THE EFFECT OF SALES PROMOTION ON CONSUMER MOTIVATION CHAPTER ONE

THE EFFECT OF SALES PROMOTION ON CONSUMER MOTIVATION CHAPTER ONE INTRODUCTION Background to the Study Sales promotion is the final element of the 4P’s in the marketing mix i.e. product, price, place and promotion. As a promotional strategy, sales promotion activities are impersonal and usually non-recurring and are directed to ultimate consumers, industrial users and middlemen. Promotion is essentially seen as industry's sales efforts to current and prospective customers. Its primary purpose is to increase profits by increasing sales volume, (Kotler 2002). Sales promotion consists of those seller-initiated activities that supplement both advertising and personal selling and render them into a more effective persuasive force that stimulate consumer purchases (Obi, 2002). It therefore covers a wide variety of short term incentive tools aimed at stimulating consumers, the chains of distribution and the organisation's sales force. It could take different forms such as giving away free samples of product, exhibitions, demonstration of products at stores or trade fairs or shows and preparation of printed materials used by sales people or for point-for-sale display, reducing the usual price tag, etc. A combination of the above variables defines a firm’s promotional programme that hopes to influence consumers to patronise and become loyal to the organisations offering (Banabo and Koroy, 2011). Thus, sales promotion has been an effective tool used by companies in effecting increase in sales especially in the face of competition and in an ailing economy. In Nigeria presently, the changing socio-political and economic environment may make products that hitherto had been selling like hot cake to suddenly lose their attraction. Sales promotion is a major force in marketing today. Coupons, rebates, free sample, point of purchase techniques are some of the promotional strategies being employed today (Alabar, 2011). In the light of the above, sales promotion is a driving force of attracting consumers, who are in need of the organisation’s products/services, to purchase such product/services. Kotler (1998) puts it as “a diverse collection of incentive tools, mostly, short term designed to stimulate quicker and/or greater purchase of particular products/services by consumers.” This has influenced many consumers to buy items, which necessarily they don’t need at that particular point in time. Marketers have employed sales promotional strategies rapidly over the past few years. This global phenomenon has been carried out in both advanced and growing economy where companies are seen spending considerable time and money in planning such activities. In India, sales promotions expenditure by various marketing companies is estimated to be thousands of Crore and the emphasis on sales promotion activities by the Indian industry has increased by 500 to 600% during the last 5 to 8 years. In the year 2004, there were as many as 2,050 promotional schemes in the Rs 80,000 crore, fast moving consumer goods (FMCG) Industry (Dang et al., 2005). In international marketing, understanding the cross-cultural differences is imperative for developing effective marketing strategies for the diverse foreign markets with a variety of cultures (Loudon and Bitta, 2002; Perreault and McCarthy,2002; and Schiffmanand Kanuk, 2004). This sort out activities stimulates consumer behavior which can be regarded as a utility and value producing activities. It plays a significant effect on decisions which help in achieving the organizational objectives, and furthermore, consumers’ behavior influenced the economic social conditions within a society (Loudon and Bitta, 2002). Moreso, promotion must be in line with the organisation’s decision. Usually the budget that allocates to sales promotion has been rapidly growing with marketers shifting their attentions to the application of sales promotions more than other devices such as advertising. Organisation will always ensure the cost of sales promotion does not outweigh the benefit as not every consumer is moved by low-cost of goods/services. Some past researchers have suggested that promotion itself has an effect on the perceived value of the brand. This is because promotions provide utilitarian benefits such as monetary savings, added value, increased quality and convenience as well as entertainment and self expression. This has prompted the researcher’s interest to investigate the effect of sales promotion on consumer’s motivation, using Benue Brewery Limited as a study reference. 1.2 Statement of the Problem Sales promotion is globally seen as a strategic marketing tool that is used bymanufacturers of products to boost the volume of sales. Promotion is essentially seen as industry's sales efforts to current and prospective customers. Obi, (2002) opines that Sales promotion consists of those seller-initiated activities that supplement both advertising and personal selling and render them into a more effective persuasive force that stimulate consumer purchases. According to Kotler, (2002), the primary purpose of sales promotion to the firm is to increase profits by increasing sales volume, (Kotler, 2002). To the consumers, Promotions help to provide savings for them by reducing the pain of paying. Consequently, some consumers will purchase promoted products to obtain these economic benefits. Savings will be remarkable for thoseprice-conscious consumers and for those with financial constraints (Esfahani&Jafarzadeh, 2012). In Nigeria however, given the immense benefits derivable by both the firm and the consumer, it has been observed that Nigerian manufacturers invest less in promotion which consensus opinion adjudged as an indispensable marketing tool. This development has left marketing scholars in doubt as to whether these manufacturers understand the influence of sales promotion in motivatingconsumers. In view of the forgoing, this study has been initiated to empirically examine the effect of sales promotion on consumer’s motivation with specific reference to Benue Breweries Limited, Makurdi. 1.3 Research Objectives The broad objective of this study is to examine the effect of sales promotion on consumer motivation with emphasis on Benue Breweries Limited. The specific objectives however include the following:- To examine the relationship between price slash of brewery products and consumer motivation. To examine the relationship between packaging of brewery products and consumer motivation. To examine the relationship between branding and consumer motivation. PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s). HOW TO RECEIVE PROJECT MATERIAL(S) After paying the appropriate amount (N3500 for Nigerians/ $20 outside Nigeria) into our bank Account below, send the following information to 08061272709 or email: [email protected] Your project topics Email Address Payment Name We will send your material(s) immediately we receive notification of payment. BANK ACCOUNTS MAIN BANK ACCOUNT Account Name: JULIUS SAMUEL A. Account Number: 4004603017 Bank: FCMB. PayPal: [email protected] However, if what you want is something different or a new work entirely using some other case study; you can contact us on the number/email address above for details as we assure you of the best quality of research possible. HOW TO IDENTIFY SCAM/FRAUD As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria. But on this site, we have provided “table of content and part of chapter one” of all our project topics and materials in order to convince you that we have the complete materials. Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank. No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner. CAUTION/WARNING Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy. That you ordered this material shows you have agreed not to copy word-to-word.