EFFECT OF SALES PROMOTION ON ORGANIZATIONAL SALES PERFORMANCE (STUDY OF PZ CUSSONS NIGERIA LIMITED)

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Product Code: 00008263

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ABSTRACT

The study investigated on the effect of sales promotional on organizational sales performance. The objective of the study are to ascertain the effect of customer sales promotion on organizational sales performance and to examine the effect of trade sales promotion on organizational sales performance. To achieve the objectives of the study, correlational research design was adopted. The researcher adopted primary data in getting the required information. In testing the hypothesis correlation coefficient was used. The findings revealed that there is significant relationship between customer sales promotion and organizational sales performance. The findings also revealed that that there is significant relationship between trade sales promotion and organizational sales performance. The researcher recommends that Companies should ensure the formulation of strategic promotional policies structured to increase and improve sales. It is recommends that while formulating strategic promotional policies, concern should be drawn from the promotional strategies of their competitors in the industry.





TABLE OF CONTENTS


Title page                                                                                                              i

Declaration                                                                                                        ii

Certification                                                                                                      iii

Dedication                                                                                                            iv

Acknowledgement                                                                                          v

Table of Contents                                                                                           vi

List of Tables                                                                                                      x

Abstract                                                                                                               xi


CHAPTERONE

INTRODUCTION                                                                                                    1

1.1 Background to the Study                                                                                      1

1.2 Statement of the Problem                                                                                     2

1.3 Objectives of the Study                                                                                        3

1.4 Research Questions                                                                                              4

1.5 Research Hypothesis                                                                                           4

1.6 Scope and Limitations of the Study                                                                     5

1.7 Significance of the Study                                                                                     5

1.8 Limitation of the Study                                                                                         5


CHAPTER TWO

 REVIEW OF RELATED LITERATURE                                                                 6

2.1  Conceptual Framework                                                                                       6

2. 2  History of Modern Sales Promotion                                                                   9

2.3   The Role of Sales Promotion in an Organisational                                            10

2.4   Objectives of Sales Promotion                                                                           11

2.5   Characteristics of Sales Promotion                                                                     13

2.6  Measuring the effectiveness of sales promotion                                                 15

2.7   Sales Promotion                                                                                                  15

2.7.1    Consumer Promotion                                                                                      17

2.7.2    Trade Promotion                                                                                            19

2.7.3      Sales Force Promotion                                                                                 20

2.7.4.     Advantages of Sales Promotion                                                                   21

2.8     Problems of Sales Promotion                                                                           22

2.9       Sales Promotion Promotion Strategy and Management                                26


CHAPTER THREE

RESEARCH METHODOLOGY                                                                                27

3.1 Research Design                                                                                                   27

3.2Area of the Study                                                                                                   27

3.3 Sources of data/method of collection                                                                   28

3.4Population of the Study                                                                                         28

3.5Determination of sampling procedure and sample size                                         28

3.6Validity of instrument                                                                                           29

3.7Reliability of the instrument                                                                                  30

3.8Method of Data Analysis                                                                                       30

3.9 Model Specification                                                                                             30


CHAPTERFOUR

DATAPRESENTATION,ANALYSISANDDISCUSSIONOFFINDINGS             44

4.1DataPresentation                                                                                                   44

4.2DataAnalysis                                                                                                         49

4.3TestofHypothesis                                                                                                   51

4.4DiscussionofFindings                                                                                            54


CHAPTERFIVE

SUMMARYOFFINDINGS,CONCLUSIONANDRECOMMENDATIONS            57

5.1SummaryofFindings                                                                                              57

5.2Conclusion                                                                                                             58

5.3Recommendations                                                                                                 59

5.4SuggestionsforFurtherStudies                                                                               60

REFERENCES                                                                                                                                  





LIST OF TABLES


Table4.1Distributionofquestionnairesandresponserate                                              44

Table4.2Distributionofrespondentaccordingtogender                                               45

Table4.3Distributionofrespondentaccordingtoage                                                     45

Table4.4Distributionofrespondentaccordingtomaritalstatus                                      45

Table4.5Distributionofaccordingtoacademicqualification                                        46

Table4.6Extenttowhichfinancialliteracyisadoptedbysmallscaleenterprises                        46

Table4.7Extenttowhichaccountingrecordsenhancethe

Profitability of small scale enterprises                                                                       47

Table4.8Problemsthathinderutilizationofaccountingrecords


 


 

 


 

CHAPTER ONE

INTRODUCTION


            1.1           Background to the Study

Sales promotion is one of the elements of the promotional mix which is a result of the element of marketing mix which include: price, promotion, Product, Place. Promotion is defined as the function of marketing which seek to achieve a given objectives by the adding of instrinsic tangible value to a product or services. Some manufactures of goods and services who do not promote their product face the problem of their product and service not being known to the public as a result of this, consumers may not be able or cannot easily choose any product or services in the market that they are not familiar with. Marketing is defined by Jeromy E., (1996:36) as task of creating, promoting, and delivering goods and services to consumers and businesses. Marketers are involved in marketing many types of entities: goods, service, experience, event, places, properties, information and ideas. Marketing management is defined by Kotler P., (2000:50) as the process of placing and executing the conception, pricing, promotion and distribution of ideas, goods and service to create exchange that satisfy individual and organizational goals. Sales promotion stimulates consumer purchase and aim dealer effectiveness. It is believed that the survival and growth of a business organization depend on the rate at which their products are being demanded and purchased. Companies keep offering more valuable prices in an effort to draw customers from the competitions. A business organization should be to satisfy its customers if it must remain in business in terms of protecting customers safety, producing quality and attractive goods and services and making them available where they are needed at the right place, time and price because customers are to patronize a product or service only when they are aware of its existence, quality, price and availability which can be achieved through element of promotional mix as stated by Kotler (2004) which includes; Adverting, Sales promotion, Publicity, Public relation, Personal selling. This study therefore will provide the basic of sales promotion for manufactured product as it is planned and used by Paterson Zochonis Cusson Nigeria Plc.


1.2       Statement of the Problem

Pz cusson plc was founded as a trading post, called West African Merchants, in Sierra Leone by two partners, George Paterson, originally from England, and George Zochonis, from Greece. Paterson and Zochonis started out by shipping palm oil and other produce, such as promised kernels, cocoa, groundnuts, and seed cottons, as well as animal hides and skins, to the United Kingdom, and bringing back goods from England, such as cloth from Manchester. The business proved strong, and in 1884 Paterson and Zochonis incorporated the company as Paterson Zochonis (PZ). PZ gradually expanded its range of goods, establishing a degree of expertise in what was considered a did faculty trading market. This expertise enabled the company to begin expanding into other African markets and, must important, into Nigeria. PZ set up its Nigerian subsidiary in Lagos in 1899. Like its Sierra Leone brand, the Nigerian subsidiary at first operated as a trading merchant. PZ Cussons Nigeria is principally engaged in manufacture, distribution and sale of  a wide range of consumer products and home appliances, which are leading brand name across the country in detergents, soaps, Pharmaceuticals, cosmetics, confectioners, refrigerators, freezers and air conditioners. Problem associated with sales promotion of PZ Cussons Nigeria, is that it lacks capacity to deepening brand loyalty of customers, the impact of sales promotion, unlike other integrated marketing communication tools, work often on a short-term basis for trades. However, the strategies may have no lasting impact on the sales force.

 

1.3       Objectives of the Study

The general objective of this study is to exermine the effect of sales promotion on the sale performance of the Pz Cusson Nigeria. However, the specific objectives include:

(i) ascertain the effect of customer sales promotion on organisational sales performance.

(ii) examine the effect of trade sales promotion on organisational sales performance.

(iii) measure the effect of sales force sales promotion on organisational sales performance.


1.4       Research Questions

The research questions for this study include:

(i) to what extent does customer sales promotion affects organisational sales performance?

(ii) what are the effects of trade sales promotion on organisational sales performance?

(iii) to measure the extent to which sales force sales promotion affects organisational sales performance?


1.5       Research Hypothesis

The following hypotheses were tested in the cause of this study :

Ho1: there is no significant relationship between customer sales promotion and organisational sales performance.

Ho2: there is no significant relationship between trade sales promotion and organisational sales performance

Ho3:   there is no significant relationship between sales force promotion and organisational sales performance.

 

1.6       Significance of the Study

This study will be quite Significant in terms of those it will benefit and how it will benefit them. They include:

i. Consumers: They are the general consuming public who will benefit  through knowing their rights and available sales promotion incentives such as free samples, price off and special sales, premium, competitions.

ii. Trade: This refers to intermediarers who will benefit from the study through buying allowance, free goods, co-operative, and sales contents.

iii. Sales force: They are the sales people of a company who will benefit from this study through commission, increase in sales and allowance.


1.7       Scope of the Study

The study is carried out on Pz Cusson Nigeia Plc for data generation to determine the effect of sale promotion on her sales performance.


1.8       Limitation of the Study

The following factors affect the research:

i. FINANCE: the cost of money needed is too much, most especially in the data collection exercise and visiting respondents for interviews.

ii. TIME: the time frame given for the completion of this project work is short and hard to be combined with class work and examination.

 

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