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SALES PROMOTION AND CONSUMER GOODS: AN ASSESSMENT OF NEW PRODUCT INNOVATION (A STUDY OF BIGGIE COMPANY, PRODUCERS OF BIGGIE COLA)

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Sales promotion involves the marketing activities other than advertising, publicity or personal selling, that stimulate consumers’ purchase and dealer effectiveness. The success of any organization largely depends on customers’ patronage.

Before any product or service can be sold, the use of promotional technique and communication is very necessary for achieving the target objectives of that organization. The customers are very important in this present era, this is because without the consumers there will be no marketing and promotional activities of products for effective sales promotion, the consumers have to be aware of that product before it can be patronized for rapid sales.

Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product (i.e initiative that are not covered by the other elements of the marketing communications or promotional mix). Sales promotion are varied often, they are original and creative and hence a comprehensive list of all available techniques is virtually impossible (since organizational sales promotion are launched daily). There are                                                              some of the examples of popular sales promotion activities for examples-: tasting of  food and drink at sampling points in supermarkets.

Discounted prices: the reduction in the price of a product within a short period of time. Competitions and prize draw, in Newspapers, Magazines, on the Television, Radio and Internet, sales promotion is growing rapidly in recent years because of the consumer behavior towards the patronizing of products and services.

The impact of sales promotion on customers patronage can be examined among the consumers of kaduna  north local government which the survey would be focused on household product such as soup detergent, noodles, cosmetics and toothpaste which are produced by different manufactures and use different sales promotion techniques to market their products.

Sales promotion is a promotional tool directed towards awareness creation of a product and to make more sales, the attitude of a consumers towards patronized of company’s product is less effective because of ignorance of sales promotion. The medium used to pass the information regarding the products also constitute for the product to be known to consumer which leads to less patronage by the consumers, product that the are displayed in that market, the sales force make use of a particular technique which may not draw the attention of the consumer towards purchase.

Sales promotion stimulates trial, increase consumer demand or impure product availability, and the firm use it to stimulate consumer purchase or aid dealer effectiveness. Sales promotion when directed at consumers is used to obtain the trail of a product to introduce a new or improved product to encourage repeat or greater usage by current users.

When directed at sales people it innovates sales force, stabilize fluctuating sales pattern, it educates sales force about product improvement. And when directed at resellers, it increases resellers inventories, to improve product distribution to obtain display and other support for products.

1.2         STATEMENT OF THE PROBLEM

The problem faced in the marketing is lack of awareness of the product by the consumers. The consumer purchases product that are displayed in the market but there is no proper communication  between the sellers and consumers. The dealers in that market buys products from sales men but lack knowledge of the product in the market the problem faced are:

  1. lack of awareness of the products by the consumers
  2. placement of the products in the shops without carrying out sales promotion and not minding if the products would be bought by the consumers on time or not.
  3. the attitude of consumers toward sales promotion is less effective
  1. Objectives of the study

1.To understand the impact of sales promotion on consumer goods

2.To understand the relationship between sales promotion and consumer goods

  1. Research questions

1. What is the impact of sales promotion on consumer goods

2. What is the relationship between sales promotion and consumer goods

  1. Research hypothesis

H0: There is no relationship between sales promotion and consumer goods

H1: There is a relationship between sales promotion and consumer goods

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