Getrude Final Project

8/2/2019 Getrude Final Project

1/58

CHAPTER ONE

1.0 INTRODUCTION

This research aims at exposing the effectiveness of sales promotion on sales at

Zimpapers in the Sunday Mail brand. This chapter is going to describe the background

to the study, statement of the problem, objectives and assumptions, importance of the

study, limitations, delimitations, definitions of terms and summary.

1.1 BACKGROUND OF THE STUDY

The Sunday Mail brand was established in 1935. It is the most widely read family

newspaper targeting families and their lifestyles. This research emerged as a result of asharp decline in sales volumes of the Sunday Mail paper. The company introduced sales

promotional strategies in 2002 such as bridal and baby competitions for it to survive in

the market.

In these competitions, for one to qualify as a winner, one has to qualify in weekly

competitions then move the bridal of the week competitions then move to the bridal of

the month competitions and finally yearly competitions. The final winner is published

in the Sunday Mail paper every week. These competitions came up so as to boost sales

and to encourage the purchase of the Sunday Mail Paper.Again,it was noticed that there

was a reduction in customers, so there was need for introducing sales promotional

techniques.

Moreover, there was a decline in the circulation of the Sunday mail paper, which has

lead, the researcher to find out how effective these strategies are in retaining customers,

increasing Sunday Mail circulation, readership and sales volume.

1.2 STATEMENT OF THE PROBLEM

At times Sales promotions do not bring immediate positive response to an organization.

This may lead to misunderstanding between the marketing and finance departments.

Information on whether sales promotion with a special target on bridal competitions is

1


2/58

not known since no similar research has been carried out. There are several factors that

may affect sales and its very difficult to come up with a conclusion.

There was a sharp decline in sales volumes for Sunday Mail and it has continued to

loose key customers. However, the introduction of sales promotion strategies such as

bridal and baby competitions has lead to a number of customers participating in this

competition. This is because Sunday Mail paper is a family paper targeting family

members.

1.3 RESEARCH OBJECTIVES

To assess the effectiveness of sales promotion on sales.

To establish the benefits of sales promotion campaigns to the organization.

To assess the effects of sales promotion on sales.

To analyze and recommend how best the company can increase its sales through

sales promotional campaigns like bridal competitions and baby competitions

To analyse the strategies for sales promotion

To determine whether the public are aware of the sales promotion.

1.4 RESEARCH QUESTIONS

Major question

How effective is Sales promotion strategies for Sunday Mail in retaining its customers?

Sub questions

How does sales promotion affect the organization?

How sales promotion does contributes to an increase in sales?

What is the impact of sales promotion campaigns on sales volume?

What are the benefits of sales promotion to the company?

Why consumers respond to sales promotion?

2


3/58

In what way does sales promotion help the company to develop and recommend

the policies?

What are the factors that influence sales promotion?

1.5 IMPORTANCE/SIGNIFICANCE OF THE STUDY

TO THE COMPANY

The research findings may be used to develop sound action plans or strategies for the

organization under study. Moreover, the recommendations will yield expected benefits

to the organization if implemented and companies in similar situations can also adoptthe recommended situations to Sales promotion.

TO THE UNIVERSITY

The document can be used as a source of secondary data for future studies by both the

university and the stakeholders. It will help to ensure that any interested parties in the

Faculty of Commerce at the university produce competent students in the aspect of

marketing research, which is vital in this modern world business environment. In

addition the research is going to bridge the gap between the aspects of theory (supplied

by the institution) and the aspect of practice (gained from the company) during the

course of the research.

TO THE RESEARCHER

This will enhance and improve the marketing skills and knowledge of the researcher

and also adds academic credits.

1.6 ASSUMPTIONS OF THE STUDY

The researcher assumed that:

Sales promotion is the only promotional tool used by Zimpapers.

3


4/58

The respondents will cooperate by supplying information, and there is sales

promotion in place.

Sunday Mail is the only product of Zimpapers.

Bridal and baby competitions are the only campaigns used by Sunday Mail.

Questionnaires and interviews are the only data collection tools.

Harare CBD is the only Zimpapers sphere of influence.

That the exercise has been done in good faith and it was assumed that the

information obtained was accurate

That the views obtained from the sample were representatives of the other

customer who did not partake in the exercise

1.7 SCOPE/DELIMITATION OF STUDY

The research was confined to Zimpapers Harare branch targeting Sunday mail brand.

Data for primary research was obtained from the managers, non managerial employees,

and customers and also secondary data was obtained from sales records.

1.8 LIMITATIONS TO THE STUDY

Access to other or some documents was difficult due to privacy and confidential.

The sample used was not be a true representative of all the other companies in the

country and companies in the industrial market are different in the way they approach

Sales promotion resulting in different strategies being used by different companies

1.9 DEFINITION OF TERMS

The researcher defines the following terms,

Promotion

Sales promotion

Sales

Effectiveness

4


5/58

According to (Kotler, 2004) promotion stands for activities that communicate the merits

of the products and persuade the customer to buy it.

According to (Needham and Dransfield, 1991) sales promotion describes a category of

techniques, which are designed to encourage customers to make a purchase.

Sales promotion can also be described as a function seeking to achieve given objectives

by adding the intrinsic tangible value to products (J.N Chivandikwa, 2002).

1.10 ORGANISATION OF THE STUDY

The researcher submitted the research proposal for approval by the supervisor to start

chapter one of the project. The proposal details what was going to be in the research

project. Chapter one reveals introduction, background of the study, statement of the

problem and research objectives among others.

Related literature was reviewed in chapter two, research methodology in chapter three

where instruments used were discussed. Data presentation will be done in form of

tables, charts and line graphs.

1.11 CHAPTER SUMMARY

In this chapter, background to the study, statement of the problem, research objectives

and questions to be answered were given. The chapter also gave the delimitations,

assumptions and limitations of the study. The next chapter will look at literature review.

5


6/58

CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

This chapter is set to fully explain the concept of sales promotion. It will give the

definitions of sales promotion, and is going to cover methods of sales promotion, nature

and scope of sales promotion, strategies, and objectives, how sales promotion affects

sales, theories, stages of planning the strategy, factors influencing sales promotion

strategy, benefits and limitations as well as measuring the effectiveness of sales

promotion. A number of studies are referred to, to establish the importance and viability

of the research.

2.1 PURPOSE OF LITERATURE REVIEW

Acts as a foundation to the researcher.

Gives some insight into the topic.

Helps to expose approaches to the research by coming out with suggestions that

have already been carried out.

Limits the research questions and defines concepts of the study.

Helps to learn which methodologies have proved useful.

2.2 RELATED LITERATURE

2.2.1NATURE AND SCOPE OF SALES PROMOTION

In the early sixties, when the marketing discipline was still evolving, sales promotion

was perceived as being a leftover activity. In other words, it was held that if there was

anything (in the promotion budget) leftover after advertising, personal selling and

public relations activities had been planned, this could be used for sales promotion. For

6


7/58

example sales promotion was defined by Luick Ziegler (1968) as those activities which

enhance and support mass and personal selling and which help complete and /or

coordinate the entire promotional mix and make the marketing mix more effective.

Sales promotion is seen here to be an ancillary element of the marketing

communication strategy less important that advertising or personal selling. That is no

longer the case today. Sales promotion is an equivalent and complementary element of

the integrated marketing communication (IMC) strategy.

Although estimates vary significantly from country to country, in April 2002 Promo

Magazine estimated that marketers in the U.S.A spent between 60 and 75% of their

promotional budgets on sales promotion, with the remainder being allocated to media

advertising. It appears, however, that the estimate excludes personal selling from the

promotional budget.

According to Belch and Belch (2004), the growing power of retailers, declining brand

loyalty, increased promotional sensitivity, brand proliferation, fragmentation of the

consumer market the short term focus of many marketers, increased accountability (on

the part of brand managers), competition and clutter have been the main factors that

have led to the increase in the importance of sales promotion and the shift in marketing

expenditure from media advertising to consumer and trade promotions.

2.2.2 DEFINITIONS OF SALES PROMOTION

According to O'Shaughnessy (1982), Sales promotion is the name given to a collection

of incentives used periodically to stimulate sales. He added that such incentives are

consumer promotions when directed specifically at the consumer or trade promotions

when the inducement is to channel intermediaries like retailers to stock or push the

firms brand.

More than any other element of the promotional mix, sales promotion is about action.

It is about to stimulating customers to buy a product. It is not designed to be

informative a role which advertising is much better suited to.

Kotler (1994) defines sales promotion as short term incentives to encourage trial or

purchase of a product or service. He added that sales promotion consists of a diverse

7


8/58

collection of incentive tools, mostly short term, designed to stimulate quicker and or

greater purchase of particular products or services by consumers or the trade.

www.knowthis.com suggests that sales promotion describes promotional methods

using special short term techniques to persuade members of a target market to respond

or undertake certain activity. Sales promotion are used by a wide range of organizations

in both the consumer and business markets, though the frequency and spending levels

are much greater for consumer products marketers. One estimate by the Promotion

Marketing Association suggests that in the United States alone spending on sales

promotion exceeds that of advertising.

Chivandikwa (2002) defines sales promotion as short term incentives to encourage

purchase, introduce new products, boost sales of products, challenge competition and to

communicate with customers as an alternative to media advertising. He adds that it can

be described as a function seeking to achieve given objectives by adding the intrinsic

tangible value to products.

He further postulates that sales promotions, like all communication activities, should be

well-designed, budgeted, protested and implemented and results should be evaluated.

Haugh (1983) defines sales promotion as a direct inducement that offers extra value or

incentive for the product to the sales force, distributors, or the ultimate consumer with

the primary objective of creating an immediate sale. Sales promotion has also been

described in somewhat here general terms, for example Rossiter and Percy (1987 says,

promotion (sales promotion) consists of a repertoire of techniques designed to move

sales forward more rapidly than would otherwise occur.

Kotler (1988)says, sales promotion consists of a diverse collection of incentives tools,

mostly short term, designed to stimulate quicker and /or greater purchase of a particular

product by consumers or the trade.

.

Kotler (2002)argues that companies use sales promotion tools to draw a stronger and

quicker buyer response. It can be used for short run effects such as to dramatize product

8
http://www.knowthis.com/http://www.knowthis.com/


9/58

offers and boost sagging sales. Companies are always searching for ways to gain

efficiency by substituting one promotional tool for another.

From another perspective Sales promotion is a short term incentives to encourage the

purchase or sale of a product or service. It includes several communications activities

that attempt to provide added value or incentives to consumers, wholesalers, retailers or

other organizational customers to stimulate immediate sales. These efforts can attempt

to stimulate product interest, trial, or purchase (www.davedolak.com).

Bennett (1988) argues that sales promotion are media and non media marketing

pressure applied for a pre-determined limited period of time at the level of consumer,

retailer or wholesaler in order to stimulate trial, increase consumer demand or improve

product availability. From another perspective, Etzel et al. (2004) define sales

promotion as demand stimulating devices designed to supplement advertising and

facilitate personal selling.

Sales promotion is believed to be one of the most powerful advertising mediums today,

and growing in favour of the marketing personnel everywhere. Its ability to target the

individual, motivate him, and assist in building relationships that lead to buying

transactions is unmatched by other mediums (www.knowthis.com).

Jewel (1995)suggests that sales promotion refers to all forms of promotion other than

either advertising or personal selling. It is a form of one way communication and is

employed in a supportive role to the other techniques of communicating with

customers. It is a method of developing the product or brand image, enhancing the

promotional activities undertaken by distributors, reinforcing advertising and selling

messages, aiding recognition, attracting attention and encouraging consumers to try the

product.

Needham and Dransfield (1991) argues that sales promotion describes a category of

techniques which are designed to encourage customers to make a purchase. They

usually complement advertising, personal selling, and publicity and might include point

of sale materials, competitions, demonstrations and exhibitions. They move on to point

out that the essential feature of sales promotion is that it is a short term inducement to

9
http://www.davedolak.com/http://www.knowthis.com/http://www.davedolak.com/http://www.knowthis.com/


10/58

encourage customers to react quickly, whereas advertising is a much more long term

communication process involving the building of a brand image.

2.2.3 METHODS /TYPES OF SALES PROMOTION

Sales promotion can be classified based on the primary target audience to whom the

promotion is directed. These include consumer market directed, trade market directed

and business to business market directed (www.knowthis.com).

Consumer market directed

Possibly the most well-known methods of sales promotion are those intended to appeal

to the final consumer.

Trade market directed

Marketers use sales promotions to target all customers including partners within their

channel of distribution. Trade promotions are initially used to entice channel members

to carry a marketers products and, once products are stocked marketers utilize

promotions to strengthen the channel relationship.

Business to business market directed

A small, but important, subset of sales promotions are targeted to the business to

business market.

Chivandikwa (2002)postulates that sales promotion tools depend on the market type,

sales promotion objectives, and level of competition, costs and effectiveness of each

tool. Consumer tools, Trade tools and Sales contests are the three tools suggested by

him. According to him consumer tools include samples; coupons cash refunds, price

packs, premiums, patronage rewards and contests. Trade tools include discounts,

allowances and free goods whereas sales contests include trips, cash prices.

He also argues that some marketing experts think of sales promotion as a tool of

breaking down brand loyalty.

10


11/58

According to www.tutor2u.net the main methods of sales promotion among others

include money off coupons, discount vouchers, free gifts, point of sale materials,

loyalty cards, competitions and prices, and money refunds.

Money off coupons

Customers receive coupons, or cut coupons out of newspapers or a product packaging

that enables them to buy the product next time at a reduced price. The key objective

with coupon promotion is to maximize the redemption rate-this is the proportion of

customers actually using the coupon. One problem with the coupon is that they may

simply encourage customers to buy what they would have bought anyway.

Competitions

Buying the product will allow the customer to take part in a chance to win a price (e.g.

coco cola ring pulls). These may interest a consumer particularly if there is an attractive

prize for example scratch cards, free draws and bingo cards are often popular.

Free gifts or trial packs

Are either given to customers or sold to them at low prices to encourage them to try the

product with the hope that it might stimulate them to make a purchase.

The customer gets something in addition to the main purchase or simply its just a free

product when buying another product.

Loyalty cards

For example Nectar and Air Miles, where customers earn paints for buying certain

goods or shopping at certain retailers that can later be exchanged for money, goods or

other offers. Loyalty cards can offset the discounts they offer by making more sales and

persuading the customer to come back. They also provide information about shopping

habits of customers where do they shop, when and what do they buy?

Point of sale materials

11
http://www.tutor2u.net/http://www.tutor2u.net/


12/58

For example posters, display stands are ways of presenting the product in its best way

or show the customer that the product is there. Attractive, informative and well

positioned point of sale displays are, therefore very important part of the sales

promotional activity in retail outlets. According to Needham and Dransfield point of

sale displays are designed to push products to consumers from the location they are

sold. Effective displays attract a customers attention and encourages them to approach

and inspect the product before making a decision to buy.

Money refunds

Here a customer receives a money refund after submitting a proof of purchase to the

manufacturer.

2.2.4 FACTORS INFLUENCING SALES PROMOTION STRATEGY

The specific type of sales promotion activity chosen will depend on a number of factors

and, in particular, on the sales promotion objective being pursued (Connett: 1993).

Product related factors

Product type

Generally speaking, certain types of products lend themselves to sales promotion more

than others. In the main, sales promotion is frequently used by marketers of Fast

Moving Consumer Goods (FMCG) such as groceries and personal car products.

However, it does not mean that other types of products, such as consumer durables are

excluded.

Price

Depending on the price elasticity of a particular type of product, sales promotion will be

more effective or less effective. Sales promotion will generally be more effective with

products that have a very elastic demand curve (a reduction in price will lead to

12


13/58

increase sales) and less effective with products that have a very inelastic demand curve.

For example, consumers are unlikely to buy more salt when the price of salt is reduced.

Brand image

Marketers can basically pursue two types of brand image strategies, although it must be

recognized that there are many variations between these two extremes. The first is an

exclusive brand image and the other is a value oriented brand image. A greater focus on

sales promotion would certainly harm an exclusive brands image while it may enhance

that of a value oriented brand.

Products stage in its life cycle

It will readily be appreciated that the promotional strategy used by a marketer will vary

significantly in the different stages of the product life cycle. The objectives in the

introduction stage are to introduce the product to the market and generate initial interest

and product trial, whereas the objectives in the maturity stage are to remind consumers

of the product and to maintain market share.

Consumer related factors

Characteristics of the target market

It should be clear that the profile of the individuals that make up the target market will

be a significant factor in developing the sales promotion strategy. If the target market

selected is made up of, say, young people between the ages of 16 and 24, the type of

sales promotion strategy used will be very different from that used for a target market

of senior citizens over 60.

Type of buying decision involved

If a consumer is buying a product that is regularly and frequently used, for instance

toothpaste, the type of buying behaviour is most probably routinised response. On the

other hand, if the consumer is buying a product that is purchased very infrequently, for

13


14/58

instance family car, then the consumer will most probably engage in what is called

extensive problem solving.

Involvement level

In general, therefore, sales promotion is best suited to low involvement products that

are purchased frequently.

Psychological risk level

High involvement products and the associated purchasing decisions imply that the will

focus on minimizing their exposure to economic, psychological and performance risk.

Organization related factors

Overall marketing communication strategy

Since sales promotion is but one of the six elements of the marketing communication

mix available to a marketer, it must be used in strict compliance with the companys

overall corporate and marketing communication strategy.

Resource available

Resources, both human and financial, are, of course, essential to conduct business.

Situation related factors

Prominence of the company in its environment

Depending on how prominent a company is in its environment it may well have to

indulge in a certain amount of sales promotion activities simply because its target

market expects it to. On the other hand, if a company wants to maintain a low profile it

would certainly not participate in any sales promotion activities since they would

automatically attract the publics attention.

Competitors activities

14


15/58

Whether marketers like it or not, in certain situations they have no alternative but to

respond to the actions of the competitors.

2.2.5 PLANNING THE SALES PROMOTION STRATEGY

According to Connett (1993), there are seven stages needed when planning sales

promotion strategy. Firstly, the marketer has to define the target audience. The sales

promotion target audience is the group at whom a particular sales promotion is directed,

for example, sales promotion can be directed to the marketers own sales people, to the

intermediaries and their sales forces and consumers.

After defining the target audience, the marketer has to define the objectives. In this case

the marketer has to set the objectives suitable for that particular target audience. From

there, the marketer has to set the budget. The sales promotion budget is part of the

overall marketing communication budget.

The fourth stage is to develop the strategy. A number of decisions are necessary to

develop an effective sales promotion strategy. After developing the strategy, the

marketer has to select the methods to be used for that strategy.

The sixth stage is to implement the programmes. In order to implement any marketing

programme effectively a detailed plan of action is necessary. The last stage as

suggested by Connett is to evaluate the effectiveness. The approach most used in

evaluating sales promotion effectiveness involves measuring sales before, during and

after the sales promotion event or programme.

2.2.6 STRATEGIES OF SALES PROMOTION

According to Mullin and Cummins (2008) any business activity benefits from being

planned in a strategic manner. Strategy, as John Kay points out, is not another word for

important. It is about identifying the firms distinctive capabilities and translating them

into competitive advantage in the relationship the firm has with its customers and

suppliers. It is about what you and only you do best.

15


16/58

They further argue that sales promotion is strategic if it enhances the firms distinctive

capabilities, increases its competitive advantages and builds its long term relationships.

Www.davedolak.com argues that there are three types of sales promotion strategies.

These are push, pull, or a combination of the two. A push strategy involves convincing

trade intermediary channel members to push the product through the distribution

channels to the ultimate consumer via promotions and personal selling efforts. This

means that the company promotes the product through a reseller who in turn promotes

it to yet another reseller or final consumer.

Typically, tactics employed in push strategy are: allowances, buy back guarantees, free

trials, contests, discounts, displays and premiums. A pull strategy attempts to get

consumers to pull the product from the manufacturer through the marketing channel.

The company focuses its marketing communications efforts on consumers in the hope

that stimulates interest and demand for the product at the end user level. Typically,

tactics employed in pull strategy are: samples, coupons, cash refunds and rebates,

premiums, contests, games, point of purchase displays, patronage rewards.

Car dealers often provide a good for example of a combination strategy. If you pay

attention to car dealers advertising, you will often hear them speak of cash-back offers

and dealer incentives.

According to www.tutor 2u.net sales promotion can be directed at: the ultimate

consumer (a pull strategy) encouraging purchase, the distribution channel (a push

strategy) encouraging the channels to stock the product. This is usually known as

selling into trade.

2.2.7 OBJECTIVES /GOALS OF SALES PROMOTION

An organization has to decide upon how to achieve its objectives. To do so it must

formulate a strategy to use. A common mnemonic used to describe how to persuade a

customer to make a purchase decision is A.I.D.A model. A- Attention, I- Interest, D-

Desire and A- Action.

16
http://www.davedolak.com/http://www.davedolak.com/


17/58

According to www.knowthis.comsales promotion is a tool used to achieve most of the

five major promotional objectives. These are:

Building product awareness

Several sales promotion techniques are highly effective in exposing customers to

products for the first time and can serve as key promotional components in the early

stages of new product introduction. Sales promotion can act as an effective customer

information gathering tool (that is sales lead generation), which can then be used as part

of follow-up marketing efforts.

Creating interest

Marketers find that sales promotions are very effective with creating interest in a

product. In fact, creating interest is often considered the most important use of sales

promotion.

Providing information

Generally, sales promotion techniques are designed to move consumers to some action

and are rarely simply informational in nature. However, some sales promotions do offer

customers access to product information.

Stimulating demand

Next to building initial product awareness, the most important use of sales promotion is

to build demand by convincing customers to make a purchase. Special promotions,

especially those that lower the cost of ownership to the customer (for example price

reduction), can be employed to stimulate sales.

Reinforcing the brand

Once customers have made a purchase sales promotion can be used to both encourage

additional purchasing and also as a reward for purchase loyalty. Many companies

including airlines and retail stores, reward good or preferred customers with special

promotions, such as email special deals and surprise price reductions at the cash

register.

17


18/58

According to Lancaster and Jobber (1994) objectives of sales promotional activities are

the encouragement of repeat purchases, building of long-term customer loyalty,

encouragement of consumers to visit a particular sales outlet, building up of retail stock

levels and widening or increasing of distribution to a particular product or brand.

Additionally, O'Shaughnessy (1982) argues that the superordinate goal of sales

promotion is to trigger purchase or start the process leading to purchase. The

competitive tasks are to attract trial, induce brand switching, retain customer or increase

usage in off-peak or off season periods although they may be couched in other terms ,

for example to get rid of old stock or to achieve a better geographical distribution, or

more adequate stock levels, or better point of sale displays.

He further suggests that once the company has chosen the competitive goal, the

company need to think about why target consumers hesitate to try the product or what

are the difficulties in retaining current customers. In general terms, sampling is best for

attracting and inducing brand, switching to a new product.

Moreover, price deals are good for attracting increased usage during off-peak periods,

although they may have difficulty retaining it unless supportive advertising justifies the

price deal and reinforces perceptions of benefits. Premiums can also induce increased

usage in off-peak periods.

According to Needham and Dransfield (1991) sales promotions can serve different

purposes for example competitions, vouchers and trading stamps would be designed to

build customer loyalty and perhaps increase the volume purchased by existing

customers. Product sampling is a strategy which is often used to introduce new products

into the market place.

They point out that many sales promotions are undertaken in response to the activities

of competitors to ensure that an organization remains competitive. Sales promotions to

the end user require a careful creative approach as repeated use, or a tasteless

promotion, might damage a brand.

18


19/58

www.davedolak.com summaries that consumer promotion objectives are to entice

consumers to try a new product, lure customers away from competitors products, get

consumers to load up on a mature product, hold and reward loyal customers, and

build consumer relationships. However, trade promotion objectives are to persuade

retailers or wholesalers to carry a brand, give a brand shelf space, promote a brand in

advertising and or push a brand to final consumers.

2.2.8 RAPID GROWTH OF SALES PROMOTION

Several factors contributed to the rapid growth of sales promotion, particularly in

consumer markets (Kotler: 1994). These are internal and external factors.

Internal factors

Sales promotion is now more accepted by top management as an effective sales tool,

more production managers are qualified to use sales promotion tool and product

managers are under great pressure to increase their current sales.

External factors

The number of brands has increased, competitors use promotions frequently, many

brands are parity, consumers are more deal oriented, the trade has demanded more deals

from manufacturers and advertising efficiency has declined because of rising costs,

media dutter and legal restrains.

2.2.9 BENEFITS OF SALES PROMOTION

Kottler (2002) points out that although sales promotion tools coupons, contests

premiums and the like are highly diverse, they offer three distinctive benefits.

Communication the gain attains and usually provides information that may lead the

consumer to the product.

Incentive they incorporate some concession, inducement, or contribution that gives

value to the consumer.

Invitation they include a distinct invitation to engage in the transaction now.

According to Chivandikwa (2002) sales promotion has got certain advantages. Sales

promotion bring the product closer to the customer, encourage stocking by retailer as

19
http://www.davedolak.com/http://www.davedolak.com/


20/58

retailer of newly created interest in the product that might have lost favour, draw

attention to new or modified products, encourage customers to make first purchase,

especially brand switchers, can induce impulse buying and creates good will in the

company.

O'Shaughnessy argues that the key role allotted to sales promotion is that of triggering

the sale or the process of a sale. Ray (1982) quoted in this book also argues that sales

promotion combines the sales closing advantages of personal selling with the mass

reach of advertising at a low cost per customer target.

Beem and Shaffer (1981) argue that sales promotions (or promotional inducements, as

they term them) increase marketing productivity in three ways:

Complementing or supplementing the marketers persuasive communications;

Reshaping the benefits of the basic offer to meet competitive pressures;

Controlling to some degree the timing and manner of consumer actions.

They, too, regard sales promotions as a product to action by creating an urgency to act,

although they argue that, if the basic product is not wanted, promotional inducements

will not work. In general terms, therefore, there must be a passive want for the product

among the target population not presently buying or stocking firms brand.

They move on to say sales promotions are the occasioning events that may be needed

actually to move some customers into action. If we know there is a want for the product

and know that the factors inhibiting purchase are factors that can be overcome by a

material incentive, we still need to consider what the effects of a promotion will be long

term, since some promotions may secure sales but not additional customers.

www.edul.edu/alex suggests some sales promotion opportunities. These opportunities

involve increase in sales by providing extra incentive to purchase, attract customer

traffic and maintain brand or company loyalty, reminder functions for instance

calendars, T-shirts, impulse purchases increased by displays, contests generate

excitement especially with high pay offs.

20
http://www.edul.edu/alexhttp://www.edul.edu/alex


21/58

According toJewel (1995) functions of consumer promotions are; to draw attention to

product, to encourage sales, to increase usage rate, to target a particular segment and to

expand off-season sales. Additionally, he suggests that the function of trade promotions

among others is to develop good will.

2.2.10 LIMITATIONS OF SALES PROMOTION

www.edul.edu/alex suggests three limitations of sales promotion. These are; consumers

may just wait for the incentives, may diminish image of the firm, represent decline in

the product quality and reduces profit margins, customers may stock up during the

promotion.

According to Chivandikwa (2002) sales promotion has some disadvantages. Sales

promotions encourage customers to be cherry pickers that only buy products with

offers thereby leading to the erosion of brand images. Again, they do not build long

term preference and loyalty and can demean product images, if used carelessly.

Price deals do not buy loyalty; they merely rent allegiance for a period. Constant price

deals tarnish the quality image of a product which may eventually be bought only when

the price discounted. O'Shaughnessy (1982) says coupons, though, do have their

problems. To produce the same sales increase, the coupon value must be greater than

any corresponding price reduction; the dealer may abuse the system by accepting

coupons as payment on other products while he needs to be paid extra for handling the

coupons and it is difficult to predict the redemption rate.

2.2.11 HOW SALES PROMOTION AFFECTS SALES

Connet (1993) argues that sales promotion affects sales in four ways.

Brand switching

There is a distinction between aggressive and defensive brand switching. Aggressive

brand switching occurs when the promotion induces the consumer to buy a different

brand from the brand bought previously. However, defensive brand switching occurs

21
http://www.edul.edu/alexhttp://www.edul.edu/alex


22/58

when a promotion for a brand A induces the consumer who bought brand A previously

to purchase brand A again.

Repeat purchasing

There are two types repeat purchase effects associated with sales promotion. The first

occurs simply because any purchase of the brand has implications beyond the

immediate purchase decision. The consumer forms a habit towards purchasing the

brand, sustains the habit, and learns about the performance of the brand. He further

argues that because sales promotion can induce purchases that would not otherwise

occur, this effect becomes very relevant in the study of sales promotion. Blattberg and

Neslin (1990) call it the purchase effect.

The second repeat purchase effect involves a change in purchase probability as a result

of purchasing the brand on promotion. He argues that purchasing the brand on

promotion may, for example, weaken the consumers attitude towards the brand, which

in turn may reduce the probability of a repeat purchase. This is known as the

promotional usage effect and illustrates just how important it is for a marketer to have a

balanced promotional strategy. Frequent and inappropriate sales promotion

programmes could have an adverse effect on sales.

Purchase acceleration

When consumers are induced to buy in greater quantities or more frequently than they

would normally buy, it is referred to as purchase acceleration. It will immediately

become apparent that while this may produce more sales in the short term, it is possible

that sales promotion programmes aimed at purchase acceleration may simply

cannibalise future sales thus result in no net gain.

Category expansion

This is strongly related to the concept of increasing primary demand, that is, with

demand for the general product category, the basic objective of category expansion is to

shift the demand curve to the right.

2.2.12 WHY CONSUMERS RESPOND TO SALES PROMOTION

22


23/58

There are certain theories put forward by Connett (1993).

Classical conditioning

Perhaps one of the best known examples of classical conditioning is that of Pavlovs

experiments with dogs. He observed that dogs would always salivate when food was

present. Pavlov then coupled a previously neutral stimulus, the ringing of a bell, with

the presentation of food. Eventually, the dog would salivate whenever the bell was rung

whether food was present or not. In conditioning terminology, the food serves as the

unconditioned stimulus, salivation is the response and the ringing of the bell is the

conditioned stimulus.

Applying this concept to sales promotion, it can be said that an in store display offering

some incentive to purchase the product is the conditioned stimulus, in that the consumer

associates it with the brand and an incentive to purchase. The unconditioned stimulus,

of course, is the special offer and the response is to purchase the product. The basic

rationale of classical conditioning as it applies to sales promotion is that the consumer

can be induced to form positive feeling towards a conditioned stimulus, such as the

sales promotion display by associating that stimulus with an unconditioned stimulus.

Operant conditioning

This theory was founded by B.F Skinner, in the late 30s. The basic principle of operant

conditioning is that a reinforced behaviour is more likely to persist (Blattberg and

Neslin, 1990). Skinner experimented with small animals and birds, placing them in

what became known as the Skinner Box.

As applied to sales promotion in the marketing context, purchasing the product is the

behaviour the marketer wishes to teach consumers, and a sales promotion incentive of

some kind is the reinforcement provided. A good example of operant conditioning

would be an in pack coupon that specifically rewards the behaviour of purchasing a

product (Roths child and Gaidis, 1981).

Attribution theory

The basic concept of this theory is that it describes how consumers explain the cause of

an event. According to Mizerski et al (1979), three types of attribution theories can be

23


24/58

distinguished: self perception, object perception and person perception. These differ in

terms of the object about which the attribution is being made.

Price perception theories

Webers law addresses the question of how much of a stimulus change is necessary in

order for it to be noticed. It is sometimes referred to as the just noticeable difference

concept. This law postitulates that this just noticeable difference is proportional to the

absolute magnitude of the original stimulus.

Two important concepts emerge from Webers law. First, price cuts that are less than

the just noticeable difference may be completely ineffective and, second, a base price or

reference price is important for determining the effectiveness of a price reduction.

Adaptation level theory

According to Helson (1964), this theory proposes that perceptions of new stimuli are

formed relative to a standard or adaptation level. The adaptation level is determined

by previous and current stimuli to which a person has been exposed and thus changes

overtime as a person is exposed to new stimuli. The adaptation level for judging the

price of a particular item is called the reference price.

In developing an effective sales programme, marketers must appreciate that a price

promotion is compared by consumers to a perceived benchmark a reference price.

Consumer decision making process

No discussions of the reasons why consumers respond to sales promotions would be

complete without reference to the consumer decision making process. The very first

step in the consumer decision making process is problem recognition. It is in this area

that sales promotion is very effective since a promotion such as a special display can

trigger problem recognition.

2.2.13 MEASURING THE EFFECTIVENESS OF SALES PROMOTION

Measuring the effectiveness of sales promotion depends on what objectives or tasks set.

For instance, the objective of informing customers, its success can be measured by the

24


25/58

number of requests for further information, testing customer awareness and level of

sales. According to Mullin and Cummins (2008), Sales promotion is one of the

marketers most tested and effective tools. They further argue that sales promotion

details the tried and tested methods that can give a business the competitive edge over

other companies, including off-shelf offers, joint promotions, price promotions,

premium promotion and prize promotions.

2.2.13.1 Using Sales Promotion to increase sales

According to Jewel (1995) an intensive promotional campaign will increase sales and

perhaps, market share. When promotion is withdrawn it is likely that sales will fall of

but, it is hoped, not back to the prepromotion level. Additionally, though most

promotions such as free samples will clearly lead an immediate increase in sales, on the

whole sales promotions are a short term measure and have little effect on brand loyalty

over a longer period (Needham and Dransfield (1991).

Beem and Shaffer (1981) add that a firm with a high market share will therefore be less

tempted to use sales promotion than a firm with a very small share of the market. The

cost to a seller involves both the costs of the sales promotion and the losses from being

unable to confine the promotion to prospective customers.

2.2.13.2 Using Sales Promotion for retaliatory response

Finally, Beem and Shaffer point out that competitors are least likely to retaliate if the

promoter has only a small market share; if promoter is off-season or supported by only

nominal advertising; if it expands primary demand or is perceived as an action of a

desperate competitor. On the other hand, retaliatory response is apt to be high if the

promoter already has a high market share; if rivals have high fixed costs and perishable

goods, in circumstances where the promotion appears to be working.

2.2.13.3 Using Sales Promotion to build product awareness

Several sales promotion techniques are highly effective in exposing customers to

products for the first time and can serve as key promotional components in the early

25


26/58

stages of new product introduction. Sales promotion can act as an effective customer

information gathering tool (that is sales lead generation), which can then be used as part

of follow-up marketing efforts (www.knowthis.com).

2.2.13.4 Using Sales Promotion to create interest

Marketers find that sales promotions are very effective with creating interest in a

product. In fact, creating interest is often considered the most important use of sales

promotion.

2.2.13.5 Using Sales Promotion to stimulate demand

Next to building initial product awareness, the most important use of sales promotion is

to build demand by convincing customers to make a purchase. Special promotions,

especially those that lower the cost of ownership to the customer (for example price

reduction), can be employed to stimulate sales.

2.2.13.6 Using Sales Promotion to provide information

Generally, sales promotion techniques are designed to move consumers to some action

and are rarely simply informational in nature. However, some sales promotions do offer

customers access to product information.

2.2.13.7 Using Sales Promotion to reinforce the brand

Once customers have made a purchase sales promotion can be used to both encourage

additional purchasing and also as a reward for purchase loyalty. Many companies

including airlines and retail stores, reward good or preferred customers with special

promotions, such as email special deals and surprise price reductions at the cash

register.

2.2.14 PREVIOUS RESEARCH FINDINGS

A case study of USA country

26


27/58

Although estimates vary significantly from country to country, in April 2002, Promo

magazine estimated that marketers in the U.S.A spent between 60 and 75% of their

promotional budgets on sales promotion, with the remainder being allocated to media

advertising. It appears, however that the estimate excludes personal selling from the

promotional budget ;( www.promo magazine.com).

2.2.15 CHAPTER SUMMARY

The various literature reviewed gave an insight into the topic and help to identify the

key issues that need to be explored. Literature review plays a crucial role in determining

both feasibility and the creditability of the research. The following chapter looks at the

research methodology.

27


28/58

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION

This chapter focuses on the research methodology, research designs, research

instruments that have been used to collect data. Some methodological aspects such as

Research design, data collection instruments and procedures, data presentation and

analysis techniques and summary will be discussed in this chapter.

3.1 RESEARCH METHODOLOGY

Methodology refers to the theoretical analysis of the methods appropriate to a field of

study or to the body of methods and principles particular to a branch of knowledge.

There are two main categories of research methods namely qualitative and quantitative

methods. The researcher used both qualitative and quantitative research methods to

carry out the study.

According to (Lancaster: 2005) qualitative data is data that is non numeric, which

cannot be mathematically, statistically, or both ways interpreted or analyzed. He also

defines quantitative data as data in the form of numbers which can be interpreted

mathematically, statistically or both ways. An example of qualitative research method

used by the research was interviews and questionnaires were used as an example of

quantitative research methods.

Kato (2002) argues that greater insight can often be obtained when collecting data

under a qualitative research framework through such methods as observation and

interviews thereby facilitating the understanding of the phenomenon from various

aspects.

28


29/58

3.2 RESEARCH DESIGN

The survey research design was used in order to show how the researcher;

Identifies the appropriate data collection methods.

Record findings or observations.

Makes an attempt to show accuracy of observations and interpretations.

Heppner et al. (1992) notes that, A research design is a plan or structure for an

investigation or a list of specifications and procedures for conducting a research project.

It helps the researcher to reduce error and also in obtaining empirical evidence onisolated variables of interest.

The role of the research design is emphasized by Oppenham (1998):who states that,

the design must aim at precision, logic, tightness and efficient use of resources. A

poorly designed survey will fail to provide accurate answers to the questions under

investigation. A research design can be classified in various ways, for example

exploratory, descriptive or causal. In general terms it is a general plan of one goes

3.2.1 Descriptive Survey Research design

It is a research for which the purpose is to produce an accurate representation of

persons, events or situations (Leedy 1980).

Justification for using descriptive Survey Research design

This method is essentially used for fact finding and describing a phenomenon. This is

what the researcher needed to use to find about research objectives and questions,

which included finding the impact of Sales Promotion strategies used by Sunday Mail.

3.3SOURCES OF DATA

29


30/58

There are two types of data namely primary and secondary data.

3.3.1 Primary data

Primary data is data collected for specific purpose at hand, (Kotler, 1999). The

researcher is going to collect primary data from management and customers.

3.3.1.1 Justification for using primary data

The data obtained was specifically for the purpose of the research project. This means

that the data was more relevant to the project at hand.

Primary data offers greater control over data accuracy and it was valid and reliable.

3.3.1.2 Limitations

Data collection was time consuming and more expensive as it requires a lot of resources

like money and questionnaires.

3.3.2 Secondary data

Secondary data on the other hand is data, which has been collected at earlier date and

for some specific purpose (Carswell: 1995), this data type will be collected from

published journals and Internet. According to (Aaker et al: 2004), secondary data are

data that were collected by persons or agencies for purposes other than solving the

problem at hand. They are one of the cheapest and easiest means of access to

information. Secondary data will be collected from sales records, knowledge and

opinions of staff and press. However, these secondary sources will be complemented

more by primary sources such as questionnaires and interviews.

3.3.2.1 Justification of using secondary data

It was cheap; the researcher simply had to go through the company records.

It was convenient as it does not require any third party.

30


31/58

In some cases secondary data can be more accurate than primary data. For

example, if a company wants information on the sales, profits of other

companies, it can get more reliable and accurate information from government

released sources than from the companies themselves. Secondary data was permanent and the sources were always available.

3.3.2.2 Limitations

Access to some data was difficult due to privacy.

The researcher had to select the suitable material from the present data because

some of the data was irrelevant. The researcher had to choose the quality of the data.

The initial purpose of the data affects how it is presented.

3.3.3 DATA COLLECTION TECHNIQUES

The standard questionnaire has been used as a research instrument This is a technique

of data collection in which each person is asked to respond to the same set of questionsin a predetermined order (de Vans, 2002).

Questionnaires were delivered by hand to the staff, the management and customers so

that they complete them. Also face to face interview was used.

3.3.4 DEVELOPMENT OF INSTRUMENTS

During the development of research instruments, some ethical consideration were made

so that they will be mutual understanding between the researcher and the respondents.

The information gathered was to be kept private and confidential. The participants were

made aware of that before answering the questions. Again, good research is possible if

there is mutual respect between researcher and the participant.

31


32/58

Some areas of human behaviour may be beyond the reach of observation and therefore

ethical guidelines are necessary to clarify the conditions under which the research is

acceptable.

There has been an increase in legal action by participants against researchers for alleged

misconducts by infringing the rights and dignity of participants. Thus the researcher has

to first consider this before conducting the research.

3.3.5 VALIDITY AND RELIABILITY OF THE INSTRUMENTS

Validity is how sound or effective a measuring instrument is or the degree to which an

instrument measures what it purports to measure.

Reliability is the extent to which an instrument yields the same results on repeated

trials.

The reliability and validity of the research instruments were discussed under the

research instruments (questionnaire and interview).

To test for reliability a pilot study was carried out. This was done by extracting

questions and self administering to respondents. And there was where questions in such

a way that they would test for bias by asking a question differently to give the same

answer. Some amendments were then made for the provision of the research.

3.3.6 RESEARCH INSTRUMENTS

Questionnaires (both closed and open ended questions)

Personal interviews

3.3.6.1 Justification of using questionnaires

They permitted considerable time and well thought responses.

32


33/58

The questionnaire was used so as to maintain uniformity and flow of

information.

They have proved to be cheap to put together.

Data was easy to interpret and analyse

The use of questionnaires reduced biasing error and offered greater anonymity.

Another advantage was that they allowed respondents to express their views

without the influence from the researcher.

Questionnaires ensure greater comparability of response.

Questionnaires enabled the researcher to collect large amounts of data hence the

findings were easy to generalize to the population.

However, the results of questionnaires were limited since they provided numerical

descriptions rather than detailed data.

3.3.6.2 Justification for using structured questions

Structured questions (close ended) were accompanied with possible responses and

straight to the point. This ensured that respondents did not get bored from answering thequestions. As a result the questionnaire administration was successful.

3.3.6.3 Justification for using open-ended questions.

Open-ended (unstructured) questions were designed in such a way as to leave

the respondents to answer in any way.

The respondents objectively gave their opinions without being restricted. More information was obtained.

3.3.7Personal interviews

In order to compliment the research from questionnaires, the researcher, carried out

interviews to management by means of personal interviews. An interview is a

purposeful discussion between two or more people Trochim (2000). He adds that

interviews are categorized into structured, semi structured and unstructured.

33


34/58

Saunders et al (2002) on the other hand define an interview as a data collection

technique in which the interviewer physically meets the respondent, read the set of

questions in a predetermined order and record the responses to each of the questions.

In unstructured interviews, the interview does not make use of predetermined set of

questions, the interviewer talks freely about events in relation to the topic. Interviewees

are encouraged to speak openly and frankly and to give as much detail as possible

David and Sulton( 2004).

The advantage is that no restrictions are placed on questions and are flexible hence the

researcher can investigate underlying motives. However, respondents can talk about

irrelevant issues and the collected data may be difficult to analyses, there can be

interviewer bias and respondents may answer to please the researcher.

3.3.7.1 Justification for using personal interviews

Over a face-to-face interview one can get the chance to clarify questions and

ensure that interviewees fully comprehend the questions.

Allow flexibility in language therefore bringing easier communication.

Opportunity to persuade the respondents to provide adequate answers.

3.3.8SAMPLING PROCEDURE

3.3.8.1 Target Population

According to Du Plooy (1997) population is any defined group of aggregates of

individuals, groups, organizations, objectives, social artifacts or social interactions and

events. The population is any group that is subject to research interest. The researcher's

target population is group customers and staff at Zimpapers.

3.3.8.2Sample Size

34


35/58

It is a subgroup or part of a large population. A sample reflects typical characteristics

and the main features of a population. Not all the population will be used and the

researcher therefore selected Sunday Mail, a brand for Zimpapers. The sample size was

(100) consisting of seventy (70) customers and thirty (30) staff at Zimpapers.

3.3.8.2.1 Justification for the above sample

The staff respondents had better understanding of the research topic, hence giving valid

facts. A large sample size was chosen so that the results can be more representative and

generalised.

3.3.9SAMPLING TECHNIQUE

Usually, the population is too large for the researcher to attempt to survey all of its

members. A small, but carefully chosen sample can be used to represent the population.

The sample reflects the characteristics of the population from which it is drawn.

www.statpac.compoints out that sampling methods are classified as either probability

or non probability sampling. In probability sampling, each member of the population

has a known non zero probability of being selected. They include random, systematic

and stratified sampling methods.

The researcher used both probability and non-probabilistic sampling to come up with

the sample from which to source data. Non probability sampling is whereby the chance

of selecting an element from the population is not known. The researcher used random

sampling to select staff to give questions, judgmental and convenience sampling

techniques. Both random and judgemental sampling techniques were used for

customers and random sampling was used to select staff to give questionnaires as well

as convenience sampling technique.

3.3.9.1Judgmental sampling

According to (Jain 1989) judgmental sampling involves selecting sample units based on

the researchers personal judgment of the characteristics the sample units should have.

35
http://www.statpac.com/http://www.statpac.com/http://www.statpac.com/


36/58

3.3.9.1.1 Justification for using judgmental sampling

The researcher also used judgmental sampling to select customers to visit.

The researcher used judgmental sampling to choose customers which would provide the

needed information.

3.3.9.1.2Convenience sampling

According to www.statpac.com this method is used in exploratory research where the

researcher is interested in getting an inexpensive approximation of the truth. As the

name implies, the sample is selected because they are convenient.

3.3.10DATA PRESENTATION AND ANALYSIS

This refers to how the findings of the research were presented. Data collected using

questionnaires, interviews and secondary data was analyzed to come up with

meaningful information, the research data was presented in the form of:

Tables

Bar graphs

Pie charts

Line graphs

The researcher administered all questionnaires. High standards of ethics were

maintained during the fieldwork. All responses were carefully coded and edited for

accuracy.

3.3.11 ANALYTICAL TECHNIQUES

The researcher used both deductive and inductive techniques of analyzing data.

3.3.11.1 Inductive approach

36
http://www.statpac.com/http://www.statpac.com/


37/58

This is a technique, which analyses data from particular instances to general principles,

from facts to theories. One starts from the observed data and develops a generalization

that explains a relationship between objects observed.

It condenses extensive and varied raw text data into a brief, summary format.

It establishes clear links between the research objectives and the summary findings

derived from the raw data and to ensure these links are both transparent and defensible.

It helps in developing a model or theory about the underlying structure of experiences

or processes, which are evident in the text.

3.3.11.2 Deductive approach

This is a technique that analyses data from the general to the particular case, applying

theory to a particular case. Using this analysis, a hypothesis can be deduced from the

theory.

This is the common best view of the nature of existing relationship on cases under

study.

It also enabled to show the relationship between theory and research.

3.3.12 CHAPTER SUMMARY

This chapter focused on illustrating and explaining the methods used in collecting the

needed data, the advantages and disadvantages of the using both the primary and

secondary sources of data. In this chapter an explanation of how the data was collected

and sorted out was clarified. The following chapter will focus on the analysis of the

data and interpretation of the research results to meaningful and analytical information.

37


38/58

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0 INTRODUCTION

This chapter presents the key findings pertaining to the effectiveness of sales promotion

on sales. Tables, bar charts and pie charts have been used to present the information for

easy understanding and interpretation.

4.1 RESPONSE RATE

An average response rate of 79% was achieved. This is shown below.

Table 1 Questionnaire Response Rate

Target Population Number of Selected

Population

Number of

Questionnaire

Respondent

Percentage

Response

Management 5 4 80%

Employees 25 15 60%

Customers 70 60 85,7%

Total 100 79

The table above shows that 100 questionnaires were distributed, 70 to customers, 5 to

management and twenty-five to employees. Of the hundred questionnaires distributed

seventy-nine were returned and correctly filled and these will be considered for

analysis. Fifteen out of hundred were not returned and six were spoilt. Thus the

response rate for this research was 79% which makes the research study easy to

generalize.

Table 2 Market Share and Loyalty level for Sunday Mail for the period 2000 to

2001.

Year 2000 2001

Retained Customers 40% 31%

38


39/58

Market Share 75% 54%

Source: Interview Questions

The table above shows that the market share declined by 21% between 2000 and 2001

and number of retained customers declined by 7.75%.

Figure 1A line graph showing the market share and the percentage of retained

customers for the period 2000 to 2001.

Year

0%

10%

20%

30%

40%

50%

60%

70%

80%

2000 2001

Retained Customers

Market Share

Source: raw data

Beem and Shaffer 1981 argue that a firm with high market share will therefore be less

tempted to use sales promotion than a firm with a very small market share.

Again, Gruel 1997 postulates that satisfied customers are loyal. He argues that retention

has huge profits in the name profitability, productivity and sales volume.

Table 3Response rate on the awareness of sales promotion by employees.

Response Yes Not sure No

Number 3 3 4

Percentage 30 30 40

Source: Staff Questionnaire.

The table above clearly shows that 70% of the employees did not know or were not sure

of the existence of sales promotion at their companies. Hence, it can be argued that

workers are not give proper training on how to offer the best sales promotion

techniques. Organizations must teach employees that they are service providers and

emphasize their role as marketers as given by Groonrose (1996).

39


40/58

Figure 2 bar chat showing the percentages of employees on the awareness of sales

promotion.

0 %

1 0 %

2 0 %

3 0 %

4 0 %

5 0 %

6 0 %

7 0 %

8 0 %

Y e s N o

R e sp o n

S e r ie s

Source: raw data

Table 4Questionnaire responses on the participation of employees in strategy

formulation and implementation.

Responses Yes No At times

Number 2 6 2

Percentage 20% 60% 20%

Source: Staff Questionnaire

The table above shows that 20% of the employees participate in strategy formulation

and implementation. The majority are being left out. Thus, the company must involve

or consult its employees to get some better ideas on how to formulate and plan the

strategy. Mullin and Cummins (2008) concurs that any business activity benefits from

being planned in a strategic manner.

Figure 3 Bar Chat showing questionnaire responses on the participation on

strategy formulation and implementation.

40


41/58

0%

10%

20%

30%

40%

50%

60%

70%

Yes No At times

Response

Series1

Source: raw data

Table 5: Response to customer queries.

Response Less than a

day

1-2 days 3-6 days More than a

week

Total

Number 1 2 5 12 20

Percentage 5 10 25 60 100

Source: Customer Questionnaire

The table above shows that 60% of customer queries are solved after a week and 40%

of customers said they are attended to within a week. Balridge (1997) argues that the

principal issue in complaints handling is prompt and effective resolution of complaints

including recovery of customer confidence therefore satisfying the customer in the

long-run. Thus the company should work on reducing the time it takes to solve

customer complaints.

Figure 4: Pie Chart showing the responses to customer queries.

41


42/58

Less than a day

1-2 days

3-6 days

More than a week

Less than a day

1-2 days

3-6 days

More than a week

Source: raw data

Table 6: Effectiveness of sales promotion strategies in achieving company goals.

Rate Very effective Effective Less effective Total

Response 2 5 13 20

Percentage 10% 25% 65% 100%

Source: Staff questionnaire

The above table clearly shows that the majority 65% said promotion is less effective inachieving company goals. 35% said sales promotion is effective in achieving company

goals. Thus, measuring the effectiveness of sales depends on what objectives set.

www.knowthis.com concurs that several sales promotion techniques are highly

effective in exposing customers to products for the first time and can serve as key

promotional components in the early stages of new product introduction.

Figure 5 Pie chart showing the effectiveness of sales promotion strategies in

achieving company goals.

42


43/58

Source: raw data

Table 7 Management Emphasis on sales promotion.

Rate Regularly Not often Not at all Total

Frequency 1 4 5 10

Percentage 10 40 50 100

Source: Staff questionnaire

The above shows that managers at Zimpapers do not put much emphasize on sales

promotion. 90% of the respondents concur that and 10% said managers emphasize.

Connett (1993) argues that when planning sales promotion strategy, managers need to

define the target audience, to set the budget, to develop the strategy and select the

method to be used for that strategy, implement the programs and to evaluate the

effectiveness that strategy.

Figure 6 showing management emphasize on sales promotion.

Very effective,10%

Effective,25%

Less effective, 65%

Very effective

Effective

Less effective

43


44/58


45/58

Baby Competitions,

66.70%

Bridal competitions,

25%

Other, 8.30%

Baby Competitions

Bridal competitions

Other

Source: raw data

Table 9Do you feel sales promotion influence you to buy the Sunday Mail paper?

Responses Yes No Total

Number 20 5 25

Percentage 80 20 100

Source: customer questionnaire

The table above shows that 80% of the customers said they are influenced to buy the

Sunday Mail due to sales promotion offered by Sunday Mail. According to Beem and

Shaffer (1981) sales promotions are occasional events that may be needed actually to

move some customers into action. Thus, the most important use of sales promotion is to

build demand by convincing customers to make a purchase.

Figure 8: Bar chart showing the responses on whether sales promotion influence

customers to buy Sunday Mail.

45


46/58

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Responses

Series1

Source:raw data

Table 10 challenges faced by customers.

Challenges Response

The Sunday Mail is expensive 2

The paper does not reach all places and it

is scarce

4

No quick response to queries 8

No phone calls or feedback to customers 10

Customer care is lacking 20

Other 6

Source: customer questionnaire

The table above shows that those who said the Sunday Mail is expensive were 2, those

who said the paper is limited were 4, those who said there is no quick response toqueries were 8, no phone calls or feedback were 10, those who said customer care is

lacking were 20 and the same said there are other challenges they are facing.

Gordon (1999) asserts that customers place a lot of value on the assistance and any

important information provided by the supplier. Thus, to rectify these challenges, the

company must pay attention to customer queries.

Figure 9 showing the challenges that customers are facing.

46


47/58

0 5 10 15 20 25

The paper is expensive

The paper is limited and

scarce

No quick response to

queries

No phone calls or

feedback to customers

Customer care is

lacking

Other

Number of Respondents

Series1

Source: raw data

Table 11: Effects of sales promotion on the general performance of Sunday Mail.

Efforts ResponseBring the product closer to customer 2

Draw attention of customers 1

Encourage customers to make first

purchase

3

Induce impulse buying and create good

will in the company

5

Lead to an increase in sales volume 4

Other 5

Source: staff questionnaire

The table above shows the effects of sales promotion on the general performance of the

company. Those who said it bring the product closer to the customer were 2. those who

said sales promotion draw attention of customers to make a purchase were 3. those who

said it induce impulse buying and creates goodwill in the company were 5, those who

suggest that it leads to an increase in sales volume were 4 and they argue that they were

other effects besides the stated ones. Those who said there were other effects were 5.

47


48/58

Chivandikwa (2002) supports the above effects. He argues that sales promotion bring

the product closer to the customer, draw attention to new or modified products and

many more.

Figure 10 effects of sales promotion on the general performance of the Sunday

Mail.

0 1 2 3 4 5 6

Bring the product closer to the

customer

Draw attention of customers

Encourage customers to make

purchase

Induce impulse buying and

creates goodwill

Lead to an increase in sales

Other

Number of respondents

Series1

Source: raw data

4.2 CHAPTER SUMMARY

Collected data was presented and analyzed in this chapter. Expectations from both

customers and staff at Zimpapers were outlined. The next chapter covers summary,

conclusions and recommendations of the research study.

48


49/58

CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.0 INTRODUCTION

This chapter is going to focus on the summary of findings, conclusions and

recommendations.

5.1SUMMARY OF FINDINGS

5.1.1 Market share and loyalty level.

The objective of the study was to investigate the effectiveness of sales promotion on

sales, a case of Sunday mail brand. The market share was found to have declined by

21% and the level of loyalty customers dropped to 31% in 2001(see table 2)

5.1.2 Sales promotion awareness by employees

The researcher found out that the majority of its employees were not aware of the

existence of sales promotion at their company. Seventy percent (70%) of the

respondents did not have an understanding of what it is (see table 3)

5.1.3 Participation of employees on strategy formulation and implementation

The researcher noted that management do it alone in the formulation and

implementation of sales promotion strategies. Sixty percent (60%) of the respondents

said they are not involved whilst forty percent (40%) of respondents said they are

sometimes involved (see table 4).

5.1.4 Response to customer queries

The researcher noted that sixty percent (60%) of customers are attended to after a week.

(see table 5)

49


50/58

5.1.5 Effectiveness of sales promotion

The company is having serious problems with its sales promotion strategy. Sixty five

percent (65%) of the staff said it's partly delivering the intended results. Thirty five

percent (35%) said they are achieving their goals. (See table 6).

5.1.6 Management emphasis on sales promotion at Zimpapers.

The researcher found out that management at Zimpapers does not put much emphasis

on sales promotion strategy. This is supported by ninety percent (90%) responses. Only

ten percent (10%) of the respondents said they do (see table 7)

5.1.7 Sales promotion preferred by most customers

The researcher noted that most customers prefer baby competitions to bridal

competitions. Of the respondents asked sixty-seven percent (67%) said baby

competitions are their favourite (see table 8).

5.1.8 Do you feel sales promotion influence you to buy the Sunday mail paper?

The researcher noted that eighty percent (80%) of the customers are influenced to buy

the paper because of sales promotion (see table 9).

5.1.9 Challenges faced by customers.

The researcher found out that customers are facing some challenges. The challenges are

that there are no phone calls or feed back, customer care is lacking, no quick response

to queries, the paper is expensive and is limited and many more (see table 10).

5.1.10 Effects of sales promotion on the general performance of Sunday mail.

The researcher noted that sales promotion has some effects on the general performance

of the company. These include draw attention of customers, encourage customers to

make a purchase, lead to increase in sales volume and many more (see table 11).

5.2 CONCLUSIONS

From the research findings, the following conclusions were made;

Proper implementation of sales promotion lead to reduced costs for

organization, increase customer loyalty and increase sales volume. Thus,

50


51/58

benefits are accrued from proper implementation of sales promotion by Sunday

mail.

Customers place great value on problem-solving and feed back, attending to

queries quickly and customization From the research findings, the researcher concludes that sales promotion was

less effective in achieving the targeted goals for Sunday mail.

Again, it was noticed that customers were facing a lot of challenges. There is

need to ensure that these challenges are rectified so as to enhance organizational

performance.

Managers need to communicate with their employees on the present state of the

organization, what its plans so as to raise awareness of what is happening attheir company.

Employee participation is very important in that decision making must not be

centered only to managers but employees must be given room to talk and

discuss what they think can be done to meet their goals.

Poor implementation of sales promotion results in the company making losses

due to increased costs incurred by the organization.

5.3 RECOMMENDATIONS

Pertaining the findings and conclusions drawn in this research study, the researcher

suggests the following recommendations;

The Sunday mail should involve employees in formulation and implementation of the

sales promotion strategy. This helps the company to be in touch with its workers and

thus build a good relation between them.

The Sunday mail should also invite their customers to big events like the Sunday mail

bridal show to share the excitement together and to be always in touch with their

customers. This strengthens their relationship as they will feel appreciated and wanted.

51


52/58

Social responsibility must be practiced by Sunday mail, for example a young writers

column where stories will be submitted to the Sunday Mail. The winner is given the

price or the story is published in the paper.

Employees should be given more fringe benefits such as company house, company car

and being paid fees for their school children. These benefits help them to work hard and

not to neglect their duties. Thus motivation of workers is very vital to the organization's

performance.

Employees must be aware of what is taking place within their company. To raise

awareness regular meetings must be held by management. The organization should

emphasize more on internal marketing. It must have well motivated staff that can be

trusted and be given responsibilities.

To improve the effectiveness of sales promotion on sales, managers must compare with

other media company like the standard in order for them to be in line with what is

happening in the market.

When planning sales promotion strategy, the company should identify the targeted

population, define the objectives, set the budget, develop the strategy and to implement

the programmes. Thus, managers must plan this strategy in a strategic manner.

5.4 SUGGESTIONS FOR FURTHER STUDY

With the summary, conclusion and recommendations forwarded above, the researcher

declares this research study complete. However, the research topic is left wide

open to any other researcher who might have an interest in this research topic.

5.5 SUMMARY OF THE PROJECT

The research project was focusing on investigating the effectiveness of sales promotion

on sales. Background of the study, search objectives and assumptions were described in

chapter one as well as definitions of terms. Theoretical concepts relating to the study

were given in chapter two. This was where literature relevant to the research was given.

52


53/58

Research methods instruments were also discussed. Data collected from the

methodology was presented in the form of tables, charts and graphs. After presentation

the data was then discussed and analyzed to achieve results. Summary of findings,

conclusions and recommendations were given.

53


54/58

References:

Belch, G.E and Belch, M.A (2004) Advertising and promotion (6th edition).Mc

Bennet; P.D (1988) Dictionary of marketing terms.American Marketing

Association: Chicago.

Chivandikwa,J.N(2002)Principles of Marketing,Mount pleasant:Harare

Cundiff, E.W (1995) Foundations of Mord

Documents

Getrude Final Project