CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Information and Communication Technology (ICT) is widely used in many organizations. ICT has provided new ways for organizations to store, process, distribute and exchange information with their stakeholders as well as within the organization (Kollberg and Dreyer, 2006). Previous studies demonstrate the positive implication of ICT adoption for the operation, structure and strategy of organization (Burhalis, 2003), the adoption not only leads to cost cutting and efficiency enhancement, but also customer service improvement (Ashrafi and Murtaza, 2008). The development of core competences to enhance competitiveness and performance of firms (Wernerfelt, 1984; Prahalad and Hamel, 1990) has gained interest in academic literature. According to the resource-based view (RBV), sustainable competitive advantages are driven from an organization’s distinct capabilities (Amit & Schoemaker, 1993; Grant, 1991, 1996). There has been a growing interest in marketing capability studies and the consequences of marketing capabilities on organizational performance have emerged. Previous studies revealed the links between business capabilities and organizational performance, jointly measured using financial (profits, and returns) and market-related (sales and market share) indicators.

Since the mid-1990s we have witnessed a significant process of entrepreneurial transformation. Companies are changing their organisational and business models, as well as the way they establish and develop their productive and strategic activities (Achrol and Kotler, 1999; Prasad et al., 2001; Trim, 2002). Thus, a market oriented business culture considers the consumer as the central element of the business strategy (Schulze et al., 2001). Also, ICT, relationships and knowledge are recognised as internal strategic elements of organisation (Gro¨nroos, 2000; Ravald and Gro¨nroos, 1996; Vorhies et al., 1999).

The relevant literature has analysed the companies’ source of success, recognising marketing and innovation activities – and their correct management – as the key success factors. In this sense, Achrol and Kotler (1999), Badaracco (1991), and Webster(1992), among others, consider that these activities provide the principal axis on the consumer’s value creation process, and their integration make possible to increase firms’ competitive and productivity.

As a global and interactive process that embraces all departments and functions developed both inside and outside the organisation, marketing’s utility is twofold. First, it can guarantee the construction and maintenance of communication and cooperation relationships between different agents, both inside and outside the organisation. Second, the marketing function manages market data correctly, prioritising its acquisition, storage and dissemination throughout the company, and guarantees the existence of a market intelligence that can be used in the process of decision-making (Jaworski and Kohli, 1993; Vorhies et al., 1999). On the other hand, innovation – especially product innovation – is recognised as a key element in the process of value creation (Han et al., 1998; Weerawardena, 2003). Thus, Froehle et al. (2000) and; Schilling and Hill (1998) pointed out that firms often opt for innovation or renovation of their product portfolios in order to improve their competitive situation, so that strategy guarantees the increase of consumer’s satisfaction and loyalty (Atuahene-Gima, 1996a, b; Vorhies et al., 1999).

1.2 STATEMENT OF THE PROBLEM

It has been stated that ICT adoption has positive implications on organizational performance. However, the context of the studies was mainly focused on larger organizations. Meanwhile, most of the studies of technological roles in small businesses emphasize merely the factors contributed to ICT adoptions such as the Internet or e-commerce adoption barriers, as well as cross-country Internet adoptions. Hence, there is a literature gap on comprehensive research that links factors influencing ICT adoption and how it contributes to the development of marketing capabilities and the consequences towards business performance. It is to this regard the study is based on ICT and marketing of goods and services in Bayelsa.

1.3 AIM AND OBJECTIVES OF THE STUDY

The study seeks to examine ICT and marketing of goods and services in Bayelsa state. The objectives of the study are:

1. To determine the relationship between ICT and marketing of goods and services in kadmon printing press, Yenegoa
2. To evaluate the effectiveness of ICT in marketing of goods and services in kadmon printing press, Yenegoa
3. To identify the factors affecting the use of ICT in the marketing of goods and services in kadmon printing press, Yenegoa
4. To recommend ways to improve the role of ICT in the marketing of goods and services in kadmon printing press, Yenegoa

1.4 RESEARCH QUESTIONS

The research questions are:

1. What is the relationship between ICT and marketing of goods and services in kadmon printing press, Yenegoa?
2. How effective is the use ICT in marketing of goods and services in kadmon printing press, Yenegoa?
3. What are the factors affecting the use of ICT in the marketing of goods and services in kadmon printing press, Yenegoa?
4. What are the ways to improve the role of ICT in the marketing of goods and services in kadmon printing press, Yenegoa?

1.5 STATEMENT OF THE HYPOTHESIS

H0: there is no significant relationship between ICT and marketing of goods and services in kadmon printing press, Yenegoa

H1: there is significant relationship between ICT and marketing of goods and services in kadmon printing press, Yenegoa

1.6 SIGNIFICANCE OF THE STUDY

The study on ICT and marketing of goods and services in Bayelsa state will be of immense help to the entire businesses in Yenegoa, Bayelsa state towards the promotion of the use of ICT in marketing of goods and services. The study findings of the study will also establish a correlation between ICT and marketing of goods and services in kadmon printing press, Yenegoa. The study will also serve as a source of information to higher institutions and other researchers and contribute to the body of the existing literature on ICT and marketing of goods and services in Bayelsa state.

1.7 SCOPE OF THE STUDY

The study covers on ICT and marketing of goods and services in Bayelsa with focus on kadmon printing press, Yenegoa

1.8 LIMITATION OF THE STUDY

TIME CONSTRAINTS: One the challenges experienced by the researcher is the issue of time; the research will simultaneously engage in departmental activities like seminars and attendance to lectures. But the researcher was able to meet up with the deadline for the submission of the project.

FINANCIAL CONSTRAINTS: Every research work needs funding; however lack of adequate funds might affect the speed of the researcher in getting materials for completion of the project

1.9 DEFINITION OF TERMS

ICT: Information and communications technology (ICT) is an extensional term for information technology (IT) that stresses the role of unified communications and the integration of telecommunications (telephone lines and wireless signals) and computers, as well as necessary enterprise software, middleware, storage and audiovisual, that enable users to access, store, transmit, understand and manipulate information.

MARKETING: Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emphasize in advertising; operation of advertising campaigns; attendance at trade shows and public events; design of products and packaging attractive to buyers; defining the terms of sale, such as price, discounts, warranty, and return policy; product placement in media or with people believed to influence the buying habits of others; agreements with retailers, wholesale distributors, or resellers; and attempts to create awareness of, loyalty to, and positive feelings about a brand. Marketing is typically done by the seller, typically a retailer or manufacturer. Sometimes tasks are contracted to a dedicated marketing firm or advertising agency. More rarely, a trade association or government agency (such as the Agricultural Marketing Service) advertises on behalf of an entire industry or locality, often a specific type of food (e.g. Got Milk?), food from a specific area, or a city or region as a tourism destination.

SERVICES: Services are the non-physical, intangible parts of our economy, as opposed to goods, which we can touch or handle. Services, such as banking, education, medical treatment, and transportation make up the majority of the economies of the rich nations. They also represent most of the emerging nations' economies.