THE IMPACT OF MARKETING PLANNING IN THE TELECOMMUNICATION INDUSTRY IN ABUJA METROPOLIS

THE IMPACT OF MARKETING PLANNING IN THE TELECOMMUNICATION INDUSTRY IN ABUJA METROPOLIS

(A case study of Mobile Telecommunications Limited (MTN) Maitama Abuja Nigeria)

ABSTRACT

This project work examines the importance of marketing planning in MTN Telecommunication Company Abuja. The main principle of marketing is to have an achievable target market and to complete delivering the right service and product at a reasonable price. More so, a company’s aim is to create a unique brand name and establish a platform where the company can achieve its organizational goals and objectives, satisfying the consumer’s needs and wants. In the 90’s Nigeria experience poor quality service in telecommunication provided by NITEL both in making calls within or outside Nigeria, so all public outcry and the charges in the Country’s government brought about the transformation  in some sectors of the country including telecommunication industry. MTN Nigeria is one of the several companies licensed by the Nigerian Communication Commission (NCC) to operate on the platform of mobile service operators. For more than 10 years, the Nigerian mobile industry has grown from grass to grace. However we cannot overlook the challenges faced by operators like MTN Nigeria. Still the Nigerian market if referred to as the biggest market in Africa and one of the fastest growing markets in the world.  

CHAPTER ONE: INTRODUCTION

1.0     BACKGROUND OF THE STUDY

Marketing planning is a process that consists of analyzing current situation and information about marketing opportunities, forecasting and establishing planning premises, selecting target market(s), determining marketing objectives, designing and developing marketing strategy or courses of action for achieving these objectives and allocating resources to the ingredients of marketing effort i.e. marketing mix and developing procedure and policies.

Marketing planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning is simply a rational approach to accomplish an objective. It bridges the gap from where we are & where we want to go. Planning is the first management function to be performed in the process of management. It governs survival, growth and prosperity of any enterprise in a competitive and ever changing environment.Julius O. Onah (1999).

Marketing planning is an analytical process which covers:

1. Analysis of the situation or environment,

2. Assessment of the future opportunities and threats,

3. Determination of objectives and goals in the light of the future environmental forces and

4. Selection of the best strategy or the course of action from among the alternative strategies to achieve the objectives.

Planning is the first and the foremost function of management. Planning precedes all the functions. Marketing planning is the starting point of all marketing and business activities of an enterprise. Because of the dynamism of the environment, the role of marketing planning has increased a lot.

Many experts today consider marketing planning as synonymous with overall business planning because the purpose of any business is the successful management of its markets (marketing resources).

Every company must look ahead and determine when it wants to go and how to get there. Its future should not be left to chance. To meet this need, companies use two systems — a strategic planning system and marketing planning system. Strategic planning provides the route map for the firm. Strategic planning serves as the hedge against risk and uncertainty.

The requirements are excellent insight to understand changing consumer needs, clear planning to focus our efforts on meeting those needs, and flexibility, because change is the only constant. Most important, we must always offer products of quality and value to the consumers.

According to Hickson (1992: Page 5) marketing planning is the process of anticipating future events and developing strategies to achieve organizational objectives. It involves designing activities relating to marketing objectives. Marketing planning of an organization is planning for that organization’s revenue-generating activities.

Armstrong, J.S.(1995). It must begin with setting down the corporate plans and should be followed through with plans for each separate function:

1. The first step in marketing planning process is setting down marketing objectives and policies.

2. The second step is designing the marketing system. In the marketing system, a company has to design/define each function with its contribution.

3. The third step is to develop separate objectives, programmes, and strategies of each function, so that they can be assessed for the target purpose and the broad objectives. If any function cannot meet its objectives, have to be modified for that functional area.

4. The fourth step is drawing of detailed plans for each function for a shorter period, i.e., a quarter, half a year or a year. It will be helpful in defining responsibilities, timing and costs needed to achieve the short-term objectives.

Marketing planning is an effective aid to management because of its integral role in identifying and clarifying the priorities for the business. Without a clear statement of priorities, the company is vulnerable to internal confusion and lost opportunities.

Tom Cannon (1998). The activities of marketing planning are generally divided into two divisions according to time—(a) Long term Marketing Planning; and (b) Short term or annual Marketing Planning.

 1. Long Term Marketing Planning:

Long range planning involves developing the basic objectives and strategy to guide future company efforts. The long range plan provides the frame work within which the other plans of the company are prepared.

Long run planning may involve a time horizontal of two or more years, although it uses even a longer horizon of five to twenty years. Long range planning is done by the top management with the help of specialized planning authorities.

2. Short Term or Annual Marketing Planning:

Each year companies prepare annual plan. In principle, the annual plan is developed in the context of the company’s long range plan. Short range plan, of course, is not possible where the company has no long range plan.

A long range plan is necessary if the short range plans are not to be chaotic series of expedient solution to short run crisis. Sometimes annual plans only reflect over reactions to previous year’s result and next year’s problems rather than the progressive implementations of long range plan.

1.1STATEMENT OF THE PROBLEMS

Marketing planning and selecting target market are critical early task of an organization at large; but inability of an organization to identify needs and wants of their customer pose a big problem in a competitive environment. Many telecommunication company lack the foresight in identifying the various needs of customers and differences that exist in those market the organization is strong. In other wise they are faced with the problem of determining the policies and marketing plans to be taken in order to enhance productivity and maximize profit. Inability of a company to attain the resources needed in other to satisfy the segments and use the right marketing plans that will enable it to achieve its objectives.

1.2     OBJECTIVES OF THE STUDY

This study aims at assessing the impact of marketing planning in the telecommunication industry in Abuja metropolis.In addition, the study seeks to achieve the following specific objectives:

1. To assess the extent to which marketing planning in MTN Telecommunication Abuja contribute to the growth of the company.
2. To examine the policies and action that MTN Telecommunication has to take to encourage marketing in order to enhance productivity and the prospects of marketing planning in MTN
3. To determine the barriers against effective implementation of marketing planning in MTN Telecommunication.
   1. RESEARCH QUESTIONS
4.  What extent does the input of marketing planning contribute to the growth of the company?
5. How does the policies and action of MTN Telecommunication has to take encourage marketing in order to enhance productivity and the prospects in of marketing planning in MTN?
6. What are the barriers against effective implementation of marketing planning?

1.      STATEMENT OF THE HYPOTHESIS

In other to achieve the above mentioned objective, the research work can be done based on the following assumptions using null and alternative hypothesis.

Ho:Marketing planning has significant contribution to MTN Telecommunication Company.

Hi: Marketing planning has no significant contribution to MTN Telecommunication Company.

1.5     SIGNIFICANCE OF THE STUDY

The significance of the study will be helpful to let business organization to know the result of their effort toward market planning. It will also make the meaning of market planning explicit and explain in actual sense what constitutes an organization. The research work will also be of significance to future market planning in an industry hence; it will suggest some alternative to market planning that will not be imposed on industries.

Thus stimulating to embark fully on market planning and it is also believed that this study will be significant in that it will bring to lime light the problem of military against marketing planning in an organization and MTN communication in particular. More so, that it will be the guide to students of marketing department as well as lecturers of the department and other researchers that may encounter problems in this area.

1.6 SCOPE OF THE STUDY

This study is to design to discuss the importance of marketing planning in an organization MTN Telecommunication.Although each operating company is unique, the strategy and planning process is essentially the same and scaled to meet the size of the leadership and management teams and the complexity of the challenges they face. It consists of one or more leadership team workshop each lasting several days and preceded by local and analogues market research, stakeholder research and detailed workshop planning and design.

1.7     LIMITATIONS OF THE STUDY

In the course of this research, there are some problems that tend to limit the scope of this research which include:

1. Financial constraints
2. Time constraints
3. Attitude of respondents
4. Financial constraints: The researcher in the course of the study was faced with various financial difficulties. The high cost of writing and duplicating materials, increase in transportation is some of the challenges faced by the researcher.
5. Time constraints: Time was another factor that affected this research work because of conflict of time between when the researcher is free and when the respondents are free. In fact most of the management staff is too busy or out of seat to attend to the researcher.
6. Respondent attitude: Most respondents were uncompromising with the researcher as they believe that the study will not bring benefit to them and most of the respondents tend to find inaccurate statements. This leads to the researcher making conclusion based on personal observation.

1.8     OPERATIONAL DEFINITION OF TERMS

Marketing: American Marketing Association (AMA, 2005) defined marketing as the performance of business activities that practically direct the flow of goods and services from the producer to the consumer. The British Institute of Marketing defines marketing as the management process which identifies, anticipate and supply consumers requirement efficiently and profitably.

Marketing planning: Is a management function that is concerned with the mapping and performing of the cause of action with regard to the marketing activities in an organization.Olakunon O. and Ejinueme K. N.N (1996)

Marketing management: Is defined as the analysis, planning, implementation and control of programs that is designed to build, create and maintain mutual beneficial exchange relationship between the firm and the target market.

Management: Is simply the effective utilization of human and natural resources to achieve organizational set goals.

Planning: Is the establishment of objectives and the formulation, evaluation of strategies as tactics and action required to achieve this objective.

Organization: Is defined a any group of people who come together and interact with another in order to achieve a state of predetermined aid.