The private marketing companies could not cope with the increased domestic demand for products and this resulted in severe shortage of petroleum products all over the country. This also constituted a major drawback to the development of the country. This situation prompted government intervention, which manifested in the construction of extensive pipeline network, massive oil depots storage depots and active participation in transportation and distribution of petroleum products effectively.
Some of these companies have changed name, merged and increased number of retail outlets presently. Presently, about three hundred and seventy independent oil marketers are involved in the marketing of petroleum products alongside with the big eight 8.
Numerous definitions of marketing have been suggested by a number of authorities, companies, institutes and scholars. In some cases, the emphasis has been on either the activities of marketing or the concept applied. In practice, it is clear that the two are interdependent, therefore where the concept is understood, the activities follow a natural sequence, but where the concept is not understood, then the activities may be misdirected and ineffective.
Hughes defined marketing as these activities that relate an organization successfully with its environment. The main activities are the identification of unfulfilled needs, the development of products and services to meet these needs, pricing the distribution of goods to the market place and the communication of the ability of these products and services to meet needs. Mentzer and Schwarts This definition will be viewed from three perspectives. Firstly marketing is a managerial process, it takes a systematized step-by-step method to find, identify need and wants of individuals, this by implication involves a research process.
Following the acquisition, marketing is directed at facilitating and consummating exchange. Exchange can cover both the pursuit of profit transactions and exchange relationships.
While transaction refers to a short exchange with no implications of a more durable relationship sought. Exchange relationship refers to the establishment of a continuous relationship of exchange. Finally, the definition deliberately avoid specifying what products are being exchanged for. Traditionally, the subject of exchange has been goods and services for money.
Essentially, things of value are being exchanged. In order for the definition of marketing to be made more contemporarily relevant, it should be wide enough to cover various things of value that might be exchanged, among which are; goods, services, money attention, devotion, energy and time to mention a few. Plato opined that petroleum products marketing is that part of management activity which seeks to direct the flow of petroleum products profitably to selected customers.
He went further to say that marketing approach adopted in the petroleum industry involve basically four 4 steps viz:. Bell and Emory pointed out that marketing concept has three basic elements thus: Integrated operation considers the entire business as a tool of operation system with the consumer and social problems taking precedence over operational considerations in all functional areas.
Kotler states that marketing concept is a consumer orientation backed by integrated marketing aimed at generating market consumer satisfaction as the key to satisfying organization goals. The history of marketing shows a strong movement away from the simple concept of selling towards one of programmatic planning of product, pricing, promotion and distribution to responsively serve the interest of target customers and society as a whole.
Rachman sees marketing mix as a term used to describe the blend of decision about product, price, promotion and place. It must be said that decision acts on each other while they are being mixed together. Example, a decision on product quality will affect the decision on the pricing of the product. It is this product that every producer tries to conceptualize into what the customers desire, so as to satisfy their needs.
This means that in determination of what products should be offered, such factors as product quality, safety features, packaging, labeling, brand names, etc, should be considered.
This is called product concept. Kotler in discussing marketing management philosophies, identified the product concept as a management orientation that assumes that consumers will favour those products that offer the most quality at the ruling price and therefore the organization should devote its energy towards improving products quality.
Petroleum products are used in various way e. The above therefore shows that, the satisfaction derived from using these petroleum products emanates efficiency envisaged from the respective uses they are put into. Roseberge looks at the total product as having a three dimensional chrematistics viz: Roseberge sees the explicit characteristics from the managerial perspective, which relates to such aspects as brand, packaging related services, core specification and product life cycle.
From the consumer point of view, implicit characteristics relate to what the product symbolizes, what it communicates, how the consumer perceives it, its usefulness and the satisfaction derived. External characteristics are akin to such questions as whether the product has an adverse effect on the user and the society as a whole and the resources raw materials used for its production as they affect the society.
Distribution is another aspect of the marketing mix designed to get the product to the reach of the ultimate consumers. Nwokoye defined a distribution channel as the combination of the institutions through which a seller markets his products to the ultimate buyer. Elvy sees the choice of distribution method adopted by any industry as dependent upon many factors and feels that marketing managers should weigh their products properly before deciding on which distribution policy to adopt.
In this case, several factors are to be considered before adopting at particular distribution pattern. The distribution pattern adopted in marketing petroleum products should not expose them to any chemical reaction, as they are high inflammable.
Also the storage system should be mainly underground. The scope of the market for petroleum products is large and geographically dispersed. The purchase of petroleum products is seen in terms of the various oil companies, independent marketers and other oil dealers that are involve in the distribution of petroleum products across the country.
NNPC has no sales force in the distribution of petroleum products in Nigeria, but at present , they have floated a number of NNPC mega stations, the administration of Engr. Since petroleum marketers enjoy oligopoly, there is no need for much promotion, except for precautionary measures by the users of petroleum products and very small promotion by oil companies and independent marketers to enhance their competitive position in terms of their branch name.
Petroleum products enjoy uniform price system across the country; subsidy is however granted to the oil marketing companies to compensate for the variations in their cost of operation. Also NNPC enjoys a sound financial backing from the federal government, since it is a federal corporation, while other oil companies source for finance themselves. Corey identifies distribution system, as a key external resource that took years to build and it is not easily changed.
The construction of oil pipelines that link various depots in the country is a case at hand to prove this point. These pipelines supply petroleum products to various states and depots from the refineries, across the country.
He further said that distribution represents a significant corporate commitment to a large number of independent companies whose business is distribution and to the particular market they serve. The independent companies in the distribution of petroleum products are the oil companies and dealers who help in the distribution of products from various zonal depots to all localities of the nation to the reach and satisfaction of consumer needs. This set of marketing intermediaries he called — the marketing channels.
Eh reiterated that a channel of distribution should be considered to comprise a set of institution, which performs all the activities needed to move a product from the point of production to consumption.
In the preceding chapter, a literature review was written to highlight the prominence of basic concepts associated with the topic, which will also guide the study. This chapter is therefore designed to present the methods used in this research work. To facilitate better understanding of the methods, the study was further sub-divided into the following headlines: Research design is a framework or structure used as a guide in data collection and analysis for a study.
This research is descriptive in nature, as it attempts to explain the various parameters used in measuring the problems associated with marketing petroleum products in Nigeria, particularly Rivers State PPMC and other independent markets. Population for this study consisted of all petroleum products marketing firms in Port Harcourt metropolis. Owing to the numerous number of service stations in Port Harcourt, we therefore limit our population for this study to only fifty Sample of this study consisted of ten 10 independent marketing companies of petroleum products in Port Harcourt metropolis together with PPMC.
Simple random sampling technique was used to select ten 10 out of the many petroleum-marketing firms in Port Harcourt. Findings abound in this research work, which were brought to bear from responses got from questionnaires distributed and retrieved.
Important among many of the findings, will be summarized below, most of which had been analyzed in the preceding chapter chapter 4. Foremost among other findings, is the problem of transportation.
Costs occasioned by deteriorating, and poor road networking, coupled with high fuel prices itself contributes to the problems associated with distribution. Thus, in spite of the uniform pricing stipulated by government, there abound cases of variations in pump prices, which compounds the problem distribution.
Analysis on this factor points to the truth that most service stations do not have storage facilities with capacities that could service the need of consumer for a considerable length of time. Thus they run-out of stock intermittently, causing untold hardship to consumers and general public due to irregular supply. Depots are not evenly and strategically located in most parts of the country; this constitutes logistics problems faced by distributors who would have to travel distances to get products from depots.
Locations of filling service stations are not sited conveniently to the consumers reach, and the few in operation are not adequate to meet the increasing need of the growing populace.
Since location is not one of the pre-requisite to become a dealer, rights of operation are granted to dealers, irrespective of where and how the station is located. Productivity, also poses a problem; given the three refineries located at Port Harcourt, Warri and Kaduna respectively; demand still exceeds supply, such that crude is being exported to be refined outside the country, and so the cost of freight and refining outside the country, leads to increased pricing which impacts negatively on the economy; this is occasioned by the dilapidated standard of the refineries, whose refining capacities per day cannot cater for the increasing need of the consumers in the country.
In this study, examination was made of the problems encountered by marketers of petroleum products in Nigeria using Port Harcourt as a case study. The result of this study among other things, indicate that; the existing channels of distribution needs to be effectively managed and controlled to ensure proper distribution to the reach of consumers. Product differentiation should be in the form of service added to petroleum products consumers.
In addition, depots should be established in more states of the federation. To forestall any impromptu shortage of petroleum products resulting from the routine turnaround maintenance exercise of the refineries, NNPC should embark on establishment of service stations, which will aid direct distribution, thus enhancing free flow of products to final consumers at a stipulated price. Activities of oil marketing firms and independent marketers should be closely monitored, with respect to efficient flow of petroleum products in the country, additionally, responsibility for safe and efficient operation and maintenance of the depots nation wide should be ensured, by the constituted authority.
As oligopolist market, the PPMC does not embark much on promotion. Little promotion is done by individual oil marketing firms to attract brand loyalist. NNPC and particularly P. Finally, the ever-increasing petroleum pump price should be regularized, to encourage stability of the Nigerian currency and economy in general. This to a large degree, will encourage investors into the country and ameliorate the problems of petroleum distribution in the country, thus improving the living standards of the Nigerian populace.
Based on the findings of this study and conclusions drawn from it, the following recommendations are made to curb the problems of marketing petroleum products in Nigeria. This is necessary to regulate the activities of illegal petroleum dealers. The penalties should be enforced to the latter so as to deter illegal and nefarious activities. This create cordial and letter relationship between government and dealers. Aside these, loans and subsidy should be granted to independent marketers to aid their expansion.
Name of establishment ————————————————-. Others specify ———————————————————- 5. Who is your supplier? If answer to Q. What channel of distribution does your firm adopt in ensuring availability of petroleum products? Give recommendations towards effective marketing of petroleum products in Nigeria. Understanding Refining and Petrochemicals Operation Vol. The Environment of Marketing Management. Dryden Press Illinois, New Jersey. Addison Wesley Publishing Co.
Analysis, Planning and Control. Eaglewood Cliffs, New Jersey. Marketing Proudcts and Policies. Integration and Competition in the Petroleum Industry. Mitchell and Hwegy C. Modern Marketing for Distribution Channels. Management in Marketing Channel. McGraw Hill Book Co. Marketing for Business Growth. Petroleum and the Nigerian Economy. These are the guiding factors and so, they play a major role in spelling out the scope of marketing research.
Depending on the objectives, the research can either be shallow or detailed. If more detailed data is needed, then the scope of marketing research is higher and vice versa. This factor is also responsible for the determination of other factors like the methodology of the research and the nature of the research.
Also, if the objectives for the research are complex, it will require the stakes for the research to also be higher. The nature of the research dictates the methodology which then impacts on the scope of marketing research. For example, some marketing researches will require the application of a research methodology that is long term and complex. For example, a market research to establish the effect of a certain cereal in the market requires a long term study.
It involves the release of the seeds into the market, observation when the farmers plant it and then the effect of the cereals to the market after harvest. The scope of this marketing research is higher as it will also require the installation of control experiments. The scope of marketing research is also determined by those who are doing it. For example, if the field research staff is well trained, carefully selected and tested to ascertain their research skills, then it is more likely that the scope of the research will be high.
This is because they are more likely to collect the data from the field in the right manner and with the least error if any. This way data is collected from the primary sources. Otherwise, the scope of marketing research will be low as the field personnel will rely on secondary materials for the data.
Marketing Research: Nature and scope of Marketing Research! Nature and Scope of Marketing Research, Marketing Research as an aid to Marketing decision making, Research Designs, Exploratory Descriptive and Conclusive Marketing Research is defined as the systematic design, collection, analysis and.
The nature of the research dictates the methodology which then impacts on the scope of marketing research. For example, some marketing researches will require the application of a research methodology that is long term and complex.
Marketing Research is systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages. Marketing Research: The marketing research is helpful in analyzing the customer’s behavior, popularity of product, effectiveness of advertising, pricing policy, etc. In other words, it is the systematic gathering, recording and analyzing of data about problems relating to the marketing .