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;
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.
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.
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:
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 - 5 of 96 Reviews |