THE EFFECT OF MARKETING STRATEGY IN A DIVERSIFYING ECONOMY

THE EFFECT OF MARKETING STRATEGY IN A DIVERSIFYING ECONOMY

(A case study of Nigeria Export Promotion Council Headquarter, Abuja)

ABSTRACT

This project title “The Effect of Marketing Strategy in a Diversifying Economy” (a case study of Nigeria Export Promotion Council Headquarter, Abuja) tends to focus on the diversification of oil to non-oil sector of the economy. Marketing strategies cannot be effective without the logic called tactics, tactics is the yardstick of achieving it predetermine goal. Marketing strategies could also be attributed to management concept where planning, coordinating, staffing, directing and supervising become the mean to win engagement. This project is divided into five chapters, the first chapter comprises of introduction, statement of problem and research hypothesis. The second chapter comprises of review of related literature and the theoretical framework. The third chapter comprise of how the data is collected and the sample size. The fourth chapter comprises of data presentation and analysis and test of hypothesis. The final chapter is the conclusion of the study. Also appropriate recommendations were made as to how to address the effective of marketing strategy in a diversifying economy. This is an intellectual work and like all other intellectual work did not draw a final conclusion.

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The important of marketing in a diversifying economy cannot be overemphasised. Its activities cut across the social, political and economy state of the country. However, marketing activities has not achieved much both home and abroad. The marketing field is bound both by the environment and by the limit impose by the perception of the observer. In some companies, marketing is still concerned with little or more than sale force and advertising management; in other forms marketing is an integrative corporate activity that provides the direction for corporate strategic planning. In non-business organisation executives are only beginning to perceive the potential of marketing in achieving institutional goals. The different between these approaches is due in part to the perception of management and its attitude towards change.

This study is focus on ‘marketing strategy in a diversifying economy’ A case study of Nigeria export promotion council Headquarters, Abuja is that Nigeria economy is import oriented which discourage local industries to improve in the production of goods and services. The word diversifying means to move oil to non-oil sector of the economy.

1.2     STATEMENT OF THE PROBLEM

The end of the civil war in 1970 and the emergence of petroleum export in the early 70s, as the major source of foreign exchange for Nigeria market a significant watershed in the economic history of Nigeria.

The collapse of the international oil market in the early eighties and consequently downward spiral of prices left Nigeria with serious economic crisis manifested in recession macro-economic inability, fiscal, balance of the authorities the dangers associated with the countries over dependence on a single commodity (oil)and the compelling need to diversify the country’s productive base through the non-oil exports. Since the early 80s there are economic and social deficiencies that emerged including the following.

1. An import dependence economy.
2. A debt-ridden treasury.
3. High levels of unemployment and underemployment coupled with underutilization of installed capacity.
4. An economy leaden with subsidies.
5. Over-valued currency.
6. Neglect agricultural and food storage.
7. A nation without a clear vision purpose leadership and sense of direction.

1.3     OBJECTIVES OF THE STUDY

The writer’s interest in this subject matter is to look at:

1. The role the export promotion council has played in trying to diversify the economy of the country.
2. The exploration sector and its participation in the exploration of non-oil products.
3. It will also look at the measures that government has taken so far, to see to the development and growth of such programs.

1.4     SIGNIFICANCE OF THE STUDY

One major significance of this work is that it will contribute to existing knowledge about the effect of marketing strategies in a diversifying economy.

It will help educate both individuals and organization about the need to have a diversifying economy that can improve the economy and provide job opportunities.

This project work will serve as a literature to new projects and to those wishing to write on the effect of marketing strategies in a diversifying economy and also to fulfil a part of what is required to obtain a National Diploma (ND) in Federal Polytechnic Nasarawa and the study will give knowledge to other students and the society at large.

1.5     RESEARCH QUESTIONS

1. What are the roles the export promotion council has played in trying to diversify the economy of the country?
2. What is the participation of the exploration sector in the exploration of non-oil products?
3. What measures have the government taken so far, to see to the development and growth of such programs.

1.6     RESEARCH HYPOTHESIS

The aim of the study is to question the reliability and to validate this hypothesis.

H_o:    Marketing strategies play an important role in the diversifying of the Nigerian economy.

H_i:     Marketing strategies does not play an important role in the diversifying of Nigerian economy.

1.7     SCOPE OF THE STUDY

For convenience, this study is limited to the effect of marketing strategies in a diversifying economy a case study of Nigeria Promotion Council Headquarters Abuja. The result generated will serve to mirror it effects Nigeria Promotion Council Headquarters Abuja and all organizations in general.

It will help to understand the problems faced by the promotion council and how diversifying economy has helped improve the economy of Nigeria.

1.8     LIMITATIONS OF THE STUDY

The study is limited to the activities of Nigerian Export Promotion Council Abuja and related literature. Any information or recommendation received from questionnaire personnel interviews and will be used for this project.

The writer faced a lot of constraints during the period of this work. One of such constraints was time. Time needed for gathering information, travelling, administering questionnaires and conducting personal interviews.

Getting the required information from the organisation was not an easy task because of the reluctance on their part to release needed information for this research work.

The class work and other academic activities to the constraints the researcher had. Funds were also part of the constraints, there were not enough funds to enable the writer travel always or whenever the need arises. And also cost of station any and scarcity of textbooks was part of the constraints experienced. Also cost of typing manuscript and building of the research work.

1.9     DEFINITION OF RELEVANCE TERMS       

Marketing strategies: The fundamental marketing logic by which the business wants to achieve it marketing objectives.

Marketing mix: The particular blend of controlling marketing variables that the firm uses to achieve it marketing objectives in the target market.

Recession: Period of temporary business reduction.

Diversification: Means engagement in products, industries, technologies and market which are new to the company. These products will normally appeal to new classes of customers.

Economy: Avoidance of waste of money, strength or anything else of value.

Market: The set of all actual and potential buyers of a product or set of condition in which buyers and sellers transact business.

Product: Anything that can be offered for attention, acquisition, use or consumption that might satisfy a need. It includes physical objects, services, person, places, organisation and ideas.

Industrial goods: Usually refers to such products as machinery, manufacturing plant or raw material. Essentially, they are goods sold to industry as opposed to costumers.

Spiral: Continuous or expanding of decrease or increase in prices, wages or employment.

Foreign market: Marketing activities by a firm outside its home country.

International markets: The set of buyers found in other countries. This set includes foreign countries, producers, reseller and government.

Inflation: An economic phenomenon in which decreasing purchasing power of currency caused by a persistent tendency of prices to rise often sharply compare with deflation.

Invisible exports: Items such as financial services in the current balance of payments, that is not physically tangible as exports.

DEFINITION OF MARKETING STRATEGY

 

DEFINITION OF MARKETING STRATEGY

Marketing strategy is an organization's strategy that combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. The marketing strategy is the foundation of a marketing plan.

A marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers of the products or services the business provides. A marketing strategy contains the company’s value proposition, key brand messaging, data on target customer demographics, and other high-level elements.

The marketing strategy informs the marketing plan, which is a document that details the specific types of marketing activities a company conducts and contains timetables for rolling out various marketing initiatives.

Marketing strategies should ideally have longer lifespans than individual marketing plans because they contain value propositions and other key elements of a company’s brand, which generally hold consistent over the long haul. In other words, marketing strategies cover big-picture messaging, while marketing plans delineate the logistical details of specific campaigns.

 STRATEGIC MARKETING PLANNING:

Strategic planning is the process of planning as to how to achieve organizational objectives with the available resources and is undertaken by the central management of the business. It is an exercise by the top management to fix the objectives of the organization and then plan to achieve them. An assessment of available resources is made at the top and then things are planned for a time period of upto 10 years. It basically deals with the total assessment of the organization, strengths, capabilities and weaknesses and an objective evaluation of environment is made for future pursuits.

Features of Strategic Planning:

The basic features of strategic planning are described as follows:

The basic mission and goals of the organization, nature of business and the nature of customers are clearly stated.

1. Strategic planning is a long term planning. 
2. It provides cohesiveness in company’s policies and activities over a long period. 
3. The more the functions of an organization affected by plans the more the strategic these are. 
4. It is concerned both with the formulation of goals and the selection of the means by which they are to be attained. 
5. Since it determines basic policies and programmes, it is a top management activity. 
6. It is designed to improve organization’s relations with environment. 
7. It is comprehensive and unified plan for the deployment of scarce organizational resources. 
8. It sets the direction of organization’s activities for the attainment of goals.

 

NEED FOR STRATEGIC PLANNING:

Strategic planning is required for the following reasons:

1. Impact of External Factors:            

There are a number of factors which affect the operations of the business. These factors include international environment, political and government policies, economic trends, technological and social changes. Strategic planning must have provisions for the impact of these situations.

2. Proper use of Resources:

The natural resources are becoming scarce and human resources are changing every day. Strategic planning is needed for procuring these resources and allocating them properly. The traditional work force is giving way to more educated workers. The computers have taken over the routine jobs. The proper use of various resources requires a proper planning on the part of top management.

3. Ensuring Success:

An explosion in information technology has increased the knowledge and better methods of planning. Since strategic planning helps in achieving success, there is a need to undertake it in most of the companies.

THE TIME-FRAME OF MARKETING PLANNING

In life there is time for everything. Times to be born, grow, marry, bear children, grow old and die. Therefore adequate planning is needed at every stage. In marketing management, there is a time frame within which a particular marketing programe is to be planned and executed. An example is sales promotion. A time frame of three months, six months or there about could be set to execute the sales promotional activity in the organization.

Marketers always have time frame to plan and meet any objective, goals and task of the firm. Time frame of marketing planning enables marketing managers to have a time frame within which they want to achieve a particular objective and execute certain targets. Adequate time frame should be used when planning a marketing activity so that it would enable marketing managers succeed in their program in the organization

TOTAL CORPORATE PLANNING PROCESS

We can define corporate planning as follows:

Corporate planning is a total system of planning which involves the determination of the objectives for the company as a whole and for each department of the it; formulation of strategies for the attainment of these objectives (all this being done against the background of SWOT analysis); conversion of strategies into tactical plans (or operational plans); implementation of tactical plans and a review of the progress of tactical plans against the corporate planning objectives.

On the basis of the above definition, we can state the following main features of corporate planning:

(i) Corporate planning is a total system of planning, under which concept objectives are determined for the company as a whole and for each department of it. This means that under the concept of corporate planning, no department of company is allowed to have its own independent planning. All departmental plans are a part of corporate planning, in a unified structure.

(ii) To realize the objectives of corporate planning, strategy formulation is done. Strategy formulation is the core aspect of corporate planning. Success of corporate planning depends on the success of strategy formulation

iii) Determination of objectives of corporate planning and strategy formulation – both are done against the background of SWOT analysis.

(iv) Strategies are translated (or converted) into tactical plans (or operational plans), which are detailed in nature.

(v) Tactical plans are put to action at the right time, as decided by management. This is the practical aspect of corporate planning.

(vi) Performance of tactical plans is judged in the light of the objectives of corporate planning; so that necessary modifications might be made in the corporate planning process and better corporate planning might be done in future.

(vii) Corporate planning has a long-term perspective; while operational plans have a short-term prospective.

David Hussey (Corporate Planning: Theory and Practice) defines corporate planning as follows:

“Corporate planning includes the setting of objectives, organizing the work, people and systems to enable those objectives to be achieved, motivating through the planning process and through the plans, measuring performance and so controlling progress of the plans and developing people through better decision-making, clearer objectives, more involvement, and awareness of progress.”

Process of Corporate Planning:

Major steps involved in corporate planning are as follows:

(i) Environmental Analysis and Diagnosis:

The first steps (which is, in fact, the background step), involved in corporate planning is environmental analysis and diagnosis. (A detailed account of this step is attempted subsequently, in the discussion about corporate planning).

(ii) Determination of Objectives:

All planning starts with a determination of the objectives for the plan; and corporate planning are no exception to this generality. In corporate planning, after environmental analysis and diagnosis, the planners determine objectives for the company as a whole and for each department of it; which become the beginning point of corporate planning.

All objectives of corporate planning must represent an integrated or coordinated system of objectives. In order to make corporate planning a realistic approach to attaining objectives; objective setting for corporate planning is done in the light of environmental analysis and diagnosis.

(iii) Strategy Formulation:

Strategy formulation is the core aspect of corporate planning. Strategy is, in fact, the weapon of the planner devised for attaining objectives of corporate planning. It is easier to set objectives; it is difficult to realize them. Strategies facilitate the attainment of objectives.

There is no doubt about it that success of strategies is the success of corporate planning; and vice-versa. Strategy formulation is also done in the light of environmental analysis and diagnosis.

(iv) Development of Tactical Plans:

Strategies are translated into action plans called tactical plans or operational plans. Tactical plans are necessary for implementation of strategies leading to the attainment of corporate planning objectives. For example, if the strategy of a company is to develop the skills and talents of manpower for realizing objectives; then designing of suitable training programmes would amount to making tactical plans.

Corporate planning and strategy formulation have a long-term perspective; while tactical plans have a short-term perspective, as the latter are to be implemented immediately, in the usual course of organizational life.

(v) Implementation of Tactical Plans:

Mere paper planning is no planning; unless and until it is put into practice. As such, tactical plans are put into a process of implementation, just at the right time, as decided by management. For implementation purposes, necessary communications are made to the operating staffing; who are also provided with necessary facilities to implement the tactical plans.

(vi) Follow-Up-Action:

After the tactical plans have been put into practice; a review of progress is done i.e. an examination of what results are following from the implementation of the plan and what feedback action is necessary, for the betterment of the corporate planning process.

THE EFFECT OF MARKETING STRATEGIES ON MEDIA ORGANIZATION

THE EFFECT OF MARKETING STRATEGIES ON MEDIA ORGANIZATION

(A case study of Nasarawa Broadcasting Service, Lafia)

ABSTRACT

This research work was based on the effect of marketing strategies on media organizations; Nasarawa Broadcasting Service Lafia was picked to serve as a sample for the population in the course of the research.Scope and limitation and the terms were designed. In chapter two, marketing strategies designed levels of planning the marketing strategies were explained. The marketing mix, marketing environment, have been examined with the summary of literature review. Chapter three shows research designs and methodology, source of data questionnaire design, the population and sample and the questionnaire that are distributed and collected. Chapter four contains data presentation and analysis as well as a reasonable conclusion after which source and useful recommendations were suggested. The researcher used questionnaire method to obtain information, organize the research work in five (5) chapters. The Chi-square method was used to analyze the necessary data obtained from the questionnaire returned. Adequate suggestions and recommendations were made.

CHAPTER ONE: INTRODUCTION

1. BACKGROUND OF THE STUDY

In many countries of the world, the mass media as an institution is aimed at enlightening the society on the economic and financial situations and also to find the possible solution to problems being faced by the nation with regards to the free enterprise economics. FagboSaka (2002) Such direction is a product of the ideological learning of a society within the prospects of micro and macro-economics.  The current globalization market has made companies to see the internationalization of their activities as a way to remain competitive. Marketing strategy has become important tool globally for any organization to remain in competitive market environment and was stronger. Aremu and Lawal (2012) sees strategy as a pattern of resource allocation decisions made throughout an organization. This encapsulates both desired goals and beliefs about what areacceptable \and most critically unacceptable means for achieving them. Aremu and Lawal, (2012) say that strategy implies that the analysis of the market and its environment, customer buying behaviour, competitive activities sand the need and capabilities of marketing intermediaries. Marketing strategy therefore, can be defined as a method by which a firm attempts to reach its target markets. Marketing strategy starts with market research, in which needs and attitudes and competitors’ products are assessed and continues through into advertising, promotion, distribution and where applicable, customer servicing, packaging, sales and distribution. Marketing strategy must focus on delivering greater value to customers and the firm at a lower cost (Chiliyaet al, 2009). Owomoyel a et al,(2013) also see marketing strategy as way of providing a quality product that satisfies customer needs, offering affordable price and engaging in wider distribution and back it up with effective promotion strategy. Marketing strategy is a vital prerequisite of Industry’s ability to strengthen its market share and minimize the impact of the competition

Even the state controlled economics, the media though heavily subsidized by government cannot be realistically regarded as valuable resources of the state. since as an institution it exist to fulfill basic ideological good of the society and cannot therefore be appraised in terms of its ability to generate resources for its sustenance or toward other ends.

The Nigeria media cannot be said to have enjoyed an institutional advantage provided within a long time which operates under the cover of mixed company. Some differences in this direction are noticeable in the print and electronic components of the mass media. Although the print media was introduced (in this case the newspaper) under a private initiative in 1859..the entry of the electronic media (radio) has the stamp of the colonial authority, more than three (3) decades after independence in 1960. Electronic media ownership has remained the privilege of government either at the Federal or State level. They exist as at now a number of television production companies, the best of these outfits have been able to achieve their independent production of programmes for public consumption.

The print media appears to have been more democratic in character, while government have embraced the medium and have been controlling shares or completely ownership of newspapers. Private initiative has received considerable expression in the area of ownership and operation of these outlets. The reality of the market is that while some newspapers and magazines are more successful than others, there exists healthy competition among the organizations.

Marketing forces have helped to determine the strength of these organizations periodically. Those who are subject to the political will (in the case of government) and dispensation have been able to understand and address the problems being faced by the competitors. These factors have in most case defined their audience and direct effort at meeting the needs of this audience. The noticeable shift in policies and programs to a capitalist society has informed the need for the mass media to address the issue of viability. This issue has received considerable boost with the option of the structural adjustment program (SAP) in July 1986. The implementation of the program also witnessed a spate of privatization and commercialization drives.  

1. STATEMENT OF THE PROBLEMS

In spite of its relevance, the effect of marketing strategies on media organization is hardly studied especially. But in many cases, they face the constraints of technological backwardness, lack of human resource skills, weak management system and entrepreneurial capabilities, unavailability of appropriate and timely information, insufficient use of information technology, poor product quality etc. As a result, there exists a low level of marketing strategies on media organization.

Previous studies reviews conflicting findings e.g. FagboSaka (2002) shows that marketing strategy has become an important tool globally for any organization to remain in competitive market. Aremu and Lawal (2012) shows that strategy as a pattern of resource allocation decision made throughout an organization. This encapsulates both desired goals and believes about what are acceptable means for achieving them.

Chiliya et al (2009) shows that marketing strategy starts with market research, in which needs and attitudes and competitors products are assessed and continues through advertising, promotion, distribution and where applicable, customer servicing, packaging, sales and distribution; Owomoyele et al (2013) shows that marketing strategy is a way of providing a quality product that satisfies customers needs, offering affordable price and engaging in wider distribution and back it up with effective promotion strategy.    In view of the above, this study seeks to address the effect of marketing strategy on media organizations and show ways to improve, especially Nasarawa Broadcasting Service Lafia.

1. OBJECTIVES OF THE STUDY

The broad or general objective of the study is to investigate the effect of marketing strategy on media organizations of Nasarawa Broadcasting Service, Lafia and adopt the best strategy for the organization.

The specific objective is:

1.  To examine the degree at which product strategy improves the level of profit in the effect of marketing strategies on media organizations ofNasarawa Broadcasting Service, Lafia.
2. To determine the extent at which promotional strategy influences the sales volume of Nasarawa Broadcasting ServiceLafia.

• To determine the effectiveness and efficiency of the media in the face of competition in the perception of the mediaNasarawa Broadcasting Service, Lafia.
  • RESEARCH QUESTIONS

The following research questions will be used:

1. To what extent can the effect of marketing strategy on media organizations be investigated and how can the best strategy be adopted in Nasarawa Broadcasting Service, Lafia?
2. To what extent can the degree at which product strategy improve the level of profit of Nasarawa Broadcasting Service, Lafia be examined?
3. How can the effectiveness and efficiency of the media in the face of competition of the media be determined inNasarawa Broadcasting Service, Lafia?
   1. SIGNIFICANCE OF THE STUDY

The significance of the study is said to look into the effects of the application of marketing strategies in media organization particularly Nasarawa Broadcasting Service Lafia. It could provide some important information especially for interesting academician who will do further research work.

It would provide interesting information which would be used by the Federal government and the State government on the role of media organizations.

1. STATEMENT OF THE HYPOTHESIS

In order to address the research objectives and questions and ascertain reliable outcome from the investigation, the following hypothesis stated in null (Ho) will be tested.

Hypothesis one:

Ho: Product strategy has no significance to the effect of marketing strategies on media organizations in Nasarawa Broadcasting Service Lafia.

Hi: Product strategy does have significance to the effect of marketing strategies on media organizations in Nasarawa Broadcasting Service Lafia.

Hypothesis two:

Ho:Promotional strategy has no significance to the effect of marketing strategies on media organizations in Nasarawa Broadcasting Service Lafia.

Hi: Promotional strategy does have significance to the effect of marketing strategies on media organizations in Nasarawa Broadcasting Service Lafia.

Hypothesis three:

Ho:Price strategy has no significance to the effect of marketing strategies on media organizations in Nasarawa Broadcasting Service Lafia.

Hi: Price strategy does have significance to the effect of marketing strategies on media organizations in Nasarawa Broadcasting Service Lafia.

Hypothesis four

Ho:Place strategy has no significance to the effect of marketing strategies on media organizations in Nasarawa Broadcasting Service Lafia.

Hi: Place strategy does have significance to the effect of marketing strategies on media organizations in Nasarawa Broadcasting Service Lafia.

Hypothesis five

Ho: Effectiveness and efficiency has no significance to the effect of marketing strategies on media organizations in Nasarawa Broadcasting Service, Lafia.

Hi: Effectiveness and efficiency does have significance to the effect of marketing strategies on media organization in NasarawaBroadcating Service, Lafia.

1. SCOPE OF THE STUDY

This research work is limited to cover only Nasarawa Broadcasting Service Lafia.This study will help to give recommendations on how marketing strategy has effect on media organization and to see how it helps company to increase patronage.

1. LIMITATIONS OF THE STUDY

In the course of carrying out this research work, certain factors militated against the smooth operation of the work. The exercise was greatly limited due to some factors. Some of the factors include: 
–       Lack of funds 
–       Time constraints 
–       Inadequate research materials to collect data such as textbooks, journals, magazines 

1. OPERATIONAL DEFINITION OF TERMS
2. MEDIA: Channel through which the message or information passes from the producer to the final consumer e.g. Television, newspaper, magazine etc.
3. ADVERTISEMENT: Is the person or organization that usually initiates the advertising process or the sponsors of the advert.
4. ADVERTISING: It is the non-personal selling of goods and services through the mass media which includes newspaper, magazines, radio and television, postal and are fully paid for by an individual.
5. MARKETING: Philip Kotler (1996) however, defined marketing as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
6. COMMERCIALIZATION: This meansthe process of introducing a new product or production method into commerce—making it available on the market.
7. BROADCAST:The act of transmitting sound or images by radio or television.