Full Project – ADVERTISING AS A STRATEGIC INSTRUMENT IN THE MARKETING OF MTN’S COMMUNICATION SERVICES

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CHAPTER ONE

INTRODUCTION

The world has become a global village as propounded by Marshal Maduban with tele-communications being a key player” (www.Nigeriabusinessinfo.com), and (Okwunna, ed. 2002:225). A major 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 about 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 as against the target of 460,000.  Telephone penetration remained poor equalizing telephone line to 100 inhabitants recommended by International MTNs Union (ITU) for developing countries.

In January 1985, the Post and MTNs was split into postal and MTN Department Division then later was merged with NET to form Nigeria MTN Limited (NITEL), with the motive to honomonise the planning and co-ordination 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 of Sylvester Ebhodaghe in Guardian July 16, 2002, before Zain (formerly Econcet /Vmobile) and MTN arrived on the scene, there were less 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 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.  In order to inadequalise the inadequacies speedily for Nigerians to participate in the on-going 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 license by NCC to operate a digital mobile MTN Network in Nigeria . The license fee was 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 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 policy making.  The Act grants an almost absolute independence to NCC in making industry regulations.

However, as at now over 5.5million Nigeria have assess to MTN phones.  There are now more mobile phone subscribers than fixed lines users.  At present, a wide range of MTN  services are provided in the country telephony, telex, cellular mobile, radio trunking services, maritime mobile services, voice cast press receipt, data communications, shipshere, 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 own 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 analog cross point 24 (Cp)”

Enugu State has greatly absorbed mobile communication exchange even in less than one than one year 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 trics to create acceptance for their product by constantly establishing their brand in the mind’s eye of 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 on the importance of placing the consumer first claims that “although marketers usually try to understand and influence buying behviour, but they cannot control it.  This statement justifies the struggle by organizations world wide to relentlessly amplify their promotional techniques in a bid to out do one another so as to win the patronage of the consumers.”

1.2       STATEMENT OF THE PROBLEM

This research is meant to examine the extent at 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 with 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 result by working on people’s perception and attitude?  Heave they been able to persuade them to purchase the products or vice versa?

This therefore posses 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 in the sale of MTN products.

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

3.     To recommend ways to increase sale through advertising.

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

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

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

1.5    RESEARCH QUESTIONS

1.     Is Enugu State exposes to MTN product advertisements?

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

3.     What is the frequency of those advertisements?

4.     Does advertising of MTN product 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 have influence on public

perception and  attitude toward MTN products.

H0:    Advertising of MTN product does not have influence on

public perception and attitude towards MTN products.

H2:    Advertising can induce public preference of MTN

products.

H0:    Advertising cannot induce public preference of MTN

products MTN.

H3:    Advertising will have relationship with other elements

of promotion and marketing in changing public perception and attitude.

H0:    Advertising will not have relationship with other

elements of promotion and marketing in changing public perception and attitude.

H4:    Advertising has relationship with public perception and

attitudes towards a product.

H0:    Advertising does not have 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 perfect brand image.

The research would also be useful to the government, advertising agencies, consumers and advertiser in all ramification.  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 product, 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.

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Full Project – ADVERTISING AS A STRATEGIC INSTRUMENT IN THE MARKETING OF MTN’S COMMUNICATION SERVICES