THE EFFECT OF PROMOTION ON CONSUMERS’ PATRONAGE OF TELECOMMUNICATION SERVICES: A CASE STUDY OF MTN CALABAR

   CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Telecommunication is concerned with the roles of information technologies (IT) in the society that moves the economy forward, according to (Hobday 1981). In line with Hobday’s word (Hudson 1981) opined that as social and economic activities become more and more dependent on information technology (IT), telecomm are crucially  expanding technological trend to capture shares in the rapidly growing (IT) markets. They do this with the primary objective of stimulating consumers’ high demand for telephone services by offering low prices, preventing abuse of monopoly or (market) power by few telecomm operators and promoting technical efficiency in the telecommunication system.

According to international telecommunication union (Itu, 2004) opine that the development of telecommunication in the Nigeria economy encompasses many technology related business sectors operating in the telecom industry. And such telecommunication services include- MTN, Globacom, Etisalat etc.

Thus, in this article, focus will be made on MTN telecommunication service and her effective promotion used in enhancing consumers patronage, which equally serve as the topic of this research work.

Hence, the objective of this research work is to investigate how MTN can maintain consumer’s patronage using effective promotion to persuades, informed and reminding target customers about the company’s product and services.

This promotional objective coincides with the words of (Jerome and Perrault 1994) which stated that promotion can be attained when the objectives and markets mix is clearly define.

However, MTN is an emerging communication service in Africa, with Nigeria rated as one of the fastest growing market, where she owns outlets and branded stores to distribute products and services. Although, MTN is an organization which has other rivalries in communication services which compete with them in the area of marketing and sales promotion. Thus MTN has to adopt effective promotion to induce subscribers so as to create high volume of sales, maximize profit and making investment in advertising to gain consumers patronage.

1.2  STATEMENT OF THE PROBLEM

This study precisely states what problem the researcher seeks to investigate and how far this has been helping MTN in faulty decisions and takes corrective measures.

Thus, for MTN to remain in business and grow, it must know what marketing strategies should be used in order to achieve continuous sales maximization. Because, by so doing, it covers up cost and make reasonable profit through sales. Hence, an apparent problem confronting some of the telecomm services after few years of operations starts with low sales, low profit as a result of poor customer patronage caused by failure to adopt effective promotion. Thus, the researcher envisages that the following below contribute to the problem statement.

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