CHALLENGES TO THE PRACTICE OF MARKETING CONCEPT IN NIGERIA (STUDY OF SELECTED FIRMS IN THE TELECOMMUNICATION INDUSTRY IN NIGERIA)

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Product Code: 00008061

No of Pages: 64

No of Chapters: 5

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ABSTRACT

Marketing is a concept adopted by most business organization to increase the quality and efficiency of the service they render to their target market. It upholds the principle of profit maximization through effective satisfaction of customers’ needs and wants. Business organizations in recent times have not be able to maximize profit accruable from the market they operate. As such, their total revenue has drastically reduced thus affecting the objective and goals of the organization. It is against this background that deemed it important to ascertain the challenges encountered by telecommunication companies in the practice of marketing concept. The following objectives were pursued in the course of this study; ascertain the impact of lack of good knowledge about rights among customer on the willingness to adopt marketing concept by firms in the telecom industry in Nigeria, ascertain the impacts of non-practice of marketing concept among organizations in the telecommunication industry in Nigeria and to determine the impacts of poor regulation of business in the adoption of marketing concept of organizations in the telecomm industry in Nigeria. The research employed primary and secondary method to generate the relevant data for the study. Questionnaire was distributed to 124 respondents and data generated were analyzed using percentage and frequency; while the formulated hypotheses were tested using Analysis of Variance. The outcome proved that poor level of awareness of consumers’ right to good quality services is a major factor that encourages the non adoption of the marketing concept in the telecommunication industry in Nigeria, firms in the telecommunication industry are mere excess profit oriented in philosophy compared to the satisfaction of the consumers hence are challenged to investment only in areas of operation that ensure ease and early recovery of investment and lack of poor level of government regulation of business practices in Nigeria significantly contributes to non adoption of the philosophy of marketing concept in the telecommunication industry in Nigeria. Based on the above the research recommends that consumers of telecommunication services should be educated or enlightened on their rights to good quality services in order encourage the adoption of marketing concept by service providers in the telecommunication industry in Nigeria and that government should intensify its efforts in checkmating the activities of telecommunication companies in Nigeria.








TABLE OF CONTENTS

Title - - - - - - - - - - - i

Certification - - - - - - - - - ii

Approval page - - - - - - - - - iii

Dedication - - - - - - - - - - iv

Acknowledgements - - - - - - - - v

Table of content - - - - - - - - - vi

List of tables - - - - - - - - - vii

Abstract - - - - - - - - - - - viii

 

CHAPTER ONE

INTRODUCTION - - - - - - - - - 1

1.1 Background to the Study - - - - - - 1

1.2 Statement of the Problem - - - - - - 3

1.3 Objectives of the Study - - - - - - - 4

1.3 Research Questions - - - - - - - 5

1.4 Research Hypotheses - - - - - - - 6

1.5 Significance of the Study - - - - - - 6

1.6 Definitions of terms - - - - - - - 8

 

CHAPTER TWO

REVIEW OF RELATED LITERATURE - - - - - - 9

2.1 Marketing: Defined - - - - - - - 9

2.2 Definition of Marketing Concept - - - - - 10

2.3 Fundamentals of Marketing Concept - - - - 13

2.3.1 Target Market - - - - - - - - 13

2.3.2 Customers Needs and Want - - - - - - 13

2.3.3 Integrated Marketing - - - - - - - 14

2.3.4 Profitability - - - - - - - - - 15

2.4 Importance of Marketing Concept - - - - - 16

2.5 Overview of Telecommunication in Nigeria - - - 16

2.6 Nigeria Communication Commission (NCC) and its impact on Telecommunication Industry - - - - 18

2.7 Historical Background of Telecommunication Companies in Nigeria - - 18

2.7.1 MTN Nigeria - - - - - - - - 18

2.7.2 GLOBACOM Nigeria Limited - - - - - - 18

2.7.3 ETISALAT Nigeria - - - - - - - - 19

2.8 Challenges of telecommunication in the Nigerian Market - 20

2.9 Ways by which Government Regulates Business Activities in Nigeria - 21

 

CHAPTER THREE

RESEARCH METHODOLOGY - - - - - - - 24

3.0 Introduction - - - - - - - - 24

3.1 Research Design - - - - - - - - 24

3.2 Area of the Study - - - - - - - - 25

3.3 Population of the Study - - - - - - - 25

3.4 Determination of Sample size - - - - - - 25

3.5 Method of Data Collection - - - - - - 27

3.6 Instrument for Data Collection - - - - - 27

3.7 Method of Data Analysis - - - - - - 28

3.8 Validity of Instrument - - - - - - - 29

3.9 Reliability of Instrument - - - - - - 30

 

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA - - - - - 31

Table 4.2: Distribution and Retrieval of Questionnaire - - 31

Table 4.2: Poor level of awareness of right and non practice of marketing concept - - - - - - 33

Table 4.3: Awareness of Right and Adoption of Marketing Concept  - 34

Table 4.4: Excess Profit Philosophy and Marketing Concept - 37

Table 4.5: Excess Profit Philosophy and Marketing Concept  - - 38

Table 4.6 Shows government regulation and Adoption of Marketing Concept - - - - - - - 41

 

 

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION - - - 43

5.1 Summary of Findings - - - - - - - 43

5.2 Conclusion - - - - - - - - - 43

5.3 Recommendations - - - - - - - 45

 

REFERENCES

APPENDIX: QUESTIONNAIRE

LIST OF TABLE

Table 4.2: Distribution and Retrieval of Questionnaire - - 31

Table 4.2: Poor level of awareness of right and non practice of marketing concept - - - - - - 33

Table 4.3: Awareness of Right and Adoption of Marketing Concept  - 34

Table 4.4: Excess Profit Philosophy and Marketing Concept - 37

Table 4.5: Excess Profit Philosophy and Marketing Concept  - - 38

Table 4.6 Shows government regulation and Adoption of Marketing Concept - - - - - - - 41

 

 

 



 

 

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The Nigeria telecommunication industry is increasingly becoming competitive due to the increase in the number of telecommunication companies operating in the industry and the changes in the needs of users of the numerous services offered by telecommunication companies that operate in Nigeria (Ezeh, 2006). The competitive nature of the industry and the dynamism of consumer’s needs and wants negate the need for telecommunication companies in Nigeria to adopt and utilize the marketing concept in order to increase and maintain their market share.

The marketing concept is a theory that advocates the need for company to satisfactorily meet the needs of their target market in order to remain in business. Orji (1998) opines that in a competitive business environment, firms that practice the marketing concept are firms that have the ability to satisfactorily meet the needs of its target audience. The marketing concept states that the business organization should strive to satisfy it’s customers’ wants and needs while meeting the organization’s goals and corporate objectives (Kotler, 2013).  

Telecommunication is the science and technology of sending and receiving information such as sound, visual images or computer data over long distances through the use of electrical, radio, or light signals, using electronic devices to encode the information as signals and to decode the signals as information (the American Heritage Science Dictionary 2009). It also means communication between parties at a distance from one another especially by the use of telephone. It is crucial to the overall growth and development of the economy of any nation.

The relevance of the activities of telecommunication companies that operate in Nigeria can not be neglected. They contribute significantly to the GDP, improves business activities, increase the pace at which information is disseminated among individuals, business organizations and governmental institutions etc. Most leading telecommunication companies in Nigeria like; MTN, Airtel, Globacom and Etisalat in a bid to maintain their relevance in the society strive so hard to remain competitive in the market and increase their market share. These are achieved through effective practice of marketing concept which centres on identifying and meeting customer’s needs and wants profitable (Nwosu, 2009).

The mentioned telecommunication companies in a bid to effectively practice marketing concept are faced with numerous challenges. These challenges could arise from the competitive environment in which they operate, poor infrastructural facilities, government obnoxious policies and programmes etc. In a bid to bring to limelight the challenges encountered by telecommunication companies operating in Nigeria, in their efforts to effectively practice the marketing concept, the researcher was poised to embark on this study.

1.2 Statement of the Problem

The challenges that face Nigerian telecommunication companies in the practice of marketing concept have not been exhaustively identified by researchers in the field of marketing. No wonder, most firms don’t know exactly what it takes to optimally practice marketing concepts in their day to day dealing with the current and potential customers.

In recent times, the quality of ‘services’ rendered by telecommunication companies in Nigeria is so poor; ranging from poor network, continuous deduction of customers credits, high tariff, etc. This poor quality service leads to customer’s dissatisfaction which affects their customers’ post purchase decision.    

  Most telecommunication companies in Nigeria do not put their customers’ wants and needs in the prime place as they are supposed. Hence, they find it extremely difficult to maintain existing customers and attract new potential ones.  

  The marketing environment in which telecommunication companies in Nigeria operates does not provide conducive atmosphere for the effective application of marketing concept. This could be in the form of instability in government policies and programmes, high cost of registration and operating in the industry, etc. Hence, marketers of telecommunication services do not find it friendly to comfortable thrive in the industry. It is against this background, that the researcher deemed it wise to carry out research on the challenges faced by telecommunication companies in Nigeria in a bid to practice marketing concept in their day to day dealing with their target markets.

1.3 Objectives of the Study

The broad objective of the research work is to identify the challenges to the practice of marketing concept in Nigeria.

However, in bid to achieve the above stated objective, the following specific objectives are pursued.

Which are to:

a) Ascertain the impact of lack of good knowledge about rights among customer on the willingness to adopt marketing concept by firms in the telecom industry in Nigeria

b) Ascertain the impacts of non-practice of marketing concept among organizations in the telecommunication industry in Nigeria

c) Determine the impacts of poor regulation of business in the adoption of marketing concept of organizations in the telecomm industry in Nigeria

1.3 Research Questions

The following research questions were addressed in the course of this study. They are listed as follows:

a) How does lack of customer’s right among consumers of services of Telecomm firm encourage the non adoption of marketing concept philosophy among firms in the telecomm industry in Nigeria?     

b) To what extent does the desire and philosophy of excess profit based on investment mitigate firms in the telecomm industry to ignore the practice of marketing concept?

c) Does poor government regulation of business practice encourage the non-adoption of marketing concept among firms in the telecomm industry in Nigeria?

1.4 Research Hypotheses

The following research hypotheses stated in null form will be tested in the course of this study. They are:

H01: Poor level of awareness of right to good quality services among consumers of telecommunication services in Nigeria does not significantly encourage the adoption of marketing concept among firms in the telecommunication industry.

H02: The adoption of the philosophy of excess profit on investment does not significantly encourage firms in the telecommunication industry in Nigeria to ignore the practice of marketing concepts.

H03: Lack or poor level of government regulation of business practices does not significantly encourage the non-adoption of marketing concept among firms in the telecommunication industry in Nigeria

1.5 Significance of the Study

This research work will be of immense benefits to the following:

a) Network subscribers: This study will be of crucial benefits to users of MTN, Airtel and Glo network. In that, it will expose users of the network on the various ways marketers of such services can improve in the practice or application of marketing concept in their dealings with their target audience.

b) Network providers: Network providers in Nigeria do not fully understand the meaning and practice of marketing concept. Hence, they fail to attract new and maintain existing customers. The study will provide indebt knowledge on the various marketing concepts available to network providers and how to effective apply these concepts in their day – to – day dealings with their target market.

c) Governmental Agencies:  Governmental agencies like Nigeria Telecommunication commission are saddled with the responsibility of regulating the activities of telecommunication companies in Nigeria. The body checkmates the quality of services delivered by these network providers. Hence, this work will fortify this body with the requisite knowledge on the quality and nature of service that should be provided by network providers in the country.    

d) Potential Researchers: This study provides the foundation for further research to be carried out by potential researcher that may desire to exhaustively explore the challenges faced by telecommunication companies in Nigeria in the practice of marketing concept.

e) Academic institutions: Academic institutions especially those that offer marketing as a discipline will benefit great from this study. In that, it will provide more knowledge to the existing ones on the topic “challenges to the practice of marketing concept in Nigeria”. Thus helping the students of such institutions to be better equipped on practice of marketing concept and the challenges inherent.

1.6 Definitions of terms

a) Marketing: This is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

b) Network providers: These are business organizations that sell bandwidth or network access or provide network access to users of GSM and other mobile devices.

c) Telecommunication: This is the process of exchanging information between two or more entities which involves the use of technology.

d) Business environment: This involves actors and forces outside marketing that affect marketing management ability to build and maintain successful relationships with target customers.

 


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