Influence Of Sales Promotion In Stimulating Sales Performance



The consumer product industries are seriously undergoing a period of transformation especially in this era of industrialization, where competing brands are prevailing frequently everywhere, and this call for activity that can help increase sales in the face of intense competition in order to stimulate sales performance for a period of time in the market and as well increase market share of an organization.

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Sales promotion for this reason quickly came to mind as an adequate marketing tools that can be used to accomplish this corporate objective of any marketing entity. According to Anyanwu (1993) in his definition. He defined sales promotion “as comprising of wide variety of tactical promotion tools of short term incentive nature”. Promotion can as well be called special offer because they are extra and specifically carried out in a particular time and place.

Nwokoye (2000) defined sales promotion as an activity that is used to stimulate sales of a product or services and usually occurring once or even over a limited period of time as a “sales” conducted by a retail store or featuring price reductions of many item of marketing.

Kotler (2000), defined sales promotion as “a short term incentives aimed at encouraging purchase or sales of a product or services. He further points that sales promotion is designed to stimulate stronger target response.

Nkem (2001) also went further to define sales promotion as a marketing communication efforts or promotional campaign activities articulated by business firms, carefully planned, organised, staffed, directed, monitored, controlled and carried out by marketing men.

The objective of sales promotion are derived from the basic communication objective which are for the consumer, that may encourage more usage and purchase of a given brand; building trial among non-brand users and stimulate brand loyalty. Sales promotion objective include getting retailers to stock new lines of product, it is as well encouraging seasonal buying, off-setting competitive promotion, it help gain entry into markets and finally for the sales force, it encourage sales people to support new product or model, as well induce them to prospect activity for consumer and also stimulate sales during off season period.

Sales promotion devices are usually classified based on the sources and the target. The source in this aspect could be the manufacturer, the wholesaler and the retailer and the target could be the consumer organisation or the industrial users, the wholesaler and the retailers.

Sales promotion as a source of stimulating demand has various techniques that must be adopted which include samples, premium, coupon, cash rebates, contest, trade shows, buying allowance e.t.c all these depend on who the source and target are. So, this study generally tries to access the impact of sales promotion in stimulating sales performance of the organisation who uses this tools effectively.

The Coca-cola company came into existence on 8th May 1886 by Dr. John Styth Pemberton, a pharmacist in Atlanta Georgia, U.S.A. Coca-Cola was established in Nigeria in the year 1953 with her first plant at Lagos, but presently, Coca-Cola has over 185 (one hundred and eighty five) plants all over the nation.


The effect of depression in economic activities on most organisations is that sales drop, there are no sales in some cases for a long time, this lead to closure or liquidation of such company. So since the consumers are either unaware of the organisation’s product offerings or have developed a stronger habitual behaviour on the use of a particular product been offered thereby leading to death of close substitute in the market place; then the significance of sales promotion becomes unavoidable.

Among all the strategies being adopted by an organisation to achieve its goals and objectives, there are still some serious problems confronting the companies as they do not operate in a vacuum, they operate in an environment which has its aim effect on the patronage of those organisations.

So, the problem presented in this work is to find out:

a. How often is sales promotion used as marketing tools.

b. To suggest ways in which organisations can effectively apply the sales promotion tools which will encourage the organisations to maintain an optimum profit level.

c. To help scrutinise the obstacle, both internal and external that militate against effective usage of sales promotion as a marketing strategy.

d. To access the level of satisfaction from the marketing activities being carried out in Nigeria.

e. To make possible forecast in the degree of sales performance when sales promotion is used.

f. To discover how effective is sales promotion when adopted as a marketing strategy.

g. To find out how sales promotion provides last minute and specific inducement that may attract marginal consumers.

h. Finally, to find out the role of sales promotion in the marketing of a product.



In consideration of the problem identified, the objective of the study includes:

1. To determine possible way of inducing consumers through sales promotion.

2. To examine how sales promotion contribute in stimulating sales performance of an organisation.

3. To examine the effectiveness of sales promotion on marketing activities and make recommendations where necessary.

4. To determine possible way of using sales promotion to create awareness of a new product and enhance sales volume of the organisation.



This aspect of the research work involves research question, which will serve as a guide to solve the research problem.

a. Is sales promotion used by Nigeria organisations as a marketing strategy?

b. Is sales dependent on sales promotion?

c. Does sales promotion really act as a tool in motivating customers?

d. How often is sales promotion used as a marketing tool?

e. Does sales promotion really help to facilitate introduction of a new product in the market?



The business of consumer-oriented organisation is the provision of good and services, what depend entirely on consumers for its existence.

So, it is the duty of this organisation to determine how they are going to motivate the consumers in the face of intense competition of various brands or related brands.

The significance of a study of this nature is to find out whether sales promotion can be an effective tool for a higher sales level, to create awareness about a new product, to increase

sales performance, to stimulate demand and convert potential buyers into actual buyers and if it can perform all this function as listed, it is recommended.



a. H0: In an organisation, sales performance is not dependent on sales promotion.

Hi: In an organisation, sales performance is dependent on sales promotion.

b. H0: In an organisation, sales drop is not as a result of the ineffective use of sales promotion.

H1: In an organisation, sales drop is as a result of the ineffective use of sales promotion.



The research work is limited to staff and consumer of Nigeria Bottling Company. Though many problem were encountered in carrying out this work, that is the obstacle, but to fulfil every obligation by making sure that this project is completed, I still tried to make things work out appropriately:

Thus, these are the limitations:

i. FINANCE: Finance is the first problem I encountered, which really restricted my research to certain level, such as the cost of travelling from Ebonyi (Abakaliki) to Onitsha whenever an information is needed and also the cost of browsing the internet for information.

ii. TIME: This was also an inhibitive factor to this work in the sense that there was not enough time to visit a large number of consumers, which I was supposed to have visited for personal interview and questionnaire administration.

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iii. RISK: This is another factor ensuring that all questionnaires administered to the customers were not left out during conversation of information which contributed greatly in hindering the carrying out of this project work. The risk as well associated with travelling from Abakaliki to Onitsha which is the area of study that may not be let out


INCENTIVE: These are supports given in terms of gifts or discount.

MOTIVATION: Inspiring one’s mind or ginger up an action in one.

BRAND LOYALTY: This is being addicted to a particular product out of habit.

INNOVATION: This brings out ideas or creating and introducing acts.

LIQUIDATION: This is operating in zero level thereby leading to folding up.

CONGLOMERATE: These are group or chain of companies jointed together.

DEPRESSION: This is a persistent fall or drop.

EXPLOSION: These are outburst of event.





The term “marketing” has been defined by different scholars and marketing practitioners. All marketing definitions points towards the same direction as to the fact that it involves personal and organisational relationship involving an exchange or interaction and needs and wants through set of activities.

According to the American Marketing Association (AMA) defined marketing as the process of planning and executing the conception of pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organisational goals.

Pride and Ferrel (1995) view marketing as consisting of individual and organisational activities designed to sense and serve the consumers’ needs and to facilitate and expidate exchange with a view to achieving the goal of the individual through the dissatisfaction of the consumer needs.

Marketing according to Kotler (2000), is defined as a social and managerial process by which individuals and groups obtain what they used through creating and exchange products and values with others.

While Nwokoye (2000) also defined marketing as the set of activities which facilitates exchange transaction of economic goods and services for the ultimate purpose of satisfying human needs and wants.

Generally, these marketing definitions have several significant implication. Some of its aspects are managerial, the entire system of business action should be market or consumer oriented. The needs or wants of the consumers must be well recognised= and satisfied effectively.

Marketing at this point is a dynamic business procedure totally integrated rather than a fragmented assortment of institution and functions.

Therefore, it should be noted that most definitions from pre-economy, legal and social economic point of view and marketing abound. So a satisfactory definition should be taken into consideration. The modern level of sophistication in today’s marketing.



Most time, there are conflict as to what business philosophy should guide organisational marketing efforts; what weight to be given to the interests of the organisation, the consumer and the society.

Marketing activities as practiced today is to be carried out based on some well thought of philosophy so as to ensure effective and responsible marketing. Kotler (2000) identified five competing concept under which an organisation can conduct its marketing activities. Such business concept are production, product, selling, marketing and societal marketing concepts.



This concept points to that consumers will typically favour those products that are low price and widely available, therefore managers of production oriented companies focuses more attention in achieving high production efficiency and wide distribution coverage. This is seen where the demand for product in particular exceeds supply because consumers care about. The availability and affordable price level. In the oldest concept guiding the producer and sellers.



This states that consumers will always favour those product that are of excellent quality, performance and feature, marketing executives at this point focus their attention and energies on making such products and improving them over time. This concept leads to marketing Myopia and induce concentration on the product rather than their need.



This concept implies that consumers, will typically show inertia towards product offering. The marketers therefore need to focus on aggressive selling and promotion.

Selling attitude has been adopted by most firms when they produce unsought goods or when having over-capacity, their aim is to sell what they make than make what they can sell. This concept belief that products are “sold not bought”. As a result of this, it is good to use a well trained and effective salesman in executing it with some promo-tool application.



This concept according to Kotler is a management philosophy which assumes that the ultimate aim of a business is to satisfy the target market at a profitable volume in the most effective and efficient manner, through proper identification of needs and wants of such target. This concept enable us understand that consumers have different needs and wants and consumers can be grouped into various market segment based on this.

It can as well be specified that consumers will only purchase the products of the organisation that are best fit to satisfy their basic needs and wants. And finally, the responsibility of the organisation to identify those needs and wants through research and chosen target market which it can best satisfy in the most effective and efficient manner.

In the economic theory, it is the firm’s commitment to the time-honoured concept called “consumer sovereignty. The concept proposes that the determination of what to be produced should be in the hands of the consumer, not in the hands of the government nor the firm.



This concept recognise the importance of customer satisfaction and profit for the success of the business organisation. It stresses that the goals should not be achieved at the expense of the society. It also emphasise that an organisation may in the short run totally satisfy its consumers (i.e. in line with marketing concept). This also hold that it is the task of the organisation to determine the needs, wants and interest of the target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhance the consumers and society’s well being at large.



this is any paid form of non-personal presentation of ideas, goods or services by an identified sponsor.

This definition can be used as an evidence to prove that both market advertising campaign and sales promotion campaign have a common ground, both has the same image and same brand identity.

Therefore, in most cases, it could be difficult to believe that advertisement and sales promotion were for the same product or service. In effect, the consumer is being bombarded with two or more identities of same brand.

This is though tolerable when the brand is well established and is doing well. However, most potential effect can be neglected by this adoption of dual strategies.

An integrated campaign where the advertising and sales promotion convey and reflect the same creative positioning can maximise total effect.



According to A.O. Udeagha (2003), personal selling is process of canvassing for the sale of a company’s products or services by a sales man and woman. Is a dyadic process involving direct contact between the seller of a product and prospective buyers through oral, face to face, telephone discussion or written mail, exchange of ideas, thoughts and opinions.

Promotion, therefore in the modern marketing calls for more than just developing a good product , pricing it alternatively and then making it available to the target market, it as well involve effective communication to inform their customers about this product to be presented. It involves a complex communication system to communicate with its various publics like consumers, middlemen e.t.c, through the use of the promo tools.

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sales promotion according to Kotler and Armnstrong (2001), “consist of short term incentives to encourage purchase or sales of a product or service. Nkem (1990)defined sales promotion as marketing communication effort articulated by business carefully planned, organised stated, directed, monitored, controlled and carried out by marketing men and organisation with end view or objective of increasing sales volume or generating sales. Such activities includes free gifts, price of a sample, contents e.t.c aimed at wooing, enticing or luring consumers to make a purchase or take buying decision that will eventually result sales of a particular product, merchandise or service.



according to Andrew (1981)is concerned with ensuring that the organisation takes advantage of the opportunity in the market by attempting to meet consumers needs as closely as possible. And this can be achieved by concentrating on the (four) 4 P’s of the marketing. This 4 P’s includes:

i. Product

ii. Price

iii. Place (Distribution)

iv. Promotion

i. Product: This refers to anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need. It include more than just tangible goods, but broadly defined as physical objects, services, person, place, organisation, ideas or combination of all these entities.

ii. Price: This is the amount of money charged for a product or the benefits of having or using the product or service. Price can be negotiated between the customer and producer or seller, who might offer discount, trade in-allowance and credit terms to adjust to prevailing competitive levels.

iii. Place: This includes company activities that make the product available to the target consumers which satisfy time and possession utility.



Coupon is the most important technique in sales promotion, it is published on the media or direct to the consumer. It is the means by which the manufacturer deals directly with the consumer. It simply requires the retailer to accept the coupon against the purchase of the nominated product for which a handling allowance is paid. We must understand that the manufacturer uses the coupon predominantly in an attempt to deal directly with the consumer rather than via the retailer.

Other techniques being used includes: sweepstakes/contest samples, premium, price deals and a combination of varieties of techniques.



A good promotion is not just a “gee whiz” idea, but can only be developed after careful consideration of the market, the product, the product positioning, marketing strategy and with reference to market research.

So, promotion strategy be 2.7 derived ad objective act. It is after this process has been undertaken that the creative elements of the promotion can be devised.

Clinton Peterson for this reason argued “for more intelligent use of sales promotion techniques, that sales promotion should be an integral part of marketing mix” moreover, when used in an integral fashion with elements of the marketing mix like advertising, public relation e.t.c the effectiveness of the whole marketing effort is improved.

Therefore, a good sales promotion are effective sales promotion; that is those which are based on a formal marketing strategy and can achieve the set objective.

Creativity is very important as a constituent element of effective sales promotion. But creativity for its own sales is not enough. It is the ability to meet objectives, both short and long term that makes sales promotion a most effective tool in the marketing armory or weapon.



According to E. Jerome Meeanthy (1964: 643) defined it as that type of selling which involves direct face to face relationships between sellers and potential customers.

Strategy therefore influence the role assigned to personal selling activities. Frequently, it is the responsibility of sales persons to call on the wholesaler and the retailer to achieve product distribution. And to stimulate their support in promotion of goods and services.

Personal selling as opposed to advertising is the oral presentation on face to face persuasive communication, which requires intake of information about the product and the prospect. If the communicative output or sales promotion is to be effective.



Sales promotion as a marketing tools has effective impact on promotion. There are some questions that can be asked, how effective is sales promotion? What is the nature of its effectiveness? Does it bring about extra penetration of the market that will yield new buyers for the product?

Most people (Researchers) revealed that the research conducted on the effectiveness of sales promotion carried out by coca-cola, soft drink, showed that the brands share of the market rose by a very high percentage above other competing brands.

The nature of this effectiveness of sales promotion showed that sales promotion could serve both short and long-term objectives in a marketing effort. So, we can say that the effectiveness of sales promotion yield new buyer for the product being promoted and as well leads to more purchase by the existing customer.

Sales promotion therefore, is an effective and reliable marketing tool as well as a promotion strategy that can be dependent upon for marketing success.



Though mismanagement often occur in sales promotion, Kennedy (1984: 125), identified that the main reason for bad management of sales promotion is due to the overall expenditures on it not being properly recorded.

Most companies regards sales promotion as advertising while some are part of sales force expenses. Other as general marketing expenses, and in the case of giving extra quality labels to announce a special offer, some companies take sales promotion as a marketing expenses.

Kennedy (1984: 05) “said that the loss for a limited in sales revenue from special price reduction is often not recorded at all by some companies.

There are many steps to be taken in other to have effective management of sales promotion expenditure.

Also, within a total strategy for sales promotions, objectives for each promotion must be closely stated such as repeat purchase, display and distribution in a specific manner.


Historically, it can rightly be said that the use of sales promotion techniques in Nigeria modern marketing started with the multinational trading companies like the Kingsway, Leventis and U.A.C stores.

Activities of sales promotion comes mainly in form of money offers and offers of gift items like balloons and Christmas free gift. Such offers were seriously backed up by intensive publicity and advertising to draw the attention of the public. It is recorded that these seasonal offers resulted in high customer traffic and greater patronage for product of these companies.

Nigeria early sales promotion effort was the inclusion of gift item like pencil, pen, ball, toys, erasers and balloons, inside the product pack like tooth paste and detergents.

In the late 1980’s sales promotion witnessed a dramatic change in the marketing scene, which marked the beginning of what is now described by Nigerian marketing exports as the “high profile promotional era” and is characterised by cash and other incentives of customers.

The Nigerian bottling company for instance in 1987 launched a promotional campaign tagged “animal kingdom promotion”. So as to create market for specific one of the mineral water bad. The 7up Bottling company which is one of the Nigerian largest soft drink also launched an aggressive attack by re-entering into the soft drink industry to compete with sprite. The aggressive re-entry campaign effort that ushered in the war between the 7up Bottling company and Nigerian Bottling company. The gifts offered in contemporary Nigeria. Sales promotion scene ranges from houses to motorcycles, car, deep freezers, colour television, video sets and sewing machines.

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The popularity of sales promotion as a strategy in Nigeria has led to a significant increase in the promotional goal budgets of the companies that uses sales promotion, as sales performance.




The following conclusion were reached at a paper presentation to the Euro-promotion 1979 in Brussels in relationship between social values and attitudes to various methods of sales promotion.

i. Ever since 1975, there had been a growing polarisation of attitude to sales promotion with growing number of consumers either positively disliking or positively enjoying various promotional techniques.

ii. The social value, linkage indicated that some sales of positive links were virtually assures an excellent future. First of its others, is imbalance if one is successful in isolating the trend sellers and investigating their value and behaviour patterns, as one has a vital key towards predicting future social change.

iii. Large variation in changes of support between the various sales promotional methods.



The consumer market industry is undergoing a more dramatic form that result changes in the wants and needs of consumers and for a company to survive, it needs a new orientation towards determining the needs of the consumers and satisfying them in the most efficient way.

Company has different strategies towards the target market. The success of each strategy depends on the situation in the industry. The use of sales promotion is considered the best strategy in a competitive environment (consumer market), so as to help induce both current and potential buyers to patronise.

Therefore, for any company to be successful, there is need to introduce sales promotion activities periodically to counter competition as well as to increase the company’s share of the market where favourable and also clear problems for the future survival.

These call for segmentation approach which is developed so as to allow for more penetrating analysis and understanding of customer reaction to sales promotions and for out living the key factors in developing existing or new methods for promoting sales.

Finally, we need to discuss two key issues. The first involves the distinction between “trend sellers” and “trend followers”. And the second is concerned with the change in fundamental values leading to a move away from concern about the material, physical and tangible aspects of one’s life towards more tangible qualities.



The emergence of new values, life styles, attitude and behaviour is always initially associated with a relatively small segment of the population. As a group, they have little importance from an immediate mass marketing point of view.

However, these trend-refers are extremely influential on much larger section of the society, these recall the trend followers.

The consumer industry is seriously talking on a more dynamic form, as a result of changes in the wants and needs of individual for a company to survive, it requires a re-orientation towards determining the uses of the customers and satisfying them in the most efficient way.

There are different company strategies towards the target group, the success of each strategy depends on the situation in the industry. In a competitive environment (consumer market), sales promotion is the best strategy as it helps induce both current and potential consumers to patronise such product.

To all intents and purpose, the inclination of this study has been to highlight the sales performance occasioned by sales promotion with a view to knowing what promotional tool(s) organisations should concentrate more effort on.



The result revealed an improved standard in the use of sales promotion by soft drink companies in Nigeria as a means of improving their sales as well fighting competition. Since they operate in an environment, which has its effect on the performance of the organisation, so we here find out the effect of the following:

a. How sales performance is dependent on sale promotion in an organisation.

b. How sales drop as a result of ineffective use of sales promotion.

c. To also find out how often is sales promotion used as a marketing tools.

d. To find out how sales promotion provides last minute and specific inducement that may attract marginal customers.

e. To help find out how sales promotion induces or influence consumers to buy more of the organisation product.

f. To know the internal and external environmental factors that could hinder the effectiveness of sales promotion.

g. It was to find out the type of sales promotion tools that appeal more to consumers and the one they are currently using. It was also to know if sales promotion is the major marketing tool for increase in demand for the company’s product as to increase sales performance.

h. To find out if consumer habitual purchase leads to lower sales during period of sales promotion and after sales promotion.

i. To find out if there is need for the organisation to still carry out sales promotion.

j. To know how consumers rate the company’s level of the use of sales promotion strategy to change the consumer habitual purchase behaviour and if the quality of product worth its rates of sales promotion.



For proper improvement in the organisation, the company must compete favourably an achieve their goals and objectives. It is also recommended that sales promotion should be used from time to time as a marketing strategy. And the staff should be well trained in the area of marketing as it is the collective responsibility of everybody involved in the management of the organisation to create positive image of the organisation in mind of consumer.

In adoption of the above recommendation, management should be mindful of such environmental factors as competition in the industry, legal provision and consumer habitual purchase decision which are of importance in application of sales promotion as a marketing strategy as well as the technological environment, culture, and government policies than may either hinder the effectiveness of sale promotion.

It is also recommended for the organisation to carry out marketing research to find out what sales promotional tools appeals more to the consumer and consumer reaction to sales promotion as it would help in the determination of what the consumer expects from the organisation.


Though marketing is said to breed competition but because the rational consumer is faced with a lot of intense persuasion by competing organisation through various types of sales promotional tools, only organisations that are able to determine the type of sales promotional tool, the consumer prefers will highly be patronised.

According to Kotler and Armstrong, when developing sales promotion programme, the marketer must decide on the size of the incentive. A certain incentive is necessary if the promotion is to succeed, a larger incentive will produce more sales response.

Also, condition must as well be set for participation. Incentive might be for everyone or to selected groups. The marketer must decide how to promote and distribute the promotional programme itself. The length of promotion is also important, the budget of the sales promotion is also determined.

The sales promotion programme is evaluated to determine if it has achieved its purpose, this is done by comparing before sales promotion during sales promotion and after sales promotion programmes.

Finally, sales promotion may not be a final strategy of satisfying the consumers but it can serve as a means of satisfying the consumers as well as improving the company’s sales.


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  1. Please i just need to know whether the complete project topic is still actually available before i order for it?. Thanks

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