EFFECT OF PROMOTIONAL ACTIVITIES ON THE SALES OF

LUBRICANTS

BY

EMMANUEL NELSON BASSEY

(MBA;CNA; NIAFA)

COLLEGE OF ACCOUNTANCY AND COMPUTER

TECHNOLOGY

BLOCK B, FLAT 8, MASOJE ESTATE

P.T.I. ROAD. EFFURUN,DELTA STATE

NIGER

EMAIL…e_n_bassey@yahoo.co.uk

+2347027002108

+2348028756984

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 DEDICATION

This research project is dedicated to the Almighty God for His ever

enduring love, kindness, mercy and grace all through the course of this

programme. Father, I thank and worship you and give You all the Glory

and Honour.

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 ABSTRACT

Sales promotion includes those marketing activities, other than personal

selling, advertising, and publicity, that stimulate consumer purchasing

and dealer effectiveness. They include point-of-purchase displays, shows

and exhibit demonstrations, and other nonrecurrent selling efforts.

Businesses can target sales promotions at three different audiences:

consumers, resellers, and the company's own sales force. Sales

promotion acts as a competitive weapon by providing an extra incentive

for the target audience to purchase or support one brand over another. It

is particularly effective in spurring product trial and unplanned purchases.

Most marketers believe that a given product or service has an established

perceived price or value, and they use sales promotion to change this

price-value relationship by increasing the value and/or lowering the price.

Compared to the other components of the marketing mix (advertising,

publicity, and personal selling), sales promotion usually operates on a

shorter time line, uses a more rational appeal, returns a tangible or real

value, fosters an immediate sale, and contributes highly to profitability.

In this research work, the researcher will consider in chapter one….the

introduction of the study which will in turn considers the following topics.

The background of the study, the statement of research problem, the

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objective of the study, significance of the study, the hypothesis and the

structure of the work.

Chapter two focuses on the literature review, this chapter is where the

researcher extract materials from various books, magazines, news papers

and internet resources. In chapter three, the researcher deals on research

methods while chapter four is data analysis and presentation. The

findings, summary, and conclusion is in chapter five.

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 CHAPTER ONE

INTRODUCION

1.1 BACKGROUND OF THE STUDY

Sales promotion is an important component of a small business's

overall marketing strategy even on the sales of lubricant, along with

advertising, public relations, and personal selling. The American

Marketing Association (AMA) defines sales promotion as "media and

nonmedical marketing pressure applied for a predetermined, limited

period of time in order to stimulate trial, increase consumer

demand, or improve product quality." But this definition does not

capture all the elements of modern sales promotion. One should

add that effective sales promotion increases the basic value of a

product for a limited time and directly stimulates consumer

purchasing, selling effectiveness, or the effort of the sales force. It

can be used to inform, persuade, and remind target customers

about the business and its marketing mix. Some common types of

sales promotion include samples, coupons, sweepstakes, contests,

in-store displays, trade shows, price-off deals, premiums, and

rebates.

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 In determining the relative importance to place on sales promotion

in the overall marketing mix especially as touching the sales of

lubricant, a small business should consider its marketing budget,

the stage of the product in its life cycle, the nature of competition in

the market, the target of the promotion, and the nature of the

product. For example, sales promotion and direct mail are

particularly attractive alternatives when the marketing budget is

limited, as it is for many small businesses. In addition, sales

promotion can be an effective tool in a highly competitive market,

when the objective is to convince retailers to carry a product or

influence consumers to select it over those of competitors.

Similarly, sales promotion is often used in the growth and maturity

stages of the product life cycle to stimulate consumers and resellers

to choose that product over the competition—rather than in the

introduction stage, when mass advertising to build awareness might

be more important. Finally, sales promotion tends to work best

when it is applied to impulse items whose features can be judged at

the point of purchase, rather than more complex, expensive items

that might require hands-on demonstration.

1.2 STATEMENT OF THE PROBLEM

Some organizations/firms do not carry out any form of marketing

promotion. They are satisfied that a good product with a network of

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 distribution is enough. However, nowadays the picture is different.

There is need for marketing/sales promotion and it is unavoidable

to be successful in the dynamic environment, a producer must not

only offer a good product at a reasonable price, right time, right

quality and right quantity but also inform actual and potential

customers about the

product and where they can buy it. Producers must tell wholesalers

and retailers in the channel about their product and their marketing

mix. These intermediaries in turn must use sales promotion to reach

their customers- therefore, arose the effect of promotion to

marketing strategies. In considering the effect of promotional

activities on sales of lubricant, some questions easily come to mind

are:….

1. What is the effect of sales promotion on marketing

lubricants?

2. What is the role of management with regards

to promotional activities to marketing of lubricant?

3. What is the contribution of workers in sales promotion

of the lubricants?

4. What impact does the company have on the

promoters as well as workers with regards to promotion?

5. What is style of business communication?

6. How and where does focus on customer satisfaction begin in an organization?

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7. How does the company build positive relationship with their customers?

1.3 HISTORICAL DEVELOPMENT OF THE STUDY

Sales promotion has grown substantially in recent years. There are

several reasons for this dramatic growth in sales promotion. First,

consumers have accepted sales promotion as part of their buying

decision criteria. It provides reluctant decision makers with an

incentive to make choices by increasing the value offered by a

particular brand. Second, the increasing tendency of businesses to

focus on short-term results has helped spur growth in sales

promotion, which can provide an immediate boost in sales. Product

managers also tend to view sales promotion as a way to

differentiate their brand from that of competitors in the short term.

Third, the emergence of computer technology has enabled

manufacturers to get rapid feedback on the results of promotions.

Redemption rates for coupons or figures on sales volume can be

obtained within days. Finally, an increase in the size and power of

retailers has also boosted the use of sales promotion. Historically,

the manufacturer held the power in the channel of distribution.

Mass marketers utilized national advertising to get directly to

consumers, creating a demand for the heavily advertised brands

that stores could not afford to ignore. With consolidation and the

growth of major retail chains, however, retailers have gained the

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 power to demand incentives from manufacturers to carry their

products. Many sales promotions are designed to provide benefits to

the retailers.

1.4 PURPOSE OF STUDY

The purpose of this study is to find the effect of promotional

activities on sales of lubricants, since these are changes in modern

world of marketing. Affecting buyers’ behaviour is a challenging job

and it is the object of the promotion. As a service to exhibitor, to

ensure that participants get maximal opportunity, to meet buyers

and users, the promoter actively carries unique characteristics in

order to take advantage of the competitors’ market environment.

The fact behind this purpose is……To communicate with individuals,

groups or organizations to directly or indirectly facilitate exchanges

by informing and persuading one or more audiences to accept an

organization's products.

1.5 SCOPE OF STUDY

Although sales promotion is an important strategy for producing

quick, short-term, positive results, it is not a cure for a bad product,

poor advertising, or an inferior sales team. After a consumer uses a

coupon for the initial purchase of a product, the product must then

take over and convince them to become repeat buyers. In addition,

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 sales promotion activities may bring several negative consequences,

including "clutter" due to the number of competitive promotions.

New approaches are promptly cloned by competitors, as each

marketer tries to be more creative, more attention getting, or more

effective in attracting the attention of consumers and the trade.

Finally, consumers and resellers have learned how to milk the sales

promotion game. Consumers may wait to buy certain items knowing

that prices will eventually be reduced, for example, while resellers

have become experts at negotiating deals and manipulating

competitors against one another. This study investigates the effect

of promotional activities on sales of lubricants . The study covers all

level of promotion, from personal selling, advertising, direct

marketing public relations, publicity to sales promotion.

1.6 THE OBJECTIVE OF THE STUDY

The main objective of the study is to determine the effects of

promotional activities on sales of lubricants.

The subsidiary objective includes: Selecting the right Promotional

Tools:

A marketer must do the following while planning and sending

communications to a target audience:

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 1. Identify the Audience

Individuals, groups, special publics or the general public.

Intermediaries vs Consumer

2. Identify the Stage of Product Life Cycle

o Introductory Inform Publicity/Advertising/Sales force

(interm.)/Sales promotion (free samples)

o Growth Persuade Differentiate from competitors offering

o Maturity Remind Reminder advertising, Sales promotion

(coupons)

o Decline Cut budget

3. Product Characteristics

o Complexity: How much information must be communicated.

The more complex the message, the greater the need to use

personal selling.

o Risk Greater risk, greater need for personal selling

4. Stages of Buying Decision

In many cases the final response sought is purchase, but purchase

is the result of a long process of consumer decision making. Need to

know where the target audience now stands (in the process), and

what state they need to be moved to.

1.7 SIGNIFICANCE OF THE STUDY

This research will be of great interest and benefit to the following:

1. The manager of any company dealing on lubricants.

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 2. Producer, intermediaries, as well as management,

organizations/firms.

3. The students of marketing and business administration.

4. Likewise to aspiring businessmen and entrepreneur.

5. The diverse group of people and the dynamic marketing partners

as well as the society at large. The diversified group of people

above, must know how to adapt to the marketing strategies, new

technologies etc.

Marketing need a broad range of skills in order to build profitable

relationships with customers as well as satisfy their needs in the

global competitive environment.

1.8 LIMITATIONS OF THE STUDY

This work was carried out under a tight schedule of school pressure

and work load which makes it absolutely necessary to devote

limited time to do it, having sleepless night etc.

Another problem encountered is finance, the cost of transportation

in carrying out the investigation. Individual differences in responses

to questionnaire are also a limitation encountered.

The Questionnaire method of primary data collection was limited to

the verbal responses of subjects to pre-arrange questions. It also

had limitation that its usefulness depended on the level of education

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of the subjects. There was the limitation of the problem of memory

in remembering past facts. The structured nature of the

questionnaire may compel the respondents to give answers that

they do not fully endorse, There was the limitation of the rigidity of

the research instrument, which diminishes the amount of

information that could be gathered.

There was the limitation that the cost of administering the

questionnaire was very high due to high administrative, personnel

and traveling costs especially when some of the respondents were

initially not on their seats. There was the limitation that the

researcher and the field data collectors were not policemen and so

they could not force some of the respondents if they refuse to give

answers. There was also the limitation of the scarcity of time and

money resources.

In nutshell, we want to mellow down this point to the following

subtopics

Material Procurement

There was a lot constraints as to getting information and materials

for the job. The researcher made series of consultations and visit to

most renowned institutions to acquire the needed information. Most

materials used were very difficult to come by, as there is no library

within the town.

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Time Constraints

Combining academic work with job is no doubt a thought provoking

issue, as it has to do with time. Actually, a lot of time was wasted

as the researcher visited the organizations and individuals together

with government agencies to obtain valuable information for the

project.

Financial Constraints

The researcher would have obtained more information than what is

obtainable here but due to lack of money to visit some of the firms

and government agencies located a bit farther from the researcher

place of resident.

HYPOTHESIS

It is a conjectural statement of the relationships between two or

more variables. It is testable, tentative problem explanation of the

relationship between two or more variables that create a state of

affairs or phenomenon.

E,C, Osuola (1986 page 48) said hypothesis should always be in

declarative sentence form, and they should relate to them generally

or specially variable to variables.

HYPOTHESIS THUS:
1. Explain observed events in a systematic manner

2. Predict the outcome of events and relationships

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 3. Systematically summarized existing knowledge.

In essence, there exist NULL HYPOTHESIS set up only to nullify the

research hypothesis and the ALTERNATIVE HYPOTHESIS for the

purpose of the study. For the efficiency of the study, the hypothesis

is as follows:

NULL HYPOTHESIS (HO)

1. Sales promotion does not includes those marketing activities,

other than personal selling?

2.` The role of the sales promotion has nothing to do with

communication with individuals, groups or organizations to directly

or indirectly facilitate exchanges by informing and persuading one

or more audiences to accept an organization's products.

ALTERNATIVE HYPOTHESIS
1. Does Sales promotion includes those marketing activities, other

than personal selling?

2. The role of the sales promotion is to communicate with

individuals, groups or organizations to directly or indirectly facilitate

exchanges by informing and persuading one or more audiences to

accept an organization's products.

1.8 STRUCTURE OF WORK

This research work is to be organized in five chapters as follows:

1. Introduction
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2. Review of Related Literature

3. Research Methods and Producers

4. Data presentation and Analysis and

5. Summary, Findings, Conclusion and Recommendation.

CHAPTER TWO
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 REVIEW OF RELATED LITERATURE

2.1 THE SPECTRUM SALES PROMOTION

Promotion is seen from dimension and different scholars,

professional bodies and associates have been given various

definitions of promotion.

Nevertheless, it is indeed noteworthy that each definition is unique.

Promotion is a vital component of marketing and an integral aspect

of or complex social economic system. However, few of the

definitions by some authors are as follows:

According to George E. Belch and Michael A. Belch, (2001)

Promotion is the “co-ordination of all seller-initiated efforts to get up

channel of information and persuasion to sell goods and services or

promote an idea” (advertising and Promotion Fifth Edition 2001)

Scoth Ogini (2005) Promotion is the marketer tool for

communicating with customers for understanding and patronage.

Promotion is a short-term incentive to encourage sales of goods and

services. It is indeed an organized way or plan of communicating

function of marketing to customers to effect behaviour of diversified

buyers-target customers and taking advantage of competition

market environment. More than half of the world’s economic

activities consist of exchanges between organization and most of

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 these are commercial enterprises that exist to provide products or

services to other firms or ultimate consumer. Thus, promotion plays

a crucial part of any marketing mix in an organization, essential for

the success of the overall marketing strategy. The effect of

promotion is to inform and create awareness that the right product

is available at the right place at the right price to satisfy consumers

or customers need.

2.2 METHOD/FORMS OF PROMOTION.

Most companies or organization have various ways/methods of

promoting their product or services. Take for example car

companies uses variety of methods to promote their brands. Thus,

there are several forms of promotion available as noted by William

D. Perreault, E Jerome McCarthy, Steven Parkison and Kate Stewart

(2000). They are as follows:

i. Personal selling .

ii. Advertising .

iii. Direct marketing or mass selling.

iv. Publicity and public relation

v. Sales promotion.

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 Each of these promotional, tools has its own unique characteristics,

cost, strength and limitations. However, a marketing manager uses

them in combination thereby creating a promotion mix. Below is a

diagrammatic basic promotion method and strategy planning.

Target

Product Place Promotion Price

Mass
Personal Communication Sales
Selling or Direct promotion
Marketing

Publicity and
Advertising
Public Relation

William D. Perreault, E. Jerome McCarthy, Steven Parkison & Kate S

(1990). Basic promotion method and strategy planning. The

ultimate objectives of promotion are to effect the buyers’ behavour.

The promotion objectives are.

i. Informing.

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ii. Persuading

iii. Reminding.

iv. Assuring.

For a firm’s promotion to be effective, its promotion objectives must

be clearing defined because the right promotion mix depends on

what the firm or organization wandts to accomplish. Promotion also

requires effective communication.

PERSONAL SELLING (Flexibility is its strength)

Personal selling is the most effective tool at the later stages of the

buying process. A form of person-to person, face-to-face

communication between seller and prospective or potential buyers

so as to inform build up buyer preference, persuade them to

purchase the company’s product or services. However, it is the final

element of an organizations promotional mix.

Personal selling has three distinctive qualities:

i. Personal confrontation: personal selling involves an immediate

and precise feedback due to interactive relationship between the

seller and customer (Rention) if the feedback is unfavourable,

the sales person can modify the massage accordingly.

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 ii. Cultivation: personal selling result to a customer’s relationship as

well as a deep personal selling makes the buyer or customer feel

or seller’s talk.

ADVERTISING

Advertising is defined as any paid from of non-personal

communication of an organization, product, idea or services by an

identified sponsored. Scoth Ogini (2006). The paid aspect of the

definition means that the space or time for an advertising message

must be bought or paid for except PSA (public service

announcement whose advertising time or space is donated by the

media. The non personal means of advertising which involves mass

media e.g. T.V, radio, magazine and newspapers that passes

information to a large number of persons at the same times.

Due to advertising many forms and usages, it is difficult to make

generation. Nevertheless, it has the following qualities or

uniqueness.

i. Public presentation: its public nature legitimizes the product or

services and gives a standardized offer.

ii. Pervasiveness: permits repetition of a message or information many

a time. Advertising allows buyers to receive and compare the

messages of various competitors. For instance, large advertising

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 conveys positive information about the seller’s size, power and

success.

iii. Amplified expressiveness: advertising provides opportunities for

dramatizing the company and its products through the artful use of

print, sound and colour.

iv. Impersonality: it is a monologue in front of, not a dialogue with the

audience, hence the audience may feel obligated to pay attention or

respond to it but it thus build up a long-term image for a product or

trigger quick sales.

DIRECT MARKETING MASS COMMUNICATION/MASS SELLING

(reaching million at a price or even free)

This is communicating with large number of prospective customers

at the same time. Direct marketing involves a variety of activities

which includes database management, direct selling, tele-

marketing, direct response as through direct mail, the internet,

website, various broadcast and print media. It is intended to acquire

and retain customers, by contracting them without the use of any

intermediary. Unlike the other forms of communication, it usually

requires an immediate response which means that its effectiveness

can be accessed quantitatively.

Direct marketing is defined as “the distribution of products,

information and promotional benefits to target consumers through

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 interactive communication in a way that allows response to be

measured. Direct marketing plays a big role in the integrated

marketing communication programme of consumer-product

companies and business-to-business marketers. And it has four

distinctive marketers:

i. Non-public: the message can be prepared to appeal to the

addressed individual.

ii. Up-to-date: a massages can be prepared very quickly, building one-

to-one customers relationships-scrutinized.

iii. Interactive: the massage can be change depending on the person’s

response.

PUBLICITY AND PUBLIC RELATION PUBLICITY: publicity

according to scoth ogini (2006) means an unpaid form of

communicating ideas, products , and services, (publicity is free) like

advert, it is no personal communication to a mass audience but it is

not directly paid for by the company. The information publicized is

carried out through the use of newspapers, press conference,

articles, films and editor who determine the nature of the massage.

The information passed could be negative or positive since it is not

under the control of the organization. An advantage of publicity is

that it is highly credible or credibility. The stories and features are

more authentic and credible to reader than advert.

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Another advantages is its low cost. Since the company does not pay

for its except the information is favourable and the company now

decide to develop it by appointing a public relation officers which

may incur some cast.

PUBLIC RELATION: it is noteworthy to know that there is

distinction between publicity and public relations. When an

organization systematically plans and distributes information to

control and manage the nature and posive image of publicity it

receives. It is said to have engaged in public relation. Public relation

is defined as the management function, which calculates public

attitudes, identifies the policies and procedure of an individual or

organization with the public interest and executives a programme of

action to earn public understanding and acceptance.

The purpose of public relation is to establish an maintain a positive

image of the organization or firm and dramatizes a company’s

product or service.

SALES PROMOTION: sales promotion could be defined as various

marketing activities that add extra value, incentive to the sales

force, distributors or the ultimate consumer. Thus sales promotion

spark immediate interest stimulates purchase by final consumers on

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 product and services in the channel. There two major categories or

sales promotion, namely;

i. Consumer – Oriented.

ii. Trade – Oriented.

CONSUMER – ORIENTED: is targeted to the ultimate uses of a

product or services, which includes couponing premiums,

consumer rebates sampling, pens and calendar and free T-shirts

and cap etc. and this encourages consumers purchase items

immediately and stimulates short-term sales.

TRADE – ORIENTED: sales promotion is targeted towards

marketing intermediaries like whole sales distributors and

retailers which includes promotional and merchandising

allowances, price deals, trades shows, training programmes e.t.c

which are various means of promotional tools used by companies

or firms to promotes their product or goods and services.

(Jerome McCarthy E. and William D. Perreault) Jr (1990).

2.3 IMPORTANCE OF PROMOTION IN MARKETING

STRATEGIES AND ITS ADVANTAGES.

The need or importance of promotion cannot be

underestimated.

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 Promotion is fourth means of marketing the others are product,

place and price, an integral part of marketing process in most

organization or company. The promotional mix helps in

achieving more efficient and effective communication

programme. More so, promotion contributes towards IMC

(integrated marketing communication), which involves a rapidly

changing environment in terms of technologies, consumers and

media.

The importance of promotion lies in six development in

marketing world: the decline of the influence of commercial

broadcast networks increase in programmes cast, education of

management about marketing, pressure from the new

technologies these influences combined bolster marketing

programmes and create good image of the organization. Infact,

the rapid changes in the dynamic market environment added up

to increase the importance of promotion in this twendty-first

century. Professionals trained in the strategies and techniques in

marketing will be in great demand in the decades ahead.

2.4 THE ROLES OF PROMOTION

The role of promotion in the marketing function is to convey

news, to tell customers about the benefits of the products.

Promotion helps to achieve the organization’s objectives of

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 targeted market strategies. Added to promotion is marketing

function. Companies ranges from large multinational corporatins

to small retailers increasingly rely on promotion to help them

market product and services. Promotion facilitates the sales of

product, goods and services. An indispensable tool for creating

and exploiting differences that is for positioning, such as

persuading, assuring or convincing and reminding the targeted

audience that the promotional mix activities differs substantially

from its competitors.

2.5 PROMOTIONAL MANAGEMENT

Promotional management has to do with co-ordinating the

promotional mix element in order to develop a controlled

integrated programme of effective marketing communication.

Promotion is much more than selling and entertainment to the

hungry public. At the heart of every thing is communication.

Communication must be interesting. Effective promotion must

attract attention before it can be interpreted and build

constituencies etc. and with regards to this fact, there should be

management.

In organizing the various promotional mix, the marketer should

decide on which form of promotion to use, how to combine them

so as to achieve the organization’s marketing objectives. The

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 manager must reason on what percentage of the budget to

allocate to the choice of promotional mix decided on. In

developing and managing of promotional mix, the following

should be considered by:

i. Type of product

ii. The target marketer

iii. Buyers decision process

iv. Stage of product life cycle.

v. Channels of distribution.

2.6 THE PROMOTIONAL PLANNING PROCESS

A key success to any business function is planning. Planning

is fundamental for effective promotion process or role.

Promotion is not the straightforward activity that in a grossly

over communicated society, the process is more complex.

Setting reasonable, achievable objectives then is the first and

most important step in the promotion plan. All other plans

flow naturally form this producing an effective marketing plan

that will give an organization competitive advantage and it

requires knowledge, skill intellect and creatively and above

all, time. Promotion planers must have business marketing

intelligence (BMI) because it likes an organization to its

external environment, thereby enabling management to

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develop informed and rational decisions about markets,

competitors and strategy. BMI is defined as the collection,

analysis and interpretation of relevant internal and external

marketing information. It is a process that makes it possible

for firms or organization to learn, understand and deal with

new challenges. MBI is a future oriented activity that helps

organization cope in the market environment. It includes all

ways and use information.

Today marketing intelligence tends to create changes in the

global market world; hence it is essential for a promotional

planner in planning process. A rational marketer must design

a promotional planning process, if possible may sometimes

re-evaluate the planning process to measures the progress

and effectiveness of the programmes develop, implemented in

marketing corrections for adjustment with regards to the

promotional function of marketing strategies. Promotional

planners must decide on specific role, elements of

promotional mix develop strategies for each elements and

plan as well as implement. In addition, the market plan of an

organization should be written document that describes the

overall marketing strategy to reach the target audience.

Infact, promotional plan is an integral part of the marketing

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 strategy. (Susan Tyler Eastman, Douglas A. Ferguson and

Robert A. Klen (1999)

2.7 DEVELOPING PROMOTIONAL STRATEGIES

Besides the promotional plan process, developing promotional

strategies and activities play a pivotal role in market channel.

These activities include advertising, sale promotion, and

personal selling effort e.t.c which is directed towards

influencing and stimulating consumer behaviour or end-user

purchases, thereby having a programme to motivate channel

members. And the fundamental strategy decision is “a push

versus a pull” promotional strategy. A push strategy is a

programme designed and focuses manufacturer promotional

efforts on the members of distribution channel itself rather than

the final user using trade advertising and allowances, trade

promotions, and personal selling to stock manufacturers

products and promote them to final user. The goal of lthe push

strategy is the product to re-sellers or trades, selling and

promoting the items through the channels of middlemen. It

aims at convincing resellers that push the products to their

customers and make profit on it.

On the other hand, a pull strategy is to appetiz buyer or

customers demand for a product or services by professional

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 effort that are aimed at the ultimate customer or industrial

user. The pull promotional strategies goal is to imbues or

create demand of the product or service on the customer at a

level and encourage them to request for the product or service

form the retailers, whole sellers or distributors and the

middlemen will thus be compelled to stock the products or

renders services in accordance to their respective assortments.

More so, push strategy uses advertising and consumer

promotion element however, the push or pull promotional

strategies to be use depends on the company’s choice base on

its number of factors which includes:

i. Company’s relation with trade

ii. Promotional budget

iii. Demand for the firms product or services rendered

Company that has favourable relation or channel relationship

may prefer a push strategy while that which has a favourable

demand out look for product or service swill prefer a pull

strategy. But combination of a push and pull strategies in

more beneficial and appropriate. (George E. belch and Michael

A. Belch (2001).

2.8 CONSUMER SALES PROMOTION TECHNIQUES

• Price deal: A temporary reduction in the price, such as happy hour

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• Loyal Reward Program: Consumers collect points, miles, or credits

for purchases and redeem them for rewards. Two famous examples

are Pepsi Stuff and Advantage.

• Cents-off deal: Offers a brand at a lower price. Price reduction may

be a percentage marked on the package.

• Price-pack deal: The packaging offers a consumer a certain

percentage more of the product for the same price (for example, 25

percent extra).

• Coupons: coupons have become a standard mechanism for sales

promotions.

• Loss leader: the price of a popular product is temporarily reduced in

order to stimulate other profitable sales

• Free-standing insert (FSI): A coupon booklet is inserted into the

local newspaper for delivery.

• On-shelf couponing: Coupons are present at the shelf where the

product is available.

• Checkout dispensers: On checkout the customer is given a coupon

based on products purchased.

• On-line couponing: Coupons are available on line. Consumers print

them out and take them to the store.

• Mobile couponing: Coupons are available on a mobile phone.

Consumers show the offer on a mobile phone to a salesperson for

redemption.

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 • Online interactive promotion game: Consumers play an interactive

game associated with the promoted product. See an example of the

Interactive Internet Ad for tomato ketchup.

• Rebates: Consumers are offered money back if the receipt and barcode

are mailed to the producer.

• Contests/sweepstakes/games: The consumer is automatically

entered into the event by purchasing the product.

• Point-of-sale displays:-

o Aisle interrupter: A sign that juts into the aisle from the shelf.

o Dangler: A sign that sways when a consumer walks by it.

o Dump bin: A bin full of products dumped inside.

o Glorifier: A small stage that elevates a product above other

products.

o Wobbler: A sign that jiggles.

o Lipstick Board: A board on which messages are written in

crayon.

o Necker: A coupon placed on the 'neck' of a bottle.

o YES unit: "your extra salesperson" is a pull-out fact sheet.

2.9 TRADE SALES PROMOTION TECHNIQUES

• Trade allowances: short term incentive offered to induce a retailer

to stock up on a product.

33
 • Dealer loader: An incentive given to induce a retailer to purchase

and display a product.

• Trade contest: A contest to reward retailers that sell the most

product.

• Point-of-purchase displays: Extra sales tools given to retailers to

boost sales.

• Training programs: dealer employees are trained in selling the

product.

• Push money: also known as "spiffs". An extra commission paid to

retail employees to push products.

Trade discounts (also called functional discounts): These are

payments to distribution channel members for performing some

function .

2.10 SALES PROMOTION OPPORTUNITIES AND LIMITATIONS

o Increase in sales by providing extra incentive to purchase.

May focus on resellers (push), consumers (pull) or both.

o Objectives must be consistent with promotional objectives and

overall company objectives.

o Balance between short term sales increase and long term

need for desired reputation and brand image.

o Attract customer traffic and maintain brand/company loyalty.

o Reminder functions-calendars, T Shirts, match books etc.

34
 o Impulse purchases increased by displays

o Contests generate excitement esp. with high payoffs.

Limitations

o Consumers may just wait for the incentives

o May diminish image of the firm, represent decline in the

product quality.

o Reduces profit margins, customers may stock up during the

promotion.

Shift focus away from the product itself to secondary factors,

therefore no product

2.11 DEFINITION OF TERMS

In order to ensure proper understanding of what the study

entails, the following key words and concept are explained

below:

1. PROMOTION: to boost the sales of product or service

rendered through sales promotion, advertising, personal

selling, direct marketing and publicity and public relation.

2. PROMOTION MIX: an organizations total promotional effects

including personal selling, advertising etc. the promotional

mix attempt to attain integrated marketing communications.

35
3. PROMOTIONAL PRICING: temporarily setting the price of

product below least price and sometimes even below cost

price to increase sales in short term.

4. PROMOTERS: a person involved insetting up and preparing,

finding customers, raising subscription for the

organization/firm. The promoters in a position of trust with

regards to the new company/companies and may not make

undisclosed profit or benefit at its expense.

5. MARKETING STRATEGY: a plan identifying what marketing

goals and objectives will be implemented in selling its product

and how the objectives can be achieved.

6. MARKETING WEBSITE: this is a site designed to handle

interactive communication initiated by the company with

consumers for the purpose of moving them closer to a

purchase.

7. STRATEGIC PLAN: a plan describing how a firm will adapt to

take advantage of opportunities in its constantly changing

environment so as to maintain the firms goals and capabilities

in the market sector.

8. BME (BUSINESS MARKETING INTELIGENCE): this is

gathering, analyzing and interpreting relevant internal and

external marketing information, it enables a firm to learn,

36
 understand and deal or cope with new challenges future

oriented for success in global world.

CHAPTER THREE

RESEARCH METHODS AND PROCEDURES

3.1 RESEARCH DESIGN

The research method selected for the study is a combination of

a survey and an industrial study. The survey research method

is described hereunder that:

(i) It is a design in which primary data is gathered from members

of the sample that represents a specific population;

(ii) It is a design in which a structure and systematic research

instrument like a questionnaire or an interview schedule is

utilized together with the primary data;

(iii) It is a method in which the researcher manipulates no

explanatory variables because they have already occurred and

so they cannot be manipulated;

37
(iv) Data are got directly from the subjects;

(v) The subjects give the data the natural settings of their

workplaces;

(vi) The answers of the respondents are assumed to be

largely unaffected of the Context in which they are brought;

(vii) The impacts of the confounding factors are “controlled”

statistically; and

(viii) The aim of the research may span from the exploration

phenomena to hypotheses testing (stone 1995).

The survey research method has some merit, which are to be

articulated hereunder: In the survey research method, the

sample of the respondents is selected in such a way as to make

for the generally low due to the utilization of big sample sizes,

which results in generally low sample errors. Also the

probability sampling techniques utilized in selecting the

samples of the respondents in a survey especially, the selecting

the samples of the respondents in a survey especially, the

random sampling techniques makes it possible to give every

element in the population a known and chance of belonging to

the sample and by so doing, sample bias is either minimised or

completely eliminated (Stone 1995). Sampling even as a

compromise has a lot of strength. The survey research method

38
 also has the merit that data collection takes place in the

“natural” settings of the workplace rather than an activated

laboratory. Data is collected directly from the respondents. The

advantage that the survey yields data that suggests new

hypothesis is very illuminating. There is also the merit that a

set of systematic data collection instruments such as

questionnaire interview schedules and observation gadgets can

either be used alone or in conjunction with other instruments

(Stone, 1995).

3.2 SAMPLING

Spiegel (1992) observes that sampling theory is a study of

the relationship existing between a population or universe and

the samples drawn from it. The population in this study is the

entire staff of the firm.

In order to make conclusions of sample theory and statistical

references to be valid, a sample must be selected as to be

representative of the population (Spiegel, 1992 ). One way

in which a representative sample may be got, is by the

process of stratified random sampling. In this research work,

the technique of simple random sampling is used to select the

sample of 100 respondents from a total sample size of 200.

39
 The list of all the senior staff in the two firms in the aviation

industry is got from the personnel department of the firms in

the industry. The numbers are written on a piece of paper,

put in a basket and the papers are folded to cover the

numbers and one of the pieces of paper is selected at a time

without replacing it and any name corresponding to the

number becomes a number of the sample. This method of

sampling without replacement is done until the sample of 100

respondents per firm is got.

3.3 DATA COLLECTION

As earlier stated, the primary data collection instrument in

this study was the questionnaire. In the questionnaire method

of primary data collection, a heavy dependence was placed on

verbal reports from the subjects to get information on the role

of packaging as a management strategy.

The questionnaire had a lot of merits. It needed less skill to

administer. Further, Questionnaire can be administered to a

big number of individuals at the same time. Also with a

specific research budget, it was usually possible to cover a

brooder area and to get information from more subjects by a

questionnaire. The impersonal nature of a questionnaire, its

structure and standardized wording, its order of question, its

40
standardized instructions for recording answers might make

one to conclude that if offers some uniformity from one

measurement occasion to another (Selltiz et al, 1976).

Another merit of questionnaire was that subjects may have a

bigger confidence in their anonymity, and thus feel freer to

express views they feel might be disapproved-Another

attribute of the questionnaire that is sometimes, through not

always desirable is that it might place less pressure on the

subjects for immediate response (Selltiz et al, 1976).The

questionnaire also has some demerits. It has been estimated

that for purpose of giving dependable responses to a

questionnaire, one respondents must be considerable

educated, Thus one of the demerits of the usual questionnaire

is that it is appropriate only for with a considerable amount of

education. There is also the demerit that subject may be

reluctant and unable to report on the particular subject

matter. Also, if a subject misinterprets a question or give his

or her answer in a batting manner, there is often a little that

can be done to ameliorate the situation. In a questionnaire,

the information the researcher gets is limited to the fixed

alternative answer format, when a specific answer is not

available, it can lead to errors (Selltiz, 1976).

41
There is also limitation of memory in reporting on past facts.

There is also a problem beyond memory. Usually, the cause of

a failure to report past facts is not forgetting in the usual

sense of the word but rather, it may be motivational. Also the

researcher is not a policeman that can compel answers. That

is, the information may not be readily accessible to the

subject and thus the subject may be reluctant to put forth

enough alternative information that he or she is only barely

conscious of (Selltiz et al, 1996).

In this research project a structured and undisguised

questionnaire is utilised which is made up of two parts

namely, the personal data section and the section on the data

on the actual subject matter of the work. The questionnaire is

undisguised in the sense that the purpose of the data

collection which is to collect primary data for writing up the

researcher’s HND project is made known to the 200

respondents. The questionnaire is structured in the sense that

the questions are logically sequenced and are to be asked to

the respondents in the same manner and no follow up

questions are to be allow. Some of the questions are of the

fixed alternative answer format type. Ten (10) of the

questions have yes or no answers, Ten (10) of the questions

have alternative answers for the respondents to tick.

42
 The structured questionnaire has the merit that it yields data

that is easier to analyse than data produced by an

unstructured questionnaire. Also the structured nature

diminishes both researchers and research instrument biases.

It however has the demerit that the rigidity of the research

instrument diminishes the amount of information that could

be got.

The method of communication of the research instrument is by

means of the personal interview. The method has the merit

that it produces a better sample of the population than either

mail or the telephone methods. It also has the merit that it

gives a very high completion and response rates. It has the

merit that the interview has a bigger sensitivity

misunderstandings by the respondents and gives a chance for

clarification of misunderstood questions.

It has the merit that it is a very feasible method (Selltiz et al,

1976). The personal interview method has the demerit that it is

more costly than the mail or the telephone methods of

communication of a questionnaire.

3.4 FIELD WORK

The researcher and three other field data collectors did the

fieldwork.

43
 The field data collectors were other classmates also offering

the part-time HND program, who have also offered Research

Methodology. They were to be trained by the researchers on

how to gain entry , greet the respondents and , how to tick

the questionnaire correctly, and honestly.

3.5 DESCRIPTION OF DATA PRESENTATION AND ANALYSIS

TOOLS

The data presentation tools were simple bar charts,

histograms, and pictorial tables. The most important parts of

a table include;

(a) Table numbers

(b) Title of the table

(c) Caption

Stub or the designation of the rows and columns

The body of the table.

The head note or prefatory note or explanatory just before the title;

Foot note, which is an explanation not at the end of the page

(h) source note, which refers to the literally or scientific

source of the table(Mills and Walter 1995)

Anyiwe (1994) has observed that a table has the following

merits over a prose information that;

44
A table ensure an easy location of the required figures;

Comparisons are easily made utilizing a table than a prose information;

(k) Patterns or trends within the figures which cannot be

visualised in the prose information can be revealed and

better depicted by a table; and

A table is more concise and takes up a less space than a

prose formation:

The data is to be analysed by means of percentage, cross

tabulation and the chi square test of population proportions

for testing the two hypotheses. Percentages express the ratio

of two sets of data to a common base of 100. Cross tabulation

involves utilising a table to display two or more variables. The

chi square test of population of the respondents who said yes

to a particular yes or no question is given at 5% level of

significance to a particular (Spiegel, 1992)

45
 It is in this respect that this study finds it worthwhile to address the
following questions using time series data for a 31-year period, 1970-
2000: (a) what is the nature of relationship between poverty,
unemployment and growth in Nigeria? (b) what steps should be taken to
ensure that growth is such that brings about decrease in unemployment
and poverty in Nigeria?

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 INTRODUCTION

In the previous chapter, the research methods and procedures have

been handled. In this chapter the data presentation and analysis

are to be done. The data is to be presented by means of tables, two

simple bar charts, one histogram and one pie chart to make it

amenable for further analysis. By analysis is meant the act of noting

relationship and aggregating the set of variables with similar

attributes and also breaking the unit of their components (Mills and

Walters 1995).

In this research work, the research accepts the contention of

Podsakoff and Dalton (1995) that the factual information from the

46
data can be used as a basis for reasoning, calculation and

discussion.

Apart from the heading above, the other headings in this chapter

includes:

Data Presentation,

Percentage analysis

Cross-tabulated analysis

Hypothesis testing

4.2 DATA PRESENTATION

TABLE1
THE SUMMARY OF THE PERSONAL DATA
OF THE RESPONDENTS

47
 1 SEX FREQUENCY
Male 150
Female 50
Total 200
Angles
2 Marital Status suspended
Married 130 in degree
Single 70
Total 200

3 AGE
21-30 years 90
31-40 years 90
41-50 years 10
51-60 years 10
Total 200

4 HIGHER
EDUCATIONAL
QUALIFICATION
DIPLOMA 10 18
OND 30 54
HND 80 144
FIRST DEGREE 20 36
SECOND DEGREE 40 32
NIM 20 36
TOTAL 200 360

The marital statuses of the 200 respondents it is found that 130 of

them are married while 70 of them are single. For the ages of the

200 respondents they are 21-30 years, 31-40 years, 51-60 years with

frequency of 90 and 10 respectively. For the highest educational

qualification of the 200 respondents they are diploma, OND, HND,

First Degree, Second Degree, NIM. and they have frequencies of 10,

30, 80, 20, 40 and 20 respectively.

48
Figure 4.1 below shows the simple bar chart of the data on the sex of

the respondents.

FIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE

SEX OF THE RESPONDENTS

GENDER OF THE RESPONDENTS

160-

140-

120-

100-

80

60 --

40 -

20
-
0 -
MAIL FEMALE

TABLE 2. GENDER OF THE RESPONDENTS

Frequency percentage Valid Cumulative
Percent Percent
MAIL 150 75.0 75.0 75.0
FEMALE 50 25.0 25.0 100.0
Total 200 100.0 100.0

Source: from data in table 1 (generated from SPSS)

49
From figure 4.1 above, it is shown that male respondents have the

modal frequency of 150 of the 200 respondents while the female

respondents have the frequency of 50 of them.

Figure 4.2 below shows the simple bar chart of the data on the

marital statuses of the respondents.

FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON THE

MARITAL STATUSES OF THE RESPONDENTS

140 -

120 -

100 -

80 -
60 -
40 -
20 -
0 -
MARRIED SINGLE

TABLE 3. MARITAL STATUS OF THE RESPONDENTS

Status frequency Percentage Valid Cumulative

Percent Percent
MARRIED 130 65.0 65.0 65.0
SINGLE 70 35.0 35.0 100.0
Total 200 100.0 100.0

From figure 4.2 above, it is shown that the married respondents

have the modal frequency of 130 out of the 200 respondents while

the single respondents have the frequency of 70 of them.

50
 FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE AGES OF THE
RESPONDENTS.

AGES OF THE RESPONDENTS

100
80
60
40
20

Std. Dev = 78 Mean

= 1.7
0

N = 200.00
1.0 2.0 3.0 4.0

TABLE 4. AGES OF THE RESPONDENTS

Categories Frequency Percentage Valid Cumulative

Percent
Percentage
21 TO 30 90 45.0 45.0 45.0
YEARS
31 TO 40 90 45.0 45.0 90.0
YEARS
41 TO 50 10 5.0 5.0 95.0
YEARS
51 TO 60 10 5.0 5.0 100.0
YEARS
SOURCE: From the data in Table 1.
Total 200 100.0 100.0

From figure 4.3 above, it is shown that the age classes

limit are 20.5-30.5 years, 30.5-40.5 years, 40.5-50.5

years and 50.5-60.5 years with frequencies of 90, 90, 10,

51
and 10 out of 200 respectively. This shows that this is bi-

modal distribution as the age classes of 20.5-30.5 years

and 30. 5-40.5 years have a frequency of 10.

Figure 4.4 below shows the pie chart of the data on the

highest educational qualifications of the 200 respondents.

FIG.4.4 THE PIE CHART OF THE DATA ON THE HIGHEST

EDUCATIONAL QUALIFICATIONS OF THE 200
RESPONDENTS

OND DIPLOMA
FIRST DEGREE
10%
30% OND
SECOND DEGREE 20%

40%
HND
80%
SECOND DEGREE 20%

52
 TABLE 5. EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Educational Frequency Percentage Valid Cumulative
level Percentage Percentage
DIPLOMA 10 5.0 5.0 5.0

OND 30 15.0 15.0 20.0

HND 80 40.0 40.0 60.0

FIRST DEGREE 20 10.0 10.0 70.0

SECOND 40 20.0 20.0 90.0

DEGREE
NIM 20 10.0 10.0 100.0

Total 200 100.0 100.0

SOURCE: from the data in table 1.

From figure 4.4 above, the Highest Educational Qualifications are

Diploma, O.N.D, First Degree, Second Degree and NIM and the

53
 sustained angles in degree is equal to 180, 540, 1440, 360, 720 and

360 and respectively at the center of the circle.

4.3 CROSS-TABULATED ANALYSIS

Table bellows show the analysis of the statuses of the 200

respondents

TABLE 6. CROSS- TABULATION 1

DOES SALES PROMOTION INCLUDES THOSE
MARKETING ACTIVITIES OTHER THAN PERSONAL
SELLING?

NO
YES NO DON’T ANSWER Total
10
KNOW 2
19
2 91
DIPLOMA 6 2 2
OND 19 7 19
HND
FIRST
14 31 9
40
DEGREE - 10 39 21
SECOND 40 18 200
DEGREE 21
NIM
Total 100 43 39

39 39
The above table shows that the total of 100 respondents

(out of 200 said YES. this proved that sales promotion

does not other marketing activities other than personal

selling.

TABLE 7. Cross-tabulation 2

THE ROLE OF THE SALES PROMOTION IS TO COMMUNICATE

YES DON’T NO
WITH INDIVIDUALS, GROUPS OR ORGANISATIONS…….
NO KNOW Total
DIPLOMA 10
ANSWER 10

OND 19 19
HND 5414 30 47 91
FIRST
DEGREE 10 9 19
SECOND
DEGREE 40 40
NIM 21 21
Total 104 40 47 9 200
 The above table indicates that the role of the sales promotion is to

communicate with individuals, group or organizations to directly or indirectly

facilitate exchanges by informing and persuading one or more audiences to

accept an organisation’s products. 104 respondents out of 200 said yes.

While 40 did not agree with the fact.

4.4 HYPOTHESIS TESTING

In attempting to arrive at decisions about the population, on the

basis of sample information it is necessary to make assumptions or

guesses about the population parameter involved. Such an

assumption is called statistical hypothesis, which may or may not be

true. The procedure, which enables the researcher to design on the

basis, is sample regards whether a hypothesis is true or not is called

test of hypothesis or test of significance.

The null hypothesis asserts that there is no significant difference

between the statistics and the population parameters and what ever

is observed difference is there, is merely due to fluctuations in

sampling from the same population. Null hypothesis is thereby

denoted by the symbol H0. Any hypothesis, which contradicts the

H0, is called an alternate hypothesis and is denoted by the symbol

H1.
55
 The researcher used chi-square analysis.

CHI-SQUARE TEST

The c is one of the simplest and most widely used non-parametric

test in statistical work. It makes no assumptions about the

population being sampled. The quantity c describes the magnitude

of discrepancy between theory and observation i.e. with the help of

c test we can know whether a given discrepancy between theory

and observation can be attributed to chance or whether it results

from the inadequacy of the theory to fit the observed facts. If c is

zero, it means that the observed and expected frequencies

completely coincide. The greater the value of c the greater will be

the discrepancy between observed and expected frequencies.

The formula for computing chi-square is –

c =∑ (O-E)2/E

Where,O=Observed frequency

E=Expected or theoretical frequency

4.5 SOFTWARE USED FOR DATA ANALYSIS:

For the data analysis and the interpretation, the researcher has

adopted advanced version of SPSS (statistical package for social

science). This application software has facilitated the researcher to

construct the frequency table, various types of charts and to find

out the valid percentage responses from the sample. By this

56
automated data analysis it has minimized the researcher’s time

constraints and reduced human error and give also accurate outlay

of information.

Chi-Square Test (1)

DOES SALES PROMOTION INCLUDES THOSE MARKETING

ACTIVITIES OTHER THAN PERSONAL SELLING?
Observed Expected Residual Decision
F F
YES 100 50.0 50.0 Accept
NO 43 50.0 -7.0 Reject
DON’T
KNOW 39 50.0 -11.0 Reject
NO 50.0
ANSWER 18 -32.0 Reject
Total 200

Chi-Square Test (2)

THE ROLE OF THE SALES PROMOTION IS TO COMMUNICATE

WITH INDIVIDUAL, GROUPS OR ORGANISATIONS TO DIRECTLY OR
INDIRECTLY FACILITATE EXCHANGES BY INFORMING AND PERSUADING
ONE OR MORE AUDIENCE TO ACCEPT AN ORGANISTION’S PRODUCTS.

Observed Expected Residual Decision

F F
YES 104 50.0 54.0 Accept
NO 40 50.0 -10.0 Rejected
DON’T
KNOW 47 50.0 -3.0 Rejected
NO
ANSWER 9 50.0 -41.0 Rejected
Total 200

Residuals

The observed value of the dependent variable minus the value

predicated by the regression equation, for each case. Large

57
absolute values for the residuals indicate that the observed values

are very different from the predicted values.

SOURCE: From the questionnaires administered.

The formulated hypothesis that is subject to statistical test is at 5%

level of significance in testing hypothesis, the calculated value of

the test statistics is usually compared with tables of value. The

critical values of the test statistics serve as criterion value. It

afforded the basis for rejecting the null hypothesis is a function of

the value of the tested statistic.

Reject the null hypothesis if the calculated value of the test statistic

is greater than the critical value.

Accept the null hypothesis if the calculated value of the test statistic

is less than the critical value.

TEST STATISTICS

THE ROLE OF THE SALES

DOES SALES PROMOTION IS TO
COMMUNICATE
PROMOTION WITH INDIVIDUAL,
GROUPS OR
INCLUDES THOSE ORGANISATIONS TO
MARKETING DIRECTLY OR
INDIRECTLY FACILITATE
ACTIVITIES EXCHANGES BY INFORMING
AND PERSUADING ONE OR
OTHER THAN MORE AUDIENCE TO ACCEPT
AN ORGANISTION’S
PERSONAL PRODUCTS.

SELLING?
Chi-Square 73.880 94.120
df 3 3

note: df = degree of freedom

58
4.6 SUMMARY OF RESULT

Level of significance……….0.05

Critical value………………………43.0

Calculated value……………………73.880

From the above analysis, it could be seen that in the first test, does

sales promotion includes those marketing

activities other than personal selling, the calculated value is greater

than the critical value so we reject the hypothesis.

In the second test which state that the role of the sales promotion

is to communicate with individual, groups or organisations to

directly or indirectly facilitate exchanges by informing and

persuading one or more audience to accept an organistion’s

products , the level of significance is 0.05, the critical value is 44

while the calculated value from the test statistics table is 94.120.

Looking the data above, it shows very clear that the calculated

value is more greater than the critical value so we reject the

hypothesis.

59
 CHAPTER FIVE

FINDINGS, SUMMARY AND CONCLUSION

5.1 FINDINGS

Through this research, the researcher has been able to discover and

established the fact that:

Businesses can target sales promotions at three different

audiences: consumers, resellers, and the company's own sales

60
 force. Sales promotion acts as a competitive weapon by providing

an extra incentive for the target audience to purchase or support

one brand over another. It is particularly effective in spurring

product trial and unplanned purchases. Most marketers believe that

a given product or service has an established perceived price or

value, and they use sales promotion to change this price-value

relationship by increasing the value and/or lowering the price.

Compared to the other components of the marketing mix

(advertising, publicity, and personal selling), sales promotion

usually operates on a shorter time line, uses a more rational appeal,

returns a tangible or real value, fosters an immediate sale, and

contributes highly to profitability.

5.2 SUMMARY

Although sales promotion is an important strategy for producing

quick, short-term, positive results, it is not a cure for a bad product,

poor advertising, or an inferior sales team. After a consumer uses a

coupon for the initial purchase of a product, the product must then

take over and convince them to become repeat buyers. In addition,

sales promotion activities may bring several negative consequences,

including "clutter" due to the number of competitive promotions.

New approaches are promptly cloned by competitors, as each

marketer tries to be more creative, more attention getting, or more

effective in attracting the attention of consumers and the trade.

61
 Finally, consumers and resellers have learned how to milk the sales

promotion game. Consumers may wait to buy certain items knowing

that prices will eventually be reduced, for example, while resellers

have become experts at negotiating deals and manipulating

competitors against one another.

5.3 CONCLUSION

Sales Promotion Opportunities and Limitations

o Increase in sales by providing extra incentive to purchase.

May focus on resellers (push), consumers (pull) or both.
o Objectives must be consistent with promotional objectives and
overall company objectives.
o Balance between short term sales increase and long term

need for desired reputation and brand image.

o Attract customer traffic and maintain brand/company loyalty.

o Reminder functions-calendars, T Shirts, match books etc.

o Impulse purchases increased by displays

o Contests generate excitement esp. with high payoffs.

o Consumers may just wait for the incentives

o May diminish image of the firm, represent decline in the

product quality.

o Reduces profit margins, customers may stock up during the

promotion.

o Shift focus away from the product itself to secondary factors,

therefore no product differential advantage.

62
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hl=en&q=CAUSES+OF+UNEMPLOYMENT&meta=
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