Sales Promotion Tools and Target Market in Nigerian Banking Industry

Abstract

The objective of the study was to examine if the tool of sales promotion in banking industry is determined by the target market. Survey research design was adopted. Primary source of data was collected using a self-developed structured questionnaire which was administered to customers of selected banks in Ado-Ekiti Metropolis. Purposely sampling technique was used to select 200 respondents from the banks out of which 192 were correctly filled and returned. The results were analysed using Statistical Package for Social Science (SPSS) version 20. Findings revealed that the strategies are significantly related to target market and the design of those tools is actually determined by the target market. Among the sales promotion tools, financial incentives were found most effective, followed by gifts and raffle draw, respectively. It was concluded that the management of banks should embrace the use of these tools for more patronage. The study recommended that the design of sales promo tool should be  based on customer’s needs; banks should embark on customer survey research to discover more varieties of gifts that will enable them to accomplish their objectives at a specific sales promotion period. The management of banks should create more awareness on the use of raffle draw to enhance greater patronage. The implication of the study is that if the management of banks should strategically implement the aforementioned tools it will draw greater customers to the business.

Keywords: Financial incentives, Gifts, Raffle draw, Banks and Target market.