AN EXAMINATION OF THE EFFECT OF PROMOTIONAL TOOLS ON ORGANIZATIONAL PERFORMANCE
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.
According to Schoell and Guiltinan (1996) promotion objectives includes;
- Creation of awareness
- Provision of information
- Explaining the organizations’ action
- To make production trials possible
- To retain loyal customers and encourage new ones to adopt the product offering
- To increase the amount and frequency of products/service usage
- To establish a life-long relationship between firm and their valued clients.
- To target market segments.
- To induce intermediaries.
The term “Business Promotional tool performance is basically from American origin between (1929) and (1933) unemployment rose from 3.2% to 5.7%. In the U.S.A due to the great depression. “Business were failing while incomes were dropping down. Society values began to play down while individualism and profit maximization played high and in their places it began to emerge a new view for the well being of promotional tool, one of which business were seen as responsibility of their customer, communities and …