COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING
MANAGEMENT

ASSESSMENT OF PROMOTIONAL PRACTICE IN

MICRO AND SMALL SCALE BUSINESS ENTERPRISE
(IN CASE OF WOLKITE TOWN WOOD WORKER
ENTERPRISE)

A SENIOR ESSAY RESEARCH PROPOSAL SUBMITTED TO

THE DEPARTMENT OF MARKETING MANAGEMENT OF
WOLKITE UNIVERASITY IN PARTIAL FULFILMENT OF THE
REQUIREMENT FOR BACHELOR OF ART ( BA) DEGREE IN
MARKETING MANAGEMENT

BY: MATIYOS LEMI……………0615/13

ADVISOR : ALEM.Z (MA)

WOLKITE ,ETHIOPA

DECEMBER TO MAY 2024

Table of contents
page
Acronym………………………………………………………………………………………III
CHAPTER ONE………………………………………………………………………………1
1.INTRODUCTION…………………………………………………………………………..1
1.1. Background of the Study……………………………………………………………….1
1.2 Statement of problem…………………………………………………………………...3
1.3. Research question………………………………………………………………………4
1.4.objective of the study………………………………………………………………………………………………….4
1.5.specific objective………………………………………………………………………..4
1.6. Scope of the study………………………………………………………………………4
1.8. Significance of the Study……………………………………………………………….5
1.9. Organization of the study……………………………………………………………….5
1.10. Definition of Basic terms……………………………………………………………...5

CHAPTER TWO:…………………………………………………………………………..….6
REVIEW OF LITERATURE………………………………………………………………….6
2.INTRODUCTION…………………………………………………………………………...6

2.1 Review of Theoretical Perspective……………………………………………………...6

2.2 Overview of Promotion…………………………………………………………………7
2.3. Major Objectives of Promotion………………………………………………………...8
2.4. Promotional mix elements……………………………………………………………...8
2.5 Promotional strategy……………………………………………………………….…..12
2.6. The importance of promotion…………………………………………………………13
2.7 Importance of promotion for wood work enterprise…………………………………..13
2.8 Promotional practice…………………………………………………………………..13
2.9 Selecting the communication channel…………………………………………………14
2.10. Factors that affect promotional practices…………………………………………….14
2.11. Understanding marketing environment for promotion………………………………15
2.12 Empirical Literature…………………………………………………………………..15
2.13. Conceptual frame works…………………………………………………………………………………………17

I
CHAPTER THREE:………………………………………………………………………….19
3.RESEARCH METHODOLOGY…………………………………………………………..19
3.1 INTRODUCTION……………………………………………………………………..19
3.2.Description of the Study Area…………………………………………………………19
3.3.Research Design……………………………………………………………………….19
3.4. Target Population……………………………………………………………………..19
3.5. Source of Data……………………………………………………………………...…19
3.6. sample size…………………………………………………………………………….20

3.7. sampling techniques…………………………………………………………………...20

3.8.Procedure of Data Collection…………………………………………………………..21

3.9.Data Analysis and Interpretation Method……………………………………………...21
3.11.Work plan and budget breakdown …………………………………………………..21

3.12.Work plan………………………………………………………………………………………………………………21
3.13..budget breakdown ………………………………………………………………….22

CHAPTER FOUR……………………………………………………………………………………………………………….…23

4 DATA ANALYSIS AND INTERPRETATION................................................................……………..23

4.1 Respondents background information............................................................…………...….23

4.2 Demographic information……………………………………………………………………………………………..23

4.3 Sex Distribution of respondent……………………………………………………………………………………..23

4.4 Age distribution of the respondents……………………………………………………………………………..24

4.5 Educational level of respondent…………………………………………………………………………………...24

4.6 Living place of respondent.………………………………………………………………………………….….…...24

4.7 Length of customer Hood with company product………………………………………………………….25

4.8 Availability of promotional budget…………………………………………………………………….….………26

4.9 External factor of promotion.………………………………………………………………………………………..26

CHAPTER FIVE.………………………………………………………………………………………………………………….…27

5 SUMMARY, CONCLUSION AND RECOMMENDATION…………………………………………….………….27

5.1 Summary….…………………………………………………………………………………………………………………..27

5.2 Major Findings.……………………………………………………………………………………………………………..27

II
5.3 Recommendation………………………………………………………………………………………………………....27

5.4 Questionnaire filled by customer…………………………………………………………………………….….…30

5.5 Interview questioner for management bodies………………………………………………………………32

Reference…………………………………………………………………………….………34

Acronym
MSSEs - Micro and Small scale enterprise

IMC - Integrated marketing communication

III
 CHAPTER ONE

1.INTRODUCTION
In this chapter the researcher concerned on the following areas, background of the
study, statement of the problem, objective of the study, basic research question,
scope of the study, significance of the study, organization of paper and definition of
basic terms,

1.1. Background of the Study

Promotion has defined as the coordination of all sellers initial efforts, to get up
channels of information and persuasion in order to sale good and service as promote
an idea. And promotion is defined as many ways; it is pervasive communication that
motives people to do whatever an organization is selling goods, services or ideas.
Promotion may take the form of direct face to face communication or indirect
communication through such as media, television, radio, magazine, newspaper and
other channel.

Promotion deals with telling the target market or others in the channel of distribution
about the right product (Perreault & McCarthy. 2002). It is not enough for a business
to have good products sold at attractive prices. To generate sales and profits, the
benefits of products have to be communicated to customers. In marketing, this is
known as promotion mix. Promotion keeps the product in the minds of the customer
and helps stimulate demand for the product. Promotion involves ongoing advertising
and publicity, sales promotion, direct mail, public relations, and personal selling. A
promotion that provides incentives to try a new flavor or new use will be more
effective if the brand is familiar and there is no need to combat a consumer skeptical
of brand reputation (Pringle & Thompson 1999).

Consumers are exposed to thousands of marketing communication messages every

day. Organizations compete heavily for the attention and custom of the consumer
through their advertising. Marketing communication attempts to provide information
to the consumer about the organizations products and service offerings. The various
methods of communicating with the consumer need to be in agreement to deliver a
holistic and effective message that will satisfy both organizational and consumer
needs.

1
The objective of the message is to persuade the audience to purchase the product or
service. Therefore, the consumer needs to be receptive to the message and to be able
to interpret it in such a way that the intent to purchase is established (Koekemoer,
2004a:135). For this to be effective, marketers have to be able to develop messages
that will reach and convince the designated target market. Various promotional tools
are at the disposal of the marketer to reach the target consumer.

Kotler (1995) noted that in the past, the promotional elements were regarded as
separate functions handled by experts in separate departments. The sales force
designed and managed its activities independently of the advertising departments and
sales promotion and public relation were often the responsibility of outside agencies
or specialists. Today the concept of designing marketing communications programs to
co-ordinate all promotional activities to provide a consistent message across all
audiences.

Many people have carried out researches to find out if promotional elements have
influence on sales. For instance, Ndambuki (2000) did a research and found out that
indeed promotional elements have effect on sales which turned out to be different
from the findings of Ondiri (1998) who found out that there is no significant
difference effect on sales. However, the difference may have been caused by
geographical difference as Ndamuki (2000) did his research in rural setting while
Ondiri carried out research in town setting. Ndambuki’s finding was also the same as
(Kivuva, 2003) that, those products which are on promotion tend to have more
demand than those which do not.

In Ethiopia peoples are exposed to various promotional activities .most of this efforts
perform companies are not well plan, well organize, well studied one. Above all there
is a lack of studies related with promotion.
Messages delivered by companies are not well censor one. Sometimes the idea they
rise do not go along with the goal of the promotion in some cases companies are
wasting their money and time.

In particular case small scale business enterprise is from among sectors that have
greatest growth potential. Small scale business enterprises are expanding with in the

2
whole Ethiopia peoples are creating groups in order to business jointly. The operation
of small enterprise should have to be supported by promotional mix elements.
The promotion of micro and small scale enterprise requires essential marketing skills.
Due to the nature of micro and small scale enterprise, Personal selling is an aspect of
salesmanship, which involves person to person interaction between a seller and the
buyer to effect exchange of facts for making buying decision.
Most MSSEs must adopt personal selling as its number one promotional tool. Due to
its traditional nature and cost effectiveness. Håkan Håkansson & IMP Group.
(1982).the aim of this research to identify the factors that affect promotional practice
of Wood work enterprises in wolkite town and give recommendations to reduce/
eliminate the promotional problems.

1.2 Statement of problem

The promotion mix is a term used to describe the set of tools that a business can use to
communicate effectively the benefits of its products or services to its customers. The
challenge is to select the right mix of promotional activities to suit the particular
business at a particular time and to then use it correctly to achieve a result. Many
research focuses on developing brand equity measuring tools (keller,2003,; Parkand
srinivasan, 1994 ; you and Donthu,2001) but few researches attempt to understand or
measure the process of brand equity information over time the process of brand equity
information over time through an examination of antecedents (Bar wise 1993.)

Therefore this study seeks to evaluate the effects of promotional mix elements on the
enterprises of wood work in Wolkite town.
Foskett (1999) stresses that today’s customers seek value from companies that
provide leading-edge products, hassle-free transactions at competitive prices and
customer intimacy. Promotion practices have changed dramatically to improve
transactions and increase customer intimacy by emphasizing long-term relationships
and increasing self-regulations.
There is a lot of competition created by liberalization of the financial services sector,
technological changes, and globalization. Business organizations spend large sums of
money to compete for outwit their competitors through various promotional means.
However, there is scarcity of literature on the promotion this attract these research to
measures promotional practice. This study will attempt to bridge the gap.

3
4. Research Questions
The study will try to answer the following basic research questions;
1. What is the attitude of wood work enterprises towards promotion?

2. Do the enterprises have promotion strategy?

3. How do promotional practice for the micro and small scale enterprise (MSSEs)
found in wolkite town are designed?

4. How promotional practice for the wood workers looks like?

5. What are the factors that affect the promotional practice of wood worker?

1.3. Objective of the Study

1.3.1 General Objective

The general objective of the study is to assess the promotional Practice of micro and
small scale enterprise.in wolkite town wood work enterprise.

1.3.2 Specific Objectives

The specific objectives of the research will be:

1. To identify wood work Enterprise attitude towards the promotion.

2. To identify whether the enterprises have the promotion strategy or not.
3. To study the promotional practice by the micro and small scale enterprise
(MSSEs) found in wolkite town are designed.
4. To examine the promotional practice of wood worker found in wolkite
5. To identify factors that affect promotional practice in wood worker.

1.5. Scope of the study

Conceptually, this research entirely focus on assessing the promotional practice of
wood work enterprise .for the reason of financial, Time, and other constraints
geographically, the study will delimit to wolkite town wood work enterprise.
Methodologically the study will be delimit to employing questioners in order to gather
data from respondents, and the research raised from 2 November to 20 December
2023

4
1.6. Significance of the Study
The study will given the following significance to others as listed below; the
researcher has improved their own performance, experience about how to do good
research paper, it will improve the researcher knowledge and skills related to the
promotional activity of wood work enterprise .The study will provide valued
information to all micro and small scale enterprise regarding promotion mix elements
which has communication tools and to convince customers to their product and
services. The study will also identify the major problems in micro and small scale
enterprises really today practice. This also helps to the enterprise and potential
business to improve their progress and to take a corrective action in related to
promotional practice. On the other hand, as a starting point, the study will provide
basic experience to the researchers to investigating other related future problems
related to promotion practices.

1.7. Organization of the study

This research will be organized in to five chapters. The first chapter is the
introduction part which includes background of the study, statement of the problem,
objective of the study, significance of the study, scope of the study. The second
chapter is literature review which includes theoretical and empirical study. The third
chapter contains the methodology, data collection mechanism and the sampling
techniques and work plan and also budget breakdown and the fourth chapter concern
on data analyses and interpretation, the last chapter concern on conclusion and
recommendation and reference.

1.8. Definition of basic terms

Micro and small scale:-the sub categories of business enterprises in the

economic market.
Promotional practice:-is mainly used to stimulate consumers and sellers to
purchase certain product
Promotional mix element:- refers to those basic five form of promotion that
company uses for reaching the target market and stimulate and create demand for
its products and includes advertising, sales promotion, public relation and
publicity and personal selling.

5
 Communication channel:-are various firms used to persuasive. The
communication must select efficient channels of communication to carry the
massages.

CHAPTER TWO:

REVIEW OF LITERATURE
2. INTRODUCTION
This chapter examined relevant literature from works that have already been done on
The literature review will structured in the following form: theoretical and empirical
study, overview of promotion, objective of promotional practice, promotional mix
element, promotional strategy, importance of promotion, personal and non-personal
communication channel, factors that affect promotional practice and understanding
marketing environment promotion and conceptual frame work.

2.1. Review of Theoretical Perspective

Since the research is more concerned on the assessment of Promotional practice in
micro and small scale business enterprise, the works by a number of scholars are
explored to make it more relevant theoretically and conceptually. In this respect, the
work of Kotler and Armstrong (2008), Wells, Burnett, William James, Myers and
Aaker, and Arens (2009) are used as the guiding foundation for learning about the
effectiveness of promotional activities and sales as the key thematic construct to be
considered for this research. In this study, the first and foremost concern is to
understand about various promotional strategies, channels, effect of promotional
strategy on company’s practice in context of small scale enterprise metal work in
Wolkite town . In this respect, it is quite relevant to acknowledge the works of various
scholars for their conceptual insights. Promotion is one of the strongest tools to boost
up company’s sales.

Promotion is the marketing term used to describe all marketing communications

activities and includes advertising, personal selling, sales promotion, public relations,
direct marketing, trade fairs and exhibitions, advertising and sponsorship. Promotion
needs to be precisely coordinated and integrated into the businesses global
communications message, and this is called Integrated Marketing Communications

6
(IMC). IMC integrates the message through the available channels to deliver a
consistent and clear message about your company’s brands, products and services.
Any movement away from the single message confuses the consumer and undermines
the brand.

2.2 Overview of Promotion

If you are to ask managers and employees, what is promotion? You will be probably
get different responses. Some of will be say Promotion is an attempt by marketers to
inform, persuade, or remind consumers and business users to influence their opinion
or elicit a response. Most firms use some form of promotion. Because company goals
vary widely, so do promotional strategies. The goal is to stimulate action from the
people or organizations of a target market. In a profit-oriented firm, the desired action
is for the consumer to buy the promoted item. Promotional goals include creating
awareness, getting people to try products, providing information, retaining loyal
customers, increasing the use of products, and identifying potential customers, as well
as teaching potential service clients what is needed to “co-create” the services
provided.

Promotion is all the communication tools that can deliver the message to the intended
audience. Basically promotion is set of activities to inform, persuade and influence
that completely linked (Roosta & et al, 2007, p247).

Promotion is designed in many ways it is basically persuasive communication that

motivates people to buy whatever on organization is selling goods, service or ideas
(william, 2002). Promotion may take the form of direct face to face communication or
indirect communication through such media as television, radio, magazine,
newspaper, direct mail, billboards and other channels. (Mescon, 1987).

Promotion has been defined as the coordination of all seller initiated efforts, to get up
channels of information and persuasion in order to sale goods and service or promote
an idea. (Michael, 2006). Glencoe McGraw Hill (2003) define promotion is any form
of communication a business or organization use to information, persuade, or
reminded people about its product/service promotion is used to improve the public
image of an organization. To achieve promotion goals it is important to decide on the
right promotional mix. Promotion is the way in a business makes its product know to
the customer both current and potential.

7
The main aim of promotion is to ensure that consumers aware of existence and
positioning of products and to remained customers about they may want to buy. It is
common believe that promotion by business is all about advertising it is not. There is
variety of approaches that a business can take to get their message across to customer,
although advertising is certainly an important one. It is important to understand that a
business will use more than one methods of promotion (Jermaine, 2012)

2.3. Major Objectives of Promotion

Promotional objectives differ considerably from one organization to another and
within organizations over time. Large organizations with multiple promotional
programs operating simultaneously may have quite varied promotional objectives. For
the purpose of analysis we focus on the following promotional objectives.

Informing- potential customers must know something about a product if they at all.
A firm with a really new product may not have to do anything but inform customers
about it and show that it meets consumer needs better than other products.

Persuading-when competitors offer similar product, the firm must not only inform
customers that its product is available but also persuade them to buy it, persuading
objectives means the firm will try to develop a favorable Promotion requires
effective communication.

Reminding- if target customers already have appositive attitudes about

affirms market mix of a good relationship with the firm a remanding
objective might be suitable. This objective can be extremely important in
some cases. Even though customers have been attracted and sold once, they
are still targets for competitor appeals. (P.kotler: 1997)

2.4. Promotional mix elements

Promotional mix elements refers to those basic five form of promotion that company
uses for reaching the target market and stimulate and create demand for its products
and includes advertising, sales promotion, public relation and publicity and personal
selling. Each has distinct feature that determines in what situation it will be most
effective P Kotler, (1997).

8
2.4.1. Advertising
According to Kotler& Armstrong (2010) Advertising is defined as “any paid form of
non-personal presentation and promotion of ideas, goods and services by an identified
sponsor”. It is the dissemination of information by marketer relating to a product,
service or an idea through different channel of communication or medium, such as
newspaper, radio, television, billboards or magazines by a recognized source Akanbi
and Adeyeye, (2011).

Advertising non any used companies but in many cases by museum, government and
charitable organizations advertising development involves a delusion across five MS
mission money, message media and measurement. Advertisements indifferent form of
promotion because, the time or allocation space is paid. (McGraw Hill, 2003).

2.4.2. Sales promotion

A research conduct on the issue of sales promotion shows that sales promotions have
remarkable effect on the sales and profit of the organization. Furthermore sales
promotion have greater effect on organizational performance as it stimulate and
inspire the customer to purchase a product in large quantity, offers an opportunity to
organization to generate trials of the product by non-users, motivate the retailers to
stock greater number of items or products, motivate the consumers to make buying in
off seasons and starting the brand loyalty. They further enhance that if the sales
promotions are effectively executed, it can give new life to failing product and
improve its sales as well as profits of the organization. Sales promotion benefits the
organization at all stages of life cycle of a product and in particular at initial and
growth stage. Their study additionally concludes that there is positive relationship
between the effective execution of sales promotion and organizational sales which
leads to increase in profitability (Odunlami & Ogunsiji, 2011).

The purpose of sale promotion is to increases demand and stimulates sales. Sales
promoting can be directed towards manufacturing whole sellers, retailers and
customers, sales promotion encouraging sales force to sale products aggressively,
sales promotions are supported by advertising activities sale promotion be either trade
oriented and consumer oriented McGraw Hill, (2003).

Sales promotion consists of all of the incentives offered to customers and channel
members to encourage product purchases. Sales promotion takes two forms;

9
consumer promotions and trade promotions. Consumer promotions are the incentives
that are directly offered to a firms customers or potential customers. Consumer’s
promotions are aimed at those who actually use the product end users. They may be
individuals or households and other end user may be a business that consumers the
product and the item. In other hand words, consumer’s promotions are offered in both
consumer markets and business to business markets. Trade promotions are used only
in the distribution channel. Trade promotions consist of the expenditures or incentives
used by manufactures and other members of the marketing channel to purchase goods
for eventual resale. Trade promotions provided to other firms help push product
through to retailers (Terence A.shimp, 1997).

2.4.3. Personal selling

According to ( Paparoidamis & Unguent ,2009) , Personal selling is an important
element in today’s cutthroat competition for satisfying the customers, making them
brand loyal and generating profitable sales volume which eventually leads to
organizational success. Personal selling is used to increase the satisfaction of the
customer after purchasing the company’s product and provide guidance to taking
corrective measure (Brassington & Pettitt, 2000), as the marketer can see the
advantageous or dis advantageous reaction of the consumer and adjust the message
accordingly, Belch & Belch (2003) and thus it helps seller in creating long term
profitable relationship with consumer based on mutual confidence, understanding and
trust (Brassington & Pettitt, 2000).

Personal selling any form of direct contact occurring between sales person and a
customer. The key factor that sets it apart from other form of promotion is that there is
two way communications between the sellers and buyer. Personal selling is one of the
largest forms of promotion it requires individuals to make contact with potential
buyers, making it the most expressive form of promotion. Personal selling is designed
to complete a sale once a customer is attracted to a business buy advertising sales
promotion or public relation. (McGraw Hill, 2003)

It is the interpersonal arm of the promotional mix advertising consists of one way,
non-personnel communication with target consumer groups. For promotional practice
and customer researchers have only discussed the relationship between them in the
past some researcher state that promotional practices have positive effects on

10
customers. Some researchers found that promotional practices have no effect on
customers (Jerome E, 1964).

Personal selling is an ancient art it has spawned a large literature and many principles
(kotlerkeller, 2006).

2.4.4. Public relation

Brassington & Pettitt. (2000), defined Public relations as the marketing function
which assesses public attitudes, recognizes the policies and procedures of an
individual consumer or organization with the public interest, and implements program
of action to earn public acceptance and understanding. If the virtues of the
organization and value offered by Public relations efforts meet the expectations of the
consumer, it can leads to establishing long term relationship and strengthening of the
consumer loyalty (Hsieh &Kai Li 2008; Hanzaee et al, 2011). Those corporations
which commence cause-oriented marketing promotions distinguish themselves in cut
through competition and get better their image which results in improved profits
(Serban et al, 2012)

Public relation is refers to any activity designed to create a favorable towards a

business its products or its policies. Building a good relation with company’ various
public by obtaining favorable publicity, building up a good cooperate image and
handling or handing of unfavorable, stories and events. Public relation can have
strong impact on public awareness at much lowest cost than advertising cost
(A.shimp, 1997).

It any communication about an organization, its product, or polices through media

that is not paid for by the organization public usually takes them form of a new story
appearing in the media or an endorsement provided by an individual either informally
or in speech or interview (Vs ramas wamy and snamakumare,1990).

2.4.5. Direct marketing

According to Kotler (2005) direct marketing focuses on carefully targeted consumers
in order to create an immediate response and to nourish already created customer
relationships.

Direct marketing is a system of marketing by which organizations communicate

directly with target customers to generate a response or transaction. This response

11
may take the form of an inquiry, a purchase, or even evoke gutter. Direct marketing
as; The total of activities by which the seller, in effecting the exchange of good and
services with the buyer, direct effects to a target audience using one or more media
(direct selling, direct mail, tell marketing, direct action advertising, catalogue selling,
cable TV selling, kiosks, website and mortising) for the purpose of soliciting a
response by phone, mail or personal visit from a prospect or customer Belch belch,
(2001).

Direct marketing is use of consumer direct channels to reach and deliver goods and
service to customers without using marketing middleman. It describes a situation in
which the produce sells a product directly to a consumer without help of
intermediaries. Direct marketing is a form of advertising which allows profit and
nonprofit organizations to communicate straight to the customer. (Philip Kotler, 1997)

2.4.6 Sponsorship
According to Arens (1999), sponsorship is a cash or any kind of fee pay to a property
which may be sport, entertainment, or nonprofit evens of the organization) in turn for
access to the exploitable commercial potential associated with the property. It is
getting involved in events in order that an organization can be achieve objective such
as increased awareness levels, enhanced reputation and thus build company’s brand
image.

2.5 Promotional strategy

Kevin et al., (2003) noted that promotional strategies assist in moving a product
through the channel of distribution. The manufacturer has to decide whether to use
push, pull or both in its channel of distribution.

A) Push strategy: it describes the work of a manufacturer of a product needs to

perform to get the product to the customer.

In this approach, personal selling and sales promotion play a major role. Salespeople
call on wholesalers to encourage orders and provide sales assistance and this increases
purchase of products (James and Philip, 2001).

B) Pull strategy: it refers to the customer actively seeking out you product and
retailers placing orders for stock due to direct consumer demand. Template Powered
by Blogger (Nov.16, 2013).

12
The manufacturer directs its promotional mix to customers to encourage them to ask
retailers for the product. Seeing the demand from ultimate consumers, retailers order
the product from wholesalers Hardie, (1999).

2.6. The importance of promotion

Promotion enable a firm to establish an image interaction with channel members
provide customer service and complement other marketing activities, it is also
improve employment opportunities. The major advantage of promotion can be
described as, establishing a company product or service image, keep the existing
products, repositioning the image or uses of factoring products, justifying prices,
provide after service for consumers.

2.7. Importance of promotion for wood work enterprise

Promotion is important base for Small Scale enterprise metal work in order to
promoting their product or service to their target adopters. There are many important
of promotion these are:

Increasing brand loyalty

Increasing promotional sensitivity
Obtaining and trail purchase
To increase consumption of current product and service
Helps to obtain distribution for new products sustainably to eradicating
poverty and generate income and employment opportunity.
To create products or companies image.
To maintain trade support for establish.
To create an immediate positive impact on sale promotion practice is to attract
customer purchase because of internal and external factors (Leiholm,
Clay1998).

2.8. Promotional practice

Promotional practice is to attract customer purchase, because of internal and external
factors. Marketing claimed that promotional practice is all marketing activities that
stimulate customers purchase and the effect of seller. It is different form personal
selling, advertising and sales promotion practice short term marketing activity under
taking product and retailers(mesert,2002)

13
The purpose of promotion is both to communicate with buyers and to influence them.
Effective promotion requires an understanding of the process of persuasion and how
this process is affected by environmental factories. The potential buyer must not only
receive the desired information, but should also be able to compere that information.
It is mainly advertising and the purpose is to stimulate the customer purchase
promotional is used to in forming, persuading and endowing the customers or service
(Philips Kotler, 1997)

2.9 Selecting the communication channel

Communication channel are various firms used to persuasive. The communication
must select efficient channels of communication to carry the massages .In many cases
many different channels, must be used. Communication channel are two types,
personal and non-personal.

2.9.1 Personal communication channel

Personal communication channels involve two or more persons communicating
directly with even other. They communicant face to face, over the telephone, through
the mail or even though an internet chat personal communication channels are
effective because they for personal addressing and feedback.

2.9.2 Non personnel communication Channel

Non personal communication channel are media that carry messages without personal
contact or feedback. They include major media, atmospheres, and event major media
include print media (newspaper, magazines, direct mail).Broadcast media (radio,
television), online media (e-mail, website).

Atmosphere are designed environment that create or enforce the buyers learning
towards buying a product .Non personal communication on affects buyers directly in
addition using mass media often affects buyers indirectly buy causing more personal
communication. Communication first how from television, magazines and other mass
media to opinion leaders and then these opinion leaders to others. Those opinion
leaders step between the mass media and their audiences and carry messages to
people who are less exposed to media (PhilipsKotler, garn Armstrong, 2006).

2.10. Factors that affect promotional practices

As a market manager considers different factors in their strategic decisions,
promotional menageries are required to incorporate some factors in their promotion

14
budget decisions there are five basic specific factors to consider where setting the
promotion.
Stage in product life cycle
Market share and consumer base
Competition
Promotional frequency
Product substitution

2.11. Understanding marketing environment for promotion

Firm marketing strategy selection of target market and developments, implementation
and control of its marketing program are all directed by management. However a
number of factors cannot be controlled or directed by the firms or organization. These
uncontrollable force include what is often referred to as micro environment of
marketing. They include demographic environment, economic environment, political
environment cultural environment and technological environment.
Demographic environment

It deals with the proactive of analyzing and describing the distribution of the
population according to the selected characteristics, such as age, sex, education,
occupation.

Economic environment

A change in economic conditions has a significant impact on marketing and

promotion strategy

Technological environment

Change in technology can affect many industries in several ways for example type
write and software (kittler 2006).

2.12. Empirical Literature

Drucker (1999) noted that marketers use numerous tools to elicit response from the
target markets. These tools include: Place, Price, Products and Promotions also
referred to as 4Ps of marketing (McCarthy, 1996). Marketing mix decisions must be
made for influencing the trade channels as well as the final consumers and in return
sales. Typically a firm can change any of the marketing mix to achieve the desired

15
response from the potential buyers. For instance, a firm can change its price, sales
force size and advertising expenditures in the short run. It can develop new products
and modify its distribution channel only in the long run. Kotler (2000) indicated that
the 4Ps represent the sellers’ view of the marketing tools available for influencing
buyers. From the buyers’ point of view, each marketing tool is designed to deliver a
customers’ benefit. Lauter (1990) suggested that the seller’s 4Ps correspond to the
customer’s four Cs that include: customer solution, cost, convenience and
communication as shown in the table below.

Four Ps Four Cs

Product Customer Solution

Price Customer cost

Place Convenience

Promotion Communication

Table 2.1: Customers Cs corresponding to sellers’ Ps

Aryeetey et.al (1996) indicated that most of the micro and small business enterprises’
operators have little formal education in managing their business. The background of
the owners/managers, therefore, places a limitation on their managerial capabilities.
This problem has affected the scope of their operation and therefore they are not able
to take full Advantage of emerging opportunities (Steel, 1996). In certain situations,
managerial incompetence has led to operational inefficiencies resulting in poor
performance (Pappoe, 1992) Small scale enterprises produce largely for the domestic
market although there are few of their products for export markets Those producing
for export are unable to identify the specific buyers in the export trade. This creates
the problem of unfair competition from outside producers as well as dumping of
goods from the developed countries Aboagye et.al (1998). With regard to the use of
modern technology, the operators of the small scale Business enterprise in metal work
use basic locally developed technology and machinery which restrict incentives to
innovation. These are limited in capacity and efficiency. micro and small scale
enterprise thus, experience much wastage of materials as well as frequent machine
breakdow Anderson, (1998).Technical expertise in the MSSEs is also limited. Some

16
of micro and small enterprise are not aware of the availability of modern technologies
or do not have the capability to develop and apply them. Moreover, where there is
such awareness, lack of funds restricts their acquisition. Olu, (2009). Goze, (1990) in
his study of micro and small enterprise, stated that, few micro and small scale
enterprise start their projects with their own capital (personal saving) and with
assistance from families and close associates.

2.13. Conceptual frame works

17
 personal
selling

sponsorsh
ip

Figure 1:1

18
 CHAPTER 3

RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter focused on research design, target population, source of data, procedure
of data collection, Sampling Technique, data analysis and interpretation will
discussed.

3.2 Description of the Study Area

Wolkite is one of the town of gurage zone which is found in southern nations and
nationalities of Ethiopia.temperature one of places in Ethiopia ranked as first class
township . wolkite have cloud cover temperature, wind speed and precipitation.
Wolkite isolated latitude of 1889 South above sea level.

3.3 Research Design

The purpose of this study will to assess promotional practice of MSSEs in wolkite
town. The study will be designed the descriptive research design because the research
will study the characteristics of phenomenon and subject under study, the study will
categorize the enterprises engagement, it express the quantitative aspect of analysis
such as tables, percentage and also qualitative aspects of the analysis. As result, the
study will design by descriptive study design.

3.4 Target Population

The target population of this study will be coordinators of wood work managers,
owners and employees who are working in the enterprise directly or indirectly
concerned to promotional practice in their enterprises.

3.5 Source of Data

It is true that the whole effort of the study is depending on the data that will collected
from different sources. The researcher will focus on two major sources to assess the

19
problem of promotion in micro and small scale enterprise. These are the primary and
secondary data from different category sources. The researcher will use primary
source of data by distributing self-administered questionnaires and the researchers
also assess secondary sources of data including libraries, books, and internet and
enterprise document and comprehensive review of existing document of the
enterprises will be utilize.

3.6 Sampling Size

The researcher conduct in manufacturing sectors including in wood work enterprises
like wolkite wood work ,Behayilu wood work, Sintayehu General wood work and
construction material supply industry, Alif wood work and office equipment sales
center, Tamirat wood work ,and wolkite town MSSE’s. They have 300 total
employees and the researcher took 75 respondents as sample of the study .The
researcher used the following formula.

n= N/ 1+N(e)2
n=300/1+300(0.1)2
=
300/ 4 = 75 respondents
n= 75 sample respondents for this study
Where n=sample size
N=total number of population.
e=significance level

3.7 Sampling Technique

The researcher will be use simple random and proportionate stratified sampling for
different target groups. The enterprise, employees who engage in the manufacturing
sectors the researcher will apply simple random and proportionate stratified sampling
due to large number of sample size; avoid biasness among target respondents and
proportionally classifies target respondents. On the other hand, the study will be apply
purposive sampling for coordinators of MSSEs. Due to their closeness to the subject
matter of promotional practice and their work experience in the sector.

3.8 Procedure of Data Collection

First the researchers will be developed questionnaire and distributes into the target
population or respondents. Questionnaires, close-ended questions that require

20
respondents to choose from a predetermined set of alternatives, so as to allow
respondents to replay in their own word, will be apply.

3.9 Data Analysis and Interpretation Method

Having the data will be collected from both primary and secondary source, In this
study researchers decide to use percentage and tabulation method to analyze data.
Percentage method will be use to compute and get the total picture of data collect
from sample respondents which will serve as base for making analysis. on the other
hand Tabulation is used to summarize the data in the form of tables.

3.11 Work plan and budget break down

3.11.1 work plan

No activities time of work Place of responsible Evaluation Remark

work for task criteria

1 Specification March22 Wolkite GROUP 4 ✔

of study area Town
2023

2 Title selection March 23- WKU WKU Mkt ✔

25,2023 MGT Dep.

21
3 Literature APRI 10),2023 WKU Group 4 ✔
review

4 Data APRIL 15- WKU Group 4 ✔

collection 16 ,2023

5 submission of March21 ,2023 Wolkite Group 4 ✔

rst
1 draft Town

6 Data analysis march23),2023 WkU Group 4

7 interpretation March 24-may WKU Group 4

8,2023

8 Submission of may(12 WKU Group 4

2nddraft

9 reporting may (25) WKU Group 4

Table 1:work plan

3.11.2 Budget break down

Number Descriptions of Unit cost per Total source of Remark

item birr cost in budget
Unit
birr

1 Pen 2 15 30 Family ✔

2 Flash disk 1 250 250 family ✔

3 Cover page 2 15 30 family ✔

4 Transportation 2 15 30 family ✔

5 Print 1 250 250 family ✔

22
6 Mobile card 3 15 45 family ✔

Total cost 635

CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

This part deals with the analysis and discussion part of the study. One thing you
should be kept in mind here is that the student researcher tried to use the data obtained
through schedule questionnaire and secondary data available to us arriving at the
concision derived from findings.The data which was gathered by the help of
questionnaire from 75 sample respondents on the topic of promotional practice in
micro and small scale enterprise in wolkite town wood work .

The researcher present the findings in tabular form as follows.

4.1. Respondent background information

Due to different reason raised from sample respondents, of the total questionnaire
papers (75)distributed for the target respondent 75 questionnaire papers are collected
By using techniques such as tabular form and percentage.

Demographic Information

Table 3.1 Sex distribution of respondent

SEX Frequency percentage

Male 40 53.3%
Female 35 46..67%
total 75 100%

As we can see the above table there were enterprise gender distribution of the
respondent replied 7(58.3%) were male and remaining 5(42.7%) are female We can
conclude the above data in the number of male respondent are more than female
respondent

23
Table 3.2 Age distribution of respondent

age frequency percentage

Less 20 25 33.3%
20-30 30 40%
31-40 20 26.67%
Greater 41 _ _
total 75 100%

The above table indicate that the age distribution of respondent age class of less than
20 are25(33.3%),20-30 are 30(40%) 31-40 are1(26.67%),we can safely conclude that
the majority of respondent are age class of 20-30

Table 3.3 EDUCATIONAL LEVEL OF RESPONDENT

Educational level frequency percentage

secondary 25 33.3%
preparatory - -
diploma 20 26.67%
degree 30 40%
masters - -
total 75 100%
The above table indicate educational level of respondent of above enterprise
respondent replied secondary education are 33% diploma26.67% and degree of 40%
in wolkite wood have secondary school ,diploma and master for the above data we
have to conclude that the respondent of educational level respondent are degree
graduate We conclude that the majority respondents are literate and diploma
graduated respondent

Table 3.4 Living place of respondent

respondent frequenc percent

y
Wolkite 75 100%
Out of wolkite _ _
total 75 100%

While the above table show that the resident place of respondent in wolkite
town(100%)

The above data deduced that all respondents are living inside wolkite town

Table 3.6 Forms of enterprise formation

24
 frequency percent
Sole proprietorship _ _
cooperation 75 100%
Trading cooperation _
Total 12 100%

For the above table form of formation enterprise the respondent of each enterprise
replied that 75(100%) of wood work at wolkite town

Table 3.7 Base of enterprise formation

frequency percent
Group based 35 46.7%
Age based 40 53.3%
Gender based - -
Religion based - -
total 75 100%

The above table indicate that base for formation of enterprise in wood work for group
based (46.7%) in wolkite wood work whatever this is the formation also age base
respondent replied (53.3%)

we can generalize that majority of enterprise focus on age based so whatever it is

indicated in the data

4.2 Length of Customer Hood with Company Product

Table 4.5 length of customer hood with the corporation
No Item Response No of response Percentage
1 For how long you have 20 26.67%
been customer of the 40 53.3%
enterprise 15 20%
Total 50 100%

As indicated from the above table, the length of customer hood as customer of the
company about, %(26.7 respondents) were replied that 1-5 years, on the other hand
53.3%( 26 respondents) were replied that 6-10 years .moreover about ( 20% )Table

3.9 Availability of promotional budget

The promotional budget Wood work Wood work Wood work

are enough to enterprise

25
 frequenc percent frequency Percent frequency percent
y
Yes 30 46.7% 25 33.3%
No 40 53.3% 50 66.6% 40 100%
Total 75 100% 75 100% 40 100%

For the above table indicate the promotional budget are enough with respondent
replied that 30(46.7%),(53.3)in tamirat woodwork and sentayew wood work replied
that is enough to run the promotion activity of the enterprise but there is no
respondent in Alif wood work whatever it is ,(53.3%)&(100%) replied that the
promotional budget is not enough to run business in order to do this respectively of
wood work in wolkite town.

We can generalize every enterprise have not such enough budget to run their
promotional activity of each enterprise

respondents) were replied

Table 3.15 External factor of promotion

External factor affect Wood work

promotion enterprise
frequency Percent
Regulation in 20 26.6%
promotion
Unaware audience 15 20%
Media selection 40 53.3%
Other
Total 12 100%

The above table show that external factor affect promotional effort in the enterprise in
order to promoting so as to this rule and regulation in promotion (26.6%) respondent
replied and unaware audience also affect the promotion of the enterprise
(20%),media selection are also affect (53.3%), in wood work of MSSE enterprise
We can generalize that media selection affect the promotion highly affect .

Sales volume have any related with promotion Wood work

Frequency percent
Increasing market share 40 53.3%
Maximum profit leverage 20 26.67%

26
 Market penetration 15 20%
Total 12 100%

For the above table exhibit that sales volume result in activity of business whatever it
is increasing market share respondent replied 40(53.3%) and also it maximize profit
leverage 20(26.67%) and it also result in market penetration 15(20%).

We can deduced market penetration in wood work in wolkite town so we can

generalize it promotion is important to penetrate the market simply in order majority
of respondent

Chapter five

5. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter is dedicated to discuss summary of previous chapters ,major findings of

data collected ,conclusions and recommendations of the research.

4.1 Summery

The study was conducted to assess the promotional practice in micro and
small scale enterprise in case of wood work in wolkite the objective study
would assess proportional practice SME in Wolkite and to suggest possible
solution with respect reconsideration of its performance data collection
method used both primary and secondary data collection technique
interview and questioner and to collect secondary data researcher would be
used different written book ,sample of 75 respondent were taken from total
population of enterprise by using judgmental sampling of non-probability
sampling method from this judgmental sampling is preferable because of the
researcher descriptive data analysis method would be used in terms of
percentage and tabulation form generally on the basis is of major finding of
the study conclusion and appropriate recommendation would be include the
questioner are distributed all of them will filled and returned finally the
researcher was interpreted and analyzed the quantities and qualitative
measurement are used in order to analyzing data

4.2 Major finding

 The majority of respondent replied respectively in t metal work doesn’t have

enough promotional budget competing with large enterprise

27
  majority of respondent replied that awaering about product and service of the
enterprise preferable for the enterprise

 that the majority of respondent in each enterprise are no such an experience in

such promotional activity
 we can deduce that the failure for the promotion is lack of enough saving
institution
 lack of marketing facility a the challenge replied by majority of respondent
replied that most of the time challenged that occurred during promotion in
marketing facility
 mainly is that media supply are affect each enterprise in the external factor of
promotion
 solving promotional problem generalize this setting the professional employs
are the preferable option for solving the promotional problem
 lack of implementation in administration are factor affect promotion so as to
this we can conclude the finding that implementation are the major factor for
administration factor
 setting high amount of promotional budget affect all enterprise for competing
they respondent of majority of replied that the promotional capacity and
budget are low comparing with large enterprise
 in each enterprise feedback collection the one preferable choose to evaluating
and measuring promotional activity
 low promotional budget is the reason for setting low financial capacity
 marketing facility problem is different in each enterprise what if the majority
of respondent replied that lack of promotional unit is marketing are the
challenge
 majority ) of respondent replied that the are mostly influenced by absence of
trained personnel
4.3 Recommendation

 As indicated from the analysis part of this paper the company faces some
problems regarding to promotional practice. In order to overcome these
problems the researchers recommend the following mechanism based on
finding of analysis part
 It is better to the company to update its promotion technology to accommodate
the competition like now a day.
 It is advisable to the company to have established a separate promotional
department and should set budget separately for promotional activity .on the
other hand it is better to the company to set well-planned promotional strategy
and well defined marketing concepts to succeed and attract a lot of customers
in the competitive business market.

28
  It is advantageous us to the company to continue relating its product quality
and promotions these lead the customer to be satisfied and loyal with the
company products and services.
 It is better to the company to plan appropriately in order to develop and
formulate its promotional activities in attractive and motive manner in order to
increase the frequency of their customer to buy their product and increase the
amount sales volume.
 It is better to the company uses different promotional mix elements such as
advertising; sales promotion, public relation, and personal selling to cover
large market share and other mixes in order to increase sales volume. The
company prefers these different promotional mix elements in order to
announce its products and services for different people in the country.
 It is advantageous to the company to continue improving their promotional
method with current dynamic business environment.
 promoting of the product and services in the main element of marketing
mix .which is
Subject to variation according to the type of products .for some services and products
promotion plays minimal role but for most services and products promotional activity
play an important role since there is a large number of industry and there were large
number of customers and people who have enough information about the company
services and products .therefore corporation by considering this case it is better to the
company to perform well integrated promotion mix that enable to have large market
share and increment of sales volume .
lastly but not least the corporation has a big opportunity that number of our
population is increase with the demand for products and services .so the company
become advantageous by consider the available opportunity act and accordingly by
overcoming its way specially promotion related in every direction to be likable
company in the and as well as in the world .

APENDEX 1
WOLKITE UNIVERSITY

29
 COLLAGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

Questionnaire to be filled by Customers

The questionnaire is part of a study for a BA degree in marketing management at

wolkite University. The objective of the study is to assess the promotional practice in
micro and small scale enterprise Therefore, your honest answer for the questions has
an extremely large value to the completion of this study.

Instruction

 No need of writing your name.

 Use √ mark for answer of your choice.

Part I: - personal data

1. Gender Male Female

2. Age18-24 25-34 35-44 45-54 55-64

65 and over

3. Occupation

Student governmental employees

Private Business Retired Others

4. Level of Education

High school or less Certificate or diploma

1st Degree 2nd degree and above

30
 5. For how long you have been customer of this wood work
A. 1-5 Years B. 6-10 years C. above 10 years

6. What factors makes you to become customer of wood work?

A. Quality B. Price condition

C. Promotion

D . By its necessity to communicate

7. Have you ever heard any promotion regarding to the company product and
service?
A. Yes B. No
8. In what type of media did you heard or listen?
A. Radio B. TV C. newspaper D. door to door or van E. mobile
advertisement
9. Does the company promotion strategy create any motivation to buy its
technological product and got service
A. Yes B. No
10. Is the type of promotions used by the company enough to attract
customers?
A. Yes B. No

11. Did you observe any improvement regarding to the promotion style of the
company?
A. Yes B. No

12. Did you think the promotion mix element have any impact on sales
volume?
A. Yes B. No

13. How do you compare the promotion and quality of service and product?
A. Related B. No related C. Promotion is greater D. Quality is greater

14. What type of promotion mix element that the company currently used?
A. Personal selling B. Public relation C. Sales promotion D.
Advertising

31
 Interview questionnaire for management bodies

Interview Questionnaire to be filled by Manager of the wood work enterprise

First and for most I would like to thank you in advance for your willingness to fill this
interview question

1 What is your organization promotional objective

-------------------------------------------------------------------------------------------------------
--------------?

2Which customer category uses the service of

telecom----------------------------------------------------------------------------------------------
--------------------?

3Which media use to promote your product and

service-----------------------------------------------------------------------------------------------
-------------------------?

4What is the reason for using these

media------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
-----------------?

5 Who prepare the message of the promotion

-------------------------------------------------------------------------------------------------------
-?

6 Who determine the budget to use the promotion

-------------------------------------------------------------------------------------------------------
----------?

7What is the method used to determine the

budget-----------------------------------------------------------------------------------------------
---------------------------------------------------?

8 What are the mechanisms used to evaluate the effectiveness of the

promotion--------------------------------------------------------------------?

32
9 What is the level of communication coverage by the company to reach an
identifiable target customer
-------------------------------------------------------------------------------------------------------
-------------------------------?

10 What criteria the corporation has been using to select the

media-------------------------------------------------------------------------------?

33
Reference

Anderson, (1998). Belch: Advertising and Promotion, Sixth Edition

Aryeetey et.al (1996), Steel, (1996). , Pappoe, (1992). , Aboagye et.al
(1998).Anderson, (1998).acquisition.Olu, (2009). Goze, (1990)

Barwise P. 1993.” Brand equity: Snark or Boojum?” Int J Res Mark 10(1) pp. 93-104.

Bekowitz et al,(1997).Belch: Advertising and Promotion, Sixth Edition

Belch, Ee and Belch A. (2001). Advertising and Promotions Integrated Marketing

communication perspective 5th ed, New work: David Kendric Bake.

Drucker, P. F. (1999). Managing oneself: Harvard Business Review, 83: 100-9

Foskett, N.H. (1999). “Marketing university education: the South African

experience”, Higher Education Review

(Hsieh A.T. and C. Kai Li, 2008; Hanzaee et al, 2011). The moderating effect of
brand Image on public relations perception and customer loyalty, Marketing
Intelligence and Planning, 26(1), 26-42

.Jimrilen ( 2012 ) Marketing management 1th ed Vs Ramawamy

Jimrilen ( 2012 ) Marketing management 1th ed Vs Ramawamy

Keller, K.L., (1998), Strategic Brand Management: Building, Measuring, and

Managing Brand Equity, (New Jersey: Prentice Hall).

Kivuva P.T. (2003): A case study on effect of promotional element on sales in service
industries. Unpublished MBA project Kenyatta University.

34
(Kotler& Armstrong 2010 ; Akanbi P.A. and Adeyeye T.C, 2011) .The association
between advertising and sales volume:

(KotlerKeller 2006).Marketing management, 12th edition USA, North western

university.

Kotler, P., & Armstrong, G. (2006).Principles of Marketing. 11thEdition. New Jersey:

Pearson

Kotler P., (2005).Marketing Management, New Jersey: Person Education Kotler P.

(1995), Private of Marketing Management, 7th ed Printed Hll of Hindian, Private
Limited Publisher

(Lauter, 1990, KotlerP., 2000). Marketing management. Prentice Hall – New Jersey.

(Michael, 2006, Belch G.E. And Belch M.A. 2003). Advertising and promotion: An
integrated marketing perspective, (6thed.), London: The MCGraw-Hill Companies,

Mugenda, O M. & Mugenda, A. G. (2003). Research methods: Quantitative &

qualitative approaches

(Namburi R. 2000; ondiri, 1998). A survey into Application of promotional elements

in non-profit organizations.” unpublished MBA project Maseno University.

(Odunlami I.B. and Ogunsiji A., 2011).Effect of Sales Promotion as a Tool on

Organizational Performance:

(Onditi A.A., 2012; Adebisi 2006). An evaluation of promotional elements

influencing sales of an organization:

(Paparoidamis & Guenzi, 2009; Brassington F. and Pettitt S. 2000). Principles of

Marketing, 2ndEdition, Harlow, Pearson Education Limited,

Philip, Kotler. (1997). Marketing management, 9th edition.

Roosta, A; Ebrahimi,A;Venous,D.(2007).marketing management, publication (Serban

C., Iconaru C., Macovei O.I. and Perju, 2012). A., Modeling Romanian consumers‟
behavior. Case study: Cause-related marketing campaigns, Res. J. Recent Sci.,
1(10), 27-32.

35
Steel,(1996).Belch: Advertising and Promotion, Sixth Edition.

Trance, A. shimp. (1997). Advertising, promotion and supplemental aspect of

integrated marketing communication 4th edition of Sam

36