Sales Promotion and Its Effects on Organizational Effectiveness in Nigerian Manufacturing Industry
Sales Promotion and Its Effects on Organizational Effectiveness in Nigerian Manufacturing Industry
Abstract of Sales Promotion and Its Effects on Organizational Effectiveness in Nigerian Manufacturing Industry
This study examines sales promotion and its effects on organizational effectiveness in Nigerian manufacturing industry. The study focuses on how sales promotion is used to generate higher sales, increased profitability and greater market share. The study focused on sales promotional tools and how NESTLE Nigeria Plc has adopted sales promotion to generate its effectiveness.
Sales promotion is an important component of any organization’s overall marketing strategies alongside advertising, public relations, and personal selling. The study is significant because, it will contribute to new knowledge by filling and reducing the gap that exist in the understanding of sales promotion by management and other stakeholders in the manufacturing sector. It will also serve as a source of reference to other researchers in this field. A descriptive survey research design was applied to describe sale promotion activities of the organization. The sample size employed was 205 respondents from NESTLE Food Nigeria Plc. Questionnaires were administered to the sampled respondents to collect primary data used for this study. However, the study made use of survey design and purposive sampling technique in selecting the respondents comprising management and staff of NESTLE Nigeria Plc.
The result of the study indicated that the beverage drink companies increasingly make use of sales promotions. Chi-square independence test was used to test the hypotheses stated. The results show that adoption of sales promotion strategies significantly influence the effectiveness of beverage drink industry. It was concluded that management may engage regularly in more promotional mix strategies, and also tend to be creative to consumers; this in turn would enhance and boost their sales revenue.
Chapter One of Sales Promotion and Its Effects on Organizational Effectiveness in Nigerian Manufacturing Industry
Introduction
Modern marketing calls for more than developing a good product, pricing it attractively and making it accessible. Companies and individuals must also communicate with present and potential stakeholders, and the general public. For most companies and individuals, the question is not whether to communicate but rather what to say, how to say it, to whom and how often. But communication gets harder and harder as more and more companies clamour to grab the consumer’s increasingly divided attention. To reach target markets and build brand equity, holistic marketers are creatively employing multiple form of promotions.
In Nigeria over the years, companies and individual service providers have been trying to improve on the creativity in their promotion so as to meet world standard and again create the necessary awareness that a product needs.
Background of the Study
Promotion is a form of communication intended to persuade its viewers, readers or listeners to take some actions. It usually includes the name of a product or service and how that product or service could benefit the consumer, by persuading potential consumers and customers to purchase or to consume that particular brand. Modern promotion developed with the rise of mass production and increased competition in the late 19th and early 20th centuries.
Promotion could also be seen as an element of a marketing communications program. It is usually not the only one, or even the most important one, in terms of building brand equity. The promotion communication mix consists of six major modes of communication.
1. Advertising: Any paid form of non personal presentation and promotion of idea, goods or services by an identified sponsor.
2. Sales promotion: A variety of short term incentives to encourage trial or purchase of a product or service.
3. Events and Experiences: Company sponsored activities and programs designed to create daily or special brand-related interactions.
4. Public Relation and Publicity: A variety of programs designed to promote or protect a company’s image or its individual products.
5. Direct Marketing: Use of mail, telephone, fax, e-mail or internet to communicate directly with or solicit response or dialogue from specific customers and prospects.
6. Personal Selling: Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders.
The above listed are the elements of a promotion communication mix. Therefore, the researcher wants to really find out what promotional strategy tools that organisations employ, hence the topic “Promotional Strategy Tools for Company Gods and Services Acceptability”. A case study of Nestle Nigeria Plc was used to find out how the strategies employed help the company achieve its promotional goals.
Statement of the Problem
The purpose of this research work is to thoroughly evaluate the strategies and tools that companies employ to ensure promotion of their goods and services an possibly, how that will commensurate with increased sales due to the use of the different tools. Inspite of the tight definition of sales promotion as an essential means of creating awareness of the product’s existence and characteristics and also the positive, psychological associations that can enhance the buyer satisfaction which add to the real value of the company’s offering, little attention is being given to it by many business organisations in the country and they rarely promote their sales to the fullest.
Many firms pay little attention to sales promotion since they feel they can sell their product with little or no promotional activities. Likewise, despite the effects of sales promotion, there had been insufficient research and decision modeling devoted to it. In addition, there is an established negative perception of many firms as regards the cost of business promotion especially those whose benefits are not early and immediately reached.
Also, adequate records of sales and promotional cost are always neglected and some sales promotion programmes are introduced at the wrong time, which will therefore hinder the level of sales and profitability of the firm and thereby render sales promotions less important in the community and the country as a whole.
Objectives of the Study
The objectives of this research work are to:
- Identify various promotional strategies that will be useful for the management in decision making.
- Evaluate the advertising strategy that will increase sales turnover.
- Find out whether advertising is impacting positively or negatively to sales.
- Find out how the company that is Unilever Nigeria Plc determines its advertising model