EXPLORING THE RELATIONSHIP BETWEEN SALES PROMOTION AND BRAND IMAGE IN CAMTEL IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the study 

In recent years, sales promotion has experienced both significant growth and change, more so than any other aspect of marketing communication (Penn, 2020). As a result, sales promotion is becoming more significant in the context of corporate communication initiatives. The subject of sales promotions has been the subject of numerous academic papers in the fields of economics, psychology, and marketing over the past three decades. Practitioners and consulting firms have made substantial strides in the application and, in certain instances, the extension of models from the academic community. The increased managerial significance of sales promotions can be attributed to a portion of this growth. Consumer packaged goods (CPG) companies allocate over 50% of their marketing budgets and 13% of their revenues to sales promotions (Boma, 2019).

In this era of social communications and mobile technologies, it is imperative for organisations to develop a comprehensive blend of marketing communications in order to avoid being overwhelmed by the vast amount of information available. This will be examined in relation to the effective interaction of objects and forces, which have an impact on the external management of the company, as well as the marketer's capacity to establish and sustain successful corporations with their target customers. Marketing communications of an organisation are a complex set of measures, techniques, and methods through which information about goods, services, or the company's brand is disseminated to its users. According to Kotler (2018), marketing communications can be defined as the methods employed by companies to directly and indirectly inform, persuade, and remind their customers about the products and brands they offer.

The term sales promotion encompasses a broad spectrum of activities designed to generate a temporary surge in sales. Certain sales promotions target retailers, while others target consumers or wholesalers. However, the ultimate goal in all cases is to offer an additional incentive for purchasing a particular brand or product line (Solomon, 2019). 

Sales promotions are meticulously crafted with distinct objectives and specific target demographics in mind. These include retailers, trade partners, and consumers. Retailer promotions are offered by retailers to consumers in order to enhance sales for the item, category, or store. Trade promotions are extended to members of the channel distribution (referred to as the trade) and are specifically devised to encourage the channel members to provide promotions to consumers (known as retailer promotions) or the customers of the channel member. Consumer promotions are offered directly to consumers by manufacturers and are designed to stimulate the consumer to make a purchase at some point close to the time of the receipt of the consumer promotion (Solomon, 2019).

A brand can be defined as a collection of tangible and intangible characteristics that are strategically developed to generate awareness and establish an identity, ultimately contributing to the reputation of a product, service, individual, location, or entity. The holistic perspective of branding as a long term strategy encompasses a broad range of activities, spanning from product innovation to marketing communications (Smith 2020).

Brand image refers to the perception that consumers hold in their minds regarding the overall personality of a brand. It is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers' direct experience. Brand image is an essential element in marketing research. It is defined as the perceptions about a brand as reflected by the brand associations held in the consumer's memory, as stated by Keller (2018). Every business must possess qualified promotional services in order to establish a positive brand image. A business must not only sell an offering to a market, but it must also promote it. Promotion is indeed a fundamental aspect of every business organisation. A positive brand image is established by marketing programmes that establish strong, favourable, and distinctive associations with the brand in memory (Keller, 2018).

Sales promotions have become a vital tool for marketers and their importance has been increasing significantly over the years hence the need for this study.

 Statement of the problem

Sales promotion refers to a range of temporary incentives that are intended to encourage faster and/or larger purchases of specific products or services. These can encompass reductions, vouchers, competitions, complimentary samples, and other analogous strategies targeted at augmenting sales quantities in the immediate period. Although these strategies are successful in generating quick consumer reactions, their long-term impact on brand perception is uncertain. Brand image, which refers to how people perceive a brand, is essential for maintaining customer loyalty and attaining sustained corporate success. A robust brand image generally communicates attributes such as superior quality, unwavering dependability, and exceptional value, which are crucial for gaining a competitive edge (Nguevi et al., 2022).

The relationship between sales promotion and brand image has received significant attention in marketing literature, but the specific context of Cameroon has not been thoroughly investigated. The significance of this link is paramount, as sales promotions are pervasive in the marketing tactics employed by organisations operating in Cameroon, spanning from international corporations to local businesses. Nevertheless, the precise influence of these promotional endeavours on brand perception remains ambiguous, resulting in a significant deficiency in both scholarly investigations and real-world marketing approaches in the area.

Furthermore, the growing digitization in Cameroon poses challenges and opportunities in effectively managing the connection between sales promotion and brand image. Social media and other digital platforms play a vital role in influencing customer views and behaviours. Businesses can utilise these channels to create more focused and captivating advertising efforts that better connect with their brand principles. Nevertheless, the rapid pace of digital marketing implies that any adverse consequences resulting from inadequately handled promotions can swiftly propagate, potentially causing damage to the brand's reputation (Njoh, 2020).

1.3 Objectives of the Study 

The primary objective of this study is to explore the relationship between sales promotion and brand image in Camtel in Cameroon. Specifically the study seeks:

To determine whether there is a relationship between sales promotion and brand image in Camtel in Cameroon.

To identify the types of sales promotional tools used for positive brand image building in Camtel in Cameroon.

To examine the effects of sales promotion on brand image in Camtel in Cameroon.

To analyze the challenges faced by Camtel in Cameroon in the use of sales promotion for the promotion of brand image.

1.4 Research Questions

The following research questions will be answered in this study:

Is there a relationship between sales promotion and brand image in Camtel in Cameroon?

What are the types of sales promotional tools used for positive brand image building in Camtel in Cameroon?

What are the effects of sales promotion on brand image in Camtel in Cameroon?

What are the challenges faced by Camtel in Cameroon in the use of sales promotion for the promotion of brand image?

1.5 Research Hypothesis

The following null hypothesis will validate this study:

Ho1: There is no relationship between sales promotion and brand image in Camtel in Cameroon.

1.6 Significance of the study

The study aimed to address a significant gap in the existing literature and can provide valuable insights for future research endeavours. From a practical standpoint, this study can assist organisations in implementing promotional strategies that foster a favourable perception of their company, product, and services.

Furthermore, it will assist the company in identifying any deficiencies and potential remedies in its sales promotional services, as well as their practical impact on brand image. Furthermore, the study will assist businesses in Cameroon in determining which promotional tactics have been preferred by its clients. Additionally, it will assist the bank in acquiring a more comprehensive comprehension of its consumers' disposition towards sales marketing endeavours. To enhance their sales promotion efforts, promoters and marketers can optimise their strategies by gaining a comprehensive grasp of customers' attitudes towards promotions.

1.7 Scope of the study

The study aims to explore the relationship between sales promotion and brand image in Camtel in Cameroon. Empirically, this study will assess whether there is a relationship between sales promotion and brand image in Cameroon, the types of sales promotional tools used for positive brand image building in Cameroon, the effects of sales promotion on brand image in Cameroon and the challenges faced by companies in Cameroon in the use of sales promotion for the promotion of brand image.

This study will be carried out in Cameroon.

1.8 Limitation of the study

The researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing that the relationship between sales promotion and brand image in Camtel in Cameroon discourse is vast thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size covering only residents of Cameroon. Thus findings of this study cannot be used for generalization for other regions within Cameroon. Additionally, the researcher will simultaneously engage in this study with other academic work will impede maximum devotion to the research. Howbeit, despite the constraint encountered during the research, all factors were downplayed in other to give the best and make the research successful.

1.9 Definition of terms

Sales promotion: Sales promotion is a term used to describe a variety of marketing activities and incentives that are specifically created to generate immediate sales or motivate individuals to buy a product or service. These activities are generally of a short-term nature and have the objective of enhancing sales, attracting new customers, or fostering the loyalty of current customers.

Brand: A brand is a distinctive name, term, design, symbol, or any other characteristic that distinguishes the goods or services of one seller from those of other sellers. The identity and reputation of a product, service, or company in the marketplace are represented by its brand. This brand encompasses the values, qualities, and perceptions that consumers associate with it. A brand seeks to establish a lasting impression and cultivate customer loyalty.

Brand image: Brand image is the perception of a brand in the minds of consumers. It encompasses the associations and impressions that people have about the brand, including its reputation, values, quality, and overall identity. Brand image is shaped by a variety of factors, including marketing, advertising, customer experiences, word of mouth, and media representation. It plays a crucial role in influencing consumer behavior and loyalty.