THE IMPACT OF MARKETING COMMUNICATION ON CUSTOMER'S LOYALTY TO CONSUMERS PRODUCT

(A CASE STUDY OF CADBURY NIGERIA PLC)

ABSTRACT

This research work is basically carried out to critically and objectively examine the significant and in negligible role played by "Marketing Communications on consumer loyalty to consumer products".

This study further reveals the identical, relationship between Marketing Communications with terms as used therein, such as - Marketing. Mix (Those combination of the four (4Ps) inputs that constitute the core of a company's marketing system, that is - product, price, place and promotion); Consumer Products, Social Marketing and Consumerism, with more emphasis on consumer products manufacturing giant, CADBURY NIGERIA PLC.

Moreso, this research is carried out though the traditional primary and secondary sources of data respectively and it reveals how the company (Cadbury, in this case), in comparison to other competitors, has been able to explore and implement the a concept of Integrated Marketing Communications (IMC) in achieving its marketing goals of increase products patronage, brand loyalty, customers' acquisition and retention, in a highly competitive consumer market.

However, the research has limited the exercise to the following:

(i)        A random sample of consumers in Lagos and other accessible

areas.

(ii)       Four major product mix (Bounrvita, TomTom, Knorr and Chocolate) of Cadbury are being considered.

(iii)      The study is intended to examine the performance of marketing communications to overall objectives of Cadbury.

(iv)      The roles played by various communication tools., on consumers' patronage of Cadbury products.

(v)       Examining the raison d'etre for consumers' tastes and preferences.

TABLE OF CONTENTS

                                                                                                                        Pages

Title Page                                                                                                                  i          

Certification                                                                                                             ii

Dedication                                                                                                                iii

Acknowledgment                                                                                                   iv

Abstract                                                                                                                    v

Table of Contents                                                                                                   vi

CHAPTER ONE: INTRODUCTION

1.1            Background of the Study                                                                         1

1.2            Statement of Problem                                                                              5

1.3            Objective of the Study                                                                              7

1.4      Research Questions                                                                                   8

1.5      Statement of Hypotheses                                                                        9

1.6      Significance of the Study                                                                         10

1.7      Scope and Limitation of the Study                                                        11

1.8      Definition of Terms                                                                                    13

CHAPTER TWO: LITERATURE REVIEW  

2.1            Introduction                                                                                                            16

2.2            Review of Related Literature                                                                  16

2.2.1    Marketing in Relation to Communications                                         17

2.2.2    Marketing Communications Defined                                                   19

2.3            A view of the Communications Process                                               23

2.4            Developing Effective Communications                                                            26

2.5            Components of Marketing Communications                                     46

2.5.1    Advertising                                                                                                   46

2.5.2    Sales Promotion                                                                                         47

2.5.3    Publicity                                                                                                        48

2.5.4    Public Relations                                                                                          49

2.5.5    Packaging                                                                                                     50

2.5.6    Direct Marketing                                                                                        50

2.5.7    Event Marketing                                                                                         51

2.5.8    Personal Selling                                                                                          52

2.5.9    Other Promotional Tools                                                                         53

2.6            Understanding Consumer Behaviour                                                   56

2.6.1    Consumer Buying Motives                                                                      57

2.6.2    Consumer Buying Decision Process                                                      61

2.6.3    Types of Consumer Buying Behaviour                                                 63

2.6.4    Consumer Evolution and Transformation                                           64

2.7            Summary of Literature Review                                                              65

CHAPTER THREE: RESEARCH METHODOLOGY

3.1            Introduction                                                                                                            68

3.2            Location of the Study                                                                                68

3.3            Research Data and Design                                                                       71

3.4            Research Instruments                                                                               72

3.5            Data Collection Procedures                                                                     73

3.6            Questionnaires Assumption & Design                                                  75

CHAPTER FOUR: PRESENTATION AND TREATMENT OF DATA

4.1            Introduction                                                                                                            76

4.2            Presentations and Treatment of Data                                                  76

4.3            Analysis of Data                                                                                          77

4.4            Testing of Hypotheses                                                                              79

4.5            Interpretation of Results                                                                          82

CHAPTER FIVE: SUMMARY OF RESEARCH STUDY

5.1            Introduction                                                                                                            86

5.2            Summary of Findings                                                                                86

5.3            Recommendations                                                                                     88

5.4            Conclusion                                                                                                   90

Bibliography                                                                                                            92

Questionnaire                                                                                                         94

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND TO THE STUDY

This chapter will examine the basic background to the study and its objectives will involve analyzing the historical and analytical perspectives of Marketing Communications on consumer loyalty to consumer products in the consumer segment of the market with proportionate emphasis on Cadbury Nigeria Plc.

The chapter will also include statement of problem, which will give rise to fundamental questions that will be answered in the context of the study.

Purpose of this study will be analyzed in order to bridge communication' gap between the reader and the writer of the project (researcher).

The scope and limitation of the study will be reviewed. The essence of this is to provide the audience with information about areas that this researcher has considered for the collection of data. This is because it is obvious the study cannot cover all geographic areas inherently concerned with the study. Limitation of course, will also be given consideration particularly as it affect this research.

The fact that the combo of marketing communications and the attendant consumer behavioural process breeds a complex study also indicates numerous problem that may hinder our research efforts into its indepth development and applications.

The world communication 'is derived from the Latin word – “COMMUNIS” meaning "Common". Thus when you communicate, you are trying to establish a commonness with someone. Through the use of verbal or non­verbal symbols; you, as the source, send amessage through a channel, to receiver, in an effort to share an idea, attitude .attitude or, some other kinds of information.

As universally acknowledged, communication is an all-embracing discipline; it permeates all walks of life, and it is the life-blood of allorganizations' activities. It is an integral part of marketing management, which makes marketing itself to be referred to as communication.

Marketing communication is, therefore, employed as a promotional tool in the consumer market just like in other types of businesses for attaining the set goals and objectives of corporate bodies and individuals and even, the government at all levels.

Modern marketing calls for more than developing a good product, pricing it attractively and making it accessible to the target consumer s. companies must also communicate with their present and potential customers, retailers, suppliers, other stakeholders and the general public. Every company is inevitably cast into the role of communicator and promoter, all promoters, all rolled into one. It is observed that, for most companies; Cadbury Nigerian plc inclusive, the question has always been not whether to communicate but rather -- what to say to whom and how often.

Basically, the term "Marketing" goes beyond selling or invitation to buy but it rather involves fundamental functions of identifying, anticipating and satisfying the need of the consumer. Once, it is described as a complex system rightly envisaged and catered for, even before production take place. It is off-shot of a larger marketing system that determines what to produce, when to produce it, how to produce it and for whom to produce for, leading to the study of consumer behaviour in attempt to discover his motives, willingness and ability to buy a product.

According to Foxall, "the marketing communication mix, otherwise known as promotional mix, is that complex of techniques under the control of management which may be used to communicate directly with buyer and potential buyer".

It is however, notably observed that the production in itself ,is not yet completed until it transform through all processes till it ultimately reach the final consumer who uses or consumes the product to quench his desire and satisfy his wants, either in the industrial or consumer market.

In a nutshell, the itinerary of marketing involves production of goods, good distribution, selling of the goods, satisfying the need of demands and getting feedback (information) about the strength and weakness of the product and the company in the market. Then marketing would have been completed.

Thus, Ames B. C. in his book (Pay-off from Product Management) defined product "as the essential vehicle for the provision of consumer satisfaction offered by a company in the market place." The Nigerian economic environment has undergone some fundamental structural changes. in, the recent years, which led to intermittent changes and instability, in the market. The apparent implication of such changes is the distortion of economic life of Nigerians. It elongates poverty and diseases, which lead to reduction in standard of living of the people. It creates low or better still, no purchasing power due to weak naira. It leads to low capacity utilization of the manufacturing sector thus low per capita income for household and industries. It also intensified inflation rate to high level and created room for smuggling, corruption and other anti-economy vices whileensuring steady rise in the rate of unemployment.

Amidst all these changes is - the obvious adverse effects inflicted on the marketing environment to the detriment of the manufactures . and particularly, the marketers. This is because, marketers have to contend with these obstacles day-in, day-out and it becomes necessary to fashion ways out of the doldrums in order to meet their set targets and break even, by making goods and services available to consumers and at the same time, aim to shoot up the sales turnover and profit of their respective companies.

As a result, those elements of the marketing mix which had to this time been relegated to the background, came into limelight to form the mix of corporate marketing operations in planning, implementation and controlling, all in the efforts to analyze the trends in the market and strategize to break­even by winning a fair share of total market competitions.

For a product, a marketer is faced with the task of creating a favourable disposition, thus, in the course of his attempt of persuasion, the marketer is compelled to seek for-confirmation of the existing attitude of consumers; change the new attitude to give him that edge. This, of course, is the main persuasive strategy a seasoned marketer would employ to pull through in a competitive marketing environment. Essentially, the challenges of changes are better handle through effective deployment of marketing communications strategies.

As every consumer is aware especially those in Urban areas, there are confusing arrays of integrated marketing communication campaigns, with each trying to out do other in an effort to win consumers patronage and

loyalty to their competing brands, they resulted to the use of promotional tools such a - Advertising, Personal Selling Direct Marketing, Public Relations, Sales Promotion etc.

Also, the enthronement of consumer sovereignty and concept, of consumerism places the manufactures at the behest of, consumers. Which lend credence to the scrambling of these manufactures to intimate their various brands with consumers through vigorous use of aggressive marketing communication tools.

1.2      STATEMENT OF PROBLEMS

The structural changes that affected the economic 'landscape of Nigeria, as discussed earlier, heralded the intense employment of tools of marketing communications by manufactures of consumer products.

Since the main task of marketing in mobilizing the resources of the organization towards improving the well-being of the society through the delivery of standard of living to the economy.

In producing any from of goods or services, the producer must of necessity have the consuming public in mind. Marketing has in it roots, the customer which is the reason for the business.

The multiple adverse effects of economic changes warrants the manufacturers to find solution to low demand of their products prices; the restraints on purchasing power of consumers caused by inflation and weak currency and influx of foreign competitive and substitute goods to the market.

A suave marketer will seek to study and understand the emotions and instincts-induced behavioural processes of consumers to determine their needs and preferences in order to satisfy those needs. The business philosophy that focuses on the customer and, brings all the organization's resources and skills to bear on the task of understanding and meeting customer needs is integrated marketing communications.

And because marketing environment is the one that is ever dynamic,, tastes and preferences of these so-called consumers changes with time. Then,

manufacturers and faced with problems of creating awareness and knowledge-based information about their products to consumers.

To stay in touch with consumer's changing needs and ensuring the company's ability to deliver those needs with new product lines

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