IMPACT OF SALES PROMOTION ON CUSTOMERS’ LOYALTY IN THE NIGERIAN TELECOMMUNICATION INDUSTRY.
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IMPACT OF SALES PROMOTION ON CUSTOMERS’ LOYALTY IN THE NIGERIAN TELECOMMUNICATION INDUSTRY.
Chapter One:
1.0 Introduction
1.1 Background of the Study
Every business seeks profit. Sales growth is widely regarded as one of the keys to profitability. To increase sales, a significant number of customers must repeatedly choose one’s product above its competitors. One of the most effective ways to ensure this is to create brand loyalty for one’s product or service.
Brand loyal customers are more inclined to choose their preferred products and/or services over competitors on a regular basis. Given that consumers are picky about their purchases, and rival brand producers are unwavering about product or service quality while relentless in their marketing,
wiggle room for product in a highly competitive environment is minimal or nonexistent, and the margin of error is narrow. Brand loyal consumers are an important, albeit sometimes unconscious, support base for a product or service in the heated competition for patronage.
Broadening and deepening the base of brand loyal consumers is a major goal for any organisation when developing a marketing plan for its brand. Indeed, some consider brand loyalty to be the ultimate marketing goal (Reicheld and Sasser, 1990).
As a result, this issue prompted research into sales marketing and consumer loyalty. Sales promotion is unavoidable for any organisation that wishes to increase sales.
According to the American Marketing Association (AMA), sales promotion is “media and non-media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality”. However, this definition does not cover all aspects of current sales promotion.
Schoell and Guiltinan (1996) define sales promotion as any action that provides an incentive for a limited time to induce a desired response from target customers, corporate salespeople, or intermediaries.
Jobber (2004) defines sales promotion as a set of incentives for customers or the trade that are intended to encourage purchase. Sales promotion, a crucial component of marketing campaigns, is a set of incentive tactics,
most of which are short-term in nature, aimed to encourage trade consumers to purchase specific items or services more quickly or in larger quantities. Sales promotion is essential for both retaining existing customers and recruiting new ones.
According to the literature, only customers who make recurring purchases are profitable. This demonstrates the importance of sales promotion, and further research is required to fully realise its potential.
Against this backdrop, this research seeks to enhance our understanding by demonstrating that sales promotion must be incorporated in order to acquire client loyalty in the Nigerian telecommunications business.
In Nigeria, the telecommunications market is highly competitive, and operators use a variety of sales promotion methods to appeal to and attract customers.
The Nigerian telecommunications business is attaining maturity, with declining average profit. With severe competition, telecommunications operators must work hard to minimise costs, acquire new customers, keep existing ones, and increase profits in order to secure the long-term success of their operations.
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