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Dwindling oil Price: What should Marketing do




Stakeholders and Experts in the Integrated Marketing Communication (IMC) industry in Nigeria recently gathered at the 2015 edition of the National Marketing Summit organized by Marketing Edge. OLUWAGBENGA BANKOLE examines the role of marketing in this era of dwindling oil price.

Judging from different perspective, there is no doubt that the dwindling oil price has immeasurably affected the economy of the country. Nigerian economy is currently experiencing a downward trend. The fall in the price of crude oil, a major source of revenue for the country, has serious implications for the country’s economy.

Oil glut has for half a century been a global dominator of economies. It determines commodity prices. It determines “rich” and “poor country”. It determines the now obsolete index of GDP. It shapes markets and social well-being, and thus it determines markets and Marketing.

The economic situation is biting so hard in some states in the federation that monthly receipt from the federation allocation has sharply declined. Consequently, some of the states can no longer meet up with their financial obligations. Thus, only a few state governments are able to pay their workers as and when due, while many others are unable to meet their obligations to their workers. Some Federal Government agencies are equally not faring any better in this respect. The private sector is also not totally immune from the gloomy economic reality in the country as it has impacted negatively on the value of the naira. With the diminishing value of the naira, local industries are facing serious challenges that could actually lead to downsizing of workers if the situation is not quickly addressed. Hence, from every perspective, these are, indeed, trying times for the country.

While speaking on a topic “a new roadmap for marketing business in the age of global oil glut” at the recently held 2015 edition of the annual National Marketing Summit in Lagos, Chairman, Lead Consultant, Sef Patri Services Mr. Josef Bel-Molokwu said that the changing façade of economies as a result of the nuances and fluidity of an Oil-defined miasma has for more than a decade now sustained an atmosphere of challenges, fears, uncertainties - and a surge of innovation and creativity.

He said marketing has done much more than most national and global input sectors by responding quickly to global force changes and challenges.

Bel-Molokwu noted that the response of Marketing should be two-fold, in a broad perspective, stating them as finding the Answer in Innovation and Creativity, and providing unconventional solutions to keep attracting – and attracting - more of the apparently unending stream of consumers, retaining them and converting them into Partners and Ambassadors.

“This new orientation to Marketing has at its heart the need to absorb the shock waves of recession and value shrinkage occasioned by a realization that dependence on Oil and Oil-based computations of national wealth will not likely endure for the next decade. New energy sources, new production processes, new Oil fields in hitherto non-Oil locations can only intensify the glut,” he said.

He also stated further that “It is not just that Oil prices are falling, or that more Oil is being found. The reality is that soon, very soon, Oil will become a commodity of the past. So, it behooves Marketing experts to take on the need to open new markets in the direction of serious sell of intangible, no longer the effortless sell that is Oil.”

Bel-Molokwu said that a new era of Marketing is here, an era that does not have to be slowed down by market vagaries or be dependent on Oil, Glut or no Glut, but It is an era of Knowledge, adding that it is an era of creativity, digital and mental boom and billion Consumers.

“The 7th Era of Marketing is right here with us, and we MUST recognise its “here-ness” and understand that we cannot evade it in Nigeria as we have evaded technology and production. The 7th Era of Marketing is the era of Experience Orientation. The Era of Experience Sharing is characterized by digital media dominance and a Consumer that is equipped with Knowledge as well as the avenues to be empowered to Know. As a result of this, as adequately described by Marc Mathieu, Unilever’s senior vice president for Brand Marketing, only the Truth [about the Brand] will make today’s Consumer happy. He says that Truth is also everything the Consumer would be happy to know and be connected [with the Brand and its attributes].” he emphasized.

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