Sales Promotion in Increasing the Levels of Network Patronage in the Telecoms Industry in Nigeria
Chapter One
OBJECTIVE OF THE STUDY
The major objective of the study is to determine the evaluation of sales promotion on the marketing network service providers with respect to mobile Telecommunication Network (MTN)
The specific objective of the study includes
- To find out which advertising medium would best effectively direct the promotion massage to the target audience.
- To determine how a good corporate image can be built by MTN Nigeria Limited with the people of Nigeria.
- To establish methods of sustaining good corporate image end reputation.
- To analyze sales promotion can generate huge sales for the companies involved in sales promotion
- To make recommendations for profitable sales promotion activities.
CHAPTER TWO
LITERATURE REVIEW
Sales Promotion
The power of sales promotion at influencing sales and customer’s patronage has been documented in the literature of marketing and sales management. According to Moemeke (1997), besides advertisement, sales promotion is the next available marketing strategy that help to promote sales, increase product life cycle, sales growth and enhance customers’ goodwill. Modern marketing management calls for more than developing good quality product, attractive price and making brands accessible to target customers. Companies engage in integrated marketing communication to attract and retain customers’ loyalty. In the same vein, Nwankwo (1996) observes that sales promotion as those marketing activities other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness, such as display, shows and exposition, demonstrations and various nonrecurrent selling efforts not in the ordinary routine. It also includes a combination of all marketing devices or techniques, special reductions, trade gift, premium offers, contests, and other such short-lived promotional activities directed towards consumers and retailers, aimed at motivating sales. In other words, it encourages immediate purchases. Sales promotion, according to Manale, Jose and Zacharias (2007), has become a vital tool for marketers and its importance has been increasing significantly over the years. In India, sales promotions expenditure by various marketing companies is estimated to be Rs 5,000 crores and the emphasis on sales promotion activities by the Indian industry has increased from 500 to 600 per cent during the last 3 to 5 years (Economic Times, June 15, 2003). Given the growing importance of sales promotion, there has been considerable interest in the effect of sales promotion on different dimensions such as consumers’ price perceptions, brand choice, brand switching behaviour, evaluation of brand equity, effect on brand perception and so on. One of the purposes of a consumer promotion is to elicit a direct impact on the purchase behaviour of the firm’s customers (Kotler, 2002; Blattberg and Scott, 1990). Research evidence suggests that sales promotions positively affect shotterm sales (Priya, 2004). Promotions affect significantly sales aggregate and stock piling and purchase acceleration. However, there have also been studies that suggest that sales promotion affects brand perceptions. In another study, Schultz (2004) argues that over dependence on promotions can erode consumers’ price-value equation. Similarly, Yoo, Dondhu and Lee (2000), based on structural equation model, suggest that frequent price promotions, such as price deals are related to low brand equity, whereas high advertising spending, high price, good store image and high distribution intensity are related to high brand equity. There is also a managerial belief that if a brand is supported with frequent promotional offers, the equity of the brand tends to get diluted. On the contrary, there have also been studies that indicate brands benefit from promotions. Amongst the elements of marketing mix, sales promotions have long-term influence on brand equity (Yoo et. al, 2000). Mariola and Elena, (2005), based on a sample of 167 buyers suggest that monetary and nonmonetary promotions are useful to create brand equity because of their positive effect on brand knowledge structures. Belch, G. and Belch, M. (1998) have define sales promotion as a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating immediate sales. Sales promotion involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key element in a promotional programme. Also, Osunbiyi (1991) observed that sales promotion is the marketing practice of temporarily offering better value for money, sales promotion is not a personal selling. It is a miscellaneous selling tool not categorized as advertising or personal selling. It is a non routine sales activity. Promotion centers on some form of special purchase incentive offered to the consumers or retailers and it is usually short-termed. It is tactical, and it is designed to achieve a short term objective, sometimes in a limited area or through certain outlets. Promotion is used as a tool to gain the support of the trade, either directly through trade promotion or indirectly through consumer promotion. GSM services are becoming growing in the telecommunication industry and therefore vulnerable to competition were require promotional strategies by the service providers. The GSM is an emerging communication industry in Africa, with Nigeria rated as one of the fastest growing market. However, the impact of the communication system is largely felt in the urban cities, the impact on the rural dwellers is still marginally poor (Adeyinka, Ajiboye, Emmanuel and Wojuade, 2007).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine Sales Promotion in Increasing the Levels of Network Patronage in the Telecoms Industry in Nigeria. MTN in Lagos forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain sales promotion in increasing the level of network patronage in the telecoms industry in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of sales promotion in increasing the level of network patronage in the telecoms industry in Nigeria
Summary
This study was on sales promotion in increasing the level of network patronage in the telecoms industry in Nigeria. Five objectives were raised which included; To find out which advertising medium would best effectively direct the promotion massage to the target audience, to determine how a good corporate image can be built by MTN Nigeria Limited with the people of Nigeria, to establish methods of sustaining good corporate image end reputation, to analyze sales promotion can generate huge sales for the companies involved in sales promotion and to make recommendations for profitable sales promotion activities. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected staffs of MTN in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Based on the findings of this study, this study concluded that customer patronage will increase in mobile telecommunication firms when they provide adequate information about the services they offer through sufficient advertisements, publicity, personal selling, and direct marketing as well as provide the needed incentives that will encourage rapid purchase of their offers. Also, telecommunication service providers that take time to build and maintain a good public image will influence customers to purchase their product offers and gain an edge over their competitors speedily and steadily. Mobile telecom service providers that commit their time, energy, and resources towards communicating the merits of the products and services they offer, providing a forum that enables customers to make enquiries and clarifications always, creating long lasting impression about themselves in the minds of current and future customers, and persuading customers to purchase their offers immediately will generate the market share required for their expansion and growth both locally and internationally
Recommendation
The study recommended that telecommunication service providers should put in more efforts in their advertisement campaigns, carry out frequent sales promotion programs, build and maintain long lasting relationship with the members of the public, engage more in one-on-one interaction with prospective customers, and give room for customers to make enquiries, lodge their complaints, and offer suggestions on how they can be served better. This in turn will help in attracting more customers as well as increasing their market share because current customers will remain loyal to them and more customers will begin to patronize them. Telecommunication firms should provide adequate and accurate information about the products and services they offer on television, newspapers, radio, and different social media platforms (twitter, facebook, whatsapp, and instagram) continually. Finally, telecommunication service providers should invest more in sponsoring popular events (trade fair exhibitions, sporting events, arts, and entertainment) to create awareness about the services they provide and capture more market
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