AN APPRAISAL OF SALES PROMOTION ON THE CHOICE OF MOBILE PHONE OPERATORS
(A Case Study of MTN Nigeria Plc)
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ABSTRACT
The focus of this research work is An Appraisal of Sales Promotion on the Choice of Mobile Phone (a case study of MTN Nigeria plc). The scholarly research work gives insight into the views of various authors as concerned with the project subject matter an appraisal of sales promotion on the choice of mobile phone. The study gives an in-depth historical background of the company under review. In the researcher’s effort and desire to achieve his objective, the researcher has chosen to use the descriptive research method. The research population consists of 24 people of MTN Ahmedu Bellow way branch Kaduna. A sample size of twelve were randomly chosen for this research both for the management staff, and customers respectively. The following hypothesis were formulated for the research: The null hypothesis (Ho). The alternative hypothesis (Hi). Ho: The null hypothesis: sales promotion does not have a significant influence on consumer buying behaviour. Hi: The alternative hypothesis: sales promotion has a significant influence on consumer buying behaviour. The data collected were presented and analyzed based on the findings, it was discovered that sales promotion has a significant impact on consumer behaviour. Useful recommendations were made by the researcher that sales promotion should not be treated as an emergency tool but be treated as an integral part of the company marketing activities and that sales promotion should be adequately planned and prepared through putting necessary measures that would yield tangible results to the organization.
CHAPTER ONE
1.0 INTRODUCTION
The success of any firm largely depends on customers patronage, for any firm to push its products to the consumers effectively, there is the need to carryout promotional campaigns to communicate with the ultimate consumers without promotion, customers may not be aware of the existence of the particular product, hence patronage may remain very low. Many promotional tools are used to communicate with the consumers but sales promotion tends to be the most effective of all due to the extra incentive it provides to consumers.
Alexandra (1960) viewed sales promotion“as a marketing activity other than personal selling, advertising, public and public relations that induces and stimulates consumers purchase and dealers effectiveness”. The importance of sales promotion campaigns are seen at the point of purchase where it is used to support personal selling and advertising, it is rarely used alone as a promotional tool. In marketing practice, the application of all promotion tools is called promotional mix.
Sales promotion as an effective promotional tool tends to serve “as direct inducement that to offers an extra, values or incentives on the product to the sales force, distributors and the ultimate consumers with the primary objective of creating an immediate sale”. Sales promotion tends to act as an a acceleration tool designed to speed up the selling process and maximizes sales volume through increasing market share. The acceleration tool motivates consumers to purchase a larger quantity of a brand and it also shorten the purchase cycle of the trade and consumers by encouraging them to take more immediate actions.
As the use of sales promotion increase, companies now started considering what they hope to accomplish through their promotional campaigns because not all sales promotion campaigns are designed to achieve the same goals, marketers must plan sales promotion programmes by carrying out situation analysis, to determine sales promotion target audience. Marketing manager must think beyond short term sales while the basic goal of most consumers sales promotion is to induce consumers purchase, and marketer objective could be to defend current market share, increase consumption through enhanced marketing efforts.
1.1 STATEMENT OF GENERAL PROBLEMS
Sales promotion campaign is an effective means of communicating with the target market by providing extra incentive to buy. Sales promotion activities are designed by firms in achieving their organizational objectives. But In spite of the achievements there are some problems faced by these firms during the campaigns.
The increasing uses of sales promotion in firm’s marketing programmes is getting too strong for them to handle because it is a fundamental change in strategic decisions on how these trims sell their products to consumers. The increasing sales promotion campaigns have been questioned by many marketing scholars particularly with regards to lack of adequate planning and management of sales promotion programmes.
Also, research and literatures have shown that over-dependence on sales promotion by many companies have resulted to sales promotion trap. This is because many firms use sales promotion campaigns extensively to differentiate their products from competitors products which has consequently resulted in reduction in profit margin of the competing firms.
Many firms fall into trap due to success of the sales promotion campaigns which eventually lead to differential advantage that attracts other firms to copy.
Finally, lack of media timing and support for sales promotion campaigns which is very critical and should be coordinated with the media programmes on advertising campaigns. Sales promotion without media advertising could render the campaign ineffective because consumers need to be informed about the promotional offers to stimulate their interest and favourable attitude towards the brand.