CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Marketing is a fundamental function within any organization that plays a pivotal role in its

success and growth. The effectiveness of a company's marketing strategy is often closely linked

to its overall productivity and performance. This study delves into the intricate relationship

between marketing strategy and organizational productivity, seeking to elucidate how various

marketing strategies impact a firm's ability to achieve its goals and objectives.

Marketing strategy, as defined by Kotler and Keller (2016), refers to a company's plan of action

for promoting its products or services and achieving its marketing objectives. It encompasses

decisions related to target markets, product positioning, pricing, distribution channels, and

promotional activities. The formulation and execution of a well-defined marketing strategy are

essential for an organization's survival and competitiveness in today's dynamic business

environment.

Organizational productivity, on the other hand, is a multifaceted concept. It encompasses various

aspects of an organization's performance, such as efficiency, effectiveness, and profitability.

Mankins and Steele (2006) underline the importance of productivity in organizations,

highlighting that it is not merely about doing more with less but also about doing the right things

to generate sustainable growth and value.

The interaction between marketing strategy and organizational productivity is complex and

multidimensional. Numerous studies have explored the relationship between these two variables,
but there is still a need for a comprehensive understanding of how different marketing strategies,

such as digital marketing, content marketing, or traditional advertising, influence productivity

outcomes.

In today's rapidly changing business landscape, organizations face unprecedented challenges and

opportunities. The emergence of digital technologies and the Internet have transformed the way

companies market their products and interact with customers. As a result, understanding the

effect of contemporary marketing strategies on organizational productivity is critical for firms

striving to remain competitive. Several scholars have attempted to shed light on this relationship.

For example, Luo and Bhattacharya (2006) explored the impact of marketing strategy on

financial performance, emphasizing the role of customer-focused strategies in driving

profitability. Similarly, Morgan and Rego (2006) investigated the influence of marketing

capabilities on firm performance, highlighting the importance of marketing competence in

achieving superior organizational outcomes. While existing research has made significant

contributions, there remains a gap in the literature concerning the effect of specific marketing

strategies, such as social media marketing or influencer marketing, on organizational

productivity. As organizations allocate substantial resources to these marketing activities, it is

essential to assess their impact on productivity metrics, including revenue growth, market share,

and customer satisfaction.

1.2 Statement of Problem

The intersection of marketing strategy and organizational productivity presents a significant area

of concern and inquiry for both academics and practitioners. While previous research has

illuminated the broader relationship between marketing and performance, there is a distinct lack
of comprehensive investigation into how specific marketing strategies impact organizational

productivity. This knowledge gap gives rise to the following key problems that necessitate

exploration on lack of clarity on strategy-productivity linkage, evolving landscape of marketing:

resource allocation dilemmas, competitive pressures, measurement and evaluation challenges.

1.3 Objective of the Study

The central objective of this study is to examine the impact of marketing strategies on

productivity other specific objectives are:

Objectives

(i) To determine the impact of customer service strategy on productivity

(ii) To determine the role of advertising on productivity

(iii) To determine the effectiveness of quality improvement on productivity

1.4 Research Questions

I. What are the various marketing strategy used in Nigerian Brewery Plc, Ibadan?

II. What is the marketing mix used in getting organizational goals in Nigerian Brewery Plc,

Ibadan?

III. What is the effect of marketing strategy on productivity in Nigerian Brewery Plc, Ibadan?

1.5 Research Hypothesis

H1: Customer service strategy has a significant impact on productivity

H2: Advertising plays a significant role in improving productivity.

1.6 Scope of the Study

The study would use a mixed-methods approach, combining quantitative and qualitative data

collection methods. Quantitative data would be collected through a survey of Nigerian Brewery

Plc Ibadan employees and customers. Qualitative data would be collected through interviews

with key stakeholders at Nigerian Brewery Plc Ibadan. The quantitative data would be analyzed

using statistical software to identify trends and relationships between the variables. The

qualitative data would be analyzed using thematic analysis to identify key themes and patterns.

1.7 Justification of the Study

The study would examine the different marketing strategies that Nigerian Brewery Plc Ibadan

uses to promote its products and services. These strategies could include product development,

pricing, promotion, and distribution and also would assess the impact of Nigerian Brewery Plc

Ibadan's marketing strategies on its productivity. Productivity could be measured in terms of

output, sales, revenue, or other relevant metrics.

1.8 Limitation of the Study

● Generalizability: The findings of the study may not be generalizable to other brewing

companies in Nigeria or to other industries. This is because the study is limited to a single

case study.

● Self-reported data: Some of the data collected for the study may be self-reported, which

could lead to bias. For example, employees may be more likely to report positive

information about their company's marketing strategies.

one point in time. This makes it difficult to draw conclusions about causality.

● Other factors: There are many other factors that can affect organizational productivity,

such as the economic environment, technological advancements, and government

regulations. It can be difficult to isolate the impact of marketing strategies from these

other factors.

1.9 Definition of Terms

● Marketing strategies: Marketing strategies are the plans and actions that a company

takes to promote and sell its products or services to its target market. Marketing strategies

can include a variety of activities, such as product development, pricing, promotion, and

distribution.

● Organizational productivity: Organizational productivity is a measure of how

efficiently and effectively a company uses its resources to produce goods or services.

Productivity can be measured in a variety of ways, such as output per employee, sales per

employee, or revenue per employee.

● Marketing mix: The marketing mix is the four Ps of marketing: product, price,

promotion, and place. The marketing mix is a set of tools that companies use to create

and deliver value to their customers.

● Target market: The target market is the specific group of people that a company wants

to reach with its marketing messages. Companies typically identify their target market

based on factors such as demographics, interests, and needs.

company's brand. Brand awareness is important because it can influence consumer

purchase decisions.

● Employee morale: Employee morale is the level of satisfaction and enthusiasm that

employees have for their jobs. High employee morale is important for productivity and

overall organizational performance.

● Reputation: A company's reputation is the overall perception that people have of the

company. Reputation is important because it can influence customer loyalty, employee

morale, and investor confidence.

LITERATURE REVIEW

2.1 Conceptual Framework

2.1.1 Marketing Strategy

The word strategy was originally used in a military context before being adopted by many other

fields. A strategy is a long-term course of action designed to achieve a particular goal. It is

differentiated from tactics in that a tactic refers to an immediate action using resources at hand.

When applied in a business context, a strategy refers to a set of managerial decisions and actions

that aims to differentiate the company from competitors and sustain its competitive advantage. A

company's strategy must be appropriate for its mission, resources and environmental

circumstances. Accordingly, a marketing strategy can be defined as a plan by a company to

differentiate the company to differentiate itself positively from its competitors, using its relative

strength to better satisfy customer needs in a given environment (Jain, 2004). Marketing

strategies entails the set of actions designed to achieve competitive advantage and achieve better

than average results by intelligent and fact-based selection among alternative leading to such

advantage (Shane, 2000).

2.1.2 Product Strategy

Kotler and Armstrong (2006) define a product as anything that can be offered to a market for

attention, acquisition, use, or consumption that might satisfy a want or need. They further define

a consumer product as the product bought by the final consumer for personal consumption.

Consumers buy products frequently, with careful planning, and by comparing brands based on
price, quality and style. Borden, (1984) sees a product as about quality, design, features, brand

name and sizes. Mohammad et al, (2012) also say that product is the physical appearance of the

product, packaging, and labeling Information, which can also influence whether consumers

notice a product in-store, examine it, and purchase it. Past researchers have clearly suggested that

product influences have a significant impact on business performance (Kazemand Heijden, 2006;

Kemppainen et al, 2008; Ogunmokun and Esther, 2004; Owomoyela et al, 2013).

In marketing, the product is important component of the marketing mix. It determines whether

the organization survives or dies. To develop the 'right' product is not an easy task because of the

dynamic nature of consumer needs and attitudes. The goods and/or services people buy at any

given time are determined by their immediate needs and other external stimuli.

According to Busch and Houston (1985) product is anything capable of satisfying a consumer

want or need. It can take a variety of forms, including a physical object, a service, a place, an

organization, an idea or a personality. Kotler (1991) defined a product as anything that can be

offered to a market for attention, acquisition or consumption; it includes physical objects,

services, personality, places, organizations and ideas. Under the traditional approach, a product is

seen as the entire bundle of utility that is offered by a marketer to the market place. This bundle

contains a potential for satisfaction that comes in part from a tangible, objective feature of the

product. Satisfaction is also derived from the intangible, subjective features of a product. This

accounts for why some people may prefer to buy higher priced goods than their cheaper

counterparts. Functionally, the products may serve the same purpose but this is not enough for an

ego-conscious consumer. Products can also be viewed from the angle of the benefits they offer,

in fact, markets are divided into segments on the basis of benefits which reflect the needs and

wants of each segment. A marketer must always try to identify the primary and secondary
benefits his product is likely to offer to the consumers and convert them into unique selling

proposition (USP).

2.1.3 Promotion Strategy

Promotion is the function of information, persuading and influencing the consumers 'Purchase

decision. It may be defined as any communication activities whose purpose is to move forward

products, idea or service in the marketing channel in order to reach the final consumer.

Promotion affects the knowledge, attitudes and behavior of the recipient. Promotion usually

provides target audiences with all the accurate information they need to help them take decision

to visit a particular destination/site. The information should be accurate and timely and should

not be misrepresented so as to satisfy the customers and create a positive image for a destination.

Zeithaml et al. (1995) describe promotion as part of specific effort to encourage customers to tell

others about their services.

Borden, (1984) defines promotion as sales promotion, advertising, personal selling, public

relations and direct marketing. Kotler, (2007) discovers that Promotions have become a critical

factor in the product marketing mix which consists of the specific blend of advertising, personal

selling, sales promotion, public relations and direct marketing tools that the company uses to

pursue its advertising and marketing objective. Previous researches (Amine and Cavusgil,

2001;Francis and Collins-Dodd, 2004) have established significant relationship between

promotion and business performance.

2.1.4 Organization Performance

Performance defined using the 3E: efficiency, efficacy and economies, as forms of manifestation

MihaiRistea (2002) thinks that the following three concepts can be associated with performance:
efficiency, economies and efficacy. This approach to performance was named by the professor as

being the equation of the 3Es, and mathematically, it could be represented as follows:

Performance = Efficiency + Efficacy + Economies. It can be noticed the fact that an entity is

successful when it is efficient, effective and economical. Therefore, to be successful means

combining all three variables, the combination of which reflects the performance level of an

entity. Efficiency consists in either using a quantity given by resources, aimed at the highest

level of the achieved results, or reducing the quantity of the used resources with the aim of

achieving a predetermined result. Economies consist in providing the means, the necessary

resources to performing an activity at the minimum cost. Efficacy is determined by achieving or

exceeding the predetermined results to the actual results made throughout the development of the

activity. This represents the ability of the enterprise to meet and even exceed the expectations of

users of the accounting information (shareholders/associates, clients, suppliers, employees,

government) at the same time with reaching the predetermined organizational objectives. An

entity reaches efficacy when it manages to improve the way of using all sources which are

available and necessary to the development of the activity, performing as well as possible the

needs and the requirements of the external partners of the organization.

2.1.5 Profit

According to www.businessdictionary.com, a profit is a financial gain especially the difference

between the amounts earned and amount spent in buying, operating, or producing something.

Profit can also be seen as surplus remaining after total cost are deducted from total revenue and

the basis on which tax is. Profitability is the primary goal of all business ventures. Without

profitability the business will not survive in the long run (Simons, 1999). So measuring current

and past profitability and projecting future profitability is very important. Profitability is ability
of a company to use its resources to generate revenues in excess of its expenses. In other words,

this is a company’s capability of generating profits from its operations.

The other three are efficiency, solvency, and market prospects. Investors, creditors, and

managers use these key concepts to analyze how well a company is doing and the future

potential it could have if operations were managed properly. The two key aspects of profitability

are revenues and expenses (Ambler, Kokkinaki and Puntoni, 2004). Revenues are the business

income. This is the amount of money earned from customers by selling products or providing

services. Generating income isn’t free, however. Businesses must use their resources in order to

produce these products and provide these services. Resources, like cash, are used to pay for

expenses like employee payroll, rent, utilities, and other necessities in the production process.

Profitability looks at the relationship between the revenues and expenses to see how well a

company is performing and the future potential growth a company might have.

There are many reports to use when measuring the profitability of a company, but external users

typically use the numbers reported on the income statement. The financial statements list the

profitability of the company in two main areas. The first signs of profit show in the profit margin

or gross margin usually calculated and reported on the face of the income statement. These ratios

measure how well the company is.

2.1.6 Sale Volume

This is the quantity or number of product sold or services provided by a company in a particular

period of time. Sales volume can be seen as the volume of goods sold in number or quantity of

units during the normal operation.

Market share is the percentage of an industry or market’s total sales that is earned by a particular

company over a specified time period.Market share is calculated by taking the company’s sales

over a period and dividing it by total sales of the industry over the same period. It can also be

described as a percentage of total sales volume in a market captured by a brand, product or

company.

Market share is said to be a key indicator of market competitiveness that is, how well a firm is

doing against its competitors. "This metric, supplemented by changes in sales revenue, helps

managers evaluate both primary and selective demand in their market. That is, it enables them to

judge not only total market growth or decline but also trends in customers’ selections among

competitors. Generally, sales growth resulting from primary demand (total market growth) is less

costly and more profitable than that achieved by capturing share from competitors. Conversely,

losses in market share can signal serious long-term problems that require strategic adjustments.

Firms with market shares below a certain level may not be viable. Similarly, within a firm’s

product line, market share trends for individual products are considered early indicators of future

opportunities or problems (Farris, Neil, Phillip, David 2010). Research has also shown that

market share is a desired asset among competing firms. Experts however, discourage making

market share an objective and criterion upon which to base economic policies (Armstrong and

Kesten 2007). The aforementioned usage of market share as a basis for gauging the performance

of competing firms has fostered a system in which firms make decisions with regard to their

operation with careful consideration of the impact of each decision on the market share of their

competitors. It is generally necessary to commission market research (generally desk/secondary

market size and a company's market share.

2.1.7 Effects of Marketing Strategy on Performance

i. Product

It is of prime advantage for the firm to possess the ability of consistent and planned activities to

meet and exceed customer preferences and value that can be regarded as customer performance.

This customer performance is achieved by the firm regardless of the approach of marketing

pursued meaning either undertaking standardization or adaptation. In order for a company to

securely adapt to varying international markets, the marketing strategy should take into

consideration the internal and external business environment that affects a company positively to

revel in greater performance. The influence of marketing strategy- product focus on various

dimensions including actual and augmented product factors on performance in international

markets, has quite received attention by numerous researchers.

The study conducted by Aremu and Lawal (2012) which employed composite export

performance measures, focused on product design marketing mix element found conducive to

performance of companies pursuing global marketing in that it can serve product adaptation as a

means of differentiation for rival’s products and influence overseas customer attitudes (customer

performance) toward a firm’s product. In overall, the study by Aremu and Lawal (2012) found

product design and style to have a significant positive effect on firm performance. While other

studies researched on the relationship between product quality and firm performance in

international markets in which the relationship is found to be positively associated. The provision

of high-quality product to customers has been postulated to augment the value associated with
customer performance. Prior studies reveal two observations regarding quality of product in line

with the marketing strategy that are important. However, the export product marketing mix for

companies is usually of a narrower range than that offered domestically, because of financial

constraints and operational difficulties associated with global marketing activities (Aremu and

Lawal,) First, it significantly reflects a customer-oriented posture because the firm engaging in

global marketing systematically evaluates consumer and buyer behavior and host market

characteristics that improve the firm’s total performance (Douglas and Wind, 1987). Second,

product adaptation strategy can lead to greater financial performance such as profitability, as a

quality product–market match can result in greater customer satisfaction thus improving

customer performance that is one of the outcome in our research model, which consequently

allows for greater pricing freedom for the firm. Third, pressures associated with meeting a great

degree of specific market requirements on international level often demand creative and

innovative marketing strategy, which may bring about additional products for a firm’s domestic

and international markets. Thus far, product adaptation is a suitable strategy toward market

responsiveness as it offers the development of new products that meet the needs of a changing

marketplace.

2.2 Theoretical Framework

RESOURCE BASED VIEW THEORY

Marketing's growing interest in the organizational response first emerged in the late 1980s and

early 1990s, through market orientation studies. Scholars at the period are concerned with

the application of the branding theory and related to the business orientation viewpoint both in

terms of market intelligence Kraaijenbrink, Spender, & Groen, (2010) and Roos & Roos, (1997)
organizational culture. Mielleller, Pels and Saren, (2009). From the perspective of market

intelligence, responsiveness is developed through knowledge generation and sharing, while

from the perspective of organizational culture, responsiveness is created from three

behavioral elements: consumer needs orientation, competitor actions, and Homburg inter-

functional coordination (2007).

Another approach that shaped marketing research was the resource-based view (RBV). This

flow is based on the assumption that unique assets are uncommon, valuable and hard to

imitate, which in effect explains the heterogeneity of quality among Wernerfelt companies

(1984); Vorhiese Morgan, (2005); Morgan, (2012;). Given the need for RBV in theoretical

marketing research, critics point out its shortcomings in describing sufficiently how and why

those companies gain a competitive advantage in dynamic environments.Theorists in strategic

management contend that the viewpoint of competitive potential will make substantial

contributions in such markets.

Resource-based view Supported by the Austrian Economic School, Network and RBV Founded

on RBV and market-oriented approach Understand to combine viewpoint with RBV Speed

reaction to signs of environmental change. Strategic intervention to use the information

system on the market as a tool in response to market changes. The concept of marketing strategy

is gradually becoming an integral part of today's existing business.

The theory of strategy is ancient to win wars and protect territories, and it comes from Greek.

The aim of designing a company's marketing strategy layout, according to Owomoyela,

Oyeniyi, and Ola (2013), is to build, create, secure, and maintain its competitive
advantage. Management judgment in strategic marketing is crucial in overcoming the

difficulty and volatility of the environment.

Long-Yi and Ya-Huei (2012) indicate that the marketing strategy can be grouped into four

lines of research: (1) a twofold situated advertising system: using viable and passionate item

names, simpler to-recollect and retail costs to mull over operational expenses and worth,

mental factors and focused costs. (2) Rational advertising technique: utilization of practical

prerequisites in a balanced position, consider after-deals administration, confirmations,

conveyance and usage good with customer factors. (3) Emotional showcasing procedure:

bundling, enthusiastic area, physical item shape accentuation, shading structure, passionate item

names use, memory, item bundling and marking. (4) Marketing methodology for upkeep:

clients are increasingly worried about cost and quality, the use of multiple marketing

techniques is not appropriate, and producers should improve product packaging and labeling.

Achumba (2000) defines strategic marketing as a preferred line of action that an organization has

chosen to achieve a marketing goal. Strategic marketing planning can also be cross-functional

decision-making that will help a company achieve its desired goals. Here it should be

noted that marketing requires activities that please consumers. It is a matching operation.

Marketers need to define and appreciate consumers ' needs and expectations and then

determine how to best meet them. Throughout culture, happiness is available through the

system of trade. Marketing, with its focus on fulfillment, persists because it must meet the

needs of society and must be satisfied.

2.3 Empirical Review

formulate and execute strategies to achieve their marketing objectives. This empirical

review/framework outlines key elements and considerations based on existing research in the

field.

1. Market Analysis:

Market Segmentation: Empirical studies often emphasize the importance of identifying distinct

market segments and tailoring marketing strategies to address their specific needs and

preferences (Kotler & Keller, 2016).

Competitor Analysis: Research suggests that a thorough analysis of competitors is crucial to

gain a competitive advantage in the market (Porter, 1980). 2. Targeting and Positioning: Target

Market Selection: Empirical research highlights the need for organizations to carefully select

target markets based on factors like market size, growth potential, and alignment with the firm's

capabilities (Hooley et al., 2008). Brand Positioning: Scholars emphasize the significance of

positioning a brand effectively in the minds of consumers to differentiate it from competitors

(Keller, 1993). 3. Marketing Mix (4Ps): Product Strategy: Empirical studies delve into product

development, features, quality, and lifecycle management as critical components of marketing

strategy (Lambin, 2017). Pricing Strategy: Research explores various pricing tactics, such as

value-based pricing, psychological pricing, and dynamic pricing, and their impact on consumer

behavior and profitability (Nagle & Müller, 2017). Place (Distribution) Strategy: Empirical work

investigates distribution channel selection, channel management, and logistics decisions to

optimize product availability and reach (Rosenbloom, 2014). Promotion Strategy: Studies

examine the effectiveness of promotional tools, including advertising, sales promotions, personal
selling, and digital marketing, in influencing consumer perceptions and behaviors (Shimp &

Andrews, 2013).