SIGNIFICANCE OF PROMOTION AS A COMPONENT IN THE MARKETING MIX ELEMENT ON PROFITABILITY
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SIGNIFICANCE OF PROMOTION AS A COMPONENT IN THE MARKETING MIX ELEMENT ON PROFITABILITY
ABSTRACT
This study examines the significance of promotion as a component of the marketing mix for service organisations (specifically IJBA BANK). This research analyses promotion difficulties and attempts to solve them, as well as reviewing pertinent promotion literature. Data were gathered using both primary and secondary sources.
The primary goal of these studies is to determine whether promotion may increase an organization’s profitability. All relevant data were analysed using simple percentages and squares. Among the findings is that competitions have an impact on promotional activities, but their promotion is not significant.
Based on this, recommendations were made: advertising should always be done when new services, products, or accounts are introduced; marketing personnel should be used to locate customers, evaluate their needs, complaints, and provide possible solutions; and, finally, promotion should be done in newspapers and through other promotional activities.
Chapter one
INTRODUCTION
1.1 Background of the Study
The United Bank for African Limited (UBA) Auchi branch is one of Nigeria’s top commercial banks. It was founded on July 1, 2005, to continue the banking operation that has been carried out in Nigeria since 1949.
At the moment, it is crucial to highlight that UBA amalgamated with Standard Trust Bank on August 1, 2005, in order to meet the central bank’s requirement of a #25,000,000 asset base. UBA branches in Nigeria have surpassed 300 since their merger.
The United Bank for Africans has consistently promoted its services and marketing boards since the 1960s. The UBA marketing department was established in 1978 to serve as the focal point for increasing emphasis on promotional operations that are aligned with the proclaimed interests of the state and federal governments, as well as other authorities.
Some of the marketing department’s activities include assisting customers who apply for loans, supervising the use of such loans, attracting new customers to the bank, and so on. Their goals and objectives:
a. Is to be involved in all elements of the banking industry, offering international banking trusteeship share registration, corporate financing, and computer services through specialised divisions.
b. UBA’s primary goal is to maximise profit at the end of each operating year.
c. As a commercial entity, their ultimate goal is to effectively and efficiently coordinate their activities so that they do not incur losses at the conclusion of the fiscal year.
d. To provide effective planning and control by establishing standards for measuring performance and enabling the organisation to achieve its goals and objectives by staying ahead of the game so that the business can continue to operate without disruption.
It is stated that before profit can be made in any organisation. There must be something to it, which is promotion. According to Asore (2002), promotion is an ingredient used to inform and persuade the market about a company’s items.
Promotion can also be used to educate consumers, such as a write-up about a company’s product in any new paper, bulletin, or magazine, which teaches customers about the product’s characteristics, advantages, use, and benefits. Promotion provides an incentive to buy, which results in a speedier response.
1.2 Statement of Research Problem
Most businesses prefer to improve on the other elements of the marketing mix, with the exception of advertising; they prefer to improve product quality at a reasonable price.
They do not limit themselves in terms of promotion. The research questions listed below were developed to help the researcher conduct this study efficiently.
i. How does competition affect the success of an organization’s promotional activities?
ii. Do promotional tools such as television, newspapers, bulletins, and magazines work effectively?
iii. Has promotion actually increased the degree of profitability in the organisation?
iv. The researcher’s search for solutions to the above question will shape his research.
1.3 Aims and Objectives of the Study
The fundamental aims of this study are to know if organisations actually give promotions, the type and level of clients they give these promotions to. Other objectives include:
i. To promote the use of promotional mix as part of an effective marketing plan.
ii. Determine the importance of promotion as part of the marketing mix.
iii. To determine whether clients are truly satisfied with the level of services provided by most organisations.
iv. Determine the differences between UBA Bank and other banks’ promotional initiatives.
The study’s significance extends to improving the function of promotion in society as a whole. Finally, the findings of this study will provide a solid framework for future research on the impact of promotion as a component of the marketing mix on profitability.
1.4 Research Question and Hypothesis
Based on the research question, the following statement of hypothesis will be used to make statistical inferences about the study variable.
Hypothesis 1.
Ho: Organisational promotional efforts are unaffected by competition.
Hello. Competitions have an impact on an organization’s promotional activities.
Hypothesis 2.
Ho: Promotion does not boost an organization’s profitability.
Hi: Promotion increases an organization’s profitability.
Hypothesis 3
Ho: The promotional mix does not play a major role in an organization’s marketing mix.
Hi: The promotional mix is an integral part of an organization’s marketing mix.
1.5 Scope and Limitations of the Study
This study is intended to determine the importance of promotion in the marketing mix. This study will focus on the significance of promotion as a component of the marketing mix. The study is also confined to UBA Bank, their style of offer, and the number of clients.
1.6 Definition of Terms
ADVERTISING: This is a paid kind of non-personal communication delivered via out-of-store mass media by an identified sponsor.
PUBLIC RELATION: Any communication that promotes a positive image of the retailer among its stakeholders (consumers, investors, government, channel members, employees, and the general public).
PUBLICITY: Any non-personal type of public relations in which messages are disseminated via mass media, the time or space provided by the media is not paid for, and there is no identifiable business sponsor.
Personal selling is the oral conversation with one or more prospective consumers in order to make a transaction.
ORDER GETTING SALESPERSON: Actively engaged. Dosing sales involve informing and convincing customers. This is a true sales representative.
PMS: Promotional, push, or prize money provided by a manufacturer to retail salespeople who sell the producer’s brand.
SALES PROMOTION: Covers all paid communication activities other than advertising, public relations, and personal selling that encourage consumer purchases and dealer performance.
WORD OF MOUTH (WOM): This occurs when one consumer speaks to another.
MARKETING MIX: This is a type of controllable marketing variable that a marketer employs to attain his goal in a certain market segment.
PRODUCT: The product is a collection of tangible and intangible attributes, such as packaging, colours, price, quality, and brand, as well as the seller’s services and reputation.
PLACE OR DISTRIBUTION: Distribution is the physical transfer of a product through distribution channels, such as middlemen, to the customer.
PRICE: When pricing, management must establish the appropriate base price for its product.
PROMOTION: Promotion is an ingredient used in the company’s products.
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