EFFECTS OF SALES PROMOTION ON CONSUMER BUYING DECISION
This study was conducted to determine the impact of sales promotions on consumer purchasing decisions, with Coca-Cola Bottling Company serving as a case study.
The primary goal of this study is to determine how sales promotion has influenced customer purchasing decisions and whether it has succeeded in expanding the buying and drinking habits of Coca-Cola products.
In this case, the survey method was used to collect data, and this method permitted to survey the respondents at their own convenience, with a questionnaire administered to them.
It was discovered that competition, free samples, sweepstakes, or demonstration were the effective tools in mobilising and securing consumer active participation and interest in sales promotion on brand products and services.
In conclusion, based on all of our findings, competitive sales promotions do not persuade brand loyalists to change their brand. Sales promotional competition, particularly sales promotions and sweepstakes,
are good marketing tools if the goal is to yield faster and measurable responses in the sale of a brand, product, or service. It was therefore recommended that as companies move from a transaction-oriented view of their customers to a relationship-building one
1.1 Background of the Study
Sales promotion is one of the promotional mix variables that constitute the foundation of all marketing and promotional operations.
The rapid expansion of sales promotion is attributable to the fact that product managers are under increasing pressure to boost their present sales, and sales promotion is viewed as an effective short-term sales technique.
Again, product managers face increased competition, and competing brands are less differentiated. Managers use sales promotion to differentiate their offer; more importantly,
sales promotion help to complement advertising efficiency, which has been compromised as a result of high media clutter and legal ramifications. It works in conjunction with other advertising tools.
In other words, it is regarded as playing a supporting function to the primary tools of advertising and personal selling.
1.2 Statement of Problem
The primary goal of this study is to assess the impact of a company's sales promotion strategy on product sales in the market. The major challenge is to determine the extent to which promotion efforts resulted in a rise in sales volume and profitability.
1.3 RESEARCH QUESTION.
1) What sales marketing methods are used on the soft drink procedure?
2) Which of the sales marketing tactics has a more favourable consumer reaction?
3) What effect do sales promotions have on consumer purchasing decisions?
1.4 Object of the Study
The study aims to investigate the efficiency of sales promotions and the management of sales promotion demand.
1. To assess the success of sales promotion instruments used in the soft drink procedure.
2. To determine which of the sales marketing tactics consumers react more positively to.
3. To assess the impact of sales promotions on customer purchasing decisions.
1.5 Research Hypothesis
For the sake of this investigation, the following hypothesis is offered.
Ho: Sales promotion strategy does not boost consumer purchasing decisions.
Hello: Sales promotion programme improves consumer purchase decisions.
Ho: The price of the product does not impact the extent of consumer participation in the sales promotion activity.
Hi: The price of the product determines consumer engagement in the sales marketing strategy.
Ho: Sales promotion has no positive effect on the profitability of the organisation.
Hello: Sales promotion has a good effect on the profitability of the organisation.
Ho: The time of sales promotions has little effect on sales levels.
Hi: The timing of a sales campaign affects the level of sales.
1.6 Significance of the Study
This research will benefit all organisations in Nigeria, and in particular Coca-Cola Company Nigeria PLC. It is hoped that the findings of this study will shed more light on the necessity for or influence of sale promotions on consumer purchasing decisions.
The study's goal is also to improve the usage of sales promotions as an effective tool for influencing consumer purchasing decisions even if they do not win the promotion.
It will also assist Coca-Cola's top management and executives in gaining a thorough understanding of sales promotion instruments, which will be critical in achieving their marketing objectives and increasing market share without the need to invest millions of naira in dales promotion and advertising.
This study will help to serve a dual purpose by revealing areas where there are problems or where things aren't going smoothly.
1.7 Scope of the Study
This research study will discuss sales promotional tactics and how they may be utilised to influence consumer purchasing decisions. Various consumer sales promotional tactics will be examined, including samples, coupons, price packages, naira off, premiums, and contests, among others. Additionally, the study will be limited to the case study of Coca-Cola Company Nigeria Plc.
This research study will collect information from the state's marketing department of Coca-Cola Company Nigeria PLC as well as individuals who utilise the company's products.
1.8 Limitations of the Study
During the course of producing this project work, the researcher encountered some difficulties, one of which being time constraints. The time given to this task was taken over by the need to satisfy other academic obligations.
Another issue was the financial necessity of the research effort, which along with the restricted financial resources acted as a restricting factor.
Furthermore, the top management of Coca-Cola Company Nigeria PLC refused to share confidential data on the research issue.
1.9 Operation Definition of Terms
A consumer is someone who buys and uses goods or services to meet personal or household needs or wants. It may also be used for commercial, institutional, or industrial purposes.
Consumer products are goods defined for use by the end customer or home in such a way that they can be used without commercial processing.
Sale promotion can be defined as a short-term wide range of promotional techniques aimed to create higher market response and is typically accompanied by an incentive.
Promotional tools are numerous approaches or strategies used to increase client purchases and demand effectiveness.
Pull strategy refers to marketing advertising and promotional actions aimed at encouraging customers to try and repurchase.
Push strategy: Marketing advertising and sales promotion efforts focused at bringing product to dealers.
Pipeline and enhance sales by offering dealer, retailer, and sales promotion inducements such as introductory, pricing allowance, distribution allowance, and advertising allowance. Stock the goods and set up a display.
Marketing is a comprehensive set of commercial activities aimed at planning, pricing, promoting, and distributing desirable products and services to prospective clients.
Advertising is a non-personal presentation of ideas, commodities, and services that is paid for by a recognised sponsor.
Respondents are those who provide answers to survey questions via personal interviews, questionnaires, or telephone interviews.
Substitutes: they are products that can be used in place of one another since they provide the same purpose.
Production: Anything that can be an ideal goods and services event that can be supplied to the market in order to gain attention for usage or consumption.