THE SIGNIFICANCE OF MARKETING STRATEGIES IN TELECOMMUNICATION INDUSTRY (A CASE STUDY OF MTN NIGERIA)

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ABSTRACT

The study sought to investigate the significance of marketing strategies in the telecommunication industry. (A case study of MTN Nigeria) The purpose of this study was concerned with analyzing significance of marketing strategies in the telecommunications industry. Over the years, businesses all over the world has faced difficulties in getting their services especially in the telecommunication industry acceptable or sold in the market. Through the creation of master plans with the help of the marketing mix tools (7ps) which are: product, prices, promotion, place, packaging, positioning, and people. As a way of assessing the relationship with all external factors, such as competitors and target market. Secondly, by establishing a long term commitment relationships with customers and also build business empire. The objectives that guided the study among others is to examine the significance of marketing strategy in telecommunications industry; with particular study of MTN Nigeria. The study followed a survey research design using both quantitative and qualitative approaches. The population was 500 and the sample size of 222 was arrived at using Taro Yamene formular. The data collected was analyzed using descriptive statistics and Pearson’s co-relation co-efficient techniques with 0.05 % tolerance error. The findings of the study are among others that the respondents indicate that there is significance relationship between marketing strategies and telecommunication industry. Base on the findings, it was recommended among others that MTN Nigeria should have sustainable signal and service which is more reliable. Also, MTN Nigeria should conduct a periodic market research to understand the changes in the market, to get feedback on customer satisfaction, the size and nature of the growing market.

 

CHAPTER ONE

1.1   INTRODUCTION

One of the reasons behind the successful performance of some telecommunication operations in Nigeria is the application of marketing strategies m their services.

The significance of marketing strategies in the communication industry has long been appreciated and recognized by both marketing practitioners and academician. Over the years business all over the world has faced difficulties in getting their service especially in the telecommunication industry acceptable or sold in the market. It therefore has become vital for any organization to have a suitable and reliable marketing plan through its marketing strategic process. The vital role marketing strategy plays in communication industry are; Firstly through the creation of master plans with the help of the marketing mix tools (7ps) which are: product prices, promotion, place, packaging, positioning, and people. As a way of assessing the relationship with all external factors, such as competitors and target market. Secondly, by establishing a long term commitment relationships with customers and also build business empire. Thirdly by making a clear selling point of the organization from financial statement and income that provide productivity of the product. Finally, it helps to create a brand name that provide employees the consistent point of reference, which is also another significance of marking strategy in the communication industry. Various definition of marking strategy has been provided by scholars.

Robson (1997) sees strategy as a pattern of resource allocation design made through an organization.

According to Bech and Belch (1997) Any company or industry that wants to exchange its product or services in the market successfully should have a strategic marketing plan to guide the allocation of its resources.

Areniu (2008) posits that the environment is always seen as major parameter in determining marketing strategy in an industry like telecommunication industry.

He further stresses that it is not possible for decision makers to formulate marketing strategies for their industries, or organization in a vacuum. They need to recognize how various elements of the marketing environment influence decision making in the industry or organization.

It was also posits that Nigerian industry service today are faced with turbulent business environment that is characterized by constant changes. To survive, companies must alter the way they are conducting business with, and must offer superior services in order to retain and satisfy them, this is because and customers loyalty. (Aremu, Gbadeyan, Mefabi, 2011).

In Africa, Nigeria is rated high for telecommunication hotspot for both telecommunication operators and equipment suppliers. In 2003 it had about five million mobile lines, compared with just about four hundred and fifty thousand lines a couple of years ago.

Presently Nigeria telecommunication industry is one of the largest in Africa with over seventy million G.S.M. users and still grow with one of the highest fixed lines revenue and cumulative revenue of 14 billion as at December 2009 NCC (2010) in the first four months of 2014 the MTN Group as a whole reported an overall subscriber increase 2%, driven large part by MTN Nigeria, which added 1.1 million new users during this period. By January 2015 MTN Nigeria had 60.Smillion subscribers, which was equal to 44% of the countries overall mobile subscribers base and ground a quarter of MTN group’s total subscribers. While other networks like GLO, Etisalat and Airtel shave 55.5M subscribers.

MTN has invested heavily in Nigeria in recent years. in 2012 the company spent 1.5 billion on capacity building in the country, followed by a similar amount in 2013, and it plans to spend 3 “billion  on additional upgrades through to 2016. “we will continue to invest at this rate in the  medium term, and save the quality of service is acceptable”, Sifiso Dabengwa, MTN’S group president and C.E.O. told local media.

The Nigeria telecommunication industry in the past few years has witnessed stiff competition which has resulted in aggressive use of various marketing strategies employed by telecommunication market players to strengthen their brands appealing to the good conscience of stakeholders. The consistent and divergent use of these strategies have proved effective in proving their corporate image and turn over dominant players like; MTN GLO, Etisalat, Airtel among others have been visible in the past committing substantial amount of money to the employment of various lodable marketing strategies. Others have redefme their various promotion in other to reach less privileged and mutal members of the society who are much more in populations (National Census 2006).

Staying successful in any business requires constant analysis and adjustment of changes in what customers wants and competitors offer. It is therefore apparent that firm’s will have to be market oriented, tightly focused on customers need and desire, and highly adaptive to succeed and prosper. This the effective performance of marketing activities particularly those associated with tracking and analyzing, and satisfying customers needs have become more challenging and critical for the successful formulation and implementation of marketing strategies especially in the telecommunication industries. It is the challenges  that has to prompted the choice of this research work. Yes Sir.

1.2   STATEMENT OF THE PROBLEM

The telecommunication industry in Nigeria is fast developing a marketing management system which allows for coherent coordination of the entire activities involved. But unlike the marketing of intangible goods service marketing are yet to gain ground or become significant in Nigeria. Most people do not see to appreciate the idea, while a lot more find not satisfaction in the whole concept and as such do not see anything interest their in. A result, the industry is saddled with problem of proper coordination of the entire activities.

1.3   OBJECTIVE OF THE STUDY

The main purpose of this stud’ to examine the significance of marketing strategies in telecommunication industry; with particular study of MTN Nigeria PLC.

Other specific objectives are:

     To ascertain the effectiveness and efficiency of MTN Nigeria PLC; marketing strategies meeting customers need, want and expectation.

     To identify and examine some pitfall and barriers to effective formulation and implementation of the marketing strategies employed by MTN Nigeria PLC

     To make recommendations for improvement where necessary.

1.4   RESEARCH QUESTIONS

This research study hopes to provide answers to the following questions:

  1. To what extent is marketing strategies employed by MTN Nigeria PLC significantly effective and efficient to meet customers need, want, and expectations?
  2. What are the challenges facing the effective formulation and implementation of the marketing strategies employed by MTN Nigeria PLC?
  3. Are there recommendations made as a solution to their improving?

1.5   RESEARCH HYPOTHESIS

HO:         There is no significant relationship between marketing strategies and the services of telecommunication industry

Hi:   There is a significant relationship between marketing strategies and the services of telecommunication industry

HO2:       Effective formulation and implementation of marketing strategies are not significantly related to challenges in the telecommunication industry.

Hi:   Effective formulation and implementation of marketing strategies are not significantly affected by challenges in the environment.

1.6   SIGNIFICANCE OF THE STUDY

The study will be beneficial to the telecommunication industry particularly MTN Nigeria, as it will give them the opportunity to understand the consumer market in Nigeria, the threats and opportunities it possess. An understanding of this will not only help to identity and select their principal target segments but also provide inputs to all the elements in the marketing mix there by fine turning the implementation of their marketing strategies.

Again the study will also be significant because it will highlight the general marketing problem of MTN Nigeria PLC, and provide solutions based on findings; such as the owner of the organization will find it useful as well as the competitors and customers. Finally the study will be a scholars and researchers in the field of marketing.

1.7   LIMITATION OF THE STUDY

Several researchers over the years have experienced different constraints in their research study; this study is not an exception.

The study ahs the following factors as their constraints they include:

  1. Time: The expected period for the conclusion of this study is too short.
  2. Fund: The fund estimated to carry out this work is not enough.

iii.    Academics: Academic works to attend to are much.

These factors put together made it difficult for an indept research to be carried out.

1.8   SCOPE OF THE STUDY

This study is basically concern with the significance of marketing strategies in the telecommunication industry study of MTN Nigeria PLC. It is therefore limited to MTN Nigeria PLC.

The categories which this study encompasses are the selected customers and marketing staff of MTN Nigeria PLC Port Harcourt.

 

1.9   DEFINITION OF TERMS

     Marketing: is the process of planning and executing the conception, pricing promotion and distribution of ideas goods and services to create exchange and satisfy individual and organizational objectives.

     Strategies: Refers to all action by management to offset actual or potential actions of competitors.

     Service: is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

     Industry: is any general business activity or commercial enterprise that can be isolated from others such as the telecommunication, tourist, or the entertainment industry.

     Telecommunication: is defined as the communication at a distance by technological means particularly through electrical signals or electromagnetic waves.

     Communication: can be defined as a two way process of reaching mutual understanding in which participants not only exchange (encode-decode) information, news, ideas, and feelings, but also create and share meaning.

In general communication is a means connecting people or place. In business it is a key function of management, an organization cannot operate without communication between levels, departments, and employee.

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