Professional Documents
Culture Documents
i
ABSTRACT
The focus of this research work is An Appraisal of Sales Promotion on the Choice of
Mobile Phone (a case study of MTN Nigeria plc). The scholarly research work gives
insight into the views of various authors as concerned with the project subject matter
an appraisal of sales promotion on the choice of mobile phone. The study gives an in-
depth historical background of the company under review. In the researcher’s effort
and desire to achieve his objective, the researcher has chosen to use the descriptive
Bellow way branch Kaduna. A sample size of twelve were randomly chosen for this
research both for the management staff, and customers respectively. The following
hypothesis were formulated for the research: The null hypothesis (Ho). The
alternative hypothesis (Hi). Ho: The null hypothesis: sales promotion does not have a
sales promotion has a significant influence on consumer buying behaviour. The data
collected were presented and analyzed based on the findings, it was discovered that
recommendations were made by the researcher that sales promotion should not be
marketing activities and that sales promotion should be adequately planned and
ii
prepared through putting necessary measures that would yield tangible results to the
organization.
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TABLE OF CONTENT
Title page - - - - - - - - - i
Declaration - - - - - - - - - ii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Abstract- - - - - - - - - - vi
CHAPTER ONE
CHAPTER TWO
2.0 Introduction - - - - - - - - 8
CHAPTER THREE
3.1 Introduction - - - - - - - 26
4.1 Introduction - - - - - - - 29
v
CHAPTER FIVE – Summary of findings, Conclusion & Recommendations
5.1 Summary- - - - - - - 38
5.2 Conclusion - - - - - - 39
5.3 Recommendations - - - - - - 40
Bibliography- - - - - - - - 42
vi
CHAPTER ONE
1.0 INTRODUCTION
The success of any firm largely depends on customers patronage, for any
firm to push its products to the consumers effectively, there is the need to
of the particular product, hence patronage may remain very low. Many
promotional tools are used to communicate with the consumers but sales
promotion tends to be the most effective of all due to the extra incentive it
provides to consumers.
personal selling, advertising, public and public relations that induces and
1
promotional tool. In marketing practice, the application of all promotion
sales force, distributors and the ultimate consumers with the primary
shorten the purchase cycle of the trade and consumers by encouraging them
not all sales promotion campaigns are designed to achieve the same goals,
must think beyond short term sales while the basic goal of most consumers
2
could be to defend current market share, increase consumption through
3
1.1 STATEMENT OF GENERAL PROBLEMS
spite of the achievements there are some problems faced by these firms
strategic decisions on how these trims sell their products to consumers. The
4
Many firms fall into trap due to success of the sales promotion campaigns
copy.
Finally, lack of media timing and support for sales promotion campaigns
which is very critical and should be coordinated with the media programmes
It is obvious that companies can not connect all customers in large broad or
5
behaboviour and responses to benefit offer by the product for example do
people want quantity rather than low price. In an attempt to increase benefit
to consumers, this will aid marketers to know how best to satisfy each
The over all intent is to identify groups of similar customers and potentials
and to respond with appropriate marketing strategic that satisfy the different
of buyers who might requires separate product and for marketing mix known
as market segmentation.
According to Michael Porter (1970 P:37) with the right segmentation, the
right list can be purchased advertising results can be improved and customer
Nelson (1984 page 125) explain that united states in the 18 century provides
6
analysis of house hold and geo-demogrpahic data. The recent times market
has been divided based on the number of general criteria. Such as industrial
division.
7
- To make recommendations on how to improve marketing performance of
8
1.4 SIGNIFICANCE OF THE STUDY
students who may write or make research on similar topixc and serve as
- How can sale promotion build image and good will of the organization?
Kaduna.
9
1.7 LIMITATION OF THE STUDY
formed to be very busy and require for some signatory from the department
The following terminologies are explained below for quick assimilation and
2. Brand equity:- This an intangible asset of added cause or good will that
10
4. Consumer Behaviour :- This is the process and activities that people
11
CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
to stimulate sales of a product and which occur once or over a limited period
12
may imitate their own sales promotion to reduce their inventories eventually
but designed to beef-up sales”. He went further to say that sale promotion
profitability.
that sales promotion offers incentive to buy while advertising offers reason
to buy.
13
2.1 TYPES OF SALES PROMOTION
includes:
As the use of sales promotion increases, marketers must consider what they
hope to achieve, through the campaigns and how sales promotion interact
personal selling.
14
Objectives of Consumer-Oriented Sales Promotion
15
e. To serve as basis for adverts to the ultimate Consumers.
targeted to the trade are based on well defined objectives, measurable goals
includes:
Umerah (2003 p. 153) States the following trade sales promotion objectives
to include:
16
Sales promotion has grown substantially in the recent years. According to
courland and Williams (2001 p. 526) several factors have led to the shift
promotion activities.
b. Declining brand loyalty:- Consumer are becoming less brand loyal and
convenience.
products.
products. The market has become saturated with new brands and as a
Kotler (1994 p. 646) Listed several factors that have contributed to the
Internal factors
External factors
17
1. Internal factors includes:
sales tool
Product managers are under great pressure to increase its current sales
cost
level is the key to closing the loop between the customer and sales.
selling it.
18
2.4 SALES PROMOTION TARGET AUDIENCE
Sales promotion techniques are direct inducement that offers an extra value
three.
The consumers
The Consumers:- These are the core target audience of sales promotion
such as samples, coupons and free packs to attract switchers, stimulate sales
The dealers:- These are the middlemen that link the manufacturers with the
Consumers.
19
The company sales force: These are company’s sales men employed under
and training.
to purchase large quantity of a brand and shorten the purchase cycle of trade
include:
SAMPLING
20
Courland and Williams (2001 p. 539) Described sampling as “ a variety of
methods in reaching the Consumer include door-to door direct mail, in store
21
COUPONING
Blattberg and Scott (1990 P.364) viewed it “as giving certificates that
PREMIUMS
Premium reflects the quality of the product and are used in building product
image and positioning in the market. The two basic types of premium are
free premium and the self -liquidating premium which are used in offering
instant gratification for consumers but the cost of offering premium is very
high.
22
prizes” The difference between them is that, in contests consumers compete
for price on the basis of skills and ability, the company determines winners
chances through random drawing that may or may not have entry
requirement
BONUS PACKS:
regular price providing in larger container or extra unit. Bonus packs result
in lower cost per unit for the consumers, Provide extra value as well more
product for their money. Bonus packs give marketers a direct way to provide
CONTINUITY PROGRAMMES
oriented sales promotion technique which tends to retain brand users over a
23
usually receives stamp for every dime spent at a participating store where
which the pack will carry “ money –off offer” on the packaging thereby
reducing the price of the product. This price-off deals ensures that
promotional discounts reaches the Consumer rather than being kept by the
received by dealers because it can create pricing problem and resellers may
EVENT MARKETING
24
These are sales promotion techniques that are designed to motivate resellers
Blattberg and Scott (1990 p.358) pointed out that “ point of purchase
product disability is the basis goal of point of purchase displays and also
25
reference manuals and other informative study materials like vises cassettes
Kotler (2000p.603)
dealers sales force to stimulate their selling effort and support dealers with
not want their sales people to devote their time and effort to win Consumers
TRADE ALLOWANCE
Courland and Williams (2001 p. 560)said that” probably the most common
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manufacture’s products”. Trade allowance is of three types which include
BUYING ALLOWANCES
redactors on merchandise ordered during a fixed period. These are often give
manufactures for each space or slot on the shelf or in the ware house that
Trade shows:- Lodish and Leonard (1986. p 428) dexribed trade show as
27
writing orders from Consumer. Trade show are particularly valuable for
that can serve as of valuable leads to follow up through sales calls and direct
marketing.
DEALERS LOADERS
oriented promotion where the cost advertising is shared by more than one
different products and the individual manufacturer reimburse the retailer for
their own portion of the advertisement but certain requirements must be met
28
trademarks, content and format verification that the advertisement was run is
29
2.6 FACTORS THAT DETERMINE THE SALES OF PROMOTION
TECHNIQUES
SIZE OF INCENTIVE
those who turn in proof –of – purchase sales- sweepstakes might not be
DURATION OF PROMOTION
30
Marketers have the responsibility of deciding the duration of promotion
because if the duration is short, many prospects will not be able to take
advantage of the promotion. It the promotion runs too long, the deal will
loose some of its “ act now” force. Promotion duration varies by product
DISTRIBUTION VEHICLE
The marketer has to decide and choose a distribution vehicle to reach the
target audience considering the cost and impact of the sales promotion
campaign.
TIMING OF PROMOTION
The marketing manager must establish the timing of the sales promotion
These dates are used by the promotion, sales and distribution departments in
31
In order to effectively carry out sales promotion campaign, marketers must
determine the total sales promotion budget through choosing the individual
promotions and estimating their total cost the cost particular promotion
sell-in time. Lead time is the time necessary to prepare the programmes prior
32
measure sales promotion effectiveness sales data consumer surveys and
experiments.
The first method involves using scanner sales data which are available from
sales data (information resource centers) can analyze the types of people
who took advantage of the promotion, what they bought before the
promotion, and how consumers behaved later towards the brand and other
brands. The information gotten from the scanner data can be track whether
the sales promotion campaigns led more consumers to buy the product
immediately and after the promotion period, this information can then be
used to calculate the increase in revenues that stemmed from the promotion.
many consumers can recall the promotion campaign, what thought they have
of it, how many took advantage of it and how the promotion affected
than they appear because some sales promotion tools are inevitably
33
The third method involves conducting experiments to evaluate the sales
inorder to compare the results of the two sales promotion campaigns. This
method involves bearing the costs of special promotion , extra sales force
big Nigerian companies mainly rely upon in reaching out to their customers
in distributing coupons, free samples, bonus packs and games e.t.c. but their
broad strategies that undermines the firing of the ammunitions are not strong
enough.
Finding new prospects and new markets have become the concern of many
34
new potential consumers and most times many good prospects are
overlooked marketing analysis can aid the search for prospects by per-
determining those market segments that can afford the greatest used of the
by first determining the segments that need the products and their relative
change both the shape and location of the demand pattern of both
and other promotional tool. schemes. Obviously, the degree to which the
campaigns.
35
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
The main purpose of this is to discuss the methods and procedures followed
in designing this research work. A research of this kind demands that the
research method must be relevant and applicable to the study. The chapter
For the purpose of this study the researcher supposed to cover all the
branches of MTN Nigeria plc which comprises of their staff customer and
their major distributors through out the country. But due to some physical
and financial problem in carrying out this research, it was restricted, this
research work area, that is Ahmedu Bello Way, kaduna branch, which
Kaduna.
Since research of this nature is aimed at finding out facts about certain
things, the researcher has chosen to use the descriptive research method.
36
Descriptive research involves describing markets characteristic or attributes.
The term population means the total number of all units which virtue
homogenous groups.
The sample size selected for this study, consists of 12 staff both
The size considered adequate for this research work. Because they both
37
Validated questionnaire
Personal interview
Documentation
The researcher made a draft and reliability was obtained on the other hand
by giving some of the questionnaire to some few selected staff of MTN staff
38
3.7 METHOD OF DATA ANALYSIS PRESENTATION
The techniques employed in the analysis of data collected are the simple
percentage method. The choice is to make for easy tabulation and clarity of
However, for proving of the hypothesis, the chi-square techniques was used
X2 = ∑ (0-E)2
Where
X2 = The chi-square
∑ = Summation
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CHAPTER FOUR
4.0 INTRODUCTION
This chapter deals with the presentation and analysis of the data collected
from the study work. The method for data analysis is the simple percentage
ratio. The researcher made analysis of what was obtained from investigation
MANAGEMENT/STAFF QUESTIONNAIRE
The presentation, analysis and interpretation are obtained below shows the
40
S
RANGE TALLY PERCENTAGE
o ur
25 – 30 7 58.33
ce :
31 – 36 3 25
37 – 42 2 16.67
43 and above - -
Total 12 100
From the table above, it is clear that the organization has a high desire for younger
workforce to enable it meet with its policy of employing the youths for a start up
so as to cope with the over time and stress. 7 respondents representing 58.33
percent fall. Within the age range of 25- 30, 3 respondent representing 25 percent
fall within 31 – 36 and 2 respondent representing 16.67 percent falls within 37- 42
o Female 8 66.67% ur
ce Male 4 33.33% :
Total 12 100%
41
The table above shows that 8 respondents representing 66.67% are female,
Total 12 100%
1 – 2 years 5 41.67%
3 – 4 years 4 33.33%
5 – 6 years 3 25%
From inception - -
Total 12 100
42
Source: Field Survey 2013.
The table above shows the organisation in terms of years of operation with 5
inception.
Plc?
Table 5.
So
OPTIONS RESPONDENT PERCENTAGE
urc e:
Annually 12 100%
Monthly - -
Total 12 100%
The above table shows clearly those 12 respondent representing 100% which
annual basis.
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OPTIONS RESPONDENT PERCENTAGE
Yes 12 100%
No - -
Total 12 100%
segmentation done?
Table 7.
Geographic 2 16.67%
Demographic 1 8.33%
Behavioural - -
Psychographics 2 16.67%
Total 12
44 100%
Source: Field Survey 2013.
_
The above table 7 respondents representing 58.33% indicated that the
organisation uses all the bases of market segmentation to divide its market to
demographic method.
Table 8.
Yes 10 83.33%
No 2 16.67%
Total 12 100%
45
The above shows that 10 respondents representing 83.33% agreed with the
concept that market segmentation has serious impact on the product policy
that market segmentation those not have impact on the product policy of the
organisation.
Table 9.
Yes 9 95%
No 3 25
Total 12 100%
46
The above shows that 9 respondents representing 75 percent (%) accept the
fact that sales promotion gives the organization positive image or good will,
while 3 respondents representing 25 percent (%) do not agree with the fact.
Table 10.
Yes 8 66.67%
No 4 33.33
Total 12 100%
The above shows that 8 respondent representing 66.67 percent (%) said that
by the organization?
47
Table 11.
Yes 12 100%
No - -
Total 12 100%
The table above shows that 12 respondent representing 100% are the opinion
that sales promotion should be fully and whole heartedly maintained by the
orgnaization.
Question 12. Do you think that sale promotion have helped to give the
Table 12.
Yes 12 100%
No - -
Total 12 100%
48
Source: Field Survey 2013.
positioning.
Question 13. If yes from question 12, how successful have this been?
Table 13.
Successful 3 25%
Not successful - -
Total 12 100%
Table 13, shows that 9 respondent representing 75% opined that sale
said that sales promotion have been successful in giving the organisation a
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50
Question 14: Would you to encourage the organisation to continue to
sales promotion?
Table 14
Yes 12 100%
No - -
Total 12 100%
Question 15. With the effective sales promotion for efficient marketing
Table 15
51
OPTIONS RESPONDENT PERCENTAGE
High 3 25%
Fairly high -
TOTAL 12 100%
The table above shows that the expectations of customers are very high,
QUESTIONNAIRE
Male 9 75%
Female 3 25%
TOTAL 12 100%
52
Source: Field Survey 2013.
The table above shows that the numbers of customers that are male are 75%
SSCE 5 48%
ND/NCE 3 25%
BSC/HND 4 27%
Others - -
Total 12 100%
From the table above 5 respondents representing 48% are SSCE holders, 3
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Question 3: Marital status of respondents
Married 3 25%
Single 9 75%
Total 12 100%
The above indicates that the married ones are 3 respondents representing
single. This implies that single ones constitute majority of the respondents.
TOTAL 12
54 100%
Source: Field Survey 2013.
From the analysis given above, majority of the respondents are between 30-
years are 30% while respondent that are above 20 years and 21-30 are 15 %
each.
Student 7 58.33%
Civil servant - -
Unemployed 2 16.67%
TOTAL 12 100%
55
From the analysis on table above student had the highest percentage as
respondents were 75% of the total population, 3 were self employed while
civil servant nil. This implies that student patronage MTN product more that
56
Question 6. How frequent do you make you purchase?
Daily 5 40%
Occasionally 5 40%
Weekly 2 20%
TOTAL 12 100%
The above table shows that 5 respondents representing 40% purchase their
good daily, 40% purchase occasionally as indicated in the table above, while
Question 7. Have you ever complained about the products you bought
Yes 10 75%
No 2 25%
TOTAL 12 100%
57
Source: Field Survey 2013.
The table above indicate that majority of the respondent had complain at one
time or the other about product bought from the company, while 2
Yes 10 75%
No 2 25%
TOTAL 12 100%
The respondent from the above table agreed that the promotional activities
58
4.2 DISCUSSION OF THE RESULT
The analysis of data carried out in this chapter provide some useful
Regarding to question six which sought to know if MTN segment its market
Question seven designed to know the basis of segmentation and with the
number of response gotten it showed that MTN use all the basis of
segmentation.
an impact on the product policy of the organisation. With ten out of the
59
Question Nine opted to know if the organisation segment its market based
on income, nine out of the twelve respondents chose yes and, this means that
segmentation strategy of the organisation, and with the response of eight out
of the twelve respondents indicated that the organisation is able to meet the
helped the organisation and all respondents said yes it has helped the
organisation.
segmentation has been to the organisation and nine out of the twelve
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With question fourteen which sought to know if the organisation should
This section of the chapter will attempt to prove the hypothesis earlier stated
in line with the findings. This is with the aim to either accept or reject it.
That MTN Nigeria Plc does not apply the market segmentation and product
That MTN Nigeria Plc apply market segmentation philosophy to realize its
objective
5 100 - 100
6 100 - 100
11 100 - 100
12 100 - 100
61
13 100 - 100
14 100 - 100
responses, all the respondents representing 100 percent (%) agreed that the
The researcher have intends to test the draw up hypothesis with the view of
That MTN Nigeria Plc does not apply the market segmentation philosophy
62
ALTERNATE HYPOTHESIS (H1)
That MTN Nigeria Plc apply the market segmentation philosophy to realize
its objective.
PROOF
From the results of the data collected, the alternative hypothesis stands valid.
This can be seen from the table above, with 100 % respondents supporting
In the same vain, the finding reveals that there is consistency with the
63
CHAPTER FIVE
5.0 INTRODUCTION
This chapter is intended to bring out the summary of the research study,
worthy.
5.1 SUMMARY
recognized immediately that the only way to create a niche in the market is
customer’s expectations.
The MTN Nigeria Plc uses marketing concept through it’s marketing officers
to deliver it’s products to its teeming customers across the nation and abroad.
strategy to gain strong market positioning and this has made the organisation
64
to be recognized nationally and internationally, winning more and more
customers.
65
5.2 CONCLUSION
From the study so far, it is clear that market segmentation is necessary for
any business to survive and remains a going concern. Stanton (1981) puts, it
this way: customer oriented philosophy this requires a careful study of the
customers needs within a given sub – market and finding a way of satisfying
those needs.
effectively, and profitably positioning its service. The relevant of the 7ps in
the service industry; price, promotion, place, people, process and physical
5.3 RECOMMENDATIONS
From the analysis in chapter four, the research wishes to make the following
recommendations.
66
Due to the intense competition characterizing the business environment in
the dawn of a new millennium, the MTN Nigeria Plc should make effort to
The Organisation (MTN Nigeria Plc) could explore other areas or parts of
the market rather than being interested only in large corporate customers,
work has not explored all the areas of study to this topic, and therefore other
users or students alike could undertake to make further studies from where
67
REFERENCE
Blattberg and Scott (1990): Sales Promotion Concepts, Methods and Strategies,
Nwokoye N.G (1984) Modern Marketing for Nigeria 3rd Macmillan Publishers
Lagos, Nigeria.
Courland and Williams (2001) Advertising and sales promotion 7th Edition
and Control 6th Edition. Englewood Cliff N.J Prentice Hall London
Splilard P (1984) Sales Promotion Place in the Marketing Mix Business Book Ltd
London
Blattberg and Scott (1990) Sales Promotion Concepts, Methods and Strategies,
68
3rd Edition Engle Wood Cliff NJ Prentice Hall, London.
Nwokoye N.G (1984) Modern Marketing for Nigeria 3rd Macmillan Publishers
Lagos, Nigeria.
Courland and Williams (2001) Advertising and sales promotion 7th Edition
and Control 6th Edition. Englewood Cliff N.J Prentice Hall London
Splilard P (1984) Sales Promotion Place in the Marketing Mix Business Book Ltd
London
69
APPENDIX
QUESTIONNAIRE
Department of Marketing
Business Studies
Dear sir/Madam
service Industry”, with a particular reference to MTN Ahmadu Bello Way Kaduna,
Thanks
Yours faithfully
70
researcher
71
QUESTIONNAIRE (Management)
1) Age
a) 25 – 30 years [ ]
b) 31 – 35 years [ ]
c) 36 – 40 years [ ]
d) 40 and above [ ]
2) Sex
a) Male [ ]
b) Female [ ]
a) 1 – 2 years [ ]
b) 3 – 4 years [ ]
c) 5 – 6 years [ ]
d) From inception [ ]
a) Management Staff [ ]
b) Technical Staff [ ]
72
5) Do you believe that market segmentation strategy is an important
a) Yes { }
b) No { }
a) Yes { }
b) No { }
done.
a) Geographic { }
b) Demographic { }
c) Behavioural { }
d) Psychographics { }
8) Do you think that market segmentation strategy has any impact on the
a) Yes { }
b) No { }
73
a) Yes { }
b) No { }
strategy of MTN?
a) Very Encouraging { }
b) Encouraging { }
c) Not Encouraging { }
organization?
a) Yes { }
b) No { }
12). Do you think that market segmentation have helped to give the
a) Yes { }
b) No { }
13). If yes from question 12, how successful have this been?
a. very successful [ ]
b. Successful [ ]
74
c. Not successful [ ]
market?
a) Yes { }
b) No { }
15). With the effective segmentation for efficient marketing offer, how
a. very high [ ]
b. High [ ]
c. Fairly high [ ]
75
QUESTIONNAIRE (Customers)
1 Sex
a. Male [ ]
b. Female [ ]
2. Education background
a. SSCE [ ]
b. ND/ NCE [ ]
a. BSC/HND [ ]
d. Others [ ]
3. Marital status
a. Single [ ]
b. Married [ ]
76
4. What age group do you belong?
a. Below 20 years [ ]
b. 20-30 years [ ]
c. 30-40 years [ ]
d. 40 and above [ ]
a. Student [ ]
b. Self employed [ ]
c. civil servant [ ]
d. Employed [ ]
a. Daily [ ]
b. Occasionally [ ]
c. Weekly [ ]
7. Have you ever complain about the product bought from the company?
a. Yes [ ]
b. No [ ]
purchase?
77
a. yes [ ]
b. No [ ]
a. 1-2 years [ ]
b 3-4 years [ ]
c. 5-6 years [ ]
d. From inception [ ]
a. Yes [ ]
b. No [ ]
78