THE IMPACT OF SALES PROMOTION ON THE SALES VOLUME IN BUSINESS ORGANISATIONS
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Promotion and activities, signs, symbols, word of math, rising or even action use to inform, persuade communicate, remind and make aware to the potential consumer and the public about a product and the service. Promotion is concerned with the ways and means by which its product and service can be communicated to consumers. Promotion is an act of creating awareness, persuading, influencing and reminding the actual potential and public as a whole about products and services
Sale volume is the number of products sold within the period of promotion activities, it is the amount of goods or services the company sold or gives for the exchange of money during the time of product activities. A business organization, through the uses of promotion as a promotional strategy can effectively reach its target market. Therefore, to achieve an effective and improved promotion strategy, the use of promotional tools should be introduced. i.e sales promotion. A buyer who has no cardinal knowledge about product incentive can be aware of it through the product incentive can be aware of it through the promotional activities.
In essence, promotion has a great impact on product because it has the ability to control the buyers mind positively towards the products. It increases the scales and market relation of a business organization.
The main idea behind the work is to show clearly how an effective promotion strategy can be reached with the use of sales promotion to increase the sale volume in organization like global com Nigeria plc.
1.2 STATEMENT OF PROBLEM
In recent years Globacom Nigeria plc, have invested much into sale promotion aiming at improving the sale volume of the company. Despite of heavy investment in the promotional activities, Globacom has not achieved its targeted sales volume, for instance the target sale of 2013 were fifty million and the actual sale was forty four, eighty seven billion which indicated a deficiency in the actual sale.
1.3 AIM AND OBJECTIVES OF STUDY
The aim of this research work is to examine the impact of sales promotion on the sales volume in business organizations The objectives of the research work include:
· To identify the combination of promotional tools that should be adopted to enhance promotion.
· To determine the usefulness of sales promotion.
· To explore rationale behind sales promotion by examining consumer behaviour
· To pose challenges ahead sales promotion
· Identify conditions under which sales promotions influence purchase behavior
· To determine how long the company has been carrying out sales promotion.
· To find out the media used by the company in conveying sales promotion programmes.
1.4 RESEARCH QUESTIONS
This study tends to investigate and provide answers to the following questions.
· Does Sales Promotion have significant effect on organizational performance?
· Does sales promotion influence consumer purchase behaviour?
· Do consumers really benefit in sales promotion?
· What are the implications of defective sales promotion in an organization?
· What are the main factors that affect sales promotion?
1.5 STATEMENT OF HYPOTHESES
To provide answer to the research questions arising from this study, the following hypotheses are postulated.
HYPOTHESIS ONE
H0: There is no significant relationship between sales promotion and organizational performance.
H1: There is a significant relationship between sales promotion and organizational performance.
HYPOTHESIS TWO
H0: Sales promotion does not influences consumer purchase behavour.
H1: Sales promotion influences consumer purchase behavour
1.6 RESEARCH METHODOLOGY
Research methodology deals with the procedure used by the researcher to conduct the study. It contains the different activities performed and methods employed by the researcher in the study. For the purpose of collecting necessary data for this research work, primary and secondary data collection method will be used. The primary data collection method will be through the following:
1. Structured questionnaire
2. Personal unstructured interview
3. Observation
The secondary data will be collected from reports and documents from the company. Also, reports outside the company and from library and desk research literatures will be used.
In this study, descriptive method will be used to analyze data and also in testing hypothesis, chi-square (X2) will be employed. Findings from this research study will be discussed in the light of the research problem hypothesis, purpose research questions, literatures of the research and other relevant issues conclusions will be drawn and recommendations and suggestions also will be made.
1.7 SCOPE AND LIMITATION OF THE STUDY
This study covers investigating the efficacy of the sales promotional tools adopted by the study area.
In the course of conducting this research work it is expected that the following will constitute impediments to the effective conduct of the study
a) Time constraint within which the study must be completed.
b) Financial constraint
c) Inaccessible and inadequate data
d) Also, combining project work with several other activities is another stressful task that may not allow me to cover research materials extensively.
Nevertheless, I believe the above limitations will in no way affect the reliability and validity of the research study.
1.8 SIGNIFICANCE OF THE STUDY
It is a fact that sales promotion has a great impact in business organization. This study therefore intends to determine to a great extent the impact of sales promotion in business organization. Because of the important role of sales promotion, this study will therefore make a useful improvement upon the performance of business and how their level of sales and profitability can be improved.
This project will be of immense value to future researcher who might intend to carry out a research on this particular topic. It will also help to highlight how individual who may set up their own business in future to carry out their business in an effective way.
1.9 DEFINITION OF THE BASIC TERMS
The terms to be given operational definitions to are:
SALES PROMOTION: Sales promotion can be defined as a broad label that applies special kinds of sales accelerating activity not necessarily classed as advertising and direct selling.
BUSINESS: Business can simply be defined as the totality of all economic activities that are undertaken in the process of producing and distributing goods and services for the purpose of making profit.
ORGANIZATION: Organization is defined by Robine (1987) said an organization is a consciously coordinated social entity with a relatively identifiable boundary, that function on a relatively continuous basis to achieve a common goal or set of goals.
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