WHATEVER the outcome of the current impasse on fuel price between Nigerians and the Federal Government, higher costs of production is certain to be a key feature of 2012.This would invariably lead to higher prices. Higher prices in turn would spur consumer resistance due to lowered disposable incomes, prioritisation and budget cutbacks.Companies reacted to such situations in the past by cutting back on the budgets for marketing communications. Manufacturing firms were in particular guilty of these, preferring short term push strategies over long term consumer pull. Evidence across the world shows that a contrarian approach 'emphasising greater contact and smarter spend- would serve better.Higher costs come against the backdrop of some factors in the environment including growing consumer sophistication and media literacy; growth in channels for engagement with stakeholders 'traditional and new media ' about 26 radio stations serve Lagos alone, while the country now effectively has about four radio and three television networks; the growing engagement of audiences in brand and social matters using the social media; increasing media and audience fragmentation in the key cities at least; increased competitor activity and parity across product segments. Companies would do well in 2012 to focus on the following:Strategy, strategy, strategyThinking and acting strategically would be a key success factor. Smart firms would have to spend the rest of January 2012 to review and revise the operational plans drawn up in the last quarter of 2011. They should look closely at Michael Porter's typology of strategic choices ' overall cost leadership, differentiation and focus ' and decide how to proceed. Strategy is key because as the military tactician defined it, 'strategy is choice; choice of where and how to operate.'Build deeper relationshipsRelationships have always been important in business, but building deeper relationships across all stakeholder groups would differentiate winners from losers in the Jonathan Fuel era. The stakes are high, involving the most important P in the marketing mix for both marketers and consumers. Price translates to value for both parties and value would be all-encompassing in the wake of tighter budgets. Companies would have to build strong Customer Relationship Management (as against Marketing) frame works that take in the internal as well as external environments of the business.Focus on qualityThis should ordinarily flow from the strategic orientation but it is worth noting that quality would be critical in consumer choices and companies with perceived quality would win.Marketing & Innovation 'The Druckerian thesis never held truer than what this year demands for firms in Nigeria. Drucker posited that the whole essence of business is marketing and innovation: identifying needs and meeting those needs profitably with products and services that offer better value than competition.CommunicationAll of the foregoing requires stronger and more effective communication with stakeholders. Stakeholder engagement would be the focus because all touch points count and contribute to the bottom line. Perceptions would swing consumer choices, and perception is a complex of all of the foregoing and how it is communicated.It should be a year of greater involvement and deployment of marketing communication in all its ramifications to deliver powerful messages, create awareness, build credibility and sustain the relationships that would take firms through the long haul. Short termism would be counter-productive.
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