The deregulation of the Ghanaian telecom sector in 1994 has led to the increase in the
number of telecom firms in the country which render identical services. The ever
increasing competition in the industry has prompted telecom firms to be determined and
ensure satisfaction of customer needs and wants more effectively than their competitors.
In other for these telecom firms to succeed in this ever increasing competitive market,
they employ a lot of different promotional tools to attract and retain their customers.
One of the most commonly used promotional tools is sales promotion which provides
incentives to customers or to the distributor channel to stimulate demand for a ...view middle of the document...
The Ghanaian telecom industry is one area that has experienced an increased competition in the last six (6) years.In August 1994, the Government of Ghana deregulated the telecom sector and took an important step in embracing the potential of a competitive market to generate growth
and innovation in the sector. The Government of Ghana therefore authorized four
different mobile operators to operate in Ghana and also created a robust and aggressive
market for setting off the wireless telecommunication network, whose growth has been
strong and spreading through the country in recent years. This reform was also to ensure
that, information is made accessible to all and sundry, and not only to the rich in society
as was the case. In 1997, Ghana also signed the final World Trade Organization (WTO)
agreement on basic telecommunications indicating their readiness to enhance
information in the country and beyond (Mensah, 2006).
The Telecommunication industry in Ghana currently has grown tremendously and
currently has six telecom operators notably are MTN Ghana, Expresso, Tigo, Vodafone
Ghana, Airtel and Globacom. In the telecom industry where competition is intense, the
criterion for success would much depend on creating awareness, persuasion and
informing customers of the existence of offerings. With the introduction of the Mobile
Number Portability (MNP) by the National Communication Authority (NCA) and the
Ministry of Communication in 2011, which allows a consumer to port from one
network to another without incurring any cost and also maintaining their number has
further deepened the increasing competitiveness among the telecommunication
companies. This increased competition in the industry, has however resulted in several
communication tools being employed by marketers to help them succeed in this era of
competitions. One of the commonly used communication tools by Ghanaian telecom
providers is sales promotion.
Sales promotion is an initiative undertaken by organizations to promote and increase
sales, usage or trial of a product or services (Aderemi, 2003). Sales promotion refers to
the provision of incentives to customers or to the distribution channel to stimulate
demand for a product. It is an important component of an organizations overall
marketing strategy along with advertising, public relations and personal selling. Sales
promotion acts as a competitive weapon by providing an extra incentive for the target
audience to purchase or support one brand over the other. It is particularly effective in
spurring product trials and unplanned purchases (Aderemi, 2003).
Sales promotion is a marketing activity that adds to the basic value proposition behind a
Product (i.e. getting more for less) for a limited time in order to stimulate consumer
purchasing, selling effectiveness or the effort of the sales force (Aderemi, 2003). This
STATEMENT OF THE PROBLEM
Service providers like the Telecom operators’ needs to...