1.0 Introduction
1.1 Overview of the Study
The Nigerian telecommunication industry is one of the most vibrant sectors of the economy today. Taking a retrospective glance at this industry some ten years ago, one will agree that the sector has undergone tremendous change within such a short time. Thanks to the Obasanjo's administration and more importantly democracy.
The telecommunication industry has experienced a number of reforms worth mentioning, the period of analogue system which was characterized by long queues tariff, etc, came and left the period of digital system came and the bottlenecks in the telecommunication system were reduced to the barest minimum level. Finally, the GSM (Global System Mobile Communication) networks, which has improved the efficiency of the Nigerian Telecommunication industry.
The revolutionary trend coupled with the GSM conspicuous presence thwarted the monopoly initially hampering the growth of the industry. Presently, over ten mobile system providers are operating and this has intensified competition in this section. Nonetheless, providers such as MTN, ZAIN, GLO, ETISALAT, etc, must to continuously improve the quality of products and differentiate their offerings to meet the diver's needs of consumers, government policies, competition and technological advancement.
In this case, communication becomes necessary to continually inform, persuade and remind consumers of their products and assume customers the quality. Communication refers to the exchange of meaningful information, or ideas between two or more people in order to induce/create a mutual understanding and or positive response.
Although, communication is a broad and universal term in marketing, it involves activities used to induce customer patronage towards a firm's products/services. This activities are called promotional activities and often they are achieved through the promo-tools (advertising, sales promotion personal selling, public relations, etc).
In Nigeria marketing communication could be traced back to the early 19th century when the advent of industrial revolution gave rise to rapid and massive industrialization and commercial production of goods and services (Nwachukwu, 1988).
Among the four marketing promotional communicational tools, advertising is the most commonly used because of its ability to reach a larger audience at a particular time (Widest coverage). Due to this very reason it is often called mass marketing (Ebue, 2000). Advertising can be defined as any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor (Kotler and Keller 2005).
Over the years lots of attention have been vested on advertising in terms of literature and practice, especially in the area of print and electronic media. Outdoor advertising which is the oldest form has been relegated to the background by many scholars and managers. However, in recent time we see outdoor adverts being practiced by smaller or new businesses that are not buoyant to use the conventional print and electronic media, or that are avoiding competition from the larger firms. Outdoor advertising involved the use of posters, billboards (electronic/manual), window display, handbills, flyer, posters, bus shelters, street criers, etc, to inform, persuade or remind consumers about products or services.
Elvey (1991) pointed out that outdoor advertising, particularly the use of billboard is very popular with developing countries primarily because the medium is considered to be cheaper when compared with other media and in certain cases follows its target where ever he goes and whatever he is doing.
Out door advertising enables the advertiser to perform high degree of colourful display of products or services, and this is a common place in Nigeria. As earlier said, the advertising practices of most large businesses is visible mainly in the conventional print and electronic media. But due to the intensive competition in the communication industry, major player have now reverted to the use of outdoor adverts to intensify their efforts of ensuring that their products are permanently positively positioned in their customers mind.
Hence, the recent shift of interest and emphasis from print and electronic adverts to outdoor which is more flexible and versatile in that it combines the qualities of both print and electronic methods of both print and electronic methods is the primary purpose of embarking on this study. The role of outdoor advertising in achieving growth in the telecommunication industry.
1.2 Statement of the Problem
Despite the recent attention given to outdoor advertising by scholars and organisations, it is still a puzzle why larger organisations prefer to sink huge sum of naira in print and electronic advertising and little is devoted to outdoor advertising which has the joint quality of the previous. The questions here are: Do the advertisers really understand who their customers are? Do the advertising agencies incorporate the needs/desires of the advertiser (organisation) in the messages (advert)? Does the medium give the desired penetration coverage and cost effectiveness? Do consumers respond to it positive? Is it adaptive to environmental changes?
It is in a bid to address this salient questions that the study was embarked upon to establish the nature of relationship between outdoor advertising and marketing growth of telecommunication organisations in Imo state.
1.3 Purpose of the Study
This study primarily was undertaken to investigate the nature of relationship between outdoor advertising and marketing growth in the telecommunication industry in Imo state. It will also determine the following specific objectives.
- Whether the advertisers conducts customer analysis (to understand its customers) before designing outdoor adverts.
- The extent to which the efforts of the advertising agencies matches the expectation of the organisation (advertiser).
- How effective the media is, in achieving the desired growth of telecommunication firms.
- What the perception of consumers are towards out door advertising.
- The cost of embarking on outdoor advertising commensurate – the performance of the telecommunication organisation.
- Whether moderating factors (competition, economy, technology and government policies) interfere in the relationship between outdoor advertising and marketing the performance of telecommunication organisations
1.4 Research Questions
- What is the correlation between advertising and the marketing performance of outdoor services?
- To what extent does the efforts of the advertising agencies matches the expectation of the organisation.
- How effective is media in achieving the desired growth of telecommunication firms?
- What perception of consumers are towards outdoor advertising?
- Does the cost of embarking on outdoor advertising commensurate with the performance of telecommunication organisation?
- Do moderating factors affect the relationship between outdoor advertising and marketing, growth of telecommunication organisations?
1.5 Research Hypothesis
Ho1: Outdoor advertising does not contribute significantly to the marketing performance of the telecommunication industry.
Ho2: Moderating factors do not interfere in the relationship between outdoor advertising and the marketing performance of the telecommunication industry.
1.6 Significance of the Study
The final report of this study will be of particular significance to investors or providers of GSM telephone service in Owerri and else where who are putting in their hard earned resources not only in providing but also in advertising GSM telephone service with no commensurate profile returns. This is true because the final report of this study will serve as a reference document in the planning of future advertising programmes of the service on the part of selected telecommunication and other GSM telephone services providers in Nigeria and else where.
The final report of this study will also be of particular significance of to every number of the marketing channel of selected telecommunication (such as agent, whole sales, middlemen and retails) whose profit margins are largely determined by the success of failure of outdoor advertising. This is true because the final report of this study will distributors in planning future advertising of the service.
This study will also be of much significance to students and researchers on advertising of telephone service in Owerri and else where. This is because the report will serve as a reliable literature and a stepping stone for further researchers on advertising telephone services.
This study will also be of particular significance to members of the public who are the final consumers of MTN, Glo and Zain GSM telephone services being advertised through outdoor type. This is because the final report of this study will services as a guide on the part of providers of GSM telephone services to members of the public in terms of quality of service.
1.7 Scope and Limitation of the Study
The extent of coverage of this study is defined within the context of the research topic, “the role of outdoor advertising in achieving growth in the telecommunication industry in Imo state.”
The constraints suffered by the study is that of lack of sufficient time. The researchers could not find sufficient time to extend the study beyond the area and aspect contained in this final report. This is because the present study is a requirement for the award of an academic degree whose duration is fixed.
This study also suffered the constraint of lack of sufficient and reliable literature on the subject matter of the study. This is perhaps as result of the advertising medium could be considered to be new in Nigeria. To this extent, therefore, the present researcher could not have extended the study beyond what is contained in this report.
The study also suffered apathy or non cooperation from the target respondents of study. This is so because majority of the target respondents have relatively low education, are very busy, and shy away because the study does not present the prospects with any form of immediate financial benefits. To this extent the researcher had to spend much energy, money and time running after the (the target respondents). As a conservancies of the foregoing drawback. This final report could not be said to be the most reliable documents on the subject mater of the study. However, in spite of its obvious weakness, this final report shall remain a reliable document for future studies on the topic.
1.8 Operational Definition of Terms
Democracy:
Control of an organisation by its members, who take part in the making of decisions.
GSM:
Means global system for mobile communication network, which has improved the efficiency of the Nigerian telecommunication industry.
Monopoly:
A market structure existing when a firm produces a product that has no close substitute and or when a single seller may erect barriers to potential competitors.
Promo Tools:
These are promotional tools that can be used to communicate to target audience. They are advertising, sale promotion, personal selling, public relations and publicity.
Advertising:
Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor.
Personal Selling:
A process of informing prospective buyer and persuading them to purchase product through personal communication in an exchange situation.
Promotion:
One of the marketing mix (4p's) that communicate with individuals, groups, or organisations directly on indirectly to facilitates exchanges by influencing audience members to accept an organisation's products.
Public Relations:
A broad set of communication activities used to create and maintain favourable relations between the organisations and the publics.
Bill Boards:
An outdoor sign or poster.
Print Media:
This is one of the communication channels to disseminate information from producers to consumers or from consumers to producers. It comprises newspapers, magazines and journals.
Electronic Media:
It allow user to send a message or file from one computer directly to another.
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