Abstract
Physical distribution channels has created a created a great impact by
bridging the gap between the producers and the final consumers. The
inability of farmers to effectively reach out to distance markets and most
final consumers with their agricultural products have resulted to waste of
resources in Boki local government area. The main objective of the study is
to find how best to market agricultural products in the area. Primary and
secondary data were collected through the use of questionnaires and
documented materials respectively. The population of the study was
227,400, while the sample size was 399. Chi-square test statistics was used
to test the high hypotheses. Among the findings of the study; in effective and
high cost of transportation, lack of storage facilities and basic infrastructure
hindered the marketing of agricultural products in the area. The researcher
thus recommended the provision of basic infrastructure like accessible road,
storage facilit
1.1 INTRODUCTION
In many marketing science, the effective management
distribution of product are essential to those that determine the extent of
product availability at consumption point. Channel analyses is important
in evaluating marketing system because it indicates how the various
market participants are organize to accomplish the movement of products
from the producer to the final consumer.
Distribution channel according to Philip, Kotler and Garry Armstrong
(1999:362) is viewed as an interdependent organization involved in the
process of making a product or service available for use or consumption
by the consumer or business user.
Channels of distribution are management tools used in moving
goods from the point of production to that of consumption. This function
of getting goods into the hands of consumers is often referred to as
„?distribution„?. Hence physical distribution involves planning,
implementing and controlling the physical flow of materials, final goods
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and related information from point of origin to point of consumption to
meet customer requirements and satisfactorily.
Distribution channels however, play major roles in the marketing
of goods and in the business sector as a whole. Williams {1984: 38}
stated the following as the usefulness or the importance of distribution
channels to include: firstly, it gives place utility i.e. by moving goods
from one place to another. Secondly, by bringing goods to the place of
consumption when needed, it adds time utility.
Also by bringing the goods to the consumer in convenient shape, unit
size and packaging, it adds convenient value. Thirdly, by making it
possible for consumers to obtain goods at a price he is willing to pay and
under condition which brings satisfaction and ownership. Efficient and
effective distribution system is particularly essential in moving perishable
products from the points of production to the point of consumption due to
the nature of the products.
1.1 STATEMENT OF PROBLEM
Physical distribution has impacted greatly in ensuring that goods and
services are made available when and where they are desired and in safe
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conditions. But due to the rise in technological development and global
marketing, the process however, is not without problems as many
companies and business people still lack adequate physical distribution
facilities leading to the spoilage of these products before getting to their
destination points.
Appropriate strategies for efficient and effective distribution of these
products are required in distributing agricultural products in Boki local
government area.
In Boki L.G.A lack of adequate and efficient distribution
system has badly affected marketing of perishable products in the area as
many of them perish on their way before getting to their consumption
point.
1.2 OBJECTIVE OF THE STUDY
The following are objectives of the study:
i. To determine the problems that affects the selection of channels of
distribution for agricultural products.
ii. To identify the basic components of physical distribution of
agricultural marketing used in the area.
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iii. To identify physical distribution strategies necessary or applicable
for perishable agricultural products
iv. To make recommendation that could help to improve the efficient
and effective physical distribution of agricultural products.
1.3 RESEARCH QUESTIONS
1. Do channels of distribution have any effect in the distribution of
agricultural products in Boki L.G.A?
2. Do Government policies have influence on the distribution channel to
be used for agricultural products in Boki L.G.A?
3. Does Boki have enough storage facilities that will promote agricultural
products?
4. To what great impact has physical distribution channel in providing
agricultural products when and where they are needed?
5. Does lack of infrastructures like access roads affects the distribution of
agricultural products in Boki L.G.A
6. Does inadequate processing plant affect large scale production of
perishable agricultural products in Boki L.G.A?
1.4 RESEARCH HYPOTHESE
Ho: channels of distribution are not effective in the distribution of
agricultural products in the area
HI: Channels of distribution are effective in the distribution of
agricultural products in the area
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HI: Inadequate processing plants discourage large scale production of
perishable agricultural products.
HO: Inadequate processing plants encourage farmers into large scale
production of perishable agricultural products.
3. HO: Lack of basic infrastructure like access roads has no significance
effects on agricultural products distribution in Boki L.G.A
Hi: lack of basic infrastructure like access roads has significance effects
on the distribution of agricultural products in Boki L.G.A
4 HO: Government policies do not have significance influence on
agricultural products in the area.
HI: Government policies have significance influence on agricultural
products distribution in the area.
1.6 SIGNIFICANCE OF THE STUDY
This research would be of great importance and will assist farmers in the
management of physical distribution channel in the area. It will also help
business firms and organization that are involved in physical distribution in
Boki Local government area.
This study will also reveal the available distribution channels in Boki
L.G.A and how to effectively utilize them. It will serve as reference
materials to other researchers who may carryout similar work in the nearest
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future. Furthermore the result of this study will be of tremendous
importance. It will also help consumers of perishable agricultural products to
have these product when and where they are needed at the time they are
needed .the study will equally assist channel member to know how best to
perform their marketing activities to satisfy their clients, to local
government, state and federal government ministries and parastatals seeking
information as regards marketing of perishable agricultural products
1.5 Scope and limitation of study
This study is based on the perishable and none-perishable agricultural
products in Boki local government. Information and data about „?the impact
of physical distribution channel in the marketing? is given only as related to
these areas. Scarcity of resources in our depressed economy made it
extremely difficult to conduct the research in a wide scope and area.
The financial commitment involved in this research work can also
militate against wider coverage.
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1.5 DEFINITION OF TERMS
DISTRIBUTION
Distribution is that which cover abroad range of activities aim at
efficient movement of finished goods from the end of the production line to
the consumers (Boon & Kurtz, 2000; 390)
DISTRIBUTION CHANNELS
Distribution channels consist of a set of interdependent organization
involved in the process of making a product or consumption by the
consumer or business user (Philip Kotler & Gary Armstrong 1999; 362).
Etzal, walker and Stanton (2007;380) defined marketing channel as the
set of people and firms involved in the transfer of title of a product as the
product mores from producer to ultimate consumer or business users.
Nwokoye (200; 105) define marketing channels as „?the combination of
institution through which a seller markets his products to the ultimate
buyer?? marketing channel are individuals or institutions that facilitates the
flow the producer to the final user. Individuals and institution mentioned in
this definition refer to middle men like wholesalers? retailers, distributors
and agents.
REIABILITY: The ability of an item to perform a required function under
stated condition for a stated period of time (Baily and Farmer, 19: 44).
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MARKETING CONCEPT: According to kinnear and Bemhardt
(1990:12,), marketing concept is a decision making approach that focuses on
customer needs and their societal consequences as it integrates all activities
of the organization to satisfy these consumer needs in a way that is
consistent with concern for broader societal consequence. The purpose is to
achieve long-run objectives through the satisfaction of these customer needs,
which must be balance against the needs of society as a whole.
MARKETING MIX: Mc McCarthy and Perrault, (1991: 33) defined
marketing mix as those controllable variables which a firm can use to
influence favorable response and stimulate profitable sales in the marking
place. Nell Borden popularize the concept of marking mix
AGRICULTURE: According to Webster?s Dictionary (1980) agriculture is
a science or practice of farming.