CHAPTER ONE

1.0 INTRODUCTION

1.1Background of the study

In the last four. decades, marketing strategies have evolved from “transactional” to “relationship” marketing. The business model of yesterday supported mass marketing, mass production, and standardized products and services. Companies that continue to rely and operate on this obsolete model will fall behind the competition. (Berry, et al 2002). The reasons for this development are several but include the following; more sophisticated and knowledgeable customers; dramatic changes in technology; the rise of competition; and declining product differentiation in the global business environment. Today’s business world continues to change and has become more volatile in nature. It is against this background that Weinstein & Johnson (2003) recommend that at least 75% of an organization’s marketing effort should be focused on customer retention, by building and maintaining strong relationships with customers.

According to McDonald (2016) in developing on integrated marketing communication strategy a company combines the promotion mix element balancing the strength and weakness of each, to produce an affective promotional campaign promotional management involves coordinating the promotion mix elements to develop a controlled integrated program of effective marketing communication. The marketer must coordinate and consider which promotional programs including the type of product the target market the buyer decision process, the storage of product life cycle and the channel of distribution companies selling programs products and services generally rely on advertising through mass media to communicate with customers.

According to Kottler (2016), Business to business markets, who generally sell expense risky and often compiles product and services, more often use personal selling, business to business marketer such as Honey well do use advertising to perform important function such as building awareness of the sales force and assuring customers about the purchase they have made. Of the sales force and sales promotion objective are derived from promotion objectives which are derived from more bases marketing objectives development for the product. The specific objectives set for sales promotion vary with target market. for consumers objectives including purchasing large-size units building trial among non-users and attracting switchers away from competitors hands. For retailers the objective include persuading them to any new items and higher levels of investing encouraging all season buying –encouraging stocking related items or setting competitive promotion, building brand loyalty and gaining entry into new retail outfits. For sales face objective include encouraging support of a new product or model encouraging more prospecting and stimulating of seasons sales (Kottler 2016).

Commercial banks operate in a new dynamic environment caused by the increasing speed and turbulence of changing customer needs and expectations, technological change, and the move to global and multi-cultural organizations. Emphasis on marketing strategies in commercial banks is gaining faster attention in Nigeria. In the changing environment, commercial banks have increasingly recognized marketing strategies as the engine, which drives the service-profit chain. Hackett (2014), argues that for the commercial banks to survive the competitive environment they need to adopt a new marketing approach based on the changing needs and expectations of customers. Every marketing strategy is unique, but if they are abstract from individualizing details, each can be reduced to a generic marketing strategy. There are no given sets of marketing strategies adopted universally, and different schools of thought have their own unique ideas but the following categorizations are the most accepted.

The first strategy is that of product strategies, which ask the question, “How should the SME product be developed features, design and quality?” The other strategy is that of Price Strategies, which asks, “How should the SME product be priced?” Third strategy is that of Place or Distribution Strategies and this asks, “Where should the outlet be located?” The fourth and the last strategy is the Market promotions and ask, “Is the firm using any communication form to inform or persuade prospects?”

Commercial banks started its operations recently and has seemed to gain favor with the customers.  But the price factor is one of the challenges that are facing the firm.  This is because customers do compare prices of products or services before they decide to purchase a product.  The issue of quality also arises.  Therefore price and quality goes hand in hand since they are perceived to be key factors each organization has to consider.

The fast food sector in Nigeria is facing increased competition from more %established fast food chains mainly from Southern Africa. It is therefore necessary to identify the critical marketing strategies needed for this industry to be competitive. Thus, commercial banks need to identify key marketing strategies that are needed for sales success. This study will then render itself towards relating market promotions to sales of the fast food baronesses, in Nigeria.

1.2 Statement of the problem

According to Aaker (2018), for a long time there is need to recognize the need to develop focused marketing strategies as the nerve center for sales growth and sustainability of an SME. Globally, the sales of products produced by entrepreneurs gives on stagnating because these entrepreneurs have low education levels as far as sales promotions is concern, yet it is an essential ingredient to increase business success. They lack effective networks, which help in product marketing and sales acceleration.

In Nigeria, there are a lot of commercial banks that they struggle for survival in the market yet they produce a lot of good and quality products to satisfy the market. They utilize the sales market promotions that they have knowledge on.

Most of these commercial banks utilize the promotional strategies to survive the intense competition in the market. In most cases the organization may seem to be either small to employ these strategies or it may lack resources but still they use a variety of promotional strategies that the organization uses. Commercial banks also is an example of these commercial banks that employees promotional strategy. The scope of the effects of these promotional strategies is what a remains mystery to the researcher. It is from this background that the current study will be undertaken to examine the impact of market promotions on sales. This consists of various elements known as promotion mix. They include advertising, personal selling, sales promotion, publicity and public relation. However, the current study will concentrate its effort on market promotions only.

1.3 Objectives of the study

The main objective of this study was to investigate on the effect of market promotions on the performance of commercial banks. However, the specific objectives were

1. To identify market promotions being used in First bank branches in Enugu City
2. To assess the impact of market promotions on sales volume at First bank branches in Enugu City

• To find out how the promotional strategies enhance stability at First bank branches in Enugu City

1. To identify challenges facing First bank branches in Enugu City In using promotion strategy advertising

1.4 Research Questions

The study seeks to answer the following research questions

1. What market promotions are being used in First bank branches in Enugu City?
2. What are the impacts of market promotions on sales volume at First bank branches in Enugu City?

• How can the promotional strategies enhance stability at First bank branches in Enugu City

1. What are the challenges facing First bank branches in Enugu City using the promotional strategies?

1.5 Significance of the Study

This study would be important and valuable to the following persons and institutions:

Academicians – Persons in academia such as college students and lectures will find the results of this study useful as learning materials and for research reference.

Entrepreneurs – Entrepreneurs or the investors in the fast food industry will find the results of this study useful, as it will highlight pertinent market promotions that can drive sales in their enterprises.

Financial Institutions – Financial institutions that provide financing to the fast food industry to start up and continue operations will use these findings to enable them understand the needs of commercial banks, so as to develop financial products relevant to them.

Customers – Customers or the fast food buyers of products from fast food industry will benefit from the results of market promotions that are geared towards meeting their needs.

Competitors – The rival enterprises in the same industry will benefit from a better understanding of effective use of market promotions to enhance sales.

Potential Entrepreneurs – These are enterprises or ventures interested in having a stake in the fast food industry. They will us use results of this study to make informed decisions on whether or not to invest in the fast food industry.