The Influence Of Sale Promotion On Employees Performance In An Organization (A Case Studies Of Some Banks)

Project and Seminar Material for Marketing

The Influence Of Sale Promotion On Employees Performance In An Organization (A Case Studies Of Some Banks)


The study examined the influences of sales promotion of an employee in an organization. The research problem involves an investigation of the extent of which sales promotion influences an employee performances.

The extant literatures were reviewed, directly look at inducing retailers, consumers and sales persons by offering incentives or adding value for a product of interest, sales promotion encompass all promotional activities and materials excluding personal selling, adverting and public relations and publicity.

The method of analysis used in this research include descriptive analysis and non­parametric statistical methods, such as percentages, chi-square test (X2) spear man rank order correlation were logically tested and interpreted with the support of most relevant questions inthe table accepted.

The result of the findings indicate that there is a significant relationship between sales promotion and sales performance and overall growth of the organization.

In conclusion, it was recommended that for any companies to-break even or make profits, such organization must intensify efforts on promotional activities achieve high sales.

Chapter One


1.1 Background of the Study

Sales promotion is important in marketing as away of increasing the demand for products or services. It is a substitute for price competition and as a way of differentiating similar products or services, Achumba (2000). Sales promotion is used frequently to improve the effectiveness of other promotional mix elements, especially advertising and personal selling.

Sales promotion along with advertising and salesmanship are the major techniques used in merchandising products/services to the public. Within the banking arena, sales promotion can be sued as an incentive to encourage potential and current customers to patronize different services/products offered by the banks.

Sales promotion is not only applicable in the product sector but equally useful in the service sector and the banking sector is no exception. Sales promotion is important, considering the ever increasing competitive banking atmosphere where “aggressive marketing strategy” is the order of the day.

Sales promotion devices are usually irregular. They make valuable contributions to marketing effectiveness by supporting advertising, personal selling and public relations activities and thereby increasing sales volume.

It’s often attracting brand switchers, who are primarily looking for low price, good vale or premiums. This is commonly seen in banks because of the competitive banking arena where banks have in their marketing strategy a policy attracting and retaining their customers.

Sales promotion are all around us as we are constantly faced with coupons, sweepstakes and prize-cuts that try to make products ever more appealing and induce us to make a purchase. These promotions can have dramatic effects. Firms’ sales promotions have been on a steady increase over the last decade, while a advertising expenditures have Shrunk by almost half. Tellis (1998) noted that sales promotion is any time bound program of a seller that tries to make an offer more attractive to buyers and requires their participation in the form of an immediate purchase or some other action.

Particular emphasis is laid on three (3) key banks relevant to the case study. The banks include: Access Bank PLC, Zenith Bank Plc and Standard Trust Banks, now United Bank for Africa Plc. The banks were used in analyzing the impact of sales promotion as a marketing strategy.

1.2 Statement of the Problem

Sales promotion ash been defined as short term incentives to stimulate selective demand for a product or brand. Thus, it is one of the promotional mix tools employed by an organization to boost or enhance sales of a rand.

Thus, the major problem of this research study is to find out the impacts or influences of sales promotion on the performances of employees on an organization.

Moreso, another problem of the study is to know whether sales promotion have effects on both the short term and long term performances of an organization.

1.3 Objectives of the Study

  1. To find out whether sales promotional activities as a marketing strategy can improve the banks performance in terms of customer base.
  2. To find out the best sales promotional tools as a marketing strategy relevant in the banks.
  3. To find out whether a sales promotional action can be sustained for a long time as a marketing strategy in the three selected banks.
  4. To effectively make recommendations on findings.

1.4 Research Question

  1. What are the best sales promotional tool (s) used as a marketing strategy in the case study?
  2. What are the objectives of sales promotion in the three (3) case studies?
  3. Are the sales promotional tools used currently in the three (3) case studies improving the level of sales and actualizing the marketing objective desired?

1.5 Research Hypotheses

  1. H0: Sales promotion does not improve sales/customer patronage.
    Hi: Sales promotion improve sale/customer patronage
  2. H0: Sale promotional efficiency does not result in improved profitability.
    Hi: Sales promotional efficiency result in improved profitability.

1.6 Scope of the Study

This research work will be limited to the :impact of sales promotion as a marketing strategy, case study of three (3) selected banks (Access Bank Plc, Zenith Bank Plc and United Bank for Africa Plc)

1.7 Significance of the Study

This research will be of great value to the management, personnel of rims within and outside the industry. It will assist them to determine the most effective sales promotional tools for not only the sake of improving customer patronage but also to improve on the level of profitability within the industry.

Additionally, this work will be immense value to student who are interested in carrying out research on related topics as far as the issue under investigation is concerned.

1.8 Plan of the Study

The research will cover key participants in decision making in the respective banks. Here both primary and secondary data will be used. The primary source of data will constitute responses form questionnaire to be administered while secondary data is to be obtained through available material, relevant literature text books and other secondary data.

1.9 Operational Definition of Terms


Promotion an element in the marketing mix (4Ps of marketing) is a set of marketing activity designed to boost sales condition. Within promotion there exist promotional mix such as:

Advertising, personal selling sales promotion, publicity and public relations.

Sales promotion:

This is a program that makes a firm’s offer more attractive to buyers and require buyer’s participation.


The term product is sued generally to refer to any good, service, idea, time or candidate that an individual or organization offers to another individual or organization.


Advertising is the act of communicating a firm’s offer to customers by paid media, time or space.


Coupons are certificates entitling the bearer to a stated saving on the purchase of specific product.

Price cuts:

This is also called prize off deals. They are offers to consumers of saving off the regular prize of a product, a flagged on the label or package.

Chapter Five

Summary of Findings, Conclusion and Recommendation

5.1 Summary of Findings

The comprehensive summary of findings in this chapter is based on the analysis of data collected in the previous chapter, which highlighted the effect of promotional strategies in the overall performance of the banking sectors with special reference to Zenith Bank, United Bank for African Plc and Access Bank Plc. The conclusion were drawn based on deductions arrived at through the analysis of the questionnaires. It must be pointed out that personal discussions with respondents became inevitable at some points which although did not change result but helped to broaden and butters issues which otherwise were restricted by the questions.

This research work has been able to identify that promotional strategies have positive impact on sales and profit of the three banks that were used as the case study, such as Zenith Bank United Bank for Africa Plc and Access Bank Limited. It also confirmed that promotion is an essential marketing strategy and ingredient to structure sales and profit promotional strategy is also a strategy embarked upon to strongly fight completion and the type of strategy employed enables the company to have an edge and advantage over its numerous competitors.

The finding of this study are summarized as follows: The table above reveals that 39 of the male respondents, which is 32.5%strongly agreed that sales promotion as a marketing strategy Improve sales/customer patronage, while 30.8%of the male respondents agreed with that, 17.50/0 were undecided and finally 19.2% of the respondent disagreed with the opinion, while none of the male respondents strongly disagreed.

Also table 4.9 above indicates that 17 of the male respondents i.e. (14.2%) agreed that sales promotional efficiency results in improved profitability banks, while 24 of the male respondents i.e. (20%) agreed with that, 21 (17.5%) were undecided while 38 (31.6%) disagreed, and 20 (16.7%) strongly disagreed with that Table 4.10 above also shows that 22 respondents which were (18.3%) strongly agreed that sales promotion has positive impacts on the growth of an organization, while 18 (15%) were undecided, 22(18.3%) disagreed and 20 (16.7%), strongly disagreed with the opinion.

5.2 Conclusions

Based on the findings of this research study summarized above, it is obvious and can be concluded that promotional activities play a significant role in achieving high sales and the overall objectives of a company.

The promotional strategies employed by some of these banks have helped the company to achieve its promotional objectives. These are information dissemination stimulation of demand, product differentiation and increased sales and large market share. This has made positive impact on the sales, profit and overall performance of the company.

For promotional programmes to be successful the media to be employed should be carefully chosen such that the objective of reaching the target audience is achieved. Also the promotional mix should carefully select to achieve high sales volume and profit which are the ultimate goals of the organizations.

5.3 Recommendations

Based on the data analyzed, summary of findings and conclusions draw above, the following recommendations are hereby proposed.

It is important to note that each types of promotional mix, that is, advertisement, sales promotion, personal selling and public relations serve different functions and therefore complement one another.

Advertisement, for example, appeal to a large audience, and create awareness. Without this, personal selling efforts will be much difficult, time consuming and expensive. Publicity and public relations provides credible information to a wide audience, but the company cannot control its content and timing.

It is therefore recommended that companies should intensify efforts on promotional activities to achieve high sales. Personal selling should be emphasized because it encourages face to face encounter with the consumers, and it is bringing the much¬advertised products to the consumer to purchase.

A sales promotion, which is not very costly and highly effective, should be used more often to customers. This will increase patronage especially during seasonal periods and sports competitions Companies should also know that engaging in promotional activities is always the starting point of brand loyalty, and success is enhanced by a unique proper selection of communication and correct timing.

Organizations should also perform their social responsibility duties, by being highly involved in sponsoring programmes and government projects. By doing this, the companies will be enjoying good relations with the general public.

5.4 Suggestions for Further Studies

Based on the summary of findings, conclusion and recommendations of this research study; the researcher would like to make some suggestions for further research.

Promotional strategy consist of four basic promotional tools, i.e. advertising, sales promotion, personal selling public relations and publicity, which serve different functions and compliment in promoting goods and services. Personal selling is most of the time, completely ignored or over-looked by companies and organizations.

This may be because it is quite expensive to embark upon, and the importance of it as a promotional tool has not been properly understood. There are of course, more benefits to be derived by companies engaging in face-to-face sales of their product and services.

Future researchers should therefore venture into carrying further research into these promotional tools, so that companies and organization can understand it.

Another area of recommendation for further research is in the area of social responsibility of companies. In as much as a promotional activity of companies is articulated to boost sales as well as reward customers, it should not be misunderstood as social responsibilities of the companies.

Social responsibility is a much different thing from promotional activities. Companies owe it a duty to be socially responsible to be environment in which it is situated.

Researches should be carried out on social responsibility so that companies will recognize the fact they are answerable to the public and the environment in which they carry on their daily business.

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