PROMOTION: A STRATEGIC INSTRUMENT FOR ACHIEVING MARKETING OBJECTIVES IN ORGANIZATION (A CASE STUDY OF DIAMOND BANK NIGERIA PLC, UYO)
1.1 Background of the Study
The importance of banks in any economy is measured by their contributions to economic growth and development, (Adcock, Halborg & Ross, 2011). Banks are profit seeking as well as profit making institutions. This is so because of its ability to retain deposits from customers and also gives loan to users of financial services. This makes banks involve in capital creation which yield profit to banks. Globalization is growing faster than ever, in order to keep up with the competition; bank has to think globally and to expand its business across borders. . A virile banking system is the one that promotes economic efficiency and sustained growth and development by providing a visible medium of exchange and mobilizing the saving from those sectors that generate surpluses and channeling them into productive investment. In this era of thinning margins and contracting, business opportunities must evolve innovative ways of improving service efficiency and profitability if they are to stay in business.
Marketing is the process of focusing the resources and objectives of an organization on environmental opportunities and needs in order to help defined the overall direction and goals to achieve the desired target objectives. Promotion is a direct way used to spread the word about a product or services of an organization .This is performed through the five elements of promotion mix, advertising, sales promotion, personal selling, public relation and direct marketing (Ronkainen 2009). With the growing importance of the banking sector, pressures are escalating for more effective marketing management technique of financial services in order to draw potential and existing customers to the banking services. Therefore, a combination of those promotional mixes mentioned, defines a firm promotional programme that would help influence consumers/customers to patronize and become loyal to the organization product offering as well as meet their marketing objectives. The development of promotion strategies require that a firm must determine what its best potential markets are and then select the means by which it will try to sell its products to them.
In most developing economy like Nigeria, financial institution especially banks operate in a highly competitive sector and its faced with numerous problems especially those border on how to attract customers and retain them because of the competitiveness of the industry and the strive for survival in phase of current consolidation.
Finally, in spite of the enormous advantages associated with effective promotional mix, research still shows that banks have not yet successfully embraced the marketing philosophy or achieved level of its implementation consistent with satisfying customers. This is so because their established promotion practices are in defection by bank customers from one bank to another. The magnitude of this problem and others propelled this research on promotion: A strategic instrument in achieving marketing objectives of an organization.
1.2 Statement of the Problem
In today’s competitive business world, consumers are considered to be king. This is so because they have several choice to make among alternative products, price and quality. It is important for producers to meet the needs of their customers in order to stay competitive. Experience shows that promotion of financial services may be hindered by inadequate promotional prices, poor promotional design, that is, they are not well planned and integrated into the marketing objectives in line with the corporate objectives. Much of the banking marketing literature concentrates on marketing theory more than promotion practice. To this end, effective promotion practice of financial services is crucial since services by banks are intangible products and it is hard to stand out, considering the fact that banks offer similar products which is easy for competitors to copy.
1.3 Objectives of the Study:
Based on the problems identified, the main purpose of the study is:
- To access the promotional strategies adopted by organizations to retain their customers.
- To examine how organizations integrate their promotional strategies into its marketing objectives.
- To examine the factors to be considered before embarking on promotional strategies.
- To determine the effects of promotional strategies on customers loyalty.
- To access the effects of promotional strategies and consumers buying behaviour.
- To determine the relationship between promotional strategies and marketing objectives.
1.4 Research Questions
This research seeks to find answers to the following questions:
- Is there any promotional strategies adopted in the organizations?
- Does an organization integrate their promotional strategies into its marketing objectives?
- Are there factors to be considered before embarking on promotional strategies?
- Is there any effect of promotional strategies on customer’s loyalty?
- Are there factors that influence consumers buying behaviour?
- Is there any relationship between promotional strategies and marketing objectives?
- Is there any relationship between promotional strategies and customer’s loyalty in the bank?
- Is there any effect between promotional strategies and consumer’s buying behaviour?
1.5 Research Hypotheses
In this research, the researcher will be able to differentiate between the null hypothesis and the alternative hypothesis. Null hypothesis is represented by Ho and alternative hypothesis represent by HI which as follows:
A Ho: There is no significant relationship between promotional strategies and marketing objectives.
HI: There is a significant relationship between promotional strategies and marketing objectives.
B Ho: There is a significant relationship between promotional strategies and customers loyalty in the bank.
HI: There is no relationship between promotional strategies and customer’s loyalty in the bank.
1.6 Significance of the Study
It is envisaged that at the end of this study it will be of benefit to:
- The researcher, as it is conducted in partial fulfillment for the award of Higher National Diploma in Business Administration.
- Organization will become aware of the various promotional strategies to be adopted to retain customers.
- Other researchers who might want to use the study as a source of reference in their academic endeavour.
- Customers will become aware of the various promotional strategies adopted by organizations and its benefits to them.
1.7 Scope of the Study
The study was delimited to promotional strategies which organizations combine specific ingredients of the promotional mix to promote a particular product. The promotional strategies are of five elements such as advertising, personal selling, sales promotion, direct marketing, and publicity that must blend harmoniously into an effective communication strategy, to meet the promotional objectives. Advertising is any paid form of non-personal communication directed towards target audience and transmitted through various mass media in order to promote and present a product, service or idea. Sales promotion is a different tactical marketing technique with mostly short-term incentives, which are designed to add value to the product or service, in order to achieve specific sales or marketing objectives.
Direct marketing is an interactive system of marketing using one or more advertising media to achieve measurable response anywhere forming a basic for creating and further developing an on-going direct relationship between an organization and its customers.
1.8 Limitation of the Study
In the process of carrying out the study, the following limitations were experienced:
- Time: Lack of time which hinders the successful completion of this research work on time for instance, the time of going to the banks to acquire more information was limited because of the combination of my departmental course work in school and the research study.
- Funds: Increased in petroleum pump price due to PENGASON strike leads to abrupt increased in transport fare which affect my original estimate for transportation.
- Materials: Inability of the bank staff (respondents) to release data and information concerning the subject matter for fear of exposing their confidential or classified information to outsider also limits the research work to an extent.
1.9 Definition of Terms
Promotional Mix: This concerns the different promotional tools combined to achieve the promotional objectives.
Marketing Objectives: These are tasks/targets set to be achieved by an organization in marketing its products within a stated period of time.
Marketing Plan: Outlines the specific actions intended to be carried out to interest potential customers to buy a firm’s product.
Promotion Strategy: These are different promotional techniques adopted to maximize sales e.g Advertising, sales promotion.
Product Life Cycle: These are the different stages a product passes through during it life time.
Consumers: The end users of a product or services.