ABSTRACT
The study analyzed the effect of promotion mix strategy on the performance of Mobile telecommunication network Umuahia Abia State. The specific objectives were as follows: to determine the effect of advertising on the performance of Mobile telecommunication network , ascertain the effect of sales promotion on the performance of Mobile telecommunication network, determine the effect of personal selling on the performance of Mobile telecommunication network, Investigate the effect of public relation on the performance of Mobile telecommunication network. Primary data obtained from administration of questionnaire was analyzed using descriptive statistic such as frequency/percentages, Multiple regression model was specified. Five variables were considered namely, advertising, personal selling, sales promotion, public relation and publicity. The multiple regression analysis results revealed that publicity and public relations have little or no effects and are insignificant on the performance of mobile telecommunication network, while advertising, personal selling and sales promotion have a positive and significant effect on the performance of mobile telecommunication network. It was based on this premise that the study recommends that Mobile telecommunication network should work hard to achieve promotional activities integration in the practice, because such integration will lead to increased demand for their products, which will contribute to increase in their sales, market share, and eventually, their profitability.
Keywords: Promotion mix strategy and performance of mobile telecommunication network (MTN).
TABLE OF CONTENTS
Title Page i
Dedication ii
Acknowledgement iii
Declaration iv
Certification v
Table of Content vi
Abstract vii
CHAPTER ONE
Introduction
1.1 Background of the Study 1
1.2 Statement of problem 2
1.3 Objectives of the Study 3
1.4 Research Questions 4
1.5 Research Hypotheses 5
1.6. Significance of the study 5
1.7 Scope of the study 6
1.8 Operational definition of terms 6
CHAPTER TWO
Review of Related Literature
2.1 Conceptual Framework 9
2.1.2 Advertising 12
2.1.3 Personal Selling 13
2.1.4 Sales Promotion 14
2.1.5 Public Relation 15
2.1.6 Direct marketing 16
2.1.7 Importance of promotional activity 18
2.1.8 Promotion and the hierarchy of effects model 19
2.2 Factors to consider when choosing promotion mix strategy 19
2.2.1 Channel strategies 22
2.3 Empirical review 23
2.4 History of Mobile telecommunication network in Nigeria 27
CHAPTER THREE
Research Methodology
3.1 Research Design 28
3.2. Study Area 28
3.3 Population of the Study 29
3.4 Sample Size Determination 29
3.5. Method of data collection 30
3.6 Sampling techniques 30
3.7 Scoring of Instruments 31
3.8 Validity of Instrument 31
3.9 Reliability of Instrument 31
3.10 Method of Data Analysis 32
3.11. Model Specification 32
CHAPTER FOUR
Result and Discussion
4.1 Data presentation, interpretation and analysis 33
4.1.3 Do your organization adopt advertisement as a communication tool 36
4.1.4 Rating the effect of television on the performance of your organization 36
4.1.5 Rate the effect of billboards on organizations performance 37
4.1.6 Rating the effect of coupon on organizations performance 37
4.1.7 Rating the effect of rebate on organizations performance 38
4.1.8 Identify the area of sales promotion the organization venture in 38
4.1. 9Rating the extent free sample influence organization performance 39
4.1.10 Rating the extent bonus packs affects organization performance 40
4.1.11 Rating the extent personal selling affects the market share
of the organization 40
4.1.12 Rating the extent salesperson triggered consumer patronage 41
4.1.13 Rating the organization adopt personal selling as promotional strategy 41
4.1.14Rating the extent your organization adopt public relation as a communication tool 42
4.1.15: Rating the contribution of public relation officers on organizational performance 43
4.1.16Rating organizations use of public relation officer 43
4.1.16Rating the extent your organization engage in direct marketing as promotional strategy 44
4.1.17: Rating the effect of telemarketing on organizations performance 44
4.2.1 Test of Hypotheses 45
4.2.1 Test of hypothesis 1 47
4.2.2 Test of Hypothesis 2 48
4.2.3 Test of Hypothesis 3 48
4.2.4 Test of Hypothesis4 49
4.2.4 Test of Hypothesis 5 50
CHAPTER FIVE
Summary, Conclusion and Recommendations
5.1 Summary 51
5.2 Conclusion 52
5.3 Recommendations 52
5.4 Recommended areas for further study 53
References
CHAPTER ONE
INTRODUCTION
1.3 Background of the Study
The global world of business today, the heart of every business is to attract customer’s attention towards its products or services and firms are doing just about anything in order to remain relevant and still meet the ever dynamic needs of their customers (Adebayo, 2012).David, (2006) opines that, for any organizations e.g mobile telecommunication network (MTN) to survive, they must take both their promotion mix strategy and marketing very seriously because people are now better educated and the global world of business today is a very dynamic one which explains while firm needs to understand its customers’ and apply the promotion mix elements to satisfy customers needs and wants in other to remain in business. Consequently, an organization needs to build a more attractive strategy and action plan than its competitors. One prominent tool of attracting consumers’ attention towards products is promotion.
According to Chaharsoughi and Yasory (2012) promotion is one of the key factors in the marketing mix element and has a key role in marketing success. Promotion is used to ensure that consumers are aware of the products the organization is offering. Promotion mix strategy involves the use of advertising, personal selling, sales promotion, publicity and public relations employ by an organization to attract sales and maximize organizational objectives (Adetayo, 2006).
Adetayo (2006) opined that promotion seeks to inform, remind and persuade target consumers about the organization and its products. The obvious goal of promotion management is to ensure that all the individual elements of promotion mix work together to accomplish the organization’s overall promotion activities. Furthermore, the specific bend of advertising, sales promotion, public relation, personal selling and direct marketing tools that firm use to persuasively communicate customer value and build customer relationship” cannot be overemphasized (Kotler and Armstrong, 2008).
The importance of promotion mix to Mobile telecommunication network (MTN)ltd in Nigeria cannot be overestimated. Promotion mix strategy can change a firm’s competitive position (Akinyele, 2011).Promotion is an important part of marketing mix. Once a product is developed, its price is determined, the next problem that comes to mind is its sale, which involves creating demand for the product using promotional activities. These activities are known as promotion mix strategy (Mathur, 2008).
A firms can use more than one type of tool to promote sales and gain a better market positioning. The combination of these tools with a view to maintain and create sales is known as promotion mix strategy.
1.4 Statement of problem
The major problem in the Nigeria Telecommunication industry is that existing firm’s appear to regard themselves as indispensable as the orientation about their customer is farfetched and Mobile telecommunication network (MTN) ltd is not an exemption. These organization seems to be carried away by mere believe that they are market leader and they have being competent over the years, majority of their loyal customers will still patronize them irrespective of their poor performance. Also, Mobile telecommunication network (MTN) Nigeria ltd perception of the promotion tools has not shifted from mere advertising only until recently as stiff competition has overshadowed the global village and the incompetent firms are being displaced and replace by the competent ones.
Similarly, the wrong application of the promotion tools by Telecommunication industries on certain segment of the market where such application requires careful use of both the marketing strategy and promotion mix element is also one of the limiting factors against the achievement of an improved performance in the Telecommunication industry. For instance, the promo tools as earlier mentioned (Advertising, sales promotion, personal selling, public relations and publicity) are applied to attract and increase customer base, but the reverse has been the case. The operation of most companies in the telecommunication industry are being hindered because they do not place high premium on the importance of these concepts.
Given all the promotion tools strategy adopted by Mobile telecommunication network Nigeria ltd, there is a need to examine the extent to which these have affected the demand for services of the organization. This stems from the fact that in the quest to become the market leader and overtake its competitors, and increase the customers satisfaction Mobile telecommunication network must have incurred some high cost whicg invariably would affect its profit margin.
1.3 Objectives of the Study
The broad objective of the study is to analyze the effect of promotion mix strategy on the performance of Mobile telecommunication network Umuahia Abia State. The specific objectives were to:-
i. determine the effect of advertising on the increase sales volume of Mobile telecommunication network product.
ii. ascertain the effect of sales promotion on the profitability of Mobile telecommunication network products.
iii. determine the effect of personal selling on the market share of Mobile telecommunication network product.
iv. Investigate the effect of public relation on the profitability of Mobile telecommunication network product.
v. identify the effect of publicity on the sales volume of Mobile telecommunication network Umuahia products.
1.4 Research Questions
The following researched questions were addressed:-
1. To what extent does advertising affect sales volume of Mobile telecommunication network Umuahia, product?
2. To what extent does sales promotion effects on profitability of Mobile telecommunication network products?
3. What is the effect of personal selling on the market share of Mobile telecommunication network product?
4. How does public relation on the profitability of Mobile telecommunication network product.
5. What is the effect of publicity on the sales volume of Mobile telecommunication network Umuahia products.
1.5 Research Hypotheses
The following hypotheses were stated in null (H0) formed;
H01: Advertising has no significant effect on the increase sales volume of Mobile telecommunication network Umuahia, product
H02: Personal selling has no significant effect on the market share of Mobile telecommunication network products
H03: Sales promotion has no significant effect on the profitability of Mobile telecommunication network products
H04: Public relation has no significant effect on the profitability of Mobile telecommunication network products
H05: Publicity has no significant effect on the sales volume of Mobile telecommunication network products.
1.6. Significance of the study
The study is of immense benefits to the following group;
To management of Mobile telecommunication network, the study will give an insight into some of the problems that retard profitability, efficiency, and effectiveness which bring about low performance level.
To the staff of Mobile telecommunication network, the study had help guild staff decision on how to improve on service delivery and subsequently on how to better satisfy customers.
To Policy makers, the findings and recommendations of the study assisted policy makers in formulating policies that helped improved Mobile telecommunication network performance through the application of the promotion mix strategy namely (Advertisement, sales promotion, personal selling, public relation and direct marketing).
To Government, the findings and recommendations will assisted them to implement policies that help management of Mobile telecommunication network reflect on the quality of service through better performance.
Researchers and students interested in a similar field of study in future will find this work useful conceptual guide and reference material.
1.7 Scope of the study
The study focused on effect of promotion mix strategy on the performance of Mobile telecommunication network. It covered only Umuahia in Abia State. The area was considered on the basis of it homogenous features such as norms, culture, geography region, religion and so on. Impressive business activities which encourage the establishment of local and multinational companies in the selected areas. The chosen states are populous, with concentration of industries and entrepreneurial establishments.
Marketing provides a unique range of benefits because it enables a company to engage directly with its audience – whether they are prospects, leads, end users or existing customers.
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