Abstract
The major purpose of this study was to assess the marketing of agricultural products by small and medium scale enterprises in Orlu senatorial zone of Imo State, Nigeria. The study adopted a descriptive survey research design. Four (4) research questions were answered and four (4) hypotheses were tested at 0.05 level of significance. The population of the study consists of 155 respondents made up of 106 registered marketers and 49 registered farmers. No sample was drawn as the population size was small and manageable. The research instrument was subjected to face validation by three experts. Two from the Department of Vocational Teacher Education, University of Nigeria, Nsukka and one from the Department of Marketing, University of Nigeria, Enugu Campus. The instrument was trial tested on 20 farmers and marketers, Cronbach alpha reliability was used to determine the internal consistency of the instrument and this yielded a reliability coefficient of 0.98. The questionnaire was administered by personal contact and with the help of two research assistants. 145 copies out of the questionnaire administered were used for the study. The data collected were analysed using the mean and standard deviation to answer the research questions while t-test analysis was used to test the hypotheses at 0.05 level of significance. Based on the findings, it was concluded that the right choice of transportation and communication network should be adopted in marketing of agricultural products because it helps to inform and get the products to the final consumers at favourable time, place and terms. Advertising media adopted are very important for marketing of agricultural products as such helped to attract new customers to the market, contributed to economic growth and expansion of job opportunities. On the other hand right use of storage/warehouse facilities helped to preserve and improve the quality of products which led to increase in sales. It was recommended that effective, reliable, durable and accessible storage/warehouse facilities be adopted based on the capital and product. There should be a committee setup to streamline on spending on advertising and what media to use to prevent additional burden on the price paid by consumers on products purchased.
CHAPTER ONE
INTRODUCTION
Background of the Study
Marketing involves a give and take process for the benefits of those concerned and the society at large. Marketing is an exchange process that does not end when the goods and services are exchanged with money but continues after the deal is completed and even before it is thought of at the first instance. Marketing, according to Iyanga (2008), is an integration of activities or variables and not just a single act. These activities includes: information gathering, processing and application of decision making (marketing research), information dissemination (promotion), product planning and development, pricing and product distribution. Any other business entity alone does not make marketing. Marketing therefore, is a total set of activities and not only a subset of a whole (Iyanga, 2008). The author further stated that marketing is a business function, which involves planning, coordination, organization and control of the various resources/variables that make relationship functional.
American Marketing Association (1985) sees marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individuals and organizational objectives. Marketing is also seen as a set of activities designed to discover new ways of satisfying wants and carrying out innovation on the best ways to meet such wants to the satisfaction of the customers and producers (Anyanwu, 2005). For this study, marketing is the process of discovering and translating consumer’s needs and wants into products and services, thereby creating and expanding demand for these products and services. Marketing can involve planning, processing, promotion and distribution of product be it consumer, manufactural, agricultural products. Agricultural marketing on the other hand, according Iyanga, (2008) is the performance of all business activities involved in the flow of agricultural production, until they are in the hands of the consumers. The marketing of agricultural products begins at the farm when the farmer plans his production to meet the needs of consumers/users, continues by producing the products and distributing them to make sure they get to the final consumers (Iyanga, 2008). Some of these agricultural products which are raw materials that appear in their natural form include yam tubers, cassava tubers, palm oil, kernel, cocoa, rice, fruits and vegetables are considered in this study. The distribution of agricultural product embraces various preparations and processing in other to get the product to the potential and targeted customers (Hansen, 2007).
Accordingly, Hansen (2007) identified Planning and buying decision as means of moving agricultural products in the marketing process which is influenced by the information gathered from customers. Hansen also noted that selling is successful when the customer is satisfied with the products he buys, at a given price and in comperism with other services provided. The need for continuity in the chain of marketing activities, that is, products moving towards the ultimate consumers and users, while information flows back to the producer is very important in the marketing process (Hansen, 2007). Nnabuko (2000) noted that majority of agricultural products marketed were as a result of awareness created for consumers to know what is produced, and when, where and how to get these products. The author stated that transportation gives place and time utilities to products by making the products available, as at where and when needed. Nnabuko further noted that Storage or warehousing facilities help with the preservation of these products until they are needed. As a result of these provisions, the needs of consumers are met through the marketing of agricultural products. The attempt to satisfy the needs of the nation gave additional impetus to the growth of small and medium scale business (Osuala, 2004).
Small and medium scale enterprise, according to the Central Bank of Nigeria in Chukwuma (2004), is any business whose annual sales volume and turnover ranged from N250, 000 to N1,000,000 and employs not less than 10 persons. Harris (2006), defined small and medium scale enterprise in terms of turnover and number of staff employed. This is because the definitions and figures for small and medium scale enterprise vary and change as a nation develops. According to Osuala (2004) the third National Development Plan (1978-80) considered small and medium scale enterprises as all manufacturing establishment employing not less than 10 people or whose investment in machinery and equipment does not exceed 60,000.00. Harris (2006) noted that small and medium scale enterprises are the backbone of successful economies. It is also the bedrock of any nation’s industrial take off especially in a typical developing country like Nigeria. This is because small and medium scale enterprises provide more employment per unit of capital invested as they are generally more labour intensive. Small and medium scale enterprises also increase the Gross Domestic Product (GDP) of a nation and will in overall raise the standard of living of all people. For this study Small and Medium Scale Enterprises will be defined as any business that provides employment which leads to the marketing of agricultural product. It is important to note that the main criteria used throughout the world to describe Small and Medium Scale Enterprises include: number of workers employed, sales value, financial-strength, relative size, initial capital outlay, comparative with its past standards, independent ownership and type of industry (Harris, 2006). This according to Harris will help in planning, decision-making on operation of the business, number of staff, kind of business to engage in or products to market etc. This product may be expensive or inexpensive, essential or non-essential to human life and may satisfy individual wants or needs.
A product is anything that is offered for acquisition, use and disposal that satisfies the needs of the target market. According to Kotler (2009), a product is anything that can be offered to the market for attention, acquisition, use or consumption that might satisfy a want or a need. The products include physical objects, services, persons, place, organizations and ideas among others. Products may be classified into Physical and non-physical products or services, durable and non-durable-products, agricultural and manufactured products, consumer and commercial products. In this study, agricultural products are products of industrial and household farms that have not undergone any serious manufacturing processing. Kotler (2009) stated that these products are food crops which are seasonal (annual crops) while their consumption takes place throughout the year. Kotler noted that a farmer who is an individual whose primary job function involved the production of livestock and crops is responsible for its up keep. A farmer takes all the necessary steps to ensure proper nourishment of the items that he/she raises and then sells the items to consumers.
A farmer might own the farm land or might work as a labourer on the land owned by others. In advanced economies, a farmer is usually a farm owner, while employees of the farm are farm workers. A farmer also markets his products to an extent. The marketer on the other hand is wholly responsible for the distribution and sales of these products to the customers when needed (Kotler, 2009). Nnabuko (2008) observed that in marketing of agricultural products the choice of transportation system and communication network between the producers, marketers and consumers, storage/warehouse facilities and advertising media should be considered. Transportation, according to Nnabuko, has to do with the movement of people and agricultural products from point of production to point of consumption in the quantities required, at the time needed and at a reasonable cost. According to Nwankwo (2005), transportation is the movement of goods and passengers from one place, state, country and continent to another. Nwankwo emphasized that there are of course other considerations such as relative cost, efficiency, adequacy and viability that influence the choice of means of transportation used. As a result each type is competing against the others in order to provide a more acceptable service.
According to Staton (2003), transportation gives placed and time utilities to products by making them available where and when needed. He also noted that transportation has affected the mode of life in all parts of the world. It has created an interdependent world where no country nowadays can live apart from the rest. Communication on the other hand deals with the exchange of information, thoughts, facts, opinions or emotions that require presentation and reception resulting in common understanding between parties which if not considered might end up affecting the production process of agricultural products (Owen, 2007). It is important to state that communication occurs whenever an individual assigns significance or meaning to an internal or external stimulus. The stimuli may be messages from a sales person or messages via the communication media about specific products. Burnett, (2004). According to Anyanwu, (2008), communication is the process of conveying a message to others and requires six elements: a source of message, a channel of communication; a receiver, the process of encoding and decoding, and feedback for communication to be effective. Crowther and Lindley (2006) identified how communication helps to promote productivity and stimulate business activities. The authors stated that communication enables producers, marketers and consumers to keep in touch with one another, and connects the various markets of the world through advertisement.
Advertising according to Ezirim (2006) is any paid form of non personal communication about an organization, person, goods services or idea by an identified sponsor through a medium or a combination of media with a view to generating sales. Advertising media on the other hand, makes the dissimilation advertised message to the target audience possible in different states (Smith, 2006). Onah (2009) identified some of the advertising media which can be used in marketing as: broadcast media – radio, television, cinema etc; Print media – newspaper, magazine, journals, catalogs; Outdoor media – bill bards, signs, posters etc. According to Baker (2003) advertising is the process of articulating the commercial messages (advertisements) and making them public through various media (advertise) by an identified sponsor. Ezirim (2006) described advertising as a four-part business which is made up of: Advertisers, who sometimes use advertising agencies, to send their message through the media (generally mass), to potential consumers/industrial users, of the message at least and often of the good or service advertised.
In recent time, the production of agricultural products in Imo State, Nigeria where farmers are concentrated with vast farmlands had contributed greatly in employment generation, and the general economic development of the state. However, despite the aforementioned contributions of this sector to the economic development of the state, it is observed that food production is depleting, as most products perish easily due to delay in distribution to the urban areas, lack of storage facilities etc thereby reducing further production and causing a continuous stay in the vicious cycle of poverty prevailing in the state and society in general.
Statement of Problem
The marketing of agricultural products, by small and medium scale enterprises is fort with problems as these products are sold at unfavourable place, time and terms.
The transportation of agricultural products through various networks (such as: roads, rail, water and air), have contributed to the low volume of sales due to wrong choice of transportation means. Majority of the farmers who reside in the rural areas may lack the means of transporting the products to the urban market for sale at profitable prices. This is because the roads, rail, vehicles, spare parts etc, may not be accessible, reliable, available and affordable. As a result it leads to the distribution of these products to customers at wrong place, time, without right quality and price. The means of transportation used in moving these products most times are prone to theft and damages, high capital/costs, engine failures and delays in distribution of these products.
Recently, it was found that communication network between consumers, marketers and producers affect the marketing of agricultural products. The reasons are said to include lack of communication, low sales, poor quality products which reduces consumer’s consumption motives. This communication gap within the areas of supply keeps on widening to the detriment of the producers, consumers and the economy as a whole. Poor choice of communication network leads to low turnover, poor sales, lack of information (gathering and dissemination) about the product been marketed.
The choices of warehousing facilities (storage) have contributed to low sales volume in marketing of agricultural products. Most farmers may be forced to sell their products or be stucked with their products as a result of lack of appropriate warehousing facilities which result to perishability and loss of goods which also affect production.
The advertising media used at times may be misleading and deceive consumers as a result of how they perceived the message. Poor or wrong choice of advertising media leads to increase in the cost of advertising such products and the prices consumers pay for products and services they consume. This leads to lack of market and seriously hampers the efforts of farmers/marketers in production/marketing process as they are stuck with their products because marketers/consumers have abandoned their products (Owen, 2007).
Purpose of the Study
The major purpose of this study was to assess the marketing of agricultural products by small and medium scale enterprises in Orlu Senatorial Zone of Imo State, Nigeria. Specifically, the study sought to determine:
- the transportation network that could be adopted by small and medium scale enterprises in the marketing of agricultural products in Orlu, Imo state, Nigeria;
- the communication network that could be adopted by small and medium scale enterprises in the marketing of agricultural products in Orlu, Imo State, Nigeria;
- the storage/warehousing facilities that could be adopted by small and medium scale enterprises in the marketing of agricultural products in Orlu, Imo state, Nigeria;
- the advertising media that could be adopted by small and medium scale enterprises in the marketing of agricultural products in Orlu, Imo state, Nigeria.
Significance of the Study
The findings of this study would be of benefit to consumers, researchers, students, farmers or producers, marketing managers and business educators. This would then improve the efficiency of their operations thereby improving the marketing of agricultural products and the nation in general.
The findings the study would help the consumers to be aware of the different types of agricultural products small and medium scale enterprises are marketing in Imo State, where, how, when, and at what prices to get this products when the need for it arises. Consumers will also benefit from the finding of the study through their exposure to various means of transportation and advertising media that gives them lesser cost.
The findings of this study would enable researchers and students to be aware of the importance of marketing of agricultural products. The findings would also serve as an added knowledge to already existing literature and thus propel further research by students and researchers on related problems in other to encourage production processes. The literature to be provided by the findings of the study would assist the researcher in review of literature for their own study. Farmers or producers would benefit from this study as they are exposed to the various storage/warehousing facilities, transportation, means and advertising media that will help them in the distribution of their products to the final consumers when adopted. As a result it leads to high turnover of profits in so doing farmers would also intestify more efforts in production process and encourage marketers/producers gets to their target customers at the right time, place, quality, quantity and at affordable price so as to achieve their objects and goals.
The findings of this study would encourage marketing managers to employ all the available avenues to get their products to the final consumers at the right time, place, quantity/quality and at a bearable cost. Marketing managers would benefit from the findings of this study as it would educate them on how to adopt the best transportation means, advertising media and storage facilities that would not affect the cost and quality of their products. In so doing marketing managers would benefit through profit maximization, increased in sales volume, sustained target customers and business as a whole and so achieve the goals of the organization.
Furthermore, the study would be of immense benefit to business educators because knowledge gained from the findings of the study on the different means of communication, transportation, advertising media and storage/warehousing facilities will help to improve the curriculum for courses in marketing. In addition, knowledge of the findings would likely enlighten and improve business educator’s understanding and teaching of marketing and also encourage them to write more books on marketing.
Research Questions
The following research questions guided the study:
1) what are the transportation network systems that could be adopted by small and medium scale enterprises in marketing of agricultural products in Orlu, Imo State?
2) what are the communication network that could be adopted by small and medium scale enterprises in marketing of agricultural products in Orlu, Imo State, Nigeria?
3) what are the storage/warehousing facilities that could be adopted by small and medium scale enterprises in marketing of agricultural products in Orlu, Imo State, Nigeria?
4) what are the advertising media that could be adopted by small and medium scale enterprises in marketing of agricultural products in Orlu,Imo State, Nigeria?
Hypotheses
The following null hypotheses were tested at 0.05 level of significance:
H01: There is no significant difference in the mean responses of farmers and marketers on the transportation network that could be adopted by small and medium scale enterprises in the marketing of agricultural products in Orlu, Imo State, Nigeria.
H02: There is no significant difference in the mean responses of farmers and marketers on the communication network system that could be adopted by small and medium scale enterprises in marketing of agricultural products in Orlu, Imo State, Nigeria.
H03: There is no significant difference in the mean responses of farmers and marketers on the storage/warehousing facilities that could be adopted by small and medium scale enterprises in the marketing of agricultural products in Orlu, Imo State, Nigeria.
H04: There is no significant difference in the mean responses of farmers and marketers on the advertising media that could be adopted by small and medium scale enterprises in the marketing of agricultural products in Orlu,Imo State, Nigeria.
Scope of the Study
This study was delimited to the marketing of agricultural products by small and medium scale enterprises in Orlu senatorial zone in Imo State, Nigeria with particular reference to Orlu Senatorial Zone which is one of the three senatorial zones (Owerri, Okigwe, Orlu) in Imo State. The study is specifically focused on registered farmers and marketing officer of SMEs. The study will specifically determine the transportation network, communication network, storage/warehousing facilities and advertising media that could be adopted by Small and Medium Enterprises (SMEs) in the marketing of agricultural products in Orlu senatorial zone in Imo State, Nigeria.
