THE IMPACT OF PROMOTIONAL MIX ON SALES PERFORMANCE

CHAPTERONE

INTRODUCTION

1.1    Background to the Study

Marketing is an aspect of human endeavor (Baker 1995), quoting brech (1953) says that marketing is the process of determining customer demand for a product of service, motivating it sales and distributing it unto ultimate consumption at a profit. Marketing is not only much broader than selling, it is a specialized activity and it encompasses the entire business. It is the entire business seen from the point of view of its final result - the consumer.

After the emergence of the industrial revolution, machines were introduced in the production system, which boosted the production of goods and services in large amount available for sale.  With this, consumers were exposed to variety of products and this requires selections of products that will give them optimal satisfaction from their limited resources.

On the other hand, companies were interesting in boosting their image, maximizing profits, achieving high sales and gaining competitive advantages over similar companies in the same business.  The essence of this study is to determine how promotional may affects the sales of Gulder beer, a product of Nigeria Breweries plc.

However, for a company like Nigerian Breweries Plc to excel over its competitors, it has to deploy certain marketing strategies to attract the attention and interest of consumers like the recent concluded theGULDER ULTIMATE SEARCH five and introduction of Gulder max with prices abound under the crown corks.

In line with the marketing mix, which is the company’s product, price, promotion achieving positive purchase decision from consumer and at the same time boosting and the public perception and place of distribution (4pcs), the strategies evolve from the mix.  Means that marketing management should determine which features to include in the product for consumers, the most reasonable and acceptable price, how well to promote the product and how to distribute the products for high purchase in terms of Sales and profit maximization.

1.2     Statement of Problem/ Hypothesis

The present  situation of the country ‘Nigeria’ in economic activities due to the world's economic depression and her poorly structured policies has vein a new outlook for business whose aim is to maximize return on investment.

The project is aimed at analyzing the following problems, which includes:

a)       The ineffectiveness of some of methods such as newspaper advertisement which sometimes are blurred and does not have any effect on some of the customers, especially the illiterates and those that cannot afford them due to the high cost.

b)      The problem of not sponsoring television programmers as promotion strategy in achieving positive purchases decision from consumer and at the same time boosting the image and the public perception of the organization.

c)       The problem of not using local languages to advertise the product thereby hindering sales targets achievements.

Attempting to solve these problems, the following hypothesis is made for evaluation and analysis.

1.3     Aim and objectives of the study

a)       Determining the consumer level of demand for the brand advertising situation.

b)      Ensure that the organization gains from the research in guiding future management decisions regarding promotional activities of the brand.

c)       Ascertain the effect of promotion on the expansion of the market shave for the company concerning ‘Gulder’

d)      Determine the ability of the company to sustain same volume of sales in a non-advertising situation.

1.4     Hypothesis of the Study

For the purpose of this study, three hypothesis were formulated and as follows;

Hypothesis I:

Ho - promotion does not help Nigerian Breweries plc informing, persuading and creating awareness tea consumers to make purchase.

Hypothesis II:

Ho - sponsoring of programmes does not enhance the expansion the market share of Gulder.

Hypothesis III:

Ho - promotional activities of Gulder does not help Nigerian Breweries plc to have high turnover.

1.5     Scope and Delimitation of Study

The study will examine the effect of promotion on sales performance of the brand under study.

This research focused on the consumers of Gulder Beer in Lagos area, which is one of the major markets of Gulder Beer.  The decision to focus on Lagos markets is based on the consideration of some logistic constraints in the gathering is being obstructed by finance. This notwithstanding, it is believed that the findings and recommendations will be of beneficial to the company, consumers and other stakeholders.

1.6     Definition of Terms Advertising:

Advertising:

Is a form of communication through mass media about products, services ideas or opinion paid for by an identified sponsor and directed at a target audience (By APCON) Advertising practitioner council of Nigeria.

Advertising Agency

These are group of creative and business people who specialize in the development, preparation of advertising plans and placement of advertisement in media for clients seeking awareness for product and services.

Advertisement

It means any form of message, which is employ by an organisation in presenting their product to the consumers.

Attitude

An enduring organization of motivational, emotional, perceptual and cognitive processes with respect to some aspect of the individual's world.

Brand

The American marketing association define a brand as a name term symbol or device or a combination of these which is intend to identify the good or service of seller or group of sellers and to differentiate them from other competitors.

Consumers

These are end users they are the people buying the product either for personal, family or household use especially far practical purposes.

Market

The region or arena where any commodity can be exchanged. In its fundamental posture, it is the collection of buyer’s actual or potential external to the company, and it is the ultimate source of the company's income.

Marketing

As defined by chartered institute of marketing is the management process which identifies, anticipates and supplies customer requirement efficiently and profitably.

Phillip kotler- Marketing is a human activity directed at satisfying needs and wants through exchange processes.

Market Segmentation

Is the process of dividing a market into distinct subjects of customers each of which can be considered as a target market that have common needs and can be approached with a distinct marketing mix, action or programmes.

Micro Marketing

The performance of activities, which seek to accomplish a organization’s objectives by anticipating customer or client's need.