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…[email protected]
+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.
ABSTRACT
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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
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
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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.
CHAPTER ONE
INTRODUCION
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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.
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
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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
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
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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?
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
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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 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
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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,
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
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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:
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
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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.
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.
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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
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
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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.
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.
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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
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
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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
2. Review of Related Literature
3. Research Methods and Producers
4. Data presentation and Analysis and
5. Summary, Findings, Conclusion and Recommendation.
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CHAPTER TWO
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:
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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
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
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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.
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.
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Target
Product Place Promotion Price
Mass Communication
or Direct Marketing
Personal Selling
Sales promotion
Publicity and Public Relation
Advertising
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.
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
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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.
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.
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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
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,
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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
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
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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.
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.
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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
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.
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The need or importance of promotion cannot be underestimated.
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
manager must reason on what percentage of the budget to
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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
develop informed and rational decisions about markets,
competitors and strategy. BMI is defined as the collection,
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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
strategy. (Susan Tyler Eastman, Douglas A. Ferguson and
Robert A. Klen (1999)
2.7 DEVELOPING PROMOTIONAL STRATEGIES
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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
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
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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
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.
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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.
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.
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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.
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.
32
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.
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.
33
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.
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.
34
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,
understand and deal or cope with new challenges future
oriented for success in global world.
CHAPTER THREE
RESEARCH METHODS AND PROCEDURES
35
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;
(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).
36
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
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
37
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.
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
38
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
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
39
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).
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
40
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.
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.
41
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.
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
(d) Stub or the designation of the rows and columns
42
(e) The body of the table.
(f) The head note or prefatory note or explanatory just
before the title;
(g) 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;
(i) A table ensure an easy location of the required figures;
(j) 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
43
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)
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
44
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
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
TABLE1THE SUMMARY OF THE PERSONAL DATA
OF THE RESPONDENTS
45
1
2
3
4
SEXMale
FemaleTotal
Marital StatusMarriedSingleTotal
AGE21-30 years31-40 years41-50 years51-60 years
Total
HIGHEREDUCATIONAL
QUALIFICATIONDIPLOMA
ONDHND
FIRST DEGREESECOND DEGREE
NIMTOTAL
FREQUENCY15050200
13070200
90901010200
103080204020200
Anglessuspendedin degree
1854144363236360
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.
Figure 4.1 below shows the simple bar chart of the data on the sex of
the respondents.
46
FIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE SEX OF THE RESPONDENTS
GENDER OF THE RESPONDENTS
TABLE 2. GENDER OF THE RESPONDENTS
Source: from data in table 1 (generated from SPSS)
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.
47
Frequency
percentage
Valid Percent
Cumulative Percent
MAIL 150 75.0 75.0 75.0FEMAL
E50 25.0 25.0 100.0
Total 200 100.0 100.0
160
140
120
100
80
60
40
20
0
-
-
-
-
-
-
-
-
-
MAIL FEMALE
FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON THE MARITAL STATUSES OF THE RESPONDENTS
TABLE 3. MARITAL STATUS OF THE RESPONDENTS
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.
FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE AGES OF THE RESPONDENTS.
AGES OF THE RESPONDENTS
48
Status frequency
Percentage
Valid Percent
Cumulative Percent
MARRIED 130 65.0 65.0 65.0SINGLE 70 35.0 35.0 100.0Total 200 100.0 100.0
140
120
100
80
60
40
20
0
-
-
-
-
-
-
-
-MARRIED SINGLE
020
4060
8010
0
TABLE 4. AGES OF THE RESPONDENTS
SOURCE: From the data in Table 1.
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, 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.
49
1.0 2.0 3.0 4.0
Std. Dev = 78 Mean = 1.7 N = 200.00
Categories
Frequency
Percentage
ValidPercentag
e
Cumulative Percent
21 TO 30YEARS
90 45.0 45.0 45.0
31 TO 40YEARS
90 45.0 45.0 90.0
41 TO 50YEARS
10 5.0 5.0 95.0
51 TO 60YEARS
10 5.0 5.0 100.0
Total 200 100.0 100.0
TABLE 5. EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
FIG.4.4 THE PIE CHART OF THE DATA ON THE HIGHEST EDUCATIONAL QUALIFICATIONS OF THE 200 RESPONDENTS
Educational level
Frequency Percentage Valid Percentage
Cumulative 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
50
30%
10%
20%
80%
20%
40%
SECOND DEGREE
OND DIPLOMA
FIRST DEGREE
OND
SECOND DEGREE
HND
SECOND DEGREE
40 20.0 20.0 90.0
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
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
51
TABLE 6. CROSS- TABULATION 1
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 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.
52
DIPLOMA OND HND
FIRST DEGREE SECOND DEGREE NIM
Total
DOES SALES PROMOTION INCLUDES THOSE MARKETING ACTIVITIES OTHER THAN PERSONAL
SELLING?
YES NO DON’T KNOW
NOANSWER
Total
61914
-4021100
2
3110
43
2
39
39
22
79
18
39
101991
19
4021200
39
DIPLOMA 10 10 OND 19 19 HND 14 30 47 91
FIRST DEGREE 10 9 19 SECOND DEGREE 40 40 NIM 21 21
Total 104 40 47 9 200
THE ROLE OF THE SALES PROMOTION IS TO COMMUNICATEWITH INDIVIDUALS, GROUPS OR ORGANISATIONS…….
YES NODON’TKNOW
NOANSWER Total
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.
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 53
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
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
F
ExpectedF
Residual Decision
54
YESNO DON’TKNOW NOANSWERTotal
10043
39
18 200
50.050.0
50.050.0
50.0 -7.0
-11.0
-32.0
AcceptReject
Reject
Reject
Chi-Square Test (2)
THE ROLE OF THE SALES PROMOTION IS TO COMMUNICATEWITH INDIVIDUAL, GROUPS OR ORGANISATIONS TO DIRECTLY OR
INDIRECTLY FACILITATE EXCHANGES BY INFORMING AND PERSUADING ONE OR MORE AUDIENCE TO ACCEPT AN ORGANISTION’S PRODUCTS.
Residuals
The observed value of the dependent variable minus the value
predicated by the regression equation, for each case. Large
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
55
Observed
F
ExpectedF
Residual Decision
YESNO DON’TKNOW NOANSWERTotal
10440
47 9 200
50.050.0
50.0
50.0
54.0 -10.0
-3.0
-41.0
AcceptRejected
Rejected
Rejected
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
note: df = degree of freedom
4.6 SUMMARY OF RESULT
Level of significance……….0.05
Critical value………………………43.0
Calculated value……………………73.880
56
DOES SALES PROMOTION
INCLUDES THOSE MARKETING
ACTIVITIES OTHER THAN PERSONAL
SELLING?
THE ROLE OF THE SALES PROMOTION IS TO COMMUNICATEWITH INDIVIDUAL, GROUPS OR ORGANISATIONS TO DIRECTLY OR
INDIRECTLY FACILITATE EXCHANGES BY INFORMING
AND PERSUADING ONE OR MORE AUDIENCE TO ACCEPT AN ORGANISTION’S PRODUCTS.
Chi-Squaredf
73.880 3
94.120 3
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.
57
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 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
58
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. 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 Limitationso 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.
59
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.
60
REFFERENCES
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]http://www.google.ca/search?
hl=en&q=CAUSES+OF+UNEMPLOYMENT&meta=
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Consequences-Unemployment.html">Unemployment - Consequences Of
Unemployment</a>
http://goliath.ecnext.com/coms2/gi_0199-4732102/Employment-in-
Nigeria-Brief-Article.html
http://www.photius.com/countries/nigeria/economy/
nigeria_economy_unemployment.html
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