THE ROLE OF MARKETING IN DEVELOPING ECONOMY MARKETING AND ECONOMY DEVELOPMENT

THE ROLE OF MARKETING IN DEVELOPING ECONOMY

MARKETING AND ECONOMY DEVELOPMENT

Abstract

In the "underdeveloped" countries of the world, the more "glamorous" fields such as manufacturing or construction are generally high-lighted while marketing is treated with neglect, if not with contempt. Yet marketing holds a key position in these countries. It is generally the most backward of all areas of economic life. Marketing is also the most effective engine of economic development, particularly in its ability rapidly to develop entrepreneurs and managers. And it contributes what is the greatest need of an "underdeveloped" country: a systematic discipline in a vital area of economic activity... a discipline which is based on generalized, theoretical concepts and which can, therefore, be both taught and learned.

CHAPTER ONE

INTRODUCTION

Background of the Study
Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service.  From a societal point of view, marketing is the link between a society‘s material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships. Marketing plays a vital role in economic growth in the present global world. It ensures the planned economic growth in the developing economy where the scarcity of goods, services, ideas and excessive unemployment, thereby marketing efforts are needed for mobilization of economic resources for additional production of ideas, goods and services resulting in greater employment.

Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that also benefit the organization and its shareholders. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer buying behavior and providing superior customer value.

Marketing is an evolving and dynamic discipline that cuts across every spectrum of life. This explains why contemporary societies are now involved in one form of marketing activity or the other. The recent advancement in technology, has aided the free flow of goods and services as well as information amongst businesses and institutions, thereby turning the marketing environment into a global village. On a general perspective Kotler and Armstrong (2001) described marketing as a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others. Marketing is intricately linked with the economy of virtually all nations of the world. 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.

Markets are the context, both physical and conceptual, where exchange takes place. Marketing includes all activities from the producer to the final including processing and distribution systems. The term producer includes farmers or pastoralists and the manufacturers of production inputs when they produce the commodity being marketed. The term consumer is used for anyone who is the final consumer of a product or the final user of a production input. The retailer is the final link in the chain from producer to consumer. The wholesaler delivers the product to the retailer.
The objectives of marketing vary. For the individual producer or consumer, the objectives may be to recognize benefits from the resources available and to expand marketing operations in order to increase wealth. From a societal viewpoint, the objectives may be to encourage efficient allocation of resources, to create wealth and promote economic growth in order to improve the general welfare of society. Important considerations may also be to improve distribution of income between sectors of the economy and to maintain some stability of supply and demand for marketed goods. The concurrence of marketing objectives with national policy objectives would not be covered in this project.

 The vital role played by marketing has been consistently recognized ever since industries commenced producing goods and services for the end-users, i.e. consumers. According to Drucker (1991), marketing is so basic that it cannot be considered a separate or independent function. Instead, marketing involves seeing the whole business from the perspective of so-called “final” results viz. the customer’s point of view. In other words, business success is not determined by the producer but by the customer.
In our increasingly competitive business world, the importance and benefits of marketing to organizational effectiveness has been greatly emphasized as marketing now becomes more critical to the continuous survival and growth of companies. As companies strive to ensure future growth and profitability, they are turning to their marketing organizations to accelerate and guide their path. Marketing strategy plays a key role in directing corporate strategy for many companies. Channel, customer and consumer insights are proving critical to determine the success of businesses.
Companies seeking to revitalize their brand image, refocus their sales organization and streamline marketing processes realize the importance of ongoing strategic planning, brand differentiation, innovative new product introductions, connecting with their customers, and measuring marketing results. It is against this background that this research work aims to evaluate the relevance of marketing as a strategic weapon for organizations.

Statement of Research Problem
To make marketing work for organizations requires greater understanding of existing market systems. The research problem addressed in this project is to identify the major role played by marketing in the development of economy most especially that of Nigeria. In particular this project examines the specific roles played by marketing and its structure on the development of an economy.
Purpose of the Study
The aim of this research work is to identify knowledge gaps and provide appropriate background material for a proposed full-scale study of the relevance of marketing in the development of an economy.
The research objectives for the field component of a proposed larger study are:
1. Examine the importance of marketing research and planning;
2. Discuss the role of marketing mix in the fulfillment of organizations’ mission and vision,
3. Identify the role of market agents in the marketing systems;
4. Identify the barriers to effective marketing in Nigeria;
5. Identify good practice which can contribute to improved marketing systems;
6. Make recommendations for improving marketing systems in Nigeria.

Research Questions
1. What is the nature of marketing system in Nigeria?
2. What is the impact of new marketing concepts on the marketing of consumer products in Nigeria?
3. Does marketing play any role in contributing to the attainment of corporate objectives and strategies?
4. What are the factors that hinder smooth marketing system in Nigeria?
5. How could Nigerian food manufacturing companies improve their performances through strategic marketing practices?

Research Hypothesis
Ho: That marketing and all its components do not enhance organization performance.
Hi: That marketing and all its components enhance organization performance.

Significance of the Study
This research work shall be of great benefit to marketing students, practicing marketers, mangers, academicians and anyone that is interested in the field of marketing. The study shall elucidate the need for marketers and managers to embrace efficient and effective marketing strategies in today’s dynamic marketing environment and to seek to satisfy their customers’ wants and needs through a sound marketing plan. Also, the study shall serve as a wake-up call to all organizations to embrace the marketing philosophy against the background of the dynamic nature of the Nigerian business environment.

Scope of the Study
The primary focus of this study shall be to identify the roles and problems of marketing in the development of Nigeria Economy. Emphasis shall also be laid on the mechanics of marketing and the role it plays in the achievement of organizational objectives. The linkages between producers (the organisations) and the consumers shall be explored paying particular attention to the functioning of formal and informal market institutions.

DEFINITION OF TERMS

MARKETING:- This is the management process of identifying anticipating and satisfying the consumer wants profitability.

MARKETING CONCEPT:- This could  be defined as the guiding philosophy by  which organizations that have adopted a marketing orientation coordinate their activities to deliver the right goods more effectively and efficiently than its competitors.

MARKETING MIX:- This could be referred to as the combination of four major elements of the market offering. This includes the product mix, price mix, promotion mix and place mix.

MARKET:- This refers to an aggregate of people who, as  individuals or organizations have the needs for a product in class and who have the ability or potential power to acquire it.

TARGET MARKET :- A well-defined set of customers whose needs the company plans to satisfy.

PRODUCT :- they are offers the marketers makes to Buyers. This offer is in the form of goods and services.

PRICE :-  A price is a value or sum of money at which a supplier of a product or service agree to carry out and exchange transaction.      

PROMOTION:-    It's a controlled integrated programme of communication methods and material designing to represent a company.