Effects of Sales Promotion on Brand Loyalty, a Case Study of Globacom Nigeria Limited

18339 Words Jun 10th, 2012 74 Pages
CHAPTER ONE
INTRODUCTION
1.0 Background to the Study Every firm aims to make profit. It is generally agreed that one of the keys to making profit is boosting sales. To boost sales, a substantial number of consumers must choose one’s product over and above that of its competitors on a substantial number of occasions. One of the surest way of ensuring this happens is to cultivate brand loyalty to one’s product or service. Brand loyal consumers are more likely to choose their preferred products and/or service over its competition on a consistent basis. Considering the fact that consumers tend to be finicky with their choices, producers of rival brands tend to be uncompromising with product quality while being relentless with their
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It is believed that strategic promotions must add value to the brand and deliver an integrated consumer message. Sales promotion is the most significant of the communication or promotion mix.
In a highly competitive industry like the telecommunication industry in Nigeria where billions have been sunk and market share is essential to sustaining profits every kobo spent on marketing has to yield maximum results. Building brand loyalty is the equivalent of a firewall or a bulwark of defence against competitor brands, to what extent then do sales promotions contribute to building the bulwark that is called brand loyalty. On the other hand all studies tend to agree that brand loyal consumers are more difficult to convince to switch brands but they are not completely immune from swapping brands and taking advantage of juicy promotions and other offers therefore every company needs a feedback mechanism on just how well their ‘wall of defence’ i.e. brand loyalists are holding up against the tempting offers and juicy sales promotions of rival brands. To sustain brand loyalty brands must not be seen to be taking brand loyalists for granted and to be indifferent to the various enticing offers of rival brands. Such posture of real or perceived insensitivity could affect future brand loyalty. At the same time firms cannot afford to embark on sales promotions which have

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