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An Appraisal of Sales Promotion On The Choice of Mobile Phone Operators
An Appraisal of Sales Promotion On The Choice of Mobile Phone Operators
S
Class: 3rd B.com “B”
“AN APPRAISAL OF SALES PROMOTION ON THE
CHOICE OF MOBILE PHONE OPERATORS”
OBJECTIVES:
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 ma
caltter an appraisal of sales promotion on the choice of mobile phone. The study
gives an in-depth history 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.
TABLE OF CONTENT
Title page – – – – – – – – – i
Declaration – – – – – – – – – ii
Dedication – – – – – – – – – – iv
Acknowledgement – – – – – – – – v
Abstract- – – – – – – – – – vi
CHAPTER ONE
1.1 Background of the Study – – – – – – 1
CHAPTER TWO
2.0 Introduction – – – – – – – – 8
CHAPTER THREE
3.1 Introduction – – – – – – – 26
5.2 Conclusion – – – – – – 39
5.3 Recommendations – – – – – – 40
Bibliography- – – – – – – – 42
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.
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.
The over all intent is to identify groups of similar customers and potentials customers
to prioritize the groups to address to understand their behaviour and to respond with
appropriate marketing strategic that satisfy the different performance of each
choosen division and thereby improve the company revenue. This can however be
achieved through a distinct division of groups of buyers who might requires separate
product and for marketing mix known as market segmentation.
According to Michael Porter (1970 P:37) with the right segmentation, the right list can
be purchased advertising results can be improved and customer satisfaction can be
increased leading to better reputation
Nelson (1984 page 125) explain that united states in the 18 century provides a broad
segmentation of the population of their country based statistical analysis of house
hold and geo-demogrpahic data. The recent times market has been divided based on
the number of general criteria. Such as industrial or public versus private, although
industrial market segmentation is quite different from consumer market
segmentation but both have similar objectives. Regardless of which type of
segmentation a marketer uses, the secret behind the marketing programmes
recognize customer differences and efficiently highlight the differences to offer
maximum satisfaction to every division.
– To investigate how sales promotion could be used in building image and good will
for the organization.
– To investigate how sales could be lifted substantially through effective targeting and
reward system.