EFFECT OF PROMOTIONAL ACTIVITIES ON THE CONSUMPTION OF A COMPANY PRODUCT
EFFECT OF PROMOTIONAL ACTIVITIES ON THE CONSUMPTION OF A COMPANY PRODUCT
The purpose of this study is to look into the impact of promotional activities on product consumption at MTN Nigeria. This study covered the study's goals, objectives, historical backdrop of the MTN mobile telecommunication network in Nigeria, significance of the study, hypothesis development, and term definitions.
This study also addressed the research methodology, data source, collecting, population, and sample procedures. It also included the presentation, analysis, and interpretation of obtained data, as well as hypothesis testing using questionnaires.
It also summarises the findings, conclusions, and suggestions for the company's products. Finally, this job will include a literature evaluation, such as defining promotion, sales promotion, and others.
1.1 Background of the Study
The end outcome of a company's operations in the business environment is the exchange of its output for buyers' or potential buyers' purchasing power.
Modern organisations have found themselves in a battle to gain and attract more buyers, therefore a marketing manager's major responsibility is to raise knowledge about a company's marketing mix via promotional activities.
Some people consider promotion to be synonymous with selling. However, selling refers to any effort to encourage trade, whereas advertising is a significant motivator for spending during the exchange process.
There is never ideal competition in the real market due of product variations, customer irrationality, a lack of proper marketing information, and so on. This leads enterprises to realise that there is a need to warn individuals or educate them about their existence and offerings.
The actions of business organisations are becoming more sophisticated as products vary over time, user tastes change on a daily basis, prices fluctuate, the distance between producer and customer grows, and distribution facilitation and awareness levels get more complex.
As a result, there is a need to align with society's expectations, particularly those of consumers. Information on value-added data must be communicated in an equal manner to the target audience; otherwise, communication groups can cause turmoil for the organisation.
The tightening of competition between enterprises has resulted in an increase in the intensity of individual seller sales promotion, and to say that individual interests are insurmountable is not an exaggeration.
As a result, in recognition of the human condition, the seller should assist in projecting a need to a want and in implementing a specific properly prepared sales advertising activity.
1.2 Statement of the Problems
Most telecommunications firms have performed poorly in terms of promotional activity, which has led to criticism against them.
The failure of several telecommunications firms, including MTN, to establish an in-house advertising department is a hurdle to the company's promotional goals; it is evident that marketers employed to influence consumer purchasing behaviours.
Many years ago, organisations focused on advertising, personal selling, and PR efforts. Many businesses dislike spending money on promotion.
· Organisations often struggle to prioritise marketing in order to improve operations.
· Impact of government regulation on product quality.
· How effective are the company's promotional methods for increasing product awareness?
· How the corporation distributes its products to consumers.
1.3 RESEARCH QUESTIONS AND HYPOTHESIS TESTING
This assertion is intended to provide insight into the researcher's expectations for the outcome of this pessimistic and optimistic angel. A negative assertion is known as the alternative hypothesis (HI).
Since the purpose is to know the impact that promotional efforts have on the consumption of a company's product, the following hypotheses could be made:
Ho: Promotional activities cannot offset the competitor's moves.
HI: Promotional actions can counteract a competitor's moves.
Ho: Promotional efforts do not boost sales by generating more curiosity.
HI: Promotional efforts boost sales by generating additional attention.
Ho: Promotional efforts do not serve as a motivation to acquire new clients.
Hi: Promotional activities serve as an incentive to acquire new clients.
1.4 PURPOSE OF THE STUDY
The research work is motivated by the fact that the cornflour industry is saturated with new products introduced each year. Some succeed while others fail, which is due in part to differences in advertising tactics.
Factors influencing the establishment of promotional activities, as well as the challenges associated with establishing the company's most frequently utilised promotional mix, will be investigated.
The failure rate of items, particularly new products, is significant. According to studies, the future rate of new and existing products is approximately 70%, such as the merit larger beer created by Guinness. MTN will discuss some of the elements that contributed to this failure, including a lack of effective promotional initiatives.
Also worth investigating is the topic of promoting high-quality items, as it is sometimes stated that a delighted client is the best advertising of any product.
The research effort should be evaluated since it will shed more light on the promotional activities and associated problems that manufacturing organisations have faced over the years, as well as provide appropriate answers that will, in turn, boost marketing impact.
1.5 SCOPE OF THE STUDY.
The research will look into whether sales promotion is the best promotional activity that a manufacturer can use to reach the ultimate consumers, as well as whether personal selling can be used to persuade consumers to buy the product.
Because of the advantage type, which is popular among promotional tools. The study will also look into advertising, specifically if television should or can be utilised first to transmit information about the company's marketing activities to consumers.
To properly carry out this research job, questionnaires and personal interviews were conducted with consumers and management from MTN communication services' marketing department regarding the company's sales promotion.
1.6 Significance of the Study
When this study is done successfully, it will be of considerable relevance to many parties. The first on the list is MTN Nigeria Plc, which is used as a case study in this project. Other benefits include mobile communication and multinational corporate representation in Nigeria.
This research work will also be relevant to that consumer because their suggestions and criticism will be taken into account, for example, the default MTN family and friends numbers and names were changed to MTN funlink with improved quality, and additional MTN numbers were added to the list from eight (8) to ten (10) numbers, including two international numbers.
The communication business (MTN) will also benefit from this effort because it will help distributors understand the best promotional tools to utilise when pushing the company's product to the target market.
The middlemen will also benefit because the strong advertising directed at prospective customers encourages them to hunt for the product in the middlemen's store.
Finally, this study will be useful to workers, lecturers, and students, some of whom hold opposing views on promotional efforts across the system. The result would also greatly help his reach because he will be awarded the HND (Higher National Diploma in Marketing) based on his successful complexion.
1.7 Limitations of the Study
Such research is never without constraints. The researcher experienced a number of issues that hampered the research process.
The challenges encountered were financial constraints, discrimination, and a failure to respond to the sampled respondents.
· Financial constraint: The researcher was unable to conduct the research to cover the entire country or specific states due to a lack of funds. Even though Benin has a large population, the researcher recognised that research requires significant investment to obtain the desired information.
· Time Constraint: The researcher spent a significant amount of time visiting the sampled respondents repeatedly to acquire the necessary information.
· Prejudice: Respondents were hesitant to provide requested information, posing a significant challenge for researchers.
· Non-response is the most challenging issue the researcher faced during the research process. Despite numerous attempts, several of the planned samples were unable to be recovered. Because the researcher was unable to replant the sample due to time constraints, he had to base his study and conclusion on the final data acquired.
1.8 Operational Definition of Terms
Some of the terminology employed in this study work serve a practical purpose.
· The promotional mix includes all activities aimed at informing or persuading. Ti is especially crucial when there are several comparable products on the market or when a product is new. The sort of goods being sold determines the type of promotional mix to use.
Promotion involves influencing or reminding customers about any component of the organization's marketing mix, including the organisation itself.
· Advertising: According to the America Marketing Association (AMA), advertising is a sponsored presentation of ideas, goods, or services by a sponsor.
· Advertising Agency: This independent company operates as a space broker for news media when dealing with advertisers directly.
· Personal selling involves face-to-face communication between prospective customers and salespeople.
· Public Relations: A planned approach to maintaining mutual understanding between an organisation and its audience.
Sales promotion refers to activities beyond advertising, personal selling, public relations, and publicity that try to increase product sales.
· Product: Anything provided to the market for attention, usage, or consumption that may satisfy a desire or need. It could be service goods or an idea.