THE IMPACT OF SALES PROMOTION ON THE SALES VOLUME IN BUSINESS ORGANISATIONS

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY: Promotional strategies encompass a range of methods, including signage, symbols, mathematical expressions, and dynamic actions, all employed to effectively inform, persuade, communicate, remind, and raise awareness among potential consumers and the general public regarding a particular product or service. Promotion entails the strategic methods and channels through which a company's product or service is effectively communicated to consumers.Promotion entails the strategic efforts to generate awareness, persuade, influence, and remind both the current and potential customer base, as well as the general public, about the products and services offered. Sales volume refers to the quantity of products sold during a specified period of promotional activities. It represents the total number of goods or services that a company has sold or exchanged for monetary value within the duration of its product-related initiatives. The implementation of promotional strategies, such as promotion, enables a business organisation to efficiently and successfully engage with its intended target market. In order to enhance the effectiveness of our promotion strategy, it is recommended to incorporate the use of promotional tools. For example, sales promotion. A buyer lacking fundamental knowledge about product incentives can become informed about them through promotional activities. Promotion plays a significant role in influencing consumer perception and behaviour towards a product, ultimately yielding a positive impact. It enhances the scalability and market positioning of a business organisation. The primary objective of this study is to demonstrate the efficacy of implementing a sales promotion strategy in order to effectively enhance sales volume within organisations such as Globalcom Nigeria Plc.

1.2     STATEMENT OF PROBLEM

In recent years Globacom Nigeria plc, have invested much into sale promotion aiming at improving the sale volume of the company. Despite of heavy investment in the promotional activities, Globacom has not achieved its targeted sales volume, for instance the target sale of 2013 were fifty million and the actual sale was forty four, which indicated a deficiency in the actual sale. So this study aims at establishing the relationship between promotional activities and sale volume using Globacom Nigeria Plc as a case study.

1.3 OBJECTIVE OF THE STUDY

The aim of this study is to examine the impact of sales promotion on the sales volume of a business organization. Specifically it seeks

1. To examine different sales promotion strategies used by business organization

2. To investigate  the impact of bonus packs on the sales volume.

3. To investigate if there is any relationship between sales promotion and sale volume

4. To examine the extent at which sales promotion impacts sales volume

1.4  SIGNIFICANCE OF THE RESEARCH STUDY

This research work has much significance but some of them are:

1. This research work will improve and expand the knowledge and understanding of the researcher on issues surrounding or pertaining to advertising

2. It will provide relevant information for management of any organization in making decision related to advertising.

3. It will help in seeking solution to all problems that arise from poor advertising.

4. It will educate, especially advert personnel on how adverts are really impacting to company’s goods and services, sales revenues.

5. It will serve as reference material to any scholar/student who is willing to know or to add to his/her knowledge and insight of what the real impact of advertising is.

1.5 SCOPE OF THE STUDY

This study aims at examining the impact of sales promotion on the sales volume of a business organization. It will also examine different sales promotion strategies used by business organization. It also investigate  the impact of bonus packs on the sales volume.it investigated if there is any relationship between sales promotion and sale volume and finally it  examined the extent at which sales promotion impacts sales volume. However the study is delimited to Globacom Inc.

1.6 RESEARCH QUESTION

1. What are the different sales promotion strategies used by business organization?

2. What is the impact of bonus packs on the sales volume?

3. Do you think  there is any relationship between sales promotion and sale volume?

4. What is  the extent at which sales promotion impacts sales volume?

1.7 LIMITATION OF THE STUDY

In the course of this study, the researcher encountered few factors that posed to be a limitation. These include financial and time constrain
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

SALES PROMOTION: Sales promotion can be defined as a broad label that applies special kinds of sales accelerating activity not necessarily classed as advertising and direct selling.

BUSINESS: Business can simply be defined as the totality of all economic activities that are undertaken in the process of producing and distributing goods and services for the purpose of making profit.

ORGANIZATION: Robine (1987) said an organization is a consciously coordinated social entity with a relatively identifiable boundary, that functions on a relatively continuous basis to achieve a common goal or set of goals.

MARKETING: This is the task of creating, promoting, and delivery of goods and services to consumers and businesses.

PRODUCT:  Anything that can be offered to a market to satisfy a want or need.

PRICE/PRICING:  This is the amount of money for which goods or services is brought or sold, as selected by the company as final price from its range of prices.

COMMUNICATION:  this is the act of delivering and receiving messages from people. This includes newspaper, magazine, radio, Television e.t.c.

ADVERTISING:  A form of Communication intended to persuade its viewers, readers, or listeners to take some actions on a product or service.

STRATEGY:  These are plans designed to achieve a long term aim and objectives.

SALES TURNOVER:  This is the rate at which goods are sold.

CONSUMER:  Is a person who buys goods or services that is, the final person who uses a product.

SATISFACTION:  It is a feeling of fulfillment that is gotten from the use of a product.

COMPANY:  This is referred to as a firm. That is, commercial business.

SALES VOLUME: Sales Volume is used to measure the amount, usually incartoons/crates, etc, of the product being sold at a given point in time.