The Impact Of TV Advertising On The Marketing Of GSM Service

Project and Seminar Material for Marketing

The Impact Of TV Advertising On The Marketing Of GSM Service


Abstract


This study was meant to examine the impact of TV. Advertising on the marketing of GSM services in Enugu Metropolis (A case study of MTN).The population of the study includes operators/customers, GSM dealers and management and relevant staff of the case organization Top man formular was used in determining the sample size of customer while census was used for the management/relevant staff of MTN Company.

Questionnaires were administrated to the ten zones within Enugu metropolis, data collected were analyzed from the data analyzed, the researcher made the following finding. Operating of MTN GSM phones are yet to appreciate the importance of designing an optional combination of advertising in their operations. The customers interviewed shows that it is a big headache putting a call across to Nitel line from MTN phones or Econet phones as it was equally as difficult either calling Econet from MTN.

The promotional strategies adopted by these operation of GSM (ECONET, MTN and NITEL) Impact positively on their profit and increases the customers patronages but it was equally discovered that customers are not satisfied with the quality of service rendered. The major players on the ground now in Enugu metropolis is MTN, followed by NITEL, ECONET is said to start for operations in Enugu Metropolis. Despite the high level of product awareness attained in the promotion. It was discovered that the product is not readily available to in some parts. Particularly in the remote part of Enugu metropolis. Most of the respondent still believe that price/charge of the product is commensurate with the quality. The practice operators of automatically sending calls to vice mail mode and deducting money whether the caller want that service or not is seen as exploitative and lack transparency. The caller should only be charge after excising the option of recording is message and sending same.

Findings obtained from the responses to the research questions established that subscribers are preponderantly exposed to the two networks advertising messages and that while advertising has a great influence on subscribers choice of networks, a host of other influence factors exist such as wide network coverage area, free midnight calls/lower tariff, promos such as recharge and win, free airtime, etc. among others. These resulted in the recommendations for practitioners to always look deeper for such other influence factors which blend with advertising to achieve maximum influence.


Chapter One


Introduction

1.1 Background of the Study

This is the study for a company to execs above others in the competitive market; such a company must surely value the importance of advertising.

Onyebuagu (1995:365) is of the opinion that the immediate purpose of advertising is not physically to bring buyers and seller together but to communicate sales-motivating information, ideas and suggestions to particular target prospects or customers, so as to increase the probability to make sales. This explains why same companies investing amount of money in advertising, to ensure that their products are brought to the knowledge off the consumers who will reciprocate by patronizing such products. Irrespective of a product, what advertisement to compliment the efforts of their promotional tools such products may not sell, where it does, its continuing is in doubt.

Advertising to some extent is the most visible element of promotional mix which at the same time attracts much of controversial system to its impact on consumers buying decision. Among the firms promotional decision are media selection and scheduling decision these decision involves determining the best medium of means to deliver and advertising message to the prospective consumers or customers. According to Ebue’s media selection (2000:100) is the means by which the advertiser reach their target audience with advertising message one of the major selection is having an in death knowledge and understanding of the media characteristics which is the stand point for selecting a given medium from a whole lot of available media. These media are news-paper, magazines, radio, direct mail, out door and television. Television advertising is an important medium for creating consumer awareness for goods and services.

In the view of Ebue (2000:103) television is fast becoming an important medium for advertising. It is the faster growing advertising medium. He also pointed out that the unique quality of television led in its ability to combine many of the functions performed individual by other media.

Kolter (2000: 585) added that is has the advantage of combing sight, sound and motion appealing to the sense. It has such limitation as high absolute cost, high Chatter, fleeting exposure, less audience selectivity, sufficient it to say at this point that different media type may reach their frequency and impact capacity. Thus each advertising vehicle or means has its own specific edge over others.

A firms choice of television advertising vehicle or means for achieving its advertising objectives is a function of selecting, the vehicle, ability to reach its specific target audience market its penetration and courage ability. The can be exposed to a message, its scheduling flexibility in terms of lead time, cost which could be relative or absolute, additional climate production quality and life span and the degree of acceptability and cooperation a medium can achieve among advertising intermediates.

Given all these characteristics, a television advertising has an edge over the media through its unique ability of combing vision, audio and motion, reach a large audience at a time with a simple message.

Ebue (2000:103) observed that this achieved through its ability to create drama suspense, colour and emotion.

Edoga and Ani (2000:278) stated that television advertising has the following advantages.

Reaches a large audience combines sight and sound uses picture motion for effect light attention. Appeal to the senses short limitation is high absolute cost perishable message. High clutter.

It is because of the importance of television advertising on the marketing of goods and services that researchers therefore in this study evaluate the impact of television advertising on the marketing of MTN’s GSM service.


1.2 Statement of the Problem

In recent times television advertising has become a veritable promotional medium for firms to achieve their marketing communication objectives, particularly in the marketing of GSM production/service.

At this point, it is obvious that the competition faced by MTN is serving as other competitors are trying to take up part of their market share.

Also many customers complain of not being exposed to the television advertising more so, there is problem in communications since most of the villagers cannot understand the universal English correctly. Consumers also complained that they are not really exposed to television advertising. Most often there would be power failure thus affecting the advert message. Moreover some of these customers cannot afford television more especially those in the remote areas off the state.

Television stations here in Enugu State stars operation late in the evening unlike other television stations in place like Lagos etc. They stairs early enough or even operate till daybreak thus most of the consumers who would have loved to watch television programme were not exposed. It is equally of note that product advertised needs them. There is also competitions in the market, each of these firms in the marketries to out smart others , thus in this project work, researchers identified the problems associated with television advertising on marketing of GSM project/service.


1.3 Objective of the Study

The basic objectives of this study are:-

  1. To determine whether the level of awareness of MTN is a result of television advertising.
  2. To determine the impact of television advertising on the marketing of MTN product/service.
  3. To find out why consumers prefer television advertising to other types of advertising.
  4. To discover why television influence consumers demand of MTN.
  5. To determine whether television advertising MTN leads to increased profit of the company.
  6. To determine practical solution to the problems of television advertisement identified in the research work.

1.4 Research Questions

  1. Does television advertising have a significant impact on customer awareness of MTN’s GSM services/product in Enugu.
  2. Does television advertising has positive effect on the profit of GS M manufactured by MTN.
  3. Does exposure to television advert on MTN influence customers demands of the services/product?
  4. Does television advertising have a negative effect on the consumer and on their purchasing decision?
  5. Does television advertising encourage regular purchase on the part of MTN products/services in Enugu State?
  6. Is television advertising an efficient source of information to the MTN product/service?

1.5 Significance of the Study

The growth in technology in Nigeria has had a great impact on television advertising, that is television advertising has been rapidly on the increase in recent times, indicating its importance on the marketing of MTN’s GSM service.

In view of this fact, this study is very important in ensuring effective and efficient television advertising by MTN. this study will enable advertising with other manufacturers of GSM product/service. The result of the study will enable MTN to review and improve their television advertising on time to tome which might as well help them to increase sales.

The study will equally help others in related industries. Again both the reader and the researchers will gain immensely from the study as the information contained will wider their scope of understanding and knowledge the area of the study.


1.6 Scope of the Study

This research was undertaken to examine the role of television advertising on the marketing of MTN’s GSM services in Enugu metropolis.

However, in the view of the limited resources, time and other constraints, emphasis was placed on MTN’s GSM service/product within Enugu metropolis.


1.7 Limitation of the Study

A research, striving to unearth hitherto unknown realities would have been an exciting and enjoyable exercise, but this turned out to be very rigorous.

The researcher was massively handicapped by lack of textbooks that adequately addressed the topic. Thereby, secondary data were as difficult to obtain as primary data that led into the jungle of the unexpected. The field exercise revealed a lukewarm attitude towards research matters and point to the fact that some Nigerians are less interested in anything that does not involve cash flow. Jocularly or otherwise, some would ask “What’s in it for me?” This required extra explanation and persuasion before questionnaires are accepted for completion.

Time was another area where difficulty was experienced. This is because; a research work of this magnitude was carried out simultaneously with class room work and other personal obligations.


1.8 Definition of Terms

™ Advertising

Advertising herein refers to routine corporate advertising of products and services by organizations to procure patronage.

™ Advertising Campaign

In this research, Advertising Campaign which otherwise is a strategic, highly scheduled, period-specific and intense advertising campaign programme is fused with usual corporate routine advertising as above defined. Therefore both are used interchangeably to mean either.

™ Competitor(s)

In this study competitor(s) is used in a pronoun sense for the GSM networks, that is, MTN, Econet, Globacom, etc.

™ Consumers

This denotes subscribers to or users of the various mobile telecommunications networks.

™ Industry

Herein, industry means the entire commercial activities spanning the telecommunication sphere as a distinct component of the national economy.

™ National Carriers

This is a designation for the national telephone company – NITEL – whose license covers the nation and covers all aspects of telecommunication including landline services provision. Second National Carrier refers to Globacom, which was also equally licensed.

™ Network(s)

This refers to the various telecommunication companies operating GSM services in Nigeria – Globacom, MTN, Zain, etc.

™ NITEL

This means Nigerian Telecommunications Limited – the national telephone company and First National Operator (FNO).

™ Product(s)

This designates the various offerings of the GSM companies such as voice medium, Sim pack and allied services attached thereto, e.g. Internet service,
GPRS, 3G, etc.

™ Telecommunication

Telecommunication in this research exercise refers to telephone and related services thereto – GSM, landlines, intercellular, etc.


Chapter Five


Summary, Conclusion and Recommendations

5.1 Summary

The broad purpose of this research is to affirm whether or otherwise advertising campaigns has influence on consumer behaviour – subscribers to MTN networks. In order to elicit the relevant data the larger end of the research was broken into five questions as objectives of the study.

A survey method using the instrument of a questionnaire was deployed and questions targeted in line with the research objectives.

From the totality of input generated for the background of the study, literature review and data gathered and analysed above, respondents seems to agree in many respects; also disagreeing in others. Contrary to the notion that advertising influences in isolation, the statistics has revealed that advertising cannot do it all alone.

Too, the statistics has shown that influence is secured more through a complex consisting advertising, promotions, capability, integrity, etc. Giving the data that advertising campaigns influence appreciably (Table XII), therefore the notions that it is mere noise agency, non-influential and a waste of money can no longer appeal to objective perspectives.

The synthesized field information also confirms the maxim that no amount of advertising will sell a bad product for long. The army of 173 (57.67%) adversarial responses to advertising mobile phone networks in the backdrop of poor performances is a justification. (Table XIX).

The figures also throw up a high rate of exposure to MTN advertisements. All 294 (98%) of 300 respondents are exposed to the advertisements of the two networks while 228, representing 77.55% are exposed to these advertisements “Daily” through mainly television, radio, billboards, newspapers, etc. in ranking order – an order that confirms previous findings.

The refined data also made glaring the pre-eminent role of promise in advertising as the road to the consumer’s heart. The different elements other than advertising which influenced respondent’s choice of network of subscription (Tables XIV and XVI above) shows that consumers search for information concerning their needs when they have to buy. This study has therefore shown that when an advertising promise aligns with a consumer’s specific needs and desires, purchase takes place.


5.2 Conclusion

This exploration of the realm of interaction between advertising campaigns and consumer behaviour, from the background of the study through data collection, presentation, analysis and interpretation has made several pronouncements in the sphere of marketing communication and consumer behaviour patterns.

Contrary to the presumption that advertising campaigns alone influence consumers, the fact from this scientific inquiry is that advertising campaigns influence consumers but not all by itself.

This investigation has also proved that advertising remains a vibrant fellow in the marketing mix, influencing consumers is a complex of mainly advertising, promotion and other fundamentals. In the telecommunication milieu, these include wide coverage area, quality service and other marketing incentives.

This analysis has also demonstrated that though consumers require help of advertising promises to conduct intelligent buying they are strongly opposed to advertising poor quality products such as poor performing telecommunication networks. Hence the choice of a GSM network is predicated more on other factors than credible advertising as it ought to be.

The work has further proved that advertising in Nigeria, at masses level, is acquiring an odorous reputation for projecting well-known poor network performance. An extreme view describes it as “deceptive” and a “fraud”. This is affirmed by the overwhelming majority who stood against advertising either completely or pending network service improvement.

The facts of this work have also proved consumer behaviour right concerning need-awareness which governs the consumer’s search for satisfaction. For advertising, the potential for influence is strong and positive when advertising tallies with, or is targeted at the identified need or desire of the consumers.


5.3 Recommendations

The end of this research is purely academic. But research generally goes beyond that, into throwing light on both social and physical phenomena as helping with necessary solutions. Given the above and the collection of statistics and data gathered and analysed on the influence of advertising campaigns on consumer behaviour regarding choice of GSM networks, the following recommendations are evident utilities that should be shared for the good of society.

  1. For MTN (the networks studied as advertisers in this work) as well as other operators in the Nigeria mobile telecommunication industry, they should take urgent steps to improve their networks services to the expected standard and quality. This, more than advertisements, will keep the patronage satisfied. When consumers get value for hard earned money, they become happy, immunized and indeed inoculated from brand switch or brand snatch. The initial years of the GSM revolution could be deemed experimental but eight years experience is enough for some countries to naturalize a foreigner or to earn a cap a feather in some villages. The suggestion of urgent remedies is also important as Nigerian advertising faces integrity-challenge for presenting angelic faces of epileptic systems.
  2. For APCON – the regulating authority in the advertising industry! It behooves her to rise to its responsibilities to advertising concerning bad product advertising (the GSM networks in this case). It should regulate out and enforce bad products advertising. In other words, it should take a cue from the Nigerian Communication Commission (NCC) which once banned MTN from advertising until its network met required standard, ban lifted as the researcher got about his inquiry.
  3. For practitioners, promise in advertising campaigns certainly appeals to consumers. Maximum influence is better assured when other influence factors are combined with advertising. In line with McGregor (above), practitioners should take interest in these other influence factors for good result. Agencies must save advertising by not abandoning good old ethics. They should uphold and maintain the traditional product quality verification before advertising or not.
  4. For NCC, it should hold its side by stipulating and stringently enforcing minimum acceptable standards all over the telecommunication industry. The phenomenal growth recorded since 2001 is appreciable but in a shorter time than it has taken the growth could be destroyed if the umpire becomes smog over its regulatory functions. As the researcher carried out this research assignment, complaints are rife that, like some banks, consumers’ credits now got swallowed by industry’s “Bermuda Triangle” in the backdrop of a positive advertising show of such networks.
  5. For the consumer, government protection from operator’s greed evident in the role of the NCC, from advertising agencies hunger for money evident in the function of APCON and perhaps ineffectual Nigerian public opinion. is good. Yet the Nigerian public is overdue a self-generated and self-directed consumer protection mechanism to better serve itself. It is more dependable than otherwise; and
  6. This research is only an academic exercise as indicated earlier. It is mainly theoretical and cannot claim to have exhausted all the theoretical or practical issues in the influence of advertising campaigns on consumer behaviour. Further studies may therefore be necessary to address new challenges in the field as well as it may be necessary to confirm or contradict the findings in this research.

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