An Evaluation Of Sales Promotion In Increasing The Levels Of Network Patronage In The Telecoms Industry
The study examined sales promotion as a persuasive activity hence is the direct and indirect communication used by firms to influence present and potential customers fro the purpose of making sales. This study was in the main time, exploratory and descriptive. Data were collected on source specific objective adopted for the resources. Data collection method employed primary sources eg personal interviews and questionnaire and secondary data example books, newspaper and so on. These data were analyzed with some simple statistical looks such as percentage tables and significant level. The study also considered whether ‘advertising medium message to the target audience among others. It was known that the philosophy of the company mobile Telecommunication Network Nigeria limited Aba promotion is not different from what other marketing companies have been practicing. Sales promotion has great influence in the buying behaviour of customers. Most industries in Nigeria have riot yet embraced full promotional consciousness. Effective sales promotion could help companies to survive the stifle competition in business, operation.
It has been discovered that sales promotion as one of promotional tools, it is very important to mobile phone industries such as MTN Uyo.
This project/research work evaluate the impact of sales promotion on the choice and use of mobile phone times when sales promotion is carried out.
This research work will be benefit to the firm in study (MTN) customers and public at large. This is because, at the end at this research work and interested person or the firm will see how sales promotion affect the sales of mobile phone times.
The research himself is of great interest is the study because of the prevailing sales promotion going or the communication sector.
1.1. Background of the Study
This has to do with the situation analysis of the firm in question via MTN Uyo. It is also known as SWOT analysis which, constitutes the strength, weakness, opportunity and threat of the firm. Therefore, the research want to find out the relationship between sales promotion and the service of MTN UYO.
MTN Uyo has been trying in the area of sales promotion and this has marked up the sales of MTN Lines (SIM PACK). But the researcher observes that MTN Uyo should continuously embark on sales promotion in order to retain its world market share.
In the same vein, it have been observed that other mobile phone industries such as Celtel and Globalcom are up and coming in the area of sales promotion.
This means that there is shift competition existing in the market of mobile phones lines. It was also the adventure of sale promotional campaign that has made the former monopolist (NITEL) in communication to lose its market share.
MTN Uyo should identify new market opportunity by studying the buying behaviour and needs of consumer on coming up with the necessary sales promotion. In achieving this goals, such question should be administered, who are the customers, what do the want; how and where do they want it, who are the potential and buyer; why are they not ready to buy; how much will they want to buy and at what profit to the firm.
A question arose, whether advertising have not achieved the aim of increased sales in MTN lines (SIM PACK). The answer tot his is (not even extent). Advertising was pivotal way of making increased sales but nowadays it doesn’t work like sales promotion.
Little wonder why Stanton (1991) defined sales promotion as activities other than personal selling, advertising, publicity that stimulates consumer purchasing and dealer effectiveness such as displays, shows, exhibitions and demonstration.
The market of MTN lines (SIM PACK) constitutes the public at large with dynamic nature. It becomes necessary to embark on sales promotion incentives.
One may ask how far sales promotion can go to ensure an increased sale of mobile phone lines. It is therefore n the course of answering this question that prompted the researcher to embark on this research work.
1.2. Statement of Problems
The pivotal aim of very research work is to solve problems deleting to the study. There are variable that affect the full administration of sales promotion in this mobile phone industry (MTN) such variable are programme timing, programme design appreciation of sale promotion by customers and the channel of reaching the target market with sales promotional programmes.
One may ask why Nitel is at the of communication today. It is because of the application of marketing concept and the aforementioned sales promotional activities.
Therefore, the research observes the problems as follows:
- Lack of sales promoting programme timing.
- Inadequacy of formulating programme design stragies which is general towards achieving a positive response from customer during sales promotional campaign
- Valueless and unapplication of sales promotion incentives by customers.
The above problems will be investigated by the researcher so as to proffer solutions to them at end of this research work.
1.3. Statement of Objective
The general research objective is to evaluate the impact of sales promotion on the sales of mobile phone lines.
The study in specific term seeks to;
- Find out the extend customer appreciate the value incentives use in sales promotion campaigns.
- Investigate the effect of sales programme timing on the success of sales promotional programmes and strategies in MTN.
- Measure the effect of programme design on the achievement of the objectives of sales promotional campaigns.
- Identify the factors limiting against the application of sales promotion as a method pf increasing customer patronage.
- Suggestion and recommend how best to apply sales promotional programmes
1.4. Research Question
This is the objective of the study produce in question from the following questions have been found relevant by the researcher as a tool of achieving of this research work. They are;
- What is the relationship between effective sales promotional programme and increase in sales volume in the mobile phone industry (MTN)?
- What is the relationship between programme design and sales promotion campaign objective attainment?
- What is the extent to which customers appreciate and value sales promotion incentives of what effect are the channel used to reach the customer on the sales promotional programme?
1.5. Significance of Study
Significance from it denotation is the importance of the study.t his research will be of benefit to the following set of people:
- Users/Customers/ Market of GSM Phone
- Operators / mobile phone industry
- The public
It is the customers that benefit most in the sales promotion. This is because it reduce the price of MTN lines, considering the incentives associating sales promotion.
To the MTN industry, it is of great important , the organization will have to know the following; timing of sales promotion programme, effectiveness of continuous sales promotion, designing of promotional campaigns.
Since communication have take a wide space in our society anything the society.
1.6. Limitation of Study
This is concerned with the problem encountered in this research work. The problems are:
The time given to the researcher to embark on this study starting from the day of approval wasn’t enough because as a student in ND II Marketing, I have yet another eleven courses to study.
This research work was hampered by financial problem such as typing, cost of transportation.
Some of the respondent view couldn’t respond positively. Other failed to return their questionnaire to the researcher because of one reason or the other.
1.7. Definition of Term
Under this heading, terms used in the research work writing will be explained briefly
This means strength, weakness, opportunity and threat. It is a feature of situation analysis.
The percentages of customers a firm has in the total market.
Those that have not started buying the product of a firm.
Something that is given to someone (customer) that encourage him to do something (buy).
Person who answers question
The only producer and seller of a product
A concept that based on customer orientation. It is a concept that makes consumer the king.
An amount of money deduct from the cost of something.
Summary, Conclusion and Recommendation
In this study, our focus was on the evaluation of sales promotion in increaseing the levels of network patronage in the telecoms industry. The study specifically was aimed at highlighting the extend customer appreciate the value incentives use in sales promotion campaigns, investigate the effect of sales programme timing on the success of sales promotional programmes and strategies in MTN, measure the effect of programme design on the achievement of the objectives of sales promotional campaigns, identify the factors limiting against the application of sales promotion as a method pf increasing customer patronage and suggestion and recommend how best to apply sales promotional programmes. A total of 30 responses were validated from the enrolled participants where all respondent are drawn from staff of Mtn.
Based on the finding of this study, the following conclusions were made:
- There is a relationship between effective sales promotional programme and increase in sales volume in the mobile phone industry (MTN).
- There is a relationship between programme design and sales promotion campaign objective attainment.
- Customers appreciate and value sales promotion incentives.
- The channel used to reach the customer on the sales promotional programme are of good effect.
Based on the responses obtained, the researcher proffers the following recommendations:
- The service providers should try as much as possible to organize contest on regular intervals in order to influence customer perception of their product in Akwa Ibom State.
- Mobile telecommunication network service providers should offer premium to customers in form of goods they buy one and get one free, Voucher/recharge card doubling encourages customers to increase purchase of MTN product and reward creates influences customers to say good things about the company’s offering explained the influence of sales promotion on customer perception of MTN product in Akwa Ibom State. .
- Mobile telecommunication network service provider should offer price deals, lower prices that motivates already existing customers to increase their purchase of the product, and influence customer’s perception in building brand loyalty of MTN product in Akwa Ibom State.
- It is suggested that manufacturers and sellers should use more of coupon in their promotional efforts. This will help ignorant customers to be better informed about coupon and their uses
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