Effect Of Sales Promotion On The Sales Of Mobile Phone Lines

Project and Seminar Material for Marketing

Effect Of Sales Promotion On The Sales Of Mobile Phone Lines


Abstract


The research study on the effect of sales promotion on the sales of mobile phone lines (A study of MTN lines) The purpose of the study is to investigate the sales promotion in the sales of mobile phone lines MTN in Owerri Metropolis. The purpose is also to Know if customers appreciate the incentive used for sales promotion. This research is intended to generally know the effect of sales promotion on the sales of mobile phone lines. Based on the above purpose, some treasures were reviewed to enlighten on the meaning of sales promotion. More concise and comprehensive information were gathered through primary and secondary data which help to elaborate more on this project opic, on the area of population and detaining of sample size and the method in questionnaire distribution. Data collected were analyzed and the following findings were made that there is a significant relationship between programme timing and success of sales promotion. The finding also revealed that there is a significant relationship between successful attainment of sales promotion and values of sales promotion and customer appreciation.


Chapter One


1.0 Introduction

1.1 Background of the Study

Sales promotion is one of the elements of promotional mix. It is a short- time incentive use by marker or producers to include or lure customers to buy their product.

Sales promotion is an indirect from of the promotional mix used to stimulate and guide action. It is a set of the promotional activities that stimulates consumers purchasing and dealers effectiveness. Sales promotion is intended to aid both consumers pull and dealers push it holds a middle ground between advertising and personal selling. It is usually not directed at much longer ground than a typical personal selling efforts, sales promotion can only last for about two months to six months. This means that it can only last over a limited period.

Sales promotion creates something execrate that can arouse interest, offer a buying desire, spark- off an immediate reaction from the audiences; Adirka, Ebue, and NNolin (1996).It is used to retain customers and to attract new ones. These activities are also use to create store traffic. This is because these short terms incentives are being offered free of charge. These activities are thus categorized into consumer sales promotion techniques in terms of their consumer and dealer focus. Customer pill promotion techniques are such activities like sampling price incentive, contest, premium etc while trade push promotion techniques are such activities like merchandise allowance, money bonuses and gifts. Management assistance like training.

Sales promotion is a tool used by manufacturers to include sales with a short time.

Having looked at the background of this study from the perspective of the concept of sales promotion and relating it with the case study of the groups to be surveyed, the researcher wishes to proceeds on the backgrounds of MTN lines in Owerri the MTN lines deals with the production in telecommunication world. These firm found themselves as a rival to other lines like Econet, Globacom and M- Tel etc in the Volatice environment today.


1.2 Statement of Problem

Firms that want to achieve meaningful success in their business are suppose to embark on sales promotion various sales promotional devices can be employed.

Sales promotion when property executed should increase sells sales of the product. There is little wonder whether this is the case with firms that s ell mobile phone line (par) researcher is sure whether companies that sell mobile phone lines embark on sales promotion .

The nature of promo –tools used by such firms is also of concerned to the researcher. It is also doubtful if sales promotion boost sales. It is uncertain to the researcher whether programme timing affects the success of sales promotion. Whether or not customers appreciate the incentives use used for sales promotion is a problems arising from sales promotion which could inhabit consumer purchase of MTN lines. How sales promotion affects consumer behaviour with respect to MTN products is another area of concern.

The researcher is also not sure, how consumer perception of MTN Lines affects their purchase.


1.3 Objective of the Study

The objective of the study are:

  1. To know whether MTN and other mobile lines firms embark on sales promotion.
  2. To know the promotional tools used by the firms
  3. To known the effect of sales promotion on sells
  4. To known if porgramme timing affect the success of sales promotion
  5. To know if customer appreciate the incentive used fro sales promotion
  6. To know the nature of problem arising from sales promotional activities and if such problems could inhabit the purchase of the product.
  7. To know whether sales promotion affect consumer behaviour in terms of purchase of phone lines.
  8. To know whether consumer perception MTN lines affect their purchase of their product.

1.4 Statement of Hypothesis

Hypothesis One
  • H0: There is no significance relationship between progamme timing and the success of sales promotion in the MTN phone line.
  • H1: There is Significance relationship between progamme timing and the success of sales promotion in the mobile phone lines.
Hypothesis Two
  • H0: There is no significances relationship between customer appreciation and value of sales promotion incentive and the successful attainment of sales promotion objective.
  • H1: There is significance relationship between customer appreciation and value of sales promotion incentive and the successful attainment of sales promotion objective.

1.5 Significance of Study

This study is aimed at fulfilling the requirement for the award of Higher National Diploma in Marketing by the instruction. The result of the study will enable me the researcher to understand the importance of sales promotion on the mobile phone line.

To The organization, they will know to design effective sales promotional campaigns, the timing of sales promotional, the timing of sales promotional progarmme and how effective, strong and appealing sales promotional incentives can be in the success of any sales promotion campaign.

To the customer, it will also of a very big help to them, this is because in the reduction of the mobile lines prices in the name, of price – off by the mobile phone industry, both big or small will have access to easy communication. Business will be moving smooth because their has been easy communication with people far and near.


1.6 Scope and Limitation of the Study

The scope of this study covers consumer. Users of GSM lines and operators in the mobile phone line such the MTN, Econet, Global com etc. in Owerri Metropolis. The study and investigations are centered on GSM lines operates VA businessmen, and public servants, it is from of this scope that the researcher would determine the population for the study in chapter three. The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.


1.7 Definition of Terms

Sales Promotion:

Sales promotion is one of the elements of the promotional mix. Sales promotion uses both media and non-media marketing communications for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability.

Marketing:

Marketing is the study and management of exchange relationships. Marketing is used to create, keep and satisfy the customer. With the customer as the focus of its activities, it can be concluded that Marketing is one of the premier components of Business Management – the other being innovation.

Phone Line:

A telephone line or telephone circuit is a single-user circuit on a telephone communication system. This is the physical wire or other signaling medium


1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five


Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain impact of sales promotion on marketing of mobile phone line

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 impact of sales promotion on marketing of mobile phone line


5.2 Summary

This study was on impact of sales promotion on marketing of mobile phone line. Eight objectives were raised which included: To know whether MTN and other mobile lines firms embark on sales promotion, to know the promotional tools used by the firms, to known the effect of sales promotion on sells, to known if porgramme timing affect the success of sales promotion, to know if customer appreciate the incentive used for sales promotion, to know the nature of problem arising from sales promotional activities and if such problems could inhabit the purchase of the product, to know whether sales promotion affect consumer behaviour in terms of purchase of phone lines, to know whether consumer perception MTN lines affect their purchase of their product. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of MTNin Owerri, Imo state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up human resource managers, quality assurance engineers, marketing managers and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies


5.3 Conclusion

Sales promotion is of prime importance for business organizations and the customer. Results of the current study conclude that factors such as age, reliable network and effective customer care play a very important role in strengthening customer retention in the telecommunication network industry. Long-term success and sustainable reputation of an organization depends on customer retention. This study supports the view that sale promotion, customer satisfaction and price should remain prime focus for an organization to maintain market share in today’s competitive business environment. The business whose customers are not loyal with them cannot enjoy a respectable position in the market. From the data analysis we can conclude that today’s customer have much awareness of whether sale promotion is giving some sort of value to them or not. To retain the customer for longer period telecommunication businesses should focus on how to increase the sale promotional offerings of their customers. A customer who is satisfied with the offerings and services would be the most loyal customer of the product.


5.4 Recommendation

Operators in the telecommunications industry of Nigeria need to reconsider how they view and employ sales promotion. The use it only for short-term purposes but the study revealed that Sales Promotion can ensure customer retention which is long-term in nature. Marketing managers in that industry can begin exploring all the long-term potentials in sales promotion.


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