MARKETING PERFORMANCE MEASUREMENT IN THE SERVICE INDUSTRY IN NIGERIA ( A STUDY OF MTN AND GLO)

ABSTRACT

This study examines marketing performance measures in the telecommunications industry, focusing on MTN in Abia State, Nigeria. The objectives are to assess the effect of service delivery on performance, determine market share levels, evaluate sales growth, and analyze how marketing performance influences an organization's competitive status. A survey design method was employed to organize and simplify complex phenomena. Data were collected from primary sources via questionnaires and secondary sources through literature review. The study population included both staff and customers of MTN, with a sample size of 80 determined using the Taro Yamani formula and selected through simple random sampling. Descriptive statistics were used for analyzing personal data, while inferential analysis was conducted using simple regression. The findings reveal significant challenges in integrating qualitative and quantitative performance measures, difficulties in standardizing measurement across firms, and high acceptance of performance indices driven by regulatory requirements despite their limitations. Recommendations include developing unified standards, cost-effective control measures, cultural sensitivity training, and leveraging technology for more accurate and efficient performance measurement. Future research should explore alternative models, industry-specific adaptations, and the impact of digital transformation on marketing performance metrics.

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

1.2 Statement of the Problem

1.3 Objectives of the Study

1.4 Research Questions

1.5 Research Hypotheses

1.6 Significance of the Study

1.7 Scope of the Study

1.8 Limitations of the study

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Conceptual Framework

2.1.1Historical Background of Telecoms Industry in Nigeria

2.1.2 WHY MARKET TELECOMMUNICATION SERVICE

2.1.3 The Impact of Marketing in Telecommunication.

2.1.4The Concept of Marketing Performance

2.1.5 Effect of Marketing Variables on the Performance of

2.1.6Customer Satisfaction and Customer Loyalty in Service Industry

2.2 Theoretical Framework

2.3 Empirical Review

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

3.2 Area of the study

3.3 Sources of Data/Method of Collection

3.4 Population of the study

3.5 Sampling Procedure and Sample Size

3.6 Validity of instrument

3.7 Reliability of the instrument

3.8 Method of Data Analysis

3.9 Model Specification

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Data Sourcing

4.2 Test of Hypotheses   

4.3 Findings and Discussion

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1    Summary

5.2    Conclusion

5.3    Recommendations

5.4    Suggestions for Further Study

References

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Marketing Performance is a construct that helps to determine the status of an organization as compared to its competitors. Performance is defined as the act of performing; of doing some things; using knowledge as distinguished from merely possessing it, and any recognized achievement (Oxford Dictionary, 2000). Epstein, (2004) suggests that performance can refer to either the ‘ends’ (results) or the ‘means’ (actions) that produced the ends. Profit, which is an ends performance, is seen as historic in nature because it occurs before being reported. Slater and Naver, (1994) used Return on Investment (ROI), sales growth and market share as measures of marketing Performance. Equally, Yan et al (2000) suggest that a current marketing performance measures includes 12 items viz; sales growth, customer retention, return on investment, market share, getting important and valuable information, ability to obtain loan, ability to obtain governmental approval, contact with important persons, ability to secure local resources and motivation. From the long list above, it appears there is no agreement or end to marketing performance indicators. However, marketing performance can be finance-based (profits): market-based (market share) or a combination of these. In the same vein Venkatramen et al, (1986) opine that marketing performance is the achievement of financial and operational business goals. In line with these views, we are considering organizational profits and market share as indicators of business performance in the Nigeria Telecommunication Industry because, ultimately, market share and profit seem to be prime indicators of organizational success and performance. 

There are scholarly opinions in the evaluation of marketing performance. Nwokah and Maclayton (2006) suggest that marketing performance is the achievement of financial and operational business goals. Business achievements or attributes are identified as strong financial result satisfied customers and employees, high levels of individual initiative, productivity and innovation, aligned performance measurement and reward systems. Slater and Naver (1994) used ROI, sales growth and market share in the evaluation of market performance. The Nigerian Telecommunication industry is ridden with competition. This study therefore used market share and sales growth as marketing performance metrics in the Nigeria telecommunication industry.

1.2 Statement of the Problem

The telecommunication facilities in Nigeria are handled by Nigerian communications commission (NCC), which is a parastatal in the ministry of communications. It was established by Decree No. 75 of 1992, which deregulated the telecommunications industry in Nigeria and is charged with the responsibility of regulating private telecommunications services, promoting fair competition as well as facilitating entry into the telecommunications market (TechTalkAfrica.com, 2013). Accordingly, the major players in the telecommunication industry in Nigeria are MTN Nigeria, Airtel, Globacom and Etisalat,(TechTalkAfrica.com, 2013), operating on the 900/1800 MHz (Megahertz) spectrum.  

However, the telecommunication industry in Nigeria is confronted with various operational challenges to power and run the existing base of over 20,000 telecom towers (kumar, 2012). In his argument, Kumar (2012) notes that Nigeria is one of the countries with the lowest levels of grid power availability at an average of 5 hours of availability per day. He went further to argue that the country’s MNOs and tower companies are forced to shift to alternate sources for primary and backup power, with diesel generators being the default choice for backup power at the moment. This has in effect distorted efficient service delivery and hence impacting on the marketing performance of firms in this industry. 

1.3 Objectives of the Study

The general objective of the study is to examine the marketing performance measures in telecommunications industry. However, the specific objectives includes, to;

(i)            Examine the effect of service delivery on the performance of telecommunications industry.

(ii)          Determine the level of market share in the telecommunications industry

(iii)        Examine the level of sales growth in the telecommunications industry

(iv)        Examine the extent to which marketing performance helps to determine the status of an organization as compared to its competitors.

1.4 Research Questions

(i) Examine the effect of service delivery on the performance of telecommunications industry.

(ii)          Determine the level of market share in the telecommunications industry

(iii)        Examine the level of sales growth in the telecommunications industry

(iv)        Examine the extent to which marketing performance helps to determine the status of an organization as compared to its competitors.

1.5 Research Hypotheses

For the purpose of the study, the following hypotheses will be tested in null form

H₀₁:There is no significant relationship between service delivery and the performance of telecommunications industry.

H₀₂:Level of market share has no significant effect on the performance of telecommunications industry.

H₀₃:There is no significant relationship between sales growth and the performance of telecommunications industry.

1.6 Significance of the Study

The study will help in telecommunications industry to understand the impact of marketing on the performance of an organization, the study will also guide them to know the marketing performance measures such as market share, profit, sales growth e.t.c in an organization. It will also enable them structure their services to make them more appealing in order to improve sales that would lead to better performance. As this study gives a clear insight into how effective service delivery can influence consumer preference, telecommunication industries will be encouraged into using adverts, sales promotion or personal selling to market their products and services. The findings of the study will be used as references for future research work.

1.7 Scope of the Study

The focus of this study is to examine marketing performance measures in service industry with reference to telecommunications industry. The study will be carried out in Abia state using MTN for data generation.

1.9 Limitations of the study

Perceived limitations to this study will include the following;

Financial Constraints; To effectively complete a research work of this nature, good amount of money is required. Although the researcher, as a student, is not financially dependent, she is poised to making the best use of the available monetary resources to get the job properly done.

Time Constraint; This the period of time needed for the researcher to source for   information. The time given for this research work may not be enough for the researcher to gather all the necessary information that is needed.

Respondents’ Behaviour; when trying to get information from the respondent, most of them feel reluctant of giving out the required information. 

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