1.1 BACKGROUND TO THE STUDY
It is not enough for a business to have
good products sold and services rendered at attractive prices. To
generate sales and profits, the benefits of products have to be
communicated to customers. In marketing, this is commonly known as
“promotion”. Although promotion is not done only for these factors but
for other such as to build brand loyalty, to reminds and reassure
costumers, to launch a new product and maybe to defend market share by
responding to competitors’ campaigns with their own advertising. A
business’ total marketing communications programme is called the
promotional technique and consists of a blend of promotional methods and
all other efforts aimed at making the public know the importance and
benefits of their product and services (Lieberman & Montgomery,
Promotional techniques vary from one
organization to another (Homburg, Sabine & Harley, 2009). For
examples organizations rendering construction or technical and
engineering services is not expected to use the same promotional
strategy as organizations that sell’s retail products. The organization
has to convey the message about the product on offer to its consumers.
This helps in sustaining a perennial demand for the product and in
suitably positioning it among the target audience. Before embarking on
promotions, organizations must determine and adopt promotional
strategies that fit the type of goods and services involved. According
to Baker (2008), the different channels available to the organization
for communicating the message constitute the promotion techniques. It
includes advertising, sales promotion, and public relations. This study
will analyze various promotional techniques and their fit with some
selected business organizations in Kano.
It is very important for every product
to be promoted, that is to say it needs to be drawn to the attention of
the market place and it’s benefit be identified. The aim of an
organization promotional technique is to bring existing and potential
customers to a state of relative awareness of the organization’s product
and a not just that but also to a state of adoption (Baker, 2008).
The promotional techniques (sales
promotion, publicity, personal selling, advertising, public relation)
have organizations at which it will be most effective (More &
Farris, 2004). Advertising and publicity are suitable for all most
businesses while the sales promotions and personal selling will be
suitable for smaller and retail businesses.
Promotional technique has the
fundamental goal of increasing sales and achieving a sustainable
competitive advantage. Promotional technique includes all basic,
short-term, and long-term activities in the organization that deal with
the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and
therefore contribute to the goals of the company and its promotional
The process usually begins with a scan
of the business environment, both internal and external, which includes
understanding strategic constraints. It is generally necessary to try to
grasp many aspects of the external environment, including
technological, economic, cultural, political and legal aspects (Baker,
2008). Goals are chosen. Then, a promotional technique or promotional
plan is an explanation of what specific actions will be taken over time
to achieve the objectives. Plans can be extended to cover many years,
with sub-plans for each year, although as the speed of change in the
merchandising environment quickens, time horizons are becoming shorter.
Ideally, promotional technique are both dynamic and interactive,
partially planned and partially unplanned, to enable a firm to react to
unforeseen developments while trying to keep focused on a specific
pathway; generally, a longer time frame is preferred (More & Farris,
2004). There are simulations such as customer lifetime value models
which can help marketers conduct "what-if" analyses to forecast what
might happen based on possible actions, and gauge how specific actions
might affect such variables as the revenue-per-customer and the churn
rate. In addition, firms can conduct analyses of performance, customer
analysis, competitor analysis, and target market analysis. A key aspect
of promotional strategy is often to keep marketing consistent with a
company's overarching mission statement.
1.2 STATEMENT OF THE PROBLEM
It is important to make it clear that
this study is the first on analysis of promotional techniques and their
fit with business organizations in Nigeria. Promotional technique should
not be confused with a marketing objective or mission. Promotional
technique describes how a firm will achieve the stated goal in a way
which is consistent with the mission, perhaps by detailed plans for how
it might build a referral network, for example. Technique varies by type
of market. A well-established firm in a mature market will likely have a
different promotional technique than a start-up. The researcher is
curious to know what will happen when a business organization adopts a
promotional strategy that does not fit the type of business and market,
hence the need to examine the analysis of promotional techniques and
their fit with some selected business organizations in Kano State.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the benefits accruable from adopting a promotional technique that fits the business type and market in Kano State.
- To examine the various techniques in use by businesses organizations in Kano State.
- To examine the effects of promotional techniques on business performance in Kano State.
1.5 RESEARCH QUESTIONS
- What are the benefits accruable from adopting a promotional technique that fits the business type and market in Kano State?
- What are the various techniques in use by businesses organizations in Kano State?
- What are the effects of promotional techniques on business performance in Kano State?
HO: There is no significance relationship between the right promotional techniques and business performance in Kano State.
HA: There is significance relationship between the right promotional techniques and business performance in Kano State.
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of this study:
- The results from this study will be useful for management of both
large and small businesses in Nigeria on the need to use the appropriate
promotional techniques that fits the particular business types and
market. They will also understand through this study the effects of
various promotional techniques on business performance.
- This research will be a contribution to the body of literature in
the area of the analysis of promotional techniques and their fit with
business organizations, thereby constituting the empirical literature
for future research in the subject area.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study will be limited to the
organizations in Kano State of Nigeria. It will also cover the
consistency between their adopted promotional techniques and their
business type and market.
LIMITATION OF STUDY
Financial constraint- Insufficient fund
tends to impede the efficiency of the researcher in sourcing for the
relevant materials, literature or information and in the process of data
collection (internet, questionnaire and interview).
Time constraint- The researcher will
simultaneously engage in this study with other academic work. This
consequently will cut down on the time devoted for the research work.
1.8 DEFINITION OF TERMS
Promotion: activity that supports or provides active encouragement for the furtherance of a cause, venture, or aim
Technique: a way of carrying out a
particular task, especially the execution or performance of a business
in terms of sales and marketing
Organization: an organized body of people with a particular purpose, especially a business, society, association, etc
Baker, M. (2008). The Strategic Promotional Plan Audit 2008. ISBN 1-902433-99-8. p.3
Homburg, C., Sabine K., and Harley K. (2009): Promotion Management - A Contemporary Perspective (1st ed.), London.
Lieberman, M. and Montgomery, D. (1998). "First-Mover Advantages". Strategic Management Journal (9): 41–58.
Moore, M. and Farris, P. (2004). "Order
of Market Entry.". The Profit Impact of Marketing Strategy Project:
Retrospect and Prospects: 81.