Marketing research is the systematic design, collection, analysis
and reporting of data and findings relevant to a specific marketing situation
facing the company. (Koller P 2003).
This study focused on marketing research as a tool for
profitability in the service industry, a case study of AIICO insurance company
operation in Enugu metropolis.
In order to carryout the study, the following objectives amongst
others were states;
- To ascertain the proportion of marketing bodget
allocated to the marketing research activities in a given period in AIICO
Insurance Company.
- To ascertain, if the marketing research
activities increase the number of policy holders in AIICO insurance company.
- To ascertain whether marketing research
contributes to increase in profit in AIICO insurance company.
- To ascertain whether marketing research creates
awareness of AIICO insurance company and its services.
Based on the stated objectives, three hypotheses were formulated,
they are:-
Ho: Marketing research does not create awareness of AIICO
insurance company.
HI1 Marketing
research creates awareness of AIICO insurance company.
Ho2 marketing
research does not increases the number of policy holders
HI2 Marketing
research increases the number of policy holders
Ho3 Marketing
research does not increase profit of AIICO Insurance Company.
HI3 Marketing
research increase profit of AIICO insurance company.
Extensive literature review of textbooks, newspapers, magazines
business journals and some past projects of graduated students who studied
related topic of the study was carried out to source secondary data. Primary
data were source from respondents comprising policy holders, management and
relevant staff of AIICO insurance company in Enugu.
The sample size was determined using Topman’s formular for the
policy holders of AIICO Insurance company while a census was conducted for
management and relevant staff of AIICO insurance company in Enugu.
The researcher used chi-square (x2)
statistical method to test the hypotheses which were earlier formulated for the
study. The data collected were presented on statistical tables using frequencies
and percentages for analysis.
In the process of the study, the following finding were revealed.
- That AIICO insurance company at one time or the
other engaged in marketing research activities.
- That the company has a marketing research
department at the headquarters only but not at the zonal offices.
- That marketing research activities
increase the number of policy holders.
- That marketing research activities increase the
profit level of the company.
In view of the releasing findings, recommendations on how to apply
marketing research for the success of the company were offered.
In conclusion, the ultimate aim of using marketing research is
geared towards customers satisfaction at a profit to the company, so AIICO
Insurance Company is advised to continue putting marketing research into
effective use.
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Formulation of hypotheses
1.5 Significance of the study
1.6 Scope of the study
1.7 Definition of terms
2.0 Literature review
2.1 What is marketing research?
2.2 Scope of marketing research
2.3 The place of marketing research in marketing
2.4 Marketing research problem facing Nigerian
manufacturer
2.5 The future of marketing research in Nigeria
2.6 Role of marketing research in the service
industry
2.7 Role of marketing research in the profitability
of AIICO insurance company.
3.0 Research methodology
3.1 Sources of data
3.2 Population of the study
3.3 Sample size determination
3.4 Sampling technique
3.5 Research instruments used
3.6 Method of data treatment and analysis
3.7 Limitations of the study
4.0 Data presentation and analysis
4.1 Test of hypotheses
5.0 Summary of findings recommendations
and conclusion
5.1 Summary of findings
5.2 Recommendations
5.3 Conclusion
Bibliography
1.0 INTRODUCTION
1.1 BACKGROUND OF THE
STUDY
Organizations uses many types of resources to function. One of the
most valuable, often the least understood, is their knowledge base. Management
is unable to take formed decisions without knowledge and the quality of that
organization knowledge, skills, resides primarily in employees but can also be
collected in data bases, reports patents, plans, budgets, memoranda and a
variety of other documents. The knowledge base covers all aspects of the
organizations activities products, technology, human resources, finance, sales
and marketing and is a wasting asset requiring constant dating, improvement and
extension to keep abreast with changes in the operational environment.
Nowhere is the need for detailed, accurate and up to date
knowledge more evident than in the marketing function. The markets have two
characteristics, which distinguished them from the other environments in which
companies operate. They are:
1. In variable dynamic and are tending to become
more so in response to increasing pace of technical development, competitive
pressure and a continual uplift n customers’ expectations.
2. Change is caused by a wide diversity of factors
most of which are beyond the control of any single supplier.
Marketing therefore operate in an inherently unstable
environment and it is all too easy for companies to lose touch with conditions
in the market they service.
Furthermore, in the quest for growth or even to defend existing
market positions, the problem tends to be exacerbated by the fact that
companies continually need to do something new. They develop new strategies
launch new product, target new market and initiate new service packages – all
of which push them into increasingly unfamiliar marketing territory.
Marketing knowledge is created from a number of inputs experience
and expertise are critical, as are experimentation and analysis, but the key
dynamic ingredient marketing information derived from sources within the market
place itself, notably customers, competitors and distributors.
Marketing research is the marketing information. It is defined by
the American marketing association as the systematic gathering, recording and
analyzing of about problems relating to marketing of goods and services.
Marketing research can also be defined Kolter (20003:129) as the systematic
design, collection, analysis and reporting of data and findings relevant to a
specific marketing situation facing the company.
Marketing research is very important to any organization or
company because it is through it that we know the feelings, wants, needs,
perceptions and preference of customers/consumers knowing that
consumer/customer is the focal point of marketing and every organization or
company will always want to satisfy their customers/clients in other to
continue in the business. It is a link between the customer and the general
public to the individual, organization of the business firm and also identify
and define marketing opportunities, trends, threats and measurements.
Therefore, this study try to find out how marketing research is
carried out in the service industry – people always believe that marketing
research is more suitable in product/goods offering company and it is not well
practice in the service industry due to its certain characteristics.
Service can be defined as any act or performance that one party
can offer to another that is essentially intangible and does not result in the
ownership anything. (Kotter 2003) services have four major characteristics that
greatly affect the design of marketing programs: intangibility, inseparability,
variability and perishability. Services also vary as to whether they are equipment
based or people based. It requires the client’s presence and differs as to
whether they meet a personal need or business need. Services provided differ in
their objectives (i.e. profit or non profit) and ownership (as to private or
public).
These have made people believe that marketing research in the
service industry – insurance company, has resulted from the growth of marketing
management and marketing concept. The basic purpose of applying marketing
research is to reduce marketing management risks and consequently embrace
higher marketing efficiency. Marketing research is also used in situation of
disagreement or uncertainty amongst the marketing decision or where the
available marketing research techniques will increase the amount or reliability
of marketing information decision in service industry.
There are certain factors in service industry especially in
insurance companies that affect the profitability of the firm such as the
impact of legislation and tax concession, size and distribution of population,
national income, competition, inflation, use f mass merchandising, packaging
policy approach etc it is through marketing research that these problems will
be solved and thus bring profit to the company. The success of any business
firm depends to a great extent on the efficiency and aggressiveness of the
entire marketing organization operations, and the effectiveness of the
management, working together as a team, towards the accomplishment of the
specific and broad corporate goals and objectives.
AIICO insurance company a service industry was established in 1963
as a collection centre, and incorporated in 1970, converted to a public
liability company in 1989 and was listed on the Nigeria stock exchange with
effect from 3rd December, 1990.
To date, AIICO has become the highest life insurance in Nigeria and a major
underwriter for general insurance business. The company’s success has been the
result of its ability to evaluate its potential set realistic goals and take
necessary action to achieve them. They have a separate marketing department and
a research department that undertake the marketing research work. These
activities have to a large extent influenced the overall performance of AIICO
insurance company Nigeria.
1.2 STATEMENT OF THE
PROBLEM
Despite the large market potentials in service industry and its
competitive nature in Enugu State, many companies and business still find it
difficult to develop an appropriate offering that will serve the market
satisfactorily.
ALLCO insurance company faced very stiff opposition from other
insurance companies especially other foreign owned insurance brokers and agents
at its on set due to fear of the uncertain effects that its entry into the
industry might cast on their business prospects, thus were reluctant to assist
the company.
Also, the level of insurance awareness in the country is still
very low, at present about 10-15 percent of the Nigerian population are
insured, unlike developed countries this resulting in low productivity and
profitability.
Consequently, there have been allegation of AIICO insurance
company not compensating the unfortunate policy holders, all these have
resulted in negative attitude towards their services, thus have resulted to
loss in profit. This research takes an in-depth look at this allegation and
other pro problems in other to proffer an amenable attitude towards AIICO
insurance company.
1.3 OBJECTIVE OF THE
STUDY
The objectives of this study are to ascertain,
1. What type of marketing research activities are
available to companies especially those activities that AIICO insurance company
is interested in conducting?
2. What proportion of marketing budget is allocated
to the marketing activities in a given period in AIICO insurance company?
3. Whether the company has its own established
marketing research department or if they hire the services of marketing
research consultants.
4. The source of their marketing data and the
method used in analysis such data from which information is derived.
5. Whether marketing research creates awareness in
AIICO insurance company.
6. If marketing research increases the policy
holders in AIICO insurance company
7. Whether marketing research contributes to
increase profit in AIICO insurance company.
1.4 FORMULATION OF
HYPOTHESES
The following hypotheses were formulated and tested.
Ho: Marketing research does not create awareness
of AIICO insurance company
HI: Marketing research creates awareness
of AIICO Insurance Company.
Ho2:
Marketing research does not increase the number of policy holders.
HI2:
Marketing research increases the number of policy holders.
Ho3:
Marketing research does not increase profit of AIICO Insurance Company.
HI3:
Marketing research increases profit of AIICO Insurance Company.
1.5 SIGNIFICANCE OF THE
STUDY
Olakunori (1997:20) defined marketing research as the planned and
systematic investigation and collection of relevant facts, the analysis and
interpretation of those facts through objective and verifiable methods, for the
purpose of arriving at solution of problems or deducing broad principles or
laws”. Putting it another way, the research is a planned process of conducting
investigations in other to achieve a determined objectives.
The objective is usually a solution to one or more problem or an
addition to current knowledge in particular field. It is against this
background that the researcher believes that the study f this nature is
necessary. The outcome of this study will provide an adequate understanding on
the application of then various marketing research to service business/industry.
Also this research work will help to ensure an improvement in the
quality of service rendered to customers and the public by AIICO insurance
company and could as well help the management design strategies and programmes which
will enable them to remain competitive.
The research work also helps other service firms to understand
more correctly the basic principles of marketing research and its place in the
service business/industry so as to influence future marketing operations.
Finally, the researcher will benefit immensely in this study
because he will learn a lot through the stages of study by passing through all
the critical and difficult tasks required in gathering necessary information
and the subsequent analysis, interpretation and presentation of the research
findings.
1.6 THE SCOPE OF THE
STUDY
The study takes a look into the marketing research
activities of insurance firms in service industry. Because of time and other
factors involved, the researcher was limited to the study of particular
insurance firm known as AIICO insurance company operating at Enugu metropolis.
It examines the conduct/operations of marketing research activities in the
industry.
1.7 DEFINITION OF TERMS
Marketing: this is the process of planing and executing the
conception, pricing, promotion, and distribution of ideas, goods and services
to create exchanges that satisfy individual and organizational goals. Peter D.
Bennett (1988).
Service Marketing: The marketing process involving organization
that buy in other to provide services or these marketing activities or
processes which involve the provision of services to customers through exchange
process. Hart N.A and Stapleton, J (1986)
Services: they are activities or benefits that one party can offer
to another that is intangible and does not result in the ownership of anything.
Kotter P. (2003).
Insurance: This is one of the social sciences designed essentially
for taking risk and risk taking involves uncertainty of loss. Benaeth C. (1980)
Insurance: This is the party who agrees in turn for a premium to
pay money to another party known as the insured or the assured on the happening
of a stated event. Benneth C. (1980).
Insured: is the other patty to the insurance contract who is
entitled to be indemnified or compensated in monetary turns on the happening of
event or contingency insured against. Brandmaire M. (1986).
Policy: is the written or typewritten document which evidence the
terms of insurance contract between the parties. Itukwu, J.O (1988).
Premium: This is the financial consideration a paid by the insured
to the insurer in return for the promise of the insurer. Itukwu J.O. (1988)
Insurance Market: Refers to all the facilities available for the
placing of insurer and the different kinds of professional risk beers (insures)
available. (Ayankoyi R. (1988).
Marketing Research: The systematic and objective design,
collection, presentation, analysis and interpretation of data (information) to
enable managers deal with specific problems facing any organization. Adirika,
E.O. (1996:332).
Market research: is the process of making investigation into the
characteristics of a given market Baker. J. Michael (1991).
Marketing services: is the term sometimes used to cover all
marketing activities in a company other than the sales function of marketing
research, advertising etc. Hart, N.A. and Stapleton J. (1986).
Marketing function:- This is all embracing term overing every
contributory factor in the process or consideration to be the responsibility of
marketing management. Hart N.A. and Stapleton (1986).
Marketing information: the data and news relevant to marketing
operations. Ifezue A.N. (1990).
Department | Marketing |
Project ID Code | MKT0076 |
Chapters | 5 Chapters |
No of Pages | 113 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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