THE IMPACT OF SALES PROMOTION ON THE MARKETING OF NEW PRODUCT AND SERVICES

THE IMPACT OF SALES PROMOTION ON THE MARKETING OF NEW PRODUCT AND SERVICES

ABSTRACT

This study on the influence of promotion of new service marketing with a focus on Globa-com Plc Enugu achieved some of the following goals.

1. To assess the effectiveness of advertising techniques in increasing consumer awareness of Globa -Com.
2. To assess the impact of promotional methods on Globa-Com client patronage in Enugu Metropolis. For more information, the researcher did an exhaustive literature evaluation, reviewing text books, journals, periodicals, and news stories relating to this topic. To achieve this goal, three sets of questionnaires were prepared and distributed to a population comparison comprising Globa-Com Plc staff/management distributors and customers in Enugu Metropolis. The sample size for the study was determined using Topman’s method for consumers, while censuses or appropriate staff management were employed. The obtained data was presented in a statistical table, evaluated, and interpreted.
The hypothesis was investigated using chi-square, and the results revealed that the personal selling method had a significant impact on customer disposition and patronage. Globa-com Plc has not fully established an appropriate combination of promotional techniques to boost their effectiveness.

The researcher wishes for GSM coverage to extend to additional locations, notably cities and villages, in order to foster greater contact throughout the country.

The researcher advised that Globa-capacity Com’s be rapidly upgraded in order for it to support efficient GSM service in Nigeria.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

The establishment of a business, including communication services, necessitates critical decisions by the firms. These decisions have an impact on the firm’s overall marketing programs, or marketing strategy. However, one critical aspect of such a decision that requires careful consideration is the communication approach.
The communication business must implement promotional policies and programs to inform, convince, and educate its target audience about the organization and its products.
Although creating demand for a firm’s product may be the ultimate goal of marketing promotion, this goal is seldom reached in one fell swoop. Although creating demand for a firm’s product may be the ultimate goal of marketing promotion, this goal is seldom reached in one fell swoop. The company must implement a series of initiatives targeted at increasing demand for their products.
To achieve its promotional objectives, this may entail determining the optional combinations of the promotional Mix, advertising sales promotions, personal selling, publicity, public relations Direct marketing and packaging. This optional lend is determined by the product’s promotional resources, to name a few factors.

Promotion, according to Adirika, Ebue, and Nnolim (1996: 35), is the component employed by the organization to inform, educate, and persuade the market about the company’s goods. The key promotion variables are advertising, personal selling, sales promotion, publicity, and public relations.

Marketing is an essential component of survival and development; without appropriate promotion, products may fail to sell, putting their survival in jeopardy. Marketing promotion, which includes advertising, personal selling, sales promotion, public relations, and direct marketing, is sometimes linked with glitz and flamboyance. In fact, because of the need to survive in a competitive marketing climate, several organizations spend the majority of their budget on promotions.

Edoga and Ani (2000:243) noted that marketing success does not, just depend on good product, good price and efficient distribution. It is also vital that organization communicates its, so offerings to that advertising, personal selling  sale promotions public relations, publicity and direct marketing can be used to inform prospective buyers about the benefit of their products persuade then to try and remind them later about the benefits they will desire by using the product.

Modern marketing companies are increasingly recognizing the value of an effective communication and promotion programme for their entire public including G.S.M Global communication.

Ebue noted that modern marketing does not shop at developing a good product, pricing it attractively and making it really available to target customers. The company must communicate to its target audience, tell good stories, disseminate information about the products existence, feature terms and benefits to the target market.

Coppo. J. 91992: 201) confirms that the promotional tools serve as supreme vehicles in competition and provide the only way a market nicher can, hope to penetrate on established market. He went further to state hat for a company to excel above others in the competitive market such a company must value the importance of promotion.

Global-Com is one of the G.S.M service providers in Enugu from its inception around two years ago, the company has had a branch in Ebeano Estates. The company has been performing exceptionally well. However, Global -Com is currently facing a lot of competition from other G.S.M service providers such as decreased as a result of this competition, thus it is vital for Global-Com to evaluate its advertising methods in order to fight competition in the marketing x-rays.

In light of this, the study of promotional on the marketing of new products in Enugu Metropolis. A case study of Global-Com.

1.2    STATEMENT OF PROBLEM

Entrepreneurs frequently cite inadequate sales as primary causes of their failure. A detailed examination of their situation frequently exposes blatant ignorance of the requirement for promotional expertise or purposeful neglect of the need for co-ordinated promoting methods.

Often often, marketers are overly optimistic about sales (patroage0), believing that their product or service would sell itself, forgetting that even the best product or service requires stimulation in order to sell more. Global -com, with its newness in Enugu metropolis, has to properly promote its product because it is new and there is significant rivalry in the market. In reality, the development of efficient promotional tactics is an important step in the process of developing a market.

The preceding remark also applies to Global-Com services. Despite the numerical advantages inherent in effective promotion, the availability of promotional facilities, and the need to use promotional to fight competition in this industry, the use of coordinated effective promotional tools in Global -Com operations is scarce and has a negative impact on their operation. Given the importance of advertising, the researcher appears to have identified the best promotional actions that GSM operators such as global-Com might utilize to boost their performance in Enugu Metropolis.

1.3    OBJECTIVE OF THE STUDY

1. To determine the effectiveness of promotion on sales of Globa-Com in Enugu Metropolis.
2. To determine customers patronage of Globa-Com in Enugu Metropolis.
3. To determine the Impact of promotional strategies in Creating consumers awareness of global com in Enugu Metropolis.
4. To determine the impact of promotional strategies on customers patronage of Global Com in Enugu Metropolis.
5. To appraise he promotional strategies adopted by global com in Enugu Metropolis for increased profitability.

1.4    FORMULATION OF HYPOTHESIS

1. Ho: Global com’s promotional techniques in Enugu Metropolis do not raise customer awareness of their services.
Hello: Global com’s promotional techniques in Enugu metropolitan raise customer awareness of their services.
2. Ho: Globalcom’s promotional initiatives do not boost client patronage.
Hello: Globalcom’s promotional programs increase consumer patronage.
3. Ho: Globa Com’s promotional activities do not result in increased sales volume of G.S.M services.
Hello: Globacom’s promotional activities result in improved sales volume of G.S.M services.
4. Ho: Globa-advertising Com’s activities do not boost the organization’s profit.
Hi: Globa-promotional Com’s initiatives result in increased profit for the company.

1.5    SCOPE OF THE STUDY

The study concentrated on Impact of promotion in the marketing of News Product.

However, in view of limited time and resources emphasis was placed on globacom activities without Enugu metropolis.

1.6       SIGNIFICANCE OF STUDY

This study is more than just an intellectual exercise; it will be useful to the following people.

First and foremost, marketing first and globacom will benefit greatly from the study since it will investigate the influence of promotions on the performance of their operations and offer more successful ways of boosting the promotional impact.
Second, G.S.M service providers will benefit greatly from the research. This is due to the fact that it will not only measure the effectiveness of each promotional mix variable on the performance of G.S.M services, but it will also make recommendations or measures to be taken in designing and determining the right combinations of promotion in a more result oriented manner.

Finally, both the researcher and the reader will gain from this.

1.7       DEFINITION OF TERMS

1.  Promotional Strategy – it is controlled integrated programme of communication method and materials designed presents a company and it products to prospective customers (Adirika Ebue Nnolim)

2.  Advantaging – is a group of activities aiming at an including dissemination of information in any paid non –personal form concerning an idea product or service to compare actions in accordance with the import and an identifiable sponsor.

3.  Sales promotion  –  public relation the deliberate planned and sustained effort to establish and maintain mutual under between an organization and its public (Edoga and Ani)

4.  Direct Marketing – it is an interaction marketing system that use one or more advertising media to effect a measurable response.

5.   Personal selling – face to face interaction with one or more prospective purchase for the purpose of making presentation ensuring questions and producing orders.

6.   Public relations publicity –  A variety of programmes designed to promotion or protect a companies Image or if Individual product (Kotler (1991: 657)