THE IMPACT OF ADVERTISING AND SALES PROMOTION IN A SERVICE BASED ORGANISATION (CASE STUDY OF MTN NIGERIA LTD)

THE IMPACT OF ADVERTISING AND SALES PROMOTION IN A SERVICE BASED ORGANISATION (CASE STUDY OF MTN NIGERIA LTD)

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CHAPTER ONE

1.0                                                                      Introduction

1.1      Background of the Study

Advertising and sales promotion are becoming very regular in our world today especially with the downturn in the economy and the consequent decimation of consumers purchasing power. In any production setting, it is believed that the production process is not complete until the goods and services get to the final consumers. Marketing as a concept involves the integration of advertising and sales promotion strategies which must be effectively carried out during and after the production of the products or services towards the effective and efficient satisfaction of consumer. Advertisements and commercials are available now in any media you turn to, on every newspaper, magazines, article, billboard adverts are everywhere especially in the urban places. There is always one sales promotion or the other going on at any point in time.

Advertising has been defined by the Advertising Practitioners Council of Nigeria (APCON) as a form of communication through


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media, about products, services or ideas paid for by an identified sponsor.

The American Marketing Association and research professional defined Advertising as “any paid form of non –personal presentation and promotion of ideas, goods and services by an identified sponsor’.

From Communication perspective, advertising has been defined as “a form of paid mass communication intended to persuade prospects to prefer a brand or type of certain goods, services or ideas to all others or others in the same category, and thus to move and induce them to patronize the goods or services or adopt the ideas”. The communication oriented definition has been further broken down for practical purposes by its author “saying the right things about the right product, service, or idea to the right people, in the right way, at the right time and place.

The time or space, used for the advertisement is paid for by the advertiser. This is what separates advertising from publicity. A lot of people are exposed to the message at the same time, unlike in personal selling. The message of the advertisement is about a product, idea or service. The advertiser is always identified in an


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advertisement.    This    makes     advertisement    different    from

propaganda.

Sales promotion on the hand is any activity engaged in by a company to create a buying desire and an immediate reaction from customers, middlemen or company’s sales force. It comes in the form of raffle, giving out samples, and other branded items. It is aimed at creating a buying desire, rewarding loyal customers or attracting attention to product improvement.

Advertising and sales promotions are part of the marketing mix called promotion. They complement each other. Advertisement spreads the word about a particular promotion. Sales promotion on the other hand allows the consumers to test the product, and thus the claims contained in the advertisement. It is used to enforce brand loyalty and reward loyal consumers and sales force.

1.2  Statement of Research Problems

A lot of money and time are being spent by companies and organization on and for advertising and sales promotion. It is on record that the Mobile Telecommunication Network, MTN for short,


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from its introduction into Nigeria at the dawn of the Millennium till date, has doled out huge hundreds of millions of naira solely for the purpose of advertising and sales promotion of their Telecommunication Networks.

Advertising agencies and strategies are growing by leaps and bound. MTN, through many advertising innovations, is standing firmer among all other Nigeria Telecommunication Network providers before the subscribers. Besides MTN field works for sales promotions, the network provider advertises and promotes its business through Media adverts, Sponsorship of entertainment industries like “football”, “Big Brother Africa shows”, “Who Wants to be a Millionaire”, “Development of Infrastructures in collaboration with the governments and even award of Scholarships.

Lo and behold, many companies and organization are with ineffective and inefficient advertising departments either deficient in funds, strategies or skills or both. It is a big concern that even customers and subscribers of rich advertising companies and organizations such as MTN, GLO, PHCN, UNICEF and so on complain that they are equally lacking in advertising strategies,


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skills and ideas. WHY? How have these advertising deficiencies affected production, promotions, acceptability, marketability and general growth and successes of these companies and organizations? This is the statement of Research Problems aforementioned.

1.3       Objectives of the Study

A good number of research and investigation are consistently undertaken and hugely sponsored by MTN and even other companies and organization alike on the effectiveness of advertising and sales promotion strategies for the purpose of improving sales and services delivery.

MTN, through the outlet of their customer care service system (CCSS), persistently sample subscribers’ opinions, difficulties, ideas, complaints and suggestions for improved sales and services. This Telecommunication have equally employed the services of thousands for the singular purpose of field works through questionnaires and interactive sessions with customers and subscribers. With MTN’s “180 dialed” customers and


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subscribers are availed of an opportunity to speak directly with their providers.

Hence, the objectives of the study are worthy of enumeration as follows:

a)   To ascertain the inherent effects of advertising and sales promotions on MTN’s customer and subscribers’ decision on patronage.

b)  To examine the contributions of MTN’s advertising and sales promotion strategies in relation to other Network providers in Nigeria.

c)   To discover the effects of advertising and sales promotions in the general growth and improvement of MTN’s market shares in the Tele communication world.

d)  To determine potential effects of advertising and promotions deficiencies on MTN’s sales and service delivery to its customers and subscribers nationwide.

e)   To uncover the consequences of employment and engagement of incompetent, inefficient and ill-skilled agents and workers in MTN’s advertising and sales promotion departments.


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f)    To ascertain the significance in the relationship between MTN’s advertising and sales promotion expenditures and sales/ service delivery turnover.

1.4  Research Questions

In order to provide the required empirical data for the study, the following research questions shall be considered to validate recommendations.

1.   How does advertisement and sales promotion strategies affect MTN’s customers’ and subscribers’ decision on patronage?

2.   What contribution does MTN advertising and Sales Promotion strategies in relation to other Network providers in Nigeria?

3.   What effect does advertising and sales promotions have in the general growth and improvement of MTN’s market share in the Telecommunication world?

4.   What potential effect does advertising and sales promotions have on MTN’s sales and service delivery to its customers and subscribers nationwide?


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5.   What are the consequences of employing and engaging incompetent, inefficient and ill-skilled agents and workers in MTN’s advertising and sales promotion department?

6.   Is there any significance in the relationship between MTN’s advertising/sales promotion expenditure and sales/service delivery turnovers?

1.5  Research Hypotheses

The study will test the validity of the following hypothesis.

Hypothesis 1

Ho:   Advertising and sales promotion strategies does not affect MTN’s customers and subscribers decision making on patronage.

Hi:   Advertising and sales promotion affects MTN’s customers and subscribers decision making on patronage.

Hypothesis 2

Ho:   Advertising and sales promotion strategies has no effect on the MTN’s market share in the Telecommunication world?


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Hi:   Advertising and sales promotion strategies has effect on the MTN’s market share in the Telecommunication world?

Hypothesis 3

Ho: There is a no significant relationship between MTN’s


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