THE IMPACT OF TV ADVERTISING ON THE MARKETING OF GSM SERVICE

 

ABSTRACT

The goal of this study was to determine how TV advertising affected the sale of GSM services in Enugu Metropolis (A case study of MTN). The study’s goals were to achieve these goals.

Learn how effective MTN, GSM’s advertising approach is and how advertising has impacted the business to assess how the advertising programs have affected MTN GSM’s performance.
Operators/customers, GSM dealers, management, and pertinent people from the case organization make up the study’s population. For the management and other relevant staff of the MTN Company, a census was employed, while the top man formula was used to determine the sample size of customers.

The ten zones in the Enugu metropolitan were administered questionnaires, and the information gathered was examined using.

MTN GSM phone operations have not yet realized how important it is to include optional advertising in their operations.

According to the users surveyed, dialing a Nitel line from an Econet or MTN phone is very difficult, and the reverse is also true when calling Econet from an MTN phone.

Although the marketing tactics used by these GSM service providers (Econet, Mtn, and NiTEL) have a favorable effect on their profits and increase user spending, it has also been found that customers are dissatisfied with the level of service.

MTN is now the main operator in Enugu Metropolis, followed by NITEL, and ECONET is rumored to begin operations there.

Notwithstanding the substantial increase in product awareness brought about by the promotion. It was found that some regions do not have easy access to the product. especially in the outlying area of the city of Enugu.

The majority of respondents continue to think that a product’s cost should be in line with its quality.

It is considered exploitative and lacking in transparency for operators to automatically transfer calls to voice mail mode and deduct money whether the caller wants that service or not. The caller shouldn’t be charged until the option to record and send a message has been removed.

The following was advised based on the findings.

1. There should be connectivity and sufficient access. Clients could make calls to one another, i.e., Econet GSM users could call Nitel users. Transmission lines and switching systems must be sufficient; doing so will enhance the quality of the service provided by these operators.
2. Operators of Econet GSM in the Enugu city should put substantial effort into utilising promotional activities. English and Ibo should be used in radio and local newspaper advertising to raise customer awareness.
3. The researcher wants MTN GSM facilities to provide coverage in more places. specifically in townships and villages to promote wider contact throughout the nation.

4. The researcher suggests that more operators be granted licenses and that Nitel GSM be implemented right away. This is done to promote increased competition as a means of reducing costs, improving service, and expanding facility coverage.
5. The study also suggests that Nitel’s capacity be increased to allow it to handle Econet GSM service in Nigeria effectively.
6. Finally, in order to avoid negative feedback or protests from customers, operators must raise service standards and lower prices.

 

CHAPTER ONE

 

INTRODUCTION

 

1.1   BACKGROUND OF THE STUDY

1.1 HISTORY OF THE STUDY

In order for a business to succeed above its rivals in a cutthroat market, it must unquestionably recognize the worth of advertising.

According to Onyebuagu (1995:365), the immediate goal of advertising is not to physically bring buyers and sellers together but rather to share information, ideas, and suggestions that will encourage sales with specific target prospects or customers in order to increase the likelihood of closing deals. This explains why the same businesses invest a significant sum of money in advertising to make sure that consumers are aware of their goods and will subsequently purchase them. Regardless of a product, what advertising should be used to support the efforts of their marketing materials since these products might not sell, where it does, its continuing is in doubt.

The most apparent component of the promotional mix, advertising, is also the one that causes the most controversy due to its influence on consumer purchasing behavior. Media scheduling and selection decisions are made as part of a company’s promotional strategy. These decisions involve deciding the best way to reach potential customers or consumers with an advertisement. According to Ebue’s media selection (2000:100), this is how advertisers can communicate with their target demographic. One of the most important criteria for choosing a specific medium from the vast array of possible media is having a thorough knowledge and grasp of its properties. Newspapers, magazines, radio, direct mail, outdoor advertising, 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) said that this was accomplished by the drama’s capacity to evoke tension, color, and passion.

According to Edoga and Ani (2000:278), television advertising provides the following benefits.

reaches a big audience, blends sound and sight, and uses motion in the film to create effect. Short-term appeal to the senses has a high absolute cost and is perishable. a lot of clutter.

Researchers in this study examine the effect of television advertising on the marketing of MTN’s GSM service because of the significance of television advertising on the marketing of goods and services.

1.2   STATEMENT OF THE PROBLEM

Recently, especially in the marketing of GSM production/service, television advertising has developed into a true promotional channel for businesses to meet their marketing communication goals. It is clear at this time that MTN is competing against other companies who are vying for some of their market share.

More so than the lack of exposure to television advertising, communication issues arise because the majority of villages struggle to grasp standard English. Customers also expressed dissatisfaction over the little of exposure they receive to television advertising. The advertisement message would most frequently be affected by a power outage. However, some of these customers—particularly those who live in distant parts of the state—cannot afford television.

In contrast to other places like Lagos, etc., television stations in Enugu State start broadcasting late in the evening. Most customers who would have loved to watch television programs were not exposed since they start early enough or even work until dawn. It is also important to note that the advertised product requires them. Each of these businesses is competing with the others in the market, hence in this project work, researchers recognized the issues related to television advertising on marketing of GSM projects/services.

1.3   OBJECTIVE OF THE STUDY

The primary goals of this study are:

1. To ascertain whether television advertising is to blame for MTN’s degree of awareness.
2. To assess the effect of television advertising on the promotion of MTN goods and services.
3. To determine why viewers favor television advertising over other forms of advertising.
4. To determine how television affects consumers’ demand for MTN.
5. To ascertain whether MTN’s television advertising results in higher corporate profits.
6. To find a workable solution to the issues with television advertising that the research work indicated.

1.4    RESEARCH QUESTIONS

1. Does Enugu consumer knowledge of MTN’s GSM services/products have a substantial impact from television advertising?
2. Can television advertising increase the profitability of GS M produced by MTN?
3. Does viewing MTN television advertisements affect consumers’ requests for the services or products?
4. Does watching television negatively influence the consumer’s decision to buy something?
5. Does MTN product/service regular purchase in Enugu State result from television advertising?
6. Does television advertising provide reliable information about MTN’s goods and services?

1.5    SIGNIFICANCE OF THE STUDY

Television advertising has had a significant increase recently, highlighting its relevance in the marketing of MTN’s GSM service, as a result of the country’s rapid technological development.

This study is crucial in ensuring that MTN’s television advertising is successful and efficient in light of this fact. This study will make it possible to advertise with other GSM product/service manufacturers. The study’s findings will allow MTN to examine and improve their television advertising in due course, which may also aid in growing their customer base.

Those working in relevant fields will benefit equally from the study. Once more, the study will be extremely beneficial to both readers and academics because the data it contains will broaden their horizons  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.

1.8   DEFINITION OF TERMS

I. Promotion: According to Ebue (2000), promotion is the process of informing and persuading consumers to accept, resell, promote, or use a product, service, idea, or institution.

ii. Marketing: According to Kotler (2000), this is a human activity intended to satiate needs and desires through an exchange process.

Respondent (Ozor and Odo, 2000) is the subject who provides responses to research questions.

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