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EFFECT OF SALES PROMOTION ON THE SALES OF MOBILE PHONE LINES

ABSTRACT

The research study on the effect of sales promotion on the sales of mobile phone lines (A study of MTN lines) The purpose of the study is to investigate the sales promotion in the sales of mobile phone lines MTN in Owerri Metropolis. The purpose is also to Know if customers appreciate the incentive used for sales promotion. This research is intended to generally know the effect of sales promotion on the sales of mobile phone lines. Based on the above purpose, some treasures were reviewed to enlighten on the meaning of sales promotion. More concise and comprehensive information were gathered through primary and secondary data which help to elaborate more on this project topic, on the area of population and detaining of sample size and the method in questionnaire distribution. Data collected were analyzed and the following findings were made that there is a significant relationship between programme timing and success of sales promotion. The finding also revealed that there is a significant relationship between successful attainment of sales promotion and values of sales promotion and customer appreciation. Finally, the findings summarized and the following recommendation we made that the mobile phone line (MTN) should take time and plan, design and appreciate sales promotion progamme and offer incentive that can lead to quick responses from consumers.

CHAPTER ONE

INTRODUCTION 

1.1   BACKGROUND OF THE STUDY

Sales promotion is one of the elements of promotional mix. It is a short- time incentive use by marker or producers to include or lure customers to buy their product. Sales promotion is an indirect from of the promotion al mix used to stimulate and guide action. It is a set of the promotional activities that stimulates consumers purchasing and dealers effectiveness. Sales promotion is intended to aid both consumers pull and dealers push it holds a middle ground between advertising and personal selling. It is usually not directed at much longer ground than a typical personal selling efforts, sales promotion can only last for about two months to six months. This means that it can only last over a limited period.

Sales promotion creates something execrate that can arouse interest, offer a buying desire, spark- off an immediate reaction from the audiences; Adirka, Ebue, and NNolin (1996).It is used to retain customers and to attract new ones. These activities are also use to create store traffic. This is because these short terms incentives are being offered free of charge. These activities are thus categorized into consumer sales promotion techniques in terms of their consumer and dealer focus. Customer pill promotion techniques are such activities like sampling price incentive, contest, premium etc while trade push promotion techniques are such activities like merchandise allowance, money bonuses and gifts. Management assistance like training.

Sales promotion is a tool used by manufacturers to include sales with a short time.  Having looked at the background of this study from the perspective of the concept of sales promotion and relating it with the case study of the groups to be surveyed, the researcher wishes to proceeds on the backgrounds of MTN lines in Owerri the MTN lines deals with the production in telecommunication world. These firm found themselves as a rival to other lines like Econet, Globacom and M- Tel etc in the Volatice environment today.

1.2 STATEMENT OF PROBLEM

Firms that want to achieve meaningful success in their business are suppose to embark on sales promotion various sales promotional devices can be employed. Sales promotion when property executed should increase sells sales of the product. There is little wonder whether this is the case with firms that s ell mobile phone line (par) researcher is sure whether companies that sell mobile phone lines embark on sales promotion. The nature of promo –tools used by such firms is also of concerned to the researcher. It is also doubtful if sales promotion boost sales. It is uncertain to the researcher whether programme timing affects the success of sales promotion. Whether or not customers appreciate the incentives use used for sales promotion is a problems arising from sales promotion which could inhabit consumer purchase of MTN lines. How sales promotion affects consumer behaviour with respect to MTN products is another area of concern. The researcher is also not sure, how consumer perception of MTN Lines affects their purchase.

1.3  OBJECTIVES OF THE STUDY

The objective of the study are:

1. To know whether MTN and other mobile lines firms embark on sales promotion.

2. To know the promotional tools used by the firms 

3. To known the effect of sales promotion on sells 

4. To known if porgramme timing affect the success of sales promotion

5. TO know if customer appreciate the incentive used fro sales promotion 

6. To know the nature of problem arising from sales promotional activities and if such problems could inhabit the purchase of the product. 

7. To know whether sales promotion affect consumer behaviour in terms of purchase of phone lines.

8. To know whether consumer perception MTN lines affect their purchase of their product.

1.4 RESEARCH QUESTIONS

The following questions are formulated?

(1) Do MTN other mobile phone lines firms embark?

(2) What are the promo- tools used by the firm?

(3) What id the effect on sales promotion on sells of the company?

(4) Does programme timing affect success of sales promotion?

(5) Do customer appreciate the incentive used fro sales promotion ?

(6) What are the nature of problem arising from the sales promotional activities and do such problems inhebit the purchase of such product? 

(7) Do sales promotion affect consumer behaviuer interns of purchase of phone lines?

(8) Does consumer perception of MTN lines affect their of the product?

1.5 STATEMENT OF HYPOTHESIS

1. H0: There is no significance relationship between progamme timing and the success of sales promotion in the MTN phone line.

H1: There is Significance relationship between progamme timing and the success of sales promotion in the mobile phone lines.

HYPOTHESIS TWO

2. H0: There is no significances relationship between customer appreciation and value of sales promotion incentive and the successful attainment of sales promotion objective.

H1: There is significance relationship between customer appreciation and value of sales promotion incentive and the successful attainment of sales promotion objective.

1.6 SCOPE OF STUDY

The scope of this study covers consumer. Users of GSM lines and operators in the mobile phone lines such the MTN, Econet, Global com etc. in Owerri Metropolis. The study and investigations are centered on GSM lines operates VA businessmen, and public servants, it is from of this scope that the researcher would determine the population for the study in chapter three.

1.7 SIGNIFICANCE OF STUDY

This study is aimed at fulfilling the requirement for the award of Higher National Diploma in Marketing by the instruction. The result of the study will enable me the researcher to understand the importance of sales promotion on the mobile phone line.

To The organization, they will know to design effective sales promotional campaigns, the timing of sales promotional, the timing of sales promotional progarmme and how effective, strong and appealing sales promotional incentives can be in the success of any sales promotion campaign.

To the customer, it will also of a very big help to them, this is because in the reduction of the mobile lines prices in the name, of price – off by the mobile phone industry, both big or small will have access to easy communication. Business will be moving smooth because their has been easy communication with people far and near.

1.8 LIMITATION OF THE STUDY

There were limitations encountered by the researcher which are as follows: 

1. Time factor: “Time tracts for no man” was a constraint left for the researcher, she would have loved to carryout this research on three services network (ie MTN, Econet, Global com). If she would be given six months for no knowledge is a but due to some other commitment.

2. Financial Status: The financial researchers of the researcher were not truly enough to carryout the researcher were to the extent she would have loved to because of her capacity as student. 

3. Attitude of Respondents: Most respondents who were approached to period information showed non- chalent attitude in doing so. Most MTN customers and even dealers Retailer were illiterates who can nether read not write, thus making it difficult for them to complete the questionnaire.

4. Despite the catalogue of problems mentioned above, as encountered in the course of the research effort were made adequately contend with the obstacle as to achieve a good result.

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