| Why Marketing is philosophy of business
– Ganiyu Koledoye, President, National Institute of
Marketing of Nigeria (NIMN)
By OMODELE ADIGUN
Monday,
October 22, 2007
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Koledoye
Photo: Sun News Publishing |
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He believes that marketing is the soul and body of business
because people from any background can possess marketing vision
plus experience and then graduate into becoming marketing
philosophers.
He also says that Marketing has some legal and societal roles
to play because the nation always desires its input in the
marketers’ dynamic developmental phases.
But Mr Abdul Ganiyu Koledoye, the president of the National
Institute of Marketing of Nigeria (NIMN), is not happy that
the noble profession is not living up to its responsibility
in Nigeria because of the division in the house of marketers.
The marketers are at one another’s throats in a battle
royale for supremacy on whose duty it is to regulate the practice
of Marketing in the country. For the benefit of the uninformed,
before the coming of the last administration, two professional
bodies were in the business of regulating the marketing profession
in the country. But on July 22, 2003 , the former President
Olusegun Obasanjo signed into law the NIMN Act 25 of 2003.
The Act fused the two professional bodies contending the right
to regulate marketing practice into one body known as the
National Institute of Marketing of Nigeria (NIMN), thereby
proscribing the two erstwhile professional institutes namely,
the Chartered institute of Marketing of Nigeria (CIMN) and
the Nigeria Institute of Marketing (NIMARK).
Since the Act was enacted in 2003, three ministers of commerce
have come and gone, but the two defunct professional bodies
are laying separate claims to ownership of the National Institute
of Marketing of Nigeria (NIMN).
Lamenting the sad scenario, Koledoye said: "We are pained…
The Marketing profession is suffering. The country is missing
our desired input into the current dynamic developmental phases
of the nation."
He mentioned the now suspended Naira re-denomination policy
as one of the phases where the nation is in dire need of the
contribution of the institute.
His words: "Recently, the Federal Government announced
the suspension of the process of the re-denomination of the
Naira on account that the policy, if implemented as proposed
by the Central Bank of Nigeria (CBN), it feared it would lead
to hyper-inflation and thereby negate the potential benefits
envisaged from the denomination exercise. We are of the view
that the proposal has some merit and, therefore, should not
be jettisoned wholesale. If it is the decision of the government
to implement the policy fully or in a modified form, it is
going to be a strategic monetary intervention which would
greatly impact on Naira as a medium of exchange in the domestic
markets on the one hand and between producers and consumers
in the country and the international markets on the other."
On what role NIMN would play, he said: "Marketers accept
responsibility to secure value for the consumers. It is the
responsibilities of government to adopt appropriate policies
and intervention to enable locally produced goods to be competitive.
It is inhuman, unfair and unjust to keep consumers in a perpetual
stage of valuelessness. Marketers would adopt the highest
level of social responsibility in ensuring that the policy
translates to increased choice and satisfaction to the consumers.
On our part, if the proposed policy is implemented, the National
Institute of Marketing of Nigeria (NIMN) would establish a
"Price Watch Committee" as part of its marketing
social responsibility function. The committee would be charged
with the responsibility for monitoring the marketing activities
of member organizations and guide them on their responsibility
to customers and the public in the course of implementing
the new monetary policy. It would be the duty of the committee
to draw the attention of the public to erring organization."
From the above, one can then understand why Koledoye is pained
about the problem bedeviling the institute.
Despite the problem, he assured lovers of the profession that
hope is not lost as all hands are on the deck to bring everybody
under one umbrella, so that NIMN can move forward.
Hear him:
"You would appreciate that since I assumed office, I
have done everything within my powers to bring dissenting
members into the fold. I met with Chief Emokpere, Professor
Etuk (in Calabar) and Professor Ifeanyi Achumba to prevail
on them to let us resolve their grievances amicably. I also
met Professor Julius Onah (in his Enugu base) who, like me,
took up the challenge to ensure that the misunderstanding
is resolved. The erstwhile minister of commerce and industry,
Dr Aliyu Modibbo Umar, also did his best to reconcile the
institute. The present Minister of Commerce and Industry,
Chief Charles Ugwu, has directed that the factions should
reconcile and unite as one body. He has given a period of
three months for us to meet and trash out perceived differences.
After which he has threatened to wield a big stick. We would
support the minister wholeheartedly in order to ensure that
Marketing assumes its legal and societal responsibilities
in the country.
Going down memory lane, the NIMN boss painfully painted the
picture of how the marketers found themselves in the current
impasse, the efforts made so far in resolving the disputes
and the way forward. He also delved into other issues such
as the problems facing the textile industry, which he attributed
to marketing failure and why the Federal Government should
go back to the suspended Naira re-denomination policy. Excerpts:
NIMN crisis
Well, you will recall that on September 19, 2003, a unified
transition council was inaugurated in compliance with the
provisions of the NIMN Act of 2003. During the inauguration,
the following four members out of the six originally elected
to represent the defunct NIMARK group, namely, Alex Ogunsakin,
Daniel Ayozie, Ogunmola Oyedeji and Chief Chris Okafor along
with four members of the defunct CIMN were elected to form
the Council of NIMN. Since then, some remnants of the NIMARK
group have disowned the involvement of some of their members
and have since embarked on various intrigues which have brought
the Marketing profession into disrepute. Despite our justified
position, we were persuaded by the counseling of the former
minister of commerce, Dr Aliyu Modibbo Umar, who insisted
that we should revisit the inauguration of the transition
council, so as to bring about lasting peace. So, the supervising
ministry desires that we should revisit our previous action
and that precisely is what we did.
On January 20, 2007, the erstwhile minister, Umar, invited
us and the other group laying claim to the NIMN to attend
a meeting for the inauguration of a unified Transition Council.
But we arrived at the Ministry of Commerce in Abuja only to
meet the absence of the Chief Emokpere-led faction of the
defunct NIMARK group. Instead, we received a court summons
restraining us from participating in the unified Transition
Council and also restraining the minister from carrying out
the exercise.
Ban on non-marketers
The statement made by Chief Emokpere that his group would
regulate the practice of marketing and ensure that non-marketers
would not be allowed to practise marketing in Nigeria is borne
out of ignorance and mischief. First and foremost, these people
cannot give what they do not have. They are factions of the
defunct NIMARK which declined to honour the letter and spirit
of the NIMN Act of 2003. Secondly, even though, the NIMN Act
empowers the NIMN to regulate the practice of Marketing, it
does not mandate us to exclude any individual, whether indigenous
or foreign, interested in practising marketing from doing
so. The Act laid out the precise procedures which such individual
must undergo in order to become a chartered marketer. You
should understand that Marketing is a philosophy of business;
therefore, people from any background can possess the marketing
vision and experience. However, the fundamental educational
development of the individual is what we are asked to regulate.
We are to ensure that irrespective of people’s background,
they possess the academic competence to practise marketing
and from that level, to graduate into becoming marketing philosophers.
We are not mandated to police or do any hatchet job or to
coerce people to become members.
I also fear that there might be some other sinister motives
behind the pronouncement. First, it might be intended to coerce
unsuspecting public with such misrepresentation, so as to
defraud them. Second, it is borne out of inferiority complex
because the the faction of the defunct NIMARK group are peopled
by those who grew through the ranks or qualified from overseas
in unrelated fields in the 60’s and the 70’s and
formed themselves into a club. They do not want to see any
newly and genuinely qualified marketers in their group. They
refer to the young qualified marketers as upstarts who should
be banished. How on earth do you explain the hypocrisy? Chief
Emokpere himself is an economist. He worked in the Central
Bank in his useful years and retired into private practice.
He now leads the splinter group after six years tutelage under
Taiwo Fagbemi. I am not aware that the Chief has ever attended
formal education in Marketing. Besides, most of his supporters
are on their way to retirement or have even retired. Should
these people be allowed to destroy the future of Marketing?
As far as I am concerned, any individual who regards himself
as responsible should avoid this kind of misdemeanor.
Way forward
You would appreciate that since I assumed office, I have done
everything within my powers to bring dissenting members into
the fold. I met with Chief Emokpere, Professor Etuk in Calabar
and Professor Ifeanyi Achumba to prevail on them to let us
resolve their grievances amicably. I also met Professor Julius
Onah in his Enugu base who, like me, took up the challenge
to ensure that the misunderstanding is resolved. The erstwhile
minister of commerce and industry Dr Aliyu Modibbo Umar, also
did his best to reconcile the institute. The present Minister
of Commerce and Industry, Chief Charles Ugwu, has directed
that the factions should reconcile and unite as one body.
He has given a period of three months for us to meet and trash
out perceived differences. After which he has threatened to
wield a big stick. I would like to assure you that we are
pained by the actions of the breakaway group. The Marketing
profession is suffering as a result of their action. The country
is missing our desired input into the current dynamic developmental
phase of the nation. We would support the minister wholeheartedly
in order to ensure that Marketing assumes its legal and societal
responsibility in the country.
Naira re-denomination
Recently, the Federal Government announced the suspension
of the process of the re-denomination of the Naira on account
that it feared that the policy if implemented as proposed
by the Central Bank would lead to hyper-inflation, thereby
negating the potential benefits envisaged from the denomination
exercise. We are of the view that the proposal has some merits
and, therefore, should not be jettisoned wholesale. What the
government requires now is healthy discourse on how the policy
would impact on each segment of society and from there, the
final decision should be left to the government whose responsibility
it is to aggregate the different views and positively pilot
our course as a people and as a country.
If it is the decision of the government to implement the policy
fully or in a modified form, it is going to be a strategic
monetary intervention which would greatly impact on the Naira
as a medium of exchange in the domestic markets on the one
hand and between producers and consumers in the country and
the international markets on the other.
In reviewing the proposed monetary policy, it is important
to state from the outset that we at NIMN are conscious of
the fact that the policy was not conceived to be and it is
not a revaluation of the Naira. We also hold the view that
whatever medium of exchange and exchange rate policies adopted
by a country transcends pure economic principles and rational
measurements. As marketers, we are aware of the importance
of such factors as psychological variables, such as: sentiments,
feelings, perception, learning and complex state of mind as
expressed in frustration, hope, happiness etc in appraising
the value of an item.
Valueless currency
The government should know that the current naira denomination
has failed the consumers. Today, the coins are not accepted
in the market as medium of exchange. It is now collector’s
items. Similarly, lower denominations of the Naira are not
appreciated and have less flexibility for effective business
transactions. Because of this, we see the proposed policy
as an intention to enhance the face value of the Naira. The
new Naira notes and coins, specified by the Central Bank,
if introduced would possess higher face value per unit compared
to what currently obtains. Though, this does not amount to
revaluation of the unit of currency as it now stands. However,
it is believed that receivers of the new denominated naira
coins and notes would receive greater value per unit compared
to the existing denominations. For example, one kobo will
translate to one naira worth of value and one Naira will translate
to N100 worth of value. Psychologically, consumers of the
new Naira notes and coins, who are individuals and corporate
organizations, within and outside the country would probably
be happier than when they perceived the existing notes as
worthless. Hence, it is plausible to posit that the new notes
and coins if implemented, as proposed, fully or partially,
would make consumers, who are individuals and corporate organizations
happier and satisfied. It is our view that the current denominations
have failed the critical test of giving satisfaction to the
consumers who are the populace.
Making consumers happy
Listening to the various commentators so far, this point has
been missed. The ‘experts’ fail to acknowledge
the fact that the primary function of governments must be
predicated on making receivers and consumers of its products
and services happy. Making consumers happy and satisfied is
not the philosophy and functions of marketing and private
sector alone. But a philosophy of positive governance which
should form the backbone of government policy formulations.
There is no gainsaying that the current denominations are
resented and out of protestations some denominations are rejected
and unutilized as significant exchange medium. The new policy
would eliminate the psychological frustration of consumers
with the old denominations; eliminate the need to carry bulky
and unappreciated notes and coins. The aggregate psychological
resentment subsisting for the past two decades would be replaced
by contentment and boldness to appreciate and support government
actions and ability in its self- correcting capacity.
Small business
In the same vein, if the new denominations are introduced,
it is envisaged that smaller and cottage businesses, which
are the engine room to the envisaged transformation of industrial
development, would be greatly enhanced. With the higher face
value of the Naira, investors in small and cottage businesses
who are discouraged due to lack of confidence in the worth
of each unit of the naira coins and notes, would most certainly
be motivated to strive to engage in productive endeavours,
since, little gains of higher denominated naira would attain
higher exchange and value. In the last two decades, frustration
with what we consider to be gross devaluation of the naira
has been the major factor discouraging this vital segment
of the society. Hence, we have seen over this period the catastrophic
demise and disappearance of the small business operators in
the formal sectors essentially owing to lack of motivation,
especially, due to the perceived worthlessness of the Naira.
This syndrome has effectively resulted in the demise of the
middle class in Nigeria. These potential investors who ought
to be engaged in productive sectors are now found transmuting
into political jobbing, contractual middlemen and private
consultants to endeavours which possess little or no positive
impact on the development of the country and well being of
the society. It is our conviction that the motivation derivable
from the proposed policy, if implemented, would accelerate
the intervention and contribution of this segment of society
who are currently frustrated entrepreneurs.
Healthy competition
As marketers, it is our view that the proposed policy when
implemented would create healthy competition, new products
development and increased economic activities. For instance,
the new coins would encourage the use of vending machines
and products. By design, coin processing vending machines
are cheaper to install. It is also versatile, as wider variety
of products can be vended using the coins. Thus, new products
would be launched and introduced into the Nigerian market.
The introduction of low cost vending machines would also facilitate
flexible and lower distribution costs with consequential effect
of increased choices and customer satisfaction on one hand,
while the new and existing organizations adopting this technology
would achieve growth and increased profitability.
Another important area in which the populace would also benefit
is as a result of increased competitive activities among organizations.
With the new denominations, organizations with higher productivity
can afford to offer variety of incentives to its customers
as part of its strategy to increase its market share, reduce
unit costs and increase profit margin. The incentive enabled
by the new denomination would take the form of cash discounts.
It would now be possible more than at other times to meaningfully
reduce prices by one kobo; two or three kobo etc. Pricing
products at such marginal rate as N4.99k; N4.98k; or even
N4.47k would be possible with the new denominations. Consumers
receiving the incentive would appreciate it as value gained.
As for the organizations, there is ample opportunity for a
variety of methods of promoting its products. The increased
expenditure in promotional activities would intensify growth
in this sector of marketing efforts. Advertising agencies
as well as promotional and planning managers, media organizations
in the print and electronic genre would achieve increased
patronage. In the same vein, distribution activities will
increase in consonance with the demands of the competitive
activities resulting from the impact of the denomination of
the Naira.
Ultimately, arising from the foregoing, customers would benefit
from new products and lower prices of products as a result
of the effective and efficient management of resources and
competitive activities triggered by creative and innovative
marketing drive to satisfy customers.
Inflation
There is the argument that the policy if implemented could
lead to a stronger Naira and as a matter of fact, it is claimed
that it is an indirect effort at revaluation of the Naira.
Our view is that a stronger Naira shouldn’t be a disincentive
for demand for locally produced goods. Marketers accept responsibility
to secure value for the consumers. It is the responsibilities
of government to adopt appropriate policies and intervention
to enable locally produced goods to be competitive. It is
inhuman, unfair and unjust to keep consumers in a perpetual
stage of valuelessness. Marketers would adopt the highest
level of social responsibility in ensuring that the policy
translates to increased choice and satisfaction to the consumers.
While we support the proposal of re-denomination of the Naira,
we would like to point out that this policy can not be implemented
in isolation of the overall fiscal policy of the government.
Also, in order to be effective, it has to be combined with
other measures to curb inflation and potential sabotage. We
are not unduly worried about the old folks and not too literate
Nigerians in the rural and urban markets who would need to
convert the new denominations. Since the conversion of the
Pound Sterling to the Naira, the groups have continued to
use the old Sterling pound as base for the Naira. The situation
will not change with the proposed denomination. The local
markets have its language and dialects, and it will work out
the language of the new denominations.
In the long run, we see the proposed policy as accelerating
the transformation of the economic activities of the country.
The Marketing profession would benefit from increased demand
for its skills and capacity to create and adapt to change.
Chartered Marketers would be at the vanguard of managing organizational
resources to enhance quality of services and products delivery
and ensuring ethical and social responsibilities of organizations
in satisfying the needs of the customers. The National Institute
of Marketing of Nigeria would not be left out of the transformation
process as it will continue to assist its members to sharpen
their skills and knowledge through continuous interactions
and programmes of development. .
Price watch
On our own part, if the proposed policy is implemented, the
National Institute of Marketing of Nigeria would establish
a "Price Watch Committee" as part of its marketing
social responsibility function. The committee would be charged
with the responsibility for monitoring the marketing activities
of members’ organizations and guide them on their responsibility
to customers and the public in the course of implementing
the new monetary policy. It would be the duty of the committee
to draw the attention of the public to erring organization.
Textile industry
Like most industrial sectors in the country, the textile industry
in Nigeria has been unable to transform from basic industry
into a modern productive and economic viable ventures. Hence,
once again as in the early 80’s the government is being
urged to provide bail out fund ostensibly to revive the institutions
in order to redeem its past role in creating sizable employment
and economic activity in the country. The present administration
is believed to be working out a scheme with the banking institutions
in which the fund can be provided at moderate interest rate.
No doubt, part of the funds will go to pay the huge indebtedness
of the ailing organizations to the banks, redundant and dead
employees as well as other creditors such as tax authorities,
electricity and water boards and numerous small time suppliers
whose funds are tied up in the non-performing organizations.
Assuming the numerous fundamental problems which include outdated
technologies, poor workers’ productivity and militancy,
unskilled, under-trained and illiterate workforce, faulty
remuneration policies, inadequate working capital, over dependency
on imported chemicals and spare parts, ineffective management,
sharp practices by owners etc can be solved; the industry
would still not survive because of its attitude towards Nigerian
consumers.
The first generation textile companies established by regional
governments in the 50’s and early 60’s, such as
Kaduna Textiles Limited (KTL), Nigerian Textile Mills (NTM)
and Arewa Textiles PLC survived for four decades because their
products were of high quality and highly regarded by Nigerian
textile consumers. Although, the flagship textile companies
are closed, the reason for their problems are not due to poor
product quality but their inability to adopt new technologies
to replace their shuttle looms on the one hand, and on the
other, a consequenceof its inability to change their product
mix in line with changing tastes and demand by the Nigerian
consumers.
Besides, the second generation’s textile companies established
predominantly by Asian owners and local traders failed because
they never set out to produce fabric desired by the populace
or meet any societal responsibility.
From inception, whether it is in the production of fabrics
or yarn, the second generation textile companies which were
established in the late 70’s and the 80’s were
more interested in maximum return on dubious working capital.
It is instructive that most of the companies came into being
through funds made available by government through the ADB
loans in the 1980s to address the same problem of revitalizing
and repositioning the industry as a means of creating employment.
Marketing failure
Virtually all the textile companies in the country do not
have marketing department. Expatriates with dubious background
are planted in sales departments as sales managers and in
some instances referred to as marketing managers, with the
exception of the Churchgate and the Sunflag groups, which
have functional and effective marketing departments. The Churchgate
Group in 1989 invited experts from ATIRA in India to set up
its marketing department. A strategy that has enabled it survives
when others have closed shop. For instance, Out of the four
textiles companies owned by the Churchgate Group, three are
still working. These are First Spinners, International Textile
Industries (ITI) and Platinum Textiles Ltd. The only unit
closed is the Royal Spinners Limited which was closed because
the level of workers’ militancy could not be tolerated
by the owners. The Churchgate Group not only produce textile
for the mass market but it also produces uniform materials
for the Army, Police, Customs, FRSC, Central Bank etc. Its
suiting materials are highly favoured in the West African
coast. The Sunflag Group suiting and shirting materials commonly
referred to as "Ijora textiles’ are also highly
favoured by Nigerian consumers. The Sunflag Group product
mix is also based on sound marketing information system and
internal quality management system. |
