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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 objective for which the study was carried out are to. Find out how effective the advertising strategy of MTN, GSM is and how adverting has affected the company. To measure the impact of the advertising programmes on the performance of MTN GSM. 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. Based on the findings made the following were recommended. There should be inter-connectivity on adequate access. Customers could call to one another i.e. user of Econet GSM can call users of Nitel. There should be adequate switching system and transmission links, this will improve the service rendered by these operators. First and foremost serious effort should be made by operators of Econet  GSM in Enugu metropolis in using promotion activities. In advertising on radio and local newspapers in English and Ibo should be used in creating customers awareness. The researcher wants the coverage of MTN GSM facilities to extend to more areas. Particularly in township and villages to engender wider communication in the country. The researcher recommends immediate deployment of Nitel GSM and the licensing of more operators. This is to encourage more competition as a way of achieving price reduction, service quality and wide coverage of facility. The researcher also recommends that the capacity of Nitel should be upgraded ungentle to enable it support efficient service of Econet GSM in Nigeria. Finally the operators must improve on service quality and bring down their price or risk customer’s negative reaction or protest.

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) 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) 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) 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) 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) observed that this achieved through its ability to create drama suspense, colour and emotion.

Edoga and Ani (2000) 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. 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   OBJECTIVES 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?

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