CHAPTER ONE

1.1 INTRODUCTION
The success of any business organization depends largely on
consumer patronage. For any product or services of an organization
to be suitable, it need to be communicated to the consumer. Not wit
the product or services, are communicated to consumer, their
existence cannot be recognized, hence patronage may not be
realized.

Organization promote their good and service to the market and to

the users of those product and service. They make use of a
variety of promotional method, such as advertising personal
selling publicity, of sales promotional such promotional tool may
be use by any types of organization, whether commercial or non
profit making, to communicate to, and persuade a target recipient
or potential consumers that they should avail them suit to the
product or service on offer.

Furthermore, A study of marketing communication, is therefore

relevant to different types of organization, promotional activities
are undertaking by commercial companies, trade association,
government bodies, educational institutions, health advisory
councils, political parties charities etc. it is an important area of
study for the marketer, because of the large financial investment
(expenditure) made in promotional activities. The advertising
industry, in particular is a large and important sector in any western
economy.

This industry is also showing signs of rapid growth in the lesser

developed economies and in some socialist countries.

Modern marketing calls for modern firms to develop a good

product, pricing it attractively and making it readily accessible to

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target consumer, this companies must design and create awareness
about the existence, futures and forms how there will benefit the
target market.

Sale promotion is one of the most important promotion tools in

marketing of good and services, mutating communicate mix consist
of the subject of marketing tools, that are primarily
communicational in nature. They are tools normally classify under
promotion, which is one of the controllable variable (which can
called the promo tools) the promotional variables includes various
forms of advertising, packaging, sale presentation, sale aids,
(cataloques, trading stams premiums, free sample coupons) and
publicity programme.

Consumer is regarded as a king in marketing concept so

marketing activities today based on how best to satisfy the
consumer the marketing effort of any company should base on
how best to ensure that after development of a product
presentation or an acceptable price, choice of a better promotional
strategy which will involves much sales promotion to urge the
consumer faster to the product. The sales promotion is an
inducement for a consumer to buy.

Beside it, it is not mostly in a developing country like Nigeria. For

a manufacturer to merely produce and that consumer will be
aware of such product. The firm has to engage in promotional
activities. And over the year some notable authors have regarded
sales promotion as having played such role as:
- Stimulating a new user of a product.
- Encouraging more frequent use of a product
- Posting sales in a particular geographical area of region
- Encouraging the use of other goods.
- Appealing to special segment of market

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 - Attracting bargain hunting, non brand conscious buyer
- Encourage seasonal sale or stimulating off-peaks period sale
security self space of a particular product
- Encouraging movement of slow selling line
- Off-setting price competition
- Assigning sale force presentation of their product because
maturation and encouragement has been create.
- It enhances implus buying (implanted buying)
- Encouraging products and services improvement and
development of new product or goods and services.

1.2 OBJECTIVES OF THE ESSAY

The main objective of this essay is met part of the requirement of
the award of National Diploma in Business studies of Kaduna
Polytechnic. The study is aimed also of achieving the following
specific objecting.

1. To pin point the role and importance of sales promotion in

the marketing of goods and services.
2. To examine the techniques of sales promotion
3. To highlight the procedure of controlling and evaluating the
sales promotional activities.
4. To identify the advantages and disadvantages of sales
promotions.
5. To provide suggestions and recommendations to business
organization on how to effectively apply sales promotion
technique for other products and services.

1.3 RATIONALE FOR THE STUDY

One of the rationale behind this study of this particular topic is to
expose ore exhibit the usefulness or the significant of sales
promotion in a marketing organization. Another reason or rationale
for the study is because must marketing organization does not
places or lay emphasis on sales promotion.

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 Also another rationale of the study is to educate marketing
organization on important or benefit of sales promotion on
marketing organization reason being that most marketing
organization does not pay serious attention to sales promotion.

1.4 SCOPE OF THE ESSAY

The main focus of this essay is on the relevance of sales promotion
to business organizations. This is achieved by examining the
various definition of sales promotion as provided by schools, its
importance, the techniques employed as well as some of the
advantages and disadvantages.

1.5 DEFINITION OF TERMS

Promotion: these are the activities the company undertakes to
make the product easily accessible and available to target
consumer.

Marketing: Is define as “human activities directed at satisfying

need and want through exchange process”.

Consumers: are those people who pay or uses good or service to

satisfy personal or house hold wait rather than for sold for uses in
business.
Sales promotion: may be described as collections of incentives
periodically to stimulate sales for consumer purchased of good and
services.

Advertising: - is an non personal means of communicating to the

target audience usually sponsor by the marketers.

Public relationship: conscious effort to improve and maintain an

organization relationships with such public as employees
customers share holders local communities, made unions.

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 Personally selling: are those people who convince their target
audience about the product.

Promotional mix: they are set of tools used by manufacture sales

promotion, publicity.

Marketing mix: is the combination of detailed strategies tactics,

operation, programmes techniques, and activities to which
resources may be allocated such that the companies marketing
objectives are achieved.

Marketing communication: conveying of information from the

markets to one target market with the objective if creating a
awareness of the company product or services.

CHAPTER TWO
2.0 LITERATURE REVIEW
The writer found it important to start with this various definition of
sales promotion offered by authors and writer as well.

Spilled (1975: pg; 7) defined sales promotion as a function in

marketing of providing inducement to buy. Offered for a limited
period only. The time and place where the purchasing decision are
made. Which are supplementary to synonymous to promotion
generally, where infact, it is not as sales promotion covers so many

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personnel selling, then by enhancing their effectiveness, it could
also be used to describe a special campaign term which involve the
use of certain technique such as price reduction coupon,
combination, offers etc.

These activities posit the characteristic of other promotion tools.

LEVISION AND DELOZIER (1970; Pg. 678)
Defined sale promotion as, “Any direct inducement offering and
extra value or incentive to consumer in other to stimulate quick
and immediately purchases behaviour” those above definition in
broad according to them necessary since may innovative
techniques develop each year, necessary also went on to list tools
as coupons, sampling premiums trade stamps, context and
sweepstakes.

Giles (1983; pg 1999) define sale promotion as “part of indirect

advertising programmes intended to stimulate quick action”

This mean that sale promotion is identifies as form of advertising

extension that aims only at short term results.

They are features of package consumer goods selling tactics and

are directed at the consumers. He identifies special prices sale, for
example distribution, coupons offer and combination or brand pack
product offers as example of sale promotion in the area of
promotion. He went further to list example scale promotion in the
area trade promotion if display specials quality rate terms among
others.

HART (1978: pg:4) said sale promotion include all various

“channels of persuasive” such as direct mail exhibition and so on,
he went on to say it is not the medium that qualifies activity, is

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sale promotion but rather the purpose which the medium is
employed.

HEART AND STAPLETON (1981: pg 172) regarded sale

promotion as any non face to face activity, concerned with the
promotion of sale but often taken also to include advertising.

Also LEWIS (1970; pg 26) defined sale promotion as almost “ any

organized means, by which a company working through it” sale
and advertising personal can increase the of its product from the
definition it is clear that sale promotion is on organized means
which need to work hand in hand with personal selling.

NWOKAVE (1981: pg 209) define it as “any activity that is used

to stimulated sales of a product and which occurs once or over a
limited time period”. He went further to say that, it may be
directed to consumes in form of consumer promotion or middle
man in form of trade promotion that also retailer may initiate their
own sale promotion to clear their incentives. He further say that,
the product been promoted is usually in plentiful supply, otherwise
there should be no need to engage in any other special activities
to push sale.

NWOKAYE (1981; pg 209) defined it as “any activity that is used

to stimulated sales of a product and which occurs once or a limited
time period”. The went to say that, it may be directed to
consumers in form of consumer promotion or middle men in form
of trade promotion that also retailer may initiate their own sale
promotion to clear their incentives. He further say that, the
product been promoted is usually in plentiful supply, otherwise
there should be no need to engage in any other special activities to
push sale.

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EVANS (1990; pg; 137) define sale promotions “the activity of
making special specific offer to an identified group of consumer
for a limit time to influence the behaviour of those consumer.

STATON (1981; Pg 380) on his partview sale promotion as

activity designed to supplement and coo-ordinate persona selling
and advertising effort. He went on to list such activities to include
store display holding trade shows, and using sample or premiums.

MCCARTHY and RERRECIVIT (1970: pg; 470) viewed sale

promotion as those promotion activities other than advertising,
publicity and personal selling which stimulate interest, trial or
purchase by final consumer.

They went say its objective is to complement mass selling and

personal selling which are often seen as the basic method. While
sale promotion is seen as more short run oriented.

Kotler (1988:pg 645) also viewed sales promotion as consisting of

adverse collecting of incentives tools. Mostly short term designed
to stimulate quicker and or greater purchases offer reason to buy
while sale promotion offers on incentives to buy. He went on to
list the tools of sale promotion to include.

i. Consumer promotion: samples, coupon cash refund, free

offer, contexts, demonstration, premiums, warrant free trail,
patronage reward, prizes.
ii. Trade promotion: buying allowance free goods merchandise
allowances, co-operative advertisement, advertising and
displays allowances, push money, dialers sale context
allowance.
iii. Sales promotion: Bonuses contexts, sale relies etc.

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ALEX (1990: pg: 144) defined sale promotion as consisting of
these seller initiated activities that supplement both advertising
and effective force, he went on to say that these seller initiate
activities are sub classified in to items for consumer promotion,
trade promotion and sale force promotion. Example of items for
consumer promotion include the following.

The use of premium coupon, brand names and trade stamps, trade
marks, special offers, free samples and demonstration and
advertising which help inform, persuade and remind casting of a
particular brand in contrast to advertising is speak from the
marketing company to the consumer, sole promotion usually take
place at the point of sales, it is sales moving the product to
consume or users in contrast advertising which is moving the
consumer to product.

It is also publicity to a company, its product and service through

medias which is neither refereed to as below line advertising, in
contrast with above the line advertising, which is handled by extra
advertising agency.

Thus sales promotion activities can be best through of a breaking

the gap between the advertising and personal selling in that, it is
non recurrent and focuses on increasing sale in the short run and
helping to modify the purchasing behavior or consumer.

WILSHURST (1985; pg 178-179) saw sale promotion as often

tactical i.e. designed to achieve a short term and limited objective
possible in a limited area or through contain out let for instance, an
introducing price cut or premium offer may be made, coupled with
special discount for dealers in order to encourage dealers to stock
and customers to sample a new product.

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He went on to list the task sales promotion seller to achieve as
follows:
a. To encourage dealer to stock
b. Encourage customer to sample
c. Combating competition
d. Improving distribution
e. Adding extolment

Evans (1990; pg. 138) viewed that sales promotion can be used to.
a. increase sales of a line significantly
b. lunch a new product
c. or to regain lapsed customers

SHAUGNERSY (1984: Pg 207) saw sales promotion as increasing

marketing productivity in three ways.
1. Complementing or supplementary of a marketer persuasive.
2. Reshaping the benefit of the basic offer to meet competition
pressure.
3. Controlling in some degree the timing and manner of
consumer action.

MC DANIEL JR (1982; pg. 452) also cited the objective of sale

promotion as: -
a. increase trial
b. increase consumer inventory
c. encourage repurchase

KENNETH (1980: Pg. 473)viewed sale promotion as “any special

incentives directed toward the consumer, the trade , or the sale
force designed to stimulate action by one of those groups excluding
advertising, packaging, product quality and normal pricing”
Kenneth further said that the way of gaining insight into the

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nature of sale promotion is to identify some of it’s solvent
characteristics.

i. A relatively short – term activity

ii. Directed toward the sale force distributin channel or
consumer or some combination of those groups
iii. Used in order to stimulate some specific action.

SCHEWE AND SMITH (1980 pg. 531) also defined sale

promotion as: those activities which is typically call advertising
but which do not use the mass media” they went further to say that
many people considered this a catch – all terms since it falls
between advertising and personal selling. It is the kind major
means of promoting the product.

The main value of sale promotion can be seen at the point of

purchases. Sale promotion techniques are designed and to add
something extra to promoter that will encourage exchange. It
support advertising and personal selling, but it is used alone as the
major promotion.

MARTIN (1983: pg 55) said “the main unique line between firm
and its market were the sale force. The use of advertising because
widely dominant later” still these promotional devices serve
different purposes, but when the organization considered it
necessary at time to move the product close to the consumer, then
there is the need for a direct demand stimulation, which is the main
field where sale promotion can be effectively employed.

NWOKEYE (1984” pg 209) listed the following as some of the

uses of sale promotion.

a. To increase the sale of a particular product

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b. To periodically, (e.g. annually or half annually) clear good in
store before inventories are taking or restocking
c. To introducing a new product.

Giles (1983: pg 120) gave reason why sale promotion is used and
the objectives, it aims at achieving as follows:
1. stimulating a new use for a product
2. encourage frequent more use of product
3. appealing to a special segment of a product
4. boosting sale in a particular geographical area
5. attracting barging hunting, non brand conscious bump
6. Encouraging seasonal sale or stimulating off peak period
sale.
7. creating dealers interest and encouraging stocking
8. securing self space
9. encouraging movement slow selling line
10. off setting price competition
11. Assisting sale – force presentations.

WILMSHURST (1985: pg: 175) saw sale promotion as often

tactical i.e. designed to achieve a short termed limited objectives,
possibly in a limited area or through certain outlets, for example on
introductory price out of premium offer may be made coupled with
special discount for dealers in orders to encourage dealer to stock
and consumers to sample a new product.

WILMSHURT listed the result sale promotion sale to achieve as

follows:
⮚ Encouraging dealer to stock
⮚ Encouraging customer to sample
⮚ Combating competition
⮚ Improving distribution
⮚ Adding excitement

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 MC DANIEL (1979: pg 446) observed the objective of sale
promotion as immediate purchases action attitude modification on
as usually been the goal of sale promoting. That specifically the
promoters is attempting to increase brand awareness attract new
customer, or still increase the effectiveness of advertising to
product sales.

BARKER (1982: pg 452) opined that sale promotion can be

employed to achieve a number marketing objective which include.
o To gain customers and convert to regular users
❖ To increase distribution of product
❖ Influence stock level
❖ Maintaining economic production level
❖ To effect a price increase
o To create new interest in an established product and
❖ Improved result from in store displays

2.1 MEANING OF SALES PROMOTION

Sales promotion: is usually employed to complement media
advertising. Sales promotion can be defined as any activity
undertaken to help promote the sale of a commodity, especially
from the producers, wholesalers and retailers out lists.

Sales Promotion: - is also referred to as ‘below-the-line’ an

acronym coined by Ad agencies to describe those activities that the
manufacturer, wholesaler or retailer carries out with the aid of his
marketing and sales staff without contracting them to an
advertising agency, to attract a commission.
Sales Promotion: consists of short-term incentives to encourage
purchase or sales of a product or services. Whereas advertising
offers reasons to buy a product or service sales promotion offers
reasons to buy now.

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2.2 IMPORTANCE OF SALES PROMOTION
According to word (1984: pg. 247) ever since the day that Adams
was given one apple free, since the traveling sales man in old
England gave a free tooth pick with elivic a life, to present day
when the work is full of aids to sales, to motivate achievement, it
has seen recognized as powerful tools, sale promotion is a
promotion activity that involve a direct inducement, possibly
offering an incentive or added value product thus, offered, its effect
on potential consumer is that is make difficult to resist the
temptation impulse to take buying action an the sport out the time
of exposure to it.

Today consumer dissatisfaction with respect to retails selling could

be alleviated by a good sales promotion people programme which
has shifted away from the use of retail sale people and toward self
services, clearly indicates the need of sell promotion, the effort of
sale promotion have much more effect out the point of purchase
unlike advertising media, which reached potential consumer at
their various location,, may be at different time, and by the brand
being advertised may have worn-off. However, sales promotion
devices at the point of purchase tend to do better according to
Barker (1991 pg 438) sales promotion activity can lead to the
following.
i. Gain customer and convert them to regular users
ii. Widen distribution of product
iii. To influence stock level which may be too high or low.
iv. To reduce sale speakers and through and maintain economic
product level.
v. To cushion the effect of price increase
vi. To create interest in an established products improve result
from in-store displays.

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 From the above discussion, it can be deducted that sales promotion
efforts make three important contributions to exchange relationship
– viz

1. Communication: - they gain attention and usually provide

information that may lead the constant to by the product at a
sport.
2. Incentives: - they incorporated some concession inducement
or contribution designed to represent value to the consumer.
3. Invitation: - they include as distinct motivation to engage in
transaction.

2.3 DEVELOPMENT OF SALE PROMOTIONS

Sale promotion has been increasing used and it is gaining round as
a fundamental marketing tools.

LEVUIS (1970: pg. 26) said that in the past sale order has been a
go alone group. It often look on advertising or any other tools as
un. But there has been a remarkable progress in the use of sale
promotion in the recent year.

As complexity of market increase sales people to come to accept

sales promotion as available promotional tools, and notably the
sales man themselves have expressed a desired for more
promotional assistance.

LUCK and FARREL (1979: PG 209) saw it has a major marketing

tools, a level of expenditure of its estimated to be gaining from 20-
25 percent of typical company’s total promotional budget which is
relatively low.

KOTLER C. (1988 pg. 646) said; “a decade ago of advertising to

sales promotion ratio was 60:40 today in many consumer
packaged goods industries reserved in the picture with sale

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promotion accounting for between 60 and 70 percent of the
combined budget sale promotion expenditure increased by 12
percent per year complied with advertising which increased by 6 to
7 percent.

He went on to say the frits growth rate is expected to continue. He

went on to list several factors contributing to sale promotion under
two main headings:

- Internal factors
- Promotion is now more accepted by top management as
effective sale tools.
- External factors
- The number of brands has been increase
- The trade had been demanded more deals from producers.
- Competitors frequent use of sale promotion
- Advertising efficiency has declined because of rising cost.

KINGSLY (1988: pg 138) viewed sale promotion as usually very

effective in gossip-promecities and many extravagant promotion
have extremely successful and gave sample in cash sales ‘buy and
fly ticket” promotional has been used.

He went further to say the most successful promotion if car was to

serve each buyer number. At this end of each 6 weeks number
were drawn and the people who has the corresponding tickets
receive their car free. An noted that within a matter of how of the
Ann cement if this campaign 81 chavroles cow were sold. This
clearly stress the importance and it contribution to the grow of the
company.

STATION (1981: pg 426) said that currently the annual

expenditure are estimated to paralled or exceed those advertising

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sale promotion, while growing in importance is been introduce at
the inception of campaign and not tackle in after world”.

The growth of sale promotion has been given much through by

strong (1976: pg 89) in this opinion he recognized that some
factors are to be accountable for growth of sale promotion and the
ascertain has not been disconcerted by any authority so far rather
reference has been made to it by different author of the subject of
sale promotion and marketing in general.”

I also show the view in that it is characterized by cursory insight

into promotion growth expenditure which attributed to the growth
in sale promotion when has size” “sale promotion was increasing
budget wise more that advertising budget and assure that if the
trend continue by 1967, the expenditure will total to 36 billion
compared to just and 20.5 billion for regular media advertising in
United State of America. If the sale promotion enjoys this
enormous, budget, it therefore, enlighten America it’s growth rate
and proper consideration. STRANG
(1976: Pg 100) so advanced reason growth of sale promotion and
subdivided them in to both internal and external factors.

INTERNAL FACTORS
1. Promotion has becomes more acceptable to top management as
an effective means to stimulate sale, this attitude changed is
caused by apparent proof of sale success of sale promotion.
2. more product managers are qualified to use sale promotion
tools. The appointment of qualified personal for promotion has
helped it’s growth.
3. inflation and recession help mode consumers more deals
oriented.
4. trade pressure for more manufactures deals has growth the
increase size and sophistication of change super market drug

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 store. Discount house and other retail or have brought increased
pressure on manufactures for support and allowances. Without
doubt, we can all living witness to recent increase in the use of
various sale promotion tools like trade affrays organized by
various state in the country Nigerian. The most popular one
being Kaduna trade international fair and Lagos international
trade fair. Also the increase number of such product are slow
moving or during off peak periods. It usually result in increase
sale volume has been compared to past record which sales
promotion not used. Building brand loyalty and painting putting
into new retail outlets. The sale people are the eyes and pars of
the company. The basic objective as the company’s sale people
promotion is to encourage support for a new product or model.
Encourage more prospecting and also to stimulate off-season
sales.

2.4 ADVANTAGE AND DISADVANTAGE OF SALES

PROMOTION
ADVANTAGE OF SALES PROMOTION
A company may restore to the use of sale promotion as an
alternative complement to other method of promotion for the
following reason.
a. Increase Spread Of Product Acceptance
Reduce time necessary to introduce product to market, then
reduce competitive threats, flexible, less lead-time and quick
operation.
b. Low unit cost:
Offers and procedure s in great quality the unit cost is
brought down with great economics of large seal.
c. Effective sale support.
Good sales promotion makes sales men effect more
productive, it so reduce prospecting and turn downs.
d. Testing

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 Can be tried on the smooth portion of the market before it
can fully.
e. Better control
Sale promotion is under the direct central of the users
(promoter)
DISADVANTAGE OF SALES PROMOTION
a. Sale promotion is too expensive compare to cost of
advertising.
b. It does not generate quite trial among loyal customer
c. Works for a product with poor distribution
d. Sale promotion does the job of selling alone
e. Over use of sale promotion programmes can cheapen the
image of product quality and company intention
f. One sale promotion is over, the customers may not be
interested again in the product concern.
g. Retailers may be unco-operative with sale promotion
program of the manufacture because of the fear that
customers may not want to buy the old stock again from
them.
They may not also have received the new products with the
promotional package at the beginning of the exercise.
h. At the closing data of the promotion, some lucky winners
may not get their offers after the closing data.
i. Delay in the delivery premium offer because it has to be sent
pray head quarter of the organization.

2.5 REASON FOR PROMOTION

According to Kotler (1988; pg: pg 645) the purpose of
“Advertising is to offer reason to by while sale promotion offers an
incentives to buyer.” This is to mean that advertising improves
attitude towards a brand while sale promotion translates favourable
attitude into actual purchase.

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 GILES (1982: pg 128) further gives the following as reason for
sale promotion.

i. Sale promotion stimulate a new user of a product.

ii. It encourage more frequent use of product
iii. Appalling to special segment of market
iv. Boosting sale in a particular geographic areas
v. Encouraging the use of another product (combination offer)
vi. Attracting, bargaining hunting non brand conscious buyers.
vii. Encouraging seasonal sale or stimulating of peak period sales.
viii. Creating dealers interest and encouraging stocking
ix. Off setting price competition
x. Assisting sale force presentation

2.6 TYPES OF SALES PROMOTIONAL ACTIVITIES

Sales promotional activities might be used for a variety of reasons:
j. To stimulate sales at particular periods such as during
Christmas or the Moslem Sallah celebrating.
ii. To aid in product launch. The activities during this period
will help to stimulate consumer interest towards the product.
iv. To encourage the distributors to sell certain brands here the
salesman will stress. The conditional selling, where by the
stockist is persuaded to buy certain quantities of slow
moving item in conjunction with the fast moving products.

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