The Influence of Sale Promotion on Customers Patronage

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CHAPTER ONE
1.0INTRODUCTION
The major tasks of marketers are to produce the right goods, charge the correct price, gives the product exposure through distribution networks, and to induce the consumers to purchase the product. All these marketing skills will be a waste of effort if consumer fail to become aware of the existence of a product or service. However, sales promotion is the array of method or techniques that marketers use to stimulate or improve immediate purchase. In most cases, sales promotion is used in conjunction with other promotional tools especially advertising and personal selling to achieve desire result. But unlike advertising and personal selling, sales promotion comprises a wide variety of technical promotional tools of short term incentives designed to stimulate a target market response. In other words, sales promotion is one of the methods or ways by which information about a product or service is passed to potential consumers. Generally, sales promotion has two main objectives which could be categorize into broad objective and specific objective. The broad objective of any sales promotion will include product exposure, attention acquisition and comprehension of sales promotion, attitude change and behaviour while in a specific objective the target consumers are specified as well as the intended effect of the promotion upon the target market (Engel et al, 1973). Furthermore, in whatever form sales promotion is carried out, it’s aimed at achieving the following: i. Encourage customers to sample.

ii. Encourage dealers to stock
iii. Combating competition
iv. Improving distribution
Sales promotion is either directed to traders or customers. According to Gilbert Baker (1986) the following techniques or methods can be used in consumers promotion, premium offers, contest, coupon, special discount and free trials. Finally, sales promotion has taken a strong position in marketing. This is as a result the increasing back log of products which manufacturers cannot sell as a result of high costs charged and diminishing purchasing power of the consumers. Another major reason is an increase in the level of competition among manufacturers brought about by increased entrepreneurship. Sales promotion helps increasing sales volume. It’s also contributes to the building of a product and company image and assist in determining correct price for it product or service. This is possible especially when a company is using promotional pricing. 1.1HISTORICAL BACKGROUND OF THE COMPANY GLOBACOM NIGERIA LIMITED: Since it launched it’s services on August 29, 2003 Glo mobile has been at the forefront of revolutionary changes in the GSM sector in Nigeria, offering both prepaid and contract packages along with a range of value added services. In it’s first year of operation, Glo mobile became the fastest growing GSM network in Africa, achieving a record of one million subscribers and covering over 87 towns in just nine months. The subscriber figure at the moment stands at over 22 million with coverage extending to over 50,000 cities, towns, communities and major roads, thus making the company the 5th largest operator in Middle East and Africa (MEA) region as well as the fastest growing network in the region. However, vigorously pursuing it’s expansion strategy, the network has earned the identity of the Nigerian innovator. This is because it boasts a wide variety of innovative packages and tariff designed to fulfill the needs of a broad spectrum of market segments in Nigeria. Prominent among the innovations Glo mobile has introduced are the per second billing, black berry, multimedia messaging service (MMS) magic plus, Glo Direct, Glo Bile Internet, Glo Fleet Manager, M-banking and Glo mobile office. Meanwhile, competition argued that per second billing (PSB) was not possible until 2007...
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