Imperatives of Marketing for the Manufacturing Sector Performance in Ethiopia

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DOI: 10.21522/TIJMG.2015.SE.19.02.Art017

Authors : Abebe Nigatu Endalew

Abstract:

In a competitive global market, marketing Strategy of firms’ activities needs emphasis to customer value. The significance of marketing as a means of improving company profitability has never been given more attention than it is today. Recent developments reveal that the new market thinking along with the existing dynamic environment (i.e. globalization and technology) has forced companies to change their strategy from the manufacturing to that of marketing phase of production clearly seen; technological changes and the effect of globalization are making national economies undergo rapid transformation. In line with this development, the marketing practice in manufacturing sector needs strategic thinking with a paradigm shift from production orientation to market orientation to improve the operational performance of manufacturing sector. The traditional thinking of ‘making profit through increasing volume of sales ‘should be changed to the mindset of ‘making profit through customer satisfaction’. The findings through literature review on Ethiopian manufacturing sector indicates the following about the sector: Underperforming operational performance is impacted by the absence of market-oriented approach. As a result, the competitiveness of the sector is very low both in local and global markets.

Keywords: Marketing, Competitive advantage, Ethiopian Manufacturing sector, Market orientation, Production orientation

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