Advertising as a Strategic Instrument in the Marketing of MTN’s Communication Services

Advertising as a Strategic Instrument in the Marketing of MTN’s Communication Services

ABSTRACT

The research work is meant to examine the extent to which advertising effectiveness can either draw people attention to a particular project or how its ineffectiveness is can put people off from the advertised product. Advertising as a business promotional tool has been badly neglected in Nigeria industries as a mot manager thinks their product can survive without if the main purpose of the study is to ascertain the public attitude towards the advertisement of MTN’s Advertising to enable some MTNs business organization known how consumer feel about services.  It will further evaluate the impact of advertising on the sale of MTN’s services.  It would also benefit students of Mass Communication Business administration, marketing and other similar disciplines that may carry out similar researcher, and the result of the work shall highlight considerably the persuasive quality of advertising on consumers perception and attitude to MTN products and how it helps to create broad awareness. And finally to correct the negative impression some people are having about advertising. In the same aim, it will support markets who wished to excel by recommending that advertising should be planned by experts to ensure its effectiveness and to make sure it does not communicate the wrong information thereby solving some marketing problems.

TABLE OF CONTENT

Abstract

Table of Content

CHAPTER  ONE: INTRODUCTION

1.1 Background Of The Study

1.2 Statement of the Problems

1.3 Objective of the Study

1.4 Research Question

1.5 Research Hypothesis

1.6 Significance of the Study

1.8 Scope of the Study

1.9 Limitation of the Study

1.10 Definition of the Terms

Reference

CHAPTER TWO:  LITERATURE REVIEW

2.1 Theoretical Framework

2.2    Sources of Literature Review

2.2 Review of Relevant Literature

2.2.1 History of advertising

2.2.2 Problem of Advertising

2.2.3 Objective of Advertising

2.2.4 MTN Nigeria Profile

2.2.5 Nigeria Communication Commission Profile

2.2.6 The Relationship Between Advertising and Perception

2.2.7 Advertising as a Medium for MTN  Brand Creation

2.3 Summary of Literature Review

CHAPTER THREE:  RESEARCH METHODOLOGY

3.1 Research Design

3.2 Area of Study

3.3 Research Population

3.4Sample Techniques

3.6 Measuring Instrument

3.7 Method of Data Collection

3.8 Method of Data Analysis

3.9 Expected Result

CHAPTER FOUR: PRESENTATION AND INTERPRETATION OF FINDINGS

4.1 Data Presentation and Analysis

4.2 Analysis of Research Question / Hypothesis

4.3 Test of Hypothesis

4.4 Findings

4.5 Discussion of Result

CHAPTER FIVE: SUMMARY, CONCLUSION, RECOMMENDATION AND

5.1 Summary of Findings

5.2 Conclusion

5.3 Recommendation

Bibliography

Appendix

Questionnaire

CHAPTER ONE

1.1 INTRODUCTION

The world has become a global village as propounded by Marshal Maduban with telecommunications being a key player” (www.Nigeriabusinessinfo.com), and (Okwunna, ed. 2002:225). A breakthrough is the Wireless Global System for Mobile Communications (MTN).  MTN started in Nigeria in 1886, although in a faulty foundation because the colonial administration then was und in promoting administrative functions than the socio-economic development of the country.

The sector was grossly underdeveloped before it was deregulated under the military regime of General Ibrahim Babangida in 1992 with the establishment of a regulatory body, the Nigeria communications commission (NCC).  The total number of telephones lines at independence in 1960 was only 18,724 for a population estimated at 40 million, meaning a teledensity of 0.5 Telephone per 1000 people.

Between 1960 and 1985, the MTNs sector consisted of the department of post and MTN (NET) limited in charge of the external MTNs services.  The installed switching capacity at the end of 1985 was about 200,000 lines against the target of 460,000.  Telephone penetration remained poor equalizing telephone lines to 100 inhabitants recommended by International MTNs Union (ITU) for developing countries.

In January 1985, the Post and MTNs were split into postal and MTN Department Division then later was merged with NET to form Nigeria MTN Limited (NITEL), with the motive to harmonise the planning and coordination of the internal and external MTN services.  NITEL had a monopoly on the sector and was synonymous with epileptic services and bad management.  By the beginning of 1999, there were roughly 500,000 lines available for a population of around 120 million Nigerians.  According to Sylvester Ebhodaghe in Guardian July 16, 2002, before Zain (formerly Econet /Vmobile) and MTN arrived on the scene, there were less than half a million phone lines to about 120 million Nigerians.

In other words, the overwhelming majority of Nigerians were phone-starred” from May 2000, the President Olusegun Obasanjo. S. administration swung to gear to make a complete deregulation a reality by setting in motion the privatization of NITEL.  This has further led to expansion in connectivity through private investment and entry of new private operators, hence, there is improved service quality, expansion in rural access and more affordable tariffs, due to competition Sylvester Ebhedaghe in Guardian July 23, 2001, says that “before the introduction of MTN, despite NITEL being the only service provider that had touched different parts of the country, some state headquarters could not boast of NITEL facilities penetration.  To inadequate the inadequacies speedily for Nigerians to participate in the ongoing global digital revolution, the technology of wireless had to be adopted.

On 9 February 2002, one national operator and two private companies MTN and Zain were granted a license by NCC to operate a digital mobile MTN Network in Nigeria. The license fee was the US $200 million.  They first launched their services in Lagos, Abuja and Port Harcourt, one year after the introduction of MTN, over one million lines were provided.  Also, on August 12, 2002, NCC granted another license for the second national operator (SNO) to Globacom at US 200 million.  The motive is to create an alternative network to the government-owned NITEL because of its poor service.  The Act granted more powers to the NCC thereby reducing the role of the minister for communication to policymaking.  The Act grants almost absolute independence to NCC in making industry regulations.

However, as of now over 5.5million Nigeria have assessed MTN phones.  There are now more mobile phone subscribers than fixed lines users.  At present, a wide range of MTN  services is provided in the country telephony, telex, cellular mobile, radio trunking services, maritime mobile services, voice cast press receipt, data communications, ships here, Gentex  (extension of telex terminal to rural areas), value-added services and e Cetera.

“MTN, arrived Enugu State in 2003, first MTN on 28 October, and Zain which was later introduced in February 2004,” as observed by Charles Emus, MTN Marketing distributor in Onitsha.  Also Mr Vincent Enafi, the credit controller /payphone manager of NITEL in Enugu State, in his contribution, claims that “there were 200 lines available for use in Enugu State before MTN was introduced in the place. Also, that the equipment used was analogue cross point 24 (Cp)”

Enugu State has greatly absorbed mobile communication exchange even in less than one year of its introduction.  A big business to say, it has become part and parcel of the people and has led to a quicker development and civilization.  The first two establishment networks MTN and Zain are in Kin competition, therefore, each service provider through advertising tries to create acceptance for their product by constantly establishing their brand in the mind’s eye of the audience.

Advertising is one effective promotional to which advertisers employ to effectively market their products, ideas and services.  There is a common saying in marketing that “consumer is a king Bangloye (1995:67), emphasizing the importance of placing the consumer first claims that “although marketers usually try to understand and influence buying behaviour, they cannot control it.  This statement justifies the struggle by organizations worldwide to relentlessly amplify their promotional techniques in a bid to outdo one another to win the patronage of the consumers.”

1.2 STATEMENT OF THE PROBLEM

This research is meant to examine the extent to which advertising effectiveness can either draw people’s attention to a particular product or how its ineffectiveness can put people off from the advertised product.

Advertising as a business promotional tool has been badly neglected in Nigerian industries as most managers think their products can survive without it.  Even the few companies that advertise do not see reasons to study how the audience perceives their products, their acceptance or rejection and the reason for such attitude, since MTN is a recent development in Enugu State, there is a need to study how the product is behaving in the market.  This will help the companies to curb any negative effect before it gets ripe.

The work is directed to respondents in Enugu to find out their disposition towards MTN products advertisement.  Before the introduction of MTN Enugu State depended on NITEL for their telephone exchange, but it was surrounded by epileptic services.  The first two established networks are seriously striving for customers through advertising.  But how effective are these adverts have they have been able to yield positive results by working on people’s perceptions and attitudes?  Have they been able to persuade them to purchase the products or vice versa?

This, therefore, poses a problem and the researcher attempts to use the questionnaire to solve this problem by analyzing the response of the respondents.  This will help to make a recommendation.

1.3 OBJECTIVE OF THE STUDY

1. To evaluate the impact of advertising on the sale of MTN products.

2. To evaluate the public perception and attitude towards MTN products advertisements.

3. To recommend ways to increase sales through advertising.

4. To examine the impact of advertising in changing people’s perceptions.

5. To validate the power that advertising has over consumers psychology and how it exploits consumer behaviour.

6. To correct the negative impression some people have about advertising (that it is a waste of funds).

1.5 RESEARCH QUESTIONS

1. Is Enugu State exposes to MTN product advertisements?

2. What is the attitude of Enugu respondents towards MTN products?

3. What is the frequency of those advertisements?

4. Does advertising of MTN products stimulate its patronage?

5. Does MTN product has an edge over the terms of acceptance patronage and reliability.

1.6 RESEARCH HYPOTHESIS

H1: Advertising of MTN products influence public perception and attitude toward MTN products.

H0: Advertising of MTN products does not influence public perception and attitude towards MTN products.

H2: Advertising can induce a public preference for MTN products.

H0: Advertising cannot induce public preference of MTN products MTN.

H3: Advertising will have a relationship with other elements of promotion and marketing in changing public perception and attitude.

H0: Advertising will not have a relationship with other elements of promotion and marketing in changing public perception and attitude.

H4: Advertising has a relationship with public perception and attitudes towards a product.

H0: Advertising does not have a relationship with public perception and attitudes towards a product.

1.4. Significance of Study

This research would be of benefit to business organizations especially MTN industries.  It would enable them to know how consumers feel about their products and also to create awareness of the role of advertising in developing a perfect brand image.

The research would also be useful to the government, advertising agencies, consumers and advertisers in all ramifications.  Academically, it would also benefit students of mass communication, business administration, marketing and other similar disciplines that may carry out similar research, and the result of the work shall highlight considerably the persuasive quality of advertising on consumers perception and attitude to MTN products, and how it helps to create brand awareness.

1.8 SCOPE OF THE STUDY

This study explores how advertising complements the marketing of MTN products by acting on public perception and attitude.  The study includes the historical background of MTN in Nigeria and it was further streamlined to Enugu State.