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APPRAISING THE PLACE OF FAMILY IN THE MARKETING OF FMCG IN ABEOKUTA

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

A family is a group of two or more persons related by blood, marriage, or adoption who reside together. There are two main types of family nuclear and extended family. The nuclear family is the immediate group of father, mother, and children living together. The extended family includes the nuclear family, plus other relatives, such as grandparents, cousins, and in-laws. The family into which one is born is called the family of orientation, whereas the one established by marriage is the family of procreation (Walker,1994).

Thill (2002)the concept of family as they influence consumers’ behavior, with the exception of those very few people who are classified as hermits, most individuals interact with other people on daily basis, especially with members of their own families. The family commonly provides the opportunity for product exposure and trial and imparts consumption values to its members. As a major consumption group, the family is also a prime target for many product and services.

The place of family in marketing can never be neglected by marketer because of their large quantity purchase, and they can also be categorized as a mini organisation which their patronage has effect on market (Madiba, 2015).Family decision making is the process by which decisions that directly or indirectly involve two or more family members are made. Decision making by a group such as a family differs in many ways from decisions made by an individual. Family purchases are often compared to organizational buying decision (Mazzarotto 2001) 

While this can produce useful insights, it fails to capture the essence of family decision making. Organizations have relatively objective criteria such as profit maximization that guide purchases. Families lack such explicit, overarching goals.

Most importantly, many family purchases are inherently emotional and affect the relationships between the family members. The process families use to make purchase decisions and the outcomes of those process have important impacts on the well-being of the individual family members and the family itself. Thus, while family decision making has some things in common with organizational decision making, it is not the same (Dobson, 2001)

Pharmaceutical sector is characterized by products having low unit value and requiring frequent purchases and consumer behavior reflecting less loyalty, impulse buying, and low involvement on the part of a consumer (Kotler, 2003). It constitutes a large part of consumers’ budget in all countries. Retail trade in these products, that is, their supply to households, has attracted considerable interest from consumers and policy-makers because a well-functioning retail sector is essential for daily provision of these essential products at high quality and low cost.

STATEMENT OF PROBLEM

The place of family in the marketing of Pharmaceuticals products is fascinating and challenging at the same time. It offers large scope on account of its sheer size. And, it is growing steadily. Even a modest growth pushes up the sales of a product substantially, in view of the huge base. It is attractive from yet another angle. Whereas the urban market is highly competitive, the rural market is relatively quiet. In fact, for certain products, it is totally virgin market.

In order to remain in business, an organization must generate sales from its product to cover operation cost and post reasonable profits. For many organization, sale estimate is the starting point in budgeting and profit. However, taking decision on sales is the most difficult task facing business executives. This is because its difficult to predict, estimate or determine with accuracy, potential customers demand as they are uncontrollable factors external to an organization.

Considering the importance of sale on business survival and the connection between customer and sales, it is advisable for organization to engage in programs that can influence customers decision to purchase its products, this is where sale promotion and brand management are relevant. Some organization fails to be innovative and as such lag behind in the art and science of wooing customers from competitors, through the medium of advertisement. Failure of manufacturing companies to give adequate attention to customers needs has installed mistrust in the hearts of the populace over the years.

In other words the effectiveness of communication cannot be overemphasized when considering factors that project cordial relationship between organization and their potential customers. For organization to succeed in this competitive environment there is the need to manage the marketing communication system for

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