CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
Marketing strategies play a crucial role in the business The
marketing strategy of financial point-of-sale (POS) operators
encompasses the critical elements of product, price, promotion,
and place. However, these operators face a multitude of
challenges that significantly affect their business performance,
with variations observed globally, in Africa, and specifically in
Nigeria.A well-crafted marketing strategy is essential to the
business success of financial Point of Sales (POS) operators like
DotPay Enterprise in Uvwie LGA. It provides these businesses
with a roadmap to attract new customers, build brand credibility,
and foster customer loyalty, all of which are crucial for sustained
growth in a competitive market. Effective marketing contributes
to brand visibility and credibility. By engaging in local advertising
and maintaining a social media presence, DotPay can become a
recognizable brand within the community. This visibility not only
sets DotPay apart from other POS operators but also builds trust,
establishing the enterprise as a reliable choice for financial
transactions(Olena, Yaroslava&Olena, 2021).
Globally, financial point of sales (POS) operators grapple with
intense competition and rapidly changing market dynamics. The
emergence of innovative payment solutions, such as mobile
wallets and digital currencies, compels traditional POS operators
to adapt their product offerings to meet evolving consumer
demands (Achebe, 2018). Additionally, pricing strategies must be
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carefully crafted to remain competitive while ensuring
profitability, particularly as consumers become more price￾sensitive in an economic climate marked by inflation and financial
uncertainty. Promotion strategies also pose challenges, as
operators must leverage digital marketing channels effectively to
reach tech-savvy customers while navigating the complexities of
data privacy regulations. The distribution channels (place) for
POS services require constant evaluation and adaptation to
ensure accessibility and convenience for consumers (Liu et al.,
2023).
In Africa, the challenges faced by financial POS operators are
exacerbated by infrastructural limitations and socioeconomic
disparities. Many regions struggle with inadequate internet
connectivity and inconsistent power supply, which impede the
effective deployment of POS systems and hinder customer trust
in electronic transactions (Adeoti&Osotimehin, 2019).
Furthermore, the limited understanding of digital payment
systems among consumers poses challenges for marketing
strategies. Operators must invest in educational initiatives to
inform potential customers about the benefits and functionalities
of their products, thereby overcoming resistance to adopting new
payment methods. Pricing strategies may also be affected by
local economic conditions, with many consumers exhibiting a
preference for cash transactions due to concerns over transaction
fees and perceived risks.
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In Nigeria, the challenges specific to financial POS operators
include regulatory complexities and a volatile business
environment. The Nigerian market has witnessed a surge in the
number of POS operators; however, many face challenges
related to compliance with regulatory standards that can impact
their pricing and promotional strategies (Achebe, 2018).
Additionally, issues such as fraud and security breaches
undermine consumer confidence, necessitating enhanced
promotional efforts to build trust and demonstrate the reliability
of POS systems (Liu et al., 2023). The marketing strategies
employed by POS operators must not only address these
concerns but also consider the unique cultural and social contexts
of the Nigerian market. This includes understanding the preferred
payment methods and integrating community-based approaches
to enhance product acceptance.
The marketing strategies of financial POS operators—
encompassing product, price, promotion, and place—are
significantly influenced by global, African, and Nigerian
challenges. Addressing these issues is essential for improving
business performance and ensuring long-term sustainability in a
rapidly evolving financial landscape.
1.2 Statement of the Problem
The integration of marketing strategy with Point of Sale (POS)
systems holds substantial promise for enhancing business
performance across various industries.
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However, despite advancements in point of sale technology and
the widespread adoption of digital marketing strategies such as
promotional, product, pricing and place strategies, there remains
a critical gap in empirical research that comprehensively
examines how these integrations directly influence key
performance metrics such as sales growth, customer retention,
and profitability.
Recent studies underscore the theoretical benefits of leveraging
point of sale systems to optimize marketing efforts, citing
enhanced customer engagement and operational efficiencies as
potential outcomes (Adeoti&Osotimehin, 2019). Yet, empirical
evidence validating these claims is limited, leaving businesses
uncertain about the tangible impacts of their investments in point
of sale-integrated marketing strategies (Smith, 2022).
Moreover, challenges persist in effectively implementing and
integrating POS systems with digital marketing platforms. Issues
such as data security concerns, compatibility with existing IT
infrastructures, and the complexities of extracting actionable
insights from POS-generated data hinder the seamless execution
of integrated marketing campaigns (Brown & Johnson, 2023).
Furthermore, the effectiveness of specific marketing strategies—
such as social media marketing, customer loyalty programs,
discounts, and positioning strategies—when integrated with POS
systems remains underexplored. Businesses require empirical
insights into which strategies yield the highest return on
investment (ROI) in terms of enhancing customer acquisition,
retention, and overall profitability (Smith, 2022).
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As such this research seeks to investigate the effect of marketing
strategies and business performance of point of sale (POS).
1.3 Research Questions
1. Does promotional strategy significantly enhance the business
performance of point of sales operators?
2. Does product quality enhance business performance of point
of sales operators?
3. Does pricing strategy increase immediate sales and long-term
business performance of point of sales operators?
4. Does the location selection improved business performance of
point of sales operators?