Effect Of Sales Promotion On The Marketing Of Consumer Goods

Project and Seminar material for Public Administration

Project and Seminar material for Public Administration


Abstract


This research is on the effect of sales promotion on the marketing of consumer goods with reference on Nigerian bottling company Plc Enugu. The problem being investigated are as follows: the effect of sales promotion on consumer goods. The vates at which consumers demand increase/ decrease after sales promotion effects of sales promotion on sales and profit after campaign.

The method used in collecting data were primary and secondary.

Secondary data were collected form journals magazines newspaper and text books.

The analytical method was chi-square (x2) is reach significant testing conclusion on the effects of sales promotion on the marketing of consumer good in Nigeria sales promotion has been found to boost the profit margin of the industries.


Chapter One


Introduction

1.1 Background Of The Study

Sales promotion is an indirect form of marketing promotion inserted to stimulate quick action. As competition between business organizations go up it became imperative to turn attention to consumer needs and wants which one naturally insatiable sales promotion arose to challenge all other marketing activities like personal selling advertising and publicity that stimulate consumer purchasing and dealer attentive ness such as show exhibition coupon contents samples premiums etc are usually short term in nature.

Several authors have stated that need for all business entities to adopt sales promotion until they driven to it by circumstance like sales decline slow growth changes of buying pattern by customer and in measuring competition since profit is a vital requirement of business it is conventional to regard it as first control purpose.

According to Kinner and Beehardt (1985) sales promotion is intended to aid both consumer pull and dealer push. They thus categorized common sales promotion techniques in terms of their consumer forces.

Consumer pull promotion techniques are such activities like sampling price incentive or deal sent off offer refund or rebate contest premium like freeze in pack free in mails self liquidator and resalable containers . while trade push promotions to cheques are such activities like money bonus gifts etc. sales promotion handles middle group between advertising and personal selling. It is usually not directed al large advice as advertising but it is directed at much larger effort.

In recent years sales promotion has grown so rapidly it is this rapid increase therefore that the world economic like Nigeria are in down-turns which has called the attention of the researcher to reach and found out it effects on marketing emphasis on the Nigerian bottling company Plc Enugu the brewer of coke sprite fanta and lemon.


1.2 Statement Of Problem

  1. Coca-cola though world renowned multinational company with impressive advertisement profit however the product had not benefited the looks and economies of the Nigeria market.
  2. The quality of the product notwithstanding the competitors through personal selling had been improving in their share of the market.
  3. Nigeria bottling company had been giving free gifts to their customers for promotional purpose but consumer not withstanding still demand the soft drink of heaper prices.
  4. Nigeria bottling company paint the shops of the customers that not withstanding their competitors less impressive promotional efforts were able to self the products in the same shop.

1.3 Purpose Of The Study

As sales promotion activities sales consumer goods in Nigeria has expanded rapidly in recent time. The researcher carried out the study on the Nigeria bottling company Plc with the view of finding out the effects which sales promotion has on their profit and sales before promotion during and after promotion.

Purpose of the study can be seen in the following perspectives.

  1. What are the effect of sales promotion on marketing of consumer goods with emphasis on Nigeria bottling company Plc Enugu
  2. The effect sales of promotion on profit and sales of Nigeria bottling company Plc.
  3. The effect of sales promotion on the demand of consumers
  4. Acceptability of sales promotion and marketing strategy by the consumer

1.4 Scope Of The Study

The scope of this very wide if it has to be carried out in the entire Nigerian bottling company.

This study is therefore limited to Enugu the research work was carried out at the premises of the Nigerian bottling company Plc Enugu

The marketing manager who of course knows the work schedules took the researcher over to the sales manager who also sacrifices his working hours to lecture me on the activity of consumer good. This research work is based on the findings at Nigerian bottling company Plc Enugu department.


1.5 Research Questions

  1. What plan/procedure/strategy does Nigeria bottling company use in marketing of consumer goods?
  2. Are there any militating tenor hindering the strategy used by Nigeria bottling company Plc.
  3. Does Nigerian bottling company Plc promotional strategy for marketing of their goods form with its goods?
  4. Are there any relationship between sales promotion and consumer demand

1.6 Research Hypothesis

It is in consideration of the problem stated above and the objectives of the study enumerated that the researcher propounded the following hypothesis.

  1. Hi: Sales promotion has a positive effects on the profit and sales of industries
    Hi: There is significant relationship between sales promotion and consumers demand
  2. Ho: Sales promotion does not have a positive effects on the profit and sales of industries
    Hi: There is no significant relationship between sales promotion and consumers demand

1.7 Significance Of The Study

The researcher is of the opinion that this study on the effect of sales promotion on the marketing of good will be of immense benefit to the following.

  1. Manufacturing companies and the various arms of the intermediaries for instance the issue varied in the research work and recommendations made will assist the management of the manufacturing companies identify their respective problem areas and consequently measures to rectifying them
  2. Government this study will enable the appropriate government agency/ministry changed with overseeing company matters to make policies that will have for reaching impact on the activities of manufacturing company in Nigeria. This will ensure simplify in their operation and still uphold the ethics of the profession.
  3. Public having explained the activities of manufacturing company in sales promotion on marketing of consumer goods in the country and the inherent benefit of their services will motivate them to take advent age of the benefit provided by the company in the market.

1.8 Definition Of Terms

Franchise:

It is formal permission given to a company that wants to sell to goods or services in a particular area.

Promotion:

A number of people or things taken from a larger group an used in test to provide information about the group

Incentives:

Something that encourages somebody to do something.


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