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An Examination of the Impact of Sales Promotion on the Marketing of Telecommunication Services in Nigeria

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An Examination of the Impact of Sales Promotion on the Marketing of Telecommunication Services in Nigeria.

ABSTRACT

This study was carried out on the examination of the impact of sales promotion on the marketing of telecommunication services in Nigeria – a case study of Globacom, Enugu. Four hypotheses were drawn up and tested in course of the study.

They are – sales promotion does not positively impact telecommunication services marketing; sales promotion activities do not create an edge in a highly competitive telecommunication market; sales promotion activities do not create subscribers’ loyalty to telecommunications brands, and sales promotion activities do not enhance telecommunication services acceptability.

The study adopted a survey method of research and the questionnaire was grossly relied upon for data collection. A sample size of 399 respondents was determined for the study and a copy of the research instrument was administered to each one of them.

However, a total of 21 copies of the questionnaire were either not appropriately filled or could not be retrieved. Consequently, 378 copies were used for analysis.

The internet, library, and Globacom documents/reports were sources of secondary data used in the process of this study.

Data collected from respondents were presented and analyzed in percentage tables, and through the SPSS 17.0 version (software of the computer), the T-test statistical tool was used to test the hypotheses drawn up for the study.

Having tested the hypotheses, the following was revealed – sales promotion does positively impact telecommunication services marketing; sales promotion activities do create an edge in a highly competitive telecommunication market.

Sales promotion activities do create subscribers’ loyalty to telecommunications brands, and sales promotion activities do enhance telecommunication services acceptability.

In view of the findings, eight recommendations were made, some of which bothers on the need to always endeavor to clearly spell out the objectives of the sales promotion campaign, and the need for proper planning when conceptualizing sales promotions campaign.

Furthermore, telecommunications services marketers should be creative and original as much as possible when conceptualizing and designing sales promotion campaigns.

TABLE OF CONTENTS

Title Page … … … … … … … … … i

Certification … … … … … … … … … ii

Dedication … … … … … … … … … iii

Acknowledgements… … … … … … … … … iv

Abstract … … … … … … … … … … v

Table of Contents … … … … … … …. … … vii

List of Figures/Tables … … … … … … x

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study … … … … … … … 1

1.2 Statement of the Problem… … … … … … … 2

1.3 Objectives of the Study … … … … … … … 5

1.4 Research Questions … … … … … … … … 5

1.5 Hypotheses Formulation … … … … … … … 6

1.6 Limitations of the Study … … … … … … … 6

1.7 Significance of the Study … … … … … … 7

1.8 Definition of Terms … … … … … … … 8

References … … … … … … … … … 12

CHAPTER TWO: LITERATURE REVIEW

2.1 A Profile/Structure of Globacom Ltd … … … … … 13

2.1.1 Strategic Business Units of Globacom … … … … … 14

2.1.2 Globacom Products/Services … … … … … 16

2.1.3 Globacom’s Sales Promotion Strategies … … … … 17

2.2 Sales Promotion Tools and Strategy … … … … … 20

2.2.1 Consumer Promotion Tools … … … … … 22

2.2.2 Trade Promotion Tools … … … … … … … 28

2.2.3 Sales Force Promotion Tools … … … … … 32

2.3 Sales Promotion and Product Life Cycle … … … … 34

2.3.1 Determining Appropriate Promotional Strategy

during a Product’s Life Cycle … … … … … 36

2.4 Sales Promotion and Product Acceptability … … … … 37

2.5 Sales promotion and Product/Brand Loyalty … … … 38

2.6 Limitations of Sales Promotion … … … … … … 40

References … … … … … … … … … 42

CHAPTER THREE: RESEARCH DESIGN

3.1 Method of Research … … … … … … … 44

3.2 Scope of the Study … … … … … … … 44

3.3 Population of the Study … … … … … … … 44

3.4 Sampling Techniques and Sample Size Determination … … 45

3.5 Sources of Data Collection … … … … … … 46

3.6 Instruments of Data Collection … … … … … … 46

3.7 Method of Data Presentation and Analysis … … … … 47

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Data Presentation … … … … … … … … 49

4.2 Test of Hypotheses … … … … … … … 64

4.2.1 Test of Hypothesis One … … … … … … … 66

4.2.2 Test of Hypothesis Two … … … … … … … 66

4.2.3 Test of Hypothesis Three … … … … … … 67

4.2.4 Test of Hypothesis Four … … … … … … … 68

4.3 Discussion of Results … … … … … … … 69

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND

RECOMMENDATIONS

5.1 Summary of Findings … … … … … … … 73

5.2 Conclusions … … … … … … … … … 75

5.3 Recommendations … … … … … … … 76

Bibliography … … … … … … … … 79

INTRODUCTION

1.1 Background of the Study

Over the past few decades in Nigeria, there has been an increase in the use of sales promotion tools by marketers in an attempt to achieve and maximize their marketing objectives.

Whatever the product, sales promotion has found its usefulness in one direction or the other. This is especially so with the continuous development of marketing practices such that marketing managers have taken to the use of every available strategy aimed at achieving set objectives.

As Jones (1991: 61) notes, the use of sales promotions has grown in importance to become the most popular tool in the marketer’s kit in America and the world over.

Also, Lancaster and Massingham (1993: 219) observe that the total amount spent on sales promotions in consumer markets in the UK outstrips the spending on media advertising.

This point is further magnified by Czinkota et al (1997: 455) as they explain that due to the cost and clutter of media advertising, better targeting capabilities and easier tracking of its effectiveness, the sales promotions budget has overtaken advertising budget in both the US and Europe.

The adoption of sales promotion strategies in marketing practice dates back to the origin of marketing itself.

BIBLIOGRAPHY

Business Dictionary (2000), Dictionary of Business Terms: Barron’s Educational Series, Inc.
Czinkota M. R., Kotabe, M. and Mercer, D. (1997), Marketing Management – Text and Cases , Cincinnati: Blackwell Publishers Ltd.
Dick, A. S. and Kunal, B. (1994), “Customer Loyalty: Toward an Integrated Conceptual Framework,” Journal of the Academy of Marketing Science , 22 (2), 99 – 113.
Jones, J. P. (1991), The Double Jeopardy of Sales Promotion, Harvard Business Review No.90048: 61.
Jones, M. A., Mothersbaugh, D. L., and Beatty, S. E. (2002), “Why Customers Stay: Measuring the Underlying Dimensions of Services Switching Costs and Managing Their Differential Strategic Outcomes,” Journal of Business Research, 55, 441-50.

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