The Effects Of Sales Promotion On Consumer Buying Decision

Project and Seminar Material for Marketing

The Effects Of Sales Promotion On Consumer Buying Decision


Abstract


This research was under taken to elicit the effect of sales promotion on consumer buying decision using Coca-Cola Bottling Company as a case study. The main objective of this study is to know how sales promotion have helped in consumer buying decision and to also know it have succeeded in increasing the buying and drinking habit of Coca-Cola products. In this case the survey method was used in collecting data and this method permitted to survey the respondents at their own convenience, with questionnaire administered to them, it was found out the competition, free sample, sweep takes or demonstration were the effective tools in mobilizing and securing consumer active participation and interest in sales promotion on brand product and services conclusion one can say the form all our findings, competitive sales promotion do not move brand loyal to change their brand, sales promotional competition most especially sales promotion and sweep takes are goods marketing tool if the objective is to yield faster and measurable responses in sale of brand, product or service it was therefore recommended that as companies move from transaction oriented view of their customer to a relationship building one companies have to develop strategies which will be aimed at keeping their customers to remain loyal probably through creating and sponsoring quality programmed games and so forth.


Chapter One


Introduction

1.1 Background To The Study

Sales promotion is one to the promotional mix variable which forms the basic of all marketing and promotional activities.

The rapid growth of sales promotion is due to the fact that product managers are faced with greater pressure to increase their current sales and sales promotion as viewer as an effective short-term sales tools. Again product manager faces more competition and competing brands are les differentiated increase, managers use sales promotion to differentiate their offer, more ever, sales promotion help to complement advertising efficiency which has been on decide as result of using cost media clutter and legal resents. It is used in combination with other promotional tools.

In other words, it is viewed as paling a secondary role to the major tools of advertising and personal selling.


1.2 Statement Of Problem

The main concern of this study is to review the effect of a company sales promotions method on the sales of product in the market. Basically the main issue is to know the extent to which promotion efforts has led to increase in sales volume and profitability.


1.3 Research Question

  1. Which sales promotion tools are implemented on soft drink procedure?
  2. Which of the sales promotion tools consumer react more favourable to consumer?
  3. What effect does sales promotion has on consumer buying decision?

1.4 Objective Of The Study

The aim of the study of sales promotion effectiveness and the care of sales promotion demand, the study are:

  1. To evaluate the success of sales promotion tools implemented on soft drink procedure
  2. To find out which of the sales promotion tools consumer react more favourable to consumer
  3. To measure the effect of sales promotion on consumer buying decision

1.5 Research Hypothesis

For the purpose of this study the following hypothesis are hereby proposed.

Hypothesis I
  • Ho: Sales promotion programme does not enhance consumer buying decision
  • Hi: Sales promotion programme enhances consumer buying decision
Hypothesis II
  • Ho: The price of the product does not determine consumer level of participation in sales promotion programme
  • Hi: The price of the product determine consumer level of participation in sales promotion programme
Hypothesis III
  • Ho: Sales promotion has no positive effect on the profit level of the organization
  • Hi: Sales promotion has positive effect on the profit level of the organization
Hypothesis IV
  • Ho: The timing of sales promotion has no effect on the level of sales
  • Hi: The timing of sales promotion has effect on the level of sales.

1.6 Significance Of The Study

This research work shall be beneficial to all organization in Nigeria and to the coca-cola company Nigeria PLC in particular it is desired that the finding of this study will help to throw more light on the need for or effect of sale promotional on consumer buying decision.

The purpose of the study is also to stimulate increase in the use of sales promotion as an effective instrument for influencing consumer buying decision event if they do not win the promotion.

It will also help the top management of the coca-cola company and their executive in acquiring good understanding of sales promotion instrument that will be of great important in achieving their marketing goals and also to increase its markets share without necessary investing million of naira on dales promotion and advertising.

This study shall forward help to serve the dual purpose highlighting where is having problem or not doing well.


1.7 Scope Of The Study

This research study shall cover sales promotional tools and how those tools can be used to influence consumer buying decision various consumer sales promotional tools shall be looked into sample, coupon, price package naira off, premium, and contest e.t.c more over, the study will be confined to the case study which is coca-cola company Nigeria PLC.

In conducting this research study, information will be collected from the state in the marketing department of the coca-cola company Nigeria PLC and consumers that use the company product.


1.8 Limitation Of The Study

In the course of writing this project work, the researcher encounter some problem which militates, one of which was the time constraint the time allocated to this work was taken over by the demand to meet other academic activities.

Another problem was the financial requirement of the research work couple with the limited financial serves as a limiting factors.

Furthermore top management of coca-coal company Nigeria PLC were not ready to part with confidential data they have on the research topic.


1.9 Operation Definition Of Terms

Consumer:

One who buy and use goods or services to satisfy personal or household need or want. And also may be for the use of business, institution or industrial operation.

Consumer good:

Goods defined for use by ultimate customer or household in such form or way that they can be used without commercial processing

Sale promotion:

May be described as a short term wide variety of promotional tools designed to stimulate stronger market respond se and ti usually accompanied with an incentive.

Promotional tools:

These are in various techniques or strategies used to include customers purchasing and demand effectiveness.

Pull strategy:

These are marketing advertising and also promotional activities aimed at trial purchase and repurchase by customer.

Push strategy:

Marketing advertising and sales promotion activities aimed at getting product into the dealers.

Pipe line and increase sales by offering inducement of dealer, reetailt3r and sales promotion inducement might included introductory, price allowance, distribution allowance and advertising allowance stock the product and set up display.

Marketing:

Marketing is total system of business activities designed to plan, price , promote and distribution want satisfying product and services to potential customers.

Advertising:

Is a non personal form of presentation of idea goods and services paid for by an identified sponsor.

Respondents:

Person who gives out answers to a question in survey when liner by personal interviews questionnaire or telephone interview.

Substitutes:

These are product that can be used in essence of the other because they serve the same purchase.

Production:

Is anything which can b e ideal goods services event that can be offered to the market for attention acquisition for use or consumption.


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