EVENT MARKETING AS TOOL FOR IMPROVED SALES PERFORMANCE IN THE TELECOMMUNICATION INDUSTRY: A STUDY OF MTN NIGERIA LTD, VICTORIA-ISLAND, LAGOS
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CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Event marketing is growing at a rate of three times that of traditional advertising. Though relatively small compared to the major components of the marketing communications mix-advertising, sales promotions and P-O-P communications-expenditures on event sponsorship are increasing. Thousands of companies invest in some form of event sponsorship (Hussainy, 2008).
Event marketing is defined as a form of brand promotion that ties a brand to a meaningful athletic, entertainment, cultural, social or other type of high-interest public activity. Event marketing is distinct from advertising, sales promotion, point-of-purchase merchandising, or public relations, but it generally incorporates elements from all of these promotional tools. Event promotions have an opportunity to achieve success because, unlike other forms of marketing communications, events reach people when they are receptive to marketing messages and capture people in a relaxed atmosphere (Muehling and Laczniak, 2007).
Marketing is also seen as a process by which individuals and groups obtain what they want through creating, offering and exchanging products of value with others. All sport and recreation organizations undertake marketing, although they are often unaware that they are actually doing so. Listing in the yellow pages, telephone directory, placing information in the local newspaper, offering a discount and special offers etc. are all forms of marketing.
Thus, an event is a marketing communication activity and can be looked at as an activity with a high level of involvement. Because events involve their target group and involve it in the company and the products as well as they give the target group an experience that appeals to all senses. In other words, events appeal to the feelings and emotions that arise in the individual and the event-based communication becomes differently visible and alive. The message may therefore be able to create a stronger effect than through traditional communication channels (Romaniuk and Sharp, 2004).
From its origins in event planning, the event marketing industry has seen great growth in the last five years and has consistently been one of the most effective tools that marketing professionals have at their disposal in terms of making a tangible connection to current and potential customers. The increasing competitive pressures brought on by globalization are forcing business professionals to find new ways to engage customers. Not surprisingly, savvy event marketing professionals are therefore focusing the majority of their efforts and budgetary spend on lead generation tactics such as trade shows. While it is important to garner leads, marketing and specifically event marketing professionals cannot lose sight of the fact that the sales cycle only begins at lead generation and that current and prospective customers must also be nurtured even beyond purchase. Companies can benefit tremendously from the deeper event marketing touch points that promote nurturing such as proprietary conferences that provide a controlled environment for delivering messages and closing business. The nurturing process will allow the customers to more effectively be funneled into the subsequent stages of the sales cycle thus creating greater opportunities to develop into repeat customers (Saleem, 2010).
Event marketing is growing rapidly because it provides companies alternatives to the cluttered mass media, an ability to segment on a local or regional basis, and opportunities for reaching narrow lifestyle groups whose consumption behavior can be linked with the local event.
It integrates the corporate sponsorship of an event with a whole range of marketing elements such as advertising, sales promotion, and public relations. Corporations both large and small have grown this industry at a rate of 17 percent per year, and they have achieved a high level of success.
An event is a live multimedia package with a preconceived concept, customized or modified to achieve the clients’ objective of reaching out and suitably influencing the sharply defined, specially gathered target audience by providing a complete sensual experience and an avenue for two-way interaction (Jalees, 2006).
Event marketing involves canvassing for clients and arranging feedback for the creative concepts during and after the concept initiation so as to arrive at a customized package for the client, keeping the brand values and target audience in mind. Marketing plays an important role in pricing and negotiations as well as identifying opportunities to define and retain event properties by gathering marketing intelligence with regard to pricing, timing etc.
Statement of the Problems
Traditional event marketing methods have taken a backseat. Organizations using event marketing strategies are left behind in terms of products sale and acquiring new customers. In spite of spending millions of Naira on advertising, companies are not being able to generate effective leads as expected or converting them into loyal consumers.
Again, marketers face extensive challenges in their marketing communications, for example, increased media and audience fragmentation, greater competition in the media market, and decreased effectiveness of traditional advertising and promotion (Belch and Belch, 2007) Therefore, marketers constantly look for new ways to communicate with consumers in which process many expenses are being incurred.
The sustainability of events marketing can be very expensive to maintain in the sense that Clients might be mounting pressure on the distributors because they are under pressure from their own stakeholders.
1.2 Aims and Objectives of the study
This research work seeks to study event marketing as tool for improved sales performance and the objectives of this study include:
- To measure how event marketing increases company market share
- To examine how event marketing increase customer loyalty.
- To examine how event marketing increase product market coverage;
- To examine how event marketing increase consumer desire for the product.
- To examine the extent at which event marketing will boost company competitive edge
1.3 Relevant Research Questions
- How does event marketing influence organizational sales volume?
- Does event marketing has effect on sales performance?
- How does event marketing influence consumers’ buying behaviour?
- How event marketing affect customer loyalty?
- To what extent do you think event marketing create competitive edge for the company’s product?
1.4 Research Hypotheses
In carrying out this research work the following theoretical statements are suggested to serve as a direction on which the work will be premised:
- Ho: Event marketing does not have any significant influence on organizational sales performance.
H1: Event marketing have significant influence on organizational sales performance.
- Ho: Event marketing does not have any effect on organizational sales volume.
H1: Event marketing have effect on organizational sales volume.
- Ho: Event marketing does not boost company’s competitive edge.
H1: Event marketing boost company’s competitive edge.
Scope of the Study
This research work examines the event marketing as tool for improved sales performance in the telecommunication industry with a view to explore MTN Nigeria Ltd located at Victoria Island, Lagos.
The study as perceived might face some logistic challenges in term of the time and the costs that will be involve in carrying out the research, but nevertheless, it would endeavor to accomplish its aims and objectives.
- Significance of the Study
It is hoped that the findings and recommendations of the study will be of great benefit through the following ways:
The study will broaden students understanding about the importance of event marketing in any business environment and it effects on sales performance.
The study will be of great benefit to the public by bringing to their awareness about the existence of a product and its value.
The study will also help sales manager to monitor the trend of the market and the consumption pattern in order to establish an interactive dialogue between an organization and its customers.
It will also help the sales personnel to reposition their branding and marketing strategy in the society in order to attract and retain their target market.
- Definition of Terms
Sales Performance: Refers to the ability of a company’s sales professionals to œwin at each stage of the customer’s buying process, and ultimately earn the business on the right terms and in the right timeframe.
Consumer: A consumer is a person or group of people that are the final users of products and or services generated within a social system. A consumer may be a person or group, such as a household.
Event Marketing: This is a process by which individuals and groups obtain what they want through creating, offering and exchanging products of value with others.
Environment: Environment (systems), the surroundings of a physical system that may interact with the system by exchanging mass, energy, or other properties.
Influence: Influence is the action or process of producing effects on the actions, behavior, opinions, etc., of another or others.
Purchase: This refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise.
Organization: An organization is a social group which distributes tasks for a collective goal.
REFERENCES
Hussainy, S. K. (2008). Advertising Styles’ Impact on Attention in Pakistan. KASBIT Business Journal, 1(1), 28-38.
Jalees, T. (2006). Brand Personification of Mobilink, UPhone, Telenor, and Warid. Journal of Research Market Forces, 2(2), 50-76.
Latif, A. and Abideen, Z. l. (2011). Effects of Television Advertising on Children: A Pakistani
Sharp, J. (2003). European Journal of Economics, Finance and Administrative Sciences,Issue, 31, pp. 07-16.
Romaniuk, J., & Sharp, B.. (2004). Conceptualizing & Measuring Brand Salience. Marketing Theory Articles, 4(4), 327-342.
Romaniuk, J., & Sharp, B. (2003). Brand Salience &Consumer Defection in Subscription Markets. Journal of Marketing Management, 19:3, 25-44.
Saleem, H. (2010). Few Determinants of Compulsive Buying of Youth in Pakistan. European Journal of Social Sciences, Volume 17, Number 4, pp. 521-535.
Ayanwale, A. B., Alimi, T. & Ayanbimipe, M. A. (2005). The Influence of Advertising on Consumer Brand Preference. Journal of Social Science, 10(1), 9-16.
Muehling, D. D., Laczniak, R. N. (2007). œAdvertising’s immediate and delayed influence on brand attitude: considerations across message-involvement levels, J. Advert., pp. 23-34.
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