The effects of sales promotions on customer market share of telecom companies in Ghana: a case study of Airtel Ghana Limited
Increasingly, infrastructural growth and technological advancement across the globe has increased competition in the telecom industry, as a result, telecom companies are attracting more customers for growth and sustainability. These industries employ a number of sales promotional tools and techniques to attract more customers and increase their resource base. However, questions have been asked on the empirical impact of existing sales promotional tools on the customer market share of the industries in Ghana. Using Airtel Ghana LTD as a case study and through mixed data collection methods including content analysis, document review, internet search and questionnaire administration to 40 respondents, and regression analysis, the study addresses four objectives: to identify the sales promotional methods; to determine the customer market share; assess the effects of sales promotions on customer market share; to identify the sales promotional tools that have greater impact on customer market share. The evidence revealed that six main sales promotional methods existed at Airtel Ghana and were all well implemented; encouraging support for overall promotional strategy (4.51), moving excess stocks onto retailers’ shelves (4.34), encouraging greater overall stockholding of a product (4.31), encouraging sales people at distributor levels to recommend the brand (4.19) achieving widespread distribution of a new brand (4.12), and achieving required display levels of a product (3.56). Further, the data indicated that not all current sales promotional tools at Airtel Ghana LTD had significant and positive effect on the customer market share. The highest impacted tools reflected by positive coefficient beta values and P values less than 0.05 included the use of Consumer savings through price packs (.141), Provision of premiums (.163), Point of purchase promotions (.349), Extra rewards such as discounts, and increased margins on sales, dealer competitions, exhibitions, (.141), Consumer promotions (.163), Business promotions (.141), and Trade promotions (.163). On the other hand, Cash refunds (p>0.05) did not predicted customer market share at Airtel Ghana LTD. Since current sales promotional tools are achieving successes, the implication therefore is that for management at Airtel Ghana LTD to advance the customer market share, there is strong need for management to put in measures to improve the implementation of current sales promotional tools.
A Thesis submitted to the School of Business, Kwame Nkrumah University of Science Technology, in partial fulfillment of the requirements for the award of a Master Degree in Business Administration (Marketing Option),