will suit the need of the customers and meet the objectives of retail outlets.

(iv)  To inform the retailers the blend of variable that makes up the marketing mix

• RESEARCH HYPOTHESES

The following hypotheses are drawn to meet the objective of the study. They are;

Ho:   High prices of product are not responsible for low sales.

Hi:    High prices of product are responsible for low sales.

Ho:   Lack of promotional activities is not responsible for low patronage.

Hi:    Lack of promotional activities is responsible for low patronage.

• SIGNIFICANCE OF THE STUDY

This research work will be important to those individual or group that are engage in retail businesses, as it will furnish them with information that will improve their businesses.

In addition, this project work would serve as an information source to any subsequent researcher that may consult it, in an attempt to equip his or herself with formation on the marketing mix as it relates to retail outlets.