The present paper investigates the influence of sales promotion as a marketing strategy of the telecommunication firms in Nigeria on consumer buying and network switching. Four Nigerian telecommunication firms—Globacom, MTN, Etisalat and Airtel—were selected for the study with a sample of 400 respondents. Building on the Attention, Interest, Desire and Action (AIDA) model, the study implements both descriptive and inferential methods of analysis. The analyses led to the acceptance of an alternative hypothesis that sales promotion is a significant catalyst in influencing consumer buying. The study revealed that educational level, number of operative Subscriber Identity Module (SIM) cards owned by the subscribers, age, gender (more female) and even lottery had a significant effect on buying. Further evidence showed that customers were likely to abandon their present telecom provider if they did not carry out sales promotion either as an incentive to buyers or compensation for patronage overtime. The customers were ready to switch to other telecommunication providers that offered mouth-watering sales promotions. The study therefore recommends the need for innovative, dynamic and well-differentiated sales promotional services by the telecommunication firms if they desire to maintain and increase the market share.

The prime motive of every business is to increase the sale of goods or services that it deals in. Several methods are adopted for the achievement of this goal; some direct while others indirect. Sales promotion is one of them. Sales promotion is defined as a “diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and/or greater purchase of particular products/services by consumers” (Kotler, 1999). Sales promotion has become a valuable tool for the marketers and its importance has been increasing rapidly over the past few years. However, variations occur in the effects of sales promotion based on the attractiveness of the concerned brand (Alvarez and Casielles, 2005). The presence of large, competitive and attractive sales promotions in Nigeria today can be traced majorly to the telecommunication industry.

Before the dawn of GSM Communication in 2001, telephone infiltration in Nigeria was low to the point of negligibility. The Nigerian Telecommunications Limited (NITEL) had the monopoly. But all that changed with GSM revolution brought about by the licensing of Econet (that evolved to Vmobile->Celtel->Zain->now Airtel), Mtel, MTN and the later entry of Starcomms, Globacom, Visaphone, Multilinks and Etisalat into the industry. At first, all that was needed for marketing success was availability. Because the demand for phone was far more than the supply, these companies were doing well, snapping subscribers after subscribers from phone-starved Nigerians. That has since changed. The landscape is becoming more competitive and the growth rates of yesteryears are becoming hard to replicate. Concisely, continued success in the contemporary Nigerian GSM market calls for marketing wizardry. From the figure being reported by Nigerian Communications Commission (NCC), the Nigerian telecommunication market is reaching saturation point which is evident in two noticeable observations which are considered as a threat by the telecommunication firms: (1) Most of the new lines (Subscriber Identity Module [SIM] cards) being activated are purchased by people who already own one or more phones. (2) An additional phone line does not necessarily translate to increased airtime usage; in fact, the reverse is mostly the case. The mobile industry Average Revenue Per User (ARPU) in 2003 was around $54 per month, but as of December 2008, it had fallen to $13. (NCC, 2012). So how are the major players in the Nigerian telecom industry facing this reality? – Clever Marketing Strategy!

Marketing Management Journal, The Impact of Sales Promotion, Telecommunication Firms in Nigeria, Attention, Interest, Desire and Action (AIDA), Subscriber Identity Module (SIM).