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PROJECT TOPIC:  PRODUCTION CONTROL SYSTEM (A CASE STUDY OF ANAMMCO NIGERIA LIMITED ENEME ENUGU STATE)
Department:  System Engineering
AMOUNT:  10,000
FORMAT:   MS WORD
PAGES:  77
 
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CHAPTER ONE

INTRODUCTION

1.0  Background of the Study 

Marketing channel decisions are among the most important decisions that management faces. A company’s channel decisions are linked with every other marketing decision. The company’s pricing depends on whether it uses mass merchandisers or high quality specialty stones. The firm’s sales force and advertising decisions depend on how much persuasion, training, motivation, and support the dealers need. Whether a company develops or acquires certain new products may depend on how well those products fit the capabilities of its channel.Companies often pay too little attention to their distribution channels, however, sometimes with damaging imaginative distribution systems to gain competitive advantage. Distribution channel decisions often involve long-term commitments to other firms. Distribution is the process or moving goods from producers or manufacturers to the consumers and users. All over the world, the distributor is regarded as very essential and fundamental link in the process of transforming goods that are produced by the manufacturer / producers to the consumers and users. The distributor therefore performs productive marketing function by ensuring that goods produced get to the ultimate consumer.          
The effort of the producers to ensure that their goods reach the market place are likely to be illusive and a pipe dream unless they are supported by effective distribution. It must be noted, and this is very vital that the marketing process is an interwoven system in the marketing which several components have separate but complimentary roles to play which the distribution function is the last stage.  More so the marketing concept is based on the orientation of finding consumer’s needs and wants and filling them. These wants and needs are only deemed to be satisfied when goods produced get to the final consumer or target market. It is a popular assertion that goods produced have little or value to the consumer until they are transferred or moved to places where there is demand for them. And here in lies the relevance and crucial role of the distributor who transfer these goods to the consumers along side, some value added to it in form of place, time possession and utilities.                 
According to Wilson, (1979 P. 37) distribution broadly is concerned with the most profitable lowest risky way, short and long term of getting goods to the end users. That is to say, distribution encompasses both, the channel of distribution takes care of the number of marketing institutions linked so that title and product can flow to consumers facilitators and their selection is based on sales communication and contractual consideration. Physical distribution on the other hand deals with the logistical transfer of goods and includes activities such as warehousing, product handling, material handling transportation etc.          
The objective of distribution is to get goods to the right place, at the right time and at a reasonable cost. Little wonder Cunditt, still and Govon: (1980, P 10) looked at distribution as encompassing activities involved in transferring goods from producers to final buyers and users, not just activities, cost elements are involved. The ill defined nature of distributive systems in automobile industries can be traced to the nation’s economy not being mass productive. It is still a developing economy and possesses all the characteristics of a developing economy. Marketing is usually identified with an economy of abundance where a nation produces far beyond the subsistence needs. Because our economy is under producing, existing automobile industries such as ANAMMCO who find their market in Nigeria assume that mechanisms exist and will continue to more their products from factory to their customer. They seldom plan changes in distribution system as they would plan in details for changes in population pattern, consumer buying habits and product technology. To this end distributors have come under great criticism and are labeled all sorts of names like exploiter “parasite” saboteur and sometimes as someone who services no useful purpose in the economy.          
For the fact that distributors in this state do not perform their functions effectively in light of inadequate infrastructive, like
a.     Poor Warehousing facilities
b.     Deplorable road networks and transportation etc, developing nation including Nigeria are examining principles to see how their distribution strategy can be see how their distribution strategy can be improved and how they could be to enhance efficient distribution of their products.
c.      It is a yardstick to provide basis information on effect of distribution in our economy.
d.     It will enable further research work to be carried on the same field of the study.
e.      It will contribute to the body of knowledge about distribution strategy
f.       It will benefit marketing companies who will have a chance between setting up a distribution company and being a representative of major marketer.
g.     It will also benefit distributors and final users.
     

 

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