SALES PROMOTION STRATEGIES AND SALES PERFORMANCE OF TELECOMMUNICATION FIRMS IN PORT HARCOURT

CHAPTER 1

INTRODUCTION

1.1   Background of the Study

In any organization whether profit or nonprofit oriented the main purpose of the organization is to achieve its objective. The objectives cannot be achieved in a vacuum there must be a clearly set strategy that management should use in order to meet these objectives.  Sales promotion became an essential motivating factor in the area of marketing in any organization whether in the Telecommunication firms or any other company.

Sales promotion is an initiative undertaken by organizations to promote and increase sales, usage or trial of a product or services (Aderemi, 2003). Sales promotion refers to the provision of incentives to customers or to the distribution channel to stimulate demand for a product. It is an important component of an organizations overall marketing strategy along with advertising, public relations and personal selling. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over the other. It is particularly effective in spurring product trials and unplanned purchases (Aderemi, 2003). Many businesses fail to realize that they cannot stay in business without any marketing strategies. This is because they were operating in a market that was monopolistic in nature. This means that there was no intense competition from other organization. But these days due to dynamic nature of the market, and consumer taste changes every day it has become imperative on the part of the business to look into their strategies and review them if at all they want to remain in business. 

The marketing communication mix consists of the sub sets of marketing tools that are primarily communicational in nature. They are tools normally classified under promotion which is one of the controllable variables of the 4ps of marketing promotional mix, is made up of advertising, personal selling, sales promotion and publicity. The element in the promotional mix that is rapidly gaining additional recognition in most industries especially in the brewery industry in Nigeria is the sales promotion. It is not enough mostly in developing countries like Nigeria in manufacturing to merely produce and trust that consumers will become aware of such products.

The researcher intends to identify the level of depending on sales promotion and its importance to Telecommunication consumers and customer alike.  The researcher deliberated on the effectiveness achievements and the results. The merits and demerits associated with sales promotion are also highlighted.

1.2   Statement of the Problem

Service providers like the Telecom operators’ needs to provide offerings or services that satisfy consumer needs and expectations to ensure the company’s economic survival.  Intense competition among the telecommunication networks in Port Harcourt has led to the application of various marketing strategies and tactics to win a good share of the market. Sales promotion has been widely used by these networks in their attempt to outsmart their competitors. Mean while Sales Promotion which is a key ingredient in marketing campaigns and consists of a diverse collection of incentive tools is mostly short term designed to stimulate quicker or greater purchase of particular products or services by consumers but seen as lacking the capacity.

Against this backdrop, this research examines the extent to which sales promotion strategies and sales performance in the telecommunication industry in Port Harcourt.

1.3   Purpose of Study

The general purpose of the study is to determine Sales Promotion Strategies and Sales performance in telecommunication firms. The Main objectives of this study are:

1.     To examine the relationship between Price reduction and sales Performance in telecommunication firms in Port Harcourt.

2.     To examine the relationship between Coupons and sales performance in telecommunication firms in Port Harcourt.

3     To examine extent to which sample influences sales performance in telecommunication firms in Port Harcourt.

1.4   Research Questions

The following research questions will guide this study.

1.          To what extent does Price reduction relatesales performance in telecommunication firms in Port Harcourt?

2.          To what extent Coupons relatesales performance in telecommunication firms in Port Harcourt?

3.          To what extent Sample relatesales performance in telecommunication firms in Port Harcourt?

1.5 Conceptual Framework of Sales Promotion Strategies and Sales Performance of Telecommunication Firms In Port Harcourt

						Sales volume
	Coupons
							Market share
		Sample

SOURCE:(Researcher’s Desk 2016).

1.6   Research Hypotheses

Ho₁:  There is no significant relationship between price reduction and Sales Volume in telecommunication firms in Port Harcourt.

Ho₂.  There is no significant relationship between price reduction and Market Share in telecommunication firms in Port Harcourt.

Ho₃.  There is no significant relationship between Coupons and Sales volume in telecommunication firms in Port Harcourt.

Ho₄:  There is no significant relationship between Coupons and Market sharein telecommunication firms in Port Harcourt.

Ho₅:  There is no significant relationship between Sample and Sales volume in telecommunication firms in Port Harcourt.

Ho₆:  There is no significant relationship between Sample and Market share in telecommunication firms in Port Harcourt.

1.7   Significance of the Study

This study is useful to telecommunication firms in Port Harcourt as they get to know the extent to which sales promotion influences customers’ choice of network. This study would be significant in the promotion of products and services by the telecom operators in Port Harcourt.It shall also guide us to know how to improve more on the program encouraging more students to take part in the program-for the achievement of fundamental rights. It will also help the firms to properly utilize their resources, increase their profitability and growth.The firms will then decide whether to continue to invest a good portion of their resources into sales promotion or to redirect these scarce resources into other areas that provide relatively substantial customer value. The research work will also serve as guide to customers of the industry, especially tertiary students as they will want to buy from networks with the most attractive sales promotional packages considering the dependent nature of their purchasing power. Therefore, this work will add to the little that exists which will serve as a relevant source of reference to future researchers of related topics. More importantly, the study has discovered other areas which need further exploration by interested researchers. Owing to this, students, researchers and research organizations can benefit substantially from the recommendations of the findings of this study as it will provide a basis for future research in the area of sales promotion and its effects on consumers.

1.8   Scope of the Study

This study is specifically delimited to investigating the extent of Sales Promotion Strategies and Sales performance in telecommunicate firms in Rivers State and the strategies for providing effective Sales Promotion Strategies in Rivers State.

1.9   Limitations of the Study

The limitations of this research work include difficulty in getting relevant materials. Also, only small geographical area is covered in this study. As a result of the small geographical area covered, national generalization may be limited and also time and semester workload.

Time: Is a very serious factor in this researcher, time is transient and for that reason. In the process of undertaking, this research work, a number of problems both directly or indirectly have affected the study. It has been the intention of the researcher to cover all other branches of telecommunication firms to determine to what effect sales promotion has on sales performance. The time is a major constraint to the study.

1.10 Definition of Terms

Sales Promotion: May be described or defined as the use of short term incentives periodically to stimulate or encourage consumers to buy product

Price Reduction: A price reduction allows customers to buy your products at a lower price for a specified period of time

Coupons: Coupons can be used as a way to attract new customers or to develop customer loyalty

Personal selling: The process of making oral commercial representation during a buying / seller interview situation. This is collegially referred to as face to face selling or known as buyer / seller interface

Sales performance: Sales performance can indicate the rate of customer loyalty to the business or a specific employee
Performance:  Performance refers to the accomplishment of a given task measured against present known standards of accuracy and completeness.

Sales:  The activity or business of selling products or services.

Growth:  Growth is the process of improving some measures of an enterprises success.

Telecommunication: Telecommunications is the exchange of information over significant distances by electronic means.