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ABSTRACT
This research is specifically undertaken in the study of evolving foreign marketing strategies for export capacity consolidation. Exporting, is a major component of international trade, which means to ship goods and services in and out of a country or the exchange of capital, goods and service across international borders or territories, foreign marketing strategy begins with designing an entry strategy, that focuses on developing a strategic export plan tailored to leverage competencies and designed to achieve profitability goals through providing multilingual sales support to help sales department better understand foreign customers needs and make more sales effortlessly. The study used descriptive research design to ensure that the information obtained was relevant to the research questions. The study was designed in six chapters, the Burley and Taro-Yemen’s sampling techniques, was used to determine the sample size out of which a sample size of 88 respondents from selected firms in Nigeria, with branches in Port-Harcourt that engages in exporting activities. The research was guided by four (4) research questions. In an attempt to answer these question two hypothesis was developed and tested, using the chi-square (x2) statistical tools. The study reveals that there is significant relationship between foreign marketing strategies and export capacity consolidation, and that foreign marketing play significant role on export capacity consolidation. The researcher further recommended that exporters should try and identify some current evolving foreign marketing strategies, that can be applied for export capacity consolidation in Nigeria, as such they should analyze and identify the problems associated with foreign marketing towards ensuring export capacity consolidation in Nigeria such as accessing the problems of manipulation and the casual relationships with the capital movement.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This research study is designed to explore the changing foreign marketing strategies. The foreign exchange market is the market in which participant are able to buy, sell, exchange and speculate one currencies. Foreign exchange market are made up of banks commercial companies, central bank, investment management firms, hedge forms, retail forest brokers and investors foreign market also refers to the global market where currencies are traded virtually around the clock.
Berger (1998). Analyzed the term export as derived from the conceptual meaning as to ship the goods and services out of the port of a country. Akinyele, (2011) asserted that the seller of such goods and services is referred to as the “exporter” who is based on the country of export, where as the overseas based buyers is referred to as an” importer”. In addition, the concept foreign marketing or international trades is the exchange of capital goods and services across international borders or territories from the forgoing. Sveiskas (1987) opined that, in most countries such trade represent a significant share of goods domestic product (G.D.P) and that while foreign marketing has been present throughout much of history, it economics, social and political importance has been on the rise in recent time based on the above analysis. Krugman(1987) further contends that an Effective foreign marketing strategy begins with designing a strategic export plant to tailor to leverage competencies and designed to achieve profitability goods, through providing multilingual sales supports to help sale effortlessly. According to Brassinton, (200) this can be accomplished with the manufacturer exporting direct without recording to local distribution thus eliminating mark-ups.
Charnes, (1985) is of the opinion that these strategies are captured in the international marketing plan; which as flexible document that will likely be reviewed, revised and modified throughout the exporting activities in relation to the above analysis. Kotler, (2003) added marketing is a continuous activity and so is marketing planning because an organization can never know enough about its customers and how to meet their needs without adopting the basic marketing formula. Ecie, (1973) contends that basic marketing formula, which as the four “PS” of marketing product, price, promotion, and place is just the beginning when it comes to exhibiting foreign marketing strategies.
Grant (1991) also asserted that the foreign marketing plan will need to address many other factors, such as payment (international transaction and currency exchange) practices (different cultural, social and business styles) partnerships (strategies alliance to strengthen the presence) and protection (increase risks relating to payments, intellectual property or travel and many more. Collis (1991) further argued that understanding all these facets of international business, will transform the organization foreign marketing plan into marketing action that will facilitate export capacity consolidation for business and economic success, which is the foundation for this research study.
1.2 STATEMENT OF THE PROBLEM
Industrial countries supply grants in aid to developing countries. Corporation on one country may wish to acquire capital asset of set up subsidiaries on another. All these are example of transaction between countries that requires the movement of fund (cash flow), which may sometimes not in currency but in the correct value of capital flow, proper conversion rate and the fluctuating issues of foreign currencies however, all this process often poses some challenges and problems for many developing countries like Nigeria, which are stated as follows:
- Often time, the problems of high level of corruption, among certain authorities who handle certain responsibilities for the nation’s foreign marketing activities thereby limiting the nation’s export capacity.
- In Nigeria, problems arise in foreign marketing transaction because of the efficiency in our financial system which brings limitations between the time payment are made for goods and the time fund were actually remitted.
- There are the problems of manipulation of this balance of payment changes and the casual relationship with the capital movement.
- The remittance exchange rate of foreign marketing transaction process also the nations into such challenge that the element of cost that were born by the importers and in some case put pressure on the country’s balance payment.
1.3 PURPOSE AND OBJECTIVE OF THE STUDY
The main objective of this study is to evaluate evolving foreign marketing strategies for export capacity consolidation. The specific objectives are as follows:
- To examine the extent to which foreign marketing strategies enhance export capacity consolidation in Nigeria.
- To find out the steps and legal considerations for successful exportation in Nigeria.
- To identify the essential elements of foreign marketing strategies for exportation capacity in Nigeria.
- To understand the current trends and department that aid marketing strategies for export capacity in Nigeria.
1.4 SIGNIFICANCE OF THE STUDY
This study firstly, will proffer suggestion on alternatives mode of transaction with the problems necessitated with the import and exports as well as educating imports and export on all the necessary in foreign marketing, the study will be of great adjust government policies and implementations on trade transaction etc, and ensure efficient consolidation. In the case of further research respectively.
1.5 RESEARCH QUESTIONS
The following shall be the research questions for this study.
- To what extent does a foreign marketing strategy enhance exportation capacity in Nigeria?
- What are the steps and legal considerations for a successful exportation in Nigeria?
- Are there essential elements of foreign marketing strategies for exportation capacity in Nigeria?
- What are the current trends and department that aid marketing strategies for export capacity in Nigeria?
1.6 RESEARCH HYPOTHESES
Following the above research question the hypothesis for this study is stated below as follow:
H01;Foreign marketing strategy does not enhance exportation capacity in Nigeria?
H02; There is no significant relationship between foreign marketing strategies and export capacity consolidation.
1.7 SCOPE OF THE STUDY
The study is centered and focused on analyzing the way toward on designing effective foreign marketing strategies towards a successful export capacity consolidation in Nigeria. This study is entered on Nigeria. It will be too large to study Nigeria at large so the limit the study to some selected multinational firms in Rivers State Nigeria. They include peters and Sons Enterprises, Green Ville Resources, P & G Limited and Hugo Ventures.
1.8 LIMITATION OF THE STUDY
This research work is basically on the effectiveness of foreign marketing strategies for export capacity consolidation. However, in composing this study the researcher encountered challenges of limited fund to source for information related to the subject matter, other limitation include the lack of adequate time frame and materials needed respectively.
1.9 DEFINITION OF RELATED TERMS
Exporting:Is shipping of the goods and services out of the port of one country to another.
Consolidation:Is a process of becoming better and stronger.
Capacity:The total amount of goods and service that can be contained or produced within a given period.
Capacity Consolidation:The process which the total amount of goods and service produced within a country say Nigeria, become more of value.
Exchange Rate: This is the rate at which various currencies exchange with one another.
Strategy: A game plan designed to achieved desired goods and objectives.
Tariff: A standard instrument for commercial policy, essentially a relieved a government on goods entering a country.
Marketing strategy: Is a process that can allow an organization to concentrate its limited resources on the greatest opportunities.
Import license: Specific commodities placed on license so that the numbers of people that will be importing the commodity will be reduced.
Exchange rationing: This involves the allocations of foreign exchange to some government authorities. These authorities in turn rotate the foreign exchange among the competing demands.
Embargo: An outright prohibitation in the importation of some items. The purpose of embargo it is to encourage local industries and cut down on the use of foreign exchanges as well as cutting down harmful commodities like cocaine cigarette, wheat etc. anyone caught importing two commodities will be punishable by law.
International Trade: International trade means transaction between country and other countries of the world.