IMPACT OF SALES PROMOTION IN A BUSINESS ORGANISATION
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IMPACT OF SALES PROMOTION IN A BUSINESS ORGANISATION
ABSTRACT
Despite the availability of numerical sales promotion tactics for many organisations, it is vital to note that many organisations have yet to understand how to properly and efficiently use these sales promotion techniques in order to improve their organization’s performance.
The goal of this study is to look into the influence of sales promotion in a commercial organisation, namely Nigeria Bottling Company Plc.
The method employed is a survey approach, which allows for primary data-questionnaires, and the sampling methodology used is simple random sampling, in which all members of the population have an equal and independent chance of being selected.
The chi-square approach is used to test the hypothesis and investigate the impact of sales promotions on organisational performance. Throughout the findings, the majority of respondents acknowledged that sales promotion has an impact on organisational performance and sales volume.
Finally, effective use of sales promotional techniques results in increased sales volume and, unsurprisingly, larger profitability. It is recommended that organisations capitalise on the Christmas season by designing an effective and efficient sales marketing strategy that can raise consumer awareness, resulting in increased product purchases.Chapter one
INTRODUCTION
1.0 Background of the Study
The country’s economic position in both the previous and current years has had an impact on the financial and commercial activities of business organisations as a whole, resulting in lower levels of sales and profitability.
Given these facts, many business organisations engage in various types of measures, such as sales promotion, in order to increase their sales and remain in business, as there is no doubt that most business objectives will not be met without adequate sales promotion.
Business organisations have had firsthand knowledge of their surroundings, customers, and markets for decades or more. The reason for this is that the environment and the business organisation were modest.
However, with the increasing complexity of the business environment and a methodical approach to examining the increased management difficulties, it is even more vital that the environment be researched.
It is evident that the primary purpose of management is decision-making, and marketing decisions appear to be the most complex, with consequences felt throughout the firm.
With increasing demand, individuals and organisations must bridge the gap between producers and customers or product users. Organisations must also do research into these groups’ developing demands.
Furthermore, because the organization’s primary goal is to maintain market share, awareness must be raised in order to enhance sales and productivity. As a result, there is a critical need to understand the influence of sales promotion in commercial organisations.
Due to enterprises’ increased acceptance of sales promotion as a critical component of the promotional mix, as well as its increasing expense, it has become critical to investigate if sales promotion is actually having an influence on sales volume. This research particularly studies the influence of sales promotion on product sales volume, with a focus on Chi Group Limited.
1.2 Statement of the Problem
Despite the strict definition of sales promotion as an essential means of raising awareness of the product’s existence and characteristics, as well as the positive,
psychological associations that can increase buyer satisfaction and add to the true value of the company’s offering, many business organisations in the country pay little attention to it and rarely promote their sales to the fullest.
Many businesses overlook sales marketing because they believe they can sell their products with little or no promotional activity. Similarly, many businesses could not afford the high costs associated with promotional campaigns,
and despite the benefits of sales promotion, there had been minimal research and decision modelling dedicated to it. Furthermore, many businesses have a poor opinion of the cost of business promotion, particularly when the results are not instant.
Furthermore, adequate sales and promotional cost records are always neglected, and some sales promotion programmes are introduced at the wrong time, reducing the firm’s level of sales and profitability and making sales promotions less important in the community and the country as a whole.
1.3 Aim and Objectives of the Study
The purpose of this research is to investigate the influence of sales promotion in commercial organisations, with a focus on Nigerian Bottling Company Plc. The research work has the following objectives:
· Determine the optimal combination of promotional methods for effective promotion.
· Determine the effectiveness of sales promotion.
· Analyse consumer behaviour to understand the rationale for sales promotions.
· To identify problems for sales promotion.
· Determine how sales promotions influence purchasing behaviour.
· Determine how long the company has been conducting sales promotions.
· Determine the company’s media channels for promoting sales.
1.4 RESEARCH QUESTION.
This project aims to investigate and answer the following questions.
· Does Sales Promotion have a substantial impact on organisational performance?
· Do sales promotions influence customer purchasing behaviour?
· Do sales promotions actually assist consumers?
· What are the repercussions of defective sales promotions?
organisation?
· What are the key variables influencing sales promotion?
1.5 Statement of Hypothesis
To provide answers to the research questions raised by this study, the following hypotheses are proposed.
Hypothesis one.
H0: There is no substantial correlation between sales promotion and organisational performance.
H1: There is a strong link between sales promotion and organisational performance.
Hypothesis two
H0: Sales advertising has no influence on customer purchasing behaviour.
H1: Sales promotions influence customer purchase behaviour.
1.6 Research Methodology
Research methodology refers to the procedure employed by the researcher to conduct the study. It describes the many actions and procedures used by the researcher in the study.
This research will employ both primary and secondary data gathering methods to collect the essential data. The key data collection methods will be as follows:
1. Structured Questionnaire
2. Personal, unstructured interview.
3. Observation
Secondary data will be acquired from company reports and papers. In addition, reports from outside the company, as well as library and desk research literature, will be employed.
In this study, data will be analysed using the descriptive approach, and chi-square (X2) will be utilised to test hypotheses. The findings of this research study will be addressed in light of the research problem hypothesis, purpose research questions, the research literature, and other pertinent concerns. Conclusions will be drawn, along with proposals and suggestions.
1.7 Scope and Limitations of the Study
This study looks on the effectiveness of the sales marketing tactics used by Nigerian Bottling Company, Alausa, Lagos.
The following are expected to be barriers to the effective conduct of this research effort.
a) The time frame within which the investigation must be finished.
b) Financial constraints.
c) Inaccessible and inadequate data.
d) Combining project work with other activities is another difficult chore that may limit my ability to thoroughly cover research materials.
Nonetheless, I feel that the restrictions listed above will have no bearing on the research study’s reliability or validity.
1.8 Significance of the Study
Sales promotion has a significant impact on commercial organisations. The purpose of this study is to investigate the extent to which sales marketing has an impact on commercial organisations.Because of the importance of sales promotion, this study will be valuable in improving business performance and determining how to increase sales and profitability.
This effort will be extremely valuable to future researchers who may like to conduct research on this specific topic. It will also serve to emphasise how those who plan to start their own businesses in the future can do so effectively.
1.9 Historical Background of the Study
Nigerian Bottling firm Plc is a marketing firm that specialises in the production of soft drinks, with Coca-Cola dominating their product line.
The reverend Chief A.G. Leventis established the Nigerian Bottling Company in Nigeria in 1951. From humble beginnings in 1951 and under inspired leadership, the company has grown to become Nigeria’s largest soft drinks bottler and one of the country’s largest employers,
operating approximately 20 production plants and 65 sales depots across the Federation of Nigeria, with its administrative headquarters in Oyingbo, Lagos State, formerly in Iddo, Lagos State.
The Nigerian Bottling Company is a well-known titan among first-class bottling companies, and it is also regarded to have the same status in all states of the country.
Because of its exceptional success over the years, there is no doubt that its operational characteristics will provide useful information to other comparable organisations.
It suffices to note that the organisation offers a variety of career chances to school graduates and professionals in the fields of commerce and marketing. Given that sales promotion programmes are still in their early stages in Nigeria and are only being adopted by larger-scale ventures,
the Nigerian Bottling Company–specifically Coca-Cola–has been recognised for their participation in promotional activities, which has increased their level of sales and profitability.
There is no doubt, however, that the corporation tinder consideration with its own qualities and present a solid spotlight of the impact of sales promotion in commercial organisations both in the short and long term.
1.10 Organisation of the Study
The product will be separated into four chapters.
The first chapter will discuss the introduction, background of the study, problem, purpose and objectives, scope and limitations of the investigation, significance of the study, research question hypothesis, and study organisation.
The second chapter will provide a review of the literature. Subheadings for areas to be reviewed, appraisals, associated literature, and research questions.
The third chapter describes the technique utilised to conduct the research.
Chapter four critically evaluates the results of the research, while chapter five deals with the discussion of the finding, summary, conclusion, recommendation, and lastly the bibliography and appendices.
1.11 Definition of the Basic Terms
The terms to be operationally defined are:
SALES PROMOTION: Sales promotion is a broad term that refers to specific types of sales-accelerating activities that are not always classified as advertising or direct selling.
BUSINESS: Business is simply defined as the entirety of all economic operations carried out in the process of manufacturing and selling goods and services for profit.
ORGANISATION: Robine (1987) defines an organisation as a consciously organised social unit with a generally discernible border that operates on a relatively continuous basis to achieve a common purpose or set of goals.
An advertisement is any paid type of non-personnel presentation and production of ideas, goods, or services by an acknowledged sponsor.
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