Network Analysis
Network Analysis
Network Analysis
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II. Literature Review particular market demand on the basis of its constituent parts
Although, various definitions of marketing strategy have been so that set of buyers can be differentiated. Segmentation is
provided by scholars, Robson (1997) sees strategy as a pattern of therefore an indispensable input to market planning because
resource allocation decisions made throughout an organization. it is used to formulate market objectives by which a company
This encapsulates both desired goals and beliefs about what are may define its market, determine the position of its range of
acceptable and most critically unacceptable means for achieving product for expansion.
them. Strategy implies that the analysis of the market and its
environment, customer buying behaviour, competitive activities B. The Marketing Mix as a Strategy
and the need and capabilities of marketing intermediaries. The complex condition of modern business and the increase in
Marketing strategy relates to the customer groups to some and how almost all aspect of service operations has compelled the marketer
to fashion out marketing variables (marketing mix) to appeal to of service to place emphasis on the efficient and effective method
particular group of potential purchaser and this often refer to the of presenting their services to their numerous customers Olujide
concept of segmentation. The concept is based on the following and Aremu (2009). Morden (1993) defined marketing mix as “the
propositions. combination of detailed strategies, tactics, operational policies,
• Consumers are different programmes, techniques and activities to which resources may
• Differences between consumers are related to differences to be allocated such that the company’s marketing objectives are
market behaviour achieved”. Marketing practice is also a process of developing and
• Segment of customers can be isolated within the overall market maintaining a strategic marketing plan between the organizational
according to such factors as their personal characteristics, goals and capacities and changing marketing opportunities, it relies
their geographical location, their lifestyles, the need they on developing clear entrepreneur business enterprises objectives
seek to satisfy and their buying behaviour. in order to increase the level of productivity (Aremu 2006, Aremu
and Bamiduro 2012).
A. Market Segmentation as a Strategy The marketing mix is concerned with the realities and practicalities
Corey (1981) explained marketing segmentation to mean the sub of how marketing strategies may be turned into specific marketing
division of a market into subset of customers where any subset mix are to move objectives and plans into reality of implementation
may be selected as target market to be reached with a distinct and achievement.
marketing mix. This implies that marketing segmentation is the Hence, marketing mix must have:
process of dividing the total heterogeneous market for a product • A strategy element: this refers to the product to offer and the
into several sub markets each of which tends to be homogenous in target market to be served).
all significant aspect. Market segmentation is a consumer oriented • Planning elements: this refers to the time scales to be applied
philosophy that first identifies the needs of the customers within to new product development activities
a sub-market and then satisfies those needs. • Tactical elements: this refers to the extent to which discount
In segmenting a market, a company frequently develops a different is to be granted, level of purchasing pricing policy with the
variety of product for each segment. That is offering a unique trade.
product to different market. For instance, Globacom divides its • Operational and implementation elements: this refers to the
market in terms of income group, business needs and family needs activities that will be undertaken.
by offering its products first as post paid options and prepaid • Resources commitment: this refers to the basis at which
option where in prepaid (pay-as-you-go) its products come in advertising and sales promotion budgets should be
various forms and sizes- vouchers of N100, 150, and cards in constructed.
200,500,750, 1000, 2000 and 5000. • The marketing mix may initially be described and analyzed
After segmenting the market, an organization needs to decide on the basis of the 4ps of marketing. i.e product, price, place
how many and which ones to target. Hence, in entering its target and promotion.
market, a company can enter into such market with differentiated
or undifferentiated marketing. For instance, Globacom for some C. Product
time has served the market with the same product design, mass Morden (1993) defined product as “something that is capable
advertising media and mass distribution of its products. Also, of satisfying a customer need or want”. That need or want may
the company has used in recent times a differentiated marketing already exist or it may be latent that is awaiting the development
in reaching a large number of customers with varying needs and of the right product to meet those needs.
purchasing power using different promotional and marketing The product element comprises of:
programmes for different market.
Basis for market segmentation 1. Product Mix
The basis for segmenting the market includes: Which is the complete range of the company’s products, services
• Geographical basis: that is dividing the market into different and brand aimed at all of the relevant target market segments. The
geographical units such as nations, regions, countries or product mix of Globacom Limited are recharge cards, Black-berry,
neighbourhoods. Alcatel phones, SIM packs, internet modems, vehicle tracking
• Demographic basis: this divides the market into groups devices e.t.c
on the basis of variables such as age, family size, income,
occupation, race, generation and social class. 2. Product Line
• Psychological basis: includes benefit, users’ status, usage This is a group of product that are closely related either because
rate, occupational buyers, loyalty status, and attitude towards they satisfy a class of needs or are used together, are sold to the
product. same customer group, are marketed through the same type of
• Meanwhile, market segmentation involves analysis of a outlet or fall within a given price range, that is product aimed at
any one target market. achieve the promotional objectives of the marketing mix. It includes
advertising, sales promotion, public relation and publicity.
3. Product Item
This is a distinct unit within a product line that is distinguishable 1. Advertising
in size, price, package and some other attributes. The item is Advertising has many characteristics which include public
sometimes called a store-keeping unit, a product vibrant or sub- presentation, pervasiveness, amplified expressiveness and
vibrant. impersonality. Advertising media includes radio, television,
magazines, and newspapers among others. Companies like
D. Price Globacom Limited spend huge amounts of money annually
Price is the value or sum of money at which a supplier of a product to advertise for long term image building of its brand and
or service and a buyer agree to carry out an exchange transaction products.
(Morden 1993). Price represents a controllable variable which
earns revenue for all other variables and this distinguishes price 2. Sales Promotion
from all other variables. This is the general category of promotional activities which do not
A relatively high price can be regarded as an indication of quality fit other groupings in the promotional mix. The objective of sales
product which attracts some buyers particularly when it is allied promotion may be to enhance promotion and sales of the trade and
to effective presentation and promotion. Price is one of the most to assist the trade (distributive channel member) in promoting and
flexible elements; it can be determined quickly unlike product selling product to the final consumer. (Morden 1993)
features and channel commitments. Companies handle pricing According to Kotler (2001) sales promotion consists of a diverse
in a variety of ways. In large companies, pricing is handled by collection of incentive tools. Mostly short term designed to stimulate
division and product line managers but the top management sets quicker or greater purchase of particular products or services by
general pricing objectives and policies and often approves the consumers or the trade. Sales promotion includes coupon, contests,
prices proposed by the lower level management. The determinants premium, consumer price-offs, e.t.c and they distinctive benefit of
of prices include the market demand level, nature of competition, gaining attention and usually provide imagination that may lead
customer type and market segmentation, consumer behaviour the consumer to the product. They incorporate some concession,
towards the product, impact of channel of distribution, research inducement or contribution that gives value to the consumer; they
and development cost and micro economic trends among others. also include a distinctive invitation to engage in the transaction
Globacom prides itself as one of the first telecom companies to on the spot.
introduce generally affordable telecom products and services. An
example is the sharp reduction in the cost of acquiring a Glo SIM 3. Publicity and Public Relations
card in 2003 as compared to MTN SIMs and the first to introduce Cole (1996) views publicity as “news about the organization or
a recharge card as low as N500. its product reported in the press and other media without charge
Place (Distribution) to the organization. He argued that publicity usually comes under
According to Kotler (2001) marketing channels are set of the heading of public relations, which is concerned with the mutual
interdependent organizations involved in the process of making understanding between an organization and its public. An important
a product or services available for use or consumption. Channels aspect of public relations is to inform target customer groups about
of distribution provide the link between production or supply the company and help to persuade them try its product through
and consumption. They are used to make products or services means other than paid advertising, direct or indirect selling. (Belch
assessable and available to consumers or buyers. As product passes and Belch 1997)
through its channel of distribution, it gains added value because it According to Kotler (2001), the appeal of public relations and
becomes available to the consumer when and where it is wanted. publicity is based on three distinctive qualities - high credibility,
Marketing channel decisions are among the most critical and ability to catch buyers off guard and dramatization. However,
ultimately affect all other marketing decisions. The company’s publicity and public relation is a wider responsibility for safeguarding
product prices often depend on whether it uses mass channel and improving the relationship between the organization and
(associated with lower cost) or high quality exclusive channels. As relevant environmental factors such as government and the society
a strategy a company may adopt intensive distribution, selective at large. Hence, the job of public relation affairs personnel is to
distribution or exclusive distribution of its product. A company like give the information that will promote the good image right from
Globacom uses intensive distribution strategy to make its product within the organization to the outside world. Personal selling is of
available at the door step of the consumers. Some factors to be crucial importance to the marketing mix. The objective of personal
considered in choosing a distribution include market coverage, selling is “to make the sale” (Morden 1991)
channel control, cost, nature of goods, company’s objectives and Kotler (2002) posited that personal selling is the most effective
firm distribution policy. tool at later stage of the buying process particularly in building
up buyer preference, conviction and action. He emphasizes that
E. Promotion personal selling has three distinctive qualities which includes:
Kotler (2001) views promotion as including all the activities the
company undertakes to communicate and promote its product to the (i). Personal Confrontation
target market. That is, a company has to set up communication and It involves an immediate and interactive relationship between
promotion programs consisting of advertising, sales promotion, two or more persons.
public relations. He emphasized that each promotional tool or
programmes has its own unique characteristics and cost. In the (ii). Cultivation
opinion of Morden (1993), promotional mix is the combination It permits all kinds of relationship to spring up, ranging from a
of marketing and promotional communication methods used to matter of fast selling relationship to deep personal friendship.
Variables Frequency Percentage (%) established correlation between marketing strategy and marketing
Strongly agree 26 72 environment. The findings of the study revealed that there is
Agree 10 28 positive correlation between marketing strategy and marketing
environment. (r = 0.779, r2 = 0.606, F value of 73.877). The
Disagree 0 0
implication of this is that there is significant relationship between
Strongly disagree 0 0 marketing strategy and marketing environment in Nigerian
Indifferent 0 0 Telecommunication Industry. Nigerian Telecommunication
Total 36 100 Industry must recognized the the marketing environment and comp
Source: Field survey, 2011 them very well when designing their marketing strategy.
Table 1, reveals that 24 (66%) respondents strongly agreed that B. Hypothesis II:
marketing strategies should be formulated to meet up with volatile H2: Marketing strategy has no relationship with performance in
markets, 10 (28%) also agreed with this fact while 2(6%) remained the Nigerian telecommunication industry
indifferent to the question. This result shows that majority believed
that if strategies are formulated the changing market environment Table 3(a): Regression Model Summary of Marketing Strategy
would be easily tackled by the organization. This implied that and Organizational Performance
formulation of marketing as a necessity for communication Adjusted Std. Error of
industry in Nigeria. Model R R Square
R Square the Estimate
The table also shows that 10 (28%) sales staff of Globacom after
1 .881a .777 .772 .391
being asked of their view on the relationship that exist between
marketing strategies and market environment strongly agreed that Predictors: (Constant), Marketing Strategy
marketing strategy can be reflected to the marketing environment,
18 (50%) of the respondents also agree. While 2 (6%) and 6 (17%) Table 3(b): Result of ANOVAb
of the respondents disagree and remained indifferent respectively. Sum of Mean
It is glaring by this revelation that there is a relationship between Model F Sig.
squares df Square
marketing strategy and the market environment.
1 Regression 128.154 5
It can also be seen from the table that 26 (72%) of the respondents 25.631 .000a
Residual 36.772 240 167.284
strongly agreed that marketing strategy as a positive relationship .153
Total 164.926 245
with performance in the Nigerian telecommunication industry while
10 (28%) others also agreed as well to the fact. This goes to reaffirm • Predictor: (Constant) Marketing Strategy
that marketing strategies really helps to develop the industry in • Dependent Variable: Organizational Performance
terms of improved products and services to stakeholders. The second hypothesis was tested with regression analysis
to established correlation between marketing strategy and
V. Test of Hypotheses organizational performance. The results revealed that there is
This section of the study analyses the cumulative responses of positive correlation between marketing strategy and organizational
the sampled customers respondents, the responses are tied on the performance. (r = 0.881, r2 = 0.777, F value of 167.284). The
hypotheses stated earlier at the start of the study. However, the implication of this is that marketing strategy contributed 77.7% of
hypotheses drawn were stated statistically using mainly regression the variations in performance of the Nigerian Telecommunication
analysis. Industry. However, 23% of the performance was contributed by other
variables which are outside the scope of this investigation.
A. Hypothesis I:
H1: Marketing strategy has no relationship with the marketing VI. Summary of Research Findings
environment In the foregoing, the data have been presented and analyzed.
The hypotheses have equally been tested and result obtained.
Table 2(a): Regression Model Summary of Marketing Strategy But for the purpose of clarity and easy comprehension, it becomes
and Marketing Environment imperative to recapitulate our key findings here. In a nutshell,
Adjusted Std. Error of the following key results were gotten from the presentation and
Model R R Square analysis of data:
R Square the Estimate
1. From generated results it shows that marketing strategy
1 .779a .606 .598 .610
actually has relationship with the environment. Also, it
Predictors: (Constant), Marketing Strategy could be resolved that marketing strategy helps to increase
profitability in an organization since the statistical analysis
Table 2(b): Result of ANOVAb shows that the result is significant (0.000).
Sum of Mean 2. Globacom limited commit both human and financial resources
Model F Sig. into the formulation of marketing strategies and tactics in
squares df Square
other to cope with the challenges of the market threats it
1 Regression 137.556 5
27.511 .000a experiences from rival companies like MTN, and CELTEL
Residual 89.374 240 73.877
.372 (now AIRTEL). A case in point is the concurrent deployment
Total 226.930 245
of freebies and value added services to subscribers, which
• Predictor: (Constant) Marketing Strategy goes a long way to improve sales, more revenue and customer
• Dependent Variable: Marketing Environment loyalty to the brand.
The first hypothesis was tested with regression analysis to
3. With prompt reaction or prior formulation of marketing Management and Technology, Greater Noida, New Delhi,
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