CHAPTER ONE

INTRODUCTION

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, 1998).

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 objectives.

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:

1. To examine the benefits accruable from adopting a promotional technique that fits the business type and market in Kano State.
2. To examine the various techniques in use by businesses organizations in Kano State.
3. To examine the effects of promotional techniques on business performance in Kano State.

1.5             RESEARCH QUESTIONS

1. What are the benefits accruable from adopting a promotional technique that fits the business type and market in Kano State?
2. What are the various techniques in use by businesses organizations in Kano State?
3. What are the effects of promotional techniques on business performance in Kano State?

1.5       HYPOTHESIS

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:

1. 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.
2. 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

REFERENCES

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.