ABSTRACT
Sales promotion is a promotional mix element or incentive used by an organization in communicating to the target audience, it is used to communicate both factual and persuasive message to consumers and perspective buyers with a view to increase their market performance (through sales). It is one of the controllable elements which organization could easily manipulate in other to achieve its end and objective. However it has not been so in the real life situation. This study however has partly responded to this problem by concentrating on the single element sales promotion. The purpose of the study is to determine if sales promotion could be use to increase market performance of the industry, and also enlighten on the importance of sales promotion to know whether consumers are influenced or stimulated by sales promotion practices. The research methodology employed in this study was the survey method and data collection was done through the use of questionnaire. The research was able to find out that sales promotion has significant impact on market performance and can be used to stimulate demands by the prospect or consumers. Recommendations were also made of which, if followed and implemented will bring tremendous benefit to Emily Millionaire Cosmetics industries and other organizations.
TABLE OF CONTENT
Declaration - - - - - - - - - - - i
Certification - - - - - - - - - - ii
Dedication - - - - - - - - - - iii
Acknowledgement - - - - - - - - - iv
Table of Content - - - - - - - - - v
List of Tables - - - - - - - - - - viii
Abstract - - - - - - - - - - - x
CHAPTER ONE
Introduction
1.1 Background of the Study - - - - - - - 1
1.2 Statement of Problem: - - - - - - - - 4
1.3 Objective of the Study - - - - - - - - 5
1.4 Research Question: - - - - - - - - 6
1.5 Significance of the Study - - - - - - - 6
1.6 Statement of Hypotheses - - - - - - - 7
1.7 Scope of the Study: - - - - - - - - 7
1.8 Limitations of the Study: - - - - - - - 8
1.9 Definition of Terms - - - - - - - - 9
Chapter Two
2.0 Review of Related Literature - - - - - - - 11
2.1 Industrial Orientation of Promotions towards the Market Place - 14
2.2 Sales Promotion Techniques: - - - - - - 16
2.3 Types of Sales Promotion - - - - - - - 17
2.4 Relationship between Sales Promotion and Market Performance:-18
2.5 Sale Promotion in the Marketing Mix - - - - - 23
2.6 Effectiveness of Sales Promotion in Market Performance - - 24
2.7 Management of Sales Promotion: - - - - - - 25
2.8 Sales Promotion in Nigeria - - - - - - - 25
2.9 Consumer Attitude to Sales Promotion - - - - - 27
CHAPTER THREE
Research Methodology
3.1 Research Design - - - - - - - - - 29
3.2 Study Area - - - - - - - - - 29
3.3 Study Population - - - - - - - - - 30
3.4 Sampling Plan - - - - - - - - - 30
3.5 Sample Size Determination - - - - - - - 30
3.6 Source of Data - - - - - - - - - 33
3.7 Collection of Data - - - - - - - - 34
3.8 Data Presentation and Analysis - - - - - - 35
3.9 Model Specifications - - - - - - - - 35
3.9.1 The Simple Linear Regression Model - - - - - 35
3.9.2 Model Specification for Chi-Square - - - - - 36
3.10 validity and Reliability - - - - - - - - 37
CHAPTER FOUR
Data Presentation Analysis and Interpretation
4.1 Questionnaire Distributions - - - - - - - 38
4.2 Hypothesis Testing - - - - - - - - 50
CHAPTER FIVE
5.1 summary of finding: - - - - - - - - 56
5.2 Conclusion - - - - - - - - - - 58
5.3 Recommendation - - - - - - - - 60
Reference
Appendix
LIST OF TABLES
4.1 Questionnaire Distributions - - - - - - 38
4.1.1 Distribution on Education Background of the staff respondents - 39
4.1.2 Distribution on work experience - - - - - - 40
4.1.3 Sex distribution of consumers’ respondents - - - - 40
4.1.4 Age distribution of consumers’ respondents. - - - - 41
4.1.5 Distribution on the effect of sales promotion - - - - 42
4.1.6 Can lack of knowledge of sales promotion practices lead to low performance - - - - - - - - - 42
4.1.7 Does ineffective use of sales promotion causes sales drop in your industry - - - - - - - - - - 43
4.1.8 Does effective sales promotion play any part in performance of cosmetics industry - - - - - - - - 43
4.1.9Distribution on the Sales Performance of sales people - - 44
4.1.10 Distribution on customer attitude - - - - - - 45
4.1.11 Distribution on performance increase - - - - - 45
4.1.12 How effective is your distribution strategy adopted during sales promotion activities - - - - - - - - 46
4.1.13. Can lack of good distribution service during sales promotion lead to low performance sales. - - - - - - - 46
4.1.14: What kind of promotional activities influences you to buy the product? - - - - - - - - - - 47
4.1.15: Sales and customers Motivation - - - - - - 48
4.1.16 Sales promotion customers’ motivation and performance extent.-48
4.1.17 Do you go for re-purchase after sales promotion period? - - 49
4.3 The Simple Linear Regression Model - - - - - 51
4.4 Chi-square analysis of sales promotion on customers’ motivation-53
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Marketing performance is a phrase in marketing activities where by management compared the selling performance of one territory against another or the performance of the previous years against expected year performance.
Marketing performance can be defined as the economic result that flows from industries as an aggregate of the firms; it refers to the degree to which a particular industry meets it rational objective for production and allocation efficiency, technical progress and promotion of equity in the income distribution.
The purpose of this performance analysis is to improve generation so that the sales persons, territory or other factors showing poor performance in sales can be identified and singed out, detailed analysis, corrective actions and sometime outstanding performance can be analyze to see if the success can be identified and correction made where there are shortcomings or deficiencies. For a good market performance to be known or achieve there are some basis requirement tools and they are very vital in knowing the performance of an industry in the market. These tools are
i. Knowing the market demand of each and every product of the industries.
ii. The market potentials of the products.
iii. The sales budget
iv. The sales report.
As defined by (Kotler ,2002) the market demand for a product is the total volume that would be bought by defined customers group in a defined market environment, under a defined program, looking at the definition above the keyword are customers and market, when these two elements are carefully put or used together, then the strength of the market can be assessed, the organization will now know if the market performance is increasing or decreasing. The sales budget is a conservation estimate of the expected volume of sales used primarily for marketing current purchasing production and cash discount.
The market potential of a product visualizes the level of market demand for a very high level of industrial market effect where further increasing marketing effort would affects in stimulating further demand. It is an estimate of the maximum possible sales of a commodity, group of commodities or a service for an entire industry in the marketing during a stated period.
The sales force report along with other report and observation supply the new material for evaluating number of sales(which is their performance) evaluation of the market performance with aforementioned tools (that is market demand, market potentials, sales budget lead to at least two benefit and they are:
i. management is activated to gathered well-rounded information about each sales territory
ii. Sales representative knowing full well that they will explain and give account of their performance or failure to achieve the target set by the sales manager will be dedicated to every bit of action the sales manger takes.
Having highlighted all these potentials of market performance, we can x- ray sales promotion to know how it stimulates sales in a product or products. Some of these instruments include distribution of sample product, in- stores, trade fair shows and preparation of printed materials, so therefore the marketing performance is a totality of the organization goodness, a sum of such demand as production cost performance, turnover quality of output, profitability efficiency and likes of other.
The sales promotion can promote organization performance through increase in profitability from higher sales. Okoli (2011;236) explain that the essence of setting up a business organization is to make profit. It has been established in literatures’ that only consumers with repeat purchase that is connected to consumers commitment of a brand, therefore business operator needs to develop marketing programmers’, that will not only reinforce commitment of consumers but also encourage repeat purchase, this sale promotion becomes an important and integral part of the marketing strategy for reaching the target market and it is the responsibility of marketing managers to combine element of sales promotion strategies which is promotional mix into coordinated plans, sales promotion effort are directed at final consumers and designed to motivate, persuade and remind them of the goods and service that are offered.
1.2 Statement of Problem:
Among all the strategies being adopted by an organization to achieve its goals and objectives in increasing its market performance, there are still some serious problems confronting the industries as they do not operate in a vacuum, they operate in an environment which has its main effect on customers’ patronage of their product.
Therefore we should note that the effect of depression in economic activities on most cosmetic industries is one of this factors leading to sales drop in industries this is because there are no sales in some cases for a long time, which lead to low performance or closure of such industry, or maybe the consumers are either unaware of the organization product offering or have developed a stronger habitual behaviour on the use of a particular product or brand been offered to them thereby leading to death or closure of substitute in the market place; then the significance of sales promotion becomes unavoidable.
1.3 Objective of the Study:
In consideration of the problem identified, the general objective is to find out how sales promotion can be use to determine the market performance in cosmetics industry (Emily millionaire cosmetics industry).
While the specific objective are:
i. To determine if market performance is dependent on sales promotion.
ii. To determine the significance of sales promotion in stimulating marketing performance of an industries.
Iii. To examine the effectiveness of sales promotion on marketing activities.
1.4 Research Question:
The aspect of the research work involves question which will serve as a guide to solve the research problem?
i Is market performance dependent on sales promotion?
ii Does sales promotion really act as a tool in motivating customer?
iii How often is sales promotion used as a marketing tool in your industry?
1.5 Significance of the Study:
The findings will address the justification from study in the form of benefit to the followings.
Emily millionaire cosmetics will benefit from the study in the sense that it exposes some deficiency in its product performance thereby enabling them to reposition itself among its competitors in the market.
Business organizations who may also lay their hands on the work will know that sales promotion can help beat the drum by informing persuading and influencing customers purchase decision which at the end will lead to an increasing in their market performance of market share.
Above all, this study will not only be of benefit to the researcher or above mentioned but also the reader as adequate knowledge and understanding will be gained from the information contained in the study.
1.6 Statement of Hypotheses:
Ho: market performance is not dependent on sales promotion in cosmetics industry.
Ho: sales promotion is not significant in motivating customers purchase in cosmetics industry.
1.7 Scope of the Study:
The research work is carried out at Aba, in Abia state south eastern Nigeria. It has a population of about 931900. It is a large industrial and commercial center for business, they are noted for their handicraft and the work considered the listed metropolis in Aba due to the availability of consumers and nearest to the industry. Namely Ngwa road, obohia, Okigwe road, Ariria market, Azikiwe road, and Asa road.
1.8 Limitations of the Study:
The research work is limited to the sales department staff and distributors as well as the consumers of Emily millionaire cosmetics industry though many problems were encountered in carrying out this work, but I fulfill every obligation in making sure that this project work is completed, I still tried to make things work out appropriately.
Thus these were the limitation:
i Finance: finance is the first problem I encountered which really restricted my research to certain level such as the cost travelling from Umuahia to Aba whenever information is needed and also the cost of browsing the internet for information.
ii Time: this was also an inhibitive factor to this work in the sense that there was not enough time to visit a large number of consumers, which I was supposed to have visited for personal interview and questionnaire administration.
iii Risk: this is another factor ensuring that all questionnaire administration to the customers were not left out during conservation of information which contributed greatly in hindering the carrying out of this project work, the risk as well as travelling from Umuahia to Aba which is the area of the study that may not be left out.
1.9 Definition of Terms:
Incentives: according to kotler(2002) is anything that encourage stimulate and motivate customers buying behavour.
Promotional Mix: kotler (2002) is a specific combination of promotional method (advertising direct market personal selling and sales promotion) use for one products or family of products.
Sales force: it is a type sales people who take order from top management in performing other support and promotint producers products.
Persuade: (Longman) to make someone decide to do something especially by giving them reasons why they should do so.
Trade shows: blythe(2006) says trade shows are activities or exhibitions design so that organizations can showcase and demonstrate their product to their prospects.
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