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PROJECT TOPIC: The Effects of Sales Promotion On The Sale of Mobile Phone Line

The Effects of Sales Promotion On The Sale of Mobile Phone Line

 

ABSTRACT

This research project examines the effects of sales promotion on the sale of mobile phone line. Taking cognizance of the ever achievement of sales promotion as a short term incentive that lure customers into the net of the producer. The main objectives among other things were; To empirically investigate the effect of sales promotional programme on the sale of Glo mobile phone line, to determine whether consumer frequency of purchase of the Glo mobile line is greatly influenced by sales promotion and to identify ways and means in which Globacom Nigeria limited can improve upon its sale promotional effort.

An in-depth literature review was carried out on related materials such as; textbook, journals, magazines and newspapers. Data were also sourced from respondents. Topman’s formula was used to determine the sample size. The research instruments used in sourcing data were questionnaires and oral interview. These data were also used in testing the three hypotheses formulated. The researcher discovered that effective sales promotional programme contribute to increased sales volume of Glo mobile phone line, and that consumer frequency of purchase of Glo mobile phone line is greatly influenced by sale promotion. The researcher also recommends that the Globacom Nigeria limited should continue the use sales promotion as its principal promotion tool for the sale of its product.

 

CHAPTER ONE

INTRODUCTION

 

1.1 BACKGROUND OF THE STUDY

Obviously, the changes in the economic existence of people and improvement in their standard of living with the increasing need of the people have led to the development of marketing opportunities in the business world. Producers in order to satisfy the customers develop new products to meet the changing need for information about wider variety of people. But, as the economy grows and expands, there is need for a better understanding of products available for consumption. This is necessary, for a better understanding of product use and an increase in the sales volume of the firm. Kotler (1980:513) noted that “important information differentiated products which are thought to have similar values”.

Sales promotions are one of the elements of promotional mix. It is a short-term incentive use by marketers or producers to induce or lure customers to buy their product. Sales promotion is an indirect form of the promotional mix used to stimulate and guide action. It is a set of the promotional activities that stimulates consumers purchasing and dealers push. It had a middle ground between advertising and personal selling. Sales promotion can only last for about two to six months. This means that it can only last over a limited period or occur once.

The Effects of Sales Promotion On The Sale of Mobile Phone Line

This research is centered on one aspect of promotional activities, sales promotion. Different writers, authorities and authors have given different views of what a sales promotion means and only few of such concepts are described here. Dr. Kingsley N.I. Nkem (1999:12) defined, sales promotion as a marketing communication effort or promotional campaign activity articulated by Business firms, carefully planned, organized, staffed, directed, monitored, controlled and carried out by marketing men and organizations with an end in view or objective of increasing sales or generating sales. Alfred I. Okafor (1998:73) defined sales promotion as a deliberate and short-term device comprising of activities which include “above the line” media advertising that works towards aiding sales representatives and distributors achieve more sales at the point of sales. Olakunle K. Olakunori (1999:225) defined sales promotion as the offering of short-term incentives to prospects in order to make them buy specific goods and services. A. O. Udeagha (2003:323) defined sales promotion as a promotional tool which unlike advertising, personal selling, publicity or public relations, is intended to have a temporary effect on the buyer. According to Kotler (1985:578) redefined sales promotion as a short-term incentives used to encourage purchase or sales of a product or service. These activities are used to create store traffic. This is because these short-term incentives are being offered free of charge. These activities are thus categorized into consumer sales promotion techniques in terms of their consumer and dealer focus. Customers pull promotion technique are such activities like sampling, price incentive, dealers coupons, cents-off offers, refund or rebate, contests, premium etc. While trade push promotion techniques are such activities like merchandise allowance, money, bonuses and gifts.

In the light of this project topic under study- the effects of sales promotion on the sale of mobile phone lines (a case study of Globacom Nigeria limited), the researcher intends to carry out a study to measure the effect of sales promotional tools on the sales of Globacom mobile phone lines when sales promotional campaigns are carried out on them.

 

1.2 STATEMENT OF PROBLEM

Globacom Nigerian limited is making a great impact in the telecommunication world. The company has effective and efficient network capacity strong enough for distance coverage. Glo mobile also employed several strategies to win the consumer patronage such as sales promotion which include premium, trade allowance, demonstration etc. These have made consumers to prefer their product to other competing brands like MTN, V. Mobile, Econet etc. Then, the question is whether consumers patronize Globacom line as a result of these sales promotion or product quality, used by Globacom limited. There is also the problem of inadequate formulation of sales promotion timing which is geared towards achieving a positive response from customers during sales promotional campaigns. It also appears that most customers do not appreciate and value sales promotion incentives.

 

The Effects of Sales Promotion On The Sale of Mobile Phone Line

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