ABSTRACT

Rapid changes in technology, over production, shortened product life cycles, increased competition owing to reduced barriers to domestic and international trade, mass communication and globalization have all contributed to the need for a firm to have distinctive capabilities; which create a competitive advantage over others. We are inclined to believe that fully utilized, competent and well-articulated sales promotion strategies constitute a competitive advantage. With the notion that sales promotion strategies positively correlates with marketing performance, firms view sales promotion strategy incompetence with grave concern. The effect of poor promotion strategy performance is not limited to firms alone since organizations can and do experience sub-optimal or out-right poor performance; but also to the economy as a whole. The aggregate business performance of a country’s economic unit shapes its economy, since a nation’s wealth is measured mostly in terms of its GDP. Among the factors critical to business profitability; fresh concerns about the efficacy of Sales promotion strategies is sparsely researched. This informs the research interest in this regard, recognizing the unique role of sales promotion strategies that distinguishes it from other marketing communication methods, and its critical roles in pushing and creating traffic for the manufacturer’s product. With a survey research design, a Pearson’s Product Moment Correlation Coefficient model was formulated to incorporate four hypotheses of interests. Quantitative data were collected through a 5-point Likert-type scale questionnaire. A total of 140 copies of questionnaire were administered to top management staff of Nestle Nigeria Plc but only 120 copies were found valid for this study. We adopted Pearson’s ‘r’ to assess the relationship between sales promotion strategy and marketing performance and to know if Marketing Performance can be measured by Sales volume, Profitability and Market share. Our findings reveal that there is a significant relationship between Sales promotion strategies and marketing performance. We therefore recommend that Nestle Nigeria Plc should set up more and effective sales promotion department with experienced staff with the view of developing more promotional strategies in line with the company’s objectives. Sales promotion budgets should always be adequate in the organization.

TABLE OF CONTENTS

Title page -i                                       Declaration -ii

Certification -iii

Dedication -iv

Acknowledgement -v

Table of contents -vi

List of tables -ix

Abstract -x

Chapter One: Introduction

1.1 Background of the study- - - - -1

1.2 Statement of problem- - - - - -3

1.3 Objectives of the study- - - - -4

1.4 Research Questions- - - - - -5

1.5 Research Hypothesis- - - - - -5

1.6 Significance of study- - - - - -5

1.7 Scope of Study- - - - - -5 

1.8 Limitations of study- - - - - -6

1.9 Definition of terms- - - - - -6                                                                         

Chapter Two: Review Of Related Literature

2.1 Introduction- - - - - -8                 

 2.2 Theoretical Framework- - - - -8                                   

 2.2.1 Nature and Concept of Sales Promotion- - - -8

2.3 Types of Sales Promotion- - - - -11

2.4 Sales Promotion Technique- - - - -12

2.4.1 Sales Promotion method used by Retailers- - - -13

2.4.2 New Product Sales Promotion Techniques- - - -13

2.4.3 Sales Promotion method aimed at reseller- - - -13

2.4.4 Sales Promotion Method for Established Product- - -13

2.5 Factors that influence the choice of Promotional Devices- - -15

2.6 Promotional Strategy- - - - - -16

2.7 Functions of Sales Promotion- - - - -16

2.8 Importance of Sales Promotion- - - - -17

2.9 Advantages of Sales Promotion- - - - -18

2.10 Disadvantages of Sales Promotion- - - - -19

2.11 Marketing Performance- - - - -19

    2.11.1 Sales Turnover- - - - -19

    2.11.2 Market Share- - - - - -20

    2.11.3 Profitability- - - - - -20   

2.12 Communication and Sales Promotion- - - -21    

Chapter Three: Research Methodology

3.1 Research Design- - - - - -23

3.2 Sources of Data Collection- - - - -23

3.2.1 Primary Sources- - - - -23

3.2.2 Secondary Sources- - - - -23 

3.3 Population of the study- - - - -24                                 

  3.4 Sampling Design- - - - - -24                                   

3.4.1 Sample Size Determination- - - - -24                                                   

  3.4.2 Sampling Procedure/ technique- - - -24

3.4.3 Sampling Method- - - - -25   

3.5 Statistical/ Analytical tool- - - - -25  

3.6 Test of Significance- - - - - -26                                                              

Chapter four: Data presentation, analysis and discussion of findings

4.1 Data presentation- - - - - -27                                   

 4.2 Analysis of Data- - - - - -29                                     

4.3 Testing of Hypothesis- - - - -34                                                                            

Chapter five: Summary, conclusion and recommendation

5.1 Summary of Findings- - - - -38                                     

5.2 Conclusion- - - - - -38                   

5.3 Recommendations- - - - - -39                                   

References