STUDY ON THE PROBLEMS AND PROSPECTS OF MARKETING INDUSTRIAL PRODUCTS IN ENUGU STATE
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STUDY ON THE PROBLEMS AND PROSPECTS OF MARKETING INDUSTRIAL PRODUCTS IN ENUGU STATE
Chapter one
INTRODUCTION
1.1 Background of the Study
This research focuses on the issues and potential of marketing industrial products in Nigeria. This paper focuses on a few select production enterprises in the Enugu city.
The researcher selects to employ Emenite Nigeria Limited, Alo Aluminium, and Ozomac Company as case examples. These manufacturing enterprises focused on the production of roofing and other building materials.
These businesses are located in the Enugu city of Enugu State. Emenite Nigeria Limited is situated at Emene Industrial Layout, Enugu. Alo Aluminium Company is located along the Abakaliki Motorway in Emene, Enugu, whereas Ozamac Construction Company is located on Trans Ekulu in Enugu.
Emenite is a franchise company owned by Etex Group. This company’s corporate offices are in Belgium. Emenite manufactures with 60% locally sourced raw materials. The company started off as a roofing sheet manufacturing.
The current situation has shifted from a roofing sheet sector to a full-service construction materials manufacturer. Alo Aluminium and Ozomac Construction are indigenous firms.
They employ 100% local raw materials in their manufacturing. They began as roofing sheet companies before expanding into building material production companies.
These companies have distributors in several locations throughout Enugu. These organisations improve their performance through a strong distribution channel, the availability of genuine items, and efficient after-sales services.
Evolution of Marketing
Marketing is both an old and new profession. Marketing is ancient in the sense that commerce and trade have existed since the beginning of time.
The introduction of the barter system, together with the principle of division of labour and the promotion of specialisation, resulted in the production of surplus.
People began producing more than they needed of certain things, making trade (change), which is at the heart of marketing, inevitable. Marketing began to evolve in earnest when small producers began to produce their goods in large quantities in anticipation of future orders;
middlemen with their institutionalised channels then appeared on stage to facilitate the communication of buying and selling of the resulting increased output. The industrial revolution provided the necessary push to marketing, resulting in mechanisation and the subsequent hunt for mass marketing.
The novelty of the course marketing stems from the fact that marketing is now dispersed across sectors such as selling, advertising, price, production, design packaging, branding, and physical distribution. These are the primary concerns of marketers.
The establishment of specialised sales departments had a significant role in resolving the organisational problem of market expansion. There was a problem interacting with customers,
but manufacturers were forced to delegate certain marketing functions to middlemen. Initially, goods and services were sold to retailers, who then resold them to end users.
Industry and Manufacturing Background
The history of industrial growth and manufacturing in Nigeria is a great example of how a country can overlook a critical sector due to policy inconsistencies and imbalances caused by the discovery of oil.
Agriculture has been almost completely neglected, depriving manufacturers and industries of their principal source of raw materials. The lack of locally obtained resources has resulted in limited industrialization.
Today, Nigeria’s industries and manufacturing sector account for less than 10% of the country’s GDP, with industrial capacity utilisation remaining below 35% for the most of the past decade.
Nigerian industrial and manufacturing players are divided into four categories: multinational, national, regional, and local. Aside from multinational operators, the majority of players have disappeared in the last two decades as a result of unpredictable movement regulations and a lack of essential raw materials, the majority of which are imported.
Some of the constraints faced in this area are:
§ High interest rates.
§ Unpredictable government policy
Non-implementation of current policies.
§ Lack of effective regulatory agencies
§ Infrastructure deficiencies
§ Dumping of low-cost products
§ Unfair tariff regime.
§ Low patronage.
Globalisation and liberalisation present issues for the Nigerian manufacturing sector. The impact of these global protections includes a greater emphasis on product quality and increased spending on research and development.
Manufacturing prospects in Nigeria are promising due to the country’s embryonic democracy, a market size of more than 120 million people, the West African market’s vast mineral and other resource base, and cheap and plentiful labour.
Developing Nigeria’s industrial sector necessitates the combined efforts of the government and the private sector to create an environment that encourages investments, mostly by Nigerians,
as a foundation for attracting and sustaining foreign investment in the industry. A well developed industrial sector creates a solid foundation for long-term economic growth and development.
Most businesses’ primary goal is to make a profit. This goal is met when items and services are delivered to end users or customers at the appropriate location, time, and price. Firms rely on customers to sell their products.
Marketers are no longer unsure whether their products are needed in the market, but they are interested in learning about the challenges associated with industrial product marketing.
The study of challenges and prospects for marketing industrial products enables marketing managers to gain insight into what is driving the problems and prospects for marketing industrial products in Nigeria. It is also critical to understand the root cause of the problems and potential solutions.
Emenite, Aluminium, and Ozomac construction enterprises, for example, are interested in learning about the challenges associated with industrial product marketing.
The pressing requirement and responsibility for industrial product manufacturers and marketers is to identify the aspects or variables that cause the most problems in marketing industrial products.
1.2 Statement of the Problem
In today’s marketing landscape, it has always been difficult to pinpoint the specific aspects that cause difficulty while promoting industrial products.
Most marketers have focused on elements that they believe are the root cause of the problems rather than how to address them. The reason for this is that marketing strategy created for a certain product or sector failed to get the desired and targeted results.
The fundamental issue here is to understand how these issues affect industrial products in the marketplace:
· Unorganised marketing system.
· Product adulteration.
• Lack of efficient marketing information system.
· Unpredictable government policy.
· Price instability.
· Lack of efficient regulatory agencies.
· Poor management.
Imported products do not compete well in the market research.
Based on this, the following research questions must be answered.
1.3 RESEARCH QUESTIONS.
Has the problem of unorganised marketing had an impact on the marketing of industrial products?
If you answered yes to the above question, what should industrial product marketers do to address this issue?
1.4 Objects of the Study
Every marketing plan has an objective that it aims to attain. In most cases, the declared objectives are not met. In light of this, the issue remains: are there any more elements outside those listed in the problem statement that influence industrial product marketing?
The study’s aims are:
1. To determine how an organised marketing system affects the marketing of industrial products.
2. Identify the most appropriate distribution channel for industrial items.
3. Establish proper market research.
4. Establish an effective marketing information system.
5. To make appropriate suggestions in light of the findings.
1.5 The Significance of the Study
According to modern standards, the successful use of promotional tools supplements an organization’s work in achieving certain marketing objectives, such as brand/product development, while also complimenting other dimensions of the marketing mix.
In this sense, this study aims to shed additional insight on the marketing of industrial products in Nigeria. The topic of this study is critical to the revitalization of the Nigerian economy.
The importation of industrial products into the country contributes to the current rate of inflation since it causes our economy to run a deficit.
1.6 Research Hypotheses:
The following hypotheses were developed during this study in response to the research questions and objectives. The hypotheses were tested during the study process.
1. The pricing of industrial items has a considerable impact on their marketing.
2. Product preferences strongly impact industrial marketing.
3. A lack of sufficient marketing communication impedes the efficient marketing of industrial products.
1.7 Scope of the Study
This study focuses on only three production enterprises in the Enugu metropolitan. This means that the empirical investigation only included the employees of these companies and their distributors.
Despite the limited scope of the study, it is believed that the findings would be valuable to both the staff of these companies and students interested in pursuing a career in marketing.
1.8 Definition of Terms
Marketing strategic planning is the process of selecting and directing the complete action of the marketing organisation within the policy guidelines to meet the firm’s objectives and goals.
Physical distribution refers to the tasks involved in planning and implementing the physical flow of resources and finished items from points of origin to places of use in order to meet consumer needs while being profitable.
Producer Markets: A group of organisations that purchase items with the intention of using them in the production process to profit or achieve other goals.
Organisation marketing refers to efforts that are conducted to create or change the attitudes and/or behaviours of target audiences towards a specific organisation.
Merchant Middlemen: Businesses such as wholesalers and retailers that acquire, sell, and resell merchandise.
A marketing system is a collection of interacting individuals, marketplaces, and flows that operate in an organised arena of exchange.
Marketing channel: A means of organising the effort required to deliver commodities from manufacturers to end customers.
Harvesting strategy: A marketing approach in which a company significantly decreases its expenses in order to improve its current profits, knowing that this will accelerate the rate of sales fall and ultimately lead to the product’s extinction.
Distribution structure: All arrangements in a specific industry for getting items from producers to users.
Containerlization is the process of packing goods into boxes or trailers that may be conveniently transported between two or more modes of transportation.
Evoked Set: The set of options that the buyer might have considered at that point in the decision-making process.
Closed and question: A question in which possible responses are provided.
Functional Marketing Organisation: A type of marketing organisation in which different marketing functions are led by independent managers who report to the marketing vice president.
The macro environment refers to all of the key external institutions and factors that may be important to the firm.
Open-ended inquiry: A question that the reply can answer in his or her own words.
Market Potential: The limit reached by market demand as industry marketing expenditure approaches infinity, for a given set of competitive prices and environment.
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