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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