1.1 Introduction
MTN Advertisement is seen as a potent vehicle for achieving acceptance of desirable and useful concepts or ideas where the profit motive is minimal or missing altogether. MTN Advertising has become an integral part of our social and economic system; it is indeed a powerful communication tool of business to most firms and organizations for them to be able to reach their target market across the globe. In other words, advertising can be seen as a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideals, or services (Okorie, 2009). Today, the telecommunication industry in Nigeria has become a very competitive market with various service providers; thus, there is a need for the use of advertising to create awareness and to promote the sales of that particular product or service.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
The development of telecommunication in Nigeria began in 1886 when a cable connection was established between Lagos and the colonial office in London by 1893, government office in Lagos were provided with telephone service, which was later extended to Ilorin and Jebbu in the hinterland. A slow but steady process of development in the years that followed led to the gradual formation of the nucleus of a national telecommunication network.
In 1923, the first commercial trunk telephone service between Itu and Calabar was established. Between 1946 and 1952, a Three-Channel – Line Carrier system was commissioned between Lagos and Ibadan and was extended to Oshogbo, Kaduna, Kano, Benin, and Enugu; thus connecting the colonial office in London with Lagos and the commercial centre in the country with local authority offices. In 1960s the network system was expanded to meet growing needs of the fledging commercial and industrial communication network system.
In the 1980s, the telecommunication arm of the department of Post and Telecommunication was merged with the Nigerian External Telecommunication (NET) and in 1985 the Nigerian Telecommunication Ltd (NITEL), a Limited Liability Company that administers both internal and external telecommunication services in Nigeria was formed.
Currently, NITEL offers the following services, telephony, telex and telex delivery services, telegraph and registered telegraphic addresses, payphones, and public coin telephones, transmission and reception of real-time TV for network services etc, Nigeria embraced digital Technology since the 1980 with the ratio of Digital Switches and Transmission System (Radio and Optic Fibre), into the network since the beginning of the 90s, mobile Telephone Services offered by NITEL. NITEL now has an X 25 and X 40 Switching facilities in its network.
Today, however, to a population of one hundred million (100m) the figure of more than half a million on telephone lines in the country means in effect, a very low telephone density ratio, though the country has the largest number of telephones in any one country in Africa.
MTN Entrance into Nigerian Telecommunication Sector
The MTN Group Limited (MTN Group) is a leading provider of communication services offering cellular network access and business solutions, and is listed in South-Africa on the Johannesburge Securities exchange (JSE) under the Industrial Telecommunication Sector launched in 1994, MTN Group is a Multinational Telecommunication provider with its core operations in 21 countries in Africa and the Middle East.
MTN Nigeria began operations in Nigeria on May 16th, 2001. MTN Nigeria was the first GSM Network to make a call following the globally landed Nigerian GSM auction conducted by the Nigerian Communication Commission (NCC).
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Impact of MTN Advertisement on Subscribers.
1.3 Statement of Problems
Investigation revealed that in Nigeria today, consumers are faced with many competiting variables of telecommunication network to choose from. In case of GSM Service providers, we have Airtel, Globacomm, MTN, Starcomm, Zoom, NITEL, Etisalat etc. Meanwhile, advertisements are no longer geared towards sensitizing the public about the usefulness of the product or products so advertised; it is now been used as a tool for propaganda and extortion of the public / consumers. MTN was, in 2009 summoned by the House of Representative in Nigeria to defend itself against claims that it is extorting the Nigerian populace.
Matter of factly, advertisement ensures or does the following; enhances sales, creates awareness about a new product, satisfies the consumers need for quality, educates consumes about how a product can be used, influences consumer’s choices etc.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Impact of MTN Advertisement on Subscribers in Uyo Metropolis. In achieving this aim, the following specific objectives were laid out as follows:
- To find out if the residents of Uyo Metrpolis as exposed to MTN advertisement;
- To find out if MTN advertisement creates awareness about their services in Uyo Metropolis;
- To ascertain whether MTN advertisement generates or increases sales of their products and services in Uyo Metropolis;
- To find out whether customers are influenced by MTN advertisement;
- To find out or ascertain whether MTN advertisement educates subscribers of Uyo Metropolis on the benefits of using their products and how they can use them;
- To find out from the resident which Mobile service they would recommend for a close friend; and
- To find out whether MTN advertisement influences subscribers in Uyo Metropolis preference for their product over other telecommunication network.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Are the respondents of Uyo Metropolis aware of MTN advertisement?
- Does MTN advertisement generate sales of their products and services among subscribers in Uyo Metropolis?
- Are subscribers in Uyo Metropolis influence by MTN advertisement?
- Does MTN advertisement educate subscribers on the benefits of their products and services and how to use them?
- Has MTN advertisement impacted its subscribers in Uyo Metropolis?
- How has MTN advertisement impacted subscribers’ preference for their product and services over other telecommunication network in Uyo Metropolis?
- Which of the media enhances the impact of MTN advertisement on Uyo Metropolis?
- Which mobile Services would subscribers recommend for prospective customers?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant relationship between advert exposure and consumers’ preference for MTN services among subscribers.
- H1: There is a significant relationship between advert exposure and consumers’ preference for MTN services among subscribers.
Hypothesis Two
- H0: MTN advertisement have not impacted subscribers’ preference for their product and services over other telecommunication network in Uyo Metropolis
- H1: MTN advertisement has impacted subscribers’ preference for their product and services over other telecommunication network in Uyo Metropolis
1.7 Significance of Study
A research effort of this magnitude is expected to serve as a reference material to both students and researchers who may embark on a research project in this area in future. It will add to the existing stock of knowledge in the related area or subject of interest.
Also, the work will also be of great benefit to advertising agencies and advertisers, other GSM service providers, media organizations, and the general public’s at large.
This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.8 Scope of Study
The scope of the research is focused on the Impact of MTN Advertisement on Subscribers using Uyo Metropolis in Akwa Ibom State as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Impact: This refers to the effect that MTN has on the subscribers in Uyo Metropolis.
MTN: Mobile Telecommunication Network. MTN is one of the major wireless telephone operators in Nigeria.
Advertisement: It is an appeal that contains some aesthetic information concerning a product or service.
Subscribers: these are the people in Uyo Metropolis who pay to MTN in order to receive their services
Advertising: advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor.
