BUAD requiring different job performances by a staff.

BUAD 807: Fundamentals of Marketing Reg.

No: DP17MBA0967Production is defined as the creation of utility or the creation of goods and service which gives satisfaction to the consumer. Production also entails the processing of finished goods from raw materials and distributed to consumers for satisfaction of their wants. The production process involves both material and immaterial inputs resulting in output in form of finished goods. Production is grouped into two major parts namely direct and indirect production. In direct production the entity has the capacity to deliver all required materials for production using her internal skills set without focusing on a single product or requiring different job performances by a staff. While indirect production is divided into primary production, secondary production and tertiary production synonymous to gathering of raw materials and the conversion into finished goods; finally distribution to the market. The production process creates economic well-being in the form of economic activities which satisfy human needs directly or indirectly.

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Economic wellbeing can be measured to the extent which a good satisfies a consumer. Two features which explain economic well-being are improved quality- price –ratio of the product and revenue from growth and timely market production. A major premise in the production process is that it is not complete till it gets to the final consumer. Products are produced by the production department, while the marketers make products available to the final consumers (distribution channels).

It is one thing to produce a good and it is another thing to get these goods to the final consumer. Production is not complete till the goods reach the final consumer. For this the producer engages the service of middlemen to get the goods to the final customer. The middleman ensures the availability of the goods as at when needed. The middlemen ensure the goods are available at the right time, place, form and price. The middlemen in their bid to ensure availability of these goods have encountered many problems including: Spatial or geographical gap caused by the distance from producer to the buyer. There is market information gap; consumers are ignorant of available commodities and markets to purchase from and the consumers lack conviction as to why they must buy these products. Also there exist time separation gap due to the timing of when the producer, manufactures a product and the timing for consumption of such goods, resulting in artificial scarcity.

For the production process to be complete these entire lags must be bridged. For example many producers in Nigeria do not sell products directly to the final consumer, here the consumers perform different task. According to Busch and Houston scholars of the gap theory, marketing must not exist until the social economy attains a height where producers of an economic good are not the consumers. This creates a situation of separation gap. Furthermore Anyanwu in 2006 stated that for this gap to be bridged there should be intermediaries like retailers, wholesalers, commissioned and noncommissioned agents, merchant middlemen and agent middlemen. These intermediaries buy form the producers and make the goods available to the final consumer.

These marketing intermediaries are indispensable in the distribution of consumer goods. Nevertheless, why market intermediaries? Why is the distribution of commodities given to the middlemen? Why does the producer not sell directly to the consumer? This is because it creates the ability or control of intermediaries to decide on how and to whom to sell the products. According to Kotler in 1998, the use of middlemen results in greater efficiency in providing these goods to the market, though not without a price considering the contacts, experience, specialty and scale of operation of these intermediarries since consumers cannot achieve this on their own.

BUAD is king surpasses positive customer service.

BUAD 807: Fundamentals of Marketing Reg. No: DP17MBA0967 The mantra “customer is king” is an old adage signifying the importance of the potential customer and existing customers in business. Provision of good customer service from the company to customers persist, however due to the advancement in technology and current business settings, customer is king surpasses positive customer service.At present the firm has to give the best since customer’s desire the best value for money.

Before thought of treating the customer well, the idea of value is very precious to the customer patronizing a business. When developing products and services the customer must always be put in mind.The best must be given to the customer as the main ideology of the mantra still persist wherein a customer should never be offended because this will amount to losses in the business. It is even worst today as customers possess more powers thanks to the social media.The customer desires not to be told what to do, as a king does not take orders but rather gives orders.

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This is the reason why the customers endear royal treatment in a king servant manner when there exist active demand for a commodity or service from a particular enterprise. This encourages more customers to a franchise. Customers will not buy goods because you ask them to, so marketers should be wary of aggressively trying to persuade a customer to buy into a specific product.Things should be made easy for sake of efficiency desired by the average customer.

Hence the marketer can ensure ease of transaction by bringing the product or service as close to the customer as possible in other to save the customer the hassle and bustle, saving customers time, money and strength.Customers should be carried along and if possible let them call the shots. This is not to let them run the business, but instead customers should be allowed to dictate their wants and needs via letting them participate in the development of a new or existing product.No matter the industry or business practice marketers find themselves in, the customers will be the most valuable stakeholders. The better they are treated the better for the business.

So the relationship with customers in the marketer’s sight should relate to a long term relationship sustainable and must not be viewed as only transactional.According to Cockerell and Curtin in 2013 and even Mitchell in 2003 customers should be satisfied, even be hugged, though different outcomes may occur, often most companies follow such recommendations when loyal customers are wanted Nevertheless some scholars argue that the customer focus is rather shallow because of the modern business world. Indeed customers are needed and should be well taken care of and satisfied. Yet for exchanges the customer is not only important party to be cajoled successfully. Rather the sales force and service personnel also must be considered as they influence a host of relationships. In addition to customers the internal business team and external business partners determine sales performance.

It has been discovered that non-customer groups forecasted the faults in performance than did the customers perceived influence. Alternatively not only the customers are significant, but also the internal business team and the external business partners tended to be more important than the customers. Managers are aware that the other group members are as important as customers in closing business deals. There exists idealistic customer centric marketing ideology and free market doctrine which are all customer oriented.

This portrays marketing as striving to understand the customer and creating more customer value, still such perceptions are blatantly incomplete as customers and shareholders interest overlap at certain levels. These conflicting interests never perfectly coincide within the bounds of law, when shareholders’ interests are usually favored.


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