ABSTRACT
The study set out to explore the effect of promotional mix on marketing performance of manufacturing firms in Nigeria (a case of PZ Cussons Plc). The problem stems from the consistent inability to allocate enough resources to the sales force to carry out their duties effectively and efficiently, which over time results to poor sales volume and profit after tax. The major objective is to analyze the effect of promotional mix on the marketing performance of manufacturing firms in Nigeria. Specifically, the objectives were to determine the relationship that exists between the public relations and profitability of the PZ Cussons Plc, examine the effect of advertising on sales growth and to ascertain the effect of sales promotion on sales volume. Secondary data was used for the study which constituted annual reports of various issues and the data were simple regression and Pearson correlation statistical analysis. The result of the findings showed that on the relationship existing between public relations and sales volume, there is a very weak relationship between the two variables, advertising and sales growth were found to have significant relationship and It was ascertained that there is significant relationship between sales promotion and sales volume. From the correlation coefficient and R2 value of 0.536 indicated that 53.6 of the total variation in the dependent variable was accounted for by the independent variable (Sales Promotion). The study concludes that all round development of the industrial sector is possible with the integration of sound promotional strategies and exploitation of knowledgeable human resources and as well as adopting the right promo tools that suits the target market. The study recommends that sales growth is one of the key preconditions to survive in the market, thus firms should use educative and persuasive promotional strategies that will always attract customer patronage, the company needs to have a sound knowledge of the target market as this will help them to know the promo mix to apply at any point in time in the cause of their operations, the promotional functions should be entrusted into the hands of experienced professionals and expects who can gainfully utilize the limited fund budgeted for promotions, etc. Suggestions of areas for further studies were given.
TABLE OF CONTENTS
Declaration - - - - - - - - - - i
Certification - - - - - - - - - - ii
Dedication - - - - - - - - - - iii
Acknowledgements - - - - - - - - iv
Table of contents - - - - - - - - - v
List of tables - - - - - - - - vii
Abstract - - - - - - - - - viii
CHAPTER 1
1.0 INTRODUCTION - - - - - 1
1.1 Background of the Study - - - - - 1
1.2 Statement of the Problem - - - - 4
1.3 Objectives of the Study - - - - 5
1.4 Research Questions - - - - - 5
1.5 Research Hypotheses - - - - - 6
1.6 Significance of the Study - - - - 6
1.7 Scope of the Study - - - - - 7
CHAPTER 2
2.0 REVIEW OF RELATED LITERATURE - - - - 8
2.1 Conceptual Framework - - - - - - 8
2.1.1 Advertising - - - - - - 8
2.1.2 Sales Promotion - - - - - 12
2.1.3 Personal Selling - - - - - 17
2.1.4 Public Relations/Publicity - - - - - - 21
2.2 Overview of Profitability - - - - - 23
2.2.1 Sales Growth - - - - 24
2.2.2 Market Share - - - - - - 24
2.3 Theoritical Review - - - - 25
2.3.1 Theory of Public Relations - - - - - - 25
2.3.2 Theory of Marketing Communication - - - - - 27
2.3.3 Theory of Sales Promotion - - - - 28
2.3.4 Theory of Advertising - - - - - 30
2.3.5 Theory of Profit Maximization - - - - 31
2.4 Empirical Review - - - - - 32
2.5 Brief History of PZ Cussons Plc - - - 33
2.6 Summary of Literature Review - - - - 34
CHAPTER 3
3.0 RESEARCH METHODOLOGY - - - 35
3.1 Research Design - - - - - 35
3.2 Area of the Study - - - - - - 35
3.3 Sample Size Determination - - - - - 36
3.3 Source of Data - - - - - 36
3.4 Validity of the Research Instrument - - - - 36
3.5 Model Specification - - - - - 37
3.6 Method of Data Analysis - - - - - 37
3.6.1 Decision Rule - - - - - 37
CHAPTER 4
4.0 RESULTS AND DISCUSSIONS - - - 38
4.1 Data Presentation and Analysis - - - 38
4.1.1 Test of Hypothesis one - - - - - 38
4.2 Test of Hypotheses - - - - - 40
4.2.1 Test of Hypothesis one - - - - - 40
4.3 The Relationship between Public Relations and sales volume - 41
CHAPTER 5
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS - 43
5.1 Summary of Findings - - - - 43
5.2 Conclusion - - - - - - 44
5.3 Recommendations - - - - - - 45
5.4 Suggested areas for Further Studies - - - - - 46
REFERENCES
APPENDIX
TABLE OF CONTENTS
Table 4.1: Analysis of the effect of sales promotion on Sales volume 39
Table 4.2: Analysis of the effect of Advertising on Sales Growth 40
Table 4.3: Analysis on the nature of the relationship existing between Public Relations and sales volume of PZ Cussons. - - 42
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
It is not enough for a business to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers (Kotler and Armstrong, 2010). In marketing, this is commonly known as “promotion”. Although promotion is not done only for these factors but for other such as to build brand loyalty, to reminds and reassure customers, to launch a new product and maybe to defend market share by responding to competitors’ campaigns with their own advertising. A business total marketing communications programme is called the “promotional mix” and consists of a blend of advertising, personal selling, sales promotion, public relation stool and direct marketing (Kurtz, 2008). The organization has to convey the message about the product it wants to offer to its consumers. This helps in sustaining a perennial demand for the product and in suitably positioning it among the target audience. The process of communicating the message is called promotion (Chris, 2010). It influences the purchase decision of the consumer. The different channels available to the organization for communicating the message constitute the promotion mix. It includes advertising, sales promotion, and public relations.
The research examines the different elements of the promotional mix and discusses the issues involved there in. It also involves the advantages of using the Internet as a selling medium (Adaramola, 2010). It is very important for every product to be promoted, that is to say it needs to be drawn to the attention of the market place and it’s benefit be identified. The aims of an organization promotional strategy are to bring existing and potential customers to a state of relative awareness of the organization’s product and is not just that, but also to a state of adoption (Adebisi, 2006). The promotional mix (sales promotion, publicity, personal selling, advertising, public relation) have a stage at which it will be most effective. Advertising and publicity are suitable for all stages while the remaining mix can be effective from stage three (Aluko, 2011).
The promotional mix is the use of different advertising and communication channels in a coordinated way to run an effective marketing campaign. These coordinated campaigns are part of an effective integrated marketing communications plan. The four main methods of promotion within the mix are Advertising, Sales Promotion, Personal Selling, and Public Relations. The most important factor in determining the optimal mix is identifying the target market. This can be determined through extensive market research. Once a company knows its target market, it can then research its use of various media outlets in order to come up with the best combination of marketing materials to reach the defined target (Ajose, 2010). For example, if the target market is stay-at-home moms, an organization might find that television advertisements during certain day time television shows are most effective for reaching them. If the target market is a young professional, the marketer might find that using billboards in a down town commercial district and morning drive time radio advertisements are effective for getting the message to this target market (Keller, 2009). The size of the promotional budget will greatly influence the chosen mix as well. Television advertising can be very costly and, therefore, may not be a feasible option for a company with a smaller marketing budget, at least not during prime viewing hours on major networks. Often the amount of money a firm spends on promotional activities will be affected by the product life cycle, general economic conditions, and the competition. The promotional mix may involve a company coordinating its loyalty program with advertising campaigns and a promotional deal.
Adebisi, (2006) defined promotional mix as “any marketing effort whose function is to inform or persuades actual or potential consumers about the merit a product possess for the purpose of inducing a consumer to either start buying or continue to purchases the firm’s product”.
In Nigeria marketing environment most of the manufacturing firm find it very difficult to formulate and adopt a sustainable promotional mix strategy and this has affected most firms profitability and most promising firms have wind up (Aworemi, 2008).
Against this backdrop, it is imperative to analyze the effect of promotional mix on the profitability of the manufacturing sector in the context of PZ cusson Plc, in Nigeria.
1.2 Statement of the Problem
Since promotional mix is one of the element of marketing mix, some of the problems faced are the inability to allocate enough resources to enable the sales force to carry out their duty effectively and efficienty through using promotional mix to convince their customer to patronize their company products.
Hence promotional mix tool are advertising, public relations, sale promotion, direct marketing, personal selling, the selection of the right mix of promotional activity then using it correctly to acheive it marketing objectives have been a problem of PZ cusson plc. Many firms have wind up as a result of their inability to communicate the values they offer to their target market.
Thus communication which is a major means of relating information to the public, the means of communicating to the public effectively and efficiently and the medium of communication has left marketers with the option of choice for means and medium of communication. It is against this backdrop that the need to carry out this study aroused.
1.3 Objectives of the Study
The broad objectives of this study is to analyze the effect of promotional strategies on the performance of manufacturing firms in Nigeria in the context of PZ Cussons Plc. The specifics objectives are to:
i. determine the relationship between public relations and profitability of the PZ Cussons Plc.
ii. examine the effect of advertising on sales growth.
iii. ascertain the effect of sales promotion on sales volume.
1.4 Research Questions
For the purpose of this reasearch study, the following research questions will be formulated for the objectives of the study.
i. What is the relationship that exists between the Public relations and profitability of the PZ cussons Plc.
ii. What is the effect of advertising on sales growth.
iii. What is the effect of sales promotion on sales volume of a manufacturing form.
1.5 Research Hypotheses
Based on the research questions and objectives of the study, the following hypothese will be formulated for this research.
H01: There is no significant relationship between sales promotion and sales volume of a manufacturing firm.
H02: There is no significant relationship between advertising and sales growth of manufacturing company.
1.6 Significance of the Study
The significance of this study lies on the fact that better promotional mix will aid in high patronage of the firm products thereby leading to high profitability of the manufacturing firm. The following agency will benefit and they are:
Manufacturing Firm: These firm will understand the need of having the best promotional mix as one of the element of marketing mix to advertise their product and make more sale to enhance profit.
Lecturers: they will use the knowledge of this work to impact more to their students in different institutions.
Students: They will understand what promotional mix is and the different element to use for different purpose of marketing.
Managers: They will use the knowledge to known the best promotional mix to use in different time of marketing difficulty.
1.7 Scope of the Study
This research work on the effect of promotional strategies on the performance of manufacturing firm in Nigeria is focus on PZ cusson Plc. The geographical scope of the study is Lagos state, since the study area is PZ Cusson Plc.
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