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APPRAISAL OF SALES PROMOTION ON MARKETING OF GSM SERVICE

APPRAISAL OF SALES PROMOTION ON MARKETING OF GSM SERVICE

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APPRAISAL OF SALES PROMOTION ON MARKETING OF GSM SERVICE

ABSTRACT

The ever-increasing competition in the telecommunications market has encouraged telecom corporations to be more resolute and effective in meeting client demands and wishes than their competitors. In order to succeed in this increasingly competitive industry, these telecom companies use a variety of promotional methods to attract and keep customers.

One of the most prevalent promotional tactics is sales promotion, which provides incentives to customers or the distributor channel in order to increase demand for a product. The purpose of this study is to analyse the influence of sales promotion in influencing telecom consumers’ purchasing decisions.

The study used a non-probability sampling technique, with participants drawn from a community of Abuja-based telecom service users. The respondents’ information was collected using a five-point Likert scale questionnaire.

The questions were examined using SPSS and Microsoft Excel. The study found that sales promotions had a considerable impact on customer purchasing behaviour.

The study concluded that telecom service providers should engage in regular sales marketing activities to maintain a consistent influence on their customers.

Chapter One: Introduction 1.1 Background to the Study

The business environment has grown extremely competitive in the twenty-first century as a result of advances in technology, infrastructure, and global information access.

This has made the environment exceedingly complicated, and consumer tastes are constantly shifting due to the market’s cheap switching cost. Due to the increasing demand for consumers in the market, management of commercial organisations must raise their resources, with a focus on recruiting and maintaining customers.

The ever-increasing competition in the global market has driven organisations to be resolute and ensure that consumer demands and desires are met more efficiently and effectively than competitors (Kotler, 1988). The Nigerian telecom market is one that has seen growing competition over the last six (6) years.

In the highly competitive telecom business, the key to success is to raise awareness, persuade customers, and notify them of the existence of offerings. Sales promotion is an action performed by businesses to promote and boost sales, usage, or trial of a product or service (Aderemi, 2003).

Sales promotion is the process of offering incentives to customers or the distribution channel in order to increase demand for a product. It is a vital part of an organization’s entire marketing strategy, alongside advertising, public relations, and personal selling.

Sales promotion serves as a competitive weapon, providing an additional incentive for the target audience to buy or support one brand over another. It is especially successful at encouraging product trials and spontaneous purchases (Aderemi, 2003).

Sales promotion is a marketing activity that enhances the core value proposition of a product (i.e. receiving more for less) for a limited period in order to encourage consumer purchasing,

selling effectiveness, or sales force effort (Aderemi, 2003). This indicates that sales promotion can be targeted at either the end consumer or selling intermediaries such as merchants or sales teams.

Most marketers believe that a given product or service has a predetermined perceived price or value, and they use sales promotion to alter this price/value relationship by increasing value and/or decreasing price in comparison to other components of the marketing mix (Odunlami and Ogunsiji, 2011).

When determining the relative importance of sales promotion in the overall marketing mix, an organisation should consider its marketing budget, the stage of the product’s life cycle, the nature of market competition, the target of the promotion, and the nature of the product (Odunlami and Ogunsiji, 2011).

In a highly competitive market, sales promotion can be an efficient tactic for convincing merchants to carry a new product or influencing consumers to choose it over competitors’ offerings. Furthermore, sales promotion works best when applied to commodities whose qualities can be assessed at the moment of purchase,

rather than more sophisticated, pricey things that may require hands-on demonstration (Kotler and Keller, 2006). Sales promotion encompasses communication initiatives that provide additional value or incentives to end users, wholesalers, merchants, or other organisational clients. It also encourages sales product trials (Kotler and Keller, 2006).

Consumer purchasing behaviour, on the other hand, is the process by which an individual seeks out, selects, purchases, uses, and discards goods and services in order to meet their needs and desires.

customer behaviour has a direct impact on the firm’s success, thus they must ensure that they design a marketing mix that meets customer needs. In order to make a single purchase choice, the consumer typically goes through five processes.

These include problem awareness, information search, alternative evaluation, purchasing decisions, and post-purchase evaluation. Actual purchasing is merely one part of the process, and not all decisions result in a purchase. Also, not all consumer decisions will comprise all steps, depending on the level of complexity and risk involved.

However, there are about four types of buying behaviours that consumers exhibit; these include a routine response, which requires very little search and is used when purchasing frequently purchased items, limited decisions,

which is used when purchasing low priced brands in a familiar product category, extensive decision, which has a high degree of economic, performance,

and psychological risk and requires a lot of time in seeking information and deciding, and impulse buying, which is This study will compare the influence of sales promotion on the marketing of GLOBACOM and MTN in Nigeria.

1.2 Statement of the Problem

Service providers, such as telecom operators, must supply offers or services that meet consumer wants and expectations in order for the company to survive financially. To accomplish this achievement, they must first study consumer purchasing behaviour so that they may evaluate their service offers.

Consumers of telecom services go through a series of decision-making processes before making a purchasing choice, which characterise their behaviour in the consumption of the services they acquire from these businesses. The consumer buying process is complex because numerous internal and external factors influence the consumer’s purchasing choice.

Before making a purchasing decision, the consumer considers various possibilities. Sometimes the purchase differs from the previous purchase decision.

Consumers always provide a post-purchase evaluation after acquiring and consuming the service. The consumer determines whether or not he was happy with the services provided. This will be a significant information reference point for the consumer in determining their behaviour in the following purchase.

Because services have experience qualities, moods and emotions play an important role in shaping consumer behaviour.

Specific elements that may influence consumer purchasing behaviour include the size and content of the evoked set of alternatives, perceived risk, brand loyalty, and the attribution of unhappiness, as Telecom is in the service business.

As a result, the purpose of this study is to determine how much influence telecom carriers’ sales promotions have on consumer purchasing decisions. It also aims to identify the reasons why consumers deviate from the conventional buying procedure.

1.3 Objectives of the Study

The overall goal of this study is to determine the effect that sales promotion has in influencing the purchasing behaviour of telecom service consumers.

Therefore, this research seeks specifically:

To learn about the practice of sales marketing in the telecom

To determine what elements contribute to or detract from the practice’s effectiveness.

To evaluate the effect of sales promotion on consumer behaviour in the telecom

To make suggestions on measures for

1.4 RESEARCH QUESTIONS.
This research aims to find answers to questions like:

What are the sales marketing methods used in the telecom industry?

What elements influence the practice’s effectiveness?

How does sales advertising affect consumer behaviour in the telecom industry?
What are the advised strategies to boost sales promotion?

1.5 Significance of the Study

This report would be useful in promoting products and services by telecom operators in Nigeria. This study would also be useful for organisations in the service industry to discover the numerous aspects that influence consumer buying decisions so that they may change their strategy. It will also assist organisations in appropriately allocating their resources, increasing profitability and growth.

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