ADVERTISING AND ITS INFLUENCE ON CONSUMER BEHAVIOUR

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ADVERTISING AND ITS INFLUENCE ON CONSUMER BEHAVIOUR

(A CASE STUDY OF MOBILE TELEPHONE NETWORK (MTN) ABUJA)

 ABSTRACT

This project title “Advertising and It’s Influence on Consumers Behaviour” A Case Study of Mobile Telephone Network (MTN) Abuja which was carried out by the researcher with the aim of working on the subject matter “advertising” which unavoidably is one of the marketing activities of business organizations (small and large scale business).  Looking at advertising, it goes beyond creation of awareness and persuasion of consumers about the existence of a particular product or service.  A successful advertisement skillfully engage and stimulate the mind of the consumer to buy or use a product or service advertised, which invariably determine the level of sales, which brings about the profitability of the whole exercise.  Therefore advertising is one of the instruments used to educate and inform the general public of the existence, uses and benefits of new and existing products or services.  The objectives of this study are: To know the influence of advertising on consumers; to find out what consumers know about the roles advertising play in economy; to know customers attitudes toward advertising whether they like or dislike the advert messages.  The following recommendations were made: Government should promulgate a strong decree to ban business organizations from conveying misleading information to consumers through advertising, and set up a Federal Trade Commission to enforce the decree; the business organizations should on their part establish a self-relation mechanism that would respond constructive to public complains about advertising and should perform creditably; business organizations should engage in advertising research to see it as necessary for them to advertise their products or services; Business organizations should carry out research on consumers needs so as to disseminate correct information to consumers through advertising.

CHAPTER ONE

1.0     INTRODUCTION

The topic “advertising and its influence on consumer behavior” is a very unique and lucrative (profitable) topic that any researcher will definitely want to research upon.  It is also an important instrument of promotion that organizations, firms or companies will want to pay close attention to in order to enhance and increase their level of sales, thereby enhancing the qualitativeness of firm or companies.

As we all know, advertising is a non-personal presentation and promotion of ideas, goods and services by an identified sponsor it’s aim is to inform, persuade and remind the target audience or prospective listener that will be interested in the products of its benefits and uses.  That is why the researcher deemed it fit or necessary to find out how advertising influenced the society, whether it has impact on the target audience or not.

Advertising is an important promotional tool in various companies or firm, whose major aim is to increase the firm’s market share which will bring about the maximization of profit and minimize loss.

Before an organization goes into advertisement, close attention must be paid to the internal environments in which the firm find itself.

The internal environment are those factors such as the products, place and promotion, they are otherwise referred to as (4ps) which are controllable by a firm.  While the external environment consist of the socio-cultural, political, legal and technological environments, which are usually the uncontrollable factors that confronts firms.

These factors to a greater extent affect the rate of advertiser.

1.1     HISTORICAL BACKGROUND

Mobile Telephone Network (MTN) is one of the two South African cellular operators.  They first entered the cellular areas in June 1994 as the second licenced application of their core values as they have been successful in providing coverage and embarking on the telecommunication services in the following countries.

South Africa, Switzerland, Cameroon, Uganda, Rwanda and Nigeria.  After a successful negotiation, MTN was licenced in Nigeria and was signed.

MTN Nigeria is part of the MTN Group, Africa’s leading cellular telecommunications company.  On May 16, 2001, MTN became the first GSM network to make a call following the globally landed Nigeria GSM auction conducted by the Nigeria communications commission earlier in the year.

The commercial launching took place on 1^st August 2001, it started with over five thousand lines which covered only three areas namely: Lagos, Port-Harcourt and Abuja, and later extends its area services to other towns like Warri, Onitsha, Kaduna, Jos, Ibadan, Abeokuta, etc.  Since August 2001 to date, MTN in Nigeria has covered many parts of Nigeria and it is expected to cover all the Nigerian States by now, and more other African countries.

MTN in Nigeria is the biggest service provider in Africa and has the potential and quality to grow bigger than South-Africa market.  It is estimated that in six African countries, Nigeria has the largest MTN stations.  Nigeria covers 900 venture MTN (76.8%) and local partner (23.2%).  The investment is in excess of 1.4 billion to bring mobile telephone to Nigeria.

1.2     STATEMENT OF OBJECTIVE

The principal objectives of this study include the following:

1. To know the influence of advertising on consumers.
2. To find out what consumers know about the roles advertising play in economy.
3. To know customers attitudes toward advertising whether they like or dislike the advert messages.
4. To make recommendations based on the findings.

1.3     STATEMENT OF HYPOTHESIS

Ho:    The appropriate selection of suitable media would negatively affect advertising messages about the marketing of product or services.

Hi:     The appropriate selection of suitable media would positively affect advertising messages about the marketing of products or services.

The problem of this study is to analyze advertising and its influence on consumers’ behavior and the extent to which it has succeeded, but such problems vary according to their importance.

1.4     STATEMENT OF THE PROBLEM

Firms are bound to face with problems when advertising their products or services.

Message Construct:  Advertising is faced with the problem of message construction that is the message is being constructed and carried out before it gets to the consumers.

Media Selection:  This has to do with selection of suitable media to reach the target audience in order to achieve a certain objectives.

Language:  The use of language risk properly understood by consumer negatively hinder the communication of advertising message to the target audience.

Cost:  Cost of advertising, cost however affects advertising if money spent on it is not enough to effectively create the needed level of awareness, this would definitely lead to low level of patronage.

Frequency:  Frequency of an advert affects the advertising of a product or services if not done frequently.  This keeps reminding the audience of such products or services.

Timing:  Timing affects advertising of a product or services, therefore, the right time should be chosen for advertising.

1.5     SIGNIFICANT OF THE STUDY

If we agreed that the objective of advertising is to call the attention of members of the public to an idea, product or service in order to induce them (audience) to buy, advertising must have to be distinguished from advertisement which is the oral or written words, illustrations, use of pictures that convey the intentions as a message of advertising.  The features of good advertising are as follows:

1. It must create attention
2. It must convince the prospective buyer to buy
3. It should create a permanent and good impression of a product or service in the mind of the audience.

The significant of this study is to investigate the uses advertising and its influence on consumer behavior in Mobile Telephone Network (MTN) Abuja territory.  The outcome of this study is expected to shade more light on an importance of advertising to the successful marketing of goods and services.

1.6     LIMITATIONS OF THE STUDY

Research activities are time and money consuming venture.  Some of the problems the researcher encountered are as follows:

1. Finance: The researcher was not financially buoyant to carry out the research work to the dept he wants and this affected the research work.
2. Time Factor: Due to school programme activities, there was no adequate time to carry out the research work.
3. Inadequate Materials:  Materials needed for the study were not easily gotten.
4. Inadequate Responses: Some of the respondents interviewed were so biased that the needed information were not accurately supply.

1.7     DEFINITION OF THE TERMS

The following register below is peculiar to the topic of this project work.

1. ADVERTISING: This is the creation of awareness about the goods and services of a firm or firms, with an identified sponsor but it is not personal.
2.  ADVERTISEMENT: This is the oral or written words that convey the intention and message of advertising.
3. PRODUCT:  Product means anything that is offered to the market for attention, use or acquisition, consumption etc, it include physical objects, services and ideas.
4. CONSUMERS: These are users of products or services offered to the market for final consumption.
5. PRODUCERS: These are the people with the responsibilities of processing raw materials into finished useable products are goods, and they also provide services.
6. RESPONDENTS: They are these who are given questions, with the aim of returning them with the needed information.
7. MARKET:  A market is a place where buyers and sellers meet to register their effect in price.

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