PROJECT TOPIC- AN EVALUATION OF THE PRACTICE OF SOCIETAL MARKETING IN SELECTED INDIGENOUS MANUFACTURING COMPANIES IN ENUGU STATE
‘I’hc sccnario of business environment is never static, and any company that wisl!es to survive within the society must always plan
against thc dynamic nature of the society, because nature and the environn~ent 01- the society work hands in glove. This implies that
manuSactuse~-s should at thc same time they are thinking about the product or service to offer to consumers in order to satisfy them, so
as to win their patronage, and at the same time make profit, they sl~ouldc clually think about the humanistic aspect oC marketing of the
consumers’ preSercnces. l’his implies thinlting about the consumers’ welfare and at the same time about the welfare of the communities
or society in which they do their business(es); ie thinking in the line of societal marketing.
1t is against this background that this study tries to malie critical evaluations of’ the place of, the necessity for, and contributions OS societal marketing concepts to indigenous manul’acturi~lgc ompanies. Hence, the s t ~ ~ dpyop ulation was drawn from the internal and extcrnal publics, ie the entire staff and ma~lage~neonSt these three companies, then thcir host comnlunitics. Thus the researcher worked with two questionnaires directed to these two grou’ps, and the survey method used to deal with the problems set out by the hypotheses. The researcher selected 120
respondents from the internal public and 300 from the external pi~blicto get a total sample size of 420 for the study. I-Iowever, at the end, 405 respondents returned their questionnaires, and all analyses was based on these returned questionnaires.
The researcher tested the three hypotheses of the study using the chi-square test statistic. The following findings were made, C-
* That of the three companies studied, only one is putting or using the principles of societal marketing concepts in its strategic planning.
“That indigenous manufacturing company in Enugu State is yet to understand and at the snrne time, practice the principle of societal . .. marketing.
* That most of the problems these indigenous manufacturers faced within the society are being caused by them (ie the manufacturers) because thcy failed to acknowledge the importance of the society towards their success.
. , 1;ollowing the abovc lindings, it was generally concluded that indigenous n~anufacturingc ompanies s l ~ o ~e~nlldpl oy the triangular concept of societal marketing, ie having the interest of the company at heart, satisfaction of consumers’ needs and wants, and provision of societal we1 Fa-e(s). The indigenous manufacturers should bear in mind that there is 11ardly any company that would not go down in ruin if it refused to produce for the above-mentioned three entities Illat maltc up its existence.
Based on the above components, the researcher recommend hat indigenous manufacturers should not hold tenaciously to their primary business objectives of profit maximization, but should equally show concern for the welfare of their host communities.
BACKGROUND OF THE STUDY
A remarkable feature of the Nigeria economy is the plan to develop a conscious and sustained el’lorts to diversify the nation’s economy. Manufacturing companies has a’lot to do to assist in this regard; because, manufact~~rincgo mpanies play an important role in setting up the living standard of the citizenries. Hence, some private individuals started opening up their own manufacturing companies to help the government and public ‘ companies in the nation building.
Some of such private companies include Fairline ~5harmaccutica1, Juhel pharmaceutical and Bons t’oocis Itd, etc. Again the complex dynamic nature of today’s business environment has deemed it necessary for every business . .. organization to be familiar with modern business concepts. A knowledge of osganization and its environments, ancl the critical roles played by some l’unctional levels like management, finance and ma]-lteting in all aspect of organization setting is vital and equally needs to be properly untlcrstood.
This is necessary because thc busincss~nan of today cannot ai’ford to ignore the rapid changes taking place in methods and products. Gone are the clays when business operations were pursued without an understanding of the underlying principles, This business agenda is, however, a function of many intermediating variables, among which is the operating environment or the society at large.
This implies that no organization succeeds in a troublesonie or troubled society; because an unfriendly environment and 1 or society is a serious barrier to business just as a friendly society is a boost. … . This write- up tend to p&- a yth e significance of the mutuality of the relationship of business and its environment or society. The need for regular environmental scanning to ferret out opportunities for cxploitation and pinpoint real and potential threats to organizational survival.
The ma-lor motive of any business organization (be it profit oriented or non-profit oriented) is the desire to succeed or at worst to reakacceptability
of operation within even. Hence for an organization to survive and prosper, it must achieve legitimacy. The legitimacy of any organization rests on the , its products, services, image and methods of its its environment and society in general.
Hence, the increasing interests in behavioral disciplines have imbued marketers with greater appreciation of the humanistic aspects of marketing.
Marketing has been presented as an activity that takes place before production is contemplated and continues even after the product is sold. The societal marketing concept being the nearest of thc five n~arlteting inanagcment philosophies added a lift to the marketing concept.
This ncwest concept of marketing holds that the organization should determine the needs, wants and interest of target marltets, then should &liver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and the society’s well being.
Virtually all-manufacturing firms are faced with discrepancies in onc WRY or the other, and it is equally truth to say that most of them manufacturing firms) cannot efficiently satisfy all in the task ‘ of carrying out their ~narlteting functions so as to overcolne these discrepancies. But with the. aid of the application of the societal ma~keting concept, if aid when properly adhere to will give a resounding solution to closing-up some of these discrepancies to an appreciable level.
‘1’0 tliis effect, it becomes imperatively important io evaluate the practice of the societal marketing concept and its contribution to organizations. The societal marketing concepts questions whether the pure marketing concept is adequate in an age of environmental problems, resources shortage, and worldwide economic problen~s and neglected social serviccs. It equally ask if the firm that senses, serves and satisfies individual wants is always doing ,what is best for consumers and society in the long-run.
I n the broadest sense, the society in which a company opcrates . – poses a threat to its success or failure. But the locus of any n~anufact~irincgo mpany is its ability to survive in any wind of cl~ange within its system. For instance, the economic impact of inflation has resulted in high construction costs, rents, wages and other costs, and this is causing many inanufacturers to operate below the break-even point. The resultant effect is that some nianufacturers have left manufacturing to other business ventures like exporting or importing of goods (i.e. trading instead of manufacturing).
In line to this societal marketing principle some academic elites equally highlighted the importance of tliis concept to the survive of any organization. According to Onyebuagu (1995), he contented that “business success and survive are determined by managements effective adaptation to the influence of dynamic environmental force.. . .”
Aire (1 976) supported the above point of Onyebuagu by stating that “a healthy business and a sick society are . .. not compatible” hence, that “a healthy business requires a healthy, or at least a functioning society as the health of the community is a prerequisite for successful aid growing business”. horn the above postulations, it follows therefore that business organizations must be masters and active players of their — environmcnt. By their ddi berate proactive and reactive dispositions to environmental issues, organizations would be able to keep negative societal forces at bay. By so doing, they will reap fiom harmonious working and Friendly societal acceptance, which is very necessary for successful business growth.
Most of the problems companies encounter with their environment or society at large is that such organization neglects its societal responsibilities to the surrounding coininunities or town. According to the societal marketing concept the pure marketing concept over loolts the possible conflicts between short-run consumer wants and long-run consumer welfare.
To this, it is advisable I’w every rnarltcting decision of any organization to consider the impact of this societal force as input force. It then follows that manufacturers and their organization in general should permanently kept on their toes so as to maintain equilibrium in their enviroliment, which ih effect will assure their existence in the ever-turbulent business society. According to I.E. Nwosu, ‘”The societal marketing strategy.. . is a relatively new marlteting philosophy that renew the old call that marlteters, lilte all other businessmen and women should show real or practical respect -h ‘ Ibr the corporate social res~onsibility( CSR) theory of business.
‘This . . they should do by doing such practical .things as supporting or contributing to education, development projects, agriculture and other things that will add valve quantity to their customers lives”. I-Ie wcnt further to say that the societal inarlteting specifically de~iiands that marketers and other business people make concrete contributions to the protection and preservation of the environment, especially in the societies or corninunities in which they do business.
This is a fact to be taken serious by ally organizatio~l because it is important to note that the survive and success of any business or organization in a highly competitive business environment is measures by the extent to which they operate profitably, maintained their customers and the society as well. . . From the analysis of points so far, it become imperative that companies, organizations etc have a responsibility to the society or communities in which they operate.
The companies should strive hard to meet the expectations of their iininediate coinmunities or town through the provision of social amenities like scholarship to the youths, provision or good road and good drinking water, health , centers, employment opportunities to the citizens of the area etc.
Hence, this study- will evaluate the practice of societal marketing in selected indigenous manufacturing companies in Enugu state, with particular reference to the three mentioned coinpanies- .lullel, Fairline and 13011s hod Itd.
PROJECT TOPIC- AN EVALUATION OF THE PRACTICE OF SOCIETAL MARKETING IN SELECTED INDIGENOUS MANUFACTURING COMPANIES IN ENUGU STATE
1.2 STATEMENT OF THE PROBLEM
Individuals whose ultimate mission is to maximize profit with the stakeholders fund mostly owe indigenous ~nanufacturingc ompanies
in Eiiugu state. They are yet to understand and put into practice the role of improving the living standard of their host co~ninunities in
, their cardinal ~b~jectiveTs.h ey do not consider it important the impact of conimunity leader, community base organization (CBO), youth and indeed tlie society at large in which they operate.
They ncglcct and deprive these aspects of their worlting environment the right they [ie indigenous manufacturers] own these citizens. The resultant effect of these non-challant attitudes of these indigenous manufacturers are often expressed through the violent actionsof the host coinmunities like robbery, sabotage, vandalization of tlie companies properties etc, these kind of situation breads unfriendly relationship between the company and the community.
Again, over the I& several years, the economic environment has been tlie most visible environmental force affecting inanul’acturers. The most profound economic development has been the combined forces of recession, inflation and shortages of all Itinds, particularly energy. Most economists and other informed observers like interstellar do not view these development as simply sliort term quirks of the economy but rather significant trends which are likely to present problem well into the future. . ..
All things being equal, most organization desire and also strive to maintain environmental friendliness within its community, but it is usually a daunting task because of the unpredictability of the society itselr. At sometimes, the society spins off.new opportunities while at other times, new threats, new surprises and shocks suffice. This discourteous attitude by these two parties does not spell well for the progress of the coinpany involved. This is because capital that would have been invested for the progress of the company are sometimes used to settle disputes or court cases, thereby affecting the general performance of such a coinpany.
Hence, manufacturers are faced with the task of understanding the ilnplications of this societal change and adapting a better strategy so as to operate successliiy in spite of them. A better way to achieving a sustainable progress is through the practice of societal marketing concept ie embedding the interest of the company, consumer and society in all the company pro-jects and, decisions too. It is necessary to bear in mind that the idea of setting up these companies is to maximize the stakeholder’s fund and also make profit. But it is a fact to say that it is not enough to provide insights in marketing in such a changing society as ours.
The developments, evaluations and iinpleinentations of marketing strategies are an imperative to successfu I business management and societal marketing concepts, its practicability is a core role to the achievement or all marltcting, because, the societal marketing coilcept presents a comprehensive framework that blends the traditional marlteting concepts with the realities of our time. I-lence, thc societal marketing concepts call upon these manufacturing companies to balance three considerations in setting .
up their marketing policies, company profits, consumer want and society’s interests: Just like Glueck (1980-227) remarked that ‘improven~ent in society will make it easier for firm to survive and enjoy satisfactory long term profits’, It is these problems andlor – difficulties that exist be<wween manufacturing companies and their host communities or the society in general, which could be handled properly by the application and practice of the societal marketing concepts that the study intends to. look into.
1.3 OBJECTIVES OF THE STUDY
Every organization competing in an industry has a competitive strategy whether explicit or implicit. This strategy may have been originated explicitly through a well-articulated planning process or it may have developed implicitly through the activities of the various Smctional arms of the organization. Bearing in mind the problems set out in the former sections and the above postulations, this study intends to investigate and equally
evaluate the practice of societal marking in selecied indigenous manufacturing companies in Enugu State with particular reference to J u tie1 pharmaceutical, Fail-li ne pharmaceutical and Bops food Itd as case studies. Accordingly, the objective of the study are:
1. To evaluate the practice of societal marketing by these three companies Juhel, Fairline and Bons food in Enugu state.
2. To ascertain to what extent they make their marketing decisions by considering. consumer’s wants and long-run interest of the companies and the society.
3. To examine the nature and structure of their products so as to determine the level of pollution within their environment.
4. ‘To determine the best strategy that will ginger an equilibrium balance in the type of relationship that exist between the companies and society.
5. To find out the best marketing ethics to be adopted by these companies so as to satisfy their customers, make profit for them and at the same time capture the interest of the society.
6. To suggest the best and most appropriate methods of ‘Maximizing l i ‘ e quality’. This means having a nlarlteting . .. strategy that will care . for the consuiner satisfaction, maximizing consu~nplions and equally project the quality of the society.