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THE EFFECT OF PROMOTIONAL ACTIVITIES ON THE CONSUMPTION OF A COMPANY PRODUCT

ABSTRACT

This research work is to investigate the impact of promotional activities on the consumption of a company’s product using MTN Nigeria as a case study. This study discussed the aims, objective of the study, historical background of MTN mobile telecommunication network Nigeria relevance of the study, hypothesis formulation and definition of terms. This study also discussed the research methodology, source of data, collection, population and sampling procedure. Also it contained presentation, analysis and interpretation of data collected and the testing of hypothesis through questionnaires. It also summarize findings, conclusion and the recommendations to company’s product. Finally, the following literature review will be seen in this work, such as the definition will be promotion, sales promotion and others.

CHAPTER ONE

INTRODUCTION

1.1BACKGROUND OF THE STUDY

The end result of company activities in the business environment is the exchange of its output for buyers or prospective buyers purchasing power.

Modern organization have found themselves in the battle to win and attract more buyers for this reason a marketing manager’s primary assignment is to create sufficient awareness about a company marketing mix through promotional activities.

Promotion is used by some people to mean selling. But selling actually means any effort to facilitate exchange while promotion is a major catalyst for spending up the exchange process.

There is no perfect competition in the real market place because there exist product differences irrational behaviour of buyers and loss the adequate marketing information etc. This makes the firms to discover that there is need to make people to beware or to be better informed about its presence and products.

The activities of business organization are becoming more complicated product changes by time taste change daily among users, price are unstable the distance between the producer and customer is getting fatter and also distribution facilitation and level of awareness are becoming increasing complex. There is therefore a need to level up with expectation of the society especially those of consumers information on value up data must bead equality passed to the target audience otherwise communication group can cause a lot of havoc to the organization. The intensification of competition between firms has caused the intensity of sales promotion of the individual seller that the interest of individuals are insurmountable is not an overstatement. Therefore, the seller in recognition of the human predicament should assists in projecting a need to a want and by helping to a particular carefully planned sales promotional programme.

1.2STATEMENT OF THE PROBLEMS

Most tele-communication companies have been performing poorly in terms of promotional activity that is why criticism have been level against them.

The inability of some tele-communication companies include MTN to build in-house advertising department is as a hindrance militating against the company promotional goals; it is clear that the marketers used to create impact on consumer buying behaviours.

Many years ago organization concentrate on advertising, personal selling and publicity campaigns. Many business organizations do not welcome any expenditure on promotion.

·                    Organizations are always faced with the problem pertaining to the marketing importance need by the company ot improve its operation.

·                    The effect of government regulation concerning the product quality.

·                    What impact has the promotional strategies used by the company in creating awareness of its products.

·                    The distribution channel of the company in distributing its product to the consumers.

1.3RESEARCH QUESTIONS/HYPOTHESIS TESTING 

This is assertion made to give an insight into the researcher expect to be the outcome of this pessimistic and optimistic angel a negative assertion is called the alternative hypothesis (HI).

Since the objective is to know the impact that promotional activities have on the consumption on a company’s product the statements of hypothesis could be make as follows;

Hypothesis One   

Ho:   Promotional activities cannot counter the moves of competitor. 

HI:    Promotional activities can counter the move of competitor.

Hypothesis Two

Ho:   Promotional activities do not increase sales by generating extra interest.

HI:    Promotional activities increase sales by generating extra interest.

Hypothesis Three

Ho:   Promotional activities do not act as incentive to attract new customers.

HI:    Promotional activities act as incentive to attract new customers.

1.4PURPOSE OF THE STUDY

The research work stems from the fact that the cornstarch market is saturated with different products introduces every year. Some are successful while others are not partly due to the difference in the promotional tools.

Also to be investigated are factors that influence setting up a promotional activities and the issues up a promotional activities and the issues of determining the most often used promotional mix by the company (MTN). The rate of failure of product especially new products is at the higher rate. Studies indicated that future rate of new and existing product is about 70% e.g. merit larger beer brewed by Guinness. MTN talk on some factors that cause this failure such as lack of effective promotional activities will be looked at.

Also to investigate is the issue of the promotion of high quality products because it is often said that a satisfied customer is the best advertiser of any product.

The research work should be considered as part of this research work will throw more light on the promotional activities and its associated problem which have playing manufacturing companies over the years and therefore give suitable solutions which in variable lead to increase marketing impact.   

1.5SCOPE OF THE STUDY

The research will investigate if sales promotion is the best promotional activities a manufacture can use to reach the ultimate consumers, also the issue of personal selling can be used in persuading the consumers to buy the product. Because of it advantage type which is common with other promotional tool. The research will also examine advertising, especially if the television should be used or can be used first to communicated hand information about the company marketing activities to the consumers.

To carry out this research work effectively, questionnaires and personal interviews, consumers and management of the marketing department of MTN communication services view of the sales promotion of the company. 

1.6SIGNIFICANCE OF THE STUDY

This study will be of great importance to many parties when successfully completed first on the list is MTN Nigeria Plc used as a case study in this project work. Also to benefit are other mobile communication and representation of multinational enterprises in Nigeria.

This research work also be relevant to that consumer because their suggestions and criticism will be taken into consideration e.g. the default MTN family and friends numbers and the names was changed to MTN funlink with improved quality with addition MTN numbers to be added to the list from the eight (8) numbers to ten (10) numbers with two international numbers.

The communication company (MTN) will also find that work important because it will enable distributors to know the best promotional tools to use in promoting the company product to the target market.

The middlemen will also be benefited since that the heavy advertisement directed at the prospective customers makes them to go all about in search of the product in the middlemen’s store.

Finally this study will also be of importance to worker’s lectures, students, some of which have bondholding different view about promotional activities in the whole system. The result will also benefit the reach immensely because it is on the basis of successful complexion that he will be award the HND (Higher national Diploma in Marketing).   

1.7LIMITATION OF THE STUDY

The research work of these natures is never complete without limitations. The researcher encountered numerous problems which affected the conduct of the research work.

These problems encountered were financial constraint, prejudice and not respond of respondents sampled.

·                    Financial Constraint: The researcher would have carried out this research to cover the whole country or at least some states, but there was not enough money to do it even Benin that was used as the population involve a lot of money, the researcher was able to understand that research work entails spending a lot of money in a bid to acquire information sought for.

·                    Time Constraint: A lot of time was spent as the researcher had to visit the respondent sampled time after time to be able to gather the needed information.

·                    Prejudice: This formed a major handicap for the researcher most of the respondents were reluctant to give the desired co-operation such by giving the information the researcher sought for.

·                    Non-response: This is the worst problem encountered by the researcher in the process of carrying out this research work. Many of the planned sample could not be recovered despite the repeated calls on them. Since the researcher could not replant the sample due to time constraints he had to base analysis and conclusion on the end collected. 

1.8OPERATIONAL DEFINITION OF TERMS

Some of the terms used in this research work are functional for the purpose of this particular research work.

·                   Promotional Mix: The promotional mix encompasses all activiteis, whose purpose is to inform or persuade. Ti is of great important when a number of similar products are in the market and when a product is new. The type of product one is selling dictates the types of promotional mix to use.   

·                   Promotion: This has to do with all information persuading or reminding customers the objective may focus on any aspect of the organization marketing mix or may emphasizing the organization itself.

·                   Advertising: The America Marketing Association (AMA) defines advertising as any paid form of non personal presentation and production of ideas goods or services by an identified sponsor.

·                   Advertising Agency: This is an independent company that acts as space broker for news media at time they deal with advertiser directly.

·                   Personal Selling: This is a face to face communication between the prospective consumer and sales people.

·                   Public Relation: This is a planning effect to maintain mutual understanding between an organization and its public.

·                   Sales Promotion: This is activity other than advertising, personal selling, public relation and publicity aimed at stimulating the sales of production.

·                   Product: This is anything that can offered to market fo attention, use of consumption that might satisfy a want or needs. It could be service goods or idea.   

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