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Friday, 14 September 2018

Characteristics of International marketing

The nigerian participation in international marketing is principally characterized by the following
 1. mono economy.
 2. consumers preference for foreign products
 3. commodity marketing.
4. Import mania.
5. Poor industrial base.

 Mono economy nigeria's over reliance on crude oil has put agricultural development in a basket. This apparent neglect of agriculture has forced people who depend on it for survival to join the rural to urban migration problem in the country. The consequences are great in the country with the disappearance of historical northern groundnut pyramids, western cocaa beans market and the south eastern palm oil market.

Nigeria therefore runs a risk of mono cultural economy and no nation dreaming to be one of the leading economies in the world by the year 2020 runs such a risk adventure. What is most irksome is that instead of using the patrol dollars flowing from the creeks of the niger delta to develop massive infrastructural facilities, and social service delivery, build a sustainable industry base and ensure conductive investment climate in the country, the public office holders, both passed and present continue to embark on personal aggrandizement with the taxpayers funds.

Consumers' preference for foreign products;
Simply put, nigerians are crazy for foreign products nigerians were exposed to foreign products during the colonial era by foreign trading companies such as united african company uac which started as the royal niger company, cie francaise de africa occidental (c f a o) union trading company (utc) leventis, john holt plc, (ste) commercial I' quest africa (s c o a), e t c. They are mainly imported manufactured products into and exported agricultural products out of nigeria, these companies are still functional today still marketing imported products such as generators, motorcycles, air conditioners, automobile products, btc with little or no interest in exportation of raw materials.

It is important to note that the positive behavioral attitude of nigeria towards foreign product stoned the expected growth of our local industries. The worst aspect of the ugly incident is the fact that nigerians have blind loyalty to foreign brands, a typical nigerian in a blind brand test cannot distinguished a local made product from an imported one. This can be called the complex consumption syndrome that affected nigerians.

 the dangers of the complex to the nations are:
1. Low capacity utilisation of our local industries.
2. Importation of products in which we have the comparative advantage to produce commercial and the country.
3. Put unnecessary pressure on foreign reserves.
4.  Weakens our balance of payment position.
5. Creates unemployment due to job loss arising from closure of local industries. In seventies and eighties the texas industries boasted of almost 200 companies, employing close to 1 million workers today we have less than 30 textile company each producing apps less than 30% of installed capacity and employing only about 28000 workers who remain to sustain in the name of the industry.

Several factors comma internal and external, have been given as being responsible for nigerians sickening craze for foreign made products by different authors at the detriment of a homemade products. we hereby summarise the views.
1.  poor technology and no meaningful mechanization.
2. Inadequate marketing and storage facilities.
3. Quick money syndrome.
4. Economic ticket to dumping and smuggling.
5. Show of affluence.
6. Relatively cheap prices.
7. Availability of ict and assorted goods in the market.

Poor technology and no meaningful mechanization
The nigerian family system depends large on the use of primitive farm implements like hoe and cutlass, except in few government or privately owned large farms where modern equipment are sparingly used. Technology in both our farms and industries could have guaranteed large scale production capable of meeting the needs of the domestic consumers and leaving the surplus for export. Despite the effort of big companies like shell petroleum development corporation spdc, the niger delta development commission nddc and the various river basin development authorities in promoting large scale farming, products like live animals and animal products, vegetable oil and fats hidings and skins, e.t.c. are still found in nigeria's import list.

 inadequate marketing as storage facilities
The marketing of our farm products are not yet standardized due to the subsistence nature of agro and allied business, poor packaging facilities and the distribution system which leaves the local farmer worst off as middlemen make most profit. Lack of storage facilities expose the products to perish easily.

 quick money syndrome
Our penchant for easily acquired wealth especially liquid cash without a corresponding desire to work hard has led nigerians to engage in distributive trade instead of embarking on actual production activities with long gestation period, the result is the number of young and old people who are being arrested daily for drug related offence, smuggling of anything possible in the country e.t.c. the activities of nafdac in recent times have shown how nigerians embark on the making and sell of adult related and fake drugs as well as food related products in the country.

 economic ticket to dumping and smuggling
 The nigerian market has become a dumping ground for all manner of products. Dumping occurs when goods are sold to a foreign country usually at low prices because they are not wanted in the home country where they are produced. More so, dumping could be established if a company chargers too low a price to its subsidiaries such thats it adversely effect foreign countries economy, nigeria suffer from the manifestation of both types of dumping. Most households equipment being sold on our highways by hawkers attest to this assertion. Such products hardly last for 48 hours after purchase.

On the other hand, smuggling of all class of products into the country through our porous borders make nonsense of the import prohibition regime of the federal government. The smuggled product ensure that our locally made products become most costly than the foreign products.

Show of affluence
The acquisition of ill gotten wealth by nigerians and ostentatious lifestyle lead to extravagance and penchant for conspicuous consumption instead of frugality. important values such as materialism unbridled individualism are all manifested in our consumption pattern with the resultant effect of show of affluence with costly foreign products. The type of automobiles on our roads, stylish homes, dresses atc consumed by nigerians are just to preserve and perceived self imagine at the the trend of prudent living. This has sustained the influx of foreign products in the country. To buttress this the preservation of self image compel the consumers to patronize products consistent with their self image those that relate favorably to groups norms of behaviour.

Relatively cheap prices
Is defined price as the money worth to be paid in exchange for a product goods or service. With greater economies of scale at the disposal of global companies, the flood the world market with cheaper products which render local products vulnerable to unfair competition. For example the imported cds cost between 100 naira and 150 naira while the locally produced ones cost between 300 and 400. The global companies utilise the principle of integration in multi-nationality to reduce the cost of production to only variable costs.

Availability of variety and assorted imported goods
 as identified above, the cheapness of imported products, coupled with force of globalisation as promoted by the world trade organisation wto and fuelled by major advances in communication and logistics network have shortened time and distance. Accordingly new products launched anywhere in the world are distributed worldwide in a very short time . the resultant effect is that consumers in developing countries including nigeria are exposed to variety of assorted goods produced by global companies.

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