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NIGERIAN JOURNAL OF BUSINESS,
HUMANITIES AND INFOTECH
An International Interdisciplinary Journal
Volume 2, No. 2.
November 2013.
ISSN NO. 2315 - 6457
Published by
The Imo State Polytechnic Umuagwo
SPONSORED BY
TETFUND INTERVENTION 2011
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EDITORIAL BOARD
Editor-in-Chief
Dr. John S. Ezenwankwor
Review/Discussion Editor
Princess Tina Anyanjo
Editorial Secretary:
Mr. Chijioke Okoro
Editorial Advisers:
Dr. E.C.C Amaechi
Mr. Chinedu B. Maduka
Mr. Callistus Eke
Dr. P.C. Aju
Dr. D. Osuagwu
Dr. A. Ukonu
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NOTES ON CONTRIBUTORS
Ogbonna Emma is a lecturer in the Department of Cooperative
Economics and Management, Imo State Polytechnic Umuagwo.
Okoro Chijioke belongs as well to the Department of
Cooperative Economics and Management, Imo State
Polytechnic Umuagwo.
Onyechinyere Adaku is an academic staff of the Imo State
Polytechnic in the Department of Office Technology and
Management.
Egbe Placid is a lecturer in the Department of Marketing, Imo
State Polytechnic Umuagwo.
Chinenye Michael Maureen writes from the Department of
Cooperative Economics, Federal Polytechnic Nekede Owerri.
Echeta Desmond is an academic staff of Imo State Polytechnic
Umuagwo in the Department of Banking and Finance.
Echeta Maryrose is of the Department of Science Laboratory
Technology, Imo State Polytechnic Umuagwo.
Unachukwu Uche belongs to the Department of Banking and
Finance, Imo State Polytechnic Umuagwo.
Ojiuko Austine is also of the Department of Banking and
Finance, Imo State Polytechnic Umuagwo.
Anukam Isaac writes from the Department of Marketing, Imo
State Polytechnic Umuagwo.
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TABLE OF CONTENTS
Editorial Forward
Edmund Igboanusi
The moral Agenda of Information and Communication
Technology for Development
Chrysanthus Ogbozo
Using Language but Communicating Nothing
Nelson Udoka Ukwamedua
A Post Modernist Response to Philosophy in the Third World
John Ezenwankwor
Third World and the Challenges to Freedom
Princess Tina Anyanjor
Literature, an effective tool in rebranding Nigerian students
Isaiah Negedu
Governance in Africa: Nigeria in Perspective
Ethelbert Nnodimele
Environmental Degradation: A threat to man and the Ecosystem
B.C. Ekweruo
Igbo Regional Landscape and Traditional Agriculture
Paschal Ifeanyi Onyenwigwe
Selection for Employment: Issues and Problems
Chijioke Okoro and E.C.C. Amaechi
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The Effects of Government Policy on Cooperative Development
E.C.C. Amaechi and Chijioke Okoro
Organization and management of Cooperative Business
Enterprise
Ethelbert Nnodimele
Affordable/Cleaner Energy Alternatives for the Household
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Editorial Forward
The Nigerian journal of Business, Humanities and InfoTech, as
a response to the present day problems of the society especially
the developing world, accommodates issues from various fields
especially as they relate to technology, management issues and
some problems in the third world. Technology is here
considered in its human dimension where it gains its proper
meaning. It ceases to be meaningful when it ignores the values
at the centre of human development and needs.
In this maiden edition, Edmund Igboanusi challenges the view
that technology or science is morally indifferent. He calls for an
in-depth provision of moral parameters in approaching
technology to fully benefit from it while at the same time
protecting our human values especially the respect for human
dignity as one created in the image of God with freedom to
make choices.
Shifting a little from the moral dimension of technology,
Chrysanthus Ogbozo reviews the third world use of the
technology of information dissemination. Using Nigeria as
example, he adduces that a great majority of news items in
Nigeria are elegantly presented but with very poor or sometimes
untruthful content. He identifies language and its proper use as
essentially important in every form of communication and
therefore calls for its proper understanding. Communication is
not simply the use of words or language; such use however
becomes communication when they convey what is real and
true.
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With some obvious patriotic spirit, Nelson Ukwamedua frowns
at the use of the term “third world.” He is particularly
unsatisfied that the pains of colonialism are yet to be over as
colonizers continue to dominate the African people. The use of
the term ‘third world’ is particularly identified as a further way
the colonizers use in derogatorily subjugating the African. He
holds that such terms are only made to make the African who he
considers to have proper philosophies and ideologies feel less
confident about his ideas and views. In line with the poor picture
already created about the third world countries, John
Ezenwankwor considers freedom totally alien to the colonized
third world nations because of their continued economic
dependence on the so called first world.
Patriotism is not limited to the defence of one’s land against
colonisers but further requires action aimed at positive
contributions to one’s land. In this light, still focusing on the
third world, Isaiah Negedu, considers the issue of governance in
Africa with particular reference to Nigeria. He declares that the
central problem to governance in Africa is corruption. This evil
according to him has its concomitant effect in bad management
at all levels. The writer believes that leadership in Africa can
change for good when there is attitudinal change which will
only be ushered in by proper education and patriotic spirit. Such
kind of spirit among many other ways could be achieved in
Nigeria according Princess Tina Anyanjor through proper rebranding of the youths. She feels that the youth will be more
effectively rebranded towards proper attitudinal change through
the values of literature when they properly embrace them.
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Apart from having the proper education and patriotic spirit
considered very essential in managing the affairs of a nation,
there are further areas that require proper and careful
management which Ethelbert Nnodimele, B.C. Ekweruo and
Paschal Onyenwigwe identified. They include the management
of our environment, management of industries or firms for
peaceful living and positive results. Nnodimele is saddened
about the general attitude of people, particularly Nigerians
which he considers detrimental to our environment and therefore
calls for a change of attitude that will require taking proper care
of our environment.
Ekweruo considers the attitude to
agricultural development as another unfortunate state of affairs
in Nigeria. For him, agriculture has been so much neglected in
the third world nations especially in the Ibo tribe of Nigeria
because of its ‘subsistence’ tag by many governments. He
therefore calls for a rethink in order to give agriculture its
needed support. This, according to him, will make the Igbos of
Nigeria specifically known for subsistence agriculture self
reliant.
A good environment with proper system of agriculture
supported by the government is expected to bring forth a
prosperous and peaceful society. This can only come about in a
situation where there is proper organisation in the various firms
and governmental agencies saddled with particular
responsibilities necessary for implementing desired policies. To
be able to have proper and functioning firms and agencies that
will provide such desired results, Onyenwigwe calls our
attention to an essential aspect of every organisation or firm
namely selection or employment and management of qualified
staff. He thinks that poor selection and management of staff can
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spell doom to most firms. He considers the proper selection for
employment as well as management of the existing staff as
essential in maximizing the aims of every organization.
A firm may have employed the best staff and used the best
management system but may remain unproductive. This
happens as identified by Chijioke Okoro and E.C.C. Amaechi
when government policies are detrimental to the progress of
firms. Particularly, they feel that cooperative firms are generally
unproductive in Nigeria because of the long neglect of series of
Nigerian governments in playing their part in developing
cooperative firms.
In the final part of this edition, Nnodimele offers us a practical
way of protecting our environment by inviting us to the use of
energy alternatives that is affordable as well as protective to the
environment. Instead of deforesting our forests for firewood for
example, he advocates the use of other alternatives that will not
be destructive such as windmill and solar energy.
John Ezenwankwor
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STRATEGIES IN MOTIVATING SECRETARIAL
STUDIES STUDENTS’ INTEREST IN EMERGING
TECHNOLOGIES
BY
ONYECHINYERE ADAKU C. (MRS.)
Abstract
This study intends to look into motivating secretarial education
students’ interest in emerging technologies. Virtually, in every
human endeavor, technologies have been developed and applied
to facilitate human activities. The secretarial works in office
particularly have taken over the old ones which reveal the need
to call the attention of students to new technology and
knowledge in secretarial education. Secretaries nowadays
utilize sophisticated office tools, machines and equipments.
Students’ interests in these emerging technologies are of
paramount importance and a source of concern to business
education especially secretarial education. Adequate fund as
well as necessary tools and manpower development should
therefore be diploid to meet the emerging trends. This study is
carried out using survey research design. Its findings reveal
that teaching of Secretarial studies courses should be carried
out using new office technological equipment and machines,
practical work should be more than theory class and students
should be encouraged to go through industrial training and
professional development on the emerging technologies so as to
enhance their interest in learning Secretarial Education.
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Introduction
Technology innovations have brought changes in all spheres of
human endeavor, including acquisition of knowledge and skills
in Secretarial Education on the new office technology
equipment and machines which are utilized in the work place by
secretaries and management staff. Secretarial Education and
Technology are investments which yield large returns not only
to education, but also to the social betterment of the people.
Emerging office technologies/innovations are profound changes
being introduced into office work as revealed by Agbamu
(2005) who stated that these technological changes have made
traditional office functions to be out modeled, the emergence of
various modern technologies has changed the operations in
modern offices. Onajaife (2006) posited that office systems have
moved from typewriters, handwriting and manual operational
procedures to full automation of most offices where such terms
as word processing, data processing, reprographics and micrographic are used to describe many technological processes. He
further stated that these technological processes have turned
traditional offices into modern offices. Okolo (2006) revealed
that the improvement in technologies has turned heap of files
that are consulted very often to retrieve information into
computers, fax machines, internet/intranet where paper speak no
volumes anymore. The need to impact the skills and knowledge
to the students by the business educators and to develop the
students’ interest in these emerging technologies cannot be over
emphasized because this will make the students to be relevant to
the world of work in this contemporary time. Students of
Secretarial Education are to attain and acquire these
technological skills so as to be technologically acquainted with
innovations as the world is turning to global village.
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Akportohowo (2006) stated that the emergence of technology is
fast gaining grounds as tapes/disks are taking place of sheets of
papers and manual filing system systems. Okolo (2006) and
Akportohowo (2006) opined that the emergence of office
technology enables work to be done from different locations at
different times. Ikelegbe (2006) stated that office automation
and technology allow office functions like typing, filing, storing,
retrieving etc to be automated. Secretarial Education which
sometimes is called office education, secretarial studies or office
systems management often make the skills and knowledge in
emerging technologies available as training programme for
Nigeria College of Education (NCE) students in Colleges of
Education, Office Technology and Management in Polytechnics
and other higher institutions where this course is offered.
Ihekwoaba (2005) sees secretarial education as a business
education programme which equips an individual to function
effectively in business subjects. The secretarial profession is
regarded as one of the most skilled professions. Therefore, a
secretary should possess a combination of skills that will enable
him function effectively in legal services, engineering services,
Civil Service, religious, political and all sectors of the economy.
A secretary according to Ihekwoaba (2005) is a person
employed in an office to work for another person, dealing with
letters, typing, keeping records and making appointments and
arrangements. Secretaries have taken the advantage of these
technology equipment and machines to achieve maximum
result, improve productivity, effectiveness and prompt service
delivery. Ihekwoaba (2005) holds that a student’s level of
interest in learning emerging technologies is of paramount
importance and a source of concern to the business educators in
secretarial education. Students of secretarial education are often
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found to have more interest in other courses than secretarial
education which is their main course of study despite its
relevance to the world of work most especially at this
contemporary time where the whole world is turning rapidly to a
global village and the emerging technologies have taken over
most of the office activities and operations. He further opines
that the current level of students in secretarial education is not
encouraging, which is a reflection of their interest level in the
course. It has come to a point where emerging technologies
which are now taught in secretarial education should be used to
enhance the interest of the students and different strategies have
to be developed through innovative ideas to enhance secretarial
education students in emerging technologies provided by
secretarial education course which is the main purpose of this
study.
Statement of the Problem
The innovations in technological development are deeply
affecting traditional offices as well as teachers who are teaching
Secretarial/Office Education. Most of the teachers are not
exposed to modern office equipment and as such render the
required skills and knowledge during the training irrelevant to
the world of work which will make the secretarial job and
operations difficult to carry out since offices today are
dominated by modern technologies. Secretarial Education which
is the only course which can make the skills and knowledge of
these emerging technologies available for students is considered
a difficult subject. Therefore, there is need to motivate the
students interest in secretarial education with emphasis on the
emerging technologies through necessary strategies so that their
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skills can be useful to them and their world of work after
graduation.
Purpose of the Study
The purpose of this study is to look into the strategies for
motivating secretarial education students’ interest in emerging
technologies. Basically, the study seeks to find out:
1. The level of students’ interest in emerging technology in
secretarial education.
2. Challenges faced by secretarial education in emerging
technologies.
3. Strategies for motivating secretarial education students
interest in emerging technologies.
Research Questions
1. What is the current interest level of students in emerging
technology in secretarial education?
2. What are the various challenges faced by secretarial
education in emerging technology?
3. What are the various ways of motivating the secretarial
education students’ interest in emerging technology?
Research Design
Survey research design will be used for this study. This will
enable the researcher to systematically describe the strategies for
motivating secretarial education students’ interest in emerging
technologies.
Population and Sample
The population for this study is Secretarial Education students in
Office Technology and Management (OTM) selected from Imo
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State Polytechnic Umuagwo, Ohaji through simple random
sampling technique. This means that all the secretarial education
students will be given equal chances of being included in the
sample for the study.
Instrumentation
Structured questionnaire was used for the study to elicit
information from the students of Office Technology and
Management, Imo State Polytechnic Umuagwo Ohaji. The
questionnaire assumed two sections; Section A was based on
demographic data while Section B was on the entire variables
and it assumed four point rating scale which are Very High
(VH), High (H), Lower (L) and Very Low (VL).
Data Collection and Analysis
All data collected for this study came from a primary source and
were collected directly from the Secretarial Education/Office
Technology and Management students through the questionnaire
which were self-administered by the researcher. All the data
obtained were analyzed using means for the entire variables.
Findings and Results
Fifty questionnaires were administered, but forty four (44) were
returned which means that 88% (44) of the sample were used for
the study.
LITERATURE REVIEW AND CONCEPTUAL /
THEORITICAL FRAMEWORK
Concept of Teaching Methods / Strategies.
Teaching Methods according to Daughtery (1974) are the broad
pattern of thinking which a teacher follows to help students
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reach the goal set for the course. In other words, they are the
strategies adopted and used by teachers in transferring learning
in a classroom teaching – learning process. They are techniques,
ways, principles or strategies that enable the teacher to
communicate the lesson. These are attributes expected of a good
teaching method which is to be used to teach specific lesson. A
method that is appropriate to one kind of material may not be
suitable for another. Therefore an appropriate teaching method
needs to be carefully selected. Okeke (1997) as cited by Ifeagwu
(2000) lists some of these characteristics of teaching:
(a) A teaching method should provide useful activities that
would help the learners to discover facts and contribute
effectively to the learning activities.
(b) The teaching method chosen should allow the teacher to
present the subject matter beginning from known to the
unknown; from simple to complex.
(c) Teaching office Education involves various activities
which can be grouped under:
- Teacher centered method, Demonstration, Questioning
techniques, Textbook method, Visual aids and
Demonstration : This is a method or technique of Teaching
Concept; principles or real things by combining oral
explanation with the handling or manipulation of real things,
equipment or materials. Okorie (1986) holds that demonstration
method is one of the teacher’s greatest assets in arriving at
fundamental skills and practice in a very short period of time
especially for any subject that deals with skill acquisition and
teaching various trades by job trainees in industries.
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Excursion/Field Trips / Industrial Attachment Study: A
field trip is a journey outside the classroom to observe and
discover knowledge in a real life situation. Field Trip enables
students to study industrial processes first hand and to see the
relevance of laboratory and workshop practical. (Olatoke,
2005). Field trips afford the students the opportunity to have
experience on the practices or operations different from what
was taught in the school. Field trip is very important in the
teaching of office education courses because real life practices
and operation going on in the world of work is exposed to the
students when they undertake excursions / trips.
Teaching with the use of Audio / Visual aids and
multimedia. The rates of learning through the five senses give
an immediate picture of the vital role of audio – visual
materials in teaching learning process with particular reference
to office education courses. According to Aroleye (1986),
information reaches the brain through the five senses – sight,
smell, taste, touch and hearing. Office education courses are
partly cognitive and skill-based courses. Audio-visual materials
which are in the form of real object, machines/equipments are
of paramount importance.
Research Question 1
1. What is the current interest level of students in emerging
technologies in secretarial education?
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Table 1: Items on students’ level of interest in emerging
technologies.
S/N Item Statemeent
V
H
L VL X
Decision
1
2
3
4
I like secretarial
education
course
because of the skills
and knowledge that
are
provided
through the course.
I prefer secretarial
education to other
courses. It exposes
someone to the new
office technological
equipment
and
machines.
I have keen interest
in learning the new
office technologies
machines
and
equipment such as
fax machines, point
of
sale
(POS)
machines,
computer, internet,
reprography
machines etc.
I like to build my
career in secretarial
education because
of the constant
development
in
office technological
equipment
and
machine.
H
22
22
-
-
3.50 Accepted
21
16
5
2
3.27 Accepted
22
19
3
-
3.43 Accepted
10
20
7
7
2.75 Accepted
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Table 1 above shows that most of the respondents agreed that
they like Secretarial Education/Office Technology and
Management course because of the skills and knowledge that
are provided through the course and that it exposes them to the
new office technological equipment and machines such as fax
machines, point of sales (POS) machines, computer, internet,
reprography machines, etc. Most of the respondents revealed
that they like to build their career in Secretarial/Office
Education because of the constant development in Office
Technological equipment and machines. All the items were
accepted based on the decision that their mean ratings were
greater than 2.5 cut off point.
Research Question 2
What are the various challenges faced by Secretarial Education
in emerging technologies.
Table 2: Items on challenges faced by Secretarial Education in
emerging technologies.
S/N Item Statement
VH H L VL X
Decision
5
Secretarial Education 13
20 6
5
2.93 Accepted
6
department do not
have most of the new
office technological
equipment used in
the world of work.
Emerging
Office
Technologies
are
often difficult to
learn in Secretarial
Education
Department.
5
11
20
21
7
2.32 Rejected
7
8
I often find it
difficult to perform
very well in office
technological
equipment
and
machines because of
the way the lecturers
teach the concept.
More
theoretical
concept are being
taught than practical
work in teaching
emerging
office
technologies.
9
10
18
7
2.48 Rejected
18
11
8
7
2.91 Accepted
Table 2 above shows that most of the respondents agreed that
secretarial education department do not have most of the new
office technological equipment needed in the world of work and
that more theoretical concept are being taught than practical
work in teaching emerging office technological equipment and
machines in secretarial education. Item 5 and 8 were accepted
based on the decision that their mean ratings were greater than
2.5.
Research Question 3
What are the various ways of motivating the secretarial
education students’ interest in emerging technologies?
Table 3: Items on ways of motivating the secretarial education
students interest in emerging technologies.
S/N Item Statement
VH H L VL X
Decision
9
In teaching the new 30
10 3 1
3.75 Accepted
office technological
equipment
and
21
10
11
12
machines,
practical
work should be more
than theorical work.
Industrial training in
office
technology
should be maximally
encouraged
in
students.
In-service
training
and
professional
development should
be
provided
for
secretarial education
lecturers
on
the
emerging
technologies.
Government should
adequately
provide
the current equipment
and machines to the
department so that
what lecturers are
teaching
can
be
relevant to the world
of work.
20
23
1
-
3.43 Accepted
21
18
3
2
3.32 Accepted
35
8
-
1
3.75 Accepted
Table 3 above shows that most of the respondents agreed that in
teaching the new office technological equipment and machines,
practical work should be more than theory class; industrial
training in office technology should be maximally encouraged in
students; in-service and professional development should be
provided for secretarial education lecturers on the emerging
technologies and that Government should adequately provide
the current equipment and machines to the department so that
what lecturers are teaching can be relevant to the world of work.
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All the items were accepted based on the decision that their
mean ratings were greater than 2.5 cut off point.
Discussion of Findings
The study found out that most of the students in secretarial
education/Office Technology and Management were female in
their early twenties (20s); single and most of them used for this
study were in the final year which was their graduating years.
Further, most of the respondents have more interest in typing
than shorthand. The finding of this study revealed that students
like secretarial education course because of the skills and
knowledge that are provided through the course; exposure to
new office technological equipment and machines, learning of
application of new office technological machines such as fax
machine, point of sale (POS) machines, computer, internet,
reprography machines etc in the world of work. Also most of the
students in secretarial education have interest in building their
career in secretarial education because of the constant
development in office technological equipment and machines.
The available ones are not well utilized while some of them are
obsolete and have spoilt beyond repair. In teaching the new
office technological equipment and machines, practical work
should be more than theory class. To achieve this, the findings
revealed that government should adequately provide current
equipment and machines to the department, and that lecturers
should be made to go through in-service training and
professional development on the emerging technologies.
Industrial training in Office Technologies should be maximally
encouraged among students so that what the lecturers in the
department are teaching will be relevant to the society.
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Recommendations
Based on the findings of this study, the following
recommendations are made: Teaching of secretarial education
should always be made to apply ICT in teaching and all
available office technologies equipment. In a situation where
some of the modern office equipment is not available, lecturers
as well as students should embrace excursion to companies and
organizations that deal with the office technologies so that the
graduates of this course can acquire skills and knowledge
relevant to the modern society. Government and college
administrators should try as much as possible to provide new
and adequate office technologies, old ones should be replaced,
worn-out ones should be repaired so that the department can
provide training programmes which can make the graduates of
the course acquire skills and knowledge which can be used to
achieve self-reliance and to be able to cope with the world of
work in using the emerging technologies to achieve effective
work performance and high productivity. Excursion should be
encouraged to both the students and lecturers to offices with
modern technologies and machines.
Conclusion
This study has looked into strategies in motivating secretarial
education students’ interest in emerging technologies. Students’
level of interest in learning emerging technologies in secretarial
education is of paramount importance and a source of concern to
the business educators. Government should give adequate
support financially. Schools and Colleges should be involved in
industry-institution based programmes in providing skills and
knowledge and emerging office technologies to the lecturers in
terms of in-service training, on-the-job training. Seminars and
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workshops should be encouraged so that lecturers can have
adequate skills and knowledge to teach the students and make
them to acquire the best skills which will be useful for them in
the world of work and to be self-reliant in the business world.
25
References
Agbamu, T. P. (2005).
Restructuring business teaching
education through information and communication
technology driven curriculum. Business education journal 1,
10, 17.
Akportohowo, F. C. (2006). Effect of modern information and
communication technology on secretarial and general office
workers. Journal of office management and technology 1 (p.
65 74).
Ikelegbe, S. (2003)
Effects
of
Information
and
Communication on Management efficiency. Journal of
Office Management and Technology 1 (1), 265 271.
Ihekwoaba, M. E. (2005).
Introduction
to
Vocational
Technical Education. Shomolu: mukugamu & brothers
enterprises.
Onojaife, C. A. (2006).
Effects of Modern Information
and Communication Technology on secretarial workers.
Journal of Office Management and Technology 1 (p. 51 58).
Okolo, A. N. (2006). Effects
of
Information
and
Communication Technology on secretarial workers. Journal
of Office Management and Technology 1 (p. 155 169).
26
THE CONCEPTS: ADVERTISING SPIRAL AND THE
PRODUCT LIFE CYCLE
BY
EGBEH, PLACID C. (NNIM, Mnimn)
OF THE DEPARTMENT OF MARKETING
ABSTRACT
Marketing strategic decision-making focuses on products and
markets. Other marketing mix elements of which promotion is
one of them are equally important but facilitate product-market
decisions. Marketers believe that like human beings, products
have a life cycle and that advertising emphasis should change
with the life cycle of a product if one is to maximize a product’s
life time profitability. This paper looks at the advertising spirala chart that parallels a product’s life cycle-and how as a
marketing management decision tool it can help companies
create better campaign, improve their overall advertising
capabilities, enhance product perception, positioning, market
share and profitability.
Keywords: Product life cycle, advertising spiral.
INTRODUCTION
Marketing in simple terms is the identification of human needs
and wants and satisfying them profitably. Product (goods and
services) are used to satisfy these needs and wants. Outside
placing a value on products and ensuring their availability,
27
target audiences also have to be made aware of the existence of
needs-satisfying goods and services. Products however have a
life span. They get born, experience growth and eventually
become obsolete and abandoned. Considering this scenario, the
challenge facing the marketer is not only to ensure that his
product goes the full, cycle but that the product’s life time
profitability is maximized. Predictor variables like market
factors, advertising factors and customer factors can be used by
the marketer to accomplish this. The focus of this paper shall
however be on an aspect of the advertising option called the
“advertising spiral”. We wish to point out at this stage that the
focus of this paper is not about the product life cycle concept.
We will only highlight some of its aspects as will be useful for
the main focus our paper which is advertising spiral.
THE PRODUCT LIFE CYCLE
The product life cycle is a business analysis tool which attempts
to identify a set of common stages in the life of commercial
products (Wikipedia, 2013).
It is an important concept in marketing and describes the stages
a product goes through when it was thought off until it finally
disappears (Riley, 2012).
Muhs (1985) quoting Day (1981) likens the product life cycle to
the biological analogy of birth, growth, maturity and decline.
According to him, the first full exposition of the concept as we
know it today appeared in 1957 during the 39th National
Conference of the American Marketing Association in a paper
presented by Conrad Jones who was involved in new product
planning. Quoting Muhs, Jones posited that “There are
compelling forces behind this drive for new products. There is a
life cycle that is characteristic of many-if not most-products.
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Since all products are ‘new’ at their outset, we can call it the
basic life cycle for new products”. A reproduction of this life
cycle by him is shown below.
THE BASIC LIFE CYCLE OF NEW PRODUCTS
Source: Muhs W.F. (1985) “The Product Life Cycle Concept”,
P: 3
The
concept and the stages as
earlier propounded by Jones remain relevant till date. Modern
writers on the subject matter including Kotler (1999) and
Perreault and McCarthy (2003) have however reduced the stages
to four and which are market introduction, market growth,
market maturity and sales decline. Anyanwu (2003) however
included a pre-introduction stage which Dawe (2013) argued is
not necessary as the main application of the concept is to guide
the type of marketing activities to focus on.
BASIC ASSUMPTIONS OF THE CONCEPT
29
According to Kotler (I999), to say that a product has a life cycle
is to assert four things.
 Products have a limited life
 Product sales pass through distinct stages, each posing
different challenges, opportunities and problems to the
seller.
 Profits rise and fall at different stages of the product life
cycle.
 Products
require
different
marketing,
financial,
manufacturing, purchasing and human resources strategies
in each stage of their life cycle.
Contributing to the subject matter, Perrault and McCarthy
(2003) added that; product life cycles describe industry sales
and profits for a product idea within a particular period and that
sales and profits of an individual brand may not, and often do
not, follow the life cycle pattern. They may vary up and down
throughout the life cycle-sometimes moving in the opposite
direction of industry sales and profits. Furthermore, a product
may be in a different life cycle stages in different markets.
According to them, product life cycles also vary in length and
may take only 90 days incase of toys to possibly 100 years as
examplified by petrol engine cars. How long a product life cycle
takes and the length at each stage is basically a function of the
comparative advantages the product has over its competitors,
how easy it is to use and how its advantages can he
communicated to the market. On the subject matter, Riley
(2013) opined that there are no set schedules for the stages of a
product life cycle. Differences will occur based on the type of
30
product, how well it is received in the market, the promotional
mix of the company, and the aggressiveness of competition.
Cravens (1982) agrees with Perrault and Riley that all product
sales do not follow the life cycle curve but that many do or
would, if adjustments in corporate strategies were not made to
alter life cycle patterns. According to him, the basis of the life
cycle analysis is that a new product starts out in the introductory
stage, moves next to a growth stage, then to maturity, and
eventually declines and possibly dies. Sales start to build up in
the introductory stage, expanding at an increasing rate until late
in the growth stage, then reaching a maximum total during the
maturity stage and finally leveling off at the declining stage. The
quoted authors were however united in their view that consumer
perception determines the stage of the product and must be
worked upon.
While in agreement with the positions of the quoted authors on
the basic assumptions of the PLC concept, I feel that in addition
marketers should not assume that every time product sales peak
and then decline, a product is in the final stages of its life cycle
and marketing support should therefore cease. Marketers need a
wide range of data and analysis to help them determine the
phase a product is in and whether it can be extended through
marketing action.
USES OF THE CONCEPT
Agbonifoh et al (1998), Craven (1982), Riley (2013) and Dawe
(2013) all agree that the product life cycle concept is not just a
planning but a strategic marketing planning tool. From their
31
works on the subject matter, we arrive at the following as the
areas it can be applied in strategic marketing planning.
 Each stage in the product life cycle is often linked with
changes in the flow of raw materials, parts and distribution
to markets. Inputs must therefore be adjusted in line with
increasing competitions.
 Depending upon the life cycle stage, product-market
attractiveness will, in general, decline as the product
advances through the stages. A good knowledge of the life
cycle stage will enable management make appropriate
adjustments in resource applications.
 As the stages in the product life cycle correspond with
foreseeable increases or decrease in revenues, the PLC,
factor shall allow for business strategies to be planned in
concert with the marketing mix to maximize a brand’s
potentials during each stage.
 When used alongside carefully analyzed sales figures and
forecasts, it provides a useful guide to marketing tactics that
may be most appropriate at a given time.
 The four stages not only represent the awareness of the
product in the eyes of the consumer but the profit resulting
from product sales which helps marketing management
shape marketing and pricing.
 Recognition of the life cycle stresses the importance of new
product planning since older products are not likely to grow
and contribute to profits as much as new products.
 Management requirements at different stages also vary; thus
corporate and marketing functions will vary depending on
the life cycle stages.
32

It is also a useful tool for monitoring sales results overtime
and comparing them with products having similar life
cycles.
THE ADVERTISING SPIRAL
The advertising spiral is a chart that parallels a product’s life
cycle and points out what to be done in each stage of the
product’s life (Eneida M., 2006). In the opinion of Anyanwu
(2003), it depicts a situation where goods, services or ideas are
positioned in the market by the instrument of advertising.
According to Muhs (1985), the term “advertising spiral” was
first used in 1931 by Otto Kleppner in his classic text
Advertising Procedure in which he labeled his version of a
product life cycle as the “advertising spiral”. Though his focus
was on advertising he conceptualized a product life cycle and
stated thus”.
This evolutionary process is one in which most
products participate, and can be traced as it
passes through three phases, the “pioneering”
stage, the “competitive” stage and the
“retentive” stage. What the advertisements for
any given product shall say depends largely upon
the stage in which the product finds itself at that
time.
Kleppner envisioned an evolutionary cycle which can go
through a transition and start another cycle-the spiral effect. The
product stretches out to include new buyers or new uses of the
product and a time may finally come when the answer is to find
new products. Kleppner’s view is very interesting and useful.
33
Following this position, companies can only survive by constant
search for new users or new buyers for their existing products.
Continuous innovation should however be the rule rather than
the exception. The society (market) is dynamic with human
needs, wants and tastes are continuously changing. The only
way for companies to survive is to move along with the times.
The concept as propounded by Kleppner has stood the test of
time in spite of the several critical reviews including Anyanwu’s
review with the addition of a ‘phasing out stage’ to the stages in
the spiral.
For the purposes of this article however, the three stage process
comprising the pioneering, competitive and retentive stages
shall be adopted.
THE STAGES OF THE ADVERTISING SPIRAL
Muhs (1985), Agbonifoh et al (1998), Chan (2013) and
McFarlin (2013) with Anyanwu (2003) differing all agree with
Kleppner that the advertising spiral should contain only the
pioneering, the competitive and retentive stages. The spiral
which derives from the forms of advertising as per the product
life cycle shall be briefly discussed hereunder.
Pioneering Stage
Pioneering advertising refers to new forms or new ways of
getting across a marketing message. Advertising at this stage
places emphasis on establishing a need on the consumer’s mind
and illustrating how the product will solve that need.
Competitive Stage
Advertising here focuses on the consideration of your product as
better as or worse than that of your competitors as well as
34
finding out how they market their products and the
improvements on the techniques they use.
Retentive Stage
Retentive advertising is referred to as reminder advertising. In
this case, the consumer is already well aware of the product
being offered and does not need to be convinced to buy it. The
idea behind the advertising spiral is that marketers believe that
advertising a product should not be a static process. Overtime,
consumers become familiar with a product. When this happens,
advertisers are required to change their marketing
communications accordingly.
APPLICATIONS OF THE SPIRAL WITH REGARDS TO
PRODUCT LIFE CYCLE
As earlier pointed out, the advertising spiral as a management
decision tool is a chart that parallels a product’s life cycle
pointing out what has to be done in each stage of the product’s
life. The spiral provides a point of reference for determining
which stage or stages a product has reached at a given time in a
given market and what the thrust of the advertising message
should be.
It is important for deciding on strategy and giving a creative
team a clear perspective on what information it needs to
communicate to prospects, customers and consumers. According
to Chan (2010), it can be used to answer the following questions
with regards to the product life cycle.
 In which stage is a product?
 Should we use pioneering advertising to attract new users to
this product?
35

Should we work harder at competitive advertising to obtain
a larger share of the existing market?
 What portion of our advertising should be pioneering and
what portion competitive?
 Are we simply coasting in the retentive stage? If so, should
we be more aggressive?
Chan notes that these questions are relevant considering the fact
that
 A product may hold existing customers while seeking new
markets with pioneering advertising.
 Products do not move through the stages at the same speed.
The predictive role of the advertising spiral with regard to the
product life cycle can however be fully appreciated if the stages
in both concepts are matched with one another.
COMPARATIVE ANALYSIS OF THE STAGES IN BOTH
CONCEPTS
Though Anyanwu (2003) quoting Zikmund and Damico (1995)
included a pre-introduction and decline and/or phasing out stage
in his comparative analysis of the two concepts, all other
existing works on the subject matter limited the stages to three
namely:
 Market introduction/pioneering stages
 Growth/competitive stages
 Maturity/retentive stages
In agreement with Eneidam (2006), we adopt the three stages of
the advertising spiral as corresponding to the four stages of the
product life cycle.
36
A.
MARKET INTRODUCTION
This stage corresponds to the pioneering stage of the advertising
spiral. According to Chan, consumers at this stage pay little or
no attention to the new product regardless of the manufacturer’s
efforts at developing and promoting it because sometimes the
need has not occurred to consumers. They consequently do not
feel a compulsion to buy the product. For a product to survive
this stage the role of advertising shall be to implant a new
custom, change habits, develop new usage and cultivate new
standard of living. The purpose of advertising at this stage of the
product life cycle is to educate consumers about the new product
or service. Advertising at this stage should stress on what the
product can do, offer or provide that could not have been done,
offered or provided by any product before. Advertising aims at
convincing consumers that they can accomplish something they
couldn’t before through the use of the new product. It must
show that previous ideas or conceptions are antiquated, previous
methods have been improved and that past limitations have been
overcome.
B.
GROWTH STAGE
This stage corresponds to the competitive stage of the
advertising spiral. Marketers assume that this is a very crucial
stage in the life of a product in that product positioning must be
accomplished at this stage. This stage attracts the highest
advertising expenditure as advertisers try to build selective
rather than primary demand. At this stage, a pioneering product
gets accepted by consumers engendering competition since
consumers have desire for it. Advertising at this stage should
focus on communicating the products position and
differentiating the products to the consumers. At this stage, the
37
emphasis is no longer to introduce consumers to a brand but to
give them a reason why the product is superior – its superiority
over similar brands must he established in order to gain
preference. Anyanwu (2003) opines that the ultimate leader will
be the brand that offers consistent and unbroken promise to the
consumers.
C.
MATURITY STAGE
The maturity stage corresponds to the retentive stage of the
advertising spiral. Anyanwu, (2003), Eneida M. (2006),
McFarlin (2013) and Chan (2010) are however of the opinion
that the period should include the decline stage of the product
life cycle – an opinion Agbonifoh et al (1998) shares. The
advertising goal at this stage is to maintain market share and
ward of consumer trial of other products. The strategy should
focus on reminder and emotional adverts aimed at encouraging
repeat purchase. Little copy is necessary as the consumer does
not need much information. The ad should be highly visual and
may feature only the brand name of logo as the product is now
well known by consumers. Emphasis should be placed on the
reinforcement of brand name. Institutional advertising should
also be made use of.
5.0
CONCLUSION
Having critically reviewed the concepts of advertising spiral and
the product life cycle, I wish to make the following conclusions.
Companies can only survive if they can delight consumers
through their product offerings. Such product offerings lose
their appeal and profit potentials over time i.e. their life cycle.
Companies must therefore strive to put measures in place to
maximize the profit potentials of their products over their life
38
time. A management decision tool that will be of much help in
accomplishing this is the concept of the advertising spiral.
39
REFERENCES
Agbonifoh, B.A., Ogwo, O.E., Nnolim, D.A., (1998), Marketing
in Nigeria: Concepts, Principles and Decisions, Aba:
Afritowers Limited.
Anyanwu, A. (2003), Promotional Strategy: A schematic
Approach, Owerri: Avan Publishers Ltd.
Chan, R. (2010), “The Advertising Spiral And Brand Planning”,
cwx. Prenhall. Com 1…/CHO3.doc.
Cravens, D.W., (1982), Strategic Marketing, Homewood
Illinois:
Richard D. Irwin, Inc.
Dawe, T, “What Are Product Life Cycles”,
www.ehow.com>ehow>Business. Retrieved August 2013.
Eneida, M. (2006), “What is Advertising spiral?
“in.answers.yahoo.com.
Kotler, P., (1999), Marketing Management, New Delhi: Prentice
Hall of India.
McFarlin, K. (2013) “The Stages of Advertising Spiral”, small
business.chro.com. Retrieved, August 2013.
Muhs, W.F. (1985), “The Product Life Cycle Concept”. Origin
And Early Antecedents”, www.ideals.illinois.edu.
40
Perreault, D.W. and McCarthy, E.J. (2003), Essentials of
Marketing, New York: McGraw Hill.
Riley, J. (2012), “The Product Life Cycle”,
www.tutorZu.net/business/goose/market.
Wikipedia, “Product Life Cycle”, en.wikipedia.org/…/product
life cycle. Retrieved August 2013.
41
COOPERATIVE GOOD GOVERNANCE AND ITS IMPACT
IN NATIONAL DEVELOPMENT.
BY
MICHEAL MAUREEN CHINENYE
Department of Cooperative Economics and Management
Federal Polytechnic Nekede Owerri
E-mail address: [email protected].
Abstract
The term good governance is widely used today everywhere in
the in the world. Almost all major development institutions
today say that promoting good governance is an important part
of their agenda. Good governance is arguably the single most
important factor in eradicating poverty and promoting
development. Despite this consensus, “good governance” is an
extremely elusive subject. It means different things to different
organizations and different actors within these organizations.
We will be concerned in the following pages with cooperatives
governance as a channel towards societal enhancement.
INTRODUCTION
Good Governance has as its pillars transparency, accountability,
risk management and control. Though the Co-operatives Act
2005 and the Co-operatives (Amendment) Act 2006 have made
provisions for greater transparency and accountability at the
level of co-operative societies, the Cooperatives Division of the
Ministry of Industry, Small and Medium Enterprises, Commerce
and Co-operatives has worked out this Code of Best Practices,
in consultation with main stakeholders of the co-operative
42
movement. The Code of Best Practices provides effective
guidelines for the proper functioning of co-operatives and
eventually ensures sound co-operative development. Cooperative governance regulates the relationship between
members of co-operatives, the Board of representatives of
members (that advises management on behalf of members) and
management (that has the care and control of the co-operative).
Good governance includes decision making processes that affect
a country’s economic activities and its relationship with other
economies. It is a situation where the elected bodies direct,
control, and exerts authority concerning the affairs of the
governed to stimulate and bring about positive changes in their
lives. The governance is perceived to be good when those
elected work diligently to see to the maintenance of the masses.
According to International cooperative alliance (ICA), a cooperative is an autonomous association of persons united
voluntarily to meet their common economic, social, and cultural
needs and aspirations through a jointly-owned and
democratically controlled enterprise.
GOOD GOVERNANCE
Governance is "the process of decision-making and the process
by which decisions are implemented or (not implemented). The
term governance can apply to corporate, international, national,
local governance or to the interactions between other sectors of
society. The concept of "good governance" often emerges as a
model to compare ineffective economies or political bodies with
viable economies and political bodies. The concept centers on
the responsibility of governments and governing bodies to meet
the needs of the masses as opposed to select groups in society.
There is no single and exhaustive definition of “good
43
governance,” nor is there a delimitation of its scope that
commands universal acceptance. The term is used with great
flexibility; this is an advantage, but also a source of some
difficulty at the operational level. Depending on the context and
the overriding objective sought, good governance has been said
at various times to encompass: full respect of human rights, the
rule of law, effective participation, multi-actor partnerships,
political pluralism, transparent and accountable processes and
institutions, an efficient and effective public sector, legitimacy,
access to knowledge, information and education, political
empowerment of people, equity, sustainability, and attitudes and
values that foster responsibility, solidarity and tolerance.
According to Eyinla (2002) as cited by Uzoh (2011), good
governance means accountability, security of human right and
civil liberties, devolution of powers and respect for local
autonomy. There is a significant degree of consensus that good
governance relates to political and institutional processes and
outcomes that are deemed necessary to achieve the goals of
development. It has been said that good governance is the
process whereby public institutions conduct public affairs,
manage public resources and guarantee the realization of human
rights in a manner essentially free of abuse and corruption, and
with due regard for the rule of law. The true test of "good"
governance is the degree to which it delivers on the promise of
human rights: civil, cultural, economic, political and social
rights. The key question is: are the institutions of governance
effectively guaranteeing the right to health, adequate housing,
sufficient food, quality education, fair justice and personal
security? Fashiola (2011) noted that advancement in the area of
social welfare, education health care, employment and the
44
protection of the human rights are considered indicative of good
governance.
ATTRIBUTES OF GOOD GOVERNANCE
Good governance has some attributes/characteristics. It is
generally considered participatory, consensus oriented,
accountable, transparent, responsive, effective and efficient,
equitable and inclusive, and follows the rule of law. Good
governance is responsive to the present and future needs of the
organization, exercises prudence in policy-setting and decisionmaking and focuses on the best interests of all stakeholders.
Below are some of the principal attributes of good governance.
Rule of Law: Good governance requires fair legal frameworks
that are enforced by an impartial regulatory body, for the full
protection of stakeholders/members.
Transparency: Transparency means that information should be
provided in easily understandable forms and media; that it
should be freely available and directly accessible to those who
will be affected by governance policies and practices and its
decisions are in compliance with established rules and
regulations.
Responsiveness: Good governance requires that organizations
and their processes are designed to serve the best interests of
stakeholders/members within a reasonable timeframe.
Consensus Oriented: Good governance requires consultation
to understand the different interests of stakeholders/members in
order to reach a broad consensus of what is in the best interest of
45
the entire stakeholder group and how this can be achieved in a
sustainable and prudent manner.
Equity: The organization that provides the opportunity for its
stakeholders/members to maintain, enhance, or generally
improve their well-being provides the most compelling message
regarding its reason for existence and value to society.
6. Effectiveness and Efficiency: Good governance means that
the processes implemented by the organization to produce
favorable results meet the needs of its stakeholders/members,
while making the best use of resources – human, technological,
financial, natural and environmental – at its disposal.
Accountability: Accountability is a key tenet of good
governance. Who is accountable for what should be documented
in policy statements. In general, an organization is accountable
to those who will be affected by its decisions or actions as well
as the applicable rules of law.
Participation: Participation by both men and women, either
directly or through legitimate representatives, is a key
cornerstone of good governance. Participation needs to be
informed and organized, including freedom of expression and
assiduous concern for the best interests of the organization and
society in general.
THE CONCEPT OF COOPERATIVE GOVERNANCE
Unlike shareholder organizations, the cooperative society is one
hundred percent democratically controlled and jointly owned by
its member-owners. Large or small, each member-owner has an
46
equal vote at the Annual General Meeting. Co-operative
governance regulates the relationship between members of cooperatives, the Board of representatives of members (that
advises management on behalf of members) and management
(that has the care and control of the co-operative). The main
function of cooperative governance practices is to ensure that
executives pursue the goals determined either by owners or by
those responsible for strategic decisions and not their own goals.
The good co-operative governance will (a) ensure that board and
management pursue objectives that are in the interests of
cooperatives and members. In this way, the Board of Directors
is representative of diverse membership. (b) Lead in effective
monitoring of activities of societies. (c) Ensure efficient and
effective use of available resources. (d) Reduce conflicts and (e)
Increase accountability and transparency in co-operatives.
Cooperative business as an organization has its own governance
which regulates the relationship between the members, the
board of directors, council of inspectors, audit committee and
management.
MEMBERS: The general meeting is made up of all registered
members of the society. Members are the foundation of the
cooperative and the society is organized in line with their needs.
Their support, through patronage and capital investment keeps it
economically healthy. Their changing requirements shape the
cooperative's future. Members collectively elect the Board of
Directors. (Michael M.C. et al 2013). Statutory law and the
basic legal documents of cooperative articles of incorporation,
bylaws, and contracts between the cooperative and its members
give the members the tools to control the cooperative and the
duty to use those tools for their mutual benefit.
47
BOARD OF DIRECTORS: Board of Directors in a
cooperative occupies a key position between members and hired
management. They are both users of its services and
representatives of other members who depend on the same
services. Acting as a group, Board of Directors set the objectives
for the cooperative and make decisions that set the course the
cooperative will follow in achieving those objectives. At the
local level, which is made up of primary societies and secondary
societies, this body is referred to as management committee,
while at the National and International level, this elected body
that is made up of co-operative professionals and experts which
may be employed to manage the affairs of the society is referred
to as Board of Directors.
COUNCIL OF INSPECTORS: These are supervisory
committees in cooperative society. They are not members of the
Management committee but are elected by the members at their
annual general meetings to monitor the activities of the
management committee on behalf of the members. They are
being referred to as watch dogs of the society. They are
empowered to have access to the books and records of the
society. They have the power to summon special or emergency
meetings if there is need. (Obi-okogbuo 2011).
AUDIT COMMITTEE: An Audit Committee may be defined
as a Committee of non-executive Directors, responsible for
liaising with the full Board, Internal Audit and External Audit. It
may be composed of 3 to 5 nonexecutive members (members of
the Board of Directors who are neither officer nor employees
having the responsibility to maintain contact with the internal
and independent auditors of the society). The Audit Committee
48
shall abide with the following codes of ethics and good
governance:
MANAGEMENT: The Management should control the
activities of the cooperative society, ensure that policy decisions
taken by the Board are implemented, follow the objectives and
guidelines set out by the Board, ensure that the functioning of
the society is in line with co-operative values and principles, and
the Co-operatives Act 2005 and the Co-operatives (Amendment)
Act 2006. This body is accountable to the board as well as the
general meeting vested with the highest powers.
CONTRIBUTIONS OF COOPERATIVES IN THE
GLOBAL ECONOMY AND SUSTAINABLE
DEVELOPMENT
It is estimated that one million cooperatives are active around
the world, serving the needs of one billion members and
providing jobs to over 100 million people. The top 300
cooperatives from all activity sectors combined generate 2
trillion dollars in global revenue. This figure is comparable to
the world's ninth largest economy. The global cooperative
movement represents the largest democracy and most
impressive educational system in the world by virtue of
cooperatives' democratic governance and the role they play in
educating their elected officers and members on the economy
and on democracy.
Cooperatives exist in all sectors of the economy and impact all
aspects of life. In many countries, they are key players in such
sectors as manufacturing, agriculture, retail, financial services
and social services. Wherever cooperatives are active, they
strengthen the communities they serve and in addition to their
49
significant economic contributions, they also play a major role
in social and human development. It cannot be over emphasized
the important contribution that cooperatives make to the socioeconomic well-being of people and communities and to a
balanced and more stable plural economy. Cooperatives make
unique and relevant contributions because: They are rooted in
the values and principles of cooperation. They have a long-term
commitment to their communities and the environment. They
have a solid democratic governance process that encourages
people to participate in the management of their cooperative and
provides training in democracy. They promote job creation and
retention in the communities they serve. They strive to be
profitable, not as an end in itself, but to effectively meet the
needs of their current and future members. They contribute to
the stability of the economy because their actions are based on a
long-term perspective and their strategies are people-oriented.
They use a business model that is robust and viable, at the local,
national and international levels. They are very resilient. They
support the development of the technological infrastructure
geared to young people and make it easier to share information.
They encourage governments to include cooperative studies in
their school curriculums. They help the next generation of
entrepreneurs develop new cooperatives and finally they create
proper atmosphere for future cooperators.
SUSTAINING COOPERATIVE POTENTIALS IN A
CHANGING AND FRAGILE ECONOMY
Cooperatives today are helping many international organizations
fulfill their missions and are contributing to the achievement of
the Millennium Development Goals. This is due to their
involvement in the areas of food security, poverty reduction and
50
access to healthcare, gender equality, and mitigating the impacts
of crises on high-risk populations. Their unique participative
governance and democratic practices based on the principles and
values of cooperation also support sustainable development. To
continue to maximize their full potential within a changing
world and fragile economy, cooperatives must:
 Continue to improve their overall performance and
remain competitive to ensure their longevity
 Aim at successful and sustainable business growth,
guided by member needs and environmental
sustainability
 Demonstrate a greater capacity for innovation
 Remain relevant and current by training their employees,
elected officers and members
 Prepare future cooperators
 Promote and support the creation and development of
new cooperatives.
 Acquire a greater competitive edge by leveraging their
close relationship with their members
 Systematically identify members' needs that have not
been properly addressed yet
 Become more organizationally agile within the
parameters of their mission and the principles that guide
their actions
 Clearly communicate and show how they are different
 Join forces with other cooperatives through partnerships
and collaborative agreements to promote cooperative
movement.
51
CONCLUSION
Cooperative governance, which is based on transparency, the
democratic election of officers, member participation, and a
long-term vision, allows cooperatives to build a relationship of
trust with their members, employees, clients and communities.
The close relationship that cooperatives have with their
members explains their exceptional ability to meet their needs.
The shared vision that inspires them leads to more concerted
action. To continue to stand out in a globalized and
technologically advanced economy, cooperative business
enterprises must be proactive so as to be able to withstand the
rapid changes that impact their environment.
RECOMENDATIONS
Important decisions are currently being made around the world
without considering the unique aspects of the cooperative
model. This is because the model is not very well-known or
recognized, even though it has demonstrated its ability to be
successful. It has survived crises better than many other models
thanks to its distinct ownership structure and capital stability. To
prevent their business model from being overlooked or
weakened, and to allow them to gain political influence that is
more in line with their global economic influence, cooperatives
must:
 Combine their efforts and resources to give their
international interventions greater impact
 Commit the necessary resources to promote and spread
the word about their achievements and tangible
contributions
to
the
world's
socio-economic
development, and the innovative ways in which they
have responded to today's challenges
52





Intensify their representation activities in order to make
themselves better known to policy-makers and be
considered in stimulus and economic development
projects
Commit the necessary resources to develop new
cooperatives and to support their networks, and
encourage governments to do the same.
Communicate their financial, social, human and
environmental achievements more effectively.
Get researchers interested in the cooperative movement
and set up an international cooperative knowledge and
database to serve as a foundation, so that cooperative
studies become an essential component in the academic
and business world.
Prepare the next generation, make room for young
leaders and encourage their participation in cooperative
activities.
53
REFERENCES
Co-operative governance http://www.cooperators.ca/en/AboutUs/why- coops-are-better/co-operative-governance.aspx
retrieved on 23/05/2013 Creating a culture of board
excellence http://www.governancepro.com/news/
retrieved on 22/05/2013
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Landell, M.P. & Serageldin, I. (1991): Governance and the
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Uzoh, O. (2011): What Nigeria Needs to have Good
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Saturday October 1, 2011, vol. 8,
No. 457.
55
FOOD SECURITY, POVERTY ALLEVIATION,
AGRICULTURAL PRODUCTIVITY AND THE
DYNAMICS OF ECONOMIC GROWTH IN NIGERIA
ECHETA DESMOND .O.
Department of Banking and Finance
Imo State Polytechnic Umuagwo
E-MAIL [email protected]/[email protected]
PHONE: +2348037248832
ECHETA MARYROSE .O.
Department of Science Laboratory Technology
Imo State Polytechnic Umuagwo
UNACHUKWU UCHE .O.
Department of Banking and Finance
Imo State Polytechnic Umuagwo
OJIUKO AUSTINE .A.
Department of Banking and Finance
Imo State Polytechnic Umuagwo
Abstract
The problem of food insecurity resulting from poor agricultural
productivity with its attendant high poverty level in Nigeria
cannot be over emphasized , hence, the need to examine food
insecurity, poverty alleviation, agricultural productivity and
dynamics of economic growth in Nigeria. The total departure of
the Nigerian economy from agricultural setting in the 50’s and
56
60’s when agriculture contributed up to 82 percent of total
export in 1960 to what holds in the 70’s and beyond when
agriculture contributed less than 5 percent while crude oil share
rose to 92 percent is a source of worry. This is indicated by the
continued rise in poverty level from 28.1 percent in 1980 to 65
percent in 1996. Secondary data from CBN Statistical bulletin
were collected for the period 1980 to 2010. Solow-Swan
neoclassical growth model was employed in analyzing the
growth dynamics of the Nigerian economy. Employing dynamic
econometric approach, the research showed that a long –run
relationship exists between gross domestic product and all the
independent variables; food security, number of poor people
and agricultural productivity. The study recommends that any
economic policy that will make the Nigerian non oil sectors
perform effectively will improve the economy. Consequently
domestic agricultural policies should be pursued with vigour
and government should declare state of emergency on
agriculture and other non oil sectors to achieve the desired
growth.
Key words; Poverty Alleviation, Food security, Agriculture,
Productivity, GDP,
Granger Causality, Stationary
1. Introduction
In most Sub-Saharan Africa, food security and agricultural
productivity is yet to account for positive changes in growth
patterns. In the framework of addressing the growth imperatives
of the Nigerian economy, agricultural production challenges,
food insecurity and poverty are the bane. This is true based on
the knowledge that majority of Africans (Nigeria inclusive) live
57
in rural communities, where poverty and social exclusions are
severe. In economic growth and development economics it is
expected that innovations in agriculture will translate to more
food (food security) which will in turn reduce poverty.
To Xinshen, et al (2007) agriculture-led growth played an
important role in slashing poverty and transforming the
economies of many Asian and Latin American countries. They
are of the view that this has not been replicated in Africa. For
example, Nigeria is endowed with numerous natural resources
that are capable of driving growth, yet agriculture and food
security lag behind thereby worsening the poverty profile. In the
words of Echeta, et al (2013) 1.2 billion people in the world live
in extreme poverty (less than one dollar per day). Agricultural
output is important in any economy because of its role in the
growth process. Hirschman, (1958) theorized the linkage effects
in the growth process to include backward and forward linkages
created by investments in the industrial sector. However,
Xinshen et al (2007) citing Johnson and Mellor (1961)
contrasted this fact and emphasized the existence of production
and consumption linkages both in agricultural and nonagricultural sectors. Interestingly, agricultural production
generates forward Production linkages when agricultural outputs
are supplied as inputs to further production in the nonagricultural sector. This is basically seen in the agro-processing
and processed food market which provides growth opportunities
for import substitution. Agriculture exhibits backward linkage
through its demand for intermediate inputs such as fertilizers.
Haggblade, et al (1989) in Xinshen et al (2007) noted that these
production linkages are likely to deepen as an economy
modernizes, but decline in relative importance alongside
agriculture’s share of production.
58
STATEMENT OF PROBLEM
Agricultural development was targeted as a key factor to driving
industrialization in the seventies. However, industrial strategy
was not channelled towards supporting agriculture.
Unexpectedly, the import substitution agenda of the seventies
and eighties did not show any significance in sourcing raw
materials domestically but was tuned towards imports. During
the Nigeria’s independence in 1960, agriculture was
contributing 64 percent of the GDP. With the oil boom of the
1970’s crude oil had over taken agriculture as the largest
contributor of government revenue and major foreign exchange
earner (Eboh,2011). Eboh (2011) hinted that by 1970, crude
oil’s share of total exports had reached 58 percent while
agricultural share of total export had dropped from 82 percent in
1960 to 30 percent in 1970. By 1974, crude oil share of total
exports had risen to 92 percent while agriculture share of total
exports had dropped to less than 5 percent. This scenario
continued unabated and eventually led to the crowding out of
the agricultural sector by the petroleum sector. The boom from
the oil sector led to overvalued exchange rate and loss of
competitiveness of Nigeria’s non-oil sectors (manufacturing
industries and agriculture). This is captured by the Dutch
Disease syndrome. Also worrisome is the fact that, different
agricultural sector initiatives such as the National Accelerated
Food Production Programme (NAFPP) in 1975, Operation Feed
the Nation (OFN) in 1976, Land Use Decree of the 1978, the
River Basin and Development Authorities (RBRDAS), Green
Revolution in 1980, Agricultural Development Projects (ADPs)
Directorate for Food, Roads and Rural Infrastructure (DFRRI)
in 1986 and others did not improve the precarious situation of
59
declining food production. Eboh (2011) holds that by early
2000s, the economy had shrunk to about $45 billion, and income
per capita nosedived from about $1150 in 1981 to mere $300 in
2001. He further stressed that line rose from 28.1 percent in
1980 to 65 percent in 1996. This is disturbing as it leads to
deterioration in human development indicators (Life expectancy,
literacy rate, Mortality rate, and per capita income (Median
Income). The nutritional status of the average Nigerian remained
precarious as the country consistently recorded deficit average
per capita calorie intake and continued on a downward move
towards a situation where about 100 million people will be
forced into destitution. The objective of this paper is to examine
the relationship between growth of the Nigerian economy and
each of the independent variables of poverty, food security and
agricultural production. It will therefore be answering the
following questions; what is the relationship between the growth
of the Nigerian economy and net export of food? What is the
relationship between the growth of the Nigerian economy and
poverty level in Nigeria? Is there any relationship between
agricultural contribution to the gross domestic product and the
Nigeria growth dynamics?
2. Literature Review
Conceptually, there is a link between nutrition and economic
growth. Inadequate access to food increases malnutrition and
reduction in labour productivity which is the breeding ground
for poverty. Nadav (1996) employing the extended Solow
growth model emphasizes the importance of nutritional capitals
using data from 97 countries and found that nutritional levels
have a large and significant impact on economic growth. This
finding corroborates Fogel’s result (1991) that increased calorie
60
intake, reduced mortality and raised productivity among the
working poor during early stages of Western Europe’s
development. Forgel holds that engaging the ultra-poor into the
labour force and raising the energy available for work by those
in the labour force explains about 30 percent of the British
growth in national median income (per capita income) over
twenty years. Xinshen,et al (2007) citing Timmer (1989);
Alesina and Perotti (1993) maintaines that agriculture affects
economic growth through its potential to stabilize domestic food
security. They are of the view that periodic food crises
undermine both political and economic stability. Albeit food
imports are likely to palliate such crises temporarily, they are
not significant option in addressing long-term food security.
Theoretically, Awokuse, (2009) borrowing from (Lewis, 1954;
Hirschman, 1958; Fei and Ranis, 1961; Jorgenson, 1961)
contends that agricultural sector does not have strong linkages to
other sectors and lack adequate innovative structure necessary
for fostering higher productivity and export growth. Similarly,
Matsuyama (1992) refutes the claim that agricultural
productivity is an engine of economic growth. To Schiff and
Valdez (1998) many countries in response to the findings of
Matsuyama (1992) promoted anti-agriculture programmes
emphasizing the role of the manufacturing sub-sector. Gollin et
al (2002) argue that growth in the overall economy depends on
the development of the agricultural sector. To Ravallion and
Datt (1999) agricultural growth, as opposed to growth in
general, is typically found to be the primary source of poverty
reduction. However, recent empirical evidence exists on the
relationships between agricultural value added and economic
growth. Tiffin and Irz (2006) cited in Awokuse (2009) found
strong evidence that there is causality from agriculture to
61
economic growth for developing countries, but the causality
results for developed countries were inconclusive. On poverty,
Dollar and Kraay (2002) showed that growth has a significant
impact on poverty reduction, but there is substantial variation in
the literature about the extent to which poverty declines.
This current study is unique because it has incorporated other
variables like number of poor people, net food export combined
with agricultural contribution to GDP to gauge the impact on the
growth dynamics of the Nigeria economy. Theoretically, we
shall align this work on the agricultural-led growth hypothesis
which contends that investment in agriculture and consequent
creation of infrastructure and institutions in other sectors is the
link for national economic growth.
3 Theoretical Frameworks and Model Specification
The Solow-Swan neoclassical growth model will be adopted in
analyzing the growth dynamics of the Nigerian economy
(Solow, 1952).
The model assumes constant returns to scale aggregate
production functions given as
Yt
=
Where
L
= labour
Kt Lt Bt ……………………………………………………..(1)
Y = real GDP per capita K = real gross capital
B = Hicks-neutral productivity term
Consequently, the contribution of each of the explanatory
variable could be modeled thus;
GRGDP
=
F(FODSE, NOPOP, AGPRO) ------(2)
or
GRGDP
=
F(FODSEt, NOPOPt, AGPROt)-----(3)
62
Equation 2 and 3 are the same only that subscript t is added
(subscript “t” denotes the time period).
In a more compact way equation 3 changes to equation 4 given
as
GRGDPt
=
FODSENOPOPβAGPRO--------(4)
Taking the log transformation and adding the stochastic
variable, equation 4 transforms to equation 5 given as;
LNGRGDPt = LNFODSEt+βLNNOPOPt+LNAGPRO-----(5)
Econometrically, equation 5 is rewritten in regression equation
form as;
LNGRGDP =
βo+β1LNFODSEt+β2LNNOPOPt+β3LNAGPROt+Ut------(6)
Where
LNGRGDPt
=
Growth rate of GDP at
LNFODSEt
=
Growth rate of Net food export
LNNOPOPt
=
Growth rate of number of poor
people
LNAGPROt
=
Growth rate of agricultural
contribution to GDP
Ut
=
the Stochastic variable or error
term
βo is the intercept while
βis are the coefficients to be estimated where i = 1----3
On the apriori expectation
Β1>0, β2<0, β3>0
63
4. Empirical Results, Interpretation and Discussion of
Findings
The set of data used in the analysis consist of annual time series
over the period 1980 to 2010. The data were mainly in variables
of interest (they include GDP, agricultural productivity (output),
number of poor people and food security. However, net food
export was used as proxy for food security. The data were
obtained from Central Bank of Nigeria and World Bank
bulletins. To make our data clearer for the analysis and to
capture the growth dynamics of the Nigerian economy, we
converted all variables to their respective growth rates. We also
took the natural logarithms of all the variables to reduce possible
problems associated with heteroscedasticity. The univalent time
series properties were ascertained using the Unit root test that
employed augments Dickey and Fuller (1979). The test results
for each of the variable in the system proved to be I(1);
however, only the NOPOP is found to be non-stationary at
levels but achieved stationarity after first differencing. Based on
this fact that our variables are integrated of I (1), we then
engaged the co-integration test to ascertain if there is long run
equilibrium relationship existing amongst variables of the
model. The result implies that the null hypothesis of nocointegration could be rejected at the 5 percent and 1 percent
significance level. In this way, the results suggest that a long run
relationship exists between Gross domestic product growth and
all the independent variables; food security, number of poor
people and agricultural productivity(See appendix for the unit
root test results and co-integration test results ).
Consequently, the nature of the relationships were investigated
using the ordinary least squares estimation technique (OLS)
64
Table 1:
OLS result of our model
Dependent Variable: LNGRGDP
Sample: 1980 2010
Included observations: 31
Variable
Coefficien Std. Error
t
t-Statistic
Prob.
C
LNFODSE
LNNOPOP
LNAGPRO
-0.045100
0.055892
0.322082
0.591498
-0.074654
0.544391
1.778286
3.932548
0.9410
0.5906
0.0866
0.0005
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
0.479351
0.421501
1.061973
30.45025
-43.70975
1.904877
0.604127
0.102670
0.181119
0.150411
Mean dependent var
S.D. dependent var
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)
1.879866
1.396247
3.078049
3.263079
8.286122
0.000456
Source: E-views econometric analysis of the study. (2013)
From Table 1, the long-run regression coefficient of all the
variables has positive relationship with the growth of the
Nigerian economy. However, it is only agricultural productivity
(LNAGPRO) that appears to have a positive and statistically
significant effect on the growth dynamics of the Nigerian
economy.
Food security had its hypothesized sign of
positive relationship with growth of the Nigerian economy but is
not significant in explaining changes in growth.
The number
of poor people surprisingly has positive relationship with the
growth of the Nigerian economy. Although, not significant in
65
explaining the changes in growth. This negates the earlier
hypothesized sign of negative relationship with the dependent
variable. On the global statistics our adjusted R – squared has its
value as 0.421501 which means that 42% of the variations in
GDP growth is explained by the independent variables of
LNFODSE, LNNOPOP and LNAGPRO. The remaining 58
percent is accounted for by the variables not included in our
model.
F-statistic is 8.286122 with probability of 0.000456 meaning
that our model can be used for meaningful policy analysis in the
long run. The Durbin Watson (DW) statistics is within range.
We are not surprised because of the initial data massaging
exercises. DW result suggests reasonable reduction of
heteroscedasticity.
Sample: 1980 2010
Lags: 2




 






 






 






 



66












 






Table 2:
Granger causality test result
Source: E-views econometric analysis of the study. (2013)
The result of the Granger Causality, Table 2 shows that none of
the variables of interest Granger is the cause for the other. This
means that the null hypothesis could not be rejected. The result
of the Granger Causality was conducted at the 5 percent level of
significance with respect to 2 lag length.
Discussion of Findings
In our empirical result food security is positive but insignificant
statistically in explaining variations in GDP growth. This is in
line with earlier study of Awokuse, (2009) that export as an
engine of growth in Africa is weak. Nigeria from our result is on
the down side of export. This makes Nigeria net importer and
recipient of food aid. This has serious negative implication for
poverty reduction in Nigeria. This means that Nigeria will
continue to import food to sustain domestic consumption. The
number of poor people violated the a priori expectation of
negative relationship with growth dynamics of the Nigeria
economy. We are not comfortable with this, but we have this as
67
the explanation: In Nigeria, as GDP is growing, the numbers of
poor people are equally increasing. This is true because over the
years in Nigeria, government fiscal policy to reduce poverty is
yet to have any effect. The huge sums got from the Petro-dollar
merely led to the appreciation of the GDP, but not able to be
translated to poverty reduction. Thus, as GDP increases, the
number of poor people increases thereby worsening the growth
dynamics of the Nigerian economy.
In our result, agricultural productivity (output) was found to
have positive and significant relationship with economic growth.
This corroborated the findings of Awokuse, (2009) using data
for 15 countries, concluded that agricultural value added has
significant contribution to total economic growth. Recall also
that immediately after independence many African countries
(Nigeria inclusive) were net exporters of non-oil merchandize
especially agricultural products. However, this trend changed on
the emergence of oil as the main stay of most economies in Sub
Saharan Africa.
Conclusion and Recommendation
In development economics, diversification of the economy is
superior to mono-cultural system. The incidences of poverty and
food security have remained the raging issue and are
increasingly dominating international discussions. Most
commentators argue that food security and increase in
agricultural output is a precondition for growth of any economy.
The main crux of this paper is to examine food security,
poverty, agricultural productivity and the growth dynamics of
the Nigeria economy. Using the Nigeria data, the empirical
analysis provided evidence that food security, agricultural
68
productivity and number of poor people are all positive
functions of growth of the Nigerian economy. The study
provides evidence that any policy that will make the non-oil
sector to perform effectively will improve growth of the
economy. This is captured by the positive and significant
relationship existing between agricultural output and growth of
the Nigerian economy. Agricultural output will help to boost
food supply in Nigeria thereby helping to make Nigeria net
exporter instead of net importer. The synergy created here will
automatically reduce poverty by increasing per capita income.
RECOMMENDATION
We therefore recommended that;
Domestic policies on agriculture should be pursued with
vigour.
Researches done by tertiary institutions on improved
varieties of crops should be made available to
entrepreneurs for utilization (i.e. the gown meeting the
town)
Policies leading to poverty reduction should not be mere
political gimmick but should be given the desired fiscal
support.
The Nigeria government must as matter of urgent
national issue declare state of emergency in the
agricultural sector and other non-oil tradable. This will
reposition Nigeria as a net exporter of food, earning
enough exchange to support the growth of the economy
and having enough for consumption domestically.
69
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73
Appendix
Unit root test
Levels of lngrgdp
Null Hypothesis: LNGRGDP has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic based on SIC, MAXLAG=8)
Augmented Dickey-Fuller test statistic
Test critical values: 1% level
5% level
10% level
t-Statistic
Prob.*
-6.203267
-3.670170
-2.963972
-2.621007
0.0000
*MacKinnon (1996) one-sided p-values.
Augmented Dickey-Fuller Test Equation
Dependent Variable: D(LNGRGDP)
Method: Least Squares
Date: 05/25/13 Time: 09:17
Sample(adjusted): 1981 2010
Included observations: 30 after adjusting endpoints
Variable
Coefficien Std. Error
t
t-Statistic
Prob.
LNGRGDP(-1)
C
-1.016255 0.163826
1.761245 0.362432
-6.203267 0.0000
4.859520 0.0000
R-squared
0.578824
Mean dependent var 0.056857
74
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
0.563782
1.167772
38.18337
-46.18620
1.610003
S.D. dependent var
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)
1.768098
3.212413
3.305826
38.48052
0.000001
1s dif
Null Hypothesis: D(LNGRGDP) has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic based on SIC, MAXLAG=8)
Augmented Dickey-Fuller test statistic
Test critical values: 1% level
5% level
10% level
t-Statistic
Prob.*
-9.129758
-3.679322
-2.967767
-2.622989
0.0000
*MacKinnon (1996) one-sided p-values.
Augmented Dickey-Fuller Test Equation
Dependent Variable: D(LNGRGDP,2)
Method: Least Squares
Date: 05/25/13 Time: 09:21
Sample(adjusted): 1982 2010
Included observations: 29 after adjusting endpoints
Variable
Coefficien Std. Error
t
D(LNGRGDP(-1)) -1.367780 0.149816
C
0.070696 0.255415
R-squared
0.755329
Adjusted R-squared 0.746268
t-Statistic
Prob.
-9.129758 0.0000
0.276788 0.7841
Mean dependent var 0.271073
S.D. dependent var 2.720501
75
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
1.370367
50.70345
-49.25034
2.051650
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)
3.534506
3.628802
83.35249
0.000000
Levels of lnfodse
Null Hypothesis: LNFODSE has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic based on SIC, MAXLAG=8)
Augmented Dickey-Fuller test statistic
Test critical values: 1% level
5% level
10% level
t-Statistic
Prob.*
-4.866714
-3.670170
-2.963972
-2.621007
0.0005
*MacKinnon (1996) one-sided p-values.
Augmented Dickey-Fuller Test Equation
Dependent Variable: D(LNFODSE)
Method: Least Squares
Date: 05/25/13 Time: 09:22
Sample(adjusted): 1981 2010
Included observations: 30 after adjusting endpoints
Variable
Coefficien Std. Error
t
t-Statistic
LNFODSE(-1)
C
-0.904289 0.185811
3.021243 0.703465
-4.866714 0.0000
4.294800 0.0002
R-squared
0.458256
Adjusted R-squared 0.438908
Prob.
Mean dependent var 0.116666
S.D. dependent var 2.722853
76
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
2.039582
116.4771
-62.91562
1.962379
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)
4.327708
4.421121
23.68490
0.000040
1st dif
Null Hypothesis: D(LNFODSE) has a unit root
Exogenous: Constant
Lag Length: 3 (Automatic based on SIC, MAXLAG=8)
Augmented Dickey-Fuller test statistic
Test critical values: 1% level
5% level
10% level
t-Statistic
Prob.*
-5.221288
-3.711457
-2.981038
-2.629906
0.0003
*MacKinnon (1996) one-sided p-values.
Augmented Dickey-Fuller Test Equation
Dependent Variable: D(LNFODSE,2)
Method: Least Squares
Date: 05/25/13 Time: 09:23
Sample(adjusted): 1985 2010
Included observations: 26 after adjusting endpoints
Variable
Coefficien Std. Error
t
t-Statistic
Prob.
D(LNFODSE(-1))
D(LNFODSE(-1),2)
D(LNFODSE(-2),2)
D(LNFODSE(-3),2)
C
-2.902930
1.430052
0.788409
0.561304
0.290746
-5.221288
3.058291
2.424108
3.054705
0.671198
0.0000
0.0060
0.0245
0.0060
0.5094
0.555980
0.467598
0.325237
0.183750
0.433174
77
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
0.821490
0.787488
2.192179
100.9186
-54.52324
1.864800
Mean dependent var
S.D. dependent var
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)
0.118705
4.755375
4.578711
4.820652
24.16017
0.000000
levels of lnnopop
Null Hypothesis: LNNOPOP has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic based on SIC, MAXLAG=8)
Augmented Dickey-Fuller test statistic
Test critical values: 1% level
5% level
10% level
t-Statistic
Prob.*
-2.576661
-3.670170
-2.963972
-2.621007
0.1088
*MacKinnon (1996) one-sided p-values.
Augmented Dickey-Fuller Test Equation
Dependent Variable: D(LNNOPOP)
Method: Least Squares
Date: 05/25/13 Time: 09:31
Sample(adjusted): 1981 2010
Included observations: 30 after adjusting endpoints
Variable
Coefficien Std. Error
t
t-Statistic
LNNOPOP(-1)
-0.463734 0.179975
-2.576661 0.0155
78
Prob.
C
0.879447 0.373033
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
0.191667
0.162798
1.064735
31.74252
-43.41505
1.844202
2.357558
Mean dependent var
S.D. dependent var
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)
0.0256
0.059094
1.163661
3.027670
3.121083
6.639181
0.015539
1st dif
Null Hypothesis: D(LNNOPOP) has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic based on SIC, MAXLAG=8)
Augmented Dickey-Fuller test statistic
Test critical values: 1% level
5% level
10% level
t-Statistic
Prob.*
-6.274775
-3.679322
-2.967767
-2.622989
0.0000
*MacKinnon (1996) one-sided p-values.
Augmented Dickey-Fuller Test Equation
Dependent Variable: D(LNNOPOP,2)
Method: Least Squares
Date: 05/25/13 Time: 09:33
Sample(adjusted): 1982 2010
Included observations: 29 after adjusting endpoints
Variable
Coefficien Std. Error
t
D(LNNOPOP(-1)) -1.228578 0.195796
79
t-Statistic
Prob.
-6.274775 0.0000
C
0.067833 0.218298
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
0.593207
0.578140
1.175569
37.31299
-44.80388
1.896494
0.310734
Mean dependent var
S.D. dependent var
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)
0.7584
0.069982
1.809940
3.227854
3.322150
39.37280
0.000001
Levels of lnagpro
Null Hypothesis: LNAGPRO has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic based on SIC, MAXLAG=8)
Augmented Dickey-Fuller test statistic
Test critical values: 1% level
5% level
10% level
t-Statistic
Prob.*
-5.440821
-3.670170
-2.963972
-2.621007
0.0001
*MacKinnon (1996) one-sided p-values.
Augmented Dickey-Fuller Test Equation
Dependent Variable: D(LNAGPRO)
Method: Least Squares
Date: 05/25/13 Time: 09:34
Sample(adjusted): 1981 2010
Included observations: 30 after adjusting endpoints
Variable
Coefficien Std. Error
t
t-Statistic
LNAGPRO(-1)
-0.817293 0.150215
-5.440821 0.0000
80
Prob.
C
1.438520 0.335224
R-squared
0.513910
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
0.496550
1.033535
29.90945
-42.52281
1.004792
4.291222
0.0002
Mean dependent var 0.068976
S.D. dependent var 1.456622
Akaike info criterion 2.968187
Schwarz criterion
3.061601
F-statistic
29.60253
Prob(F-statistic)
0.000008
1st dif
Null Hypothesis: D(LNAGPRO) has a unit root
Exogenous: Constant
Lag Length: 0 (Automatic based on SIC, MAXLAG=8)
Augmented Dickey-Fuller test statistic
Test critical values: 1% level
5% level
10% level
t-Statistic
Prob.*
-7.429124
-3.679322
-2.967767
-2.622989
0.0000
*MacKinnon (1996) one-sided p-values.
Augmented Dickey-Fuller Test Equation
Dependent Variable: D(LNAGPRO,2)
Method: Least Squares
Date: 05/25/13 Time: 09:35
Sample(adjusted): 1982 2010
Included observations: 29 after adjusting endpoints
Variable
Coefficien Std. Error
t
D(LNAGPRO(-1)) -0.967733 0.130262
81
t-Statistic
Prob.
-7.429124 0.0000
C
0.129705 0.189689
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat
0.671500
0.659334
1.019730
28.07593
-40.67966
2.397699
0.683774
Mean dependent var
S.D. dependent var
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)
0.4999
0.212809
1.747111
2.943425
3.037721
55.19189
0.000000
Co integration test result
Date: 05/25/13 Time: 09:48
Sample(adjusted): 1982 2010
Included observations: 29 after adjusting endpoints
Trend assumption: Linear deterministic trend
Series: LNGRGDP LNFODSE LNNOPOP LNAGPRO
Lags interval (in first differences): 1 to 1
Unrestricted Cointegration Rank Test
Hypothesized
No. of CE(s) Eigenvalue
Trace
Statistic
5 Percent
Critical
Value
1 Percent
Critical
Value
None **
At most 1
At most 2
At most 3
55.70227
26.55713
11.02849
1.274721
47.21
29.68
15.41
3.76
54.46
35.65
20.04
6.65
0.633957
0.414606
0.285618
0.043004
*(**) denotes rejection of the hypothesis at the 5%(1%) level
Trace test indicates 1 cointegrating equation(s) at both 5% and 1% levels
82
Hypothesized
No. of CE(s) Eigenvalue
Max-Eigen
Statistic
5 Percent
Critical
Value
1 Percent
Critical
Value
None *
At most 1
At most 2
At most 3
29.14513
15.52864
9.753767
1.274721
27.07
20.97
14.07
3.76
32.24
25.52
18.63
6.65
0.633957
0.414606
0.285618
0.043004
*(**) denotes rejection of the hypothesis at the 5%(1%) level
Max-eigenvalue test indicates 1 cointegrating equation(s) at the 5% level
Max-eigenvalue test indicates no cointegration at the 1% level
Unrestricted Cointegrating Coefficients (normalized by b'*S11*b=I):
LNGRGDP
-0.166209
1.310377
0.571609
0.552729
LNFODSE
-0.663179
-0.135137
0.160234
-0.422341
LNNOPOP
-0.520598
0.203733
-0.789547
-0.938814
LNAGPRO
0.895722
-0.406652
0.558882
-1.034966
Unrestricted Adjustment Coefficients (alpha):
D(LNGRGD 0.423081
P)
D(LNFODS 1.277566
-0.613179
-0.196882
0.093307
0.864232
-0.619808
0.073974
83
E)
D(LNNOPO -0.058166
P)
D(LNAGPR -0.482901
O)
-0.315746
0.303157
0.172937
-0.171589
-0.274522
0.068414
1
Cointegrating Log
Equation(s):
likelihood
-172.7320
Normalized cointegrating coefficients (std.err. in parentheses)
LNGRGDP LNFODSE LNNOPOP LNAGPRO
1.000000
3.990033
3.132187
-5.389132
(0.76487)
(1.22720)
(1.34270)
Adjustment coefficients (std.err. in parentheses)
D(LNGRGD -0.070320
P)
(0.04024)
D(LNFODS -0.212343
E)
(0.07116)
D(LNNOPO 0.009668
P)
(0.03890)
D(LNAGPR 0.080262
O)
(0.02636)
84
2
Cointegrating Log
Equation(s):
likelihood
-164.9677
Normalized cointegrating coefficients (std.err. in parentheses)
LNGRGDP LNFODSE LNNOPOP LNAGPRO
1.000000
0.000000
0.230476
-0.438294
(0.20489)
(0.26089)
0.000000
1.000000
0.727240
-1.240801
(0.26172)
(0.33326)
Adjustment coefficients (std.err. in parentheses)
D(LNGRGD -0.873815
-0.197716
P)
(0.27159)
(0.13916)
D(LNFODS 0.920127
-0.964045
E)
(0.51300)
(0.26286)
D(LNNOPO -0.404078
0.081243
P)
(0.29663)
(0.15199)
D(LNAGPR -0.144583
0.343438
O)
(0.20406)
(0.10456)
3
Cointegrating Log
Equation(s):
likelihood
-160.0908
Normalized cointegrating coefficients (std.err. in parentheses)
LNGRGDP LNFODSE LNNOPOP LNAGPRO
85
1.000000
0.000000
0.000000
0.000000
1.000000
0.000000
0.000000
0.000000
1.000000
-0.214388
(0.24913)
-0.534292
(0.45258)
-0.971494
(0.46705)
Adjustment coefficients (std.err. in parentheses)
D(LNGRGD -0.986354
-0.229263
-0.189732
P)
(0.28997)
(0.14013)
(0.19491)
D(LNFODS 0.565839
-1.063359
0.000343
E)
(0.52712)
(0.25473)
(0.35431)
D(LNNOPO -0.230791
0.129819
-0.273404
P)
(0.31015)
(0.14988)
(0.20847)
D(LNAGPR -0.301502
0.299450
0.433186
O)
(0.20652)
(0.09980)
(0.13881)
86
AN EVALUATION OF THE VIABLE APPROACHES TO
RURAL/COMMUNITY DEVELOPMENT
Ugbonna Emma N & Okoro Chijioke N
ABSTRACT
This paper evaluates rural/community development approaches
in Nigeria. It reviewed the role of local government,
conventional governments; and cooperative societies in
contributing to rural/community economic development. It was
observed that the different levels of government intervention
programmes are excellent schemes. But, experiences have also
shown that for government to effectively implement their
development policies in the rural communities, a rural
institutional vehicle becomes a sine qua non. This rural
institutional vehicle is no other, than an association of people
registered with the government known as Cooperative Societies.
These cooperatives will of necessity pass through the local
government which has the capacity to understand and conduct
their local affairs optimally as well as identify their needs and
demands than the other tiers of government due to their
nearness or proximity to the rural dwellers. Co-operatives as a
developmental course is a better option to adopt in sustaining
rural development, taking into cognizance its multi-faceted
nature and extension capacity.
Keywords: Rural/Community, Development, Government,
Cooperative Society
87
INTRODUCTION
Community development is the process of restructuring the
political economy in order to satisfy the material, social and
economic needs; as well as the aspirations of the people, and to
promote individual and collective incentives to participate in the
process of development (UN, 1971). In other words, in
community development the people participate in making the
decisions that will affect their lives. Community development
programmes can either be initiated by the people or the
government or both of them coming together to pull their
resources together for the good of the community. Thus the
people and the government can be classified as partners in
progress.
Local government has been acknowledged and accepted as the
third tier government in Nigerian Federal structure. It is used to
designate the effect made by the ruling elite to bring the
government closer to the people. This broad motive of local
government is to ensure grassroots participation in government
and thereby encourage the growth of rural areas (Chukwuemeka,
2002). The role of local government according to Onah (1995)
is a border place with a superior capacity to understand and
conduct the local affairs of the grassroots. The rationale of this
assertion is that local government is the nearest government to
the rural dwellers and it has the capacity to identify their needs
and demands than the other two tiers of government- Federal
and State. Also local government has abundant human resources
and when fully mobilized will become valuable instruments for
rural development. That the local government has big role to
play in the rural development programme is an obvious fact.
88
The questions are: what are the roles? What approaches should
local government adopt and the position of cooperatives to these
effects.
CONCEPT OF DEVELOPMENT
Development is not only an economic phenomenon. It embraces
more than the financial and material sides of people’s lives. It is
a multi-dimensional process involving the total re-organisation
and re-orientation of the entire political, social and economic
system. It is a systematic concept involving different human
institutions and structures and affecting people in diverse ways
(Ewuim 2010).In addition to improvement in incomes and
output, development typically involves radical changes in
institutional, social, economic and administrative structures as
well as in popular attitudes, customs and beliefs of the people
(Ewuim 2010).
Seers (1972), defines development as a process involving the
fulfilment of the necessary conditions for the realisation of
human personality. Some of the necessary conditions include
education and skill (human capital development/capital
building), empowerment, welfare programmes and accessible
health care system. Katz (1960) citied in Ewuim (2010)
considers development as freedom from personal assaults and
indignity. He contends that development should ensure: Security
against external aggression and freedom and opportunity for
self-fulfilment. According to United Nations document,
development implies paying attention to capital building. This
entails giving attention to what is needed to make the people
have the ability, skill and energy to be able to effect change in
their environment. In practical terms it means improving
89
education to unlock human potentials, improving infrastructural
development to aid economic development and employment of
the people at political, economic and social levels. Development
envisages the effective utilisation of man, money, machine and
materials in such a way that the entire populace will have equal
opportunity to meet their basic needs of food, shelter, clothing,
education, health, potable water and security, including right to
work now and in the future.
RURAL/COMMUNITY DEVELOPMENT
Okolie cited in (Ewuim 2010) sees community development as a
movement to promote better living for the whole community,
with the active participation and if possible on the initiative of
the community. But if this initiative is not forthcoming, then the
use of technique for arousing and stimulating it for an active and
enthusiastic response becomes imperative. It includes the whole
range of development activities in the districts, whether they are
undertaken by government or unofficial bodies. Poston (1966)
as cited in Ewuim (2010), views community development as a
process of education by which people of all ages and all
interests in the community learn to share their thought, their
ideas, their participation, their joys and their sorrows and in
large measure to mould and share the communal destiny by
themselves. It is a process of self discovery by which the people
of a community learn to identify and solve their community
problems. United Nations (1971), see community development
as the utilization under one single programme of approach and
technique, which relies upon local communities as units and
which attempts to combine outside assistance with organised
local self determination and effort, and which correspondingly
seeks to stimulate local initiative and leadership as the primary
90
instrument of change. Okolie (2005), defined community
development as the process by which the efforts of the people
themselves are united with those of government authorities to
improve the economic, social and cultural conditions of
communities to integrate these communities into the life of the
nation and to enable them contribute fully to national progress.
APPROACHES TO COMMUNITY DEVELOPMENT
Approaches to community development entail those methods
and strategies that can be adopted by the government and other
agencies in ensuring the development of the rural communities.
LOCAL GOVERNMENT APPROACH TO COMMUNITY
DEVELOPMENT
Ugwu (2000) defined local government as “the third tier level of
government created for the purpose of efficient and effective
administration of the localities”. Odenigwe (1984), considers
local government as “that part of government of a nation or state
which deals mainly with matters of concern to the people of a
particular place”. The 1976 local government reform takes local
government as the government at the local level exercised
through representative councils established by law to exercise
specific powers within defined areas. In the opinion of the
United Nations Division of Public Administration (1982), local
government is “a political subdivision of a nation (or in federal
system, a third tier) which is constituted by law and has
substantial control for local affairs including the powers to
impose or to exact labour for prescribed purposes”. The
governing body of such an entity is elected or otherwise
selected. For the purpose of this work, we define local
government as a unit of government established by act of law to
91
administer the functions of government and see to the welfare
and interest of the local dwellers under the local government
system.
THE ROLE OF LOCAL GOVERNMENT IN
COMMUNITY DEVELOPMENT
The 1976 local government reform states three major objectives
which directly form the bulk of the roles it must play in
community development.
1. To make appropriate services and development activities
responsible to local wishes and initiatives.
2. To mobilise human and material resources through people’s
participation in development process.
3. To encourage local initiative and leadership potential.
It is incumbent on local government to infuse and employ
necessary local traditional institutional and organizational
structures like the village heads, district cooperative and town
associations into the institutional and organizational
arrangements of the higher tiers of government for the
achievement of community development objective. This will
help in the effective execution of the various programmes
initiated and articulated by the bodies in charge in the office of
the president at the national level and governor’s at the state
level. That is, the community development committee at the
local government level should liaise with the higher levels
(federal and state) and that of the lower levels (Ewium 2010).
Local government is duty bound to mobilize the community for
their effective political participation. Okoli (1995) described this
role as mobilizing rural power centres for implementation of
community development programmes. In this way, the local
92
government provides the ‘fit’ between the programme and
institution and organizations for effective execution, and ‘fit’
between the programme and intending beneficiaries. For
effective participation by the local populace, there must be a ‘fit’
between the three variables namely; the beneficiaries and the
programmes; the beneficiaries and the assisting organisation;
and lastly, the programme and the organisation or institution for
their implementation. Mobilization which is considered a sine
qua non here is defined by Oyedipo (1987) as “the awakening of
the consciousness or awareness of the people about their
physical, cultural, social, economic and political environment
and forces that promote and or inhibit their progress and well
being”.
Chukwuemeka (2002) affirms that local government role lies in
investing in human capital through formal and informal
education, skill acquisition and conscientization, social
mobilization is necessary for rural development. He also
observed that local government should take measures that will
ensure the preservation of environmental resources so that bioresources and other socio endowments are preserved to
encourage enduring condition for the extraction of natural raw
materials for development related activities. Local government
should play a leading role in developing local technologies
appropriate for rural development since the hallmark of
community development is self-reliance. Therefore, local
technologies have to be harnessed and applied to the
development needs of the rural communities.
CONVENTIONAL APPROACHES TO COMMUNITY
DEVELOPMENT
93
Aweto (1996), Carl and John (1990) and Oakley and Garforth
(1985) suggested the following principles to implement rural
development programmes:
(i) Access: Try to ensure that the programme and its benefit can
reach those in needs and beware of consequences if some
farmers have access to the programme which others do not.
(ii) Independence: Ensure a programme that helps and
supports a farmer but does not make him or his livelihood
dependent upon the programme.
(iii) Sustainability: Ensure that programmes plan and solutions
which are relevant to the local economies, social and
administrative situation. Short term solutions may yield
quick results but long term programmes that are suitable to
the local government have greater success.
(iv) Going forward: Technological aspects of rural development
programmes should help the farmers to take the next step in
his development and not demand that he takes a huge
technological leap. It is better to secure a modest advance
which can be sustained than suggest a substantial advance
which is beyond the ability of most farmers.
(v) Participation: Always try to consult the best people, seek
their ideas and involve them as much as possible in the
programmes.
(vi) Effectiveness: A programme should be based on the
effective use of local resources and not necessarily on their
most efficient use. While efficiency is important, their
requirements are often unrealistic.
Akpovire (1994), in the same vein presented seven methods at
the disposal of Nigeria government in developing the rural
communities. These strategies include:
94
a)
Matching grant: In this approach, government and the
people go into a working partnership to carry out development
ventures. In it, the communities may embark on self-help
project, while the government will provide technical, financial
and managerial assistance wherever the projects are being
carried out. In other words, through the matching grant
approach, government provides a percentage of the cost of the
project being carried out by the people to augment the funds at
the disposal of the communities. The communities or people are
expected to identify their needs, arrange them in order of
priority and work out the cost of implementing the projects.
b)
Directive approach: Through this approach government
or its agency uses the top-down strategy of development to carry
out development projects in the communities. In this approach,
government or its agency acts as a sole judge for the people on
what shall be done for them or what shall not be done.
Government supplies the staff, equipment, materials and
programmes it considers necessary and appropriate to meet the
needs of the people.
c)
Non-Directory Approach: The approach is often known
as, ‘the inner approach’. In it, the people themselves are
allowed by the government to decide their areas of felt need.
The people plan, organise and execute their projects without
external or government interferences. Therefore, in this method
of community development, the direction for progress is
internally determined by the people themselves.
d)
Integrative Approach: This approach views community
development as a comprehensive programme, which should
include the provisions of the necessary economic, social
institutional and political conditions as well as coordinating and
managing human and material resources for development. In
95
this approach, development is usually planned and executed
through a central body or agency. In other words, the goals of
development is centrally planned and executed.
e)
Team and Multiple Approaches: This approach deals
with technical application of the ideas gained in the integrated
approach, since it is based on the realisation that the goals of
development are both material and non-material, and as such
requires the participation of more than just a group of experts.
Therefore, the team approach can be described as that in which a
team providing a variety of services are brought together to deal
with some of the problems which emerged, as alternatives are
made to the community socio-economic cum political system.
f)
Electric Approach: This approach was developed by
the National Youth Service Corp (NYSC). Its strength lies on its
continual adoption to changing circumstances. This approach is
a form of contingency approach to the development because it
emphasizes continuous change and adaptation to development
challenges depending on prevailing circumstances and situation.
This approach essentially stresses the arguable fact that there is
no best approach to community development. Each approach
should be used depending on the prevailing situation at any
given point in time.
g)
Comprehensive (holistic) Approach: In this approach,
community development is designed in such a way as to deal
with the various segments/sectors of the community as a whole
for the overall well being of the people. This approach is based
on the premise that community problems are interrelated or to a
varying degree interdependent. Hence, the solutions of the other,
and the solution will proceed more effectively as a cooperation,
and co-ordinated activity.
96
In addition to the above six approaches to community
development, Idode (1989) identified three major approaches to
community development, which includes the following:
1)
The Extension Approach: in this approach, government
through its development agencies and ministries directly teach
the community people new and improved methods and
strategies of doing things such as farming, health care delivery,
etc. the importance of using this method of community
development is to make the people part and parcel of
government development projects.
2)
The Project Approach: through this approach
government enhances and improves the socio-economic well
being of the people by establishing commercial and economic
ventures such as cottage industries, artisan workshop and
agricultural produce processing centres. These economic
ventures are established by the government and they provide
employment for the rural person, which in turn enhances their
economy through improved income.
3)
The Service Approach: through this mechanism, the
people initiate self-help development projects in their area
without the endless wait for government intervention. The
people have often initiated some self-help projects like building
of boreholes, maternity homes and dispensary centres and
provision of transformers for power supply.
CO-OPERATIVE APPROACH TO RURAL
DEVELOPMENT
Berko (1989) defines co-operatives as an association of persons,
with variable membership and variable capital who have pooled
themselves and their resources together on mutual or self help
basis to form a business enterprise which seeks to solve the
97
socio-economic problem or problems of these members by
directly providing goods and services to them in their capacity
as either the owner /customer or owner/employee of the cooperative enterprise.
Conference of International Labour Organization (1966) defines
co-operative as an association of persons who have voluntarily
joined to achieve a common end, through the formation of a
democratically controlled organization, making equitable
contributions to the capital required and accepting a fair share of
the risks and benefits of the undertaking in which members
actively participate. International Co-operative Alliance I.C.A.
(1995) defines co-operative as an autonomous association of
persons united voluntarily to meet their common economic,
social and cultural needs and aspirations through a jointlyowned and democratic controlled enterprise.
Co-operative is an offshoot of industrial revolution which took
place in England (1750-1850). This industrial revolution was
brought about by the invention of the steam engine, various
spinning machines, the power loom and a whole series of other
mechanical devices. These machines which were very expensive
and hence could be bought by only the big capitalists that
altered the whole previous mode of production and ousted the
former independent workers, because machines turned out
cheaper and better commodities than could the workers with
their inefficient manual spinning-wheels and handlooms
(Uchendu 1998). The former independent workers had to
migrate to the new industrial centre in search of employment.
They became dependent on employers for meagre wages, shelter
and consumer items which turned to paying them in kind.
Women and child labour which was far cheaper than adult
labour was introduced. Factories were soul destroying prison
98
house, ugly looking, poorly ventilated and lit and the
environment very unhygienic, the workers were driven to work
hard for longer hours because there was stiff competition
between the factory owners. Workers were poorly paid and any
expenses which did not directly increase the yield or output was
avoided. Workers were ill-treated, the environment was
polluted, exploitation was very high, cut throat competition and
unfair laws were predominant. Special privileges were given to
a few people and immorality was the order of the day. Towns
were over-crowded, dirty, unplanned, devoid of amenities, ugly,
depressive and characterized by smoke and slums (Uchendu
1998).
The above scenario is an epitome of rural/community dwellers
in Nigeria in which government of the past and present in its
frantic effort in integrating the rural dwellers into the
mainstream of national economic developmental plan, have
initiated various programmes such as Agricultural Development
Programmes (ADP), Green Revolution, Operation feed the
Nation (OFN),National Poverty Eradication
Programme
(NAPEP),Better Life for Rural Women, Niger Basin Water
Commission and the host of them, but all efforts seem abortive
as they failed to integrate, transform and improve lives of rural
dwellers.
THE ROLE OF CO-OPERATIVES TO COMMUNITY
DEVELOPMENT
Given the integrated nature of development, the roles of cooperatives cannot be over-emphasized. Co-operatives as a
weapon of last resort has proven and contributed significantly
towards the integration of rural dwellers into the mainstream of
national development. Aweto (1996), Ijere (1992) and Olaide,
99
Olajumwor S. et al (1980) identified the following advantages of
providing agricultural credit through the co-operatives:
(a)
Agricultural co-operatives, being formal and peopleoriented
organizations are in the vantage position through
which they can reach the farmers.
(b)
Agricultural co-operatives obtain loans from commercial
banks for on-lending to farmer members. This reduces the
administrative cost of processing multiplicity of small loans to
individual farmers.
(c)
Agricultural co-operative society can take up insurance
policy with the Nigerian Insurance Company to reduce risk
envisaged by commercial banks and assures them of safety of
farmer’s business and investment. Insurance policy is an
acceptable collateral security to the bank.
(d)
The society is also in a position to obtain complete and
submit member application forms collectively thus making
access to credit relatively easy and convenient for illiterate
farmers.
(e)
Agricultural co-operative society’s credit has
educational value. Credit alone is of little use to the farmer if it
is not accompanied by complementary services which will help
the farmer use loan productively and avoid unnecessary debts.
Thus, the co-operative societies help to provide required inputs
of production and help disseminate information on improved
agricultural practices amongst members.
(f)
Loan management skill training can also be given to the
members at a relatively low cost through the co-operative
society.
(g)
The administration of loan through co-operatives is
cheaper and repayment is easier.
100
In considering the National Agricultural Land Development
Authority (NALDA) and The Fourth National Development
Plan (1981-1985), Aweto (1996), holds that specific roles of cooperatives in Agricultural Development Programmes (ADPs)
includes the following:
(i)
Co-operatives mobilize farmers into collective units in
readiness
for
the
agricultural
development
programmes’/projects’ activities geared towards enhancing
farmer’s productivity, overall production and increased income.
(ii)
Co-operatives build the capacity of participants to have
effective working relationship in association that are free and
democratic for the achievement of the community and
individual desired security and development.
(iii)
Co-operatives are used as conduit between rural small
scale
farmers
and
the
agricultural
development
programmes/projects.
(iv)
Co-operatives facilitate the transfer of useful agricultural
information and modern technology to farmers. Using cooperatives is less costly and most convenient compared with
individual farmers.
(v)
Distribution of agricultural inputs to small scale farmers
is most effective through the use of co-operatives.
(vi)
Co-operatives participation on small scale lending
schemes ensures easy and quick access of peasants to loans,
effective loan management and recovery.
(vii) The group action of co-operative society ensures rapid
adoption of innovation by farmers.
(viii) Co-operatives assist in organizing small scale farmers to
cope with expected increase in agricultural output consequent
upon the projects’ effect. They facilitate storage, processing and
marketing of products.
101
(ix)
Co-operatives encourage thrift among members, and
from capital mobilized, loans are disbursed to members.
(x)
Co-operatives facilitate training of farmers participating
in the programmes/projects and develop management capacities.
(xi)
Co-operatives ensure sustainability of the activities of
the agricultural development projects and facilitate attainments
of the development objectives.
CONCLUSION AND RECOMMENDATIONS
It is a known fact that government is a bad producer. This is to
say that, government have good policies but the problem is in its
implementation. The recent review of privatization policy is the
aftermath of the past scenario. Therefore, the only way to
privatize rural developmental policies is through the adoption of
co-operative societies. It therefore, suffices to recommend the
cooperative approach since cooperatives provide a better forum
through which development agencies can channel inputs
required for implementation of the integrated rural development
programme to the rural dwellers. Family planning materials,
storage and processing equipment etc are distributed through
cooperatives. In situations where some of the rural dwellers are
indifferent to the programme due to lack of information, cooperatives may combine the role of instruction and that of
stimulating members of the community to participate in the
programmes. Agricultural co-operatives as rural institutions are
part of the overall plan to raise the level of survival and
economic consciousness of the rural dwellers. Thus, cooperatives are an integral part of the integrated rural
development scheme. Co-operatives in its multi-faceted nature
are best suited to execute rural implementation and
developmental programmes in Nigeria.
102
REFERENCES
Berko, S.Y. (1989). Fundamentals of Co-operation.
Unpublished Mimeograph
ASUTECH Enugu.
Aweto, R.A. (1996) Agricultural Co-operatives.
Carl, K. Eicher and John, M. Staaz (1990) Agricultural
Development in the Third World. Second Edition.
Chukwuemeka, E. (2002) The New Federal Government
Guideline on the Application of Civil Servants Reforms in
the Local Government System, Lagos: Akamu Publishers
Ltd.
Ewuim, Ngozi C. (2010) Theory and Practice of Community
and Rural Development. Nimo: Rex Charles and Patrick
Ltd.
Finer, J. [1989]. State and their Local Government in Africa.
London: Cambridge
Press.
Idode, J.B. (1989). Rural Development and Bureaucracy in
Nigeria. Ikeja: Longman Nigeria Limited.
Ijere, M.O. (1992). Prospects of Nigerian Co-operatives. Enugu:
Acena Publishers.
National Agricultural Land Development Authority (NALDA)
Information Leaflet.
Nwobi, T. U. (2007) Rural Development: Theories and
Strategies. Nimo: Rex
Charles and Patrick Limited.
Oakley, P. and Garforth, C. (1985) Guide to Extension Training.
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Odenigwe
(1984)
Comparative
Local
Harmondsworth: Penguin
Books Ltd
Government,
Okolie, F.C. (1995) Theory and Practice of Local Government
in Nigeria. Ibadan:
Oxford University Press.
Okoli, M.U. (2005) Local Government Administrative System;
An Introductory and
Comparative Approach. Onitsha:
Abbot Publishers Ltd.
Olaide, Olajumwor S. etal (1980) Problems and Prospects in
Integrated Rural Development.
Onah, R.C. (1995) Political Authority and the Nigeria Civil
Service. Enugu: Fourth Dimension.
Oyedipo. (1987) The Financial Control and Accountability in
Local Government
Councils. Unpublished Seminar
Paper.
Seers, D. (1972) “What Are We Trying To Measure”; Journal of
Development
Studies. Vol. 8 No. 3.
Ugwu, N. (2000) Local Government Administration in Nigeria.
Onitsha: Abbot Publishers Ltd.
The Fourth National Development Plan (1981-1985) Planning
Office, Federal Ministry of Budget and Planning. Nigeria
Uchendu S. O (1998) Fundamentals of Co-operative Business
Enterprise.
Rejoint Communication Ltd. 65 Adelabu
Street, Uwani-Enugu, Enugu State,
Nigeria.
104
United Nations Divisions of Public Administration (1982).
United Nations (1971), “Methods of Community Development”.
Community
Development Journal, Vol. 6 No. 3.
105
ANALYSIS OF GUERRILLA AND TRADITIONAL
MARKETING INTERFACE IN IMPROVING THE
PRODUCTIVITY OF ORGANIZATIONAL MARKETING
IN SMALL TO MEDUIM SIZE ENTERPRISES (SMEs) IN
OWERRI
BY
Anukam, Amaobi Isaac
Imo State Polytechnic, Umuagwo
ABSTRACT
This research aims at exploring and analyzing the integration of
guerrilla and traditional marketing in small to medium scale
enterprises in Nigeria with a case study of Marketing of Hotel
Services in Owerri Imo State, Nigeria. For gathering data, two
questionnaires were used for the integration of guerrilla
marketing and the traditional marketing and productivity of
organizational marketing. The research hypotheses were tested
by correlation test, and all the hypotheses were verified. The
sequences of priorities in productivity of organizational
marketing were new methods of advertisement. There was a
significant relationship between the integration of guerrilla
marketing and the traditional marketing in the improvement of
productivity of organizational marketing in the enterprises
studied. Also, it was concluded that new communication
technologies item with mean of 1.93, innovation and problem
solving techniques with mean of 2.08, marketing budget item
with mean 2.89 and new methods of advertisement with mean of
3.12 were first to fourth priority, respectively. Findings show
that guerrilla marketing is complementary to traditional
marketing. Hence will recommend GM as a paradigm and for
106
hotel enterprises in Owerri, guerrilla marketing is the surviving
technique to approach the unstable hostile business environment
that they operate in.
1.0
INTRODUCTION
Marketing is essential for the organic growth of a company. Not
surprising, firms spend millions of naira on marketing. Given
that these consist of investments, marketing managers have the
responsibility to optimally allocate their resources and
demonstrate that these investments generate appropriate returns
for their firms. Levinson, (1983) made the term “guerrilla
marketing” known as a philosophy for small and start-up
companies to successfully market their business with a small
amount of money. He based the success of a marketing strategy
on the use of non-traditional marketing channels, customer
proximity, insistency and patience. following the technological
developments today and its complementary change in the
advertising market, guerrilla marketing has developed into a
marketing form that is mostly used for promotion and retention
of customers’ attention and interest. New forms such as
“ambush” and “viral” marketing have evolved (Druing &
Fahrenholz, 2008). Guerilla marketing distinguishes itself from
other promotion tools by its surprise effect and it has become a
very popular marketing strategy in current times. CasadesusMasanell, et al, (2007), in their researches from strategy to
business models and to tactics state that the business model
design involves assessments with respect to determining:
(i) The identity of the market segments to be targeted;
(ii) The benefit the enterprise will deliver to the customer;
(iii) The technologies and features that are to be embedded in
the product and service;
107
(iv) How the revenue and cost structure of a business is to be
designed (and if necessary, redesigned) to meet customer
needs;
(v) The way in which technologies are to be assembled and
offered to the customers;
(vi) The mechanisms and manner by which the value is to be
captured, and how the competitive advantage can be
sustained.
These issues are all interrelated. They lie at the core of the
fundamental questions asked by business strategist, which is
“how does one build a sustainable competitive advantage?”
Integration of guerrilla marketing and traditional marketing is
approached not as a set of tools (a technology) for facilitating
transactions or responding to change, but as a vehicle for
fundamentally redefining products and markets in ways that
produce sustainable competitive advantage for enterprises,
(levinson, 2008). About new methods of advertisement, Godes
and Mayzlin (2007) report several other examples where
companies promoted their products and services through wordof-mouth (WOM) marketing. Kumar, et al (2007) used a survey
method to assess the value of word-of-mouth and referral.
Zubcsek and Sarvary (2009), hold that direct marketing (DM)
which involves sending promotional messages to individual
customers is increasingly used by marketers as a result of the
explosive growth of customers’ database. Most current methods
used to calculate optimal budgets for such DM campaigns
consider customers in isolation and ignore the word-of-mouth
communication (WOM). The current traditional marketing
methods
however,
generally
ignore
word-of-mouth
communication between customers (Vilanueva, et al, 2008).
108
Although marketers have always known that WOM has a very
powerful influence on customer decisions (Bass, 1969; Herr, et
al, 1991; Van den Bulte & Joshi, 2007), until recently, they did
not have much information about the individual communication
patterns of consumers. In this investigation, the role of
integrating guerrilla and traditional marketing in improving the
productivity of organizational marketing in enterprises in
Nigeria is discussed with a case study of hotel business in
Owerri considering the number of hotels now in the area.
Theoretical Framework
The term: “Guerrilla” first appeared during the war of
independence in Spain and Portugal at the beginning of the 19th
century. It is a Spanish expression which can be translated as
“battle”. Guerrilla stands for a combat operation that was used
by smaller groups that stood against a massive military force,
(Levinson, 1998). The term and the connected operations
became famous through Ernesto Che Guevara Lynch la Serna
(1928-1967), best known as Che Guevara, who used and defined
this military tactics. He belongs to a small militia group which
wanted to put their political concept through. They were clearly
in the weaker position and their only chance to achieve a
successful revolution in Cuba was to fight the national military.
Since Che Guevara and his followers did not possess as many
resources, such as weapons, money, or fighters as their
opponents, they based their operations on the surprise effect and
on acts of sabotage. Due to their size, they had the advantage of
being more flexible, having a quicker co-ordination and
knowledge of the territory better. The use of unconventional
weapons and activities helped them to destabilize their rivals
and led them to their final success.
109
During the 1960’s, the United States of America faced major
difficulties in the Vietnam War. Even though Vietnam was
theoretically much weaker, the USA Army was not able to bring
the Vietnamese down. Especially the Vietcong force was
unbeatable, because they used the Guerrilla tactics that
destabilized the American forces constantly. The Vietcong’s
operations were similar to Che Guevara’s activities. They also
used the surprise effect, were much more flexible than their
enemies fought on Vietnamese territory, and used unusual
means. This was the first time Americans got to know the
principles of Guerrilla, (Levinson, 2003, Levinson &
Lauterslager, 2005). Guerrilla marketing is characterized by
surprise effect, diffusion effect and low-cost effect. It is flexible
in application and advocates for effective resources leverage.
This phenomenon is what this study sets out to provide
empirical evidence for.
The name Guerrilla originally describes a group that uses a
violent approach to achieve the implementation of their belief
and ideology. Then opponents are often a tremendous force
consisting of more people and resources such as weapons or
money. The Guerrilla fighter’s only advantage is the fact that
they only know where and when they will strike.
The original approach of Guerrilla marketing is as an alternative
marketing strategy that suits small and medium sizes enterprises
to act like guerrilla fighters have done in the past: hit valuable
targets of large enemies by taking them by surprise. The
unexpected and unusual guerrilla marketing campaigns help
smaller companies to successfully reach their target group, even
110
though their bigger market competitors had a large marketing
budget, more experience, and a better spread to advance a
market by using traditional strategies (During & Fahrenholz,
2008). Fahrenholz (2008) posits that many small and mediumsized enterprises started with Guerrilla marketing and
established their business creatively. Through constant growth
rates they have the means to also afford traditional marketing
tools to gain more and more market share, and continue to attack
the market leaders.
Summary of the Guerrilla Marketing Principles
i. Find a Segment Small Enough to Defend: Try to pick a
segment small enough so that you can become the leader.
ABC Transport is a true guerrilla. They concentrate on a
small market segment and are its leader. Small is beautiful.
ii. Psychological warfare: A guerrilla can take advantage of its
smallness to make quick decisions. This can be a precious
asset when competing with the big companies.
iii. Flexibility and restlessness: Don’t hesitate to abandon a
position or a product if the battle turns against you. A
guerrilla doesn’t have the resources to waste on a lost cause.
He should be quick to give up and move on in the small
company, one person’s hunch can be enough to launch a
new product.
iv. It has to be excitement and humorous. Make your customers
remember you with smiling faces, that they will always
desire to buy from you.
Guerilla Marketing Vs. Traditional Marketing
In order to understand the principles of guerrilla marketing
performance, the significant differences between traditional
111
marketing and guerilla marketing have to be identified.
Referring to Levinson (2006), conventional advertising require a
certain capital addressed for promotion plan while time, energy,
imagination and knowledge assets are a primary investment in
Guerrilla approach. Big businesses with correspondingly
substantial budgets are potential users of traditional marketing
which measure its success only by sales and number of
responses or store traffic. Gallagher, (2004) explains an explicit
difference as: “what matters in guerrilla marketing is, rather than
what the firm does to be successful; it is what it does to
differentiate itself from its rivals and its success in reaching
broader potential customers”. According to Levinson (2006),
therein is the summary of the main differences between these
two ways of marketing in the Table 1 below:
1: Differences between Traditional and Guerrilla Marketing
TRADITIONAL MARKETING
Primary investment is money
Model for big business
Success measured by sales
What can I take from the
customer?
Mass media usage (direct mail,
radio, television, newspapers)
Advertising works
How much money do you have
at the end?
GUERRILLA MARKETING
Primary investment is time, effort and
creativity
Focus on small business
Success measured by profits
What can I give to the customer?
Marketing weapons are numerous and
most are free
Types of non-traditional marketing
succeed
How many relationships do you have at
the end?
(Source: Levinson, 2006)
Around the globe marketing experts, researchers, and academics
are eagerly trying to find an all embracing description of
112
Guerrilla Marketing (GM), since no official definition of the
term exist so far. Many explanations have thus been created and
even though they vary in their wordings, they have the
following characteristics of Guerrilla Marketing in common:
creative, unconventional, surprising and efficient, (Levinson &
McLaughlin, 2003, Levinson, 1998).
Guerrilla marketing is a marketing strategy in today’s
marketplace, predominantly used for the marketing mix “p”
promotion. It is a form of marketing which involves the
consumer in the advertising experience. Guerrilla marketing
campaigns display creative ideas dynamically with
unconventional methods at places where advertising would be
least expected. The aim is to irritate, fascinate, and animate the
customer/consumer. The surprise–effect belongs to the root of
the philosophy (During & Fahnenholz, 2008).
The use of the unconventional marketing approaches was
something that is previously associated with small enterprises
due to their limited budget; they had to find new ways.
Nowadays when the competition is harsh, the trend goes
towards large advertisers who also adopted the approach, since
the positive aspects are more visible and the need for finding
new ways of reaching the customer has increased (Belch &
Belch, 2004).
Guerrilla marketing, as the name implies, gives an indication of
controversy and warfare, since the name is associated with
military tactics, but it should not be associated with a bloody
battleground. It is more of a strategy that one uses in order to
conquer a market through a well planned approach in a smaller
scale. Enterprises use warfare to fight on the battleground of
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today marketplace, which is the consumers’ mind-where words
and pictures are the weapons used and where the ownermanager of every enterprise acts as a general, (Garsombke,
1987).
Levinson (1984), claims that all kinds of innovative and eyecatching advertisements belong to the concept of guerrilla
marketing. Accordingly, guerrilla marketing is described as
being fancy, atypical, unusual, original, provoking, flexible,
dynamic, innovative, creative, and humorous.
Ries and Trout (1986), for example, recommend to marketers to
save costs by identifying market niches, creating a flat
organizational structure and acting highly flexible. Despite
different vistas on the phenomenon, all the definition of guerrilla
marketing agree that the concept provides a solution on how to
succeed in the competition for consumers’ attention in
advertising campaigns.
Egan, (2007), McAllister, and Turow, (2002) posit that Guerrilla
Marketing is an umbrella terms that covers the various
innovative approaches that marketers adopt in the marketplace
to gain market-share and profit, namely: renegade marketing,
covert marketing, diffusion marketing, under-the-radar
marketing or vanguard marketing. Guerrilla marketing is up to
date a marketing strategy characterized by surprise-effect,
diffusion-effect and low cost, using the instruments of
flexibility, buzz marketing, viral marketing, sensation
marketing, ambush marketing, ambient marketing and other
related tools to gain advantage over competitors who are
stronger in a tough and harsh economy. It is a dynamic, flexible,
restless and provocative approach to marketing and in some
cases unconventional and controversial without offence to the
law and customers.
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2.2
“Guerrilla Enters Marketing”
Conventional marketing practices and textbooks do not
accommodate most of the characteristics of Guerrilla marketing.
However, in tough and harsh economy, marketers began to
improvise and search for other means of survival that does not
infringe on others. It is under this condition of toughness that
American marketing experts started looking for new approaches
to gain the attention of customers. The consumers’ behavior had
changed and businesses had to come up with offers that fit their
consumers’ needs and not only their own. Consequently
marketing experts had to find realizable concepts for businesses
with limited resources. The only promising way was to use an
untraditional marketing approach that included attention and
attack strategies in order to gain as much attention as possible
and to weaken competitors considerably. Guerrilla philosophy
was found to accommodate these desires, (Schulte, 2007).
2.3
The Philosophy of Guerrilla Marketing
Levinson (1983), defined the root of the idea in his book
Guerrilla Marketing, his publication provided not only an
explanation of the essential marketing idea, but also a
philosophy for small business owners who wanted to follow the
Guerrilla marketing idea. He introduced new ways of
advertising and presenting a business well with small budget,
and based the success of marketing strategy on the use of nontraditional marketing channels, customer proximity, insistence
and patience. A company should create as many points of
contact with customers and prospects as possible in order to stay
in their memory. Conrad Levinson is today the father of
“Guerrilla Marketing” as his book has been translated into more
than 40 languages.
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Like Levinson, Trout and Ries believed that Guerrilla marketing
is best suited for small and medium-size enterprises. Trout
pointed out that the market size also has to be manageable with
the limited and available resources. Therefore they suggested
specializing and investing in niche product and/or market niche.
Theirs is that small and medium enterprises should adopt niche
approach which will allow flexibility and change, surprise and
diffusion at low cost.
Kotler, (1990) suggests that Guerrilla marketing should be
adopted by market challengers that try to increase their own
profitability by gaining more market share from other
enterprises in the same industry. A competitive advantage over
the challenged firm is the foundation for a good strategy but also
involves high risks, especially when the potential gain is high.
Kotler, et al. (2005), argue that many smaller financially weaker
companies are then using an aggressive guerrilla attack. Such a
campaign can even be a tool to fight the current market leader.
Unlike Levinson (1998), Ries, Trout (1983), and Kotler (1990)
believe that the main purpose of guerrilla marketing is to
destabilize the opponent or best to destroy the competitors with
the help of attrition tactics.
From the views of these guerrilla marketing philosophers,
Guerrilla marketing is deeply understood and the principles
made clearer for the study. Guerrilla marketing is not a battle or
physical combat, but a psychological battle that is fought and
won in the minds of customers and consumers, partners and
competitors through the segmentation of the population to serve,
the targeting strategies adopted that result in the positioning of
the firm’s products and services in the mind of the customers
and consumers for patronage.
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Druing and Fahrenholz (2008) found in their research result that
financially strong companies use guerrilla marketing as a
complementary tool to present the brand in a multimodal way.
Smaller firms can make use of the cost-effective strategy to get
the spotlight on their brand. Good co-operation with, for
instance, the public relations department is essential to increase
the guerrilla marketing effect enormously. They concluded in
their research that guerrilla marketing would blend with the
customers by finding ways to surprise them and interest them by
putting the idea in the forefront, not the brand. The evolved
guerrilla marketing form is now used by companies of all sizes.
Global players such as BMW use it, and start-up companies do
so to create brand awareness, (Levinson, 2008). Many small and
medium sized companies started with guerrilla marketing and
established their businesses lucratively. Through constant
growth rates, they have the means to also afford traditional
marketing tools to gain more and more market share, which
enables them to compete with the market leaders.
Wensen, (2008) asserts that one can win the battle for the
consumers’ attention by being smarter and more creative than
his opponent, instead of spending more money for TV
commercials than his competitor does. His definition of guerrilla
marketing is a broad one and an unexpected brand program
through alternative media. Guerrilla marketing includes, for
example, viral marketing, ambush marketing, buzz marketing
and also events, but guerrilla marketing is far more than the
definition. It is a mentality too, because the mentality of
thinking is outside the box and thinking for solutions for
communications problems in a broader way, instead of thinking
in terms of just TV commercials. Traditional advertising on TV,
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radio, print and even traditional outdoor advertising is not what
is meant by guerrilla marketing. Guerrilla marketing is a way of
thinking, (Gallagher, 2004).
Hypotheses
i. There is a significant relationship between the
integration of guerrilla and traditional marketing and
the improvement of productivity of organizational
marketing in SMEs in Nigeria.
Price
Place
Product
Promotion
People
Small budget
New communication
technologies
+
Innovation and
problem solving
techniques
Perish-ability
Process
New methods of
advertisement
Politics
Interface of
guerrilla
marketing and
traditional
marketing
Figure1. Interface of Guerrilla Marketing and Traditional
Marketing
ii.
There is a significant relationship between new methods
of advertisement and the improvement of productivity of
organizational marketing in Nigeria enterprises
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iii.
iv.
v.
There is a significant relationship between using
innovation and problem solving techniques and
improvement of productivity of organizational marketing
in Nigerian enterprises
There is a significant relationship between using new
communication techniques and improvement of
effectiveness of organizational marketing in Nigerian
enterprises.
There is a significant relationship between decreasing of
marketing budget and improvement of effectiveness of
organizational marketing in Nigeria enterprises.
3.0 RESEARCH METHODOLOGY
This study applied the survey and descriptive research method;
it used the correlation method to determine the relation between
integration of guerrilla and traditional marketing and the
improvement of organizational productivity in Nigerian
enterprises. Consequently, two types of questionnaires were
designed and distributed. One questionnaire was used for
productivity of organizational marketing, while the other was
used for integration of guerrilla marketing and traditional
marketing. For the evaluation of organizational productivity 15
questions were stated, while for integration of guerilla
marketing and traditional marketing, 35 questions were stated.
Time scope of the data collection was from January to March
2013. For reliability of the research, the Cronbach’s alpha
coefficient was used and the results of the variables reliability
are consistent with literatures (Levinson, 1984, 2008,
Garsombke, 1987) that the integration of guerrilla and
traditional marketing in the marketplace has significant impact
on high productivity in marketing organizations both in terms of
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market share and profitability. Also, the study calculated the
Cronbach’s alpha coefficient for all the questions in this
research and it resulted to 0.846. If this number is higher than
0.7, then the reliability of the research is verified.
Based on the research hypotheses, it can be stated that
independent variables are new methods of advertisement,
innovation and problem solving techniques, new communication
technologies, marketing budget and dependent variables which
is the productivity of organizational marketing. Also, the
relation between integration of guerrilla marketing and
traditional marketing with new methods of communication
technologies and marketing budget are explored and analyzed.
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Marketing
budget vs
leverage
management
New
communicating
technologies vs
promotion
Interface of guerrilla
marketing and traditional
marketing
Productivity of
organizational
marketing
Innovation and
problem solving
techniques vs
products & price
New methods
of
advertisement vs
promotion mix
Figure 2: A Conceptual model (source: Author work, 2013).
3.1 Population and Sample
The target population is hotels in Owerri Municipal. The
samples were selected from the target population. Owerri is the
capital of Imo State and is the eastern heartland. The hotels
provide lodging, food, rental, events management and the
related services. They have weathered series of storms and
related business fluctuations, and the approaches or techniques
adopted are worth assessing to determine the extent of use.
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As a result, the numbers of samples were 70, stratified random
sampling was used. For determination of the sample size, the
following formula was used:
N = (1-r2)Z2
r2 d2
Because of n= number of sample and α = 0.05, then Z2 (a/2)
equals (1.96)2. Based on the data of initial sample, r equals 0.76
and degree of freedom equals 0.2. Therefore, after substitution
of digits in the given formula, the number of samples gained
was 70 and with the thought of raising the validity of these
questionnaires, and possibly faulty ones among the
questionnaires which will be returned, the number was raised to
90 and the questionnaires were done.
RESEARCH FINDINGS
Data descriptive analysis
The number of samples was 70 managers and all of them were
male of middle age. For normality testing of variables, the
Kolmogrov – Smirnov test was used. The test results are shown
to be consistent with literatures, (Asika & Osuagwu 1997,
Deacon, et al, 1999, Gibb, 1990, Ramon, et al, 2007, Masanell,
et al, 2009). By Pearson’s correlation coefficient, the relation
among new methods of advertisement, new communication
technologies, innovation and problem solving techniques, and
marketing budget are verified. Due to the fact that the error level
(0.000) is lower than the given error level (0.05), H0 based on
equality of variables priorities is rejected. Thus, the result of
Friedman test shows new communication technologies item
with mean 1.99 in the first priority, the innovation and problem
solving techniques with mean of 2.04 in the second priority,
marketing budget item with a mean of 2.87 in the third priority
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and new methods of advertisement item with mean 3.10 in the
fourth priority of productivity of organizational marketing.
CONCLUSIONS
The research shows that there is a relationship between the
integration of guerrilla marketing and the improvement of
productivity of organizational marketing in Nigeria enterprises.
There is a significant relation between new methods of
advertisement and productivity of organizational marketing.
Therefore, the first secondary hypothesis is verified. There is a
significant relationship between innovation and problem solving
techniques and productivity of organizational marketing.
Therefore, the second secondary hypothesis is verified. There is
a significant relationship between new communication
technologies and productivity of organizational marketing.
Therefore, the third secondary hypothesis is verified. There is a
significant relationship between marketing budget and
productivity of organizational marketing, the forth secondary
hypothesis is also verified. The mean of productivity of
organizational marketing measurement shows sequentially new
communication technologies item, marketing budget item,
innovation and problem solving techniques items, and then the
last new methods of advertisement item which influence the
productivity of organizational marketing in SMEs in Owerri.
Recommendations
The author observes that the views on guerrilla marketing that
come from the empirical findings in studying the marketing of
hotels services in Owerri, are very similar to the theoretical
frameworks on the phenomenon in terms of definitions.
Guerrilla marketing has a shorter frame of time in planning and
execution, unlike traditional marketing. It can take place within
123
a shortest time possible, (Levinson, 2003). The researcher is of
the opinion that more and more hotel marketers should start
using guerrilla marketing if they want to survive the harsh and
tough economic trends in Owerri, Imo State Nigeria. According
to Ives (2009), it is believed that more and more marketers will
start to use guerrilla weapons since the end customer have
proven to be harder and harder to reach. Consequently, the
empirical findings in this study confirm the same that there is a
problem today with traditional marketing strategies; the public
are fed-up, basically with repetitive advertising.
Guerrilla marketing orientation will assist every marketer solve
the problem of customers blocking of marketing programmes.
Levinson (1998) opined that a good way to reach the end
customer without being blocked is to target the segment, using
target marketing. The study has proven that guerrilla marketing
is a more targeted approach than conventional marketing, which
implies that it is in a smaller scale. However a word of caution is
that the enterprise operators should be mindful of ethical issues
so as not to offend, otherwise all effort to market can backfire.
They should be careful not to infringe on the law, in order not to
commence a programme that will be counter-productive.
Every guerrilla marketer must know the target audience. It is a
classical start of every marketing campaign. The company has to
define the target customers properly for the best guerrilla design
creation and to avoid ethical aspects. By knowing the customer,
a focused strategy can be applied to encourage people to take an
advantage of your offer. Secondly, guerrilla marketers should
think “outbox”. Creativity is what guerrilla marketing requires
from you. Make the customer remember you. Marketers always
have to come up with new ideas to remind customers about their
brand and protect the surprise effect of every guerrilla marketing
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activity. This aspect of guerrilla marketing fit the needs of
today, which is, ‘stay away from uniformity and insist on
creativity and flexibility’.
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