Promotional Strategies As Tool For Improving Marketing Management In Nigeria (A Case Study Of Niger Insurance Plc)
This study aims to delve into the study of promotional strategies as tool for improving marketing management in Nigeria. The study will be carried out in Niger Insurance Plc from July to December 2011 and all suggestions and recommendations will be advisably relevant to the industry. A sample of thirty (30) respondents was selected through the process of convenient sampling. It was self-administered questionnaire to all the respondents concerned. The results of the study revealed that the majority of the respondents believed that promotion can be potent tool for achieving organizational performance. The promotion activities of the company have enhanced efficiency of its management. With promotional techniques and simplicity of operation and honesty, promotions have positively impacted on sales turnover.
Table Of Contents
- Title Page
- Table Of Content
- List Of Tables
- 1.1 General Description of the Study
- 1.2 Statement of Problem
- 1.3 Aim and Objective of Study
- 1.4 Significance of the Study
- 1.5 Research Hypotheses
- 1.6 Research Questions
- 1.7 Scope of the Study
- 1.8 Definition of Terms
- 1.9 Brief Historical Background of Nigeria Insurance Plc
- 2.1 Introduction
- 2.2 Sales Promotion Programmes
- 2.3 Importance of Marketing Promotion
- 2.4 Consideration for effective promotional Strategy
- 2.5 Customers Relationship Marketing
- 2.6 Customer Database Marketing
- 2.7 Need for Customer Retention
- 2.8 Forming Strong Customer Bonds
- 2.9 Factors that Influence Buyer’s Behaviour
- 2.10 Market Concept Competition
- 2.11 Sales Promotion and Brand Builders
- 2.12 Strategic Management Tool
- 2.13 Major Decision in Sales Promotion
Structure of Promotional Strategies
- 3.1 Introduction
- 3.2 The Setting
- 3.3 Research Design
- 3.4 Population
- 3.5 Sampling Plan
- 3.6 Research Instrument
- 3.7 Validity of the Instrument
- 3.8 Administration of the Research Instrument
- 3.9 Procedures for Analysis of Data
- 3.10 Decision Rule
- 3.11 Coding Procedure
- 3.12 Limitation and problem of the Study
Data Interpretation and Analysis
- 4.1 Introduction
- 4.2 Analysis of Questionnaire Rate
- 4.3 Analysis of Data According to Research Statements
- 4.4 Testing of Hypotheses
Summary of Findings, Conclusion and Recommendation
- 5.1 Summary of Findings
- 5.2 Conclusions
- 5.3 Recommendations
- 5.4 Suggestions for further Studies
-  Questionnaire
-  Chi-Square
1.1 General Description of the Study
A Marketing Promotional Strategy is saliently concerned with the role be played by each of the promotional mix elements towards effective and efficient dissemination of information potential customers and clients. Promotion practices are essential especially under condition of imperfect competition, noon-rational behaviours of customers and incomplete market information.
Intensified competition among different insurance companies may well inform the need for serious attention to promotion. The emphasis to be placed on promotion has relevance for both products and services marketing. The Insurance marketer needs to understand the environment in which the function, and to look at the promotion mix elements those he uses and those which he must adjust.
Promotion Strategy can therefore, be seen as the design and management of a marketing subsystem for the purpose of informing and persuading present and potential customers and clients.
A firm should coordinate all its promotional efforts as a complete subsystem in the total marketing system. In economic terms, the basic purpose of promotion is to change the location and shape of the demand curve for a company’s products, service or idea. Through promotion, a company attempts to shift a product’s demand curve to the right, and change the shape of the curve. Through the use of promotion, a company hopes to increase a products sales volume at any given price. It also hopes that promotion will effect the demand elasticity for the product, that is, making the demand elastic when the price decreases.
The basic purpose of promotion strategy is to let actual and potential customers, clients know about the product/ service, i.e. to disseminate relevant information. Nigerian corporate marketing managers should determine what combinations of advertising, personal selling and other promotional tools will be the most effective promotional strategy for their companies. Four factors that should be taken into account in deciding on the promotional mix.
- The amount of money available for promotion
- The nature of the market
- The nature of the product
- The stage of the products life cycle
The major purpose of promotion is to inform, persuade and influence people including customers, clients and other relevant publics.
A marketing promotions strategy/policy prescribed the role to be played by every means of disseminating information to consumers about a particular product or service. The relevant aspects of formulating this strategy include such topics as determining the information to be communicated to consumers, clients, the budget for it, and the choice of means or tools for disseminating information.
Meeting promotion is also salient in the strategy or market segmentation. Promotion is used to inform market segments of the availability of products or services produced for them to meet their precise needs and wants. Good customer/company relations should be paramount in a Nigerian product or service organization. Nigerian company employees should develop a behaviour that is tolerant, patient, polite, honest and sincere in all their dealings with customers and clients.
Promotional activities and decisions, other than advertising activities and decisions, include special price reduction, free offers, technical leaflets, exhibitions, seminars and conferences, press free edition In appropriate media, planning the size, selecting the administrative methods to be used and nature of the sales office staff, remittent, remuneration and training of the members of the sales department and devising a suitable monitoring service and information system to keep track of results versus plans.
1.2 Statement of Problem
Nigerian business environment is full of uncertainties and instability. Therefore, a Nigerian marketing manager must identify, understand and utilize the major element of the business environment in strategic marketing decisions. Generally, a Nigeria marketing manager operates within the following business environments’economic, technological, legal restrictions, competitive, socio-cultural, political and operating environment among others.
- The economic environment includes inflation rate, interest rate, exchange rate, income per capital, more also as the world experience global economic crisis which is affecting many industrial and organization and also budget constraints.
- The socio-cultural environmental factors are consumers’ and clients’ lifestyles, level of hygiene, customs, beliefs, values, age, geographical distribution and literacy level of consumers and clients.
- The technological components are company’s technical facilities for the production and delivery of goods and services.
- The legal environment includes the business laws operating in land and its compliance.
- The political environment refers to the type of government policies, philosophies, programmes and priorities.
- The competitive environment refers to the alternative companies that could provide products or service to satisfy specific market needs and wants.
- In developing an efficient and effective marketing strategy and policy, it is important for a marketing management to study the elements of any business environment and this must be subjected to SWOT.
1.3 Aim & Objectives of the Study
The aim and objectives of this research is to delve into the study of promotional strategies as tool for improving marketing management in Nigeria.
- Distinguish marketing of goods from marketing of services.
- Examine how the element of marketing mix called “promotion” relates to marketing as Insurance policies services in Nigeria, e.g. advertising, sales promotion and personal selling.
- Provide a general view on Insurance products and examine the risk characteristics that can be the result of lack of promotion, in the face of intense competition and the provision of services that are generally identical in nature.
- Present the theoretical explanations for promotion of services and obtain a theoretical conclusion on the benefits of marketing.
1.4 Significance of the Study
The need for embarking on this project work cannot be over emphasized.
Organization will benefit as involved in the policy formulation and implementation of development and utilization of promotional resources to achieve organizational goals. This work will be an attempt to improve their productivity, increase profit and improve market share as a result of promotional effort.
It will also go a long way in helping future researchers and students alike who might be interested in studying prospects and problems of lack of promotion.
1.5 Research Hypotheses
The following hypotheses will be tested:
- H0: There is no positive relationship between promotional activities and increase in market sales.
Hi: There is a positive relationship between promotional activities and increase in market sales.
- H0: Promotional strategies is not a potent tool for achieving growth.
Hi: Promotional strategies is a potent tool for achieving growth.
1.6 Research Questions
The research intends to answer or find solutions to the following questions.
- Does strategies Marketing Management lead to positive development?
- Can Promotional Strategies be a potent tool for improving marketing?
- Can Promotion enhance efficiency in the marketing management in Nigeria?
1.7 Scope of the Study
In this study, attempt will be made to state the promotional strategies as tool for improving marketing management in Nigeria.
The study will be carried out in Niger Insurance Plc from July to December 2011 and all suggestions and recommendations will be advisably relevant to the industry.
1.8 Definition of Terms
As the research progresses, many terms will be used which the researcher find imperative to define to help simplify the research work and prevent ambiguity in the course of study.
According to Bowman and Asch (2009), states that strategic management is the process of examining both present and future environments, formulating the organization objectives, implementing and controlling decisions and activities targeted of achieving these objectives in the present and future environment. It is in essence, the deployment of the firm’s internal strength and weakness to exploit external opportunities and minimize its external problems or threats.
Strategic Marketing Management:
It is that segment of strategic management of an organization that focuses on the marketing activities that have relevant bearings on both present and future marketing operative of the firm. It is concerned with gaining competitive advantage in marketing which is a continuing process.
Market Driven Strategy:
According to Cravens and Crittenden (2007), emphasize that market-driven strategy is to gain competitive advantage by a firm which calls for analyzing and strategically responding to changing environmental opportunities and threats. These strategies being with accurate understanding of the market and focus on the customer is the basis for deciding how, when and where to compete.
According to Chadlar (2007), it is the determination of basic long-term objectives and goals of an organization, the adoption of courses of action and the allocation of resources necessary to carry out these goals and objectives.
A set strategy for new products, product improvement and product deletion.
This includes the strategy to be used for each distribution channel, including role of middlemen assistance and support provided and specific.
This specifies the role of price in the marketing strategy and the planned actions regarding price.
Identify information needs, planned project objectives, estimated costs and timetable.
It indicates the planned strategic and actions for advertising publicity, personal selling and sales promotions.
1.9 Brief Historical Background of Niger Insurance Plc
Niger Insurance Plc was incorporated on the 29th day of August, 1969 as a Private Limited Liability Company (The Niger Insurance Company Limited) with an authorized share capital of N50,000 to take over the undertakings, assets and liabilities of the Yorkshire Insurance Company Limited, a fully owned British Company that had decided to stop transacting Insurance business in Nigeria from 1969, sequel to the promulgation of the Companies Decree of 1968, requiring all foreign companies in Nigeria to be formally incorporated locally and be operated as such. This was the situation up to December 1973 when Yorkshire Insurance Company Limited of England sold its entire shareholding in the Niger Insurance Company Limited to National Insurance Corporation of Nigeria. The result of the above transaction was that the Niger Insurance became a wholly-owned subsidiary of National Insurance Corporation of Nigeria.
The company is now a fully privatized composite Insurance company quoted on the floor of the Nigerian Stock Exchange. Currently, Niger Insurance Plc is among the “BIG FOUR” in terms of total gross premium income.
The public quoted composite Insurance company presently operates with an assets based in excess of N5billion and a fully paid up authorized share capital of N400 million.
Man Power Base
The management team of the company is made up of trained, experienced and competent professionals with extensive management and technical skills.
Niger Insurance Plc is fully computerized with the most advanced software technology. The computer network is capable of expansion and upgrading to meet with present and future increases in the volume of business.
Niger Insurance plc has also put in place sound reinsurance treaties with local and foreign first class reinsurance companies led by Swiss Re.
These comprehensive securities ensure financial stability and exude confidence in its service to both present and prospective customers.
As a composite Insurance Company, Niger Insurance Plc transacts all classes of Insurance business and offers a wide range of innovative and customer-oriented products and services to its growing clientele.
At Niger Insurance Plc, they are veryflexible in their product development because they realize that no two customers are exactly the same.
Moreover, their products are backed up with one of the most efficient and constantly improving claims settlement procedures in the insurance market.
The following are broad spectrum of the products and services the company is offering:
Life and Pensions
The company’s commitment to rendering the best service in this area of operation places its among the top three companies in the industry with the largest life and pensions portfolio. These products which the company has carefully packaged include:
- Personal Pension and Saving
- Niger Cash Plan
- Child Endowment Scheme
- Deposit Administrative Scheme etc.
The policies relating to the above and designed to provide indemnity against material and pecuniary losses arising out of various risks.
- Marine Cargo
- Fire and Allied Perils
- Burglary and Housing Breaking etc.
Special Risk and Miscellaneous Insurance Business
In this category, the company offers specialized policies to cover losses from risks such as:
- Oil and Energy
- Aviation and Marine Hull etc.
Niger Insurance Plc branch offices are manned by well¬trained and motivated personnel nationwide but are co¬ordinated from five Regional Offices.
- Eastern Regional Office, Port Harcourt
- Lagos West Regional Office
- Abuja Regional Office
- Kano Regional Office
- Ibadan Regional Office
Summary of Findings, Conclusion and Recommendations
5.1 Summary of Findings
Based on the data analysis In chapter four, the underlisted summary of the findings were warranted.
- That majority of the respondents believed that promotion can be a potent tool for achieving organizational performance
- The promotional activities of the company has enhanced efficiency of its management
- With promotional techniques and simplicity of operation and honesty, promotions have positively impacted on sales turnover.
- That the determination of promotional objectives and strategies In organization based on marketing committee and marketing manager.
- The assets base of the organization had increased as a result of the promotion.
- The promotional activities of the organization has increased its customers’ confidence.
- The customers’ patronage of the organization has increased as a result of promotional exercises.
- The organization’s profitability level has been increased as a result of the promotion.
Secondly, marketing represents a very important factor in the success of any business organization especially in the manufacturing sector. The concept of marketing must be understood not only in the sense of making a sale but also in the sense that, it of continuous satisfying customer’s needs. Customer satisfaction has become the modern trends in marketing. This is because customers everywhere are increasingly becoming more sophisticated and demanding better services in order to cope with more complex products and service. For manufacturing companies to go beyond their advertised interest in satisfying the customer or consumer into building relationships, they must know and understand the consumer so well that the service fits him and sells itself. Under this orientation, manufacturing goes beyond satisfying the consumer. It means delighting him. One of the means of doing this is the promotion of manufacture commodities.
With the reference to the above findings, the following are drawn:
There is a relationship between marketing of Insurance products and increase in sales turnover. Promotional strategy companies dissemination of information concerning a company and its products or services. It embraces all those approaches or activities by which customers or clients are informed and influenced either to buy a product or service, or to act positively towards a product or service.
Promotions can be used to influence demand, maintain or increase sales volume and increase or maintain market shares. It can be used to improve product/service and company images. Strategic promotional activities can be used to revive a declining product or service. This aim can be achieved by isolating other uses of such products or services or changing the features, packing and branding of the said products or services.
The organization profitability level has increased, the organization performance is effective and efficient and the customers have a course to smile.
Based on the research work, the following are recommended for implementation:
- The management should be determined, articulate, communicate and share a distinctive and compelling vision.
- The management should establish review and communicate clear goals, values and objectives derived from the vision. Objective should be expressed in terms of measurement outcomes.
- The management should ensure that the company has adequate finance, people, organization supporting technology, management and business processes to implement the agreed strategies and subsequent plans.
- The management should establish and maintain partnership relationship with those people and organization where co-operation will be regarded if the vision, goals, values and objectives are to be achieved.
- Again strong management team with effective strategic leadership are more likely to adopt the correct strategic approach, have a committed, supportive and identify and focus on target markets, develop and sustain capabilities and have excellent customer and client relationships.
- Supply chain, network and joint venture relationship could be involved.
- The management should ensure that promotional activity is an investment project. It should be pre-planned and well researched. Marketing research should not be based on forged information but on accurate consumer information about tastes, location and so on.
- The Nigerian companies are enjoined to combine sales promotion with advertising efforts. This will ensure that the ‘news’ of the promotion is communicated and that the desired level of participation by the target consumer is achieved.
5.4 Suggestions for Further Studies
The following suggestions are made for further studies:
- The marketer needs to understand the environment in which he functions and to look at the marketing promotions mix elements, both those he uses and which he must adjust.
- Secondly, the marketer needs to understand the responsibility of evolving a strategy that will guarantee suitable outlets to present enterprise’s products to its target market, because poor distribution may cause failure of a product even if the quality and characteristics of the product are good and the price competitive.
- Thirdly, each individual in an organization is required to contribute effectively by achieving an appropriate portion of the goals and objectives such as to search for ways to reach out in new directions creating and transforming visions to guide the organization into the future.
- It is however believed that this research will serve as a guide for specialized research being suggested above.
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