CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Nowadays, organization are undergoing fast growth and often disturbing transformation which are due to the information technology and technological advancement currently going on.

Sales promotion and advertisement consist of short term incentive to encourage sale and advert of product or services Kotter and Amstrong (2004). Also Dennis (1993) state that sales promotion and advertisement in marking activities other than personal selling and public relation that stimulate consumer purchasing and dealer effectiveness such as display shows etc.

Organization profitability on the other hand, is increasing the gain delivered from business or by selling things especially after paying the cost involved. Organization must communicate with their actual potential busters.

This is necessary because it you do not say “I am here” nobody will actually know that you are there.

There as a group of potential to take place there is need for product differentiation and this is difficult in the communication system.

It is very important and sale promotion activities such as price, cut, and trade stamp coupon, premium, context, free trail products e.t.c to source high sales and to encourage users to patronize their products. If an organization has a good and will designed products, it will be very difficult for them to purchase that product and it will be to no value to the society.

Many organizations and religious group are nowadays engaging in advertisement and sales promotion and are spending Hug sum of money on them. The reason is the pressure for short term profit, the accountability factors, the change in the market place and the increasing power of retailers and consumer.

Organizations are investing money in advertisement and sales promotion which in return generates immediate result in increased profit.

Some examples are the NITEL new line with a small bag free SMS they give out to customers, family and friends numbers that are registered free and are called at cheaper rate, GLO “who wants to be a millionaire and others”. All these are no line with the existing business.

Advertisement and sales promotion is therefore noted in this context on how it affects organizations overall profits.

HISTORY OF GLOBACOM MOBILE NETWORK

The globacom mobile network was launched in Nigeria in the year 2003, and they had the vision to be the market leading service provider in Nigeria and they also aspired to build African biggest and best telecommunication network in Africa.

As a company, globacom recently made history as the first single company to haveand 800 million high capacity, fibre-optic cable successful submarine cable form the united state of America to Nigeria and it will decrease telecom process provided excess bandwidth to all cities connected to the cable. The historical initiative will also improve teleconferencing, distance learning, disaster recovery and telemedicine among several benefits. As part of giving back to the communities in which they operate Globacom limited sponsors the national football teams and the premier league in Nigeria and Ghana.

In 2010, Globacom sponsored the Africa handball tournament in Benin Republic. Globacom has also sponsored the annual confederation of Africa Football (CAF) awards since 2008 also they have sponsored the Glolagos international half marathon.

1.2.Statement of the Problem

Unlike other promotional mix sales promotion is an effective sales tool. Internal and external factors have assisted in the adoption of sales promotion successfully. The other promotion medias are costly and not very effective, sales promotion is both economical and effective. Moreover, sales promotion is more personal than mass advertising so that it provides more opportunities for the development of sales. (Mishra.M, 2004).

According to Frain, (2004), Sales promotion complements the other communication elements, especially in the field of fast moving consumer goods. It includes those activities designed to encourage user-purchase at point of sale, to increase dealer effectiveness and to reward customer loyalty, include in store-displays, demonstrations, and exhibition. Moreover, lamb.et.al (2005) stated that sales promotion is a marketing activity that stimulates consumer purchasing and dealer productivity through contests, demonstrations, discounts, exhibitions or trade shows, point of sale displays, and merchandising, special offers, and similar activities.

Many companies or organization that renders similar services are faced with challenges from their counterparts. For an organization not to be thrown out of business it needs to carry out advertisement and sales promotion which enable it have a share in the market.

This study which is carried out in a company “Globacom Nigeria in Lagos” will critically examine the following with a view of ascertained whether advertisement and sales promotion can be used as an effective marketing tool.

The study was taken to assess sales promotion practice of Globacom PLC.

1.3.Research Questions

The following are the basic research questions that the student researcher tried to give answers:

• What is the company’s sales promotion strategy look like?
• What are the feedbacks of business customers towards the sales promotion practice?
• What kind of sales promotion tools does the company use to push its products to meet organisational goal?
• How does the case company allocate budget to its sales promotion practice?

l.4.Objectiveof the study

The research paper has both general and specific objectives as stated below.

1.4.1.General Objective

The general objective of the study is to assess the sales promotion practice in the case of Globacom plc.

1.4.2.Specific Objectives

The following are the specific objectives that the student researcher tried to give answer.

• To indicate what the sales promotion strategy of the company look like.
• To identify feedback of customers towards the sales promotion practice.
• To point out what sales promotion tools uses the company to push its products to meet organisational goal.
• To point out how the case company allocate budget to its sales promotion practice.

1.5. Significance of the Study

The student researcher believes that the study provides the following significance:

• It will help the company to analyze the different factors that affects their sales promotion practice.
• It will help the student researcher to develop her skill about research undertakings.
• It will give a clue for those who will be interested to conduct on in depth study on the issue.

1.6. Delimitation of the study

This research has been focusedon sales promotion specifically trade sales promotion practices of Globacom PLC. This study covered the period from September 2008- April 2013 because the student researcher will get a relevant information during this period, the company sales its

products to traders all over Nigeria but addressing all is difficult so the student researcherrestricted only on the retailers in Lagos within four areaslocated in Mesalemiya, Piassa, Kasanchis and Merkato because the student

1.7. Limitation of the study

While conducting the study, the student researcher had experienced certain limitations, among others, the following are the major limitations encountered by the student researcher: some respondents were not able to complete the questionnaire, the time schedule outlined to collect the questionnaire was not mate because of respondents, furthermore, there was constraint and availability of information from the corporation’s side.