CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Nowadays, organization are undergoing fast growth and often disturbing transformation which are due to the information technology and technological advancement currently going on.

Sales promotion and advertisement consist of short term incentive to encourage sale and advert of product or services Kotter and Amstrong (2004). Also Dennis (1993) state that sales promotion and advertisement in marking activities other than personal selling and public relation that stimulate consumer purchasing and dealer effectiveness such as display shows etc.

Organization profitability on the other hand, is increasing the gain delivered from business or by selling things especially after paying the cost involved. Organization must communicate with their actual potential busters.

This is necessary because it you do not say “I am here” nobody will actually know that you are there.

There as a group of potential to take place there is need for product differentiation and this is difficult in the communication system.

It is very important and sale promotion activities such as price, cut, and trade stamp coupon, premium, context, free trail products e.t.c to source high sales and to encourage users to patronize their products. If an organization has a good and will designed products, it will be very difficult for them to purchase that product and it will be to no value to the society.

Many organizations and religious group are nowadays engaging in advertisement and sales promotion and are spending Hug sum of money on them. The reason is the pressure for short term profit, the accountability factors, the change in the market place and the increasing power of retailers and consumer.

Organizations are investing money in advertisement and sales promotion which in return generates immediate result in increased profit.

Some examples are the NITEL new line with a small bag free SMS they give out to customers, family and friends numbers that are registered free and are called at cheaper rate, GLO “who wants to be a millionaire and others”. All these are no line with the existing business.

Advertisement and sales promotion is therefore noted in this context on how it affects organizations overall profits.

HISTORY OF GLOBACOM MOBILE NETWORK

The globacom mobile network was launched in Nigeria in the year 2003, and they had the vision to be the market leading service provider in Nigeria and they also aspired to build African biggest and best telecommunication network in Africa.

As a company, globacom recently made history as the first single company to haveand 800 million high capacity, fibre-optic cable successful submarine cable form the united state of America to Nigeria and it will decrease telecom process provided excess bandwidth to all cities connected to the  cable. The historical initiative will also improve teleconferencing, distance learning, disaster recovery and telemedicine among several benefits.  As part of giving back to the communities in which they operate Globacom limited sponsors the national football teams and the premier league in Nigeria and Ghana.

In 2010, Globacom sponsored the Africa handball tournament in Benin Republic. Globacom has also sponsored the annual confederation of Africa Football (CAF) awards since 2008 also they have sponsored the Glolagos international half marathon.

1.2   STATEMENT OF THE PROBLEM

Many companies or organization that renders similar services are faced with challenges from their counterparts. For an organization not to be thrown out of business it needs to carry out advertisement and sales promotion which enable it have a share in the market.

This study which is carried out in a company “Globacom Nigeria in Lagos” will critically examine the following with a view of ascertained whether advertisement and sales promotion can be used as an effective marketing tool.

1.  How companies profitability can be attained and maintained

2.  How sales promotion and advertisement will serve as effective tool for companies profitability

3.  The relevant of sales promotion/advertisement profitability.

4.  How companies can be able to use sales promotion and advertisement.

1.3 PURPOSE OF THE STUDY

The purpose of this stud is to enable the firm/company achieve the followings:

1.  To increase the sales and profit of the organization

2.  To improve the dividends to shareholders in the organization

3.  To enable the firm know the promotion programmes to organization in order to remain in the market.

4.  To increase the organization performance

1.4 RESEARCH QUESTIONS

To carry out this study successfully, the following research questions were used:

1.  Is advertisement and sales promotions and effective marketing tools for organizational profitability?

2.  To what extent can advertisement and sales promotion leads to organizational profitability’s?

3.  How does sales promotion and advertisement increase organization productivity.

4.  What other advertisement and sales promotional activities can this organization introduce to increase sales and profitability?

1.5 SIGNIFICANCE OF THE STUDY

The study has the following significances:

1.  It will help the organization to now some advertisement and same promotional tools to use as to improve their profitability.

2.  The study will draw the organization and it s consumer closer thereby making the organization now their test preferences and wants.

3.  This study will equally help management to examine whether advertisement and sales promotion can actually increase their sales volume or not.

4.  Finally, the study will help the consumer know the usefulness of consuming the product of the organization.

1.6 SCOPE OF THE STUDY

All organizations are profit oriented, and of the ways to maintain the profit level of organization is through sales promotion. This study is therefore focuses on Globacom mobile network Lagos, Nigeria to evaluate the impact of their sales promotional advertisement programmes on their profitability for period of twelve months.

1.7 LIMITATION OF THE STUDY

Limitation are those factors inherence in the research situation that might affect the result which the investigator must acknowledge and recognize Olannyu (2006). Some of the problems encountered during this research work include the following:

1.  INADEQUATE TEXTBOOKS: This was a problem during the gathering of relevant literature for the study.

2.  TIME FACTOR: The duration for writing this project was too short for thorough analysis of the research work

1.8   OPERATIONAL DEFINITION OF TERMS

1. SALES PROMOTION: this is a temporary offer of alternative prices and inducement incentive to customers these incentives include offering free sample trade stamps, trade fairs, bonaza’s  prices deals etc. (Busarietial 2002)

2. ADVERTISMENT: This is commonly defined as any paid form of non-personal presentation and promotion of ideals, goods, or services by an identified sponsor Anyanwu (2000) draw from the three perspective of advertisement (society consumer and business perspectives) and give a more embracing definition. He defined advertisement as “Primary tools in the marketing decision variable firms used to inform, persuade and educated the customers about product offering by an identified sponsor with a view to developing performance for the product and service.

3. ORGANIZATION PROFITABILITY:

This is the efficient and effective use of  scares resources in order to make profit.

4. FREE SAMPLE:

This is the product given to people to know how the material is and what it can do for them, this is to attract customer to patronize the product and service rendered.

5. PROMOTION: This is the third element of the marketing mix. It consists of all the activity used by an organization to bring it service to the favorable attention of customers or consumers.

6. MARKETING: This is the performance of business activities that direct the flow of goods and services from the company which is the producer to the consumers or users.

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