Ahmed Hajarah Project Report
Ahmed Hajarah Project Report
Ahmed Hajarah Project Report
BY
AHMED HAJARAH
FPI/BAM/22/020
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CHAPTER ONE
1.0 INTRODUCTION
Sales promotion, a key ingredient in marketing campaigns; the need to promote a product,
service or an idea cannot be over emphasized. Saharuddin et al. (2022) described sales
promotion consists of the related promotional activities that are necessary to supplement
A combination of the above variables defines a firm’s promotional programme that hopes to
influence consumers to patronize and become loyal to the organizations offering (Abuselidz
et al., 2023). Hence, promotion in marketing represents those tools that companies used to
production, cost performance, turnover, quality of output, profitability, efficiency and the like
(Pitinova & Khyzhnyak, 2017). It is the ability of an organization to achieve its objectives
and meet the needs of its various stakeholders (Mazur et al., 2022). Sales promotion can
promote organization effectiveness through increase in profitability from higher sales. The
bound to fail.
Sheremetynska and Nevmerzhytska (2016) said that sales promotion plays a significant effect
on decisions which help in achieving the organizational objectives. It has been established in
literature that only consumers with repeat purchases are profitable. It is not every repeat
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purchase that is connected to consumer’s commitment of a brand. However, consumer’s
commitment is important for a repeat purchase. Therefore, business operators need to develop
marketing program that will not only reinforce customer’s commitment but also encourage
repeat purchases.
A part of the functions of sales promotion is not only to reinforce commitment of consumers
but to encourage repeat purchase. Sales promotion has effects on various aspects of
consumer’s purchase decisions such as brand choice, purchase time, quantity, and brand
switching (Blackwell, et al., 2001). Thus, sales promotion becomes an integral part of the
marketing strategy for reaching the target market and it is the responsibility of marketing
coordinated plans.
Sales promotion efforts are directed at final consumers and designed to motivate, persuade,
and remind them of the goods and receives that are offered. Sales promotion which is a major
force in marketing is widely adopted by banking industry. The importance of the excessive
1982).
along with advertising, public relations, and personal selling. Most of the challenges faced by
organisation when it comes to sales promotion could be that they lose so much money in the
promo without gaining or achieving the reason for the sales promotion hence the company
running into deficit. It could also be that the organisation might be working with some sales
personnel that cannot carry out the duty of a sales promoter thereby making the marketing
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strategy in the organisation to be deficient. Finally, several researches has been carried out on
the effect of sale promotion in an organisation but not even a single research has been carried
out on sales promotion as an effective tool in achieiving organisation objectives a case study
of Gozak Medicine Store and Supermarket Ltd., Ile-Oluji and Ondo branch.
The main aim of the study is to examine sales promotiomn as an effective tool in achieving
organisational objectives taking Gozak Medicine Store and Supermarket Ltd., Ile-Oluji and
Ondo branch as a case study. Other specific objectives of the study include;
organisational objectives.
iii. to determine the extent to which sales promotion act as effective tools in achieving
organisational objectives.
1. What are the factors affecting sales promotion in achieving organisational objectives?
objectives?
objectives?
H0: Sales promotion as a effective tool has no significant effect in achieving organisation
objectives.
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H1: Sales promotion as no effective tool has no significant effect in achieving organisation
objectives.
The study on sales promotion as an effective tool in achieiving organisation objectives will be
of immense benefit to the entire medicine stores and supermarkets also other small and
medium scale establishment in the sense that it will educate them on how to set up a more
and effective sales promotion department with experienced staff with the view to developing
The study will also enable them at all time to have a planned and systematic sales promotion
programme in place as this would help to make such promotional implementation effective.
Finally, the study will contribute to the body of existing literature and knowledge to this field
limited to Gozak Medicine Store and Supermarket Ltd., Ile-Oluji and Ondo branch.
Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in
sourcing for the relevant materials, literature or information and in the process of data
Time constraint: The researcher will simultaneously engage in this study with other
academic work. This consequently will cut down on the time devoted for the research work.
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1.9 DEFINITION OF TERMS
1. Sales Promotion: this is a temporary offer of alternative prices and inducement incentive
to customers these incentives include offering free sample trade stamps, trade fairs, bonaza’s
and promotion of ideals, goods, or services by an identified sponsor Anyanwu (2000) draw
from the three perspective of advertisement (society consumer and business perspectives) and
marketing decision variable firms used to inform, persuade and educated the customers about
product offering by an identified sponsor with a view to developing performance for the
3. Organization Profitability: This is the efficient and effective use of scares resources in
4. Free Sample: This is the product given to people to know how the material is and what it
can do for them, this is to attract customer to patronize the product and service rendered.
5. Promotion: This is the third element of the marketing mix. It consists of all the activity
consumers.
6. Marketing: This is the performance of business activities that direct the flow of goods and
services from the company which is the producer to the consumers or users
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CHAPTER TWO
According to Kotler (2003), Sales Promotion is a key ingredient in marketing campaigns and
consists of a diverse collection of incentive tools, mostly short term designed to stimulate
programmes are those activities other than stimulate consumer purchase. Whiles Haugh
(1983) defined sales promotion as “a direct inducement that offers an extra value or incentive
for the product to the sales force, distributors, or the final consumer with the primary
Achumba (2002) considered sales promotion as those marketing activities, other than
personal selling, advertising and publicity that stimulate consumer purchasing and dealer
effectiveness, such as displays, shows and expositions, demonstration etc. Sales promotion
has been defined as a direct inducement that offers an extra value or incentive for the product
to the sales force, distributors or the ultimate consumer with the primary objective of creating
an immediate sale. Sales promotion is one of the ways used by firms to communicate with
intended target market. Sales promotion is unique in that it offers an extra incentive for action
(Palmer, 2004). Sales promotion refers to those promotion activities other than advertising,
publicity and personal selling that stimulate interest, trial or purchase by final customers or
others in the channel. Andhini and Andanawarih, (2023) stated that sales promotion consists
response from customers. Sales promotion has been defined as a “direct inducement that
offers an extra value or incentive for the product to the sales force, distributors or the ultimate
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consumer with the primary objective of creating an immediate sale” (Schultz and Robinson,
1982).
The term” sales promotion” has been used to represent at least three different concepts:
(3) A catch-all for all communication instruments that do not fit in the advertising, personal
Achaand et al. (2023) provide a revised definition for sales promotions when they defined it
extra value to a product or service over and above the “normal” offering in order to achieve
specific sales and marketing objectives. This extra value may be a short-term tactical nature
effective sales tool; more product managers are qualified to use sales promotion tools; and
product managers are under greater pressure to increase current sales. In addition, the number
of brands has increased; competitors use promotions frequently; many brands are seen as
similar; consumers are more price-oriented; the trade has demanded more deals from
manufacturers; and advertising efficiency has declined because of rising costs, media clutter,
Syeda and Sadia (2011) argued that Sales promotion has become a valuable tool for
marketers and importance of it has been increasing rapidly over the past few years. They
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further advocated that many researchers have proven the short term impact of sales
promotion has an increase in sales for the respective period. The long term impact of sales
promotion as well, i.e. the increase in the brand loyalty of the customer which will ultimately
increase the customer lifetime value of the company and thus the company’s profitability.
Gedenk et al. (2006) argued that “promotion is more than a short-term sales tool”.
Promotions have long-term effects on purchase event feedback and consequently on future
purchasing as well. Purchase event feedback is the “effect of current purchases on future
brand preference” and it “is concerned with what consumers learn from the consumption
experience”.
Lou and Yuan (2019) stated that Sales promotion provide utilitarian benefits such as
monetary savings, increased quality (higher quality products become attainable), and
expression. Sales promotions are comparatively easy to apply, and are likely to have abrupt
Resultantly, according to Alexandrescu et al. (2018) the finances of companies regarding the
marketing increase constantly. Research conducted by Anyadighibe et al. (2021) had revealed
that consumer promotions affect the consumers to purchase larger amount and consume it
faster; causing an increase in sales and ultimately profitability. Jadhav et al. (2022)
mentioned that to retain consumers in the face of keen competition, service providers must
develop marketing strategies that will not only win customer but help to retain them. Sales
promotion plays an important role in retaining old consumers and attracting new ones. Parts
of the essence of a business existence are to produce goods and services that will be required
by customers and to make profit from such activity. Enough sales must be generated for
profit to be made. Sales estimate is the foundation in budgeting or profit planning process
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Sales promotional tools such as coupons, discount, and free samples used strategically in
various industries not only increase brand awareness, but also encourage consumers to try
new products. For example, a manufacturer might utilize coupon incentives to encourage
consumers to try a new product, enabling the trial at a discounted price, instead of buying the
same flavour they normally do at full price. Therefore, this incentive may reduce consumers’
perceived risk associated with trying a new, less-familiar product for the first time (Ibáñez-
Blackwell and colleagues argued that new products are more apt to succeed when consumers
can experiment with or try the idea on a limited basis, with limited financial risk. Therefore,
sales promotion such as sampling, couponing, and trial-sized products are useful to induce
Kim and Chao (2019) clearly identified that every organisation has specific group of
customers it is serving, each of them has different needs and expectations. The very need of
each of the target determines the nature of incentives or tactics to be used. The practice of
telecommunication firms as far as sales promotion is concern seem universal and not on
specific target groups within the segment. Tertiary students as an economic segment need to
be targeted by players in the industry with specific incentives taking into accounts their level
Still on the importance and effectiveness of sales promotion, Palmer (2005) stipulates that
although it can be used to create awareness, sales promotion is usually used for the later
stages of the buying process, that is, to create interest , desire and –in particular- to bring
about action. He added that sales promotion can successfully complement other tools within
the promotion mix, for instance by reinforcing a particular image or identity developed
through advertising.
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According to Jobber (2004) sales promotion boosts sales during the promotion period
because of the incentive effect. This is followed by a small fall in sales to below normal level
because some consumers have stocked up on the product during the promotion. He stipulated
that the long-term sales effect of the promotion could be positive, neutral or negative. If the
promotion has attracted new buyers, who find that they like the brand, repeat purchases from
them may give rise to positive long-term effects. Alternatively, if the promotion (e.g money
off) has devalued the brand in the eyes of consumers, the effect may be negative. Where the
promotion has caused consumers to buy the brand only because of its incentive value, with no
effect on underlying preferences, the long-term effect may be neutral. Also, he said certain
promotions by their nature encourage repeat purchase of a brand over a period of time.
The most important objective of sales promotion is to bring about a change in the demand
prototype of products and services. Essentially, sales promotion has three precise objectives.
First, it is meant to give significant marketing information to the prospective buyers. The
second objective is to induce and influence the potential buyers through convincing
i. Add to the stock of the dealers: Dealers like wholesalers and retailers usually deal with
a multiplicity of goods. Their selling activity becomes easier when the manufacturer
supplements their efforts by sales promotion measures. When a product or service is well
supported by sales promotion, dealers are automatically induced to have more of such
items.
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ii. Attract new customers: Sales promotion measures also play an important role in
attracting new customers for an organization. Typically, new customers are those persons
that are won away from other firms. Samples, gifts, prizes, etc. are used to encourage
iii. Helps the firm to remain competitive: Most of the companies undertake sales
modern competitive world no firm can escape the responsibility of undertaking sales
promotion activities.
iv. Increase sales in off-seasons: Many products like air-coolers, fans, refrigerators,
airconditioners, cold drinks, room heaters, etc. have seasonal demand. Manufacturers and
dealers dealing with such type of goods make every effort to maintain a stable demand
throughout the year. In other words, firms try to encourage the purchase of such goods in
off-seasons also. That is the main reason behind discounts and offseason price reductions
v. Induce existing customers to buy more: Sales promotion devices are most often used
to induce the existing customers of a firm to buy more. Product development, offering
three products at the cost of two, discount coupons, are some of the sales promotion
devices used by firms to motivate the existing buyers to buy more of a specific product.
vi. Introduce new products or services: Sales promotion is often used to motivate
prospective consumers to try new products and services. Dealers are also induced to
introduce new products and services in the market. More often than not, free samples are
provided through dealers during such introduction. Likewise, discounts in cash or goods
may also be offered to dealers to stock new products or deal with new services. Free
samples, trade discounts, cash discounts are basically sales promotion measures.
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2.4 SALES PROMOTIONAL TOOLS
Saharuddin et al. (2022) identified the main popular sales promotion tools to include the
i. Direct price-off / discount: A price discount is a temporary reduction of the listed price
of the product.
ii. Coupon (including printed coupon, e-coupon, and m-coupon): Printed coupon, which
electronic/mobile coupon, which may be downloaded from the internet or email, or via
‘push’ or ‘pull’ SMS, entitle the customer to a reduction of price on certain products.
iii. Bonus pack / discount for a package: Provide additional quantity of product at the
discounted price.
iv. Buy-one-get-one-free offer: One more item is offered for free if the customer buys one
v. Free premium / gift / advertising specialties: Gift / item offered free in return for the
vi. Joint / tie-in promotion: Another product is offered for free or at a discount upon
vii. Stamp redemption: Stamp accumulations from repeat purchasing for discount,
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viii. Contest, game and sweepstake: Games, activities, competitions and lucky draws are
ix. Membership program: Discount or free product rewards are offered upon joining the
x. Patronage rewards from credit card: Points accumulations on credit card for discount,
xi. Patronage rewards from Octopus card: Points accumulations on Octopus card for
xii. Free sample: Provides consumers a free small portion of a product, usually new to the
PERFORMANCE
The effect that sales promotions have on the organizational performance according to
i. Building brand loyalty: Sales promotion helps to build brand loyalty by giving the
seller the chance to draw a loyal and profitable set of customers which provides sellers
some protections from competition and greater control in planning their marketing mix.
ii. Encouraging off season buying: Sales promotion has also encouraged off season
buying especially during the festive periods, people tend to buy more of a particular
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iii. Encouraging purchase of large size unit: Sales promotion consists of diverse
collection of incentive tools, mostly short term designed to stimulate quicker or greater
iv. Generating trials among non-users: Trials among non-users of a product are generated
through invitation of potential purchasers to try the product without cost or little cost
v. Influencing retailers to carry new items and higher level of record: Sales promotion
Categorically, sales promotion has been seen to centre on customer relationship management,
free gifts, free sample, and price discount. If an organization successfully gear sales
promotion techniques, it will not only push large purchase but it will also boost the sales
Over the last few years there has been a rapid increase in the use of sales promotion, for a
number of reasons. Internally there has been a greater acceptance of the use of sales
promotion by top management and more people are now qualified to use it. In addition, there
is greater pressure today to obtain a quick sales response, something which sales promotion is
good at achieving.
There has been a general proliferation of brands with increased competitive pressure. As a
result of this and the changing economic environment, consumers are more ‘deal orient’ and
this has led to pressure from intermediaries for better incentives from manufacturers and
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service principals. It has been argued by many that advertising efficiency is declining due to
New technology in targeting has resulted in an increase in the efficiency and effectiveness of
sales promotion (Palmer, 2005), Peattie and Peattie equally explain in Jobber (2004) the
reasons for the increasing growth of sales promotion in recent times as follows:
i. Sales promotions are becoming respectable: through the use of promotions by market
ii. Increased impulse purchasing: the retail response to greater consumer impulse
activities: in some markets, sales promotions are used so often that all competitors are
iii. Measurability: measuring the impact of sales promotion is easier than for advertising
since their effect is more direct and, usually short term. The rising cost of advertising and
advertising clutter: these factors erode advertising’s cost effectiveness. Cravens and
Piercy (2006) seem to contradict this as they indicated that sales promotions expenditure
in recent times is increasing more rapidly than adverting in many companies. The
reasons for the increasing importance and usage rate of sales promotion in the
telecommunication services industry do not differ from the view point of Peattie and
Peattie above. Over the past two decades the popularity of sales promotion has been
increasing. Two reasons for this increased popularity are undoubtedly the increased
pressure on management for short-term results and the emergence of new purchase
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2.7 CONCEPTUAL FRAMEWORK
From the literature reviewed, the conceptual framework is presented below. The framework
include consumer promotion, trade promotion, and sales force promotion. In this study sales
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CHAPTER THREE
This section focuses on the research design, methods of data analysis, population and sample
size determination, instrument for data collection, and methods of data analysis
The research design is intended to specify the methods and procedure of the study and also
In the presentation of this research study, both the exploratory and descriptive research
designs were used. The justification for this, is that both method deals with determination,
evaluation and explanation of past events essentially for the purpose of gaining a better and
clearer understanding of the present and making a more reliable prediction of the future.
The data used in this research were mainly from two sources:
vii. The primary source which involves the carrying out of survey study through the
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viii. The secondary source includes extracts from text books, literatures, journals and
publications. This source constitutes a large portion of the literature review and all
Population can be defined as any group of people or objects, which are similar in one or more
In this study, the population constitutes the number of customers and staff, which include
customers from Ile-Oluji branch and Ondo branch. The population of staff and customers of
the establishment is very large, hence the population size will be less but large enough to
elicit precise decisions. Since for obvious reasons a study cannot accommodate all the
population a sampling technique was adopted. A study of this nature requires adequate
sample size that is representative of the diverse nature of the population under consideration.
Apart from the criterion of adequate representation, there is also the need to avoid taking a
large sample size, so that repetition of respondent’s answers will be guided against.
A total of 100 questionnaires will be administered to both staff and customers of the
establisment in both Ile-Oluji and Ondo. Using the simple random sampling technique 80
The research instrument used in collecting data for this research work includes;
Questionnaire, personal interview and observations and extracts from documents texts and
records.
Questionnaire: One of the most important techniques for collecting data which was
employed by the researcher was the questionnaire method. This is the formal method of
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collecting information for testing and analyzing hypothesis stated in the research work.
Questionnaire is a device for getting responses which are direct views of respondents and it is
suitable for the research study because it enables the researcher to group responses of the
respondents according to various category needed. The close and open-ended questionnaires
Personal Interview Cum Observation: This is a technique used for collecting information
from the respondents in a face-to-face contact. Direct and prepared questions were asked and
the respondents were allowed to talk freely and this even ensures the flexibility and
objectivity of the research study, while observation enables the researcher to see things for
himself by studying the behavior of people and its most important advantage is that it is
Documents and Records: This includes extractions made from available documents and
records that were related to the topic under consideration. These records and documents
include text books, journals, and magazines and so on. Bulk of which constitute the literature
The responses to these questions raised in the study are to be analyzed using the SPSS soft
ware (Statistical Package for Social Science) linear regression and Pearson correlation
coefficient analysis. The objective of the analysis is to establish the extent of variation
between the observed frequency (level of Relationship to organizational objective) and the
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