The Impact Of Sales Promotion On The Marketing Of New Product And Services

Project and Seminar Material for Marketing

Abstract

This study on the impact of promotion of the marketing of new services with particular note on Globa-com Plc Enugu was carried out some of the following objective.

To determine the Impact of promotional strategies in Creating consumers awareness of Globa –Com
To determine the Impact of promotional strategies on customers patronage of Globa-Com in Enugu Metropolis.

For additional information extensive literature review was conducted, researcher reviewed text books, journals magazines and News papers that are related to this study. In order o achieve thus objective three set if questionnaire were prepare and administered to a population comparison staff/management distributors and customers of Globa-Com Plc within Enugu Metropolis. The sample size of the study was determined using Topman’s formula to determine the sample size for customers, while censuses were used or the relevant staff management.

The data collected were presented on statistical table, analyzed and interpreted.

The hypothesis were tested using chi-square based on the analysis he following finding were made that the personal selling strategy has much impact on customers disposition and patronage. That Globa-com Plc have not fully designed an optimal combinations of promo-tools to enhance their performances.

The researcher wants the coverage of GSM facilities to extent to more areas, particularly the towns and village to engender wider communication in the country.

The researcher recommended that the capacity of Globa-Com should be up grade urgently to enable it support efficient service of GSM in Nigeria.

Chapter One

Introduction

1.1 Background of the Study

Establishment of business including communication services requires that the firms make key decision. These decision affects the total marketing programmes of the firm, simple put the marketing strategy. However one vital area of such decision which demands proper attention is the communication strategy.

Communication industry must initiate promotional polices and programmes to inform, persuade and educate its target audience of the existence of the organization and their products.

Although creation of demand of a firm product may be the ultimate objectives of a company’s marketing promotion, this objective is never achieved at one full swoop. The firm must put in place a set of activities aimed at stimulating demand for their products.

This may involve determining the optional combinations of the promotional Mix, advertising sales promotions, personal selling, publicity, public relation Direct marketing and packaging to achieve its promotional objectives. This optional lend is a function of the promotional resources nature of the product, just to mention but a few.

Adirika, Ebue, and Nnolim (1996: 35) see promotion as the component used by the organization to inform, educate and persuade the market regarding the company’s offerings. Advertising personal selling, sales promotion, publicity and public relations are the major variables of promotion.

Promotion is a vital ingredient of survival and development, without adequate promotion products may not sell, when they their continuity is in doubt. The art and science of marketing promotion, which comprises advertising personal selling sales promotion, public relations and direct marketing is often associated with glamour and flamboyance. Infact most of the budget of some companies is spent on promotions because of the need of survive in the competitive marketing environment.

Edoga and Ani (2000:243) noted that marketing success does not, just depend on good product, good price and efficient distribution. It is also vital that organization communicates its, so offerings to that advertising, personal selling sale promotions public relations, publicity and direct marketing can be used to inform prospective buyers about the benefit of their products persuade then to try and remind them later about the benefits they will desire by using the product.

Modern marketing companies are increasingly recognizing the value of an effective communication and promotion programme for their entire public including G.S.M Global communication.

Ebue noted that modern marketing does not shop at developing a good product, pricing it attractively and making it really available to target customers. The company must communicate to its target audience, tell good stories, disseminate information about the products existence, feature terms and benefits to the target market.

Coppo. J. 91992: 201) confirms that the promotional tools serve as supreme vehicles in competition and provide the only way a market nicher can, hope to penetrate on established market. He went further to state hat for a company to excel above others in the competitive market such a company must value the importance of promotion.

Global-Com is one of the G.S.M service providers in Enugu. The company, has its branch of at Ebeano Estates, since its inection about two years ago. The company has been doing very well. But Global –Com as at now is facing a lot competition from other G.S.M service providers like dropped as a result of this competition form other G.S.M service providers like dropped as a result of this competition, it is necessary for Global-com to appraise its promotional strategies in order to fight competition in the marketing x-rays.

It is the in light of this that the research the promotional on the marketing if new product in Enugu Metropolis. A Case study of Global –Com.

1.2 Statement of Problem

Inadequate sale are often given by entrepreneur as major causes of their failure. A careful review of their circumstance often reveals abysmal ignorance of the need for promotional skill or deliberate neglect of the necessity for co-ordained promotional strategies.

Quite often marketers are very optimistic about sales (patroage0 they conceive the wrong motion that their will sell themselves, forgetting that even the best product /service still need to be stimulated in order to more out of the store. Global –com with its newness in Enugu metropolis need to effectively promote its product because it is new and there is high competition in the market, Infact, the creation of effective promotional strategies is an essential more towards creating a market.

The above statement applies equally to Global-Com services. Despite the numbers advantages inherent in effective promotion, The availability of promotional facilities, the need to use promotional to fight competition in this industry, the use of co-ordinated effective promotional tools in Global –Com operation is barely evident and is negatively impacting on their operation. It is in the light of the importance attached to promotion, that the researcher seems to find out the best promotional activities that could be used by GSM operators like global-Com for improved performance in Enugu Metropolis.

1.3 Objective of the Study

To determine the effectiveness of promotion on sales of Globa-Com in Enugu Metropolis.
To determine customers patronage of Globa-Com in Enugu Metropolis.
To determine the Impact of promotional strategies in Creating consumers awareness of global com in Enugu Metropolis.
To determine the impact of promotional strategies on customers patronage of Global Com in Enugu Metropolis.
To appraise he promotional strategies adopted by global com in Enugu Metropolis for increased profitability.

1.4 Formulation of Hypothesis

Ho: Promotional strategies adopted by global com in Enugu Metropolis do not create consumers awareness of their services.
Hi: Promotional strategies adopted by global com in Enugu metropolis create consumers awareness of their services.
Ho: Promotional activities of globacom does not encourage customers patronage.
Hi: Promotional activities of globacom encourage customers patronage.
Ho: Promotional activities of Globa Com do not lead to increased sales volume of the G.S.M services.
Hi: Promotional activities of Globacom leads to increased sales volume of the G.S.M services
Ho: The promotional actives of Globa-Com do not lead to increase profit of the organisation
Hi: The promotional activities of Globa-Com lead to increase profit for the organisation.

1.5 Scope of the Study

The study concentrated on Impact of promotion in the marketing of News Product.

However, in view of limited time and resources emphasis was placed on globacom activities without Enugu metropolis.

1.6 Significance of Study

This study is not a more academic exercise it holds immense benefits, it will be of significance to the following

Firstly marketing firs and globacom will gain immensely from then study as it will explore the impact of promotions on the performance of their operations and suggest ore success-oriented ways of enhancing the promotional impact.

Secondly, operators of G.S.M serviced will; gain immensely form the study. This is because it will not only measure the effectiveness of each of the promotional mix variable on the performance of G.S.M services but also recommendations or measures to be taken in design and determing the right combinations of the promotion in a more result oriented manner will be made.

Finally, about the researcher and the reader will benefit from the study as the information contained would wider their scope of understanding and knowledge in the area of study which will stir up further investigations.

1.7 Definition of Terms

1. Promotional Strategy

It is controlled integrated programme of communication method and materials designed presents a company and it products to prospective customers (Adirika Ebue Nnolim)

2. Advantaging

Is a group of activities aiming at an including dissemination of information in any paid non –personal form concerning an idea product or service to compare actions in accordance with the import and an identifiable sponsor.

3. Sales promotion

Public relation the deliberate planned and sustained effort to establish and maintain mutual under between an organization and its public (Edoga and Ani)

4. Direct Marketing

It is an interaction marketing system that use one or more advertising media to effect a measurable response.

5. Personal selling

Face to face interaction with one or more prospective purchase for the purpose of making presentation ensuring questions and producing orders.

6. Public relations publicity

A variety of programmes designed to promotion or protect a companies Image or if Individual product (Kotler (1991: 657)

Chapter Five

Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings on the impact of sales promotion on the marketing of new product and services using Globa-com Plc Enugu as case study. The chapter consists of summary of the study, conclusions, and recommendations.

5.2 Summary of the Study

In this study, our focus was to assess the effect of sales promotion on product performance and market share of an organisation using Globa-com Plc Enugu as case study. The study specifically was aimed at examining the effectiveness of promotion on sales of Globa-Com in Enugu Metropolis; determining customers patronage of Globa-Com in Enugu Metropolis; determining the Impact of promotional strategies in Creating consumers awareness of global com in Enugu Metropolis; determining the impact of promotional strategies on customers patronage of Global Com in Enugu Metropolis and appraising he promotional strategies adopted by global com in Enugu Metropolis for increased profitability.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 100 responses were validated from the enrolled participants where all respondent are staff of Globa-com Plc Enugu.

5.3 Conclusions

Based on the findings of this study, the researcher made the following conclusion.

There is a direct relationship between sales promotion and the sales volume of Globa-com Plc Enugu.
There are various ways in which sale promotions has increased sales volume and enhance profit levels in the company among which are; attracts more consumers, increase customers patronage, increase product awareness and increase customer loyalty.
Sales promotion creates permanent consumer acceptance of a product.
The numerous ways through which sales promotional strategy influence consumer permanent acceptance of a product include; through rewarding existing loyal customers, through bonus pack schemes, premium (free gifts), delivery of product sample to consumer’s door, through coupons offering a discount off the usual price, through cash refunds, through rebates redeemable after purchase and through sweepstakes.
Business operations improves through strategic sales promotion.
Companies business operations has improved as a result of strategic sales promotion. The improved areas include; market share, revenue, in and out flow of cash, and productivity.

5.4 Recommendations

Based on the findings and conclusion the study recommend that;

Companies should define their sales promotion objectives and their customers should be well informed in order to achieve the stated objective.
Sales promotion records should be well kept after the promotion in order to evaluate the results.
Companies should involve the customer retailers in sales promotional activities if they need to meet the goals stipulated for such campaigns. This is because customer retails deal directly with consumers hence they can give adequate feedback on promotional activities used.
The management should periodically evaluate the contribution of sales promotion relative to other promotional tools.
Management of organizations should ensure effective integration of communication tools to ensure that the intended objectives for all promotional tools are achieved.

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