ENVIRONMENTAL, STRATEGIC AND RESEARCH IMPERATIVES FOR NATIONAL SELF-RELIANCE AND DEVELOPMENT

Professor Efiong John Etuk University of Calabar 29th October, 2003

PREAMBLE Mr. Vice Chancellor Members of Council and Senate Deputy Vice Chancellors (Academic and Administration) Deans of Faculties Directors of Institutes Mr. Registrar Distinguished Professors University Librarian Heads of Departments Members of the Academic Community Captains of Business and Industry My Lords Spiritual and Temporal Gentlemen of the Press Malabites and Malabresses Ladies and Gentlemen

It is indeed a great honour and privilege for me to appear before this august audience this afternoon, at the invitation of the Committee of Deans, to inaugurate the Chair of Marketing Management and Research in the Department of Marketing, Faculty of Management Sciences of this great University. Before I come to the nitty- gritty of the lecture, please permit me, first of all, to record my personal appreciation and that of entire staff and students of the Faculty of Management Sciences to our dynamic Vice Chancellor, Professor Ivan Ejemot Esu for initiating the move that led to the creation of our young Faculty. Our appreciation also goes to the Chairman and the entire members of the University Council and Senate for giving unalloyed support to the Vice Chancellor in his bold efforts to develop the University of Calabar. The creation of this new Faculty came almost eleven years behind schedule. I first proposed a Faculty of Management Sciences in 1993 during my first tenure as Dean of the Faculty of Social Sciences and Head of the then Department of Management Studies. Unfortunately, this proposal 1

did not see the light of day. as the previous Vice Chancellors did not appreciate the need or the urgency to create a new faculty, which they saw as additional financial burden upon their administrations. But thanks to the Late Professor Solomon O. Unoh, of blessed memory, who took the bull by the horns by splitting the erstwhile Department of Management Studies into separate Departments of Accounting, Banking and Finance, and Business Administration. comprising Business Management and Marketing. The Department of Business Administration and Marketing was again split in 2002 by Professor Ivara Esu into two separate and autonomous Departments of Business Management and Marketing, thus bringing the total number of departments to four. It is these four Departments that formed the nucleus of the new Faculty of Management Sciences that I now represent as the first Inaugural Lecturer and Dean. Mr. Vice Chancellor. Sir. I salute your courage and dynamism. I am very happy that you are here today in person to witness the result of your managerial craftsmanship. Please permit me also, Mr. Vice Chancellor to give a brief account of the developments in the Department of Marketing from its inception as a unit in the erstwhile Department of Management Studies in 1977 to 2002 when it became a frill-fledged Department of Marketing. The Marketing specialty area was designed to offer courses of instruction to undergraduate students specializing in Marketing proper as well as those specializing in the other areas of management namely, Accounting, Banking and Finance, Business Management, and Business Education. The Department also offers postgraduate courses jointly wit the Department of Business Management for the award of the Postgraduate Diploma in Management as well as the Master of Business Administration (MBA) degree. The Master of Science programme in Marketing has long been approved by the Graduate School but is yet to be implemented owing to the paucity of academic staff in the Department. Through these training programmes, all masterminded by me, the Department of Marketing has been able to contribute meaningfully to the development of high level manpower for the economy generally, and the Department of Marketing in particular. For example, of the seven full time lecturers in the Department, four have benefited directly from the undergraduate and postgraduate training programmes offered byte Department. To date, the Department has graduated over 1.500 students with B.Sc. degrees, 2,000 others with Masters (MBA) degrees, and 1,000 students with Postgraduate diplomas in Management. Quite recently, the Department has mounted a doctorate degree programme in Marketing to groom its young lecturers for academic leadership, with the hope that those who will graduate from the programme would not seek greener pastures elsewhere, but would continue to serve the University so as to improve the poor staffing situation in the Department. Research in the Department has right from its inception, focused on such areas of marketing as consumer behaviour studies, marketing research and innovation, pricing policies and strategies, distribution management, new product development, advertising and other promotional mix elements, and legal and international aspects of marketing. But like most other departments within the Faculties of Management Sciences in the Nigerian Universities system, the Department of Marketing in the University of Calabar has continued to suffer acute manpower shortages. The Department currently has one Professor, one Lecturer 1, two Lecturers 2, two Assistant Lecturers, and one Graduate Assistant. Despite this problem, the Department of Marketing has continued to receive more applications for admission than it can comfortably accommodate. 2

Now that I have set the records straight for students of history and having given honour to whom honour is due, I shall now go ahead and introduce the topic of my lecture, which is entitled, Marketing-Management Dyadic Interfaces: Environmental, Strategic and Research Imperatives for National Self- Reliance and Development. My choice of the topic was motivated by the desire to reflect on my experiences both as an ardent practitioner and a committed researcher. Beginning from August 10, 1979 when I joined the defunct Department of Management Studies as Lecturer II, I have been enmeshed not only in the teaching of marketing and strategic management courses, but I have also been preoccupied with research in the areas of business environment and policy, marketing and business research methods, marketing management strategy, and industrial and international marketing. In the course of my presentation, I intend to lead the audience to see what happens in marketing, how it happens, and how marketing interfaces management at the environmental, strategic, and research levels and the implications of such dyadic relationships for national self- reliance and development. The lecture is divided into six sections: 1. Introduction; 2. Definitional considerations and clarifications; 3. Marketing management from environmental and strategic perspectives; 4. Marketing strategy and the strategic planning process; 5. The strategic marketing model as a planning tool; and 6. Marketing research in national self-reliance and development.

I.

INTRODUCTION

I am about to take you on an exciting, important, and necessary exploration of a discipline called Marketing. Marketing is as exciting as it is diverse and complex because it combines the an and science of management with many other disciplines such as economics, psychology, anthropology, sociology, history, geography, jurisprudence, mathematics, demographics, and so on to mould its identity. Marketing is thus an eclectic discipline which aims at stimulating intellectual curiosity in those who study it by enabling them to absorb and understand the phenomenon of market- based exchange. The study of marketing has been compared by a group of scholars to mountain climbing in that it is challenging, arduous and exhilarating (Czinkota, Kotabe and Mercer. 1997). Marketing is important and necessary in society for it is a fundamental human activity; it takes place all around us every day of our lives, and is crucial to the survival and success not only of firms and individuals, but also of nations. Effective management of marketing activities holds the key to. arid promise of, an improved quality of life, a better society, and even a more peaceful world. How does marketing create peace, you may wonder? Please listen for a moment to the following excerpts from an article by Farmer (1987) explaining how marketing creates peace:

One of the biggest surprises of the postwar era has been that historic enemies such as Japan and the United States, or France and Germany have not had the remotest threat of 3

war since 1945. Why should they? Anything that Japan has and (America) wants can be exchanged on very easy credit terms. So why fight for it? Similarly why should the Japanese fight the United States and lose all those profitable markets? France and Germany, linked intimately through marketing and the European Union, are now each others largest trading partners. Closed countries build large armies and waste money on guns and troops; open countries spend their money on new machines and tools to crank out Barbie dolls and consumer electronics. Their bright young people .figure out how to run the machines, not how to fire the latest missile. For some reason, they not only get rich fast hut also lose interest in military adventures. Japan, that peculiar superpower without super guns, confounds everyone simply because no one has ever seen a major World power that got that way by selling you to death, not shooting you to death. In short, if you do a great deal of trade with someone, why fight? The logical answer- you dont - is perhaps the best news mankind has had in millennia. But important as marketing is to human existence, world peace and national development as shown in the above examples. a lot of confusion surrounds and beclouds the subject. Some even refer to marketing as buying and selling; others look at it from the point of view of advertising, promotion, trading, or physical distribution. But marketing is more than what the trader does nor is it just the gimmicks of advertising. It embraces these concepts taken jointly. For, just as the elephant in J. G. Saxes (1937) poem The Six Blind Men of Hindostan is neither the ear, the sturdy side, the tusk, the trunk, nor the tail that the blind men of Hindostan touched and claimed to be the elephant. marketing embraces all the descriptions often accorded to it. Today marketing has become a subject of increasing interest to individuals and organizations, be they profit making or non-profit making enterprises. It is becoming broader in both nature and scope than ever before. But if we delve into the history of marketing thought. we would see that marketing is not as recent as we would like to believe, it had its beginnings in prehistoric days when people started to trade or barter accumulated surpluses particularly agricultural surpluses. Such bartering or trading was the chief means by which people satisfied their needs and wants. For example, in Africa generally and Nigeria in particular, historical records are replete with evidences that trade had flourished between the black inhabitants of the Western Sudan and the Berbers of North Africa as far back as 1000 BC or earlier (see for example Dike, 1956; Collins, 1951; Hopkins, 1973; Etuk: 1975:1 985e: and Nwabara, 1976). In Europe, too, writings about activities that are now part of modem marketing appeared in England as early as 1875 under the title, The History of Advertising (Czinkota, et al; 1997). These however, were primitive beginnings of marketing because until the turn of the twentieth century, earlier publications contributed very little to the history of marketing thought. Modem marketing therefore originated in the United States during the early 1960s when researchers started to focus their research efforts on the satisfaction of customers needs and wants instead of focusing their attention primarily on improving production methods so as to increase output and sales. Therefore, in order to place modern marketing in proper perspective, it would be necessary to explore and clarity the subject in order to demystify it to non-marketers. 2. DEFINITIONAL CONSIDERATIONS AND CLARIFICATIONS

Marketing encompasses a wide range of activities that include not only buying and selling but also customer services, pricing, advertising, public relations, product and service planning, marketing research, retailing, warehousing, transportation, and granting of credit (Evans and 4

Berman, 1982). Maybe this is why there are as many definitions of marketing as there are authors on the subject. A few definitions are presented here to show the breadth and diversity of the field called marketing. We begin by first examining the Statement of Marketing Philosophy as presented by the Marketing Staff of the Ohio State University, who in 1965 had the following to say about marketing: Marketing has been described by one person or another as a business activity; as a group of related business activities; as a trade phenomenon; as a frame of mind; as a coordinative, integrative function in policy making; as a sense of business purpose; as an economic process; as a structure of institutions; as the process of exchanging or transferring ownership of products; as a process of concentration, equalization, and dispersion; as the creation of time, place and possession utilities; as a trade phenomenon; as a process of demand and supply adjustment; and as many other ....... We have felt it necessary to conceive of marketing in a manner sufficiently comprehensive to encompass other viewpoints, which may be narrow or more specialized. Accordingly, we have formulated a definition of marketing as follows: Marketing is the process in society by which the demand structure for economic goods and services is anticipated or enlarged and satisfied through the conception, promotion, exchange, and physical distribution of such goods and services.

Other definitions of marketing as identified from the literature are as follows: 1. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals (Bennett, 1995). Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others (Kotler, 1993). Marketing is the managerial process by which goods and services are developed to match the needs or wants of a chosen consumer segment (Etuk, 1995). McCarthy (1978) views marketing from two perspectives: micro marketing and macromarketing perspectives. He defines micro marketing as the performance of those activities which seek to accomplish an organizations objectives by anticipating customer or clients needs and directing a flow of need satisfying goods and services from producers to customers or users. He sees macromarketing as a socioeconomic process which directs an economys flow of goods and services from producers to customers in a way which effectively matches heterogeneous supply capabilities with heterogeneous demand and accomplishes both the short run and long run objectives of society. 5

2.

3. 4.

The foregoing definitions of marketing present several components, which need further clarifications in order for one to fully understand their meaning and implications. First, marketing is seen as a process meaning that every marketing activity goes beyond a single transaction. What this implies is that marketing aims at developing lasting ties and relationships among producers and customers. The terms planning and executing as used in the definitions, suggest that marketing is a continuous process that comes alive through its application of the strategic planning process in practice. Product, pricing, promotion, and place (distribution) are the variables used by the marketing decision maker in planning and executing his functions. These controllable variables have come to be known as the 4 Ps making up the marketing mix or the marketing decision variables. Human needs and wants are the starting point for the discipline of marketing. A need is a state in which we feel deprived of some basic satisfaction whereas a want is a desire for specific satisfiers of the deeper needs (Kotler, 1993). Demands are wants for specific products backed up by ability to pay. Exchange clarifies that something is given and something is received by participants in the marketing process. Individuals and organizations are the participants in the exchange process. Exchange will continue to take place in the market as long as the participants in the exchange process are satisfied or made to feel better off after a particular marketing transaction has taken place. In other words, the price paid by the buyer must be equal to or less than the total satisfaction obtainable from the bundle of benefits received. This can be illustrated in a simple marketing management exchange equation as follows: Y=f (X,X2,X,) Where Y = Price of a product in Naira = the product and its attributes which include quality, size, colour K, = Channels of distribution used which could be direct or indirect; and = Effective methods of promotion used such as advertising, personal selling, sales promotion, publicity, and public relations. Marketers can manipulate either or both sides of the equation to attain their objectives. By either actually lowering the price (or making it appear lower), or increasing the degree of satisfaction offered to customers (through improved quality of goods or services, providing greater time and place utility, or more effective promotion), or both. exchanges can be stimulated. This process of manipulating the marketing management exchange equation involves making decisions with respect to the 4 Ps in such a way that the exchange equation is kept in balance.

Marketing does not apply only to goods, but also to services and ideas. Goods are tangible products like cars, apparels, books, radio and television sets, whereas ideas and services are intangible in that they cannot be seen or touched although we derive satisfaction from them. 3. MARKETING MANAGEMENT FROM ENVIRONMENTAL AND STRATEGIC PERSPECTIVES Marketing is a sub-area of general management as illustrated in Figure 1. Therefore, concepts and constructs that are used in management also have relevance for marketing. Just as husbands and wives share common affinities and dyadic relationships, marketing and management share common concepts such as organization, controlling, environment, strategy, planning, research and other languages of communication, commonalities that are found both in marketing and management theories and applications. Herein lies the truth in the maxim that every marketer is a manager and every marketing manager a decision maker. That we have a course called marketing management and none called management marketing tends to suggest that management has the upper hand in its dyadic relationship with marketing. Thus, successful marketing is not achieved haphazardly; but it is achieved through the application of an analytical approach to the process of decision-making. Marketing management is that function of general management that adopts and uses scientific management principles and functions to improve the effectiveness of exchange by planning, organizing, controlling, and locating its activities at the interface between the firm and the ever-changing external environment. This explains why marketing management may be said to encompass all the decisions involved in designing and executing marketing plans in order to implement the marketing concept (Guiltinan and Paul, 1985).

Source: Etuk, E. J. (1995) Foundations of Modern Business Management (Calabar: Unical Press) p.244.

Over the years, marketing managers have adopted a series of philosophical approaches to the study of marketing decision-making. Two of such approaches are the marketing concept approach and the environmental approach. The marketing concept approach directs the marketer to develop the product offering and indeed the entire marketing programmes, to meet the needs of his customers. The environmental approach, on the other hand portrays the marketing decision maker as the focal point of numerous environments within which the marketing firm operates and which affect the success of the firms marketing programme. Since this presentation adopts the environmental, strategic, and research approaches in its analysis, it would be necessary and proper to delve into these approaches a little further, using theoretical frameworks to discuss the elements that make up the external environments of marketing namely, the physical environment, the socio-cultural environment, the economic! technological environment and the politico - legal environment. Thereafter, I shall examine the rudiments of the strategic planning process in marketing.

The External Environments of Marketing

A lot has been written on the concept of the environment as it relates to business management generally and marketing management in particular (see for example, Buell, 1985; Etuk, 1975; 1985; 1995; Schewe, 1987; Chisnall, 1975; Aguilar, 1967; Guiltinan and Paul. 1985. Kotler, 1993). According to Etuk (1985), the environment generally refers to external factors that surround and potentially affect the activities and behavior of a particular business organization. But when used in marketing, the environment refers to the uncontrollable actors and forces that impact on the companys market and marketing (Kotler, 1993). The environment surrounding a marketing firm can be likened to the layers of an onion, which when cut horizontally as in Figure 2, shows that the components of the environmental model are interrelated and interdependent. This means that each marketing environmental variable affects and is in turn affected by the others. The horizontal line that forms the base upon which the curved lines converge explains the systematic nature of the marketing environmental system. This model identifies four different types of macro - marketing environments namely, the physical environment, the socio-cultural environment, the economic technological environment, and the politico-legal environment. Each of these environments is made up of factors that cannot be controlled by the marketing decision maker although they shape and direct his operations. Let us look at each of the environments in order to examine how they influence marketing planning generally and the formulation of marketing policy and strategy in particular.

The Physical Environment

The physical environment of marketing comprises the natural environment, which exists apparently independently of man and includes such elements as geology, land forms, climate, 9

animals species, vegetation, etc. and the man-modified environment, which results from centuries of human effort and technological development. Both the physical environment and the natural environment jointly set the parameters within which marketing practices and strategies operate. The natural environment comprises all raw materials derived from the earth. Such raw materials may be classified into infinite resources like air, finite renewable resources such as forest and agricultural products, and finite non-renewable resources like petroleum, coal, silver and other minerals. The man-modified environment would include the countrys political structure including national boundaries as well as infrastructural facilities like roads, railways, airways and market centers all of which are the results of mans activities and machinations. Marketers need to understand the threats and opportunities associated with the current trends in the physical environment. For example, while our nation derives a greater percentage of its foreign exchange earnings from the export of crude petroleum and gas abroad, we seldom think seriously about the dangers and threats that these resources pose to the immediate environment by way of air and water pollution and gully erosion in areas where solid minerals like gold and coal are mined. What of rising prices when these minerals have been depleted? Can we imagine what the price of petrol, kerosene and gas would be in the next fifty years or so? Therefore, marketing firms using these finite, non-renewable resources or being involved in their exploitation like the NNPC, Mobil, Shell, Agip, and other oil companies not named here must not only think of the ways to preserve these resources for generations yet unborn, but they must seek alternative sources of supply or diversify their operations into the production of other products, or develop new substitute materials. Similarly, furniture and food manufacturing companies engaged in the use of renewable resources like timber and food crops such as rice, cassava, yams, etc. must learn to employ reforestation techniques in order to protect the soil and ensure continuous supply of wood and food items for future use. Food supply in particular will continue to be a major problem in Nigeria since arable land is relatively fixed and much of it will lose its fertility if it is allowed to be eroded without being protected. This is why environmentalists constantly preach the gospel of ecology and pollution control, realizing that only a safe environment can maximize life quality.

The Socio-cultural Environment The socio - cultural environment of marketing is a catchall term for the social and cultural environment of our marketing system. It consists of sociological, economic and political institutions that direct social values and norms. Such institutions include the family. reference and pressure groups, business firms, educational system, the church, and so on. These institutions, groups, and the society in general are constantly changing in terms of what they consider desirable and acceptable ways of living. These changes can have a profound impact on individual attitudes toward products, and toward marketing and political activities. Recently in Nigeria for example, the role of women both in politics and at work has changed significantly. This change is obviously of considerable significance to politicians and employers of labour as more and more women in recent years are not only holding top political appointments, but they also hold top positions in business, commerce and industry. This change is of more significance especially to marketers who supply services to women. Therefore, any marketer who continues to assume that the average Nigerian woman is a traditional housewife, 10

depending mostly on the husbands largesse for the supply of all her needs would stand the risk of losing a large segment of the Nigerian market since women constitute a large percentage of that market. Because marketing functions within the constraints imposed by the social and cultural values of the society, those engaged in marketing and management must try to understand the socio-cultural environment and how its institutional characteristics affect the marketing organization generally and the marketing system in particular.

The Economic/Technological Environment The economic and technological environment comprises those factors that influence consumer purchasing power and patterns of spending. These include competition, economic policies, changes in income, inflation, recession, scarcity of resources, all of which affect virtually every aspect of the marketing management process. Technology is a major component of culture and it includes methods used in solving economic problems such as low productivity unemployment and under employment. Technological advances widen the range of goods and services available to members of society and therefore, the range of choices available to consumers. The nations rate of economic growth hinges on how many new technologies are discovered by way of innovations. The marketer thus faces the challenge of being able to adapt his marketing plans and strategies to the constantly changing economic and technological environment.

The Politico-legal Environment Marketing decisions are strongly influenced by factors that have come to be grouped under the politico-legal environment. These include laws, government policies and regulations. Although many laws and regulations are usually not designed specifically to address marketing issues, yet they can and usually have a major impact on an organizations -opportunities. For example, the banning of the importation of certain raw materials like wheat in this country during the early 1 980s has had a serious impact on the Nigerian bakery industry. The same is true of the current ban on the importation of poultry products. and textile materials. Marketers who have attempted to flout the law in this regard have always lost millions of naira when such products are confiscated by the Nigerian Customs Authorities. The marketing manager whether he operates nationally or internationally should be aware of the legal aspects that directly affect his companys operations. Such aspects include government regulation of product characteristics, like product quality and safety standards, packaging and labeling, credit terms and conditions of sale, and government regulation of unfair competition in the areas of advertising, non advertising promotional methods, trade marks and trade names, and patents which come under the branch of business law known as intellectual property law.

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4.

MARKETING STRATEGY AND THE STRATEGIC PLANNING PROCESS

A question that we need to ask and attempt to answer in this lecture is: What has knowledge of marketing environment to do with the study of strategic marketing management? Or put in another way: How do marketing environmental variables influence the study and practice of marketing generally and the formulation of marketing policy and strategy in particular? Answers to these questions are not far fetched but can be derived from the foregoing theoretical discussion of the scope of marketing macro environment. To say the least, marketing environmental variables directly or indirectly influence marketing policies and decisions in a number of ways. We shall next focus on how this comes about. Modern marketing is a diverse, complex and dynamic field. It operates in an environment that is not only equally complex, but which in addition may undergo continuous and sometimes cataclysmic change (Etuk, 1985). Because marketing is part and parcel of not only the society, but also the environment in which it functions, its study requires both a sound knowledge of the general principles that guide its practice and a thorough knowledge and understanding of the external forces that help to shape its values. For example, in the 2000s and beyond, no marketing manager, indeed any manager can initiate a successful marketing strategy without taking the societal environment into account, since marketing decisions are inextricably linked to the socioeconomic surroundings. But it is not the environment alone that influences marketing decisions; the actions of marketing organizations also influence the environment. The massive tides of change that are transforming our society in recent years come about as the direct results of th e impact of marketing organizations on society. Therefore, marketers need to constantly study and understand the relationship between marketing and society generally and the elements that constitute the marketing - society interface in particular. The general technique that marketers use to analyze the strengths, weaknesses. opportunities and threats that the environment holds for the marketing organization is known as environmental analysis and the special tool used for it is known as environmental scanning. These are discussed below

Environmental Analysis A lot of factors have an influence on the future development of the marketing organization. For example, inflation and the scarcity of raw materials may pose a formidable threat to the company: new social mores may distort consumption habits of society; civil war in any part of a nation may create shortages of products in some parts of the nation. Every business derives its existence from the environment and so one of the major purposes of environmental scanning is to discern new opportunities, which should be classified according to their attractiveness and the success probability that the company would have I with each opportunity. Therefore, ability of the marketing executive to analyze the environment is the key to the continued growth and I development of his company. Such analysis is known as environmental f scanning which focuses not only on analysis of the strengths, weaknesses, opportunities and threats which have come to be known by the acronym SWOT analysis but also on the structure 12

of the industry the company is already in, or a new one the company is contemplating on entering. The aim of environmental scanning is to predict growth, profitability, and especially the key factors or opportunities that would ensure the future success of the enterprise. For this reason environmental scanning is often designed primarily to aid the strategic planning process rather than the tactical activities of the company. A I survey of corporate environmental scanning activities in the United Stales by Auster and Choo (1994) found that Chief Executive Officers who experienced greater environmental uncertainty, that is, were facing environmental threats tended to do more scanning. This study I concluded by showing that such executives are most interested in keeping themselves informed about their customers, government regulations, and the current state of competition. It has also been shown that environmental scanning has some drawbacks or weaknesses. A study by Winter and Prohaska 1983) for example, had noted that in those constructs and frameworks where the environment has been given primary consideration, there has been a tendency for the approach to become so global that studies tend to become shallow and diffuse, or impractical if pursued in sufficient depth. These problems notwithstanding, environmental scanning still remains the most vital tool for evolving strategic environmental monitoring systems, which are formalized approaches for monitoring change on a continuous and systematic basis. To understand and appreciate how this is done, we shall next turn our attention to strategic marketing planning.

5.

THE STRATEGIC MARKETING MODEL AS A PLANNING TOOL

The marketing manager, it has been asserted, is a strategist ingers lie ahead of his men. He does this through the formulation of strategy. Strategy is an abstract concept. In the most basic sense, strategy is the overall mission of the organization and the set of means for utilizing resources to accomplish the mission (Baird, Post and Mahon, 1990). H. Igor Ansoff, a leading expert on the subject elaborates further on the concept of strategy by saying that it is . . . a set of decision the sense that he faces environmental obstacles, which he must carefully handle if the is not to wreck his business. Strategy is a word that is derived from the Greek word strategos meaning generalship. Like an army general, the marketing manager must always look ahead down the terrain to see what dan making rules for guidance of organizational behavior. Wise strategy is based on a hard, objective look at the setting or the environment in which the business operates. Therefore, the greatest challenge to a modern marketing executive is the ability to manage change that takes place in the environment. This is so because the success of his operations depends significantly on how he is able to adapt the direction and the operation of his enterprise to shifts in the environment. To identify shifts that may create opportunities or threats for a specific enterprise, regular scanning of four sources of change is desirable. These are social, technological, political, and economic sources of change, each of which has already been examined in the previous sections of this lecture. Successful scanning .of the environment would enable the marketing manager to better understand how to satisfy his customers or clients needs for information, convenience, reassurance of service, and constant

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availability of his products (Paine and Naumes, 1982). The decisions made to achieve these goals make up strategy. What then is marketing strategy? Kay (1993) describes strategy in the following words:

The subject of strategy analyzes the firms relationships with its environment and a business strategy is a scheme for handling these relationships. Such a scheme may be articulated, or implicit, pre-prograjnmed. or emergent. We can conclusively say that a strategy is a sequence of united events which amounts to coherent patterns of business behavior... Successful strategy is rarely copycat strategy. It is based on doing well what rivals cannot do readily, not what they can do or are already doing. Jam (1993) perceives a firms marketing strategy to comprise the F pattern of major objectives, purposes, or goals and essential policies and plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be. Strategy therefore specifies direction. Its interest is to influence the behavior of competitors and the evolution of the market to the advantage of the strategist. In short, strategy seeks to change the competitive environment to the advantage of the strategist. Let us next examine the strategic marketing model as a tool in planning strategy. In doing this, we shall draw our examples from a study, which I carried out in 1994 for a management consulting firm in Cross River State. The study focused on internationalization and strategic marketing of tourism for trade balancing.

The Strategic Planning Process In Marketing Strategic marketing refers to aspects of the marketing process that are concerned with ensuring that an organization is viable and that its resources are adapted to its environment in a way that permits efficient achievement of the organizations goals, using appropriate courses of action with acceptable degrees of risk. Strategic marketing therefore concentrates on the market to be served, the competition to be tackled, and the timing of marketing entry! exit and related moves. Each component of a strategic marketing plan entails judging whether to continue with things as they were or make dynamic changes. The task of managing strategy, therefore, is a dynamic process. It involves the ability to monitor and adjust the strategic plans so that they remain current and the marketing organization remains responsive to its environment. Strategic marketing comprises five stages that make up the strategic marketing model as presented in Figure 3 below. These stages are: I. Analysis of the current environment. Ii. Establishing the goals and mission of the organization

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Iii Development of strategic options Iv. Choosing the best alternative or option; and V. Implementing the strategic option. We shall next examine these steps in some detail and relate them to the tourism industry.

Step 1: Analysis of the Current Environment for Tourism

The first step in strategic marketing as was applied to the tourism industry was to analyze the current environment for tourism business to determine the strengths, weaknesses, opportunities and threats that were likely to present themselves. A threat is an unfavorable trend or situation that would result in reduced success if no forceful action were taken by the organization. But an opportunity is an unsatisfied want or need that arises from a change in the organizations environment. Threats and opportunities in the tourism industry were identified by asking and answering the following questions: As tourism marketers, what do we do so well that it requires no change in strategy? What areas of tourism operation in Nigeria need improvement? What steps should be taken to achieve such improvement? By asking and answering these questions. directors of tourism organizations were able to determine their areas of weaknesses which, according to them were in the areas of poor quality of services rendered to tourists, lack of facilities, lack of adequate security, and lack of financial resources to compete effectively with their counterparts in other countries. The major strength was cheap manpower when compared to what is happening in say the United States or Great Britain.

Environmental scanning was also used to comprehensively research and analyze the tourism industry in Cross River State. This took into consideration factors such as impact of global and national economies on the Nigerian tourism industry, governmental policies that promote or inhibit tourism development in the country, and who the countrys major competitors are in the tourism business. It was felt that answers to these questions enabled tourism managers determine where they currently were and where they would like to be in the industry in about five to ten years from the time the study was conducted.

Step 2. Mission and Goals of Tourism Organizations

A thorough assessment of the environmental conditions in the Nigerian tourism industry enabled the tourism managers to develop statements of their mission. A statement of organizational mission broadly addresses the overall goals of the organization. In the Nigerian 15

tourism industry for example, the goals should be concrete enough to show why a particular tourist organization exists and what it should become a few years from now. Such goals are concrete definitions of the organizations mission. For example, within the mission of providing comfortable lodging and recreational facilities to tourists who need and desire them, some of the tourism companies said they had overall goals of establishing a national network of hotels, motels, catering and recreational centers to serve the needs of local and foreign tourists.

Step 3: Developing Strategic Options

Given a thorough analysis of the environment and the determination of their strategic mission as indicated already, tourism marketers were then able to develop strategic options or alternatives for achieving their mission. Their alternative strategies were either aimed at increasing the number of foreign tourists coming into the country generally, and the Cross River State in particular, expanding their individual tourism organizations geographically, or diversifying into other businesses. The aim of each alternative was to improve the profitability of each company, or to increase the organizations market share, which would be marked by an increase in the number of foreign tourists coming into the country generally, and Cross River State in particular.

Step 4: Choosing the Best Options

Where several strategic options were developed as in the above example, it became necessary for top management of the organizations to choose the best alternative to follow depending on their financial strength. For example, if the Cross River State Tourism Board was contemplating on implementing the second option above, that is, geographical expansion of its Obudu Cattle Ranch, it would have to take into consideration what it would cost the State Government to establish a similar resort else where in the state or other parts of the country, say the Mambila Plateau.

Step 5: Implementing the Strategic Option Implementation involves bringing the strategic option into reality. As such, it usually requires the full range of general management talents and marketing skills to plan, organize, direct and control the implementation of the marketing strategy. It should be noted from the foregoing analysis that an attempt was made to relate strategic marketing techniques to the marketing of tourism in Cross River State. In so doing, attention was focused more on aspects of strategic marketing planning because unless we plan at 16

the corporate level, decision-making approaches as to all aspects of an organizations strategy in the market place can become elusive. But the following points should be noted about strategic planning generally and strategic marketing planning in particular. 1. Managers usually do not go through the planning sequence in a rigorous, lockstep fashion. 2. The tasks involved in strategic marketing management are never isolated from everything else that falls within the marketing managers purview. This means that marketing managers do not only manage strategy, but they also manage other marketing activities although managing strategy may be their only function. 3. Strategy formulation and implementation should be regarded as an ongoing process; therefore, the task of strategizing should not be looked upon as a once and for all proposition.

6.

MARKETING RESEARCH DEVELOPMENT

IN

NATIONAL

SELF-RELIANCE

AND

Research is another area in which marketing and management share a common boundary. Research is not peculiar to marketing and management alone, but cuts across all fields of human knowledge be it in the physical sciences, the social sciences, the arts, or the humanities. It is the process of finding solutions to problems by systematically gathering, according. analyzing, and interpreting data which would facilitate the identification and solution of a marketing problem (Etuk, 1985 b). This definition is concerned more with applied rather than basic marketing research. Applied marketing research applies the knowledge acquired through research in solving practical marketing problems while basic research aims only at extending or expanding the frontiers of knowledge. In the previous sections of the lecture, we referred to environmental analysis and scanning as the means through which the marketing manager analyzes threats and opportunities facing his organization from the environment and how he uses such information to plan and implement his marketing strategy and control his marketing performance. We need to add here that it is not enough for the marketing manager to scan the environment; he must in addition devise a method for constantly monitoring events from within and without his marketing environment. This will enable him to link his organization with happenings in the environment. The method for doing this is applied marketing research. Through applied research in marketing, the marketing manager would be able to x-ray events within the environment, analyze market opportunities, forecast present and future demands for his products, and venture into new product innovation and development. In this part of the lecture therefore, we shall explore the path to national self-reliance and development through marketing research. We shall end the lecture with summary, conclusion, recommendations and policy implications.

17

Marketing Research and Self -Reliance Self -reliance refers to a national frame of mind, which emphasizes development from within the system rather than dependence on foreign assistance. It is a type of development. Philosophy that emphasizes national economic independence and survival fostered by innovation and creativity through the use of research (Etuk, 1989). The overall objective of scientific research is to provide adequate information and technological package for the necessary and subsequent development of the various sectors of the

national economy. For a country to be able to attain self reliance and development, its citizens must learn to apply and adapt the results of scientific investigations to the solution of national economic problems. Herein lies the role of marketing research in the development of a selfreliant economy. The path to the development of a self reliant economy calls for the application of marketing research in four specific areas of activity namely, new product research and development, motivation, advertising and sales research. Each of these is examined below.

1. Product Research and Development

Marketing perceives self- reliance as the creative application of science and technology to the development of new products or services for the satisfaction of the citizens of a nation. A new product is one which consumers perceive to be new either because it is really innovative or because it is significantly different from existing products, or it is an imitative product that is new to a particular economy or company. A new product therefore, may be a new type of food, a new machinery, or a new method or technique of doing things. Through marketing research, an economy can establish for the engineer, the design and manufacturing man what the consumer wants in a given product, what price he is willing to pay, and where and when it will be wanted. The most important strategy of any economy in the modern world is ability to develop a product line that meets the needs of its citizens. In developing a product strategy, a nation must clearly identify its objectives in the market place. This is what Nigeria attempts to do in its development plans. But unfortunately, such objectives are usually more of clichs than clear objectives. For example, one of the objectives of our development plans particularly the Fourth National Development Plan, 1981 - 85 was greater self- reliance, that is increased dependence on our own resources in seeking to achieve the various objectives of society. What did we mean here? Have we ever really thought of ways of adapting products like cars and their spare parts to the Nigerian environment now that the demand for cars has increased by leaps and bounds? Are we still not importing twenty-year-old Tokunbo cars and spare parts into the country or readymade parts to assemble them at Kaduna twenty-two or more years after the Peugeot 18

Automobile Plant of Nigeria was set up? What of food items? Are we still not depending on foreign food imports at the expense of our indigenous food items like fresh fruits and vegetables? To what extent has the slogan: Comot eye for oyibo food; if we eat our own food, we go save money! helped to change the attitudes of Nigerians toward local food items? In Etuk (1986) in which we studied marketing practices and strategies of Nigerian manufacturers, we found that most of our manufacturing companies do not adapt foreign products to the Nigerian environment, and if they did at all, the rate of adaptation was minimal. Rather, most of the manufacturers that participated in the study said they employed product extension policies by assembling from imported raw materials or completely knocked down parts products that are replicas of those developed and successfully marketed elsewhere by their parent companies. Most of them also said they did not undertake any product research and development activity but merely assembled those products that allowed maximum use of patent company technology and know-how Marketing research can make significant contributions to self -reliance in the following aspects of the product research and development process:

* Idea Generation: Ideas can come either from personnel in the various research institutes based on technologies developed in their laboratories: from government agencies; from competitors, trade associations, consultants, or from venture teams. A venture team is ideal for idea generation. It is usually designed to avoid product development problems found in the traditional organizational structures such as reluctance to change, bureaucratic bottlenecks, and lack of authority to move the product up the developmental stages. * Screening: In screening, the various ideas generated are screened and examined to see which one meets our national development objectives. * Product Testing: In product testing, effort is aimed at obtaining reactions of potential buyers as to whether the product is successfully developed to meet their tastes or not. * Test Marketing: This involves the procedure by which the new product is offered for sale in a limited representative geographic area like Cross River and Akwa Ibom States or whether it can be distributed nationally. * Commercialization: This is the last stage in the new product development saga. At this stage, the new product is produced and launched in the market.

19

In planning for new products, the product life cycle concept should not be overlooked. Marketing research is ideal for identifying what stage of the life cycle a product is in and how quickly it will pass into the next stage. Armed with such information, marketing management would be in a better position to predict what marketing strategies and tactics would be ideal for exploiting the market opportunities to the maximum degree. In other words, marketing research provides the necessary insights for choosing those new product items, which would incur the least economic waste.

2.

Motivation Research

Another area of applied research in marketing that has relevance for self-reliance and development is motivation research. This branch of marketing research attempts to determine the whys and wherefores of human behavior in the market place, that is, why consumers buy one brand or type of product instead of competing alternatives. A self-reliant nation must not only be able to develop new products, but such new product must be accepted by the majority of its citizens. In our country for instance, it is an up-hill task for government to convince Nigerians to prefer to buy bread made from local corn or cassava instead of those made from imported wheat flour; to eat locally produced rice instead of Uncle Hens; to use local woven wax cloth instead of Dutch wax; or to drink beer made from maize instead of barley, etc. A study of the preferences of Nigerians for made in Nigeria clothing by Udoekpo (1981) for example, found that 58.82 males and 59.62 females preferred imported clothing. Preference for foreign made products is one of the attitudes of a colonized people. Unless a country is able to understand the attitudes, beliefs, assumptions, sensations and motives of its people toward local products through research, it becomes extremely difficult to change the attitudes and behavior patterns of its citizens toward self-reliance by preferring to consume more locally made products. Motivation research is the only answer in this case as it will help us to identify the attitudes, motives and assumptions of Nigerian consumers and then channel such attitudes to the production and consumption of locally made goods.

3.

Advertising Research

Advertising consists of paid messages designed to inform or persuade buyers or users about a product, service, belief, or action (Guiltinan and Paul, 1985). This definition shows that advertising applies not only to products or services but also to beliefs or actions in what is called social marketing, which attempts to influence the behavior, beliefs, and attitudes of individuals or groups in society for predetermined ends (see Etuk, 1985 c).

20

Self- reliance as a social concept calls for understanding and support by the masses. Such understanding and support can be attained only through effective social advertising or social cause marketing. Since advertising is relatively expensive, it must be carefully planned and evaluated. Adverting research focuses on three areas: content, media, and effectiveness. Content research deals with how well an advertisement conveys the message to ensure attainment of objectives; media research examines the best media mix to use to attain the objectives; while effectiveness research attempts to analyze the total impact of the advertising campaign on the targeted audience. The importance of advertising research to self- reliance can be summarized as follows: a. Good communications programmes developed through advertising research can generate information that will enhance awareness and knowledge about local products, beliefs or services and the company or government agency offering the products or services. A good example is family planning, which has been adopted by a good percentage of Nigerian families because of the efforts devoted to its promotion. b. Attitudes can be influenced if not totally changed. For example, through the war against indiscipline (WAL), and National Orientation Agency (NOA) campaigns, a good number of Nigerians have been influenced significantly to change their negative attitudes or behavior and this has led to greater self confidence, which is the key to self- reliance.

4.

Sales Research

Marketing management relies heavily on information generated through sales research in setting policies and in planning and controlling marketing operations. Broadly, sales research covers sales forecasting, market and sales analyses, sales territory evaluation, inventory control, and salesmens performance. Sales forecasts fall into micro and macro forecast. Micro forecasts focus directly on product sales forecast, market sales forecast and territorial sales forecast. Macro forecasts are broader in scope, encompass more than the nations immediate environment and include regional forecasts, national economic forecasts, industry forecasts, and world forecasts. Regional forecasts provide information about regional trends such as population growth within say West Africa; national forecasts deal with forecasts of future business activity such as gross national product; while world forecasts deal with world trends such as population growth, energy and food production and consumption, etc. Effective application of sales research in our national economic planning would make it possible for us to determine correctly the market potentials of most of our national projects before projects such as refineries, fertilizer plants, meat and fruit canning factories actually take off. In so doing, we would avoid either producing below capacity, thereby creating serious disequilibria in the market place as is usually the case, or overproducing, that is producing more than the market can bear. Such irregularities, in my view, would not make for self-reliance and 21

development. A good example of disequilibrium in the Nigerian market is the perennial fuel scarcity in the economy, which always forces the government to import the difference between what we need to survive as a nation and what we actually produce ourselves. This statement is as true in agriculture as it is in manufacturing.

SUMMARY AND CONCLUSION

We have examined in this lecture the concept of marketing from managerial, theoretical and practical perspectives. Specifically, we have shown that marketing and management are closely interrelated and dyadically interface each other, sharing commonalities that cut across theory and practice particularly in the areas of environmental analysis and scanning, strategic planning, and applied research. We have shown too, that no marketing manager who does not have a thorough knowledge and understanding of environmental factors that impinge upon marketing decision making can successfully plan his strategies and develop his marketing policies and programmes since marketing decisions are inextricably linked to the socioeconomic surroundings. Environmental analysis and scanning are the means for constantly analyzing the strengths, weaknesses, opportunities and threats within the environment so as to predict organizational growth and profitability. But marketing research constantly monitors events and developments within the marketing environment. It is also the means for analyzing market opportunities, forecasting present demands for products, and for determining how to venture into new product innovation and development. Marketing research has a central role to play not only in organizational planning but also in national planning toward the attainment of national self- reliance and economic development. This conclusion is based on the fact that no economic development programme can succeed either in the private or public sector of our economy, which is not based on sufficient marketing information about the environment and the characteristics of the prospective consumers. We have presented in this lecture quadripartite marketing research path to national self reliance and development through product research and development, motivation research, advertising research, and sales research. Marketing research can make significant contributions to self- reliance and development in such areas of product innovation and development as new idea generation, screening of new product ideas, product testing, test marketing, and commercialization of the new product venture. Through motivation research, our marketers would be able to understand the attitudes, beliefs, assumptions, sensations, and motives of our consumers. Through advertising research we would be able to generate information that would enhance national awareness and knowledge about local products or services, the agencies offering the products or services, and by so doing attitudes of our people could be influenced if not totally changed. Through sales research we would be able to obtain marketing information by way of micro and macro economic forecasts, regional forecasts, or world forecasts. Effective application of sales research in our national economic planning would make it possible for us to plan our national projects with facts and figures rather than without such facts and figures, as is presently the case in the oil and agricultural sectors. 22

In summary, marketing research by enabling us to gather, record, analyze and interpret data about events in our environment ensures a free flow of information for effective strategic planning and control.

POLICY RECOMMENDATIONS AND IMPLICATIONS

Based on the foregoing summary and conclusion, we make bold to offer the following policy recommendations: 1. Since marketing decisions are inextricably linked to the socioeconomic surroundings, it is recommended that marketers should constantly monitor the environment within which they operate through the use of environmental analysis and scanning. Such analysis should focus on the strengths, weaknesses, opportunities and threats that the environment holds for both domestic as well as international marketers.

2.

Our national economic planners should attach greater importance and give adequate recognition to research generally and marketing research in particular when formulating national development policies and drawing our national development plans.

3.

Our manufacturers should not only be interested in adapting foreign products to the Nigerian market, but they should also stimulate more interest in product research that would result in the development of prototype products from locally sourced materials. This recommendation, by implication, is challenging top Nigerian engineers and marketing managers to conceptualize, design, and develop new products of their own that may or may not necessarily be prototypes in themselves, but which would depend entirely on local raw materials, machineries and spare pans. This is the gospel according to national self- reliance, marketing research and development.

4.

It does seem abundantly apparent from the foregoing that any country that aims at accelerating the pace of its economic development cannot succeed if it distances itself from marketing and marketing research. For, while marketing aims at getting the right product to the right place at the right time, marketing research aims at getting information which would help in identifying a marketing problem or opportunity, determining the issues dimensions and magnitudes, enumerating and evaluating the alternative solutions, selecting the right courses of action, and following through. For this 23

reason, it is strongly recommended that marketing academics and practitioners pay particular attention to the research needs of both private and public sectors of the economy in their research efforts.

5.

Because no economy can reasonably develop without a conducive atmosphere for basic and applied research, the federal and state governments are strongly urged to cooperate with all federal and state universities in Nigeria, whose academic staff are instruments for research, as well as the Nigerian Marketing Association (NIMARK) and the Chartered Institute of Marketing of Nigeria in ensuring the development of a sound marketing research policy which is necessary for research programming and funding.

6. As a corollary to Recommendation 5 above, the Federal Government of Nigeria is strongly urged to establish a National Marketing Research Institute and saddle it with the responsibility of planning marketing activities by collecting, collating, and disseminating agricultural and commercial marketing information to the various states of the federation. It is my dream that such a National Institute should be made an appendage of the Office of National Planning since I consider marketing planning to be one of the most important components of our national economic development planning.

Mr. Vice Chancellor, Ladies and Gentlemen, I would like to end this lecture with words of acknowledgement to those who have played and are still playing significant roles in my life. I acknowledge first my God, for making me who I am; my Late father, John Udoaka Etukakpan. and my Late mentor, Bishop John Essiet Ettefia, Founder and first Bishop of Mount Zion Lighthouse Full Gospel Church for the philosophy of life they instilled in me. I thank my wife, Mrs. Mfon Etuk, all my children, my parents- in- law, Elder (Chief) and Mrs. Edet S. Essien, and all my friends too numerous to name them one by one here for their wonderful support and encouragement. I also thank all my past and present students (both undergraduate and graduate) as well as businesses and companies that have allowed me to use them as guinea pigs in the course of my teaching and research. Finally, I thank this wonderful audience for patiently listening to my odyssey. May God grant all of us a safe journey back to our various homes. In Jesus name.

24

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