CHAPTER ONE INTRODUCTION 1.1     BACKGROUND TO THE STUDY

Made in Nigeria goods are goods manufactured in Nigeria. This means that all or parts of the components of the goods are sourced directly in Nigeria. The Nigerian government has over the years encouraged industries in Nigeria to produce goods with the aim of boosting growth and the rapid industrialization of the nation’s economy.

Industrialist on their own part has been engaged in the production of variety of goods ranging from non-consumable goods to consumables under the Small and Medium Scale Enterprises (SMEs).

Governments and development experts have recognized the SME sector as a potential engine of economic growth and a major factor in promoting sector development and partnership. It is estimated that the Micro, Small and Medium Enterprises (SMEs) account for most of total industrial employment, production and value-added. It is the SMEs that generate the industrial wealth of the nation and hold the key to real economic development and wealth creation. The SMEs therefore truly represent the vital component of Nigeria’s industrial system. In this context, the same holds true for the economies of most nations. SMEs are generally distinguished by the nature of their production and management arrangement, trading relations, financial practices, and internal competence.

Before the indigenization of industries in Nigeria, the Nigerian market was flooded with foreign products and Nigerians have been used to the consumption of these imported goods. But with the change of events it became paramount for Nigerians to patronize made in goods if the goals of economic development set by the government are to be achieved.

A discourse on the marketing of made in Nigeria goods and the challenges associated with it is very significant at the present stage of the nation’s economic development process especially in view of the unstable macroeconomic environment and the slow pace development in Nigeria. The Nigeria government has done so much to ensure the rapid economic

Development of the country through the promotion of the sales and marketing of goods manufactured in Nigeria with the view of increasing the output of goods and services as well as enhance the society’s well being.

Marketing made in Nigerian goods has been an uphill task especially with the rising cost of operations faced by the manufacturers coupled with the unhealthy competition that made in Nigeria goods have to face with imported goods that have been banned by the Nigerian government. Manufacturers were facing increased competitions; a few started to do heavy advertising and sales promotion. They offered umbrellas, radios and other “come-ons” and attracted new customer accounts. Manufacturers found a new competitive tool when they began to segment their markets and innovate new products for each segment. There is a higher concept of product marketing. The issue is whether the manufacturer has installed effective systems for marketing analysis, planning, implementation and control.

Even then, the question now arises as to how do the Nigeria manufacturers perceive marketing? Perception has been defined as “the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world”. Perception depends not only on the physical stimuli but also on the stimuli’s relation to the surrounding field and on conditions within the individual.

The Nigerian government has done a lot to stimulate consumer’s interest in Made in Nigerian goods. Various incentives have been given to the manufacturers and the government has through its relevant agencies such as the Nigeria Export Promotion Council and the various Chambers of Commerce and industry facilitate the exposure and marketing of Nigerian made goods. Despite these effort manufacturers still face a number of challenges and this can be attributed to a number of factors.

Thus, this study shall attempt to evaluate the challenges of marketing made in Nigeria goods with a view of assessing the various factors that constitute hindrances to the efforts of the manufacturers and the government towards the realization of this objective. Also the study will examine the perceptions of Nigerian towards the marketing of made in Nigeria goods so as to identify factors that will stimulate acceptability and growth in this sector. The study shall focus on Kaduna and its environs.

1.2     STATEMENT OF THE PROBLEM

Manufacturers of made in Nigeria goods initially did not see marketing as one of their functions. But the growth in the economy, which stimulated the improvement in the standard of living of the people, made the taste of Nigerians for foreign goods to be high at the detriment of made in Nigeria goods, which they perceived to be of inferior quality.

Innovation in areas of new product development and offering coupled with the sophistication in the nature of customers demands for foreign goods and services has thus made it necessary for manufacturers in Nigeria or the industry as a whole to embrace marketing and its concept in totality.

But this has not been easy as some manufacturers have divergent perceptions as to what role or what contributions will marketing make to the growth and profitability of the industry.

The growing sophistication of consumers and their passion for foreign imported products and services thus became a problem for manufacturers and the managers of the Nigerian economy.

The cost of marketing activities in Nigeria has also continued to be on the increase. For manufacturers to meet up with operational costs and make a little margin it means that they have to go an extra mile to convince Nigerians to patronize their products.

Another problem is in the area of quality of the goods; most Nigerian made products are of sub standard quality when compared with the foreign imported products. This therefore constitutes a great problem to the marketing of the goods. Rapid improvements in technology have also contributed to the problems faced in the marketing of made in Nigeria goods.

Most Nigerian manufacturers do not have access to the Internet and in the modern day the place where most marketing transactions are concluded is on the Internet.

1.3     OBJECTIVES OF THE STUDY

The main objective of this study is to examine the challenges of marketing made in Nigeria goods.

The study also has the following specific objectives:

1. To examine the components of made in Nigeria goods
2. To evaluate the perceptions of Nigerians towards made in Nigeria goods.

iii.      To highlight the various strategies put in place for marketing made in Nigeria goods

1. To examine the challenges in marketing made in Nigeria goods
2. To suggest appropriate strategies for addressing these challenges
3. To evaluate efforts made by Nigerian manufacturers and government towards effective marketing of made in Nigeria goods.

1.4     RESEARCH QUESTIONS

The following questions will be addressed in the course of this study:

1. What is marketing and how do Nigerian manufacturers market their goods?
2. What the importance of marketing to the manufacturers is of made in Nigeria goods?

iii.      What the major components are of made in Nigeria goods?

1. What are the challenges confronting manufacturers of made in Nigeria goods
2. What are the strategies that can be adopted to address these challenges?

1.5     RESEARCH HYPOTHESIS

The following hypotheses has been developed and would be tested in the course of this study:

Ho:    Marketing of Made in Nigerian goods does not have any significant challenge

Hi:     Marketing of Made in Nigerian goods has very significant challenges

1.6     SIGNIFICANCE OF THE STUDY

Marketing contributes to the growth and survival of business entity in Nigeria. Hence a study of this nature is justified by the benefits to be derived from it by the stakeholders in the manufacturing industry as it will touch on various issues that centers on marketing made in Nigerian products.

The study is also significant in the sense that it will examine the challenges of marketing made in Nigerian goods.

The study will also serve as a contribution to knowledge and would be useful as a reference/guide to policy makers, operators in the industry and future research endeavours with similar dispensation.

It is also expected that recommendations that will emanate from this discourse will serve as an important data for the manufacturers, regulatory authorities and customers hence it will be a contribution to knowledge.

1.7     SCOPE OF THE STUDY

In view of the pivotal role the manufacturing industry plays in the economy, with a wide and varied clientele, any study involving the industry will perhaps involve many people for it to be more meaningful.

1.8     DEFINITION OF TERMS

Marketing: 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.

Perception: The way in which motivated individuals perceive a given situation that determines how precisely they will behave.

Value: Consumer’s estimate of the products overall capacity to satisfy his/her needs.

Market: Consists of all the potential customers sharing a particular need or want who might be willing and able o engage in exchange to satisfy that need of want.

Belief: A descriptive thought that a person holds about something.

Attitude: A person’s enduring favorable or unfavorable evaluations, emotional feelings and action tendencies toward some object or idea.

Quality: The totality of features and characteristics of a products or service that bear on its ability to satisfy stated or implied needs.

Satisfaction: A person’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.

Customer Delivered value: Is the difference between total customer value and total customer cost.

Total Customer Value: Is the bundle of benefits customers expects from a given product or service

Total Customer Cost: Is the bundle of costs customers expect to incur in evaluating, obtaining and using the product or service.

Marketing concept: Is a business philosophy which holds that the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets.

Relationship Marketing: Is the practice of building long-term satisfying relations with key parties customers, suppliers, in other to retain their long term preference and business.

Customer service: Activities between the buyer and seller that enhance or facilitate the sale or use of the seller’s products or services.

Benchmarking: A management tool for comparing performance against an organization that is widely regarded as outstanding in one or more areas in order to improve performance

Strategy: A specific action, scheme or method to achieve a given objective.

Total Quality Management (TQM): A management approach in which managers constantly communicate with organizational state holders to emphasize the importance of continuous quality improvement.

Marketing Mix: Is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market.

Made in Nigerian Goods: Goods that are completely manufactured in Nigeria

Electronic Commerce: The act of buying and selling goods and services online.

Globalization: The interplay, cooperation and integration of the various countries of the world into global village.

Innovation: The act of altering something to make change and then introducing the result as a novelty.

Internet: A computer network made up of thousands of network worldwide which enables any computer anywhere in the world to be linked to it.

SME: Small and Medium Scale Enterprises

Stock Exchange: Secondary markets where already issued securities are bought and sold by members.

System: Set of Interrelated or Integrating Elements

Working Capital: Current assets and current liabilities.

Source: Robbins, S.P (1998) Organizational Behaviour: Concepts, Controversies and Application.