ABSTRACT
This research work examined the Effects of Promotional Tools on Sales Volume In a Manufacturing Industry with special reference to Promasidor Nigeria Limited, Lagos.
The method used is survey approach which gives room for primary
data-questionnaire while the sampling technique adopted is simple random
sampling techniques in which all members of the population has equal
probability and independent chance of being selected.
Seventy (70) questionnaires were administered as sample drawn
from the entire staff of Promasidor Nigeria Ltd. Sixty (60) were retrieved
giving 86% response. Three hypotheses were formulated and tested.
The data extracted were presented on table using percentage and
hypotheses were analyzed using chi-square analysis.
Findings from the study shows that the choice of promotional
tools affects sales volume of the organization.
It was recommended that during festive period, organizations
should take full advantage by developing an effective and efficient sales
promotion campaign that can arouse the consumers awareness, thereby leading to
greater purchase of their products.
In conclusion, effective implementation of promotional tools
lead to increase in sales volume and invariably higher profits and improved
organizational performance.
TABLE OF CONTENTS
Cover
Page i
Certification
ii
Dedication
iii
Acknowledgement
iv
Abstract
vi
Table of Contents vii
CHAPTER
ONE: INTRODUCTION
1.1 Background
of the Study 1
1.2 Statement
of Problems 4
1.3 Objectives
of the Study 5
1.4 Research
Questions 5
1.5 Research
Hypotheses 6
1.6 Research
Methodology 7
1.7 Scope
of Study 8
1.8 Limitations
of the Study 9
1.9 Significance
of the Study 9
1.10 Historical Background of Chi Limited 10
1.11 Definition
of Terms 11
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 13
2.2 Elements of Promotion Mix 17
2.3 Theories
of Consumer Behavior Applied to Sales Promotions 21
2.4 Techniques
of Sales Promotion 25
2.5 Benefits
of Sales Promotion 32
2.6 Impact of Sales Promotion on Organizational
Performance 34
2.7 Ways
of Increasing Sales Promotion Performance 36
2.8 The Impact of Sales Promotion on Sales 40
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction 48
3.1 Sources of Data Collection 48
3.2 Population of the Study 49
3.3 Sample Size 49
3.4 Sampling Technique 49
3.5 Re-Statement of Research Hypotheses 50
3.6 Method of Data Analysis 51
CHAPTER FOUR: DATA ANALYSIS AND
PRESENTATION
4.1 Introduction 52
4.2 Analysis of Questionnaire 52
4.3 Test of Hypotheses 69
4.4 Discursion of Findings 74
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings 75
5.2 Conclusions 75
5.3 Recommendations 76
5.4 Suggestions for further study 77
Bibliography 78
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
The business environment has affected
the financial and commercial activities of business organization as a whole,
which has resulted in decline level of sales and profitability. In view of this
facts, many business organization are therefore involved in different type of
measure such as sales promotion in order to increase their sales and also to
remain in business since there is doubt that without adequate sales promotional
tools, most of the business objective will not be reached.
The effect of promotional tools on
sales volume cannot be over emphasized. Promotion which is among the 4p of
marketing mix is essential in running of any organization.
Due to the increase acceptance of
sales promotion by firms as a very important element of the promotional mix and
its expenditure also being on the rise, it has become very import to examine
whether promotional tools is actually making any impact on the volume of sales.
This paper specifically evaluates the effect of promotional tools on sales
volume with special reference to Promasidor Nigeria Limited.
1.2 STATEMENT
OF THE PROBLEM
Inspite of the tight definition of
sales promotion as an essential means of creating awareness of the product
existence and characteristics and also the positive, psychological associations
that can enhance the buyer satisfaction which add to the real value of the
company's offering, little attention is being given to it by many business
sectors in the country and they rarely promote their sales to the fullest.
Many firms pay little attention to
sales promotion since they feel they can sell their product with little or no
promotional activities. Likewise, many firms could not afford the huge cost of
the promotional programmes, would entail and despite the effects of sales
promotion, there had been insufficient research and decision modeling devoted
to it. In addition, there is an established negative perception of many firms
as regards the cost of business promotion especially those whose benefits are
not early and immediately reached.
Also, adequate records of sales and
promotional cost are always neglected and some sales promotion programmes are
introduced at the wrong time, which will therefore hinder the level of sales
and profitability of the firm and thereby render sales promotions less
important in the community and the country as a whole.
1.3 PURPOSE/OBJECTIVES
OF STUDY
The
purpose of this study is to examine the effects of promotional tools on sales volume in manufacturing
industries with special reference to Promasidor Nigeria Limited, Lagos.
The objective of the study is:
1. To examine the relationship between
sales volume and promotion tools
2. To investigate if consumers really benefit in sales
promotion
3. To examine if promotion tools influence
consumer purchase behaviour
4. To determine
if advertising is the most effective promotion tool to increase sales volume
5. To find out if Promotion tools have
significant effect on sales volume
6. To identify the implications of
defective sales promotion in an organization
7. To examine the main factors that affect
sales promotion?
1.4 RESEARCH
QUESTION
This study tends to investigate and
provide answers to the following questions.
1.
Is there any significant relationship between
sales volume and promotion tools?
2.
Do consumers really benefit in sales
promotion?
3.
Does
promotion tools influence consumer purchase behaviour?
4.
Is advertising the most effective promotion tool to
increase sales volume?
5.
Does
Promotion tools have significant effect on sales volume?
6.
What
are the implications of defective sales promotion in an organization?
7.
What
are the main factors that affect sales promotion?
1.5 STATEMENT
OF HYPOTHESES
To provide answer to the research
questions arising from this study, the following hypotheses are postulated.
Hypothesis One
H0: There
is no significant relationship between sales volume and promotion tools.
H1: There
is significant relationship between sales volume and promotion tools.
Hypothesis Two
H0: Advertising is not the most effective promotion tool
to increase sales volume.
H1: Advertising is the most effective promotion tool to
increase sales volume.
Hypothesis Three
H0: Promotion tools has no effect on sales volume of an
industry.
H1: Promotion tools has effect on sales volume of an
industry.
1.10 SIGNIFICANCE
OF THE STUDY
It is a fact that sales promotion has
a great impact in business organization. This study therefore intends to
determine to a great extent the impact of sales promotion in business
organization.
Because of the important role of
sales promotion, this study will therefore make a useful improvement upon the
performance of business and how their level of sales and profitability can be
improved.
This project will be of immense value
to future researcher who might intend to carry out a research on this
particular topic. It will also help to highlight how individual who may set up
their own business in future to carry out their business in an effective way.
1.7 SCOPE
OF THE STUDY
This study is limited only to the
effect of promotional tools on sales volume with special reference to Promasidor
Nigeria Limited.
The research work will be limited to
library/desk research and also face-face interviews will be conducted with some
marketers so as to collect enough information to make the research a successful
exercise.
1.8 LIMITATIONS
OF THE STUDY
The limitation of this type of
writing cannot be over emphasized, there are a number of limitations that
could prevent smooth study activities or even discourage the completion of
independent study. The basic expected limitations includes;
·
Uncooperative
Attitude of the respondent
·
Non-Availability
of essential records
·
Financial
Constraints and short time pace
1.9
DEFINITION OF TERMS
The
terms to be given operational definitions to are:
SALES
PROMOTION: Sales promotion can be defined as a broad
label that applies special kinds of sales accelerating activity not necessarily
classed as advertising and direct selling.
BUSINESS:
Business
can simply be defined as the totality of all economic activities that are
undertaken in the process of producing and distributing goods and services for
the purpose of making profit.
ORGANIZATION:
Organization
is defined by Robine (1987) said an organization is a consciously coordinated
social entity with a relatively identifiable boundary, that function on a
relatively continuous basis to achieve a common goal or set of goals.
ADVERTISEMENT:
Advertisement
is any paid form of non-personnel presentation and production of ideas, goods
or services by identified sponsor
PRICING:
Price
means the amount of money paid by the buyer to the seller of the product or
service.
PUBLICITY:
This
is a non-personal communication or presentation of an ideal product, service or
a cry that is not paid for by an identified sponsor.
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