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.

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