CHAPTER ONE

INTRODUCTION

1.1      Background of Study

In the current era of information explosion and the world of media, advertisements play a major role in organizational performance. The advertisements does not only change the way a product is consumed by users but also alter the attitude with which they look at the product. All over the world, advertisements have been used since ages for a wide variety of brands. For over the last two decades, a sharp increase in advertisements per brand can be witnessed. Advertisements have great influence in purchasing decision of customers for particular brands. It is a ubiquitously accepted fact that advertisements can bestow special attributes upon a product or service that it may have lacked otherwise.

The attempt to satisfy the consumer has led Producers and marketers into conducting research by adopting market orientation strategy to business in order to understand human behavior in searching for, selecting, purchasing, using, evaluating and disposing of product and services that will satisfy his needs and wants. Also, the availability of several products and services with different qualities, couple with the existence of multiple producers of similar product and services has led to strong competition among marketers to gain more potential customers and retain the existing ones. When the battle for recognition and acceptance of products and services by marketers arises, advertising play an important role.

There is a possibility that newly introduced products and services will not gain recognition and acceptance because it is unfamiliar to the general public who are expected to buy and use them. Also, the existing products and services could be modified and reformed into something different from what is known to the consumers. So if producers and marketers are to make sales, then consumers must be informed of the existence and availability of these products and services through advertising.

Like other promotional techniques, advertising informs, persuades, and reminds. It also changes consumers' beliefs, attitudes, and behavior towards products or services.

1.2      Statement of the problem

As societies grow, taste and preference of people change which leave producers and marketers with no choice but to think of better ways of satisfying the ever growing needs and aspirations of consumers for better performance of their organization. The consumers' desire or wants for varieties has led many company to diversify into producing different products and services to meet these wants, which further leads to competition among companies. To get consumers ‘attention focused on the products and services of a particular manufacturer, companies resort to using behavior inducing strategies such as personal selling, sales promotion, and the likes.

The Global System for Mobile Telecommunications (GSM) means of communication became widespread in Nigeria for over a decade now. Most of the companies engaging in the provision of the G.S.M mobile services have expanded their network coverage across cities, towns and villages in Nigeria. In Nigeria, there are numbers of mobile operators (GSM companies) such as MTN, Airtel, Etisalat, Glo, etc. all competing to capture the market.

As one of the major players in the Nigeria's telecoms industry with the largest Code Division Multiple Access (CDMA), MTN Nigeria Communications was the first to launch its service across major Nigerian cities, towns and villages in all 36 states of the federation, including the Federal Capital Territory (FCT). Being the leading company in the Nigeria's telecoms industry, MTN also uses advertising to promote its products and services.

Despite all the effort of MTN to reach out to the Nigeria populace, there are indications that not everyone out there that MTN products and services have got to. And for those that have been reached, not all are using the company's products and services. Therefore, this research will look at the impact of advertisement on organizational performance.

1.3      Objectives of the study

The general objective of the study is to assess the impact of advertisement on MTN Nigeria organizational performance.

    The specific objectives are:

1.     To establish the relationship between advertisement and MTN Nigeria organizational performance.

2.     To examine the forms of advertisement used in MTN Nigeria for their organizational performance.

1.4    Research questions

        1. How does advertisement impact organizational performance?

        2. Does the relationship between advertisement and MTN Nigeria lead to organizational performance?

3.     Does the form of advertisement used in MTN Nigeria impact organizational performance?

1.5   Research hypotheses

To achieve the objective of the study and given the above therefore, the following research hypothesis are formulated:

Ho1:   Advertisement does not significantly impact organizational performance.

Ho2: There is no positive significant relationship between advertising and MTN Nigeria                        organizational performance.

Ho3: There no benefit in various form of advertisement employed by the organization.

1.6   Significance of the study

The study will help firms understand the importance of advertising. It will also enable them structure their adverts and brands to make them more appealing in order to improve sales and lead to better performance. As this study gives a clear insight into how advertisement can influence consumer behavior, many firms will be encouraged into using adverts to market their products. The findings and recommendations of this study will go a long way in helping organization to adopt good advertising strategies, and appealing brand designs to help get more consumers for their products and services.

1.7   Scope of the study

This is the study of the impact of advertisement on MTN Nigeria organizational performance. The study covered advertisement as independent variable while organizational performance as a dependent variable.

The study will center on the staffs of MTN Nigeria Communications Limited in Kaduna metropolis as a focal point. Therefore, the study will not in any way dwell into issues concerning other companies, their customers, and the country in general.

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