Assessing the Effectiveness of Promotion as a Marketing Management Tool in the Nigerian Telecommunication Industry

By Obasan, Kehinde A.; Yusuf, Soyebo A. | Journal of Emerging Trends in Economics and Management Sciences, February 2012 | Go to article overview

Assessing the Effectiveness of Promotion as a Marketing Management Tool in the Nigerian Telecommunication Industry


Obasan, Kehinde A., Yusuf, Soyebo A., Journal of Emerging Trends in Economics and Management Sciences


Abstract

The rapid forces of globalization, change and competition have compelled firms to formulate marketing strategy and mix that operate beyond the present market challenges by satisfying current customer and entice a sizeable proportion of the target market in the long run through a continuous modification of its various tools. Using the Pearson correlation coefficient and a primary data obtained through a structured questionnaire administered to 100 selected staff of Globacom Telecommunication Nigeria. Ltd., this study assessed the effectiveness of promotion as a marketing management tool in the Nigerian telecommunication industry. This study revealed that promotion has a significant effect on marketing management with a correlation value of 0.869 which implies that promotion is a good marketing tool for survival, sustenance and expansion of business in the Nigerian Telecommunication Industry which requires regular reviews in order to meets customer's needs and satisfaction and must focus on the firm short and long run competitive advantage through a blend of the firm, clients, competitors and other stakeholder's interest. Hence, it is recommended that telecommunication Industry in Nigeria should appreciate and exploit the opportunities offered by promotion and learn how to modify promotional techniques to meet the needs to diverse target market like Nigeria

Keywords: marketing; promotion, competition, telecommunication, business; customer

INTRODUCTION

Globally, business environments always witness change in various forms with competition being a pivotal element in the change forces. From 1 850s, the focus on production business orientation changed to sales orientation in the early of 1900s because of increasing competition and from that time, companies tried to persuade customers to purchase their products. By 1950s, companies recognized that pushing products which they designed for customers was not effective enough. Instead, they developed products according to their customers' needs. Hence a new business orientation was built with the focus on the market's demands called marketing orientation.

The advent of globalization had helped the telecommunication industry to gain more popularity while its service patronage is growing rapidly among citizenry. This has prompt telecommunication marketers to developed new strategies aimed at increase their customer's size. Mobile phone is the most promising and high growth area of telecommunication, with more than 1.7 billion global subscribers and about 80% of the world's population covered by mobile networks. Mobile phone is becoming so popular that people are leaving landline to rely completely on mobile phones primarily becanse of mobility, safety, price and privacy Alhaiou (2000).

Furthermore, one of its benefits is the international roaming service capability, which gives consumers the ability to use same number to contact others in many countries any time anywhere. Presently, customers can go to market with more knowledge, choices and value that new technology has brought to customers' daily lives. The usage of mobile phones has now extended from voice communications to the internet Azila and Noor (2011), on the other hand, phones serve as a personal organizers, with built-in cameras, camcorders, games, music playback radio, push-to-talk, infrared and Bluetooth connectivity, and ability to watch video and TV services. Xevelonaki (2005)

This indicates that the new mobile phone device can now provide users with many facilities to ensure customer enj oyment, satisfaction and loyalty. The objective of service companies that offer communication services is to develop services to satisfy the customers. In due time, satisfied customers will be those that will be loyal and help the company to sustain business. It should be observed that retention of existing customers is much cheaper than acquiring a new customer; therefore, companies including communication companies are putting much more emphasis on promotions as a marketing management tool to managing customer relationship and to increase customer satisfaction and loyalty. …

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