Chapter one

Introduction

1.0 Introduction
This chapter will foucs on background of study, objective of study , problems of study , Question
of study , scope of study , significance of study

1.1 background of the study

1.1.1 In global
Mobile product has been viewed as one of the hottest industries for the

Future of world economy. As such, mobile phone industry has been one of those bright

spots in Asian economy during the last decade, and just in China, the mobile

phone market has been increasing at a rate of 80% since 1990 and became a market of

130 million users in 20

The mobile productivity in China has experienced rapid growth over the last

decade in terms of the numbers of subscribers. In January 2005, there were 358 million

mobile phones subscribers and this number has surpassed fixed-line subscribers

(emarketer.com). This productivity medium has brought fundamental changes to the

Chinese society where remote areas are now connected to the mainstreams of society.

China has become one of the world's largest mobile phones subscriber markets, and with

its 1.3 billion population it continues to present potential for high growth market (Pau, 2005-056)

Mobile phone productivity is particularly interesting. It is one of the

highly technology-intensive, advanced manufacturing sectors in which many coun-

tries are eager to excel. Also, in East Asia, mobile phone productivity is part of

the electronics sector, which has played a key role as a major source of exports,

jobs and innovaion for each of the countries in different periods of history
(Hobday 1998 (Pau, 2005-056) (Lim, 222–246)

1.1.2 .In Africa

the outcome or effect being measured. c (MENTZ, 2011)onsumer behavior related to mobile products,
such as purchase decisions, brand preference, or perception of the product.

brand is a name, term, sign, symbol, or design or a combination of these, intended to

identify the goods and services of one seller or group of sellers and to differentiate them

from those of the competition (Kotler & Armstrong, 2006:243).

Since the launch of cellular services around April 1994 this segment of the South African

telecommunications market has rapidly soared past its fixed-line counterpart (Budde

Communication, 2006:109

1.1.3 In religion
has enabled businesses to reach new customers, expand their markets, and streamline operations,leading
to increased efficiency and productivity.

As a result, the World Bank notes that Somaliahas experienced steady economic growth in recent years,
with the digital economy playing a keyrole in driving this expansion (World Bank, 2020a) (Hilowle,
2024)There are several potential gaps in the mobile product market in Somalia such as mobile Financial
Service While mobile money services such as EVC Plus (by Hormuud Telecom) and Zaad (by Somtel)
are widely used, there is still potential for expanding these services, especially in rural areas and
underserved regions.

Improving access to mobile banking, savings, loans, and insurance could address a gap in financial
inclusion.

Mobile Agriculture Solutions Agriculture is a key sector in Somalia, and mobile-based solutions can help
farmers access market prices, weather forecasts, agricultural advice, and financial services. There is room
for mobile a

1.2.Ojectives of the study

1.2.1. Understand Consumer Perception: Analyze how advertising shapes consumers' perceptions of
mobile products, including brand image and product value.

1.2.2 Measure Effectiveness of Advertising : Evaluate the effectiveness of different advertising

strategies (e.g., digital ads, TV commercials, social media campaigns) in promoting mobile products.

1.2.3. Explore Buying Behavior: Identify the role of advertising in influencing consumer decision-
making and purchase intent for mobile devices.

1.2.4. Assess Brand Loyalty: Determine whether advertising contributes to building brand loyalty
among mobile product Understand consumer perception.

1.2.5 Increasing Brand Awareness: Mobile ads help businesses enhance their visibility among
potential customers by promoting their products across various mobile platforms.

1.2.6Driving Engagement: Marketers aim to foster continuous engagement with consumers through
interactive and targeted ads, encouraging them to interact with the brand.

1.2.7 Generating Direct Responses: Mobile advertisements often include calls-to-action that
prompt users to make purchases or take other specified actions
1.2.8 Targeting Specific Audiences: Mobile advertising allows companies to reach consumers
based on location, demographics, and behavior, leading to more effective campaigns

1.3 Problem statement

1.3.1. BACKGROUND
It analysis and refers how do difference types of mobile advertisements what extent do mobile ads
contribute to consumer ad fatigue or annoyance How accurate and relevant are mobile ads in targeting the
right audience, and what is the impact of improper targeting on ad effectiveness and consumer trust? And
How does the influence of mobile advertising vary across different demographic groups

Marketing landscapes are changing in last couple of decades whereby customers are not mere passive
receivers of company messages but are actively involved in interactive relationships.

Customer interactions with companies are shifting from traditional one-way mass media like print, radio
and television to in-erective online, social and mobile platforms.
Practicing managers are therefore increasingly looking for ways to engage customers with their products
through multiple online and mobile media.

The research too in this domain is now shifting from customary construct of satisfaction to more active
constructs of ‘involvement’,

‘experience’ and more recently ‘engagement’ in customer choicemodels to predict loyalty. However,
existing research on customerengagement is largely conceptual (Brodie et al., 2011; Jaakkola
andAlexander, 2014; Verhoef et al., 2010) with limited literature onoperationalization, measurement and
empirical validation of theconstruct.

Also, engagement through mobile device, which is thefirst screen for a large customer base, remains to
be unexplored.

The consumer ‘engagement’ concept has been conceptualizedto explain consumers’ interactive
relationship with media chan-nels or brands (Brodie et al., 2013; Calder, Malthouse and Schaedel,

1.4.0 Signifacane of adveraiment of mobile product in puntaland

The significance of advertising for mobile products in Bosaso, a major port city in Puntland, Somalia, is
growing rapidly due to several key factors related to the area's economy, technology usage, and consumer
behavior. Below are several points highlighting the importance of mobile product

1.4.1 Growing Mobile Usage

1.4.1.1 Increased Mobile Penetration: The number of mobile phone users in Somalia,
and specifically in Bosaso, has surged in recent years. As internet penetration and mobile
phone ownership continue to rise, people in Bosaso are becoming more connected, which
offers a lucrative platform for advertisers.

1.4.1.2 Smartphone Adoption: With the increase in smartphone availability, mobile

users in Bosaso are not only accessing basic communication tools but are also
engaging with online content, e-commerce platforms, and social media. This
creates a fertile ground for targeted advertising.
 1.4.1.3 Online Services and E-commerce: Bosaso is seeing the rise of digital services, with
people purchasing goods and services online. As e-commerce grows, mobile product advertising
plays a crucial role in promoting products and services to potential customers.

1.4.1.4Social Media Influence: Platforms like Facebook, Instagram, and WhatsApp are
extremely popular in Somalia. Many businesses leverage these platforms for mobile advertising,
targeting local consumers with personalized ads, which can lead to direct purchases and brand
engagement.

1.4.2. Increased Internet Access

1.4.2.1Affordable Data: With the expansion of internet access and lower data costs in
Somalia, more people can browse the web and engage with mobile advertising. In Bosaso, mobile
data services are affordable, allowing consumers to access online content and advertisements
regularly.

1.4.2.1 Local Connectivity: As the internet infrastructure improves, Bosaso residents are
spending more time on mobile devices, engaging with content, watching videos, and interacting
with mobile apps, all of which offer great advertising opportunities.

1.4.3. Youthful Population

 1.4.3.1Young and Tech-Savvy Demographics: Bosaso has a relatively young population,

many of whom are highly engaged with technology and mobile products. Targeting this
demographic with ads related to smartphones, apps, mobile services, and digital products can
have a significant impact.
 1.4.3.2Consumer Behavior: Younger consumers are more likely to purchase mobile-related
products, such as accessories, apps, and mobile services. Thus, advertising strategies in Bosaso
often focus on capturing the attention of tech-savvy, mobile-first consumers.

1.4.4 . Local Business Growth

 1.4.4.1Support for SMEs and Local Startups: Mobile product advertising allows small and
medium-sized enterprises (SMEs) in Bosaso to promote their products to a wider audience. Local
businesses can use targeted ads to reach consumers in specific geographic areas, offering them an
affordable means to grow their market.
  1.4.4.2 Brand Building and Awareness: For businesses in Bosaso, mobile advertising provides a
way to build brand awareness, inform potential customers about new products or services, and
establish a stronger presence in the digital space.

1.4.5. Geographic Advantage

 1.4.5.1 Port City Influence: Bosaso is a significant trade hub in Puntland, with a busy port
that brings in goods from various regions. Mobile advertising allows companies to promote
products to both local residents and visitors who might be interested in mobile-related services
and technology.
 1.4.5.2 Targeted Advertising: Mobile ads can be tailored to users in specific areas within
Bosaso, which is helpful for local businesses to reach nearby consumers and drive in-person visits
to stores or physical locations.

7. Cost-Effective Advertising

 Lower Advertising Costs: Compared to traditional forms of advertising such as TV, radio, or
billboards, mobile advertising is often much more affordable and scalable. This makes it
accessible even for small businesses and startups in Bosaso to invest in digital advertising
campaigns.
 Measurable Results: Mobile advertising offers businesses the ability to track performance in
real-time, analyze metrics such as click-through rates, engagement, and conversion, and adjust
campaigns to maximize effectiveness.

8. Potential for Innovation

 SMS and Mobile Apps: In addition to social media and digital platforms, Bosaso businesses
are also taking advantage of SMS-based campaigns and in-app advertisements. These methods
allow companies to directly engage consumers on their mobile devices.
 Mobile Payment Integration: The growing use of mobile payments and digital wallets in
Bosaso provides another opportunity for advertisers to target users with offers that can be directly
paid for through mobile devices, encouraging impulse purchases
1.5 Scope of advertaiment of mobile product in Puntaland

The scope of a mobile product like "advertaiment" (a combination of advertising and entertainment) in
Bosaso, a major city in Puntland, Somalia, can be analyzed from multiple perspectives. Below is a
detailed breakdown of the scope of geography, time, demographics, and other important factors:

1.5.1 Geographical Scope:

1.5.1.1. Bosaso as a Strategic Location: Bosaso is a coastal city and one of the key commercial
hubs in Puntland. It is an important port city and a gateway for trade, making it a prime location for

mobile products.

1.5.1.2 Market Reach: The mobile product could cater not just to Bosaso, but also to nearby towns
and villages in Puntland. Bosaso serves as a hub for people traveling from other regions, expanding
the product’s reach across the northern parts of Somalia.

1.5.1.3 Rural vs. Urban: While Bosaso is urbanized, there is a mix of rural areas nearby where
mobile connectivity may be limited. However, Bosaso has better infrastructure compared to rural
areas, making it an ideal starting point for rolling out mobile services.

1.5.1.4 Mobile Network Penetration: Somalia has been experiencing a steady increase in mobile
phone penetration, with mobile network coverage expanding even to remote areas. This provides a
foundation for launching mobile products successfully in Bosaso.

1.6 scope of time

 1.6.1Short-Term Scope: Initially, the focus could be on testing the product in Bosaso itself,
refining its features based on user feedback. The initial rollout could target businesses (local

advertisers, entertainment venues, etc.), who are looking to promote their goods or services .

 1.6.2 Long-Term Scope: Over time, the mobile product could expand its features, enhance
user engagement, and integrate more entertainment options (e.g., video, gaming) as the mobile
market matures. With continued improvements in mobile networks, the product could expand to

other cities in Puntland and potentially beyond to the rest of Somalia .

  1.6.3 Event-Driven Expansion: Given Bosaso's position as a trade and transport hub, large
events such as festivals, markets, or regional conferences could present opportunities for
temporary promotional campaigns using the mobile product.

1.6.2. Demographics & Consumer Behavior:

1.6.2.1 Youthful Population: Bosaso, like much of Somalia, has a young population. A mobile
product that combines entertainment and advertising could appeal strongly to this demographic, as
they are typically early adopters of technology, including mobile apps, social media, and
entertainment services.

1.6.2.2. Tech-Savvy Consumers: There is a growing interest in mobile apps, social media, and
online content. Consumers in Bosaso are increasingly exposed to digital marketing and are familiar
with using mobile phones for entertainment purposes (e.g., watching videos, playing mobile games,
social networking).

1.6.2.3 Business Use: Local businesses in Bosaso, ranging from small shops to larger enterprises,
could use the mobile product for advertising. Given that Bosaso is a major port, businesses may want to
reach not only locals but also tourists and business visitors. Digital ads targeted via mobile devices can
be a powerful tool for businesses looking to grow their visibility.

1.6.3 Technological and Infrastructure Considerations:

1.6.3.1.Mobile Network Infrastructure: The expansion of mobile networks (3G/4G) is crucial

for the success of any mobile product. Bosaso has relatively good mobile network coverage, though
there may be rural areas with limited access to high-speed internet, which may affect certain features
of the product.

1.6.3.2.Payment Systems: With mobile money services like Hormuud and Telesom's Zaad widely
used in Somalia, integrating such payment solutions into the advertaiment platform would make it
more accessible to the population. This could also provide businesses with an easy way to pay for

advertising services via mobile money.

1.7. Competitive Landscape:

 1.7.1 Local Competition: There may be competition from existing mobile advertising platforms,
agencies, and social media services. However, since the concept is
local advertising
new (combining entertainment with advertising), there may still be a gap in the
market for such a unique product.

1.7.2 Global Competition: Larger global mobile entertainment and advertising platforms (e.g.,
Google, Facebook, TikTok) are already operating in the broader region. However, localized services
that cater specifically to Bosaso’s market and its cultural preferences could differentiate the
product.

1.8. Cultural and Societal Scope:

1.8.1.Content Localization: The product needs to be culturally relevant to Bosaso and the broader
Somali market. It should feature local languages (Somali) and incorporate regional values, traditions,
and interests to resonate with the target audience.

1.8.2Entertainment Preferences: The population in Bosaso may prefer entertainment that

is specific to Somali culture, such as Somali music, comedy, and traditional arts. Advertising through

such content can be a way to effectively integrate entertainment and advertising .

1.8.3 Regulations and Norms: Somalia has a complex media landscape with varying levels
of regulation. Adhering to local media and advertising standards, including those for digital content,
will be crucial. Ensuring compliance with any advertising restrictions (e.g., ads for alcohol or
gambling) will be necessary.

1.9. Economic Factors:

1.9.1. Affordability: Given the average income levels in Bosaso, it is important that the product be
affordable for both businesses and individual consumers. Some form of freemium model could be
effective, with businesses paying for premium advertising features while users access basic
entertainment for free.

1.9.2.Small and Medium Enterprises (SMEs): Bosaso has a high concentration of SMEs. A
mobile advertising platform that is affordable and easy to use could cater to the growing need of local
businesses to reach their customers.

1.10 . Potential Challenges:

 1.10.1 Internet Connectivity: While Bosaso has decent mobile coverage, access to high-speed
internet may still be limited in some areas. This could restrict the effectiveness of high-data content
such as videos or games in the mobile product.

1.10.2 User Adoption: Depending on the complexity of the product, user adoption could be a
challenge if the interface is not intuitive or if the audience is not familiar with the combination of
entertainment and advertising on mobile platforms.

1.10.3 Infrastructure Limitations: Electricity and internet access can be intermittent in some
areas, which may impact how users interact with mobile apps.

1.11. Reacher question

1.11.1. Market Research & Target Audience

1.Who is the target audience for this mobile product?

2.What are the key demographics (age, gender, location, income, etc.) of the mobile
product's users?

Advertising Strategy

1.What advertising goals do we want to achieve with this mobile product? (e.g., brand
awareness, downloads, purchases)

2.What is the most effective ad format for promoting this mobile product (e.g., banner ads,
video ads, sponsored posts)?

Analytics & Performance

1.What key performance indicators (KPIs) will we track to measure the success of our mobile
product advertising campaign?
2.What is the cost-per-install (CPI) and lifetime value (LTV) of users for the mobile product?

Retention and User Acquisition

1.How can we incentivize users to download and try the mobile product?

2.What are some effective strategies to retain users after they have downloaded the mobile
product?