ABSTRACT

This study is to identify the impact of Advertising on the marketing Global system for mobile (G.S.M) Communication in Enugu a case study of MTN Nigeria Communication Limited. The main purpose of this research among others is to know the important and benefit of advertising to the general public such as those in the top position both federal, state and local government level.  Also to the business class they can now obtain and give information to one another any time they want it. The successful implementation of the advertising will help to bridge the gap between the rich and the poor. It also intends to check the influences of advertising on purchasing habit of subscribers. To find out methods of budget allocation to advertising by MTN Nigeria Communication Limited and the effects of such influences, if any on sales in MTN Nigeria Communication Limited. The major and promotion types adopted by MTN Advert enable companies to tell widespread but selected audience about their products or service in the word of their own choosing when and where they believe their subscribers are most likely to see them. The simple act of  advertising make an important statement about a company, that it has a product of services of which is provided that meets a particular need which it backs publicity with its name and reputation and that would be of vale to the subscriber and is prepared to compete for it.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

For proper elucidation and understanding of this discourse, it is of paramount importance to trace the history/origin of the research topic in accordance with the saying “that anything, man or nation without a history is equally without a future” can be most applicable in this write up or research. Having established this promise I shall proceed to trace the history of advertising globally and zero it to Nigeria, industrialism but an ancient practices that goes back to the very beginning of recorded history. According to Okoro N.(2000) The diggings of archaeologist in the countries rimming the Mediterranean  sea have turned up evidence of the use of signs to announce various events and offers.  The Romans painted walls to announce forthcoming gladiatorial contests and Phoenicians painted morals on prominent rocks along trade routes extolling the wares they sold, a precursor of modern outdoor advertising.” In Pompeii, a wall has been found praising a  politician and asking for the people’s votes as  far back as 1317.  another early  form of advertising was the use of town criers.  In Greece during the Golden Age, town criers were paid to circulate  through the streets of Antheris announcing the sales of stores, Cattle and other goods as well as making public announcements.  An early singing commercials used in ancient Author went as follows” for eyes that shining for  checks  like the dawn/beauty that last after  girlhood  is  gone for prices in reason, the  woman who knows will buy who knows will buy  her cosmetic of Aschypots.”  The third early form of advertising was the mark placed by artisans on their individuals goods, such as pottery. As the reputation of particular artisan spread through word of mouth, buyers began to look for his distinctive mark, just as trademarks and brand-names are used today. They would pay a premium for example. Osnabruck linens, as production became more centralized and markets become more distant the mark of identifying name took on more significance. The turning point in the history of advertising was in 1450, the year Goutenberg invented the  printing press. No longer did advertisers have to produce extra copies of sign by hand.  The first known English language advertising appeared in 1478, in 1622, an important new medium gave advertising a substantial forward push, namely the first English newspaper the weekly New. Later Joseph Addision and Richard Steele published the Tatler and became devotees of advertising, Addison in duded this advice to copy writers. The art of writing advertisement is the founding method to catch the reader.  Advertising had its greatest growth in the United States rathan then England, Benjamin Franlink is often called the father of America’s cardle of advertising first, America industry led in the mechanization of production, which created surpluses and the need to convince consumers to buy more. Furthermore, the development of fine network of waterways, highways and roads made the transportation of goods and advertising media to the country side feasible.  The establishment of compulsory public education in 1813 led to the decline of illiteracy and the growth of newspaper and magazine. The invention of radio and later television created two more amazing media for the dissemination of advertising from then started modern advertising.

THE DEVELOPMENT OF MODERN ADVERTISING IN NIGERIA

Modern advertising started in Nigeria through already existed before the advent of European advertisement. Though this traditional forms of advertising was crude, unsophisticated and the audience are limited in number, still sellers make appropriate use of them in making their goods and services known. However, the first advertising in made its debut in Nigeria with the first Nigeria Newspaper, namely Iwe Irohin published at Abeokuta by Rev Henry Townsend in 1859. The advert was mainly on the announcement of births, weeding, deaths, vacancies of job seekers, church activities etc. Advertising in cinema came into existence in 1903. Radio and Television advertising came as a result of the British Broadcasting Corporation (BBC) i.e for the radio, through  the empire service for West Africa  which was established in 1932, while in 1959 television  advertising  came into existence as a result of the establishment of television broadcasting in Ibadan.

Today in Africa and Nigeria, modern media of communication has been found to be an indispensable tool of modernization and development of advertising. Having layed the foundation of advertising, the world over and Nigeria in particular, It shall suffice now to delve into MTN

GSM

There is no doubt that communications are a major driver for any economy. Emerging trends in socioeconomic growth show a high premium being placed on Information and Communication Technologies (ICT) by homes, organisations, and nations. Improved Information Technologies (IT), especially as far as digital computer systems are concerned, are becoming more affordable and accessible to an increasing number of people. Communication technologies, coupled with the advances in information technologies, are innovations which allow voice and data to be communicated anywhere in the world at affordable cost thus enabling a significant number of people, rather than limiting its accessibility to small minority of people. ICT have also permitted a range of technological and institutional developments. These developments represent a major break with the past that is producing significant qualitative changes in what is being produced, where, how and by whom. The changes are cumulative and incremental. There are already signs that ICT are beginning to transform systems of production and the relationships between firms and States in the international economy. These changes are accelerating because technological advances continue to bring about reductions in the costs of ICT. As cost reduces, the range of possible applications expands into new areas. One of the new areas or innovations brought about by ICT is the Global System for Mobile communication (GSM).

The Nature of GSM in Nigeria

The world is fast becoming a global village and a necessary tool for this process is communication of which telecommunication is a key player. The quantum development in the telecommunications industry all over the world is very rapid as one innovation replaces another in a matter of weeks. A major breakthrough is the wireless telephone system which comes in either fixed wireless telephone lines or the Global System of Mobile Communications (GSM). GSM is a technology widely appreciated and accepted by Nigerians as it has helped in various aspects of the economy. Mobile phones are more than just a fixed line alternative; however they are now recognised that they are also ‘mobile’. This ‘communications on the move’ means people can engage in development activities that previously would not have been possible. For example, mobile phones enable State surveillance and also allow citizens to monitor the State. GSM is multi-functional with many opportunities, by means of which many of the world’s poor communities have access not just to a phone but to a camera, calculator, audio player, video player, timepiece and good enough a platform for email and Web use. GSM is also cross-functional by bringing together services that cut across existing boundaries and present governments with new platforms for taking decisions. GSM technology is one of the leading digital cellular systems. GSM uses narrowband TDMA (Time Division Multiple Access), which allows eight simultaneous calls on the same radio frequency. It is considered as the most advanced digital cellular technology. GSM networks are leaders in many typical digital services including the Short Message Service (SMS), Over The Air (OTA) configuration and GSM positioning. The SIM card (Subscriber Identification Module) is also a unique and essential component of GSM phones. Technically, GSM was built based on the TDMA protocol

ABOUT MTN NIGERINA

MTN Nigeria Communications Limited is part of the MTN Group, Africa’s leading mobile telephony Company. Incorporated in Nigeria on November 8, 2000 as a private company, it secured licence to operate digital (Global system for mobile telecommunications, GSM)     telephony on February 9, 2001, from the Nigerian Communications Commission. On May 16, 2001, MTN emerged as the first to make a successful call on its GSM network in the new dispensation.  Thereafter, the company launched full commercial operation beginning with Lagos, Abuja and Port Harcourt.  The company now provides coverage to 85 cities and well over 5,000 communities and villages, spanning every gev-political zone and 31 of Nigeria’s 36 states.  MTN attained the one million active subscriber mark on February 10, 2003, and as at December 31, 2003, had 1,650,000 active subscribers on its net work. The company subsists on the core brand valves of leadership, integrity, innovation, relationships and a “can do “ attitude, a belief that nothing  is  impossible.

On January 20, 2003, MTN commissioned the first phase of its digital micro-loade transmission backbone YelloBahn Spans 3,400 kilometers and traverses over 120 cities, villages and communities. Y’elloBahn is Africa’s most extensive transmission infrastructure and has significantly helped to enhance call quality on MTN’s network, while coverage has been extended to more than 90 major towns and a total over 5,000 villages and communities across Nigeria. The second phase of Y’ello Bahn is currently ongoing and will span another 4,500 kilometers.

On February 10, 2003 MTN recorded one million active subscribers on its network, making it the largest telecommunication network in Nigeria. The company recorded one million, six hundred and fifty thousand active subscribers on its network as at December 31, 2004.  had a total of 21 mobile switching centers and over 940 radio base stations across the  country, several more are in the process of being installed.

HISTORY IN ENUGU

MTN has a strong presence in Enugu with a friendship center located at Zik Avenue in the Uwani area. In December 2001 MTN became the first GSM provider to extend service to Eastern Nigeria, when it landed service in Owerri, Enugu, Aba, Onitsha  and Asaba in Delta state. It may be recalled that Enugu was the home of Nigerin’s first mobile telephony micro credit scheme, known as the Ogene Ladies Community Phone Programme. The project was launched by MTN in conjunction with growing Business foundation, a non-governmental organization disbursed GSM lines. Handsets recharge and booster cards to women in the Enugu Community to enable them operate pay phones. MTN in Enugu has other subsidiary office at Benjack Group, Bisalla Road, popularly known as Ebe Ano Housing Estate.

MTN Nigeria is 76.44% owned by Mobile Telephone Networks International Limited, 20. 56% owned  by Nigerian partners with the balance of 3% shareholding residing with the international Finance Corporation, the infrastructure investment arm of the World Bank.

1.2   STATEMENT OF THE PROBLEM

Many customers do not patronize a company’s product when they are ignorant of its existence. In addition, customers find it difficult making a repeated purchases on a product whose advertisement is not strong nor motivating. Consequent upon the foregoing, the problem inherent in this research work is to know the impact of advertising on the marketing of Global system for mobile (GSM) Communication of MTN here in Enugu.

1.3   OBJECTIVE OF THE STUDY

Primarily, the ultimate purpose underlying all advertisement is to increase awareness and Spur increased demand by customers for any range or type of product & service involved.  Specifically, this study intends to:

a.   To know whether advertisement attracts new customer for MTN.

b.   To find out the impact or effect of advert messages of MTN on the public.

c.   To find out whether advertising is expensive or not.

1.4   RESEARCH HYPOTHESES

HYPOTHESES ONE

Ho: The use of advertising has been the most effective and efficient way of advertising MTN product.

Hi: The use of advertising is not the most effective and efficient way of advertising MTN product.

HYPOTHESES TWO

Ho: The use of advertising by MTN through GSM leads to increased profitability in carrying out its marketing activities.

Hi: The use of advertising by MTN through GSM does not lead to increased profitability in carrying out its marketing activities.

1.5   SIGNIFICANCE OF THE STUDY

Without mincing words, the level of advertising embarked upon by MTN Nigeria in the running of their product and services calls for researching, to know the impact on their customers and the sales of the product and to serve as a guide to MTN Company in its advertisement saga or pursuit. It will add to the existing literature already in advertising a product or services. It will provide an in-depth knowledge to researchers and readers alike.

1.6 SCOPE AND LIMITATION OF THE STUDY

The topic understudy is relatively new in the Nigerian context in terms of previously recorded fact and statistics that could have provided secondary data. It is cost intensive to cover all the people or area in Enugu metropolis. For thorough research, only a restricted area was covered because of money. Illiteracy also formed a barrier hence not everybody given a questionnaire were able to fill t

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