The Impact Of Promotional Mix In The Marketing Of Airline Service

Project and Seminar Material for Accountancy / Accounting

Project and Seminar Material for Accountancy / Accounting

Chapter One


1.1 Historical Background Of The Case Study

In every fact of business, be it profit or nonprofit oriented, the owner of such business concern must focus on techniques to create awareness for its products, services and ideas. For a system of transaction to take place, marketing thus call for more than developing a product, pricing and making it readily accessible to the target market. As firms make good product, they must inform consumer of the products and carefully position these in the consumer’s mind. And to do this, they must use a mass promotion tool called promotional mix.

In the modern economy with dispersed large population, interpersonal communication especially between producing units and their customers is no longer tenable. Hence promotional mix help to stimulate and sustain the vigor and momentum of economic activities through the enhancement of the consumption behavior of the citizens. Also the image of a company is enhanced through the establishment of reputation for trustworthiness of progressive and social responsibility brought about by promotional mix in the minds of both actual and potential customers. But the extent promotional mix is packaged and the awareness created will make the difference both positively and negatively on the intention of gofidr of such business. Promotional mix plays a great role in a nation’s development as the reaction to any customer towards any product or service is enhanced by advertising. The key point of every organization is to sell its product and this can only be done successfully through an advertising campaign.

Promotional mix beyond any drought started as early as 1861 through town criers, local sign post and through local song instruments. (Onyebunagu 1983: 27).

Promotional mix involves four elements, the source, massage, channel and receiver. The source is represented by the advertiser who produces on advertisement which is the message through mass media (communication channel) then to the target audience which is the receiver. The vital part of communication known as facebook is measured in terms of sales realized. Promotional mix intervenes in nearly all aspects of economic and cultural lives. It highlights and stimulates certain vitality in production and trade. Promotional mix give industries, companies like Nigeria airways faster access to the market for the introduction of new products and services and reinforce consumer awareness for the existing products. It also tries to transmit feelings, commitments and convictism as well as to transmit them persuasively. For promotional mix to meet it goal it most have a purpose.

Promotional mix has been defined as any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. (Kotler &Armstrong 1989 p434). Ar. Identified sponsor could be forms, companies, airlines, non- profit and individuals who are in a way identified in the promotional mix massage. With reference to the definition above, promotional mix therefore could be regarded as a Mino to our society. As stated by Hobson 1988, promotional mix is not only a means of informing mass market, but a promotional medium in which government and other organizations can channel their ideas and the Airline induct promotional and seasonal fares etc.

Promotional mix helps to keep the customers abreast of the services the Airline offers at any point in time. If the Airline falls to promotional mix, the public would not be aware of its services and this could give its competitors the advantage of misleading or taking over its customers.

The Airline uses TV, Magazines, Newspaper and Radio for the bulk of its advertisement. Besides in other advertising programmes, the advertiser has to predict through certain principles of budget depending on the means of communication considered which must be well designed and tailored to meet their consumption. Because of the fact new Airlines are being established everyday and the ones already existing are trying one way or the other to outpace the other importance of promotional mix which are awareness creation of its products and consumer persuasion towards the product becomes imperative. ARIK AIRLINE Ltd. Being a national carrier and competing with other foreign airline should use promotional mix as a strategy to differentiate its service from others.

1.2 Statement Of The Problem

As stated earlier, promotional mix is the mirror through which the public gets to know about a company or firm and what they do. Often times a lot of money is spent on promotional mix without ascertaining the return of what is invested in the promotional mix without ascertaining the return of what is invested in the advertisement.

Looking at the activities of the Airline industry in the past three years has shown an increase in Airline patronage which is brought about by increased promotional mix. But sometimes managers complain thus “we are not recording profit compared to when we did not advertise “. Consequently, the purpose of promotional mix which is to induce buyers to adopt favorable attitude towards the Airline products is marred. It is the entire responsibility of the managers to employ promotional mix as a marketing tool. But the unfortunate thing is that most managers create problems for their promotional mix departments in their erroneous use of promotional mix. Many marketing managers do not plan ahead of schedule and this creates problems for their promotional mix Departments which are usually required to operate on schedule.

In the Airline industry, messages are focused on beneficial schemes and the introduction of services in the form of special or discounted fares that can create a difference between it and other Airline. These special fare and discounts help the Airline to outsmart other competitors. In spite of this many marketing Managers focus their promotional mix at the right place but at a wrong time.

The real problem in this study is to find out whether the increase in the Airline patronage and profit is attributed to constant advertisement.


How has promotional mix helped in the selling of Airline services to its customers. Whether the message to be sent out would try to bring out the hidden advantage of a product or service to the public.

Also, the problem of how promotional mix has helped to raise Nigeria Airways customers from negative to positive ranking among its competitors especially in the face of intensive competition from other foreign Airline whom the believe are better equipped than Nigeria Airways

1.3 Objective Of The Study

The main purpose of this study is to critically ascertain various ways in which the Airline advertises its products or service and the benefits derivable from promotional mix.

  1. It will help to find out the tendencies of the audience towards the advertisement.
  2. To find out different strategies employed in promotional mix its products to achieve their goals
  3. To appraise the impact of promotional mix effectiveness on the products of the company.
  4. To find out the problems faced by the Airline when promotional mix its products.
  5. To ascertain the role promotional mix plays in the company
  6. To find out the degree at which promotional mix correlates with change of customers attitude.

1.4 Significance Of The Study

The motivation for this study stems from finding out how promotional mix is employs an effective to promoting the products of arik Airways Ltd. Port Harcourt District.

Furthermore, this study will educate the Airline and advertisers to use promotional mix in order to motivate the consumers to buy their product or services. The result will therefore educate the management of the Airline to know the benefit gained and perhaps the disadvantages associated with frequent promotional mix. Again the result of this research would serve as a reference material to other researchers who may want to carry our similar work in future. Finally, this study would be beneficial to personnel’s in promotional mix/public Relations Department of the Airline and similar ones

1.5 Research Question

  1. How does the type of promotional mix used by the Airline affect its patronage level?
  2. Promotional mix have a positive effect on the profit of the Airline?
  3. Does the Airline encounter some challenges in the process of promotional mix?
  4. Consideration the effect of promotional mix, do you think that the Airline should continue it at present level or set it up.
  5. Does your promotional mix produce a favorable or unfavorable effect on consumers attitude to your airline?

1.6 Research Hypothesis

HOI: The type of promotional mix used does not affect the patronage of the Airline.
HOii There is no positive relationship between promotional mix and profit.

Ho iii Problem are not encountered by the Airline in the process of Promotional mix.
HHii Problems are encountered by the Airline in the process of Promotional mix.

HOiv Promotional mix does not play an effective role in the marking of Airline services.

HHIV: Customers are not responding favorably to the services of the Airline
H1V: Customers are responding favorably to the services of the Airline

1.7 Scope Of The Study

This research was limited by some factors such as time factor which was the greatest limitation while conducting research study. Due to the time constraint, this research work has been restricted to port Harcourt District. The greatest limitation is that the company is now running skeletal services in all its administrative areas.

Because of its problem with Nicon over insurance plate cover. A study of this magnitude would have sampled many Airline offices as possible to ascertain then impact of promotional mix, due to the management towards this direction it was cut down to facts collected

Second the research have the problem of finding which those because the researcher depend on his parents for money difficulties associates with obtain information from respondent was also a limiting

1.8 Definition Of Terms

Advertising is a form of non-personal presentation goods, services or ideas to a group, which is aimed promoting if the sales of goods and services gaining acceptance of any ideas or point of view.


Means of dissemination of information e.g. radio, TV. Motion picture and press (standard dictionary of English language

Promotion Mix:

This is a specific combination of promotional method used for one product or a family of products.

Service Industry:

This is defined as a business that does work for a customer , and occasionally provides goods, but is not involved in manufacturing .

The service industry in an industry in that part of the economy that creates service rather than tangible objects.

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