THE IMPACT OF ADVERTISING ON THE MARKETING OF GLOBAL SYSTEM FOR MOBILE (GSM) COMMUNICATION IN ENUGU STATE:
(A STUDY OF MTN NIGERIAN COMMUNICATION LIMITED)
ABSTRACT
This study is to identify the impact of Advertising on the marketing Global system for mobile (G.S.M) Communication in Enugu a case study of MTN Nigeria Communication Limited.
The main purpose of this research among others is to know the important and benefit of advertising to the general public such as those in the top position both federal, state and local government level. Also to the business class they can now obtain and give information to one another any time they want it.
The successful implementation of the advertising will help to bridge the gap between the rich and the poor in terms of NITEL being the only source of telephone communication in Nigerian. It also intends to check the influences of advertising on purchasing habit of subscribers. To find out methods of budget allocation to advertising by MTN Nigeria Communication Limited. The effect of such influence, if any on sales in MTN Nigeria Communication Limited.
The major and promotion types adopted by MTN Advert enable companies to tell widespread but selected audience about their products or service in the word of their own choosing when and where they believe their subscribers are most likely to see them.
The simple act of advertising make an important statement about a company, that it has a product of services of which is provided that meets a particular need which it backs publicity with its name and reputation and that would be of vale to the subscriber and is prepared to compete for it.
TABLE OF CONTENT
TITLE PAGE II
APPROVAL PAGE III
DEDICATION IV
ACKNOWLEDGEMENT V
ABSTRACT VII
TABLE OF CONTENT IX
CHAPTER ONE: INTRODUCTION 1
1.1 HISTORICAL BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE RESEARCH PROBLEMS8
1.3 OBJECTIVES OF THE STUDY 8
1.4 SIGNIFICANCE OF THE STUDY 9
1.5 RESEARCH QUESTION 10
1.6 RESEARCH HYPOTHESIS 10
1.7 CONCEPTUAL AND
OPERATIONAL DEFINITION 11
1.8 LIMITATION OF THE STUDY 12
CHAPTER TWO LITERATURE REVIEW
2.1 SOURCES OF LITERATURE 14
2.2 REVIEW OF LITERATURE 14
2.3 SUMMARY OF LITERATURE REVIEW 25
CHAPTER THREE- METHODOLOGY
3.1 RESEARCH METHOD 27
3.2 RESEARCH DESIGN 27
3.3 RESEARCH SAMPLE 28
3.4 MEASURING INSTRUMENT 28
3.5 DATA COLLECTION 29
3.6 DATA ANALYSIS 30
3.7 EXPECTED RESULT 30
CHAPTER FOUR- DATA ANALYSIS AND RESULT
4.1 DATA PRESENTATION AND ANALYSIS 32
4.2 USING CH-SQUARE TO TEST THE HYPOTHESIS40
CHAPTER FIVE
5.1 SUMMARY OF FINDINGS 52
5.2 CONCLUSION 56
5.3 RECOMMENDATION 54
BIBLIOGRAPHY 58
QUESTIONNAIRE 60
CHAPTER ONE
INTRODUCTION
1.1 For proper elucidation and understanding of this discourse, it is of paramount importance to trace the history/origin of the research topic in accordance with the saying “that anything, man or nation without a history is equally without a future” can be most applicable in this write up or research.
Having established this promise I shall proceed to trace the history of advertising globally and zero it to Nigeria, industrialism but an ancient practices that goes back to the very beginning of recorded history.
According to Okoro N.(2000) The diggings of archaeologist in the countries rimming the Mediterranean sea have turned up evidence of the use of signs to announce various events and offers. The Romans painted walls to announce forthcoming gladiatorial contests and Phoenicians painted morals on prominent rocks along trade routes extolling the wares they sold, a precursor of modern outdoor advertising.”
In Pompeii, a wall has been found praising a politician and asking for the people’s votes as far back as 1317. another early form of advertising was the use of town criers. In Greece during the Golden Age, town criers were paid to circulate through the streets of Antheris announcing the sales of stores, Cattle and other goods as well as making public announcements. An early singing commercials used in ancient Author went as follows” for eyes that shining for checks like the dawn/beauty that last after girlhood is gone /for prices in reason, the woman who knows will buy who knows will buy her cosmetic of Aschypots.”
The third early form of advertising was the mark placed by artisans on their individuals goods, such as pottery. As the reputation of particular artisan spread through word of mouth, buyers began to look for his distinctive mark, just as trademarks and brand-names are used today. They would pay a premium for example. Osnabruck linens, as production became more centralized and markets become more distant the mark of identifying name took on more significance.
The turning point in the history of advertising was in 1450, the year Goutenberg invented the printing press. No longer did advertisers have to produce extra copies of sign by hand. The first known English language advertising appeared in 1478. in 1622, an important new medium gave advertising a substantial forward push, namely the first English newspaper the weekly New. Later Joseph Addision and Richard Steele published the Tatler and became devotees of advertising, Addison in duded this advice to copy writers.
The art of writing advertisement is the founding method to catch the reader. Advertising had its greatest growth in the United States rathan then England, Benjamin Franlin is often called the father of America’s cardle of advertising first, America industry led in the mechanization of production, which created surpluses and the need to convince consumers to buy more. Furthermore, the development of fine network of waterways, highways and roads made the transportation of goods and advertising media to the country side feasible. The establishment of compulsory public education in 1813 led to the decline of illiteracy and the growth of newspaper and magazine. The invention of radio and later television created two more amazing media for the dissemination of advertising. From then started modern advertising.
1.1.2 THE DEVELOPMENT OF MODERN ADVERTISING IN NIGERIA
Modern advertising started in Nigeria through already existed before the advent of European advertisement. Though this traditional forms of advertising was crude, unsophisticated and the audience are limited in number, still sellers make appropriate use of them in making their goods and services known.
However, the first advertising in made its debut in Nigeria with the first Nigeria Newspaper, namely Iwe Irohin published at Abeokuta by Rev Henry Townsend in 1859. the advert was mainly on the announcement of births, weeding, deaths, vacancies of job seekers, church activities etc.
Advertising in cinema came into existence in 1903. Radio and Television advertising came as a result of the British Broadcasting Corporation (BBC) i.e for the radio, through the empire service for West Africa which was established in 1932, while in 1959 television advertising came into existence as a result of the establishment of television broadcasting in Ibadan.
Today in Africa and Nigeria, modern media of communication has been found to be an indispensable tool of modernization and development of advertising.
Having layed the foundation of advertising , the world over and Nigeria in particular, It shall suffice now to delve into MTN Introl history
1.1.3 ABOUT MTN NIGERINA
MTN Nigeria Communications Limited is part of the MTN Group, Africa’s leading mobile telephony Company. Incorporated in Nigeria on November 8, 2000 as a private company, it secured licence to operate digital (Global system for mobile telecommunications, GSM) telephony on February 9, 2001, from the Nigerian Communications Commission.
On May 16, 2001, MTN emerged as the first to make a successful call on its GSM network in the new dispensation. Thereafter, the company launched full commercial operation beginning with Lagos, Abuja and Port Harcourt. The company now provides coverage to 85 cities and well over 5,000 communities and villages, spanning every gev-political zone and 31 of Nigeria’s 36 states. MTN attained the one million active subscriber mark on February 10, 2003, and as at December 31, 2003, had 1,650,000 active subscribers on its net work.
The company subsists on the core brand valves of leadership, integrity, innovation, relationships and a “can do “ attitude, a belief that nothing is impossible.
On January 20, 2003, MTN commissioned the first phase of its digital microloade transmission backbone YelloBahn Spans 3,400 kilometers and traverses over 120 cities, villages ad communities. Y’elloBahn is Africa’s most extensive transmission infrastructure and has significantly helped to enhance call quality on MTN’s network, while coverage has been extended to more than 90 major towns and a total over 5,000 villages and communities across Nigeria. The second phase of Y’ello Bahn is currently ongoing and will span another4,500 kilometers.
On February 10, 2003 MTN recorded one million active subscribers on its network, making it the largest telecommunication network in Nigeria. The company one million, six hundred and fifty thousand active subscribers on its network as at December 31, 2004. had a total of 21 mobile switching centers and over 940 radio base stations across the country, several more are in the process of being installed.
1.1.4 HISTORY IN ENUGU
MTN has a strong presence in Enugu with a friendship center located at Zik Avenue in the Uwani area. In December 2001 MTN became the first GSM provider to extend service to Eastern Nigeria, when it laundied service in Owerri, Enugu, Aba, Onitsha and Asaba in Delta state.
It may be recalled that Enugu was the home of Nigerin’s first mobile telephony micro credit scheme, known as the Ogene Ladies Community Phone Programme. The project was launched by MTN in conjunction with growing Business foundation, a non-governmental organization disbursed GSM lines. Handsets, recharge and booster cards to women in the Enugu Community to enable them operate pay phones. MTN in Enugu has other subsidiary office at Benjack Group, Bisalla Road, popularly known as Ebe Ano Housing
Estate.
1.1.5 OWNERSHIP
MTN Nigeria is 76.44% owned by Mobile Telephone Networks International Limited, 20. 56% owned by Nigerian partners with the balance of 3% shareholding residing with the international Finance Corporation, the infrastructure investment arm of the World Bank.
1.2 STATEMENT OF THE RESEARCH PROBLEM
Many customers do not patronize a company’s product when they are ignorant of its existence. In addition, customers find it difficult making a repeated purchases on a product whose advertisement is not strong nor motivating.
Consequent upon the foregoing, the problem inherent in this research work is to know the impact of advertising on the marketing of Global system for mobile (GSM) Communication of MTN here in Enugu.
1.3 OBJECTVES OF THE STUDY
Primarily, the ultimate purpose underlying all advertisement is to increase awareness and Spur increased demand by customers for any range or type of product & service involved. Specifically, this study intends to:
i. To know whether advertisement attracts new customer for MTN
ii. To find out the impact or effect of advert messages of MTN on the publics
iii. To find out whether advertising is expensive or not
1.4 SIGNIFICANCE OF THE STUDY
Without mincing words, the level of advertising embarked upon by MTN Nigeria in the running of their product and services calls for researching,
i. To know the impact on their customers and the sales of the product and
ii. To serve as a guide to MTN Company in its advertisement saga or pursuit.
iii. It will add to the existing literature already in advertising a product or services
iv. It will provide an in-depth knowledge to researchers and readers alike.
1.5 RESEARCH QUESTION
This research is aimed at providing solutions to the following questions:
a. What role does advertising play in the marketing of MTN products in Enugu?
b. What will be its advertising budget?
c. Can advertising increase sales?
d. Which medium serves them best in advertising its product?
e. Who are the target audience or public.
1.6 RESEARCH HYPOTHESIS
a. The use of advertising by MTN is accused of promoting materialism in the society just because it is used to promote products to satisfy the materialistic requirements of customers.
Ho. With the use of advertising through internet, it is essential to obtain universal acceptance of MTN.
Hi, The use of advertising has been considered the most effective and efficient way of advertising MTN product.
Hd, The use of advertising is blamed for enticing people with its product they never wanted to purchase
Hi, the use of advertising by MTN mobile communication of Nigeria leads to increased profitability in carrying out its marketing activities.
Ho, Obtaining universal acceptance of any product or services is extremely difficult.
1.7 CONCEPTUAL AND OPERATIONAL DEFINITION
It was Cicero who once said that for “any discourse to be properly and systematically treated, it has to begin with a definition, so that readers may understand the terms/topic in question.” Beginning with advertising .
Advertising: Is defined as any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor, Oxford Advanced Learners Dictionary.
Operational definition of advertising is directed to Global system for mobile
Communication (GSM) Equipment of MTN Nigeria Limited is a process by which the management of MTN in Enugu engage itself to advertising their product to the public.
Impact : Impact means strong impression or effect on somebody or something.
GSM: The mnemonic GSM stands for Global system for mobile Telecommunications.
MTN Communication:
MTN Communication is a Nigeria cellular network and is part of the MTN Group, the largest telecommunications company in Africa.
1.8 LIMITATION OF THE STUDY
The topic understudy is relatively new in the Nigerian context in terms of previously recorded fact and statistics that could have provided secondary data.
It is cost intensive to cover all the people or area in Enugu metropolis for thorough research, only a restricted area were covered because of money.
Itinerancy also formed a barrier hence not everybody given a questionnaire were able to fill the form correctly.
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