Impact Of ICT On Advertising Practice In Nigeria

Project and Seminar Material for Marketing

Impact Of ICT On Advertising Practice In Nigeria


Abstract


The study researched into how telecom companies in Nigeria with particular focus on Globacom use Information Communication Technology (ICT), and its impact on their Marketing Communications. Empirical evidence in developed countries suggest that organizations in these countries have found creative ways of maximizing the use of ICT tools in marketing communications. It became imperative to discover if these same tools are being exploited by organization in emerging countries like Nigeria. The paper investigated whether ICT tools are used rightly or wrongly, the quality of the websites and the impact of the usage on revenue generation. A survey method was used with focus on a Telecom company- Globacom. The questionnaire was targeted at the Marketing and IT department as it is believed that these people had a better understanding of what was required as well as having the information needed to provide accurate responses. The questionnaires were sent Via email through Microsoft Outlook which enabled the respondents to provide responses directly on the soft copy. The findings of the research showed that globacom commenced the use of ICT in marketing communication in 2001. The company has a working website and has over the years built a mailing list. The website is a basic website with light graphics and offers opportunity for clients to sign up on line to receive correspondence from the company.

Unfortunately, it seems that this particular feature has not been used by clients as globacom resorts to coping e-mails. This violates the CAM-SPAM law and could open up Globacom to spamming complaints. Findings also indicate that the organization has made effort to maximize the use of e-mail marketing. They often change the e-mail marketing message, update the content of the website and constantly update software and hardware. Findings also showed a two hundred percent increase in revenue earned prior to 2001 as compared with revenue earned in 2009. It was recommended that globacom build a website that is heavier in pictures and graphics while not reducing the text, that the company must protect itself from spam complaints by ensuring that only consented clients are sent email and that the Company should advertise their website and encourage people to sign up to receive e-mail from them.


Chapter One


Introduction

1.1 Background to the Study

Advertising as a concept, can be defined as a form of communication through the media about product, services, ideas, personalities or organizations, paid for by an identified sponsor Alide in Okunna (2002: 99).

Bovee and Arens (1985) gave a more widely accepted definition of advertising as the non-personal communication of information, usually paid for any usually persuasive in nature about products (goods and services) or ideas by an identified sponsor through various media. It is an exciting, dynamic, and challenging enterprise.

Its often a persuasive communication in that it tries to persuade the reader, the listener or the viewer to take to the sponsor’s own point of view and also to take some appropriate action. It is not personal or face to face communication, rather it is directed to a group of people.

Advertising is also controlled, identifiable information and persuasion by means of mass communication media. Defined by Wrignt and Zeight (1982:10). Gillran Dyer says that in its simplest sense, the word “advertising” means drawing attention to something or notifying or informing somebody of something.

According to the understanding of advertising practitioners council of Nigeria (APCON) “advertising is a form of communication through the media about products, services or ideas, paid for by an identified sponsor”.
The terms advertising was coined from the Latin word “advertere” which mean literally means to draw attention. This is when you are getting the evidence mind in a product, notifying or informing somebody/people of something.
Some of the Popular Advertising Media

  • Radio
  • Television
  • Newspaper
  • Magazine
  • ICT (GSM, Social Media, blog, website, youtube, digital banner) e.t.c

1.2 Statement of the Problem

Lack of trust, absent of physical interaction and fair of being deceived and duped have been attributed to some of the challenges facing internet or information and communication technology all over the world especially in Africa and Nigeria in particular because it is relatively new to them.

To this end, the research seek to determine the influence of information and communication technology which encompasses mobile phone, internet, world wide web (www), social networking, blogs, youtube and many more on advertisement practice in Nigeria with an evaluation of Globacom products and services.


1.3 Research Questions

  1. Does Globacom use ICT in advertising its products and services?
  2. To what extent does ICT have an impact on advertisement of Globacom products?
  3. Of what benefit is ICT to advertisement of Globacom products?

1.4 Objectives of the Study

  1. To know whether Globacom uses ICT in advertising its products and services.
  2. To examine whether ICT have an impact on advertisement of Globacom products.
  3. To show the benefits of ICT in advertisement of Globacom products.
  4. Get other 4 objectives of the research after purchase

1.5 Scope of the Study

The research has through the topic “The Impact of ICT on Advertisement Practice in Nigeria: An Evaluation of Globacom Products” narrowed the scope of the study to one of the telecommunication giants in Nigeria Globacom Limited (GLO) because to study all telecommunication industry in Nigeria will be too difficult compared with the time and finance available for this research.

While meaning of advertising, functions of advertising, importance of advertising, advertising media, social media and many more.


1.6 Significance of the Study

The research is significant because it will be beneficial to business firm, school, government, individuals and researchers.

Company:

Difference companies will find this research very interesting as it will keep them aware on the benefit of using ICT when it comes into making there products and services known to the work and how cheap it always be to use.

Researchers:

People that will be carrying out research in relation to this will find the materials useful as it will provide them a clue to their own research.

Academic:

It will form part of academic materials that students, lecturers, researchers, company can turn to when looking for solution to advertising on ICT, social media, GSM and other related aspect.


1.7 Limitation of the Study

There are many limitations ranging form not knowing where to start, not knowing who to consult or approach for materials not knowing what next to write in various segment of this study and not actually knowing who to put me through in achieving my work and others are:

  1. Stress from other academic activities is one of the limitations to the research work
  2. Financial constraint to travel to different places.
  3. Duration for the research work is relatively short
  4. Materials that are available on this topic is relatively small as the concept is new or people are not written from that angle.

1.8 Definition of the Terms

Impact:

This means the contribution or influence of something on another such as influence of ICT on advert

ICT:

It means Information and Communication Technology

Advertisement:

This is a paid form of promotional message shared through media that are usually non-personal media for the purpose of persuading and influencing people to buy a product or service.

Globacom:

It is the shot form of Globa Communication Limited.


Chapter Five


Summary, Conclusions And Recommendation

5.1 Summary

This study was conducted to find out how Telecom companies in Nigeria use ICT in marketing communication. Globacom was used as a case study. ICT (internet) has become intertwined with life. It is ubiquitous and its impact on all aspects of life cannot be overemphasized. Organisations have found creative ways of using ICT tools to reach their customer and boost their position in the market.

Empirical evidence has shown that the internet and e-mail offers organization the cheapest and fastest way to reach a targeted audience. The cost of communicating with a targeted audience via email is a mere fraction of a telemarketing cost. The internet lends itself to various interactive uses. Marketers all over the world have tried to exploit this unique ability that ICT offers.

A very high percentage of people in developed countries have access to the internet. This high penetration rate has motivated organizations in these parts of the world to look to the internet as a very viable option to reach a targeted audience. Most of the research that has been conducted so far has been on ICT usage in developed countries in America and Europe. These studies have shown that people are moving away from print to electronic medium. The advent of social network has given rise to new forms of marketing like gorilla marketing and viral marketing. These are tools that can be exploited by marketers to their advantage at very little cost.

An extensive literature review was undertaken in this study. The review showed that there are different levels of ICT usage in marketing communication. They range from very basic uses like a mere presence on the web and very sophisticated uses like on line purchase and payment, CRM, SFA and product design and customization. Organizations found creative ways to exploit these uses.

It became necessary therefore to find out if organizations in emerging economies are also using this technology to their benefit. This was necessitated by the fact that there is little literature available on the use of ICT tools in marketing communication by organizations in emerging markets like Nigeria. The focus of the research was on the Telecom industry. Globacomwas used as a case study. Globacom is the biggest telecom company in Nigeria with three subsidiaries. The researcher believes that a company of that size whose revenue is mostly through export will be one of the first to adopt these tools and try to exploit its most sophisticated uses.

The study was designed to be a survey. Primary empirical data was gathered through the use of questionnaire targeted at the Marketing and IT Department. Data collected was analysed using SPSS and simple percentages in a descriptive manner. The findings of the research showed that Globacom commenced the use of ICT in marketing communication in 2001. The company has a working website and has over the years built a mailing list. The website is a basic website with light graphics and offers opportunity for clients to sign up on line to receive correspondence from the company.

Unfortunately, it seems that this particular feature has not been used by clients as Globacom resorts to coping e-mails. This violates the CAM-SPAM law and could open up Globacomto spamming complaints. A complaint like that by a client could cause all ISPs to block all mails coming from the domain of Globacom.

Findings also indicate that the organization has made effort to maximize the use of e-mail marketing. They often change the e-mail marketing message, update the content of the website and constantly update software and hardware. This will keep vibrant its communication and offer clients something to come back to and perhaps motivate them to refer others to the company. There was a two hundred percent increase in the revenue earned by globacom when revenue earned before the company started using ICT is compared with revenue earned in 2009. This may be attributed to greater reach and efficiency due to ICT usage.


5.2 Conclusions

ICT is a very viable tool in marketing communication. Effective and proper use of this tool has become very vital for an organization to gain competitive advantage. Any organization that ignores this fact is handing the edge over to its competitors.

The survey results and analysis show that the company under study use ICT in marketing communication. The company makes every effort to maximize the use of this channel as they communicate with clients and potential clients. Unfortunately the full potential of this medium is not beinn exploited. The website is very light. Globacom is a telecom company involved in manufacture of telecom products and furniture. The company could use all their products to create heavy graphics that woul showcase the products in very advantageous points and add a spin to the site making it the destination of choice.

The site however ranks very high on search engines. The organization performs web analytics and incorporates their finding into their text. This brings up the site every time the words are typed into search engines. In every endeavour of man there are acceptable and unacceptable practices. In the case of using ICT in marketing communication that law is to respect the privacy of others. But, in this case that law has somewhat been violated. Copying e- mail of clients violates their privacy.


5.3 Recommendation For Future Practice

ICT in marketing must be brought to a new paradigm, where the tools of ICT will be used maximally, effectively and efficiently to gain business value and competitive advantage. Countries already advanced in ICT usage have been able to achieve this and companies in emerging economies like Nigeria can also aspire to achieve the same. Globacom is using ICT in various ways in marketing communication. But, there are more ways to apply it and best practices to be adhered to.

It is recommended that Globacom build a website that is heavier in pictures and graphics while not reducing the text. This will show the products off better and be interesting enough to keep bringing traffic to the website.

The method the company used to build a mailing list is not the right method. The company must protect itself from spam complaints by ensuring that only consented clients are sent email. They should advertise their website and encourage people to sign up to receive e-mail from the company.

However, when all is considered globacom is using ICT tools in marketing communication and it does appear that its use is impacting positively on its performance.


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