CHAPTER ONE

1.0INTRODUCTION

One of the most important and bewildering

promotional tools of modern marketing management is

sales promotion. Sales promotion is bewildering because

of its typically tagged effects and also the difficulty of

isolating its effect from other elements in the marketing

mix.

Moreover, sales promotion as a subject matter could

be referred to as a “catch all” for those short term

marketing activities which act as an incentive to stimulate

quick buyers action such a coupons, sweep take, context,

premium, free samples, trading stamp and the like.

Sales promotion is, however, a sub-section of the

total promotional and communication mix. The term

promotion in its broadest sense means to move forward.

However, in the business field; it is referred to as the

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communication activities of advertising, personal selling,

publicity and sales promotion. The blend of these

promotional activities is referred to as the promotion mix

or tools. The emphasis that is placed on each element in

the promotional mix considering sales promotion varies

according to the product types, product characteristics and

other variable factors including the company’s resource

product within the firms competitive strength and

weakness, managerial style and philosophy.

While the other communication elements with which

promotion must be coordinated are the product itself,

price of the product and the choice of distribution channel.

The components of the product communication include the

brand name, product design, package colour, product size

and shape, trademark, label, task, and so on. These

product physical features provide the consumers with

subtle messages about the total product offering, the fact

remains that the physical product itself can communicate

a great deal of information to the prospective buyer.

Without some sense of functional relationship

between sales and promotional expenditure, it becomes

very difficult to know how much to spend on sales

promotion due to the fact that the potential value is being

testified to by Nigerian companies which engages in it.

Companies in this circumstance tend to resort to simple

rules for setting the sales promotion budget that may work

satisfactorily in practice but are not likely to represent an

optional level. In the case of MTN Nigeria sales

promotional activities are being carried out at least twice a

year, one in the beginning of the year and the other during

festive periods.

Furthermore, sales promotion expenditures are

growing rapidly in other nations, both socialist and

capitalist economy of the world. Although marketers often

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tend to disagree about the relative value of the various

marketing functions and activities, those who are

knowledgeable recognizes the significance of sales

promotion in today’s business world and environment.

How can a new product conceivably achieve success

without the process of sales promotion? What method(s)

could possibly compare with the enormous impact made

through the sales promotional media on a product or

service? It is unlikely that without the power of sales

promotion a new product could reach its potential market

that their interest be drawn to the good offering provided

and developed and that how in the world of business

activities and competition could an old product continue to

prove successful in terms of increased sales without sales

promotion in highly competitive environment.

Statistics revealed that over 62.3% of the products

that are promoted via sale promotional strategy

succeeded.

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1.1 BACKGROUND TO THE STUDY

Sales promotion consists of a diverse collection of

incentive tools mostly short term, designed to stimulate

quicker or greater purchase of particular products or

services by consumers or the trade.

Every promotional or communication mix has its own

impact on product performance which are obviously in the

tools. In the case of sales promotion research and

statistics relating to the intrinsic attributes of a particular

product, which is not necessary in line with its specification

conducted has been encouraging. More so, statistics

reveal that products that are promoted through the sales

stimulating device of sales promotion have a high

tendency of succeeding. To encourage the plight, products

have been used for a particular sales promotion on more

than two occasions with great progress.

The sales executives and managers in MTN Nigeria

Communication Limited have subscribed their best in

terms of feasibility study, marketing research, and

recruitment of competent sales personnel to man the

uncreative sales job.

Moreover, the sales force has shown adequate

seriousness of purpose, some sees the fieldwork as a

means of achieving a meaningful sales target.

The core tools of promotion among others are

referred to as the communication activities of marketing

which are:-

a) Advertising

b) Personal Selling

c) Publicity (Public Relation)

(a) ADVERTISING:

This is defined as any paid form of non-personal

presentation made by an identified sponsor through a

mass communication medium on behalf of goods, services

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or ideas. It could also be a form of creating awareness of

an existing, or a newly launched product in the market for

both the potential and current buyers to know exactly

where they can get the product, when to get it, and how to

buy it, and also the price at which the product will be

bought at a given period of time.

Considering the product quality, package, and the

brand which the product is made-up of through the

following advertising media, such as: Television, Radio,

Newspaper, Journals e.t.c. all these media are functioning

as a means of persuading both the new and potential

consumers to take a particular course of action, or to

reach a point of view with the aim of stimulating sales.

(b) PERSONAL SELLING:

This is a form of person-to-person communication in

which a seller attempts to assist and/or persuade

prospective buyers to purchase the company’s product or

service or to act on an idea. Personal selling is also a

process of making an oral commercial representation

during a buyer/seller interview situation. It is some times

known as the buyer/seller interface. In general personal

selling facilitates an immediate response.

(c) PUBLICITY/ PUBLIC RELATION

Publicity refers to a non-personal communications

regarding an organization, product, service, or idea not

directly paid for or run under identified sponsorship. It is

also the process of serving public attention for messages

to be imparted unlike, advertising which is a form of non-

personal communication to a large group of people, paid

for by an identified sponsor. Publicity is always and usually

in the form of news or editorial comment about a

company’s product or services.

Public relations on the other hand refer to when an

organization systematically plans and distributes

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information in an attempt to control and manage its image

and the nature of the publicity it receives.

Public relation is, however, defined as “the

management function which evaluates public attitudes

identifies the policies and procedures of an individual or

organization with the public interest and executes a

programme of action to earn public understanding and

acceptance.

In a nutshell, the effectiveness and efficiency of a

particular sales promotional tool used is vested in the

coordinated activities of advertising by spreading the

messages across to the prospective buyers, both by

personal selling, publicity/public relation are widely used to

convey useful news about the product. Publicity activities

may therefore be carried out by the company’s marketing

personnel, or public relation officer, by advertising

agencies or by public relation consultants.

1.2 STATEMENT OF THE RESEARCH PROBLEM;

Basically, in a social science research, there is a

problem that work tends to find solution to. Some of the

discussions in the company among the top management is

centered on how to improve the performance of their

products, that is, how to stimulate the sales of their

company’s product.

In this study, however, the statement of the research

problem has been logically formulated from the central

theme which is sales promotion. Promotional mix is

generally believed to be the blood of the business and it

can not be done away with especially sales promotion

which also wins customers from the company’s

competitors and get their repeated purchase.

But some companies and organizations are still

lacking behind in this marketing effort. The companies that

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are unaware of how vital and important sales promotional

tools are needs to be informed to enhance their stipulated

objectives of profit maximization through increase in sales

volume which will invariably increase the company’s

market share.

Moreover, some companies that are already making

use of this tool can not under estimate the boost it gives to

their sales volume despite the fact that they are also

embarking on other promotional tools such as advertising,

personal selling etc.

It is in the light of this, that the following are stated

as the research questions which would be analyzed in the

research work itself.

1) Would sales promotion boost company’s profit at all?

2) Would sales promotion boost company’s sales

volume at all?

3) Would sale promotion affect or influence customers’

 behaviour or buying decision?

4) Whether sales promotion is a suitable media for

promoting the products offered for sales?

5) Whether the medium of sales promotion selection

can achieve the desired result?

1.3 PURPOSE AND OBJECTIVE OF THE STUDY

First and foremost, sales promotion can be defined as

those activities or devices that are designed to create

activities (such as those used in sample display,

demonstrations, fashions, shows, coupons, premium and

special sales) that not only supplement advertising and

personal selling but also co-ordinate and make them

effective which therefore boost company’s sales volume

and thereby cause an increase in profit

Having conceptualized the meaning of sales

promotion in the attainment of company’s sale volume.

The research objectives shall include finding out.

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 1) The relationship that exist between sales promotion

and sales volume.

2) The suitability of the sales promotion media adopted

with the nature of the product in question.

3) The extent to which sales promotion can affect and

influence consumers’ behaviour and buying decision.

4) The effect of sales promotion on company’s image.

1.4 JUSTIFICATION FOR THE STUDY

Many company’s marketing managers had been

struggling thoroughly to increase the sale of their

company’s products, market share and profit and they

have had little or no achievement on this goal of theirs

which may invariably drive them out of the market place

or even cost them their jobs if the company’s products

eventually dies.

So therefore, in the light of this, carrying out this

study and research work will be of immense benefit to

such companies and their marketing force. Moreover, it

will be of great assistance and help to companies which

have experienced endless problems in the declining state

of their products performances in the product lifecycle.

It will also be useful to future researchers as a

reference on the basis of research work.

More so, this study will be of great advantage of the

management of MTN Nigeria Communication Limited and

other telecommunication companies in designing their

framework of promotional activities (i.e. sales promotion)

in order to gain a higher and relative market share, to

increase profitability, even though it is difficult

to quantify precisely to what extent one can increase

demand to the point where economies of scale can be

achieved. This theme is of immense importance to all

marketers and sales managers who desire an increase in

their sales volume, market share and profit.

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 Furthermore, this study will bring into focus the effect

sales promotion will have on consumers buying behaviour

and its influence on business activities in MTN Nigeria

Communication Limited, Companies, enterprises,

organizations and researchers who are interested in seeing

a boost in their sales volume and an outstanding increase

in their market share and profit will find this research work

useful.

1.5 SCOPE OF THE STUDY

This research work examined sales promotion to be a

marketing tool and marketing strategy to boost company’s

sales volume. So therefore the research work only covers

the period between 2001-2008 of the sales promotional

activities of MTN Nigeria and only one of the promotions

that has been carried out within the time frame was

considered and analyzed.

This study covers the headquarters of MTN Nigeria

Communication Limited situated in Lagos State and one of

the branches located along Muritala Muhammed way Ilorin,

Kwara State.

At the end of the research work we actually would

have seen sales promotion to be a booster of sales, market

share and company’s profit.

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 CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

Literature review refers to that exercise of going

through existing publications on a particular topic. The

exercise is necessary in any research because of the

advantages the researcher stands to benefit from such.

One of the main advantages is that it helps to widen the

knowledge of the researcher and the readers alike on the

topic or subject at hand and they will have a better

understanding of the topic.

The various research frontiers in the field are also

known and the researcher is thus adequately guided and

does not just embark on a wide goose chase.

2.1 THE CONCEPT OF SALES PROMOTION

The term promotion originated or emanated form the

Latin word “promovese”, which means to move forward, to

advice and to expand.

From the business view point, promotion can be

defined as any marketing or communication activity that

attempts to persuade, inform and remind an individual to

re-sell, accept or use a particular product brand or idea for

either personal or institutional purpose(s). More so,

promotion as a communication tool is the process of

transmitting or disseminating information through a

message channel to a receiver in an effort to share

knowledge.

According to Stanton, promotional mix element

comprise of personal selling, publicity, sales promotion,

public relation, advertising and direct marketing.

Each of us has been on the consumer end of these

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intricate promotional webs that have been woven to make

us buy and keep on buying certain products. We know the

nagging voice that keeps accusing us of being willingly

manipulated.

Consequently people often misuse the term sales

promotion which is not entirely the same. It should

therefore be noted that sales promotion is simply an

aspect, a part, a fragment and an iceberg of promotion or

the promotional activities as a whole.

According to Cole, G.A Sales promotion activities are

a form of indirect advertising, designed to stimulate sales,

mainly the use of incentives.

According to a British Author. John Frain, sales

promotion usually compliment an organizations

advertising, personal selling efforts, and publicity efforts. It

also includes those marketing activities assigned to

encourage the product users to purchase at the point of

sale. It also enhances dealers’ effectiveness and effective

responses. Such sales promotional exercise may take the

forms of product demonstration, exhibition, and premium

offer and so on.

According to Cole, G.A Sales promotion activities

are a form of indirect advertising designed to stimulate

sales, mainly the use of incentives.

According to a British Author, John Frain, sales

promotions usually compliment an organizations

advertising, personal selling efforts, and publicity efforts. It

is also includes those marketing activities assigned to

encourage the product users to purchase at the point of

sale. It also enhances dealers’ effectiveness and effective

responses. Such sales promotional exercise may take the

forms of product demonstration, exhibition, and premium

offer and so on.

The American Marketing Association (AMA) in its own

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words and opinion defined 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, demonstrations, and various non

recurrent selling efforts not in the ordinary routine. This

very broad definition embraces much kind of activities

including in store displays, sampling coupons, contests,

trading stamps, trade shows, price –off deals, premiums,

refund offers, sweep takers and rebates.

Sales promotion boost sales by adding value to the

product or service offered and it is a short term strategy

for increasing sales. The innate value of the product or

service has not changed-the day cleaning service is

performed the same way with or without the coupon, and

the book in the bookstore has not changed. Then what has

changed the value of the offering? It’s relationship to price.

In both cases you have been given an incentive – a reason

to buy something other than the product or service’s

inherent benefits.

The strategic thinking behind those incentives is

where the magic of sales promotion takes place.

Incentives encourage specific behaviours. They can shift

the buying habits of individuals, giving an excuse to try a

product, to increase the use of a product or to remain loyal

in the face of competitors’ promotions.

Sales promotion is typically used at the point of

purchase to motivate consumers to complete an

exchange. It is not a substitute for a promotional

programme; instead, it is used to supplement other

promotional activities. Sales promotion, however, can go a

long way towards creating awareness and favourable

attitude –generally the domain of advertising.

According to a school of though, marketers frequently

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employ sales promotional exercise to improve the

effectiveness of other promotional mix ingredients

especially advertising and personal selling. Furthermore,

sales promotions are usually designed to produce

immediate short run increase in sales.

It is thus viewed as a part of the more comprehensive

areas of promotion. Sales promotion encourages those

specialized activities other than personal selling, publicity

and advertising which are calculated to make mass

advertising and personal selling more effective in bringing

about its partnership and in moving goods especially from

the manufacturer to the final consumers. From this

definition, it can therefore be seen that sales promotion is

any marketing activity that is designed to make all other

marketing activities more efficient and effective.

In general, sales promotion is basically a motivational

activity whose efforts are principally aimed at three groups

of people normally the consumers, companies’ salesmen

and the middlemen.

According to Kotler, these are being classified into

those for Dealer promotion (e.g. free goods, merchandise

allowance, co-operative advertising e.t.c.), sales force

promotion (e.g. bonuses, contest etc), and the consumer

promotion (e.g. samples, coupons e.t.c).

However, sales promotional tools possess two

distinctive qualities which are:

1) Insistent presence: - Many sales promotional tools

have an attention gathering quality that breaks the

habit of buyers initial towards a particular service.

2) Production devotions: - Some of these tools

indicate that the seller is very anxious for making

the sales, for they are used too frequently, or

carelessly, they may lead the buyers to wonder

whether the brand is as a desirable or reasonable

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 force.

According to Kotler, Sale promotional techniques

make three basic contribution exchange relationship. They

are:

i) Communication: They gain attention and usually

provides information that may lead the consumer

to the product

ii) Incentive: They incorporate some concession,

inducement, or contribution designed that

represent value to the consumer

iii) Invitation: They include a distinct invitation to

engage in the transaction now

Practically, we continuously think of advertising, but

when it does not use mass media it falls into the

categories of sales promotion.

Sales promotion can equally be defined on a

deliberate short term device, comprising of activities which

include above the tine media advertising that work

towards aiding sales representatives, marketing

executives and distributors to achieve more at the point of

sales.

In the recent years, sales promotional activities in

Nigeria has increasingly or tremendously improved,

because it has become necessary to stimulate consumer

buying action in addressed economy. Sales promotion is

efficient and effective in doing this because it is extremely

visible. It often appeal to something for nothing instinct in

people and usually brings about an immediate buying

response.

Most consumers dissatisfaction today with respect to

even convenience goods could be alleviated by a good

sales promotional programme like in other marketing

activities, their exist stiff competition in convenience

goods. Some marketers though that, it is important to

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promote their products, goods and services as a result, the

products have not been brought awareness of the

products and users.

The ignorance of the benefits of sales promotion,

have a great impact on the sales revenue and profits and

competitive ability of the organization.

Thus, sales promotion as a promotional and

communication toll uses these methods to implement

effect and show how the sales volume of an organization

can be boosted.

2.2 OBJECTIVES OF SALES PROMOTION

The basic goals, or aims of sales promotion are very

similar, or identical to those of advertising and personal

selling, however, five specific objectives of sales promotion

are highlighted here:-

(i) To introduce new product: - Sales promotions are

often used to motivate consumers to try a new product, as

to induce business buyers to accept it for re-sales.

The objectives is used to stimulate enquiries and this

is appropriate as a means of overcoming buyers resistance

to new product forms, returning of product forms,

requesting additional information about a particular

product or service or visiting an exhibition at a trade

association meeting can be induced by enquiries.

Marketing executives can generate enquiries by offering

such things as demonstration of a product, a free

catalogue, pre-marital screening or some premium or

prize.

(ii) To induce present customers to buy more:- Sales

promotion is a device that is used and is aimed at

stimulating present customers continuous patronage. This

could be as a result of brand loyalty occasioned by

efficient promotion or discovery of further uses of the

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product as in industrial product. It also encourages

customers to think of more ways and more occasions for

using a product.

(iii) To increase the inventories of business buyers: The

primary objective of such promotion exercise in any

business setting is to increase the inventory size of the

retailer. Theoretically, the more units of goods a re-seller

as in stock, the more aggressive he will be in selling to the

product users. Moreover, a manufacturer who sells in large

quantities can usually reduce his product and distribution

level. Hence, money or merchandise allowances are used

to encourage dealers to stock more products.

(iv) To counteract competition: - It helps to counteract

the competitive effects of co-company that is engaging in

the same product line and similar market share and

market opportunity.

(v) To increase inventories:- Sales promotion facilitates

an avenue of increasing the inventories of business

buyers.

Generally, sales promotion is marketing device that is

aimed at stimulating or regulating the demand for a

product. They, however, yield faster and more measurable

responses in sale than the other promotional mix

elements.

2.3 TYPES OF SALES PROMOTION

According to Stanton there are two types of sales

promotions, namely:-

i) Consumer promotion and,

ii) Trade promotion

(i) CONSUMER PROMOTION: - These are extra value

incentives directed at the final consumer in an attempt to

encourage a positive buying decision. It can also be known

as a consumer

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–oriented sales promotion where the planner takes into

account the type of market, sales promotion objectives,

competitive conditions, and each tool cost effectiveness.

The major forms of consumer promotion include coupons,

sample premiums, contests, and rebates and so on. It is

targeted to the ultimate users of a product or services.

We can distinguish between manufacturer

promotions and retailer promotions. The former are

illustrated by the auto industries frequent use of rebates,

gifts to motivate test-drives and purchase, and high value

trade in credit. The latter includes price cuts, feature

advertising retail coupons and retail contest or premiums.

(ii) TRADE PROMOTION: - This is a form of promotion

that is directed at providing members of the distribution

channel (wholesalers and retailers) an incentive to co-

operate with the manufacturer in promoting and selling its

products. It is also known as trade-oriented sales

promotion and it is targeted towards marketing

intermediaries such as wholesalers, distributors, and

retailers. It is, however, used to encourage the stock and

to promote a company’s products.

Manufacturers allocate a higher proportion of their

promotion tie to trade promotion tools (about 46.9%) than

to consumer promotion (27.9%) with media advertising

capturing the remaining 25.2% manufacturers award

money to the trade for four reasons.

a) To persuade the retailer or wholesaler to carry the

brand

b) To persuade the retailer or wholesaler to carry

more units than the normal amount.

c) To induce retailers to promote the brand by

featuring display, and price reductions.

d) To stimulate retailers and their sales clerks to push

the product.

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2.3.1 FORMS OF SALES PROMOTION

The major forms of sales promotion both for

consumer promotion and trade promotion, which can also

be known as the sales promotional tools, includes the

following:

i) Prizes: These are offers of the chance to win cash

trips, or merchandize as a result of purchasing

something.

ii) Contest, Sweep stakes and games: - A contest calls

for a consumer to submit an entry to be examined

by a panel of judges who will select the best

entries. A sweep stake asks consumers to submit

their names in a drawing. A game presents

consumers with something every time they buy-

bingo number missing letters which might help

them win a prize.

iii) Cash refund offers (rebates):- Provides a price

 reduction after purchase rather than at the retail

shop. Consumers send a specified proof or

purchase price by mail.

iv) Coupons: - Certificates entitling the bearer to a

stated saving on the purchase of a specific

product; mailed, enclosed in other products or

attached to them, or inserted in magazines and

newspaper ads. Redemption rate varies with mode

of distribution. Coupons can be effective in

stimulating sales of a mature brand and inducing

early trial of a new brand.

v) Premiums (Gifts):- Merchandise offered at a

relatively low cost or free as an incentive to

purchase a particular product. A with – pack

premium accompanies the product inside or on the

package. The package itself can serve as a

premium.

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vi) Price – Off (off-invoice or off-list):- A straight

discount off the list price on each purchase during

a stated time period.

vii) Allowance: An amount offered in return for the

retailers agreeing to feature the manufacturer’s

products in some way. An advertising allowance

compensates retailers for advertising the

manufacturer’s product. A display allowance

compensates them for carrying a special product

display.

viii) Free Goods: - Offers of extra cases of merchandise

to intermediaries who buy a certain quantity or

who feature certain flavour or size. Manufacturers

might offer push money or free specialty

advertising items to retailers that carry out the

company’s name.

ix) Cross promotion:- Using of brand to advise another

 non-competing brand.

x) Tie –in promotion: - Two or more brand or

companies team up on coupons, refunds, and

contests to increase pulling power. Multiple sales

force pushes these promotions to retailers, giving

them a better shot at extra display and space.

Other consumer promotion and trade promotional tools

includes product warranties, trade contests, dealer trade

shows, push money, trade allowances, product

demonstrations, free trails patronage awards, point of

purchase (Pop) Displays and Demonstrations and a hot of

others.

Although sales promotional tools-coupons, contests,

premiums and the like-are highly diverse, they offer three

distinctive benefits, which are communication, incentive

and, invitation.

Companies use sales promotion tools to draw a

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stronger and quicker buyer response. Sales promotion can

be used for short run effects such as to dramatize product

offers and boost sagging sales.

2.4 FUNCTIONS OF THE SALES FORCE

A key of the sales is one of the information gatherings

which link up directly with the firms’ intelligence and

marketing information system. Sometimes, a sales person

will face criticism about the company from buyers which

marketing management would not necessarily learn from

other sources. Such criticism would relate to delivery or

quality, defects in comparison with competitive offering.

Competitive activity itself is a subject about which sales

staff can provide information, but care should be taken to

recognize when buyers ‘feed’ misleading information to

sales personnel in order to obtain some advantage from

them. The sales interview should some times for general

discussion related to market trends and developments.

The experienced sales person can now accurate a series of

marketing interviews. Ideally, sales staff should have a

good working knowledge of marketing research

techniques, and a good thorough understanding of the

need for, and use of, the whole marketing information

system. This will make them aware of why information is

requested of them and make them feel that, carrying out

the task is an important and worthwhile function.

In sales “representative” the word representative is a

precise term. He or she represents the company as an

ambassador would in national or diplomatic circles. For

this reason sales staffs fulfills an important public relations

role. Primarily, the sales person deals with the company’s

customers, and it is here that he or she should convey all

that goes to make up the company’s total image. A

salesperson that is habitually late or untidy will form a

prior impression in the consumers mind not only of that

39
salesperson but of the whole company, because for many

buyers the salesperson or representative is the only link in

the consumer –supplier relationship.

The salesperson’s role, however, is more far reaching

than for customer liaison alone. He or she, in a

professional capacity is always in the eye and should be

expected to protect and promote the company’s image

among all people that are contacted, that is, suppliers,

customers and competitors and so on. Sales personnel

also meet a wide variety of people at exhibitions, training

course and business related functions. In such situation

they are ideally placed to support the marketing effort of

the company they represent.

Sales staff can also contribute to the marketing effort

by participating in planning. They are the people who have

first hand knowledge markets and customers and can give

advice and opinion on such matters as pricing, credit,

discount, advertising, and a host of others. They can also

provide feedback after marketing plans have been

implemented. In particular sales staff can assist in sales

forecasting by providing both subjected and objective

estimates of sales trends- forecasting as specialist

procedure and salesperson should have training in its

practice, this should include statistical analysis and linked

closely to the requirement of sales staff to contribute to

the marketing information system (MIS).

Many companies provide their sales force with

‘leads’, or have other customers bases which are so well

established that there appear s little need for prospecting.

But prospecting for new business should be an essential

part of all sales activity, as well as finding new customers,

prospecting is also another method of exploring the

market.

Finally, the sales force should make a positive

41
contribution to new product development, sales

promotional programmes and activities and should be

encouraged to do this in formal manner. The sales force

can generate new idea by referring to customers

complaints which may show room for improvement, or by

informing management of how well competitive products

are being received.

2.5 SALES PROMOTION PLANNING

Just like any other business task, it is desirable to

prepare a full plan to ensure that each stage is attained, as

there are considerable numbers of stages during the

running of a particular promotion. An example of the sales

promotion planning stages includes:-

(1) Analyze the problem task

(2) Define the objectives

(3) Consider and/or set the promotional budget

expenditure

(4) Examine the types of promotion likely to be of use

(5) Define the support activities (e.g. advertising,

incentives, and auxiliaries)

(6) Testing (e.g. a limited store or panel test)

(7) Decide measurements required

(8) Plan time –table

(9) Present details so sales force, retailers, e.t.c.

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(10) Implement the promotion

(11) Evaluate the result

2.6 THE PROMOTIONAL MIX ELEMENTS

According to Eric McGregor (1971), promotion is a

fashionable word today. It simply talks about features of

something which people called “public” this is what sales

promotion does.

While, ‘Bidemi Osunbiyi defined promotion as the

marketing practice of temporary offered better value for

money.

Promotion can also be defined as any technique that

persuasively communicates favourable information about

a seller’s product to potential buyer.

In addition, promotion has been defined as the co-

ordination of all seller- initiated efforts to set up channels

of information and persuasion to sell goods and services or

promote an idea.
 The other promotional mix elements include personal

selling, public relation, publicity, advertising and direct

marketing.

2.6.1 PERSONAL SELLING

This is a form of person to person communication in

which a seller attempts to assist and/or persuade

prospective buyers to purchase the company’s product or

service or to act or an idea.

Personal selling is the most effective tool at later

stages of the buying process, particularly in building up

buyer preference, conviction and action. It also has

immediate feedback due to the fact that there is direct

contact between buyer and seller. Personal selling has

three distinctive qualities.

(i) Personal Confrontation:- Personal selling involves an

immediate and interactive relationship between two

or more persons. Each party is able to observe the

45
 others reaction at close hand.

(ii) Cultivation: Personal selling permits all kind of

relationship to spring up, ranging from a matter – of –

fact selling relationship to a deep personal friendship.

Sales representative will normally have customers’

best interest at heart.

(iii) Response: - Personal selling makes the buyer feel

under some obligation for having listened to the sales

talk.

2.6.2 PUBLIC RELATION

This is defined as “the deliberate planned and

sustained effort to establish and maintain mutual

understanding between an organization and its public

(Instituted Public Relations). It is relatively cheap, but

certainly not cheap. Successful strategies tend to be long-

term and plan for all eventualities.

Also, when an organization systematically plans and

distributes information in an attempt to control and

manage its image and the nature of publicity it receives, it

is really engaging in a function know as public relation.

Public Relation can also be defined as management

function which evaluates public attitudes, identifies the

policies and procedure of an individual or organization with

the public interest, and executes a programme of action to

earn public understanding and acceptance.

2.6.3 PUBLICITY

This refers to non personal communications regarding

an organization, product, service or idea not directly paid

for or run under identified sponsorship. It usually comes in

the form of a news story, editorial or announcement about

an organization and/ or its product and services.

Publicity also helps not only to relate constructively to

customers but also to a large number of interested publics.

However, publicity and public relation in being

47
misunderstood to mean the same thing. Although they

share certain similarities, the fact still remains that they

are not totally the same.

The appeal of publicity and public relations is based

on three distinctive qualities.

i) High credibility:- New stories and features are

more authentic and credible to readers than

advertising.

ii) Ability to catch buyers off guard: - Public relations

can reach prospects who prefer to avoid sales

people and advertisement.

iii) Dramatization: - public relations, yet well –

thought- out program coordinated with the other

promotion- mix elements can be extremely

effective.

2.6.4 ADVERTISING

This can be defined as a paid for communication. It is

used to develop attitudes, create awareness, and transmit

information in order to gain response from the target

market According to Shaprio (1973) advertising is a non

personal paid message of commercial significance about a

product, service or company made to a market by an

identified sponsor. There are many advertising ‘media’

such as newspaper (local, national, terrestrial, satellite)

cinema, outdoor advertising (such as posters, bus sides).

Advertising has the following qualities:

i) Public presentation: - Advertising‘s public nature

confer a kind of legitimacy on the product and also

suggests a standard offering. Because many

persons receive the same message, that motives

for purchasing the product will be publicity

understood.

ii) Persuasive Advertising permits the seller to repeat

a massage many times. It also allows the buyer to

49
 receive and compare the message of various

competitions.

iii) Amplified Expressiveness: - Advertising provides

opportunities for dramatizing the company and its

product through the artful use of print, sound, and

Cohan.

iv) Impersonality: - The audience does not fell

obligated to pay attention or respond to the advert.

Advertising is monologue in nature.

Advertising can be used to build up a long term

image for a product and it triggers quick sales.

2.6.5 DIRECT MARKETING

According to Kotler (2000), this can be defined as a

from of marketing communication in which the market

uses a customer database (a list and profile of current and

potential customers) and an advertising medium to

identify and communicate with a target market that is

highly likely to respond immediately to the marketers

offering with a measurable action (a request for additional

information, a complaint about a past transaction, or an

acceptance of the current offer - a sale).

This, however, involves a variety of activities;

including data base management, direct selling, tele-

marketing, and direct response through direct mail and

various broadcast and print media.

The components of direct marketing include direct –

mail marketing, mail – order marketing and direct

response marketing. Although there are many forms of

direct marketing – direct mail, internet marketing e.c.t, yet

they all share four distinctive qualities:-

i) Non public: - There message is normally addressed

to a specific person.

ii) Customized: - The message can be prepared to

appeal to the addressed individual.

51
 iii) Up- to date:- A message can be prepared very

quickly,

iv) Interactive: - The message can be changed depend

on the person’s response.

2.7 TEN COMMANDMENTS FOR CREATIVE

PROMOTION

According to Osunbiyi, Creativity is a phenomenon that

enjoys a wide acceptance and application in promotion.

Creativity is not only limited to the advertising sphere.

Efforts such as sales promotion require a structured,

organized and good creative management as well.

Therefore, these 10 commandments, according to Bovee

and Arens should be formed handy for both developing

and reviewing promotion:-

1) You should set specific objective

2) You should know how basic promotion techniques

work.
 3) You should have simple, attention – getting copy

4) You should promote your promotional efforts with

other marketing plans.

5) You should clearly communicate your concepts.

6) You should support the brand positioning and image

7) You should lay out contemporary, easy to track

graphics

8) You should reinforce your brands advertising

messages

9) You should know the media to work with.

10)You should know when to break the nine

commandments.

The tenth commandment is the ultimate creative

exercise. It requires bold CD confident creative personnel

to know when breaking any of these rules is the best way

or action to take at a given period.

2.8 SITUATIONAL ANALYSIS/ PROMOTIONAL

53
 STRATEGY.

According to Kotler, the main emphasis is determined

by an external environment as well as by certain aspects

of the marketing organizations itself. Some of the key

environmental factors include; nature of the market, the

nature of product, push versus pull strategies, stages in

the buying decision process, and financial resources.

2.8.1 THE NATURE OF THE MARKET

Promotional decision should be based on a firms

understanding of the market. Its sizes nature can actually

dictate the strategy. For instance, a widely dispersed

market like those for consumer package goods requires a

large number of contacts.

2.8.2 NATURE OF THE PRODUCT

This affects the methods used to the product.

Personal selling is emphasized when a product has a high

limit value, since consumers often need to be persuaded

 into making the exchange.

When a demonstration is show the products main

features, personal selling is far more effective than

advertising.

2.8.3 PUSH VERSUS PULL STRATEGIES

This distinction refers to the ways in which a tries to

get intermediaries to carry its products. In push strategy,

each channel member attempts to persuade the next

number in the system to handle and promote the product.

This means the product is “pushed “through the channel,

often by means of personal selling. In a pull strategy, the

producer uses production to stimulate demand in the

consumer market. Marketers normally spend heavily on

advertisement or advertising “pull” the product through

the channel.

2.8.4 STAGES IN THE BUYING DECISION

PROCESS

55
 This deals with how consumers first became aware of

a product and their search for information relevant to the

product, make a decision and finally evaluate that

decision. It has been revealed that different promotional

activities have degrees of effectiveness at different points

in the process.

2.8.5 FINANCIAL RESOURCES

In many marketing situation, cost are major

consideration in choosing a promotional tool to emphasize.

But they tend to act as a constraint, rather than as

indicator of which activity to purse advertising, for

instance, means of promotion.

2.9 PROMOTIONAL BUDGET EXPENDITURE

This involves the consideration of factors in

determining the amount of funds to be appropriated for

sale promotion performance. Moreover, these funds should

be appropriated and allocated in such a fashion that the

stated objectives are achieved in the most cost-effective

way. These factors include the following:-

i) The sales forecast.

ii) The general marketing.

iii) Customer destiny/ volume.

iv) Customer size.

v) Profitability of the product.

vi) Quality sold.

vii) Unit price.

viii) Trading area.

ix) End- Use of product and,

x) General economic condition

2.9.1 Method of promotion budgeting

appropriation

The ways of appropriating the amount to be spent on

promotional tools i.e sales promotion towards effective

product performance of company is based on the

57
 following methods.

1) The object task method

2) The competitive parity method

3) The competitive parity method, and

4) All the company can afford method.

2.10 MEDIA STRATEGY TOWARDS AN EFFECTIVE

SALES PROMOTION ON PRODUCT

PERFORMANCE

The media strategies that could be used in achieving

a meaningful impact of sales promotion tools appropriated

on a product are as follows:

a) Continuity strategy: - This is a process whereby

products are often promoted, by using sales

promotion mix, and advertising on the media/channel

often e.g. Convenience goods like soap, coca- cola,

bread, maggi e.t.c.

b) Fighting strategy:- These are product promoted

 through the advertising of sales promotional tools

and used mostly at a particular time and

continuously, example are joy soap, Imperia leather

soap e.t.c

c) Concentrated Strategy: - These are products

promoted through the adverting of sales promotional

tools is used mostly at a particular season, or once in

a while when on promotion i.e. sales promotion.

Example include greeting cards, soap, detergent,

e.t.c. could be used for this purpose.

d) Pulsing strategy: - Here advertising is being carried

out when the demand of the product is needed in

large quantities in order to achieve meaningful

impacts of sales promotion on product performance

and to be able to boost sales volume for the

company and it all happens in the market place. For

example, this is usually carried out during the

59
 weekends say Friends, Saturday and Sundays, in

order to reach their target audience. It could also be

regarded as the matching efforts of the continuous

and fighting strategies.

2.11 EFFECTIVENESS AND EFFICIENCY OF SALES

PROMOTION

Sale promotion is one of the most significant

segments of communication mix, or promotional tools,

where effectiveness cannot be readily measured,

especially from the managerial point of view.

However, the most proficient and product way is the

one in which the target users respond to the sales

promotional activities.

Evaluation is a crucial requirement and yet an

evaluation of promotional programme receives little

attention. Even where an attempt is made to evaluate

promotion, it is likely to be superficial. Evaluation in terms

of profitability is even less common.

Industries can make use of about four basic methods

to measure sales promotion effectiveness. The most

commonly used method among others is to examine the

sales data before, during and after promotion.

For instance, if after the recharge and win

promotional programme conducted by MTN Nigeria their

sales now increase nationwide from N500, 000.00 per

months to

N800, 000.00 per month within the same period, the

effectiveness of sales promotion is seen.

This can be qualified in terms of cost and profitability.

Consumers paid data would reveal the kind of people who

respond to the promotion and what they did after the

promotional exercise, if more information is needed.

Consumer survey can be conducted to learn how many re-

calls of the promotion, what they thought of it, how many

61
derives promotional exercise advantages, and how the

promotion affected their subsequent brand choice

behaviour.

Sales promotional effectiveness could also be judged

through experiments that vary. Such characteristics like

incentive value, duration, and distribution media. It is wise

thus, to place the power of sale promotion behind those

products or services which are worth while to the company

and those who are directly in this distribution of such

products and services.

Otherwise; they may be considered un-important and

may not receive necessary co-operation from “expected

quarters”. Too frequently, an ordinate amount of sales

promotion is directed at a product which intrinsically does

not deserve the interest or attention of trade. The reason

behind this misconception that sales promotion in most of

its accepted, or known areas inexpensively compound with

advertising and publicity, and therefore, very often can be

successfully performed by the company itself, but it is

often forgotten that the penalty for heavy promotion on an

unworthy or undesirable product is that sales manager will

experience a substantial loss of prestige with the sales

organization and its marketing strategy.

Sales promotion efficiency on the other hand,

involves dozens of devices for stimulating buyer interest

and product trial. To improve sales promotion efficiency,

management should record the costs and sales impact of

each promotion. Management should watch the following

statistics:

a) Percentage of sales sold on deal

b) Display costs per sales naira

c) Percentage of coupons redeemed

d) Number of inquiries resulting from a

demonstration.

63
 A sales promotion manager can analyze the results of

different promotions and advice product managers on the

most cost-effective promotion to use.

2.12 ADVANTAGES AND DISADVANTAGES

OF SALES PROMOTION

Among the numerous advantages of sales promotion

as a boost to company’s sales volume include.

i) Sales promotion facilitates easily measured

response.

ii) It encourages quick achievement of objectives

iii) Sales promotion can be extremely cheap

iv) Sales promotion directs support of sales force.

v) Sales promotion is flexible in application

vi) Sales promotion mainly promote and stimulate

sales

vii) It builds product image

viii) It combats competition

 ix) It improves the company’s good will

x) It increases the company’s profit as a result of the

increase in sales.

While the disadvantages of sales promotion cannot

be overemphasized and it include;

i) Price- discounting can cheapen brand image

ii) Sales promotion only fosters a short –term

advantage only

iii) Sales promotion can cause stress with retailers

iv) Sales promotion can cause difficult in

communicating brand message.

v) Sales promotion could lead to a waste of efforts

when it is not fully or efficiently utilized.

2.13 SHORT COMINGS OF SALES PROMOTION

The effect of sales promotion must be used and

utilized judiciously. This is so because some special

promotional activities could be a signal to buyers that is

65
eager to sell more of the products.

Subsequent scheduling of such events conveys the

notion that the product that is being pushed is inferior, ill-

designed or even overpriced/ the repeated usage of sales

promotional activities may actually tend to extinguish the

desired customers response by causing such customer to

be tired of such appeals. Sales promotion are short-lived

limited in durability and not suitable for long range or

sustained marketing efforts.

More so, sales promotion is not always creative, or

innovative, imaginative, its tasteless, many programme

and projected message that unintentionally create

negative customers attitude towards the products that

actually boost competitor’s products, or otherwise

alienates company’s dealers outlets.

Consequently, some of the sales promotion

programmes and items, such as free samples, offer,

contests, or competition and premium are very expensive

and as such restrict some management from

implementing sales promotion as a marketing promotional

strategy, therefore considering it as being relatively

expensive.

CHAPTER THREE

3.1 HISTORICAL BACKGROUND

MTN Nigeria Communications Limited is part of the MTN Group,

Africa’s leading mobile Telephony Company. MTN Nigeria secured on of

four licenses to operate digital (Global System for Mobile

67
Telecommunication - GSM) telephony on February 9, 2001, from the

Nigerian Communications Commission.

On May 16, 2001, MTN Nigeria emerged as the first

telecommunications company to make a call on its GSM network in the

new dispensation. Then, the company launched full commercial

operations beginning in Lagos, Abuja and Port Harcourt, in August 2001.

MTN Nigeria regularly leads the industry with innovative products

such as MTN XtraConnect, MTN XtraCool, MTN a MTN XtraSpecial,

MTN e–Charge (all pre-paid packages), MTN Enterprise Solutions, MTN

XtraSmart, (post-paid or contract packages). There is also an array of

value added service that it is MTN Customer Services (180), MTN Self

Service (181), Enhanced Data and Fax, Short message Service,

International Calling, International Roaming, Conference Calling,

Faxmail, Mobile Web, Wireless Application Protocol (WAP),

CallerTunez, MTN Loaded, MTN GPRS, Voicemail Service , Emergency

Service s Funtones, MTN Call Me, MTN Take 2, MTN Directory

Enquiries, MTN Business Directory, Movie El Service, MTNGraphix,

MTN Logos and MTN Downloads.

MTN’s Products and Services are available at its numerous Service

and with authorized distribution and franchised outlets. MTN Recharge

Cards can be procured at MTN Service Centres, Connects, authorized

Distributors, Eateries, Petrol Station and neighbourhood convenience

Stores.

The company currently has a total of sixty-six (66) switches located

in Lagos (17), Abuja (5), Asaba (8), (4), Port Hacourt (6), Ibadan (8),

Owerri (5), Kaduna (3), Enugu (5), and Benin (5). In addition, its

operation as at the end of October 2007, about 3179 active sites.

On January 20, 2003, MTN commissioned the first phase of its

digital microwave transmission back Y’elloBahn. Constructed at an initial

cost of $120million, the first phase of Y’elloBahn spanned 3,000

kilometers. The 2nd phase of Y’elloBahn will traverse another 4,500

kilometres. Its construction began in 2003, and it is nearing completion.

Y’elloBahn is Africa’s most extensive digital transmission infrastructure

and has significantly helped to enhance call quality on MTN’s network

69
while our coverage has extended to more than 1512 cities and towns.

On October 12, 2006, Phases 1 and 2 of the MTN Fibre Optics, laid

to improve transmission on the network, were successfully deployed on

the MTN network. The cable has a combined length of 3165.53km. Phase

1 covers Lagos – Ibadan, Port Hacourt-Enugu, Asaba-Enugu and Phase 2

covers Lagos Asaba, Ibadan-Abuja, Enugu-Abuja. Phase 3 which is about

1342.96km and moves from Hasco-Kano, Bauchi and Bauchi-Akwanga

was completed in December 2006. In 2007, the metro ring in Lagos and

Niger-Delta Backbone, connecting; Porthacourt-Warri-Bennin was

completed. Already it is the longest Fibre Optics cable ever laid in Africa

and one of the most modern.

On February 10, 2003, MTN recorded one million active

subscribers on its network. And with over five million subscribers

attained so far, it has become the largest telecommunications network in

Nigeria especially as its services have become available in all thirty-six

states of the federation, including the Federal Capital Territory (FCT).

MTN subsists on the core brand values of Leadership, Innovation,

Integrity, Relationships, and a clear attitude. It prides itself on its ability to

make the impossible possible, connecting people with friends, families

and opportunities.

MTN Nigeria is 75% owned by MTN (Mauritius) Limited, 22%

owned by Nigerian partners, and 3% owned by the International Finance

Corporation (IFC is the infrastructure investment arm of the World Bank).

MTN offers you a variety of products and services on our Prepaid

and Postpaid billing platforms, tailored to meet your diverse needs.

Whether you are a business executive, student, mother, Business Centre

operator, there is an MTN plan that has been designed with you in mind.

MTN Post Paid Products

MTN XTRASMART

MTN XTRASMART offers corporate organizations and individuals

hassle-free control of both employee and personal phone call costs. It

offers you and your organization all the benefits you would expect from a

contract package plus the cost control feature of a prepaid package.

MTN XTRASMART customers are required to commit to an upfront

71
monthly payment of either N3,000, N5,000, N10,000 depending on the

intended usage pattern. Each band offers different call rates. This monthly

payment entitles you to airtime value equivalent to the amount of the

chosen band and can be used for voice (local and international), data and

value added services.

Monthly payments are required to be made before the eighth of the

month to avoid line suspension. Once the monthly airtime allowance has

been exhausted, you will no longer be able to make calls. You may decide

to wait till the new moth before making payments or you may choose to

make additional payments within the month either in cash or with a

Cheque into MTN’s account. You may also choose to recharge your

accounting using MTN’s prepaid recharge cards.

If you always wanted the benefits of a contract plan without the risk

of running an uncontrolled bill at the end of the month, MTN

XTRASMART will put you back in control. Now you will never spend

more than you can afford; no compulsory deposits on international calling

no activation charges and no long term contractual agreements.

MTNXTRAVALUE

MTN XTRAVALUE is designed to offer the discerning executive,

cost saving low tariffs and the convenience of paying for your calls at the

end of every month. It offers you uninterrupted talk time, low access

charge of N1500 per moth, 27/ksec for calls to MTN numbers, 37k/sec for

calls to other networks, four happy hours of talk time at 10/sec between

12:30am 4:30am daily and so much more.

To subscribe to MTNXTRAVALUE you will need to fill a

Subscriber Agreement Form and pay a security deposit. Detailed

information can also be found in the product brochure, form our

Corporate Sales Executives, Service Centres and MTN Connects.

MTNbizcom

This service enables businesses to organize their own private

Network within the MTN Network.

MTN SMEPACK Gain the Edge in Business

The MTN SME Pack provides a platform for delivering real

business benefits to SMEs. it is a 5-in-1 Sim pack specifically tailored to

73
cater for the telecommunication needs of Small and Medium Scale

enterprises. It gives you business control, value for money spent, access to

a dedicated business knowledge base via our SME Assist line and so on.

MTN Messenger , MTN Toll Free, MTN Care, MTN Container and

Vehicle Tracking Service, MTN Mobile Office, MTN Recharge A-

Contract, MTN bizTime take 2, MTN Mobile Web, Voicemail, Text

Messaging (SMS), International Roaming , International Calling

,Emergency Services (112), MTN Logos & MTN Graphix, Caller Tunez,

MTN Loaded, MTN Funtones, MTN Call Me,GPRS,Wireless Application

Protocol (WAP), Fax mail, Mobile Data & Fax, Enhanced Mobile Data &

Fax, Customer Services (180), Directory Enquires (200), Business

Directory Services (142), Conference Calling, Call Forwarding, Call

Holding/Call Waiting, Call Line Identification, Call Barring.

Other MTN Nigeria Packages & additional services are:

MTN XTRACONNECT, MTN XTRACOOL, MTN XTRAPRO AND

XTRASPEICAL, MTN XTRAPROFIT, MTN Family & Friends, MTN e-

Charge, MTN Prepaid Menu, Connect 4 life e.t.c

3.1.1 THE BOOST OF THE COMPANY’S SALES

VOLUME THROUGH SALES PROMOTION

The battle for supremacy along with the stiff

competition for increased market share and fierce,

especially among various Communication brands in

Nigeria, notably MTN, Celtel and Globacom have elevated

sales promotion into prime product marketing strategy. In

the early years intense competition was witnessed in the

Nigeria market between the Nitel, Econet (Celtel) and MTN

and Globacom which resulted in the use of powerful

promotional gimmicks by the these companies and their

brands.

MTN which have been around for a while was the only

notable rival of telecommunications to the dominance of

the Communications market by Econet. To revive interest

in its brand, MTN Nigeria devised a promotional strategy

with the aims of gaining more market share in the

75
Communications industry and market, gaining goodwill for

the company as getting a good image and regaining

awareness and interest in the brand. So therefore several

promotional activities and programme were now carried

out during the period. The first promotion conducted then

was the free air time promo in which consumers are giving

free air time if they could recharge their lines ranging from

N750, N1,500, N2,000, N5,000 and N10,000 weekly. This

aggressive promotional effort using both the electronic

and print media resulted in about 60% increase in sales

during three (3) months period of the promotion

What would the sales of MTN Nigeria have been

without the promotion? Would that gain have been

achieved if MTN Nigeria has simply placed all its efforts

into advertising? The answer to this question is the key to

understanding sales promotion and how it work.

However, MTN Nigeria is still in love with sales

promotion as an effective marketing strategy that has

boosted their sales volume, is boosting and will keep

boosting their sales volume. Different sales promotional

activities have been conducted and carried out between

2001and 2008.

All these sales promotional programmes have in a

great measure boosted the sales volume of the company

and it has enabled them to gain more market share and

profit and also to be able to survive in the

telecommunications industry.

3.2 RESEARCH METHODOLOGY

Data are information, which include facts, opinions,

motives, intentions and knowledge about something which

was analyzed for this research work.

According to Osula (1982), Research is defined as the

process of arriving at dependable solution to problems

through planned and systematic collection, analysis and

77
interpretation of data. Therefore, research methodology

connotes analysis and interpretation of data required for

this research work.

Since the purpose of this research work is to examine

the effect and impact that sales promotion has on a

company’s sales volume and the possible sales

promotional media producers can adopt in marketing

consumer products using MTN Nigeria, headquarters,

Lagos state and Ilorin Branch in Kwara State, Nigeria.

3.3 METHOD OF DATA COLLECTION

The data require for this research work were collected

from twp sources. They include the primary and secondary

sources.

i) PRIMARY SOURCE: - This refers to data gathered for

the first time and used for specific investigation at

hand. They are data gathered by the researcher

himself from the respondents, units, or sample survey.

These data were obtained through questionnaire

 administration. The use of questionnaire was

necessary because of the accessibility of the desired

respondents which includes both the staff and

management of MTN Nigeria and the consumers and

customers of the company’s products.

ii) SECONDARY SOURCE:-These are data gathered not

for immediate study but for other purposes. They are

data gathered by the researcher himself. More so, they

are collected from already existing records. The major

secondary data for this study were from publications,

financial sales and annual reports, journals and

newspapers from various learning research sources

and centres.

This was basically to evaluate and critically analyze the

related literature on the research topic and help the researcher

to understand some basic concept in the study.

3.4 RESEARCH QUESTIONS

These are tentative statements on which responses to

79
questions are to be tested for agreement or otherwise. This

exercise will, however serve as a test for this influence, effect

and impact of sales promotion on company’s sales volume.

In view of this, the research questions to be analyzed are

as follows:-

i) Does sales promotion affect company’s volume and

profitability

ii) Does sales promotion affect consumers buying

decision?

iii) Does sales promotion aid the growth and survival of an

organization?

iv) Which medium of sales promotion better influence the

buying decision of consumers?

3.5 HYPOTHESIS TO BE TESTED

Hypotheses are logically linked body of ideas and

prepositions of suggestions part forward for reasoning and

explanation of a phenomenon.

The research hypotheses in this study are:-

HYPOTHESIS 1

H0:- Sales promotions boost and affect company’s sales volume

H1: Sales promotions do not boost and affect company’s

volume.

HYPOTHESIS 2

H0: c Consumers buying behaviour and decision is influenced

and affected by sales promotion.

H1:- Consumers buying behaviour and decision is not influenced

and affected by sales promotion.

H0: NULL HYPOTHESIS

H1: ALTERNATIVE HYPOTHESIS

3.6 SAMPLE SIZE

A fundamental concept of research and interpretation of

data is the area of sample to ensure work ability, when a

population is not easily accessible.

A researcher is interested in studying the nature of a

phenomenon as exhibited by a group of subject, hence, the

81
need to derive a method which ensure on understanding the

phenomenon properly without incurring too much expenses

and wasting too much time, this is done by studying a sample

of samples drawn from the total population. A population is

made up of all conceivable elements, subject of obstruction

relating to a particular phenomenon in interest to the

researcher. Subject or elements are individual items that make

up the population. They may be observed a physically counted.

According to Osula (1982) sampling is defined as taking a

proportion of the population as its representative. The difficulty

in interviewing every individual in the company’s staff and the

consumers is a serious challenge. This, however, necessitated

the use of sample to show fair representation among the

census.

A sample size of 25% of the population which was

scheduled to 50 respondents representing 30 consumers and

20 members of staff were given questionnaire to administer. In

so far as it was difficult to distribute questionnaire to all

consumers, the chosen percentage of the research population

is believed to be a true percentage.

3.7 RESEARCH INSTRUMENT

Research instrument are some of the tools used in

collecting the required information. Some of the instruments

are questionnaire, personal observation, and personal interview

and so on.

(i) QUESTIONNAIRE: - This refers the tool and technique used

by the researcher to gather research information. It is a source

of primary and first hand data (i.e. raw data) which involves

written communication with respondents and requires that

questions are prepared, written and forwarded to respondents

who in turn send their responses back to the researcher.

These questionnaires were distributed to the management and

staffs of MTN Nigeria, and another set of questionnaires were

distributed to the consumers of the company’s product

(Subscribers). All the information gathered through personal

interview was supplemented through the distribution of

83
questionnaire to the consumers.

(ii) PERSONAL INTERVIEW:- Personal interview is a

techniques used for collecting information from others

(respondents) in a face to face manner bearing in mind the

objective of this study is to obtain information on the pact and

affect that sales promotion has on company’s sale volume.

It can also be said to the procedure which involves the

interviewer or research asking the respondent already

prepared question and then record the answers from the

respondents. Interview can either be structured or

unstructured.

The researcher deemed it imperative and wise to have a

face to face interview and discussion with marketing/sales

manager of MTN Nigeria. Some other related information was

collected through observation in both the company’s

headquarters in Lagos and branch in Ilorin, Kwara State.

3.8 METHOD OF DATA ANALYSIS

After the collection of data through the methods earlier

mentioned, tables were drawn to show the result of each

question and data were analyzed and interpreted in

accordance with the response of the questions.

The data collected from the financial, sales and annual

report together with those collected through interview and

questionnaires were tabulated and percentages assigned. Chi-

square as a statistical tool was used to test the data collected

during the hypothesis testing and it contributed immensely to

the research work.

85
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 DATA PRESENTATION

This chapter is concerned with the presentation analysis

and interpretation of data which was collected through the

research questionnaires.

The sample frame for this study covers some of the

workers of the organization especially those in the sale and

marketing department and the customers in general. However,

a convenient sample size of twenty (20) staffs and thirsty (30)

customers were used. The staffs and customers responded to

all the research questions and the entire questionnaires were

returned. The views of the respondents are presented in

tabular form as follows:

4.2 DATA ANALYSIS AND INTERPRETATION

TABLE 4.1

DISTRIBUTION BY SEX OF THE RESPONDENT STAFFS

SEX FREQUENCY PERCENTAGE (%)

Male 12 60

Female 8 40
Total 20 100
Source:- Questionnaire Administered

From the table above, we can see that the number of

male in the department is greater than that of female, which

means the male dominates the female in the department

convened.

TABLE 4.2

DISTRIBUTION BY SEX OF THE RESPONDENT

CUSTOMERS

SEX FREQUENCY PERCENTAGE (%)

Male 9 30

Female 21 70
Total 20 100

87
Source: - Questionnaire Administered

From the research carried out among the customer and at

various place about the effect sales promotion has on

company’s sales volume, the total number of female was 21

which is 70 percent and it is greater than that of the male

which is 9 in number and 30 percent.

The table therefore, shows that female uses the

organizations products that the male.

TABLE 4.3

AGE GROUP OF THE RESPONDENT STAFF

Age Group Frequency Percentage (%)

20-30 years 10 50

31-40 years 5 25

41-50 years 3 15

51 years and above 2 10

Total 20 100
Source: - Questionnaire Administered

The above table shows that 50% of the staffs are between

the age group of 20-30 years, 25% are between the age group
of 31 – 40 years, 15% are between the age group of 41 – 50

years, while 10% are above 51 years.

TABLE 4.4

THE AGE GROUP OF THE RESPONDNET CUSTOMERS

Age Group Frequency Percentage (%)

20-30 years 13 43.3

31-40 years 10 33.3

41-50 years 5 16.7

51 years and above 2 6.67

Total 20 100
Source: - Questionnaire Administered

The table shows that 43.3% are of 20 – 30 years of age,

33.3% are of 31-40 years, 16.7% are of 41-50 years, and 6.67%

are of 51 years and above. From the analysis so far most of the

customers fall between the age brackets of 20-30 years.

89
TABLE 4.5

MARITAL STATUS OF THE RESPONDENT STAFF

Marital Status Frequency Percentage (%)

Married 13 65

Single 7 35
Total 20 100
Source: - Questionnaire Administered

The above table shows that 65% of the staffs are married

while 35% are single. Therefore, the department has a greater

number of married workers than single workers.

TABLE 4.6

MARITAL STATUS OF RESPONDENTS CUSTOMERS

Marital Status Frequency Percentage (%)

Married 13 43.3

Single 17 56.7
Total 30 100
Source: - Questionnaire Administered

The table above shows that 43.3% of the customers are

married and 56.7% are single. Therefore, the single people

purchase the company’s product than the married people.

TABLE 4.7

EDUCATIONAL QUALIFICATION OF RESPONDENT STAFF

Qualification Frequency Percentage (%)

WASC/GRADE II 3 15

NCE/OND 7 35

HND/BSC 9 45

Any other Qualification 1 5

Total 20 100
Source: - Questionnaire Administered

The above table shows that the percentage of HND/BSC

holders is 45, NCE/OND is 35 percent, WASC/GRADE II is 15

percent, and while any other qualification is 5 percent, and the

staff is a Master degree holder (MBA-Master in Business

Administration).

Therefore, HND/BSC holder dominates the department

concerned.

TABLE 4.8

EDUCATIONAL QUALIFICATION OF RESPONDENT

91
CUSTOMERS

Qualification Frequency Percentage (%)

WASC/GRADE II 3 10

NCE/OND 10 33.3

HND/BSC 17 56.7

Any other Qualification 0 0

Total 30 100
Source: - Questionnaire Administered

The above table shows that the percentage of HND/BSC

holders is 56.7%, NCE/OND is 33.3%, and WASC/GRADE II is

10% while any other qualification is 0%.

This, however, shows that the HND/BSC holders tare the

ones who purchase company’s product more.

TABLE 4.9

WHETHER SALES PROMOTION BOOST AND AFFECT

COMPANY’S SALES VOLUME. STAFF RESPONSE

Response Frequency Percentage (%)

Significant staff 22 73.33
Little effect 7 23.33

No effect 1 3.33
Total 30 100
Source: - Questionnaire Administered

The table above shows that 73.33% of the staffs agreed

the sales promotion has significant effect on the sales volume

of a company, 23.33%, little effect and 3.3%, No effect.

TABLE 4.10

WHETHER SALES PROMOTION BOOST AND AFFECT

COMPANY’S SALES VOLUME.

CUSTOMERS RESPONSE

Response Frequency Percentage (%)

93
Significant staff 12 60

Little effect 6 30

No effect 2 10
Total 20 100
Source: - Questionnaire Administered

The above table shows that 60% agree that sales

promotion has a significant effect on company’s sales volume,

30% agrees little effect 10% No effect.

TABLE 4.11

WHETHER SALES PROMOTION AFFECT AND INFLUENCE

THE BUYING BEHAVIOUR AND DECISION OF

CONSUMERS. STAFF RESPONSE

Response Frequency Percentage (%)
Strongly Agree 10 50

Agree 5 25

Strongly Disagree 1 5

Disagree 3 15

Undecided 1 5
Total 20 100
Source: - Questionnaire Administered

The above table shows that 50% of the staff strongly

agrees that sales promotion affects and influences the buying

behaviour and decision of consumers, 25% agree, 5% strongly

disagrees and 5% is undecided.

95
TABLE 4.12

WHETHER SALES PROMOTION AFFECT AND INFLUENCES

THE BUYING BEHAVIOUR AND DECISION OF

CONSUMERS. CUSTOMER RESPONSE

Response Frequency Percentage (%)

Strongly Agree 20 66.6

Agree 5 16.7

Strongly Disagree 1 3.3

Disagree 2 6.7

Undecided 2 6.7
Total 30 100
Source: - Questionnaire Administered

The above table shows that 66.6% of the customers

strongly aggress that sales promotion affects and influences

the buying behaviour and decisions of consumers, 16.7%

agrees, 3.3% strongly disagree 6.7% Disagrees, while 6.7% is

undecided.
TABLE 4.13

WHETHER THE COMPANY SHOULD SPEND MORE ON

SALES PROMOTION. STAFF RESPONSE
Response Frequency Percentage (%)
Yes 14 70

No 6 30
Total 20 100
Source: - Questionnaire Administered

The above table shows that 70% agrees that the

company should spend more money on sales promotion,

while 30% does not agree.

TABLE 4.14

WHETHER THE COMPANY SHOULD SPEND MORE ON

SALES PROMOTION. CUSTOMERS RESPONSE
Response Frequency Percentage (%)
Yes 22 73.3
No
8 26.7
Total 30 100
Source: - Questionnaire Administered

The table above shows that 73.3% of the customers

97
agree that company should spend more on sale promotion,

while 26.7% does not agree.

TABLE 4.15

WHETHER ANY COMPANY THAT ADOPTS SALES

PROMOTION STANDS ANY CHANCE TO SURVIVE AND

GROW. STAFF RESPONSE

Response Frequency Percentage (%)

Yes 17 85
No
3 15
Total 20 100
Source: - Questionnaire Administered

The above shows that 85.6% of the staffs agreed that

any company adopts sales promotion stands a chance to

survive and grow, while 15% of the staff disagrees.

TABLE 4.16

WHETHER ANY COMPANY THAT ADOPTS SALES

PROMOTION STANDS ANY CHANCE TO SURVIVE AND

GROW. CUSTOMER RESPONSE.

Response Frequency Percentage (%)

Yes 24 80
No
6 20
Total 30 100
Source: Questionnaire Administered

The table above shows that 80% of the customers

agrees that any company that adopts sales promotion

stands a chance to survive and grow, while 20% does not

agree.

99
TABLE 4.17

WHETHER THERE IS A DIRECT RELATIOSNHIP BETWEEN

SALES PROMOTION AND COMPANY’S SALES VOLUME.

STAFF RESPONSE.

Response Frequency Percentage (%)

Strongly Agree 14 70

Agree 5 25

Strongly Disagree 0 0

Disagree 1 5

Undecided 0 0
Total 20 100
Source: - Questionnaire Administered

According to the table above 70% agreed strongly

that there is a direct relationship between sales promotion

and company’s is sales volume, 25% agreed, 0% strongly

disagreed, 5% disagreed, while 0% was undecided.

TABLE 4.18

WHETHER THERE IS A DIRECT RELATIONSHIP

BETWEEN SALES PROMOTION AND COMPANY’S

SALES VOLUME. CUSTOMERS REPSONSE.

Response Frequency Percentage (%)

Strongly Agree 19 63.33

Agree 8] 26.66

Strongly Disagree 0 0

Disagree 2 6.66

Undecided 1 3.33
Total 30 100
Source: - Questionnaire Administered

The table above shows that 63.33% of the customers

strongly agrees that there is a direct relationship between sales

promotion and company’s sales volume, 26.66% agreed, 0%

strongly disagreed, 6.66% disagree, while 3.33% is undecided.

101
TABLE 4.19

DISTRIBUTION OF THE SALES PROMOTIONAL MEDIUM

MOSTLY USED BY THE COMPANY. STAFF RESPONSE.

Response Frequency Percentage (%)

Coupons 4 20

Exhibitions 3 15

Films and trade show 0 0

Price-offs 0 0

Samples 2 10

Gifts 11 55
Total 20 100
Source: Questionnaire Administered

The table above shows that the company uses gifts which

is 55%, more than the others, followed by coupons with 20%,

Exhibitions by 15% sample by 10% while films and trade show

together with price-offs had 0%.

TABLE 4.20

DISTRIBUTION OF THE SALES PROMOTIONAL MEDIUM

MOSTLY USED BY THE COMPANY. CUSTOMER RESPONSE

Response Frequency Percentage (%)

Coupons 6 20

Exhibitions 2 6.66

Films and trade show 2 6.66

Price-offs 6 20

Samples 4 13.33

Gifts 10 33.33
Total 30 100
Source: - Questionnaire Administered

The table above shows that gifts are the mostly used

medium by companies since. It has 33.33% followed by

coupons having 20% price off having 20% sample having

13.33%, while exhibitions and film and trade show has equal

percentages of 6.66%

103
4.3 TESTING OF HYPOTHESIS

This section is designed to determine whether sales

promotion is an effective marketing strategy that can be used

to boost company’s sales volume.

To further understand the effect of sales promotion on

company’s sales volume the following hypothesis will be tested

using the Chi-Square method. The hypotheses to be tested

are:-

HYPOTHESIS 1

Ho: Sales promotion affects and influences customers buying

behaviour and decision.

H1: Sales promotion does not effect and influence customers

buying behaviour and decision

A hypothetical result was obtained from the response of

question 11.

More so, the result was tabulated in a contingency table

(TABLE 4.21) which is used to display information for the

purpose of testing any associating between two variables.

 The chi-square test statistic given by the formular

X2 = (Oj-ej)

X2 = (Oj-ej)2 + (O2- e2)2 + …..

ej e2

∑ (O-ej)2
ej

Where Oj = Observed frequencies and,

Ej = Expected frequencies

The expected frequency was calculated using the

following relation

∑F - Responses of the row X Responses of the Column

Total observed frequency

This statistic test is used to know whether observed

frequencies differ significantly from the expected frequencies.

A measure of the discrepancy existing between observed and

expected pregnancies is supplied by the Chi-square statistics

(X)2

If X2, observed and theoretical frequencies agree exactly

while if X2 = O, they do not agree exactly. The smaller the

value of X2, the greater is the discrepancy between observed

105
and expected frequencies. The sampling distribution of X2 is

approximated very close by Chi-square distribution. The

expected frequencies are computed on the basis of a

hypothesis H1. If under this hypothesis the computed value of

X2 0.95) which is the critical value of 0.05 significance level. We

would conclude on the observed frequencies and would reject

the alternative hypothesis (H1) at the corresponding level of

significance. Otherwise, we would accept it or at least rejected

it.

The contingency table observed frequencies was further

analyzed and X2 was determined at 2.34.

The degree of freedom is (r-1) (c-1), assuming 5% level of

significance, the critical value of X2 with 5 degree of freedom

i.e (2-1) (5-1) = (1) (4) = 4X2 – d.f = 4

From the Chi-Square table, d.f under 0.05 is equal to 9.48

Since the calculated Chi-square is lower than the

tabulated Chi-Square, then we rejected the alternative

hypothesis (i.e H1) this means that, Ho will be accepted which

says that sales promotion affects and influence consumers

buying behaviour and decisions.

HYPOTHESIS 2

Ho: Sales promotion boosts and affects company’s sales

volume

H1: Sales promotion does not boost and affect company’s sales

volume.

A hypothetical result was obtained from the response of

question 9. The result was also tabulated on a contingency

table (TABLE 4.22) which was used to display information for

the purpose of testing any association between two variables.

The result shows that 22 staffs were of the opinion that

sales promotion has a significant effect on company’s sale

volume, 7 staffs little effect and, 1 staff no effect, while

consumers on the other hand, 12, 6 and, 2 consumers were of

the opinion that sales promotion has significant effect, little

effect and no effect respectively.

107
 The chi-square test statistical formular was also used and

the expected frequencies were calculated using the same

formular relation as in hypothesis 1.

This statistical test is used to know whether observed

frequencies differ significantly from the expected frequencies.

A measure of the discrepancy existing between observed and

expected frequencies is supplied by the chi-square statistics

(X)2

The contingency tables of observed frequencies were

further analyzed and X2 was determined to be 1.0404. The

degree of freedom is (r- 1) (c-1), assuming 5% level of

significant, the critical value of X2 with 3 degree of freedom i.e

(2-1) (3-1) = (1) (2) = 2 X2 – d.f = 2

From the Chi-square table, d.f 2 under 0.05 is equal to

5.99.

Since the calculated Chi-square is lower than the

tabulated Chi-square, then we reject the alternative hypothesis

(i.e H1) this means that, Ho: (null hypothesis) will be accepted
which says that sales promotion boost and affects company’s

sales volume.

In conclusion, from all the facts gathered since the

beginning of this research finding, which is from the table,

analyzing the results of the questionnaires and hypothesis

tested. We can confidently say that sales promotion has a

boost and effect on company’s sales volume it can be seen that

most people are move and inspired to subscribe the company’s

products due to their promotional activities which has also

assisted certain subscribers through gift, exhibition e.t.c.

109
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 SUMMARY OF THE FINDINGS

In the introduction part of this project, it’s main motive

centered on the need to bring to the limelight, the importance

of sales promotion in an organization. And from the

observations made in the research, remedies were suggested

to certain problems; also a contribution was made to improve

the subject and finally recommendation based on the

observations.

Sales promotion has a strong impact in an organization,

most especially customer oriented organizations. And it has

also tried a lot to bring close relationship between the

consumer and the organization of MTN Nigeria Communications

Limited.

Due to the analysis carried out in chapter four, the

purpose of the findings is to use the response of the producer,

distributors and consumers as well as to determine the boost

sales promotion has in promoting the product of MTN Nigeria.

Some of the findings from the study are as follows:

1) MTN Nigeria makes use of sales promotion in

promoting their products with the aim of creating

public awareness through Bill boards, Gifts, Television

and even Radio advertisement.

2) The effectiveness of MTN Nigeria’s sales promotion is

based on the quality of their products and prevailing

market situation. Customer patronage is based on the

quality of the product and the enjoyment derived.

3) In order to achieve increase in sales volume MTN

Nigeria promotes their products through media such as

exhibition, samples, coupons and gifts more than the

other sales promotional media.

4) Sales promotion has significantly improved the profit

performance of MTN Nigeria.

111
 5) The management of MTN Nigeria has been totally

committed to the pursuit of sales promotion.

6) Customers perceive the image of the company as

being fair and that the quality of their product is

moderate.

7) Customers advise the company to spend more on sales

promotion and that any company that adopts sales

promotion stands the chances of survival and growth.

8) The management of MTN Nigeria strongly agrees that

there is a direct relationship between sales promotion

and sales volume in the company.

9) MTN Nigeria strongly agrees that sales promotion

affects and influence the buying behaviour and

decision of customers.

10) Sales promotion has a significant effect and boost in

relation to sales volume of MTN Nigeria.

From the response derived through the questionnaires, it

can be summarized that a product cannot sell itself, even a

product that is designed to perfectly meet buyers desires and

specifications which is offered at a very affordable price will not

sell successfully unless its been promoted and its benefits are

provided. With this, sales promotion has been an effective tool

for expanding sales volume and hence profitability.

5.2 CONCLUSION

What this research has gathered so far has proved

beyond reasonable doubt that company’s sales volume is being

affected and boosted by sales promotion and it is one of the

promotional mix that can be utilized as a major strategy in

sales promotion.

Though sales promotion is not an entirely new marketing

phenomenon in this part of the world, it has large economic

force, a survival strategy in modern industrial society, however,

sales promotion should be solely relied upon as a stimulant of

sales, it should be effectively combined with other components

of marketing mix elements for it to be successfully

113
implemented.

In essence, sales promotion is a tool for expanding sales

which in turn expands the turn over and profit margin. An

effective sale promotion is a profit booster via sales expansion.

5.3 RECOMMENDATION

Sales promotion has been seen as one of the most

important basic methods of promoting consumer goods. Many

people, all over the world has been inspired and moved to

become customers of the company’s products. It should also

be taken into consideration that for selling of customer type of

goods, sales promotion is the only appropriate and efficient

way.

It is therefore recommended that, for any organization to

survive in this hard economic period and for it to maximize

profit, there is need for such organization to increase its sales

promotional activities and efforts in effect to achieve a large

market share as compared to that of its counterparts.

 For further study, it is recommended that sales

promotion’s effect alone should not be considered, since it is

part of the promotional mix element. Thus, it should be used

along with publicity, personal selling and most importantly

advertising which cannot be done away with.

Since all other factors might have an effect on the sales

volume of the company then each one of them should be

analyzed, so that the final analysis and conclusion would be

based on all promotional activities of the company.

115
 BIBLIOGRAPHY

1. Adeleye, A.S (1997): Marketing –Principle and Practice,

Malthouse Press Ikeja Lagos State.

2. Akibu, A. O (1992): Advertising Strategies , Adeyeri Printing

Press, Oyo , Oyo State.

3. Druker, P.F (1974) Management Task, Responsibility,

Practice, New York Harper and Row

4. Jefkin, F. (1992): Modern Marketing 2nd Ed., Business

HandBook. Pitman Publishing

London.

5. Kelly F.J and Lazer W (1968): Managerial Marketing

Perspective and View points,

Richard D. Iriom Inc., Homewood

Illinois, 2nd Edition

6. Kotler, P. (1980) Marketing Management, New York Practice

Hall Inc.

7. Kotler, P (2000): Marketing Management, Milllenium Edition,

India Practice- Hall Private Limited .

8. Osula Introduction to Research Methodology.

9. Osubiyi Bidemi : Advertising Principle and Practice, Sholak

Printing Press P.O. Box 315,

Toronto, Ogun State.

10. Stanton, W.J (1981): Fundamentals of Marking London,

McGraw-Hill International Book

Company.

11. Stanton, W.J (1982): Fundamentals of Marketing 3rd Edition,

MacGraw –Hill International Book

Company.

117
 APPENDIX 1
QUESTIONNAIRE ON THE IMPACT OF SALES PROMOTION
ON COMPANY’S SALES VOLUME AND PROFIT MARGIN
Department of Business Administration,
Faculty of B.S.S
University of Ilorin,
P.M.B 1515.
Ilorin, Kwara State.

Dear Respondent.
I am a MBA student of the department of Business
Administration, University of Ilorin. I am conducting a research
in partial fulfillment of the requirement for the award of Master
degree in Business Administration.
The questionnaire is designed towards obtaining vital
information on sales promotion: an effective marketing
strategy to boost company’s sales volume and it is explicitly
designed for the employees, staff and customers of the
product(s) of MTN Nigeria Communications Limited.
Your contributions and co-operation in answering the
questions will be highly appreciated. And you are assured that
all the information provided will be confidentially treated and it
is only for academic purpose.
Thanks for your co-operation
IKUPITI OMOLADE ABIDEMI
 SECTION A
(1) Sex

Male ( ) (b) Female ( )

(2) Which age bracket do you fail into?

(a) 20-30 years ( ) (b) 31-40 years ( )

(c) 41-50 years ( ) (d) 51 and above ( )

(3) Marital status

(a) Single ( ) (b) Married ( )

(4) Educational qualification

(a) WASC/GRADE II ( ) (b) NCE/OND ( )

(c) HND/BSC ( (d) other specify ( )

(5) What is your income per month?

(a) Below N 10,000 ( ) (b) N11,000 – N20,000 ( )

(c) N21,000 N30,000 ( ) (d) N31 and above ( )

TO BE FILLED BY THE EMPLOYEES OF THE COMPANY

(6) How long have you been a staff of the company?

(a) About a year ( ) (b) 1-3 years ( )

(c) 4 -6 years ( ) (d) Over 6 years ( )

(7) Is there any annual operating plan or budget for sales

119
 promotion?

(a) Yes ( ) (b) No ( )

(8) What sales promotional medium does the company use?

(a) Coupons ( ) (b) No ( ) (c) Gifts ( ) (d) Samples ( )

(e) Film and trade shows/fairs ( ) (f) price –offs ( )

(9) What has been the boost and effect of sales promotion in

relation to the company’s sales volume?

(a) Significant effect ( ) (b) Little effect ( ) (c) No effect

( )

(10) How well does a customer respond to other promotional

tools such as radio bill board and television?

(a) Very well ( ) (b) Fairly ( ) (c) No effect ( )

(11) Do you believe that sales promotion affects and influence

the buying behaviour and design of customer?

(a) Strongly Agree ( ) (b) Agree ( )

(c) Strongly Disagree ( ) (d) Disagree ( ) (e) Undecided

( )

(12) To what extent do you feel the management has been

 committed to the pursuit of sales promotion?

(a) Total commitment ( ) (b) Partial commitment ( )

(c) Not Supported ( )

(13) Do you agree that there is a direct relationship between

sales promotion and sales volume in your company?

(a) Strongly Agree ( ) (b) Agree ( )

(c) Strongly Disagree ( ) (d) Disagree ( ) (e) Undecided

( )

(14) When last was sales promotion organized by the

company?

(a) This year ( ) (b) Last year ( ) (c) Long ago ( )

(d) No idea ( )

(15) Is sales promotion effective to customers?

(a) Yes ( ) (b) No ( )

SECTION D

TO BE FILLED BY THE CUSTOMERS

(16) How long have you been using MTN product(s)?

(a) Below 2 years ( ) (b) 3 - 8years ( )

121
(17) Have you ever been moved and inspired to buy a product

through sales promotion? (a) Yes ( ) (b) No ( )

(18) Did you switch to buying the product of MTN?

(a) Yes ( ) (b) No ( )

(19) As an existing customer would you advice the company to

spend more on sales promotion?

(a) Yes ( ) (b) No ( )

(20) Do you think any company that adopts sales promotion

stand any chance to survive and grow?

(a) Yes ( ) (b) No ( )

(21) What do you say about the promotional activities of MTN?

(a) Better ( ) (b) Poorer ( ) (c) Cannot compare ( )

(22) Has your contact with any sales promotional programme

had any effect on your patronizing attitude?

(a) Yes ( ) (b) No ( )

(23) If your answer to question number 22 is yes, how?

(a) Increase in patronize (b) Decrease in patronizing

(24) What do you think about the quality of the product of

 MTN? (a) High ( ) (b) Moderate ( ) (c) Low ( )

(25) What do you say of the image of MTN?

(a) Good ( ) (b) Fair ( ) (c) Bad ( )

APPENDIX II

HYPOTHESIS 1

Ho: Sales promotion affects and influences customers

buying behaviour and decision.

H1: Sales promotion does not affect and influence

customers buying behaviour and decision.

TABLE 4.21

WHETHER SALES PROMOTION AFFECTS AND

INFLUENCES CUSTOMERS BUYING DECISION AND

BEHAVIOUR

Customers Staffs Total Percentage %

123
Strongly Agree 20 10 30 60

Agree 5 5 10 20

Strongly Disagree 1 1 2 4

Disagree 2 3 5 10

Undecided 2 1 3 6

Total 30 20 50 100

The Chi-square test statistic is given by the formular:

X2 = ( Oj – ej)

X2 = ( Oj – ej)2 ( O2 – e2)2

e2

= ∑ ( Oj – ej)2

ej

when Oj = Observed frequencies and,

Ej = Expected Frequencies

CALCULATION OF EXPECTED FREQUENCIES

In order to calculate the expected frequencies the

following relation was used.

 ∑F - Responses of the row x Responses of the Column

Total observed frequency

CUSTOMERS

Strongly Agree ∑F = 30x30 = 18

50

Agree - ∑F = 10x30 =16

50

Strongly Disagree- ∑F = 2x30 =1.2

50

Disagree - ∑F = 5x30 =3

50

Undecided ∑F = 3x30 =1.8

50

STAFFS

1. Strongly Agree - ∑F = 30x20 =12

50

2. Agree - ∑F = 10x20 =4

50

3. Strongly Disagree ∑F = 2x20 =0.8

50

125
4. Disagree - ∑F = 5x20 =2

50

5. Undecided - ∑F = 3x20 =1.92

50

The observed frequencies were further analyzed

X2 = (20- 18)2 + (10 – 12)2 +(5-6)2 + n (5-4)2 + (1-1.2)2 + (1-6.8)2 + (2-
3)2

18 12 6 4 1.2 0.8 3

+ (3-2)2 + (2-1.8)2 (1-1.92)2 =

2 1.8 1.9

X2 = 0.22 + 0.33 + 0.17 + 0.25 + 0.03 + 0.05 + 0.33 +0.5 +

0.02+0.

44 = 2.34. X2 = 2.34.

HYPOTHESIS 2

Ho: Sales promotion boosts and affects company’s sales

volume.

H1: Sales promotion does not boost and affect company’s sales
volume.

TABLE 4.22

WHETHER SALES PROMOTION BOOST AND AFFECT

COMPANY’S SALES VOLUME
Customer Staffs Total Percentage %
Significant effect 12 22 34 68

Little effect 6 7 13 26

No effect 2 1 3 6

Total 20 30 50 100
Source: - Questionnaire Administered

The Chi-square test statistics formular is used and the

expected frequencies were calculated with the relation below:

∑F - Responses of the row x Responses of the Column

Total observed frequency

CALCULATION OF EXPECTED FREQUENCIES CUSTOMERS

1. Significant Effect = 34x30 = 20.4

50

2. Little Effect – ∑F = 13x30 =7.8

50

3. No Effect - ∑F = 3x30 =1.8

50

STAFFS

1. Significant Effect- ∑F = 34x20 =13.6

127
 50

2. Little Effect - ∑F = 13x20 =5.2

50

3. No effect - ∑F = 3x20 =1.2

50

Since X2 = (Oj – ej)

X2 (Oj – ej)2 + (Oj – ej)2 + (Oj – ej)2

ej e2 ej

= ∑ (Oj – ej)2

ej
129