Problems and prospects of marketing assignment

It is the major factor, especially in developed economies responsible for the wealth of nations and the means of resuscitation during economic depression. For the developed countries as a whole, marketing experience has occurred as part of the evolutionary cultural process and also progress of these nations. Therefore practical problems are profoundly handled as they had arisen, with available resource means at the material time. But the developing countries are evidently operating in an entirely different context today.

Time has changed many things. Many circumstances in the business world now appear to be affected by standardized but chimerical factors, so that operating in these situations amount to operating under conditions of fait accompli. Countries like U. S. A, Japan, UK, Germany, France, Switzerland and Belgium have tremendously benefited from the performance of their marketing activities, which have really helped to boost their economies and contribute to the GNP.

The other sections of this paper include the following: theoretical conceptualization, importance of marketing to an economy, problems of marketing in developing economies, prospects of marketing in developing economies, conclusion and references. In seeking to ensure that every country designs and implements the best method of achieving socio-economic transformation, marketing can be a veritable vehicle (Aigbiremolen and Aigbiremolen, 2004). Marketing can ensure that the values and environmental opportunities of an economy are taken into consideration with a view to achieving an integrated approach to development (Kinsey, 1988).

The new marketing concept is a philosophy of business that states that the customer’s want satisfaction is the economic and social justification for the existence of any company or organization. Therefore all companies activities and effort must be devoted towards achieving this objective, while still making a profit. The changing social and economic conditions in the technologically advanced countries were fundamental in the development and evolution of the marketing concept. In spite of the fact that the concept evolved in the advance countries, the boundaries of marketing have extended remarkably to different frontiers.

Theoretical Conceptualization Alatise as enunciated in Onah (1979) suggested when marketing is most necessary in an economy to include: 1) Free Supply of Goods: When there are enough goods for consumers to buy. In other words when supply exceeds demand, warehouses for finished products as well as raw materials are near bursting at the seams. 2) Competitive Conditions: The consumer has many choices almost equally well-matched brands. These are equal satisfaction in an economy, such that they do not have cause to complain about scarcity of products as a result of non availability of competing brands. ) Competition at Distribution Points: There is no bottleneck in the distribution chain, and all brands are well represented at all relevant distribution outlets in the entire market. 188 International Journal of Business and Management September, 2009 4) High Margins for Marketing and Profits: There are prospects for generating profit and marketing potentials from every business venture. Therefore the more you sell the more profit you make. 5) Rapid Change in Technology and Consumer Taste: This keeps marketing managers/executives as well as production managers on their toes to be innovative and creative.

There is always the pressing need to sell off what you have today to avoid the obsolescence of tomorrow, and also try to beat your competitors in the game of being the first to offer the product of tomorrow, or at least a better product. 6) Frequent Purchases by Consumer: Marketing is most effective in mass consumable goods with quick and continual repeat purchases. It does not function well in an economy where the purchasing power of the people/consumers’ is not reasonably appreciable because their demand pattern will be downwardly skewed. ) Good Opportunities for Product Differentiation: This enables producers and sellers to woo and appeal to consumers and buyers in different ways that will give them satisfaction. 3. Importance of Marketing to an Economy Olakunori and Ejionueme (1997) identified the importance of marketing to any economy, which was later up dated by Olakunori (2002) to include the following; 1) Marketing Impact on People: There is no doubt all over the world that marketing activities are affected by people’s beliefs, attitudes, life styles, consumption pattern, purchase behaviour, income, etc.

Further breakdown of the sectoral growth shows that Nigeria still perform less than Egypt, Malaysia, and Kenya in Manufacturing; Malaysia and Ghana in agriculture; Malaysia, Egypt and Kenya in the services sub-sector. These are all indices that determine the performance of marketing activities in any economy. Therefore any economy especially, developing that pays lip service to marketing is doing that at its peril. Table 2 provides detailed analysis of the performance of world trade with particular attention to the marketing of goods and its contributing activities between 1990 and 2000 in the aforementioned regions.

Findings clearly show that North America had 15. 4% (1990) and 17. 1% (2000) in export while its figure for import was 18. 4% (1990) and 23. 2% (2000). Western Europe had 48. 7% (1990) and 39. 6% (2000), its share of import was 48. 7% (1990) and 39. 6% (2000). Asia’s figure for trade dealings in export was 21. 8% (1990) and 26. 7% (2000), while its import was 20. 3% (1990) and 22. 8% (2000). Latin America had 4. 3% (1990) and 5. 8% (2000) in export and its import involvement was 3. 7% (1990) and 6% (2000). Developing Africa had the least in export and import for both years under review with the following percentages, 3. % (1990), 2. 3% (2000) all in export and 2. 7% (1990) and 2. 1% (2000) all in import. From the 189 Vol. 4, No. 9 International Journal of Business and Management performance of these economies, it can be concluded that advanced industrialized countries of North America, Western Europe and emerging economies of Latin America and Asia have impacted more on the marketing horizon. This is noticed in the trading dealings of each region. But for developing Africa it has not been a fair tale based on it’ s decline between 1990 and 2000.

In Nigeria most of the school leavers (graduates precisely) are self employed, in one area of marketing or the other. The idea of working for the government only is now a thing of the past, though the jobs are equally scanty to meet the needs of the teeming unemployed. 4. Problems of Marketing in Developing Economies There are series of constraints that hinder the performance of marketing in most developing countries. The experience of Nigeria and other Africa countries is worthy of note. These problems include the following; 1) Low Marketing Education: A well informed and educated people tend to be prosperous investors and consumers.

This is because they will imbibe the culture and tenets of marketing. But marketing education is still generally low in developing countries. Many policy makers and managers of large organizations still do not know what marketing is all about. Even when some people acquire higher degrees in the field of marketing and business administration, they come out doing the contrary, instead of practicing the true marketing concept or relationship marketing for the benefit of the society as a whole. In situations like that, marketing cannot contribute meaningfully to the development of these economies.

To worsen matters, the bulk of African’s production is mainly in agricultural products that contribute less to GNP or Net National income of their various economies. This is because these products are sold at lesser prices in the world market. The income generated from them can only buy little from all that is needed to encourage domestic production, in order to enhance marketing. Where it is possible to import the equipment, the production techniques and skillful manpower requirement is sometimes too expensive to bear, hence the high cost of some local products when compared to the same foreign brands.

This reason strengthens consumer’s preference for imported products and results to low demand for locally made goods. This affects the marketing potentials of the home industries and equally has an adverse effect on macro- marketing of developing countries. 5) Inadequate Infrastructures: Most developing countries are very poor, such that some of them depend on aids from abroad. There are cases of debt accrual and debt burden hugging on some of the African countries that are yet to be paid.

In Nigeria one can find competitive businesses mostly in the service industry, which contribute less than two percent of GDP (CBN, 2002). But in the manufacturing sector nothing can be said of it, because there is no competition. In most developed societies economic policies have long assumed that competition among businesses is the most efficient method of producing and marketing goods and services. Proponents of this philosophy contend that it results in maximum productivity and forces inefficient organizations and businesses to erminate their operations. It gives the consumer or buyer an opportunity to choose from several competing companies rather than buy from a monopolist, and stimulates creativity in seeking solutions to marketing problems especially in developing countries where such problems are more (CBN, 2000). But marketing in the true sense is usually at its best where and when there is real competition. Unfortunately, competition is at the lower ebb in developing countries, this might not be unconnected with the level of poverty and underdevelopment in the continent.

But developed countries like USA, UK, Japan and emerging economies in Asia are competing amongst themselves in the manufacturing and supply of different types of products to newly found markets in sub-Saharan Africa. This is because they have the technology and financial backing. 7) Over- Regulation of Business by Government: Another major problem that has be-deviled the performance of marketing especially in Nigeria has been the issue of government regulations and interferences in the activities of businesses and corporate firms.

The experience of most African countries like Liberia, Sudan, Rwanda, and Nigeria are typical examples of where the political climate and business environment had been in perpetual turbulence over the seat of power and who controls the resources (petroleum product) in the Niger Delta region. For Nigeria the issue in the Niger Delta gives cause to worry because most of the foreign investors and multi-nationals are thinking of relocating based on the continuous molestation and threat by militants, if nothing is done to salvage the situation. Table 4 shows the conflict rating of Nigeria, Ghana, South Africa, Kenya and Egypt.

Amongst the five countries Nigeria has the highest figures especially after 1998. The above Situation reinforces uncertainty, instability, and increases the risk of doing business in Nigeria. Thus investment overtures become difficult in such localities or geographical areas and this undermines the performance of marketing. 5. Prospects of Marketing in Developing Economies Despite the numerous problems confronting marketing in developing countries, there exists prospects and opportunities for future growth and development of marketing as the pivot of developing economies.

The government has equally taken the issue of workers/staff remuneration seriously, such that salaries now come as at when due and the take home package of most developing countries these days is quite commendable when compared to what it was few years back. Available data from the Nigeria living Standard survey conducted in 2003/2004 indicated that the incidence of poverty exhibited a downward trend. It declined 192 International Journal of Business and Management September, 2009 from 70% in 2000 to 54. % in 2004 and it is expected to decline more in the years ahead (CBN, 2005). This of course presents brighter prospects for marketing. 5) Availability of Cheap Production Inputs: Most developing countries are endowed with abundant human and material resources that are yet untapped. For example, according to CBN (2000) Nigeria remains endowed with abundant natural resources, good weather conditions and a large population. These will be readily handy for companies and businesses to exploit.

Despite the high level of poverty and low exchange values of the national currencies of developing countries, labour and raw materials or inputs are often found to be cheap and it is envisaged that in the nearest future it will be cheaper because of better opportunities and more goods will be produced for consumption. The absence of serious competition also makes it easy to source these production inputs and reach different market segments. This is why most multinationals are more marketable and profitable in developing countries than their industrialized coutries. ) Rapid Economic Development: Quoting Olakunori (2002), the economies of developing nations are growing rapidly as a result of the efforts being made by their various governments and the developmental agencies of the United Nations towards this direction. This results to income re-distribution and increased purchasing power and discretionary income are also enhanced. Thus, it is expected that the demand for products to satisfy higher order needs will increase and the general atmosphere of business in the continent will become more conducive and all these mean well for marketing in sub-Saharan Africa and Nigeria in particular. . Conclusion Despite the numerous problems facing marketing in developing countries, there are good prospects for the future, hence marketing is the answer to the underdevelopment of developing countries. When adopted and practiced, marketing will help to develop appropriate technologies as developing nations provide for the needs of the people and enhance their standard of living, create job opportunities for the unemployed, wealth for entrepreneurs, a means towards affording education and enjoyment of leisure.

International Journal of Business and Management APPENDIX 1 Table 1. Growth Rate of GDP for selected Countries (%) Country 1980 to 1990 Nigeria Ghana South Africa Kenya Egypt Malaysia Source: CBN, 2003 APPENDIX 2 Table 2. Regional Shares of World Merchandise Trade 1990 -2000 Region North America Western Europe Asia Latin America Africa 1990 Exports (%) 15. 4 48. 3 21. 8 4. 3 3. 1 2000 Exports (%) 17. 1 39. 5 26. 7 5. 8 2. 3 1990 Imports (%) 18. 4 48. 7 20. 3 3. 7 2. 7 1. 6 3. 0 1. 0 4. 2 5. 4 5. 3 GDP 1990 to 1999 2. 4 4. 3 1. 9 2. 2 4. 4 7. 3 Agriculture 1980 to 1990 3. 1. 0 2. 9 3. 3 -1. 1 3. 4 1990 to 1999 2. 9 3. 4 1. 0 1. 4 1. 1 0. 2 Manufacturing 1980 to 1990 0. 7 1. 1 4. 9 -0. 2 9. 3 1990 to 1999 2. 0 -0. 3 1. 1 2. 4 5. 3 9. 7 1980 to 1990 3. 7 2. 9 2. 4 4. 9 0. 7 4. 9 September, 2009 Services 1990 to 1999 2. 8 1. 9 2. 4 3. 5 5. 8 8. 0 2000 Imports (%) 23. 2 39. 6 22. 8 6. 0 2. 1 Source: (1) WTO International Trade Statistics 2001. (2) African Development Bank Report 2004. 195 Vol. 4, No. 9 APPENDIX 3 International Journal of Business and Management Table 3. Infrastructure of Nigeria and other Emerging Markets, 1999.

Infrastructure Country Nigeria Ghana South Africa Kenya Egypt Malaysia Electricity Consumption per Capita 85 289 3, 832 129 861 2, 554 Telephone per 1000 Persons 4 8 125 10 75 203 APPENDIX 4 Table 4. Conflict Rating of Five Countries in Sub-Saharan Africa. Conflicts Country Nigeria Ghana South Africa Kenya Egypt Source: CBN, 2003. 1998 21. 4 2. 4 29. 8 48. 5 0 2000 44. 0 3. 8 41. 4 0. 0 9. 2 2001 11. 3 0. 3 2. 2 2. 9 3. 4 Users (‘ 000) 100 20 1, 820 35 200 1500 Classification Severely indebted Moderately indebted Less indebted Moderately indebted Les indebted Moderately indebted Source: World Bank 2001, and World Development Indicators, 2001. 196