Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Abstract

Channel Strategy and Marketing Performance of Selected Consumer Goods Firms in Lagos State, Nigeria

Author(s): Adefulu Adesoga D., Adeniran James A.

Channel strategy is usually aimed at enhancing the effectiveness and efficiency of marketing activities with respect to product distribution and building loyal and profitable customer base. However, the prevalence of factors such as culture, language, insecurity, lack of good transportation system, inadequate infrastructural facilities, government policies have consistently hindered consumer goods firms in Nigeria from effectively implementing channel strategies which probably have resulted in poor performance over time like low market coverage and inadequate product availability when and where needed. Therefore, the study evaluated the way channel strategy influenced marketing performance of selected consumer goods firms in Lagos State, Nigeria. The study adopted survey research design. The population of the study was 592 staff in the sales and marketing department of the selected consumer goods firms in Lagos State, Nigeria. The selected firms control more than 70% of the market share for consumer goods in Lagos State and are actively involved in implementation of channel strategies. A structured questionnaire with close-ended questions was used as research instrument. Five hundred and ninety-two copies of the questionnaire were administered to respondents. Data were analysed using descriptive and inferential (simple and multiple linear regression analyses) statistics. Findings revealed that channel strategy had a significant influence on marketing performance of selected consumer goods firms in Lagos State, Nigeria (β=0.335, t (503)=7.594, R 2=0.465, p<0.05). Significant positive relationships were also found between some of the channel strategy constructs and individual marketing performance constructs. The study concluded that channel strategies are predictors of marketing performance for the selected consumer goods firms in Lagos State, Nigeria. It was recommended that management of consumer goods firms should pay adequate attention to channel strategies that showed significant positive relationship with each of the marketing performance constructs in order to improve on marketing performance.