This chapter attempts to gain an in-depth view into what is already known in connection with the research topic being studied. It therefore brings to light the different theoretical and methodological approach to the research area, helps develop a practical analytical framework, considers inclusion of variables that may not have been thought about from the inception of the research work and in the long run learning can be gained from mistakes of previous researchers and avoidance of such mistakes would be achieved (Bryman & Bell, 2003). The scope of the research is narrowed down through successful study of literature review that was continuous all through the research process. Further, the review of literature will incorporate a wide range of materials sourced from journal articles, corporate websites, government websites, multilateral organisations, text books and online databases which include: Science Direct, Emerald and Business Source Premier.
According to saunders, Lewis and Thornhill (2007), the literature review approach adopted in this research is the deductive approach, where the literature helps in the identification of the theories and ideas that will be put to test using data collected from the qualitative interview. However, the purpose of the review is not to sumerize all that has been written on the research topic, but focuses on the most pertienet and substantial research related to the topic in question "The advertising strategies used by small scale industries in Nigeria in achiveing the organizations goals and objectives" with the aim and objectives of this research in mind.
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A business whether small or big, simple or complex, private or public, etc is created to provide competitive prices. Business in Nigeria has been classified as small, medium and large (Ogechukwu, 2006) .However, in 1992, the National Council on industry streamlined the various definations in order to remove ambiguities and agreed to revise them every four years. Small scale enterprise were defined as those with fixed assets above #1 million (Naira) but not exceeding #10 million (naira), excluding land but including working capital, while medium scale enterprise are those with fixed assets, excluding land but including working capital, of over #10 million (naira) but not exceeding #40 million (naira). Olorunshola (2003), futher states that the definations were revised in 1996 with small scale industry defined as those with total cost including working capital but not exceeding cost of land above #1 million (naira) but not exceeding #40 million (naira) with a labour size between 11 and 35 workers; while medium scale industry was defined as those with total cost, including working capital but excluding cost of land, above #40 million (naira) but not excluding #150 million (Naira) with a labour size between 36 and 100 workers. Aina (2007) outlines the potentials and benefits of SME's to Nigeria Economy and Poverty Allevation; which states that developments in small and medium enterprise are presently seen to be effective and sustainable potentials for employment generation, solid entrepreneural base, encouragement for the use of local raw materials and technology. And also states that the benefits of SME's to any economy are easily noticeable, which include: contribution to the economy in terms of output of goods and services; creation of jobs at relatively low capital cost, especially in the fast growing service sector; provideing a vehicle for reducing income dispartities; developing skilles and semi-skilled workers as a basis for future industrial expansion; improving forward and backward linkages between economically, socially and geographically diverse sectors of the economy; provide oppourtunities for developing and adapting approprate technological approaches; offering an excellent breeding ground for entrepreneural and managerial talent. Olorunshola (2003) also summerizes the benefits of SMEs to a nation as their ability to provide an effective means of stimulating indigenous entrepreneurship, creat greater employment opportunities per unit of capital invested and aid the developement of local technology. He also futher states that through their wild dispersal, they provide an effective means of mitigating rural urban migration and resource utilization.; by producing intermediate products for use in large-scale enterprise, they contribute to the strenthening of industral inter-linkages. Salami (2003) also agrees to these benefits of SMIs to economy developement. Udechukwu (2003) stated that the problems of SMEs in Nigeria are enormous and ranges from; inadequate and inefficient facilities which tend to escalate cost of operations, as SMEs are forced to resort to private provisioning of utilities such as road, water, electrcity, etc.; lack of adequate credit for SMEs, traceable to the reluctantance of banks to extend credit to them owing, among others, to poor documentation at project proposals as well as inadequate collateral by SME operators.; bureaucratic bottlenecks and inefficiency in the administration of incentives which discourage rather than promote SME growth.; weak demand for products, arising from low and dwindling consumer purchasing power. Lack of patronage for locally produced goods by those in authority.; incidence of multiplicity of regulatory agencies and taxes which has always resulted in high cost of doing business and poor management practicies and low entrepreneurial skill arising from SME promoters. According to Onugu (2005) a major characteristic of Nigeria' SMEs relates as to ownership structure or base, which largely revolves around a key man or family. Which makes concentration of management on the key man. Hence the preponderance of the SMEs is either sole proprietorship or parthnership. Even where the registration status is thus that of a limited libility company, the true ownership structure is that of one man, family or partnership business. Onugu (2005) also states some challenges of the Nigerian SMEs include insufficient capital, lack of focus, inadequate market research, over-concentration on one or two markets for finished products, lack of succession plan, inexperience, lack of proper book keeping, lack of proper records or lack of any records at all, inability to separate business and family or personal finances, lack of business strategy, inability to distinguish between revenue and profit, inability to procure the right plant and machinery, inability to engage or employ the right calibre staff, planlessness, cut-throat competition, lack of official patronage of locally produced goods and services, dumping of foreign goods and over concentration of decision making on one (key) person, usually the owner. Other challenges which SMEs face in Nigeria include irregular power supply and other infrastructural inadequacies (water, roads etc) unfavourable fiscal policies, multiple taxes, levies and rates, fuel crises or shortages, policy inconsistencies, reversals and shocks, uneasy access to funding, poor policy implementation, restricted market access, raw materials sourcing problems, competition with cheaper imported products, problems of inter-sectoral linkages given that most large scale firms source some of their raw material outside instead of subcontracting to SMEs, insecurity of people and property, fragile ownership base, lack of requisite skill and experience, thin management, unfavourable monetary policies, lack of preservation, processing and storage technology and facilities, lack of entrepreneurial spirit, poor capital structuring as well as poor management of financial, human and other resources.(Onugu, 2005) Ogechukwu and Lantiwo (2010) cites (Ogwo 1991) stating that one major problem facing SMEs in Nigeria is lack of understanding and the application of marketing concept. Kola and Akinyele (2010) stated that, Nigeria still has a very poor understanding of the role of effective marketing communication with customers in attracting and maintaining prospective and present customers. Ogechukwu and Lantiwo (2010) futher states that [â€¦]. They lack the knowledge and skills of basic marketing ingredients - marketing research, market segmentation, and marketing planning and control. The outcome of this is poor quality products, unawareness of competition, poor promotion, poor distribution and poor pricing methods. Ogechukwu and Latinwo (2010) also cited Baker(1979) and Doyle (1985) identifying that lack of marketing orentation is the major factor for business failures. A research carried out by Okpara et al. (2007) with structured interview and survey gathered data from over 400 small businesses in Nigeria to find the principal constrain to success of small businesses, it included poor management... weak infrastructureâ€¦ and so on. Sanni (2009) also noted that the Nigerian small scale enterprise seems too stagnant (problems with imminent collapse and failure), less adventurous than developed countries (Eneh, 2010).From the above literature, lack of training and understanding is a constrain to the success of the Nigerian SMEs. Olotu (2011) quotes Mr Sanusi, the CBN Governor; "saying [â€¦â€¦.] lack of inadequate management skills and entrepreneurial capacity" pose a problem for Nigeria SMEs'. Olotu (2011) futher states that, " I am very concerned about the lack or inadequate provision for training and development programs for workers and managers within SMEs".
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Ogwo (1991), onugu (2005), Kola and Akinyele (2010), and Ogechukwu and Latinwo (2010), all identified lack of marketing strategy as a major problem of Nigerian SME's. Osuagwu (2004) cites Meldrum (1996), that one of the problems confronting marketing as a managerial dicipline is the inability of companies to impliment its theories. And futher states that the problem has been noted for a long time by scholars (Fellon 1959; Barksdale and Daren 1971). Osuagwu (2004) futher states that some research efforts have been undertaken to explain marketing practices in developing economies at the organizational level (Westfall and Boyd, 1968; Samli, 1964; Wadinambiaratchi, 1965; Slater 1968;) ,many of this research effort lack the essential ability to provide normative answers to issues pertaining to marketing practices and policies in developeing economies (Dholokia and Firat 1976; Samli and Kaynak 1984). Osuagwu (2004) also cited Mavondo (2000) stating that marketing strategy has been seen as the interface between an organization and its enviroment and that an organizations marketing strategy may result in better marketing performance if it is closely aligned to the dedicates of the relevant enviroment (Miles and Snow, 1978). At this point, it is important to note that according to businesslink.gov.uk, "Advertising is an important component of your marketing strategy".