ABSTRACT
The study investigated on the Effect of Promotional Strategy on the Consumer Purchasing Decision Making Process in the Soft Drinks Industry. The objectives of the study are to examine the effect of promotional strategy on consumer buying behavior, to examine the effects of promotional strategy on consumer loyalty and to the impact of promotional strategy on product performance.To achieve the objectives of the study, correlational research design was adopted. A total of 70 questionnaires were administered to the respondents of which 45 were completely filled and returned which represent 64% of the administered questionnaire. The researcher adopted both primary and secondary data in getting the required information. In testing the hypothesis Chi-square Test was used. The findings revealed that there is a significant relationship between promotional strategy and consumer buying behavior, it also revealed that loyalty significantly depend on the influence of promotional strategy. The researcher recommends that companies should embark on promotional strategy in order to communicate effectively to their customers and attract more sales. The researcher also recommends that for an organization to achieve its set of objectives, it must endeavor to maintain customer’s satisfaction and relationship with management.
TABLE OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of contents vi
List of tables ix
Abstract x
CHAPTER ONE
INTRODUCTION
1.1 Background of the study 1
1.2 Statement of problem4
1.3 Objectives of the study 5
1.4 Research Question 5
1.5 Research Hypothesis5
1.6 Significance of the study 6
1.7Definition of Technical Terms 6
1.8Limitation of the study 7
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual framework 9
2.2 Review of Related Literature 11
2.2.1 Effect of promotional Strategy on Consumer Behaviour 11
2.2.2 Effects of Promotional Strategy on Consumer Loyalty 11
2.2.3 How Promotion Affects Product Performance 12
2.2.4 Historical Background of the 7up Nigeria Bottling Plc 13
2.2.5 Marketing Communication Mix 14
2.2.6 Marketing Communication and Brand Equity 15
2.2.7 Promotion as a Means of Communication 17
2.2.8 Marketing Communication Planning 21
2.3 Integrated Marketing Communication 23
2.4 Promotional Strategies 25
2.5 Effects of Promotional Strategy on Sales 26
2.5.1 Primary Demand Strategies 27
2.5.2 Selective Demand Strategies 27
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 28
3.2 Area of the study28
3.3 Population of the study 28
3.4 Procedure for Sample size29
3.5Data Collection29
3.6 Validity of instrument used30
3.7Methods of Data Analysis 30
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Data Presentation 31
4.2 Test of Hypothesis36
4.3 Discussion of findings38
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings40
5.2 Conclusion 40
5.3 Recommendations41
References
Appendix
LIST OF TABLES
Table 4.1: Distribution of questionnaire and response rate 31
Table 4.2: Distribution of respondents according to age 31
Table 4.3: Distribution of respondents according to educational
Qualification 32
Table 4.4: Distribution of respondents according to years of services 32
Table 4.5: Distribution of respondents according to Religion 33
Table 4.6: Distribution on Promotional strategy affects consumer
buying behavior. 33
Table 4.7: Distribution on Promotional strategy affects consumer loyalty 33
Table 4.8: Distribution onpromotional strategy contributes to product performance. 34
Table 4.9: Companies buy promotional products and host promotional
events as a technique of marketing communication. 34
Table 4.10: Adopting marketing communication techniques
is both time and finance consuming 35
Table 4.11: Raising awareness of your product in your target
market is one of the strategies of marketing communication 35
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Recently, increased attention is being paid by business on how to achieve maximum return on their investment. And it truism that no business organization can survive in today’s competitive and adverse economy without effective marketing of its goods and services. Kotler and Armstrong (2004).
Kotler and Armstrong (2004) reaffirmed the above fact, when they wrote that “modem marketing calls for more than just developing a good product, pricing it attractively and making it available to the target customers”. Companies most also communicate with current and prospective customers and what they communicate, should not be left to chances.
Moreso, Kotler (2003), relates this in a statement that “every company is inevitably cast into the role of a communicator and a promoter”.
Bearing the above in mind, business organizations need to sharpen their strategies, practices, and tools to enable them market their product effectively and to sustain their market share. One of such tools which business organization needs to sharpen is its promotional tools or strategies. Promotional Strategies are those activities put forward or directed to inform the target audience or market and also influence them to buy the product and (or) act favorably towards the product offered by the organization or manufacturer.
In general, the potential customer must know something about a product if they are to buy at all. A firm with a really new product may not have to do anything but inform consumers about it and show that it meets their needs better than other products. The marketing communicator must identify the target audience. The target audience may be individuals, groups or any of the marketers’ publics; they may be customers, users, deciders or the medium and the timing. In case the communicator has to research on the audience’s needs and wants product and brand preferences, media habits as well as their beliefs about the company, its products and competitor. The fact that people do not readily grab the advantage of a product particularly if it is entirely new, makes it utmost important that companies must design and disseminates adequate information about product characteristics and benefits to the target markets. Philip Kotler and Keller (2007).
Having started the above, marketing communication, (promotion), is a persuasive communication about an organization, and its products or offerings. The media, the audience, the respondent and the communication process element, are the foundation of promotional strategy. It gives credence to the fact that the marketer and the buyer contribute something and each want to gain something from promotional activities, thus describing marketing as a profitable exchange between two interested parties. The consumer derives both direct and indirect benefits from promotion. Promotional activities are aimed at the individual identity and the feelings of the consumer (that is appealing to their sub consciousness to avail themselves of the opportunity in the goods and services available). Philip Kotler and Keller (2007).
They are also aimed at informing, persuading and reminding consumers about availability, usage utilities of the product. They also builds customers hopes, desires and fantasies and provide images of what life is like what it might be like in the future.
The company’s communication responsibility does not end with the target customers. The company must communicate with other parties in its task environment, particularly its dealers and suppliers. It must communicate with its major external public, the media and the various government units.
Companies have responded to the need for effective communication by employing advertising, sales promotion, personal selling and public relations.
Marketing communication is a part of the entire marketing strategy of a company and must be coordinated within the framework of the marketing effort.
In the light of the above notion, the researcher considered it pertinent to study the influence that promotional/marketing strategies exert on consumers buying behaviors, using 7up Bottling Company Nigeria PLC, Aba plant as a parameter of the study.
1.2 STATEMENT OF THE PROBLEM
An organization, having produced goods, which it thinks is in consonance with consumer specification and which will enable her archive its corporate objective, is again faced with the effective promotion, distribution and sale of these goods. This restates the belief that consumer will ordinarily not buy or buy enough of the organization offerings without additional effort therefore it took additional creative reasoning to push the product across line of competition and segment of the market this effort is what expert called “promotional strategy” these do not exact influence on the buying decision of the consumer only but on his actual behavior, which invariably is primarily to increase sale for the organization. Still competition in most production and marketing oriented organization, has given promotion a new dimension. Now product appears to enjoy an unrestricted line of promotion all year long, with various exhibitions at various segments of the markets. However, contrary to expectations;
i. The inputs and effort of sales and buying behavior have continued to fall as
the year passed.
ii. The confidence and trust of people about jingles of promotion had been
replaced as a deceitful statement under the guise of companies selling their
product irrespective of the product quality and other promises.
The above, turn out to have negative impact on the after effect of any promotion. The result of which, organization do not realize the cost of promotional budgeting as well as any margin of profit so, it is in this light that the study becomes imperative.
1.3 OBJECTIVE OF THE STUDY
The general of this study is to inescapable point that must be made about the consumer is that it requires information to guide his actions. It becomes imperative to tentatively say, despite the above limitation, that promotion have not outlined its usefulness of causing demand for a product. The purpose of the objective study is to:
i. To show the degree of relationship between promotional strategy and
consumer buying behavior.
ii. To give credence to usefulness of promotional strategy in manufacturing.
iii. To show the impact of promotional strategy on actual sales.
iv. To show the impact of the marketing mix on the brand switching behavior
of consumers.
1.4 RESEARCH QUESTION
Based on the statement of the problem and objective of the study, below are the research question
i. How positive is the relationship between promotional strategies and consumer
behavior?
ii. Are organizations aware of the negative effect of product promotion on
consumer buying decision process and behavior?
iii. Are the promotional strategies adopted persuasive enough to enhance
product sales?
1.5 HYPOTHESIS
Consequent upon the objective of the study and the related research questions, the following hypothesis shall be considered in this research work.
H01: There is no significance relationship between promotional strategy and consumer buying behavior.
H02: Loyalty does not significantly depend on the influence of promotional strategy.
H03: Product sales does not significantly depend on the influence of promotional strategy.
1.6 SIGNIFICANCE OF THE STUDY
Based on the discussion so far the significance of this study is as follows:
It will make the student stand in a position to understand what promotional strategy is and measures that could be adopted in promoting products.
This study will strengthen the organization promotional tools and guide it in designing promotional strategies in the business environment. It will also help the organization to maintain its market.
The influence of promotional strategy on consumer buying behavior will help in formulating Economic policies and planning and in enactment of law to guide or strengthen consumers’ protections against sharp practices from manufacturers over competition.
It will enhance the upcoming student’s performances, which came to carry out further research on the topic in future with the information collected.
1.7 DEFINITION OF TERMS
MARKETING: This is the process in which companies deliver solutions to customers’ needs and desires in return for payment.
TARGET MARKET: These are the set of buyers sharing common needs and characteristics that the company decides to serve.
PRODUCT: This is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.
STRATEGY: A company’s game plan for achieving it goals. PROMOTION: A frame work for the purpose of informing, persuading and reminding present and potential consumers.
CONSUMERS: One who uses goods and services which directly satisfy his/her needs.
MARKETING STRATEGY: The marketing logic by which the business unit hopes to achieve its marketing objectives.
PROMOTIONAL MIX: This is the unique blend of controlled marketing communication, utilized for each product or service such as advertising, personal selling etc.
1.8 LIMITATIONS OF THE STUDY.
This study focuses on promotional activities as employed by manufacturing firms to influence the consumer buying behavior. This study would really have been good if conducted all through the manufacturing firms sited in the town of Aba. So the premises on which the study is based, is that expenditure can be reduced hence, the investigation is limited to 7up Bottling Company Nigeria Plc, Aba.
Furthermore, the decision of the study will not exceed the use of questionnaires and personal interview. Ideally, a research study of this nature should have covered the entire country but owing to the certain constraint of both time and financial constraint, this study has been limited to Aba only; the expectation is that this area will be an ideal representation of the entire country. Again the material used for this study was limited to what the student can afford.
Another problem is that of data collection. In the course of this study, a greater number of the populations are illiterate who misconstrue the purpose of the study, which have given the work added dimension, however, this constraint do not invalidate the outcome of the study.
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