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Wednesday 15 September 2021

END OF MODULE PROJECT ON FUNDAMENTALS OF MARKETING

End of Module Project

The deadline for your end of module project is at the end of Unit 9.

For an organisation of your choice (a product or service provider is equally acceptable) conduct a marketing audit on the organisation.

Your audit should contain the following:

1. A situational analysis including organisational goals, context and competitor activity.

2. A review of the internal strengths and weaknesses of the organisation.

3. The establishment of marketing objectives that support the organisational goals set out in section 1.

4. The development of outline marketing activities (4Ps or 7Ps) including a planning timetable to support the objectives set in section 3.

5. A conclusion outlining the benefits to the organisation that will result from the implementation of the marketing activity contained in the audit.

Your response should be in the form of a written report between 1,500 and 2,000 words.


Solution:

1.0 Introduction 

Marketing audit addresses the six major elements that determine marketing condition in a specific organization.  According to Michail (2020), marketing audit plays an irreplaceable role in organization as it functions entails utilizing of dependable information that offers insight into operations. Conversely, marketing audit can assist organizations to take advantage of all the opportunities which are presented by the market and as well mitigate negative threats that may adversely affect the organization(Drucker, 2013).   The objectives of this work hinge on a situational  analysis of MTN Nigeria with a focus on the organization’s objectives in terms of competitors’ activities, strengths and weaknesses of the organization, the marketing objectives of  MTN including the marketing mix such as the 7Ps and planning time table inline with the objectives.  Finally, summary outlining the prospects to  MTN resulting  from implementation of the marketing activity contained in the audit. 

1.1Situational Analysis

One of the big telecommunication companies in Nigeria is known as MTN, quoted on the Nigerian Stock Exchange (NSE) and has presence in every state in Nigeria including Abuja, the Federal Capital Territory (Skool Team,2019).  The telecommunication industry in Nigeria is huge, dynamic and competitive with various services offer to consumers (Sheriffdeen  & Adenike, 2012). The organization has functioned on a simplified matrix structure which addresses more effective conditions and was used for expansion to other nations allow for interconnectivity between these nations.   The emergence of MTN into the Nigerian Telecommunication industry marks the beginning of fierce competition in the sector owing to various services that MTN has introduced (Adio, Banada &  Eluka, 2018).  Nevertheless, MTN continued to be at the top of their marketing activities which has given them an edge in the industry. 

1.2 Internal and External Environment of MTN

The Nigerian telecommunication industry is huge with a market of over 200 million population making it very attractive. However, organizations like MTN has to content with the internal and external environment owing to the peculiar nature of this sector (Michail, 2020). Consequently, the internal and external environment of MTN in the telecommunication industry poses a challenge to how their marketing activities are carried out successfully to attract subscribers. Nevertheless, MTN has firm control over its internal environment as the organization has over the years never had any internal crisis from management or employees(Rilwan, 2013).  

It is pertinent to say that the increasing population of Nigeria, its cultural diversity, security and economic challenges and political factors have significant impact on businesses.  Furthermore, the high rates of cybercrime as a result of Internet and emerging technologies birthed from Telecommunication services have given rise to fierce regulations in the industry which has potential effect on companies such as MTN (Afolabi  &  Ojo, 2015).  The need to examine the external market environment is essential to MTN Nigeria owing to the dynamic nature of the external environment. Consequently, MTN takes into cognizance  that risk management is key to ensure the development of a thriving business (MTN,2009). In mitigating the challenges of the external environment, the organization  has adopted a risk philosophy that effectively balance risk and reward. The organization has built and integrated risk management structure that guides its activities that are mainly responsible and accountable for the risk management of both internal and external factor. 


2.0 Competitors activities 

The Nigerian telecommunication is competitive with over 9 telecommunication firms with MTN, Global Com, Airtel and 9mobil as the major competitors.  However, MTN has gained trust and popularity over its competitors through quality products and services in terms of wider coverage, data services and devices.  Furthermore, their Everywhere you go and Yello Nigeria slogan has MTN a household name. Finally, the company through the Nigerian Stock Exchange (NSE) allowed Nigerians to be shareholders and not just customers. 

2.1 SWOT Analysis

SWOT is an acronym which is Strength, weaknesses, opportunity and threat.  This report, adopts SWOT framework to analyze the market environment and its correlation with MTN  marketing activities.  

Strength:  MTN Nigeria being one of the first telecommunication organizations to come into Nigeria has huge impact on the Nigerian Telecommunication industry. According to Rilwan (2013), the emergence of MTN has resuscitated the Nigerian telecommunication industry which was in comatose and the organization has thrive based on the various packages and services that it offered. The ease of communication enjoyed by every subscriber of MTN and the wider coverage is one of the major Strengths of MTN Nigeria (MTN, 2009). 

Weaknesses:  MTN Nigeria started with per minute billing against per second billing which was enjoyed by subscribers (Usman, 2011).Furthermore, there was a timeframe for usage of airtime which when elapse, the subscriber can no longer make calls until he or she recharge. Subscribers have frown at this type of services with such conditions  and have seen them as extortions (Ugbor, 2013).This is a weakness for MTN because other telecommunication firms, particularly Globacom which is one of MTN biggest competitors started with per minutes billing and other services that were attractive and affordable to subscribers.  

Opportunities:  Nigeria with an estimated 200 million population has a huge market for the telecommunication sector which is still untapped(Trade Economics, 2019). Conversely, there are few telecommunication companies in Nigeria with effective services, hence more opportunities for MTN to reach its goals and objectives (Wazis, Imam &  Gassol, 2016).  

Finally, data usage has increased due to Covid 19 Pandemic as various organizations and individuals that has resorted to virtual methods of carried out their business and personal transactions.  

Threats: In the Nigerian Telecomm sector, there are over 9 telecommunications firms with keen competition among them.  Furthermore, the insecurity challenges that has ravaged some states in Nigeria is a great threat to MTN as cases of vandals has been recorded(Skool Team, 2019). The epilithic power supply in Nigeria has significant effect on MTN expenditure  and failure of network. Finally, regulations and taxes from government agencies such as the Nigerian Communications Commission (NCC) get stiffer and as well as political circumstances.

2.2 MTN Marketing objectives supporting its goals

Nigeria has over 9 Telecommunication firms and out of these companies, MTN is known for its aggressive marketing.  The organization’s marketing objective is simple and loud enough (MTN,2009).  Some of their marketing objectives that support the goals are;

i. “Everywhere You Go”:  The organization came out with a marketing slogan referred to as Everywhere You Go which is translated to getting their network and services everywhere in Nigeria.  MTN has achieved this marketing objective as their services is obvious in every community in Nigeria. 

ii. “MTN Yello Nigeria”:  The MTN Yello Nigeria is a marketing objective tailored along side their company colour and logo.  The organization has successfully used their colour and logo as a marketing strategy to paint most buildings in various communities and locations which has helped in identification of their product from other telecommunication (MTN,2009).  

iii. Segmentation, Targeting and Positioning (STP).MTN has used segmentation, targeting and positioning to achieve its marketing objective in the telecommunication industry in Nigeria making the organization the most subscribed to network.  This the organization has achieved through segmenting by demographical, geographical, status and so on.  Furthermore, MTN has targeted the market by cities and population or audience which enable it to have the largest connection and coverage. 

3.0 Planning Timetable 

Objective Action Resource Measurement Timescale 

Getting our products and services to everyone who has a Mobile Phone Aggressive marketing through promotional and marketing mix.  Adopting all medium of advertisement Deploy digital marketing through Google Adward, Facebook, Twitter and other social media platform.  Placing advert on National and International TV stations.  Evaluate progress through per view and click of advert.  Assess sales and patronage. 6 months – 1 year 

Ensuring wider coverage of our network Install Masks and other transmitting equipment for wider coverage of network Latest Masks and transmitting equipment. Licenses and permission. Field personnel Assess network in remote areas to test coverage. 1 year and 6 months


3.1MTN Marketing Mix (7 P’s)

Marketing activities of MTN encompasses 7Ps which the organization has adopted to effectively gain market share in the Telecommunication Industry.  This section of this work discusses theMarketing mix using the 7Ps.  


Figure 1: Marketing mix 7ps Source: Rilwan (2013)

Product: There are three category of a product such as goods, services and idea.  MTN major products are goods and services such as the Data Bundles, Wifi and Mifi devices, Sim cards, Mobile Phones and Routers. In addition, MTN also introduced other corporate social responsibility services to ensure that subscribers and other people benefit from it(Rilwan, 2013).



MTN Wifi                                                             MTN Mifi








MTN Mobile Phones 

Fig 2:  Some MTN Products  Source: https://www.mtnonline.com/product/4g-mifi/

Place:MTN ensures that its products and services are available to its esteemed customers at various location, hence the slogan “Everywhere You Go”.  

The organization has both physical outlet which enables it to distribute products such as Wifi and Mifi devices, Sim Cards and customers service centres with trained personnel who attend to customers needs.     

Promotion:MTN has adopted various promotional strategies to get their products and services to Nigerians through personal selling using MTN customized vehicles around the cities and communities in Nigeria (Ndubisi, Anyanwu &  Nwankwo, 2015). In addition, the organization has used aggressive advertisement in various medium to promote their products and services across the nooks and crannies of Nigeria (Wazis, Imam,&  Gassol, 2016).  

Price:Initially, MTN Sim Card was sold for an exorbitant price which hindered many Nigerians from purchasing their Sim.  Conversely, their Recharge Cards were the highest at the beginning.  However, today MTN Sim Card is almost free to subscribers knowing fully well that every subscriber that has MTN Sim is a potential customers that will continue buying Airtime (Ugbor,2013). 

People: Giving that MTN is from South Africa and they have a lot to do in order to win the heart of Nigerians, the organization has taken customers which are the people as the King in their business (Anene, 2014). MTN has taken into cognizance cultural diversity in Nigeria  with over 250 various ethic groups to plan their marketing activities.  Therefore, adverts are being done using various languages to ensure that the message is properly passed without infringing on their culture and religion (Rilwan, 2013).  MTN sees all their customers as partners of the company. 

Processes:MTN has adopted a standardized process well documented and followed international standards. Products are being customized to meet the needs of their esteemed customers (Adio, Banada  &  Eluka, 2018). In addition, the organization has ensured that information on products and services are made available to consumers which has assisted them to gain public trust and satisfaction.  

Physical Evidence:As previously stated, MTN has physical presence in every state in Nigeria with its services in places like hotels, hospital and their centres accessible to every customer (Adeoti,  Gbadeyan,  Olawale & Adeyemi, 2017).  Furthermore, the organization has been seen physically distributing gifts and other Corporate Social Services which has demonstrated their physical presence in various states and communities. 

4.0 Conclusion

This report has focused on a situational analysis of MTN Nigeria with the organization’s objectives in terms of competitors’ activities, strengths and weaknesses of the organization, the marketing objectives of  the organization  including the marketing mix such as the 7Ps and planning time table in line with the objectives.  In summary, MTN has benefited and will continue to benefit from the above marketing activities to meet its organizational goals. 

Based on the  analysis and discussion of this report, it has been recommended that MTN should take into cognizance some of its internal weaknesses such as the pricing strategy and adjust its price for better promotion and marketing performance. In addition, the growing competition among the big players in the Nigerian telecommunication industry could have a significant effect on MTN performance, thus a continuous marketing audit and external marketing environment assessment would assist MTN to mitigate any challenge that may arise in future.  

 

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