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CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Promotion is the systematic design and communication of product(s) ideas, knowledge and attributes to identified market segment with a view to eliciting customer response through the use of appropriate communication medium and technology.
Promotion
is the elixir to organization success. When organizational leaders are able to
create or develop a product for an identified market, what remains is to
properly promote both the organizational products and image to the favourable
attention of its publics, customers, shareholders creditors etc.
The essence and importance of promotion on marketing communications in the
marketing task is too crucial that it often dictate the success or failure of
products/service engaging in promotional activities. Marketing communications
involves setting objectives and goals to bring about awareness creation,
information dissemination and persuasion of market segment to respond and buy
products. Managerially promotion activities involved using the system approach
to plan organize, coordinates advertising programmes and other promotional
efforts.
Promotion
management has become so systematic in the 21st century to the extent that the
marketing effort has been broken down into sub-systems, thus we now have advert
managers, public relations (PR) experts, publicity experts, copy writers,
digital graphic illustration and even outdoor digital mega screen
technicians
Promotion not only serves to inform but also serves to delight the customer
through mind blowing, promo-campaigns and satisfaction creation. Promotion is
important to people, organizations and society because it helps oil the wheel
of economic growth and development. Promotion of goods and services helps to
bridge the gap between the manufacturer of products and consumers of such
products and services. Promotion helps to communicate the product knowledge and
product availability to seekers of goods and services. Promotion creates
efficiency channel effectiveness as middle-men strive to achieve better
distribution systems, creation of assortments and delivery of superior services
down the chain. Promotional activities has helped the organizations to become
more competitive, by developing better products and superior service delivery
techniques in their struggle to increased/retain their market shares.
1.2. STATEMENT OF PROBLEM
The basic problem for research is to justify the effectiveness or impact of advertising to adopt make sales especially during the introductory stage and why is it that during introductory stage of the product life cycle a new product dies not reaching the growth or maturity stage. What method(s) of advertising are to and whether those methods are actually effective enough to achieve the desired goals.
Over the years, many organizations in Nigeria seem to believe that once goods or services are produced; there is ready market for such goods and services. As they do not seem to recognize or appreciate the place or role of advertising towards achievement of their organizational profit or sales objectives.
1.3. OBJECTIVES OF THE STUDY
In the kind of adventure, there must be a study to ascertain its success. If that is a general and acceptance principle the researcher also has some reasons in going into the study under consideration. In view of fact, this study is carried to achieve the following objectives.
1. To examine the effect of promotional tools on organizational performance
2. To access the degree of the effect of promotion on organizational growth and profitability
3. To recommend ways of improving organizational performance through promotion.
1.4. SIGNIFICANT OF THE STUDY
This project will be of importance to the (NASCO)company limited in adopting a more effective way of advertising to take care of uncertainly in the future which is likely to occur in the industry especially in marketing new product entrance. The finding of the study will also be of immense benefit to other companies who may wish to carry out further research work on how advertising can be used when a new product is introduce into the market. The finding will be useful to the marketing department of Kaduna polytechnic who may be interested in researching further into advertising new product or services in Nigeria and final year student in particular who will graduate and go into business word to face problem in the advertising system of the organizations, the student may find themselves.
1.5. SCOPE OF STUDY
The study is restricted to the examination of the effect of promotional tools on organizational performance using Nasco companies as the case study
LIMITATION OF THE STUDY
The scope of the research is limited by factors inherent in our environment such as finance, time and attitude of respondents. The limitation encountered in the course of the investigation are listed below.
It is evidently clear that things are very difficult in Nigeria these days. This problem becomes more apparent due to the high cost of transportation, a considerable increase in price of writing, typing and binding material at the time of writing this project due to the devaluation of Naira.
The researcher had struggle in between lecture period and data collection. As a result of this, some places which were to be visited were abandoned.
The attitude of some consumers or customers who could not ,fill the questionnaire correctly and even some did not return the questionnaire at all. Also attitude of the administrative marketing manager of NASCO towards answering questions. There was the suspicion that information revealed could be used to the detriment of the company, or could be revealed to competitors despite the assurance from the researcher that all information provided will be treated with utmost secrecy.
1.6 STATEMENT OF HYPOTHESIS
For the purpose of this study the following hypothesis have been formulated
H0: Promotional tools do not have an effect on organizational performance.
H1: Promotional tools have an effect on organizational performance.
1.7 DEFINITION OF TERMS
Marketing: is the management process responsible for identifying, anticipating and satisfying customers’ requirement profitable.
Product. Product is anything that can be offered to market for attention, acquisition or consumption, it includes physical objects, services, personalities, places, organization and ideas.
Promotional tool: is are the various methods of proportion that a company can adopt; Such as advertising, personal selling, sales promotion, public relations and publicity.
Advertising this is a form of paid public announcement intended to promote the sale of commodity or services or to bring about some other effects desired by adviser. It is essentially a form of communication through such diverse media as handbills, newspapers, letters and radio television broadcast.
Market share is a firm percentage of the industry’s total sales.
Invocation a new approach or concept in the, production cycle frequency involving the use of invention practiced task.
Personal selling: The process of making oral commercial representation during buying or selling interview or services.
Marketing strategy: This is the marketing logic by which the business units expect to achieve the marketing objectives.
Sales promotion: It has been destined as a short term incentive to encourage purchase or sales of product or services.
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