Marketing, at its core, is an indispensable discipline for any organization aiming to thrive in a competitive marketplace. It encompasses a strategic set of activities designed to create, communicate, deliver, and exchange offerings that have value for customers, clients, partners, and society at large.
Meaning of Marketing
Marketing is far more than just selling or advertising; it is a holistic process centered on understanding and satisfying customer needs and wants profitably. The American Marketing Association (AMA) defines marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
Essentially, marketing begins with identifying what consumers desire and then developing products or services that meet those desires. It involves researching markets, segmenting target audiences, positioning offerings strategically, and employing various tools to promote, price, and distribute value effectively. The ultimate objective of marketing is to build strong, profitable relationships with customers by consistently delivering superior value and satisfaction, thereby achieving organizational goals.
Basic Terms in Marketing
Understanding the foundational lexicon of marketing is crucial for grasping its principles. The following terms represent the building blocks upon which marketing strategies are constructed:
- Needs: Basic human requirements that are fundamental to survival and well-being. These are not created by marketers but are inherent in the human condition. Examples include physical needs (food, water, shelter, safety), social needs (belonging, affection), and individual needs (knowledge, self-expression). Marketers identify these fundamental needs and then develop offerings to satisfy them.
- Wants: Specific forms that human needs take, shaped by culture, individual personality, and societal influences. While a person needs food, they may want a specific type of meal, like a Nigerian Jollof rice or an Italian pasta. Marketers influence wants by making specific products or services appealing and accessible, turning generic needs into specific desires.
- Demands: Wants that are backed by purchasing power and willingness to buy. A person might want a luxury car, but they only have a demand for it if they have the financial means and the intention to purchase it. Marketers analyze not only what people want but also what they can afford and are willing to pay for, aligning their offerings with effective demand.
- Product: Anything that can be offered to a market to satisfy a want or need. This broad term includes physical goods (e.g., a smartphone, a garment), services (e.g., a haircut, legal advice), experiences (e.g., a concert, a vacation), information (e.g., a news report), or even ideas (e.g., a public health campaign). A product delivers value to the customer.
- Exchange: The act of obtaining a desired object from someone by offering something in return. This is a core concept in marketing, as it represents the fundamental transaction between parties. For marketing to occur, there must be at least two parties, each having something of value to the other, a desire to deal with the other party, and the ability to communicate and deliver.
- Transactions: A specific type of exchange where two or more parties agree upon a set of terms and conditions for the exchange of value. A transaction is a trade of values between two parties. For example, when a customer pays N5,000 for a product in a store, a transaction has occurred. It implies a legal agreement and a formal record of the exchange.
- Markets: All actual and potential buyers of a product or service. A market is not necessarily a physical location but rather a collection of individuals or organizations with shared needs or wants who have the ability and willingness to engage in exchange to satisfy those needs or wants. Marketers analyze market size, characteristics, segments, and trends to identify opportunities.
History of Marketing in Nigeria
The history of marketing in Nigeria is a fascinating narrative that mirrors the country’s economic and socio-political evolution, transitioning from rudimentary trade practices to sophisticated, digitally-driven strategies.
- Pre-Colonial Era (Before 1800s): Marketing began informally in Nigeria with traditional communal trade. Barter systems were prevalent, where goods and services were directly exchanged without the use of currency. Local markets (e.g., ‘Eke’, ‘Afo’, ‘Nkwo’, ‘Orie’ in Igbo land; ‘Oja’ in Yoruba land) served as central hubs for farmers, artisans, and traders to exchange produce and crafts. Marketing in this era was characterized by direct interaction, word-of-mouth promotion, and reputation-based trust within communities.
- Colonial Era (Late 1800s – 1960): The advent of British colonial rule introduced Western commercial practices and paved the way for modern marketing. European trading companies like John Holt, UAC, and PZ established trading posts, importing manufactured goods (textiles, processed foods) and exporting raw materials (palm oil, cocoa). This period saw the introduction of monetary systems, fixed pricing, and rudimentary distribution channels. Advertising began to appear, primarily through print media (newspapers) targeting the nascent urban elite and providing information about new foreign products. The focus was largely on product availability and basic promotion.
- Post-Independence and Early Industrialization (1960s – 1980s): Following independence, Nigeria embarked on import substitution industrialization. Local industries emerged, producing goods previously imported. This led to increased competition, albeit limited, and a greater need for marketing functions beyond mere distribution. Brand awareness became more critical, and advertising via radio and television gained prominence. Sales promotion activities, like discounts and giveaways, also started appearing. However, the market was largely supply-driven due to high demand and limited local production capacity, meaning marketing was still somewhat rudimentary and focused on basic selling.
- Structural Adjustment Programme (SAP) Era (Mid-1980s – 1990s): The economic reforms of SAP, including deregulation and liberalization, dramatically reshaped the marketing landscape. The naira devaluation made imports expensive, boosting local manufacturing and intensifying competition. This era witnessed a significant shift towards more aggressive and sophisticated marketing. Companies began to invest heavily in market research, product differentiation, public relations, and a broader range of promotional activities. Concepts like customer segmentation and relationship marketing started gaining traction as companies fought for market share in a more competitive environment.
- Modern Era (2000s – Present): The new millennium ushered in an era of rapid technological advancement and globalization, profoundly impacting marketing in Nigeria.
- Technological Integration: The widespread adoption of mobile phones and the internet transformed communication. Digital marketing, social media marketing, and e-commerce platforms (e.g., Jumia, Konga) emerged as critical channels for reaching consumers.
- Customer-Centricity: Nigerian businesses increasingly recognized the importance of understanding specific consumer needs, leading to more tailored product development and sophisticated branding.
- Increased Competition: The influx of multinational corporations and the growth of indigenous conglomerates intensified competition across all sectors, necessitating innovative marketing strategies.
- Professionalization: Marketing became a more recognized and professional discipline, with a greater emphasis on data analytics, strategic planning, and measurable ROI.
- Informal Sector Influence: Despite modernization, the informal sector (local markets, street hawkers) continues to play a significant role, requiring marketers to adopt hybrid strategies that blend traditional and modern approaches.
Today, marketing in Nigeria is dynamic, characterized by a blend of traditional practices and cutting-edge digital strategies, all aimed at navigating a complex and diverse consumer landscape.
Functions of Marketing
Marketing is not a single activity but a collection of interconnected functions that work in synergy to achieve organizational objectives. These functions include:
- Market Research: The systematic gathering, recording, and analyzing of data about issues relating to marketing products and services. It helps in understanding customer needs, market trends, competitive landscapes, and identifying opportunities.
- Product Development & Management: Involves designing, developing, testing, and managing products or services from conception to withdrawal. This includes aspects like product features, branding, packaging, and developing new offerings based on market insights.
- Pricing: Determining the monetary value at which a product or service will be sold. This function involves considering production costs, competitor pricing, customer perceived value, and market demand to set competitive and profitable prices.
- Promotion: Communicating the value of a product or service to target customers to persuade them to buy. This includes advertising, sales promotion, public relations, personal selling, and digital marketing activities.
- Distribution (Place): Ensuring that products and services are available to target customers at the right time and place. This involves managing supply chains, logistics, warehousing, and selecting appropriate channels (e.g., retail stores, online platforms, wholesalers).
- Selling: The direct interaction with potential customers to persuade them to purchase a product or service. This can occur through personal selling, online sales, or direct marketing efforts.
- Financing: Securing the necessary funds for marketing activities and offering credit or payment options to customers to facilitate purchases.
- Risk-Taking: Marketing involves inherent risks, such as product failure, competitive actions, or changes in consumer preferences. This function involves anticipating and mitigating these risks.
- Standardization & Grading: Establishing and maintaining uniform specifications for products/services (standardization) and sorting products into different categories based on quality, size, and other characteristics (grading) to ensure consistency and facilitate exchange.
- After-Sales Service: Providing support to customers after they have purchased a product or service, including warranties, repairs, and customer support. This enhances customer satisfaction and loyalty.
These functions are not isolated but are integrated aspects of a comprehensive marketing strategy, all working towards creating, communicating, and delivering value to the customer while achieving business objectives.
References:
- Kotler, P., & Armstrong, G. (2018). Principles of Marketing (17th ed.). Pearson Education.
- American Marketing Association. (n.d.). About AMA. Retrieved from https://www.ama.org/about-ama/ (Please note: The exact definition cited is from AMA’s long-standing publicly available definition, often cited in textbooks like Kotler’s).
- Anyanwu, A. (2009). Marketing in Nigeria: Principles and Practices. Africana First Publishers. (Note: Specific historical details about Nigerian marketing often draw from regional texts and economic history accounts).
- Olakitan, O. (2015). Evolution of Marketing Practices in Developing Economies: A Case Study of Nigeria. Journal of Business and Social Sciences, 6(2), 45-60.
- Nwosu, I. E. (2004). Marketing Communication in the New Millennium: Theory, Principles & Practice. Afrika-Link Books.
