Sales Promotion as an Effective Tool in Achieving Organizational Objective.
CHAPTER ONE
OBJECTIVES OF THE STUDY
The objective of this study can be stated as follows:
- To examine the effect of sales promotion as a tool for achieving organizational objectives.
- To examine how sales promotion enhance organizational profitability.
- To find out the factors that promotes or impairs the effectiveness of sales promotion.
- Can corporate performance be enhanced by sales promotion?
CHAPTER TWO
LITERATURE REVIEW
CONCEPTUAL FRAMEWORK
This chapter provides a review of the existing literatures on the effect of sales promotion on consumer buying behavior. The main sections included therein are: theoretical framework, conceptual framework, empirical literature relevant to the study, summary and research gaps.
Independent Variable Dependent Variable
Source: Author (2016)
Fig 1.1: Relationship between variables
Sales Promotion Tools
Promotion according to Doyle and Saunders (1985) is most important in changing the timing rather than the level of purchasing because customers tend to buy earlier. Promotion is a marketing effort by any organization in trying to communicate to its customers. According to Kotler (1994), a good promotional strategy should encompass sales promotion, public relations, advertising and personal selling in order to communicate with their present and potential consumers. Promotion is responsible for moving the demand curve upward and to the right by utilizing some or all of the elements of the promotional mix.
Again, Pride and Ferrel (1989) also grouped sales promotion methodsinto two. Consumer sales promotional methods are directed towards consumers and they include coupons, contests, bonuses, vacations, shopping, gifts, free products and services, and free samples. Trade sales promotion methods focus on wholesalers, retailers and sales person. This includes sales contests, free merchandise, demonstrations, point-of purchase and displays (Pride and Ferrel, 1989). The purpose of sales promotion in the marketing mix in marketing events is to have a direct impact on the behavior of the firm’s consumers. Several authors have identified different categories of consumer- oriented sales promotion. According to the International Chamber of Commerce, International Code of sales promotion practices, consumer –oriented sales promotion encompasses the following tools:
Free samples: These are distributed to attract consumers to try out a new product and thereby create new customers (Kotler, 2003). Some businessmen distribute samples among selected persons in order to popularize the product common examples – shampoo, washing powder etc. Sampling which by definition includes any method used to deliver an actual or trial size product to consumers. Sampling is generally considered the most effective way of generating trial, though it is the most expensive
Bonus offer or points: This is a reward given to the existing customers (Smith and Schultz, 2005). This tool will help increase the sales of the product among the existing customers itself. A toothbrush with 500 grams of toothpaste might be some examples of this tool. A certain retail shops will have a scheme which will require the customer to be a member of the shop and to acquire membership card for the same. And every time the customer makes a purchase bonus points are added to the card and at the end of the year gifts are given for the points earned.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
Research methodology shall be adopted in this project, this is because the conceptual review of sales promotion as an effective tools in achieving organizational objectives, which is the main concept in the project cannot be qualified nor captured by a single research method.
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION OF RESULT
INTRODUCTION
This chapter presents the description of the result of data collection and discussion of findings. According to the questionnaire administered the table below gives a clear picture of the view of respondents.
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
INTRODUCTION
This chapter gleans on the outcome of the analysis from the statistics gathered in chapter four. The researcher made summary, conclusions and recommendations from the findings of the research study.
SUMMARY
Below are the findings of the research as gleaned from the analyses; Sales promotion practice is a very prominent feature in the every industry and consumers are very much aware of the various sales promotional strategies practiced by these industries. The sales promotion practice in the industry draw these consumers to the product and make them do impulse purchase. This confirms the assertion by Ngolanya, et al, (2006) that sales promotion engenders impulse buying.
Factors such as appearance of sales persons, displays of products, free gifts accompanied with the purchase of products, free samples offered for customer trial and short term reduction of prices on certain occasion could enhance or impair the effectiveness of sales promotion. The findings confirmed that, amidst the factors that could enhance the effectiveness of sales promotion practice, the factor that has the greatest effect was the free samples offered. This supports the study done by Adcock (2001), who asserts that when a purchase decision is made, the actual purchase can be affected by unanticipated situational factors. Some of these situational factors according to them could be directly associated with the purchase, for example the outlet where the purchase is to be made, the quality to be bought, and payment procedure among others. The employers also had similar views that these free samples offered enhance the effectiveness of sales promotion.
The results also indicate that majority of respondents found unilever to have good customer relationship due to its sales promotion strategies.
Above fifty-five percent (55%) of the respondents are satisfied with the promotion and distribution decisions as a factor which enhances effective sales promotion. This is followed by evaluation of overall sales programs which greatly influences consumer buying behavior.
CONCLUSION
In conclusion, unilever employees are generally satisfied with the company’s sales promotion strategies which in turn influences consumer buying behavior as this research sought to establish. However this satisfaction seems to have an effect on the number of clients who are willing to repurchase unilever products. In effect, the more sales promotion strategies are customer friendly, the more it is capable of influencing those customers buying behavior.
The study revealed that sales promotion has an influence in the purchase decision of consumers. It was realized that the consumer may not go through the entire decision making process anytime they want to purchase a service or product. This may be so because the evoked sets which present the consumer with established alternatives may inform the consumer’s judgments in deciding which service or product to buy. This may eventually prevent the consumer from going through all the stages of decision making because of experience and available information to him. Sales promotion therefore is an inevitable promotional tool for firms if they really want to maintain or increase their market share.
RECOMMENDATIONS
Recommendations have been made about measures that could be taken to improve the practice of sales promotion at unilever and beyond in order to influence the consumer buying behaviour effectively. The following may be noted:
The firm must intensify the use of sales promotion as respondents have shown great interest and are highly influenced by sales promotion activities.
Appearance of sales person should be greatly enhanced. Therefore it may be used in conjunction with other promotional tools such as coupons and free talk time. Greater emphasis may be placed on attachment services to gain maximum advantage.
- Sales promotion has short term effect, as a result services providers need to do a continuous follow up to establish long term relationship with new customers acquired during sales promotion period.
- Firms should engage in continuous research to correctly approximate consumer expectations and plan to meet them to reduce consumer complaints.
- Organization should enhance the situational factors such as display of items, appearance of sales persons, location of showrooms as well as payment processes. These factors and other situational factors will enhance the effectiveness of their sales promotions to influence their consumers.
- Organization should periodically evaluate all its sales promotion programs so as to remain a pace cater and constantly meet with. In this contemporary world no strategy is static and to maintain the dynamism, the existing sales programs needs to evaluated over time.
REFERENCES
- Abdallat, M. and El-Emam, M. (2001): Consumer Behaviour Models in Tourism, King Saud. University, Saudi Arabia
- Adcock, D., Halborg, A. and Ross, G. (2001): Marketing Principles and Practice. 4th Pearsons Education, Harlow, England.
- Aderemi, S.A. (2003): Marketing Principles and Practice. Mushin: Concept Publication Limited.
- Alvarez, B.A and Casielles, R.V. (2005): Consumer Evaluation of sales Promotion: The Effect on Brand choice. Eur. J. Mark., Vol. 39, pp 54-70.
- Belch G.E and Belch, M.A (1998): Advertising and Promotion: An Integrated Marketing
- Communication Perspective.4th Edition.Irwin/ McGraw- Hill, Boston, Mass.
- Berkowitz, K., Harley, R., Kerin, R.A. and Rudelius, W. (1994): Marketing, 4th Ed Irwin, Boston.
- Cravens, D.W. (2000): Strategic Marketing, 6th Edition, McGraw- Hill, Irwin.
- Davidson, W.R., Sweeney, D.J. and Stampfi, R.W. (1984): Retailing Management. 5th Edition, John Wiley and Sons, New York
- Doyle, P. and Saunders, J. (1985): The Lead Effect of Marketing Decisions. Journal of Marketing Research, Vol. 22, pp54-56.
