A THESIS SUBMITTED TO THE DEPARTMENT OF

BUSINESS ADMINISTRATION

IHEUKWUMERE OBI CHINONYEREM PG/MBA/00/31435

THE NATURE AND PRACTICE OF SALES PROMOTIONIN NIGERIA

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A THESIS SUBMITTED TO THE DEPARTMENT OF MARKETING, FACULTY

BUSINESS ADMINISTRATION, UNIVERSITY OF NIGERIA ENUGU CAMPUS

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THE NATURE AND PRACTICE OF SALES PROMOTION

MARKETING, FACULTY OF

, UNIVERSITY OF NIGERIA ENUGU CAMPUS

DN : CN = Webmaster’s name O= University of Nigeria, Nsukka

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THE NATURE AND PRACTICE OF SALES PROMOTION IN NIGERIA

BY

IHEUKWUMERE OBI CHINONYEREM PG/MBA/00/31435

MARKETING PROGRAMME

DEPARTMENT OF MARKETING

UNIVERSITY OF NIGERIA

ENUGU-CAMPUS, ENUGU

JULY, 2003.

TITLE PAGE

iii

THE NATURE AND PRACTICE OF SALES PROMOTION IN NIGERIA

BY

IHEUKWUMERE OBI CHINONYEREM

PG/MBA/00/31435

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR

THE AWARD OF A POSTGRADUATE MASTER OF BUSINESS

ADMINISTRATION (MBA) DEGREE IN MARKETING

FACULTY OF BUSINESS ADMINISTRATION

UNIVERSITY OF NIGERIA

ENUGU CAMPUS, ENUGU.

SUPERVISOR: NNOLIM D. A. MRS.

CERTIFICATION

iv

Iheukwumere Obi Chinonyerem, a post-graduate student of the

department of marketing with registration number PG/MBA/00/31435,

has satisfactorily completed one of the requirements for the award of

a postgraduate Masters of Business Administration (MBA) degree in

Public Relations, Department of Marketing.

This project work/report is an embodiment of original work and

has not been submitted in part or full for any other Diploma or Degree

of this or any other university or polytechnic.

----------------------------- ------------------------------ Nnolim D.A. Mrs. Dr. (Mrs) J.O. Nnabuko Supervisor Head of Department

v

DEDICATION

This work is dedicated to my mother lovely siblings and finally

to Almighty God for his Mercy and protection over me.

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ACKNOWLEDGEMENT

I give thanks first of all to the Most High God for his guidance

and protection through the period of the course and project report. It

was his grace that saw me through.

Further, I thank my supervisor, Mrs. D. A. Nnolim, who more of

a Mummy and of course a source of inspiration to me, for her

constructive criticisms and corrections, which brought out the best in

me and made me realize the title I know each time I was corrected.

I also thank the lecturers the contributed in one way or the other

to see that I completed the MBA Programme and to my friend

Mgbodile “Obival”. Finally to the typist who did a commendable

secretarial work.

Iheukwumere Obi Chinonyerem

PG/MBA/00/31435

July, 2003.

vii

ABSTRACT

This is a research project carried out to identify and determined

the nature and practice of sales promotion in Nigeria.

A sample of 466 respondents were selected from the consumer

and industrial managers. Both primary and secondary data were

collected and analyzed using chi-square test.

The researcher, based on the data collected and analyzed,

summarized, concluded and recommended as follows:

That sales promotion managers (users) should have mastery of

scheduling sales promotion campaign. The promotion should be

moderately entertaining and brief so that an induce audience

remained exposed to the promotion. They should know at what

point(s), in the product life cycle of any goods or services they are

marketing, sale promotion is most likely to be effective.

Government should take additional measures at intra-

professional and consumer levels to further ensure the maintenance

of ethical standards in sales promotion campaigns in Nigeria.

Finally management should establish the sales promotion

objective(s) select appropriate tool or technique(s), develop the

programme, pretest the ideas, implement and control the programme

and evaluate the consumers response or depth or impact.

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LIST OF TABLES

Table 3.1 Possible Demographic variables and attributes in

Measures instrument

Table 4.i Age and Sex Distribution of respondents.

Table 4.ii Education Qualification of respondents

Table 4.iii Income level of respondents

Table 4.iv Company’s Age

Table 4.v Genuineness of Sales Promotion

Table 4.vi Increase in Sales as a result of sales promotion

Table 4.vii Types of sales promotion techniques mostly used by

organizations in Nigeria.

Table 4.viii Increase in profit as a result of use of sales promotion

Table 4.ix Appraisal of participation in sales promotion activities

Table 4.x Factors that contributes to increase in sales promotion

adoption in Nigeria.

Table 4.xi The acceptability of sales promotion as a marketing

strategy

Table 4.xii Code of ethics consideration in the practice of sales

promotion in Nigeria.

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Table 4.xiii Increase in Consumers long term demand as a result of

sales promotion.

Table 4.xiv Chi-square test: Consumers accept sales promotion as

marketing strategy.

Table 4.xv Chi-square test: Companies who engage in sales

promotion does not always abide by its code of ethics.

Table 4.xvi Chi-square test: Sales promotion increases the demand

of products by consumers.

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TABLE OF CONTENTS

Title page ii

Certification iii

Dedication iv

Acknowledgement v

Abstract vi

List of table vii

Table of Contents ix

CHAPTER ONE

1.1 Introduction 1

1.2 State of Problems 4

1.3 Objectives of the study 5

1.4 Significance of Study 6

1.5 Research Hypothesis 7

1.6 Definition of Terms 7

1.7 Limitations of Study 7

CHAPTER TWO

2.0 Literature Review 9

2.1 Introduction 9

2.2 The Review 10

2.3 Sales Promotions activity in Nigeria since

post-independence till the late Eighties 12

2.4 Sales promotion in Nigeria in the Late Eighties 14

2.5 Sales promotion in Nigeria from the Ninties till date 17

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2.6 Factors that contributes to increase in Sales Promotion

adoption in Nigeria 21

2.7 Prospects and Problems of sales promotion 24

2.8 Designing and Managing sales promotion 27

2.8.1 Establishing a Sales promotion objective(s) 29

2.8.2 Selecting the sales promotion tools 30

(i) Premiums 31

(ii) Contents 32

(iii) Sampling 34

(iv) Demonstration 35

(v) Consumer Deals or Price incentives 35

(vi) Point-of-purchase promotion or point of sale

promotion (POP) 36

2.8.3 Developing the sales promotions programmes 36

2.84 Presenting the programme 37

2.8.5 Implementing the sales promotion programme 37

2.8.6 Evaluating the sales promotion results/effectiveness 38

2.9 Ethical Considerations 41

CHAPTER THREE

3.0 Research Methodology 46

3.1 Introduction 46

3.2 Research Method 46

3.3 Research Design 48

3.4 Population and Sample 49

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3.5 Measuring Instrument 50

3.6 Nature of Questionnaire 51

3.7 Data Collection 51

3.8 Method of Data Collection 52

3.9 Method of Data Analysis 52

3.10 Expected Results 53

3.11 Summary 53

CHAPTER FOUR

4.0 Data Analysis and Results 54

4.1 Result of Findings 54

4.2 Distribution Tables of Key Responses from respondents 59

4.3 Hypothesis Testing 68

4.4 Discussion and Findings 76

CHAPTER FIVE

5.1 Summary and Recommendation 80

5.2 Recommendation for Further Study 81

Bibliography

Appendix I - Letter of Identification

Appendix II - Questionnaire

Appendix III - Hypothesis Working

xiii

1.1 INTRODUCTION

Sales promotion had been adopted by business firms and

marketing practitioners long before the coming of Europeans to

Nigeria in 18th/19th centuries. As a matter of fact, many business firms

had been using sales promotion in marketing their goods and

services to Nigerian consumers before the coming of the Europeans

to Nigeria, and before the sad Biafra – Nigeria war, of the sixties

(1967 – 70).

Multinational firms, mainly of European background or origin

had adopted sales promotion practices and strategies in selling

products and services to their Nigerian Customers and or consumers,

before and after 1914, (the year/period of the amalgamation of the

Northern and Southern protectorates of Nigeria) to the present day

civilized Nigerian society / consumer. (Nkem 1999).

Before the arrival of the Europeans in Nigeria, Nigerian

Entrepreneurs/business organizations had several unorthodox

methods of carrying out sales promotional activities, such as going

from hamlet to hamlet, village square to village square or from town

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to town with their products, bargaining and negotiating prices for their

produce. Also during local market days, sales promotion was carried

out or done by ringing bells in market squares, and through this

means, consumers, were attracted to bargain for prices and will

invariably wind up, buying a commodity or product of their choice at a

reduced price, or bargained price, or price off.

In Nigeria today, sales promotion is still common. Sales

promotion is practiced during auction sales, Bazaar sales, Christmas

period, Easter period and during other special events.

Sales promotion is important for reaping immediate fruit

achieving immediate returns or achieving success at the market

place, as far as marketing of goods and services are concerned.

Among, the business firms that had adopted or had been

making use of sales promotion in the marketing of their goods and

services in Nigeria are all blue chip companies, quoted in Nigerian

Stock Exchange such as Nigerian Breweries PLC, Cadbury PLC,

Nestle PLC, Christleb PLC, Lever Brothers, U.A.C. Group of

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Companies, Neimeth Pharmaceutical company, Guinness PLC, 7up

bottling company and all seasoning companies etc.

Sales promotion is an indirect form of marketing promotion

intended to stimulate quick action.

It is those marketing activities-other than personal selling,

advertising and publicity-that stimulate consumer purchasing and

dealer effectiveness, such as display, shows and exhibitions,

demonstration, coupons, sweeps-take competition, contests,

samples, premiums, trade allowance, point of purchase displays,

cent-off packs and dealer allowances, and other known routine selling

efforts that are usually of short term activities.

Sales promotion can also be seen as a form of “incentive

marketing” Incentive marketing, among other things, helps to ensure

repeat purchasing when well executed, and repeat purchasing is the

key to successful marketing or successful business (Schewe 1987).

More specifically, however, sales promotion can be defined as a set

of activities made up mainly of immediate or delayed ‘incentives to

purchases, expressed in cash or in kind over a short period and

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whose main objective is to increase the sales volume for any product

or service.

Even though most sale promotion campaigns are aimed at

achieving short-term sales objectives, it must be noted that it can also

perform the function of helping to achieve long-term sales and other

marketing or business objectives. Sales promotion has for instance,

been increasingly shown to be a long-term image builder, awareness

creator and a veritable communication medium (Bantick, 1980).

Furthermore, sales promotion contributes to the utilitarian value of

advertising. For example, much of modern advertising is geared

towards publicizing the promotional effort. Also, sales promotion

facilitates the processes of product or service differentiation and

effective positioning in an increasingly competitive market as exists in

Nigeria. Sales promotion is, of course, a marketing tool that can be

gainfully employed in offensive and defensive marketing of any

product or services, (Nwosu 2001).

According to (Kinnear and Bernharelt, 1993), sales promotions

is intended to aid both consumer pull an dealer push. They thus

categorized common sales promotion techniques in terms of their

consumer and dealer focus.

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Consumer pull promotion techniques are such activities like

sampling, price incentives or deals, coupons, cent-off-offer, returned

or rebate, contests, sweeps-take competition, premium like free-in-

the mail, self liquidatory and reliable containers. While trade push

promotions techniques are such activities like training, inventory

controls, displays and financial assistance.

Before the sixties, sales promotions has not become popular,

but in recent years have grown so rapidly between 1969 and 1976,

and much more in the late eighties. It is this valid increase therefore,

and especially now that world economies like Nigerian are in down

turns, that has promoted this research “The Nature and Practice of

Sales Promotion in Nigeria.”

1.2 STATEMENT OF PROBLEMS

The use of sales promotion helps in promoting sales of a

particular product. But it has many problems which includes

(1) The problem of assessing the growth / development of sales

promotion from post independence till date.

(2) The problem of determining factors that contributes to increase

in sales promotion adoption in Nigeria.

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(3) The problem of knowing the prospects and problems of sales

promotion.

(4) The problem choosing the best available sales promotion

tool(s), in other to achieve the set goal.

(5) How ethical those companies are whether the various offers

projected during the sales promotion are genuine and fulfilled.

1.3 STATEMENT OF OBJECTIVE

A not-so-quiet revolution is currently taking place in Nigeria’s

contemporary marketing scene. That revolution is the increased use

of sales promotional campaigns by many companies in the country to

facilitate the sale of their products in the depressed and de-regulated

economic system in which Nigeria now finds itself.

So considering the enormous cost, it has become necessary to

evaluate this action to determine the cost effectiveness of this

expensive programme and the response.

(i) To determine the major type(s) of sales promotion

practiced in the country.

(ii) To determine how sales promotions activities are

executed.

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(iii) To determine the prospects and problems of sales

promotion.

(iv) To determine the effect of sales promotions on

consumers long term demand for products/services so

promoted.

(v) To assess the acceptability of sales promotion as a

marketing strategy by consumers.

(vi) To determine how to design and manage sales

promotion.

(vii) To assess their ethical consideration while engaging in

sales promotion.

1.4 SIGNIFICANCE OF STUDY

That sales promotions activities have been rapidly on the

increase in recent times, indicates its importance in the marketing of

products.

The extent of company’s sales that is attributed to the

effectiveness of sales promotion is not yet determined.

The determination of this will enable companies in relation to

the cost involved decide whether to continue or not.

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The result of this research will enable sales promotion manager

or director to know how to position their product and carry out their

sales promotion strategies ethically.

Again, this equally will contribute to efforts at enhancing people

continuing understanding or the rationale of sales promotion

campaign.

1.5 DEFINITION OF TERMS

(1) Nature – Type or kind.

(2) Practice – To do something regularly as part of your normal

behaviour.

(3) Sales – An act or the process of selling something.

(4) Promotion – Activities done in order to increase the sales of a

product or service; a set of advertisements for a particular

product or service.

1.6 LIMITATIONS OF STUDY

Due to limited financial resources, this study is carried out only

in four major states of the federation. Abuja, Enugu, Lagos and Port

Harcourt because of its large population and position in the country

xxi

with a manageable sample size which the researcher can

conveniently cope with.

Again, the available time within which to complete the study is

short. As such, the researcher must of necessity use an easily

accessible population.

xxii

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 INTRODUCTION

The topic for research, “the Nature and practice of sales

promotion in Nigeria is relatively a new one. But studies have been in

the area of sales promotion.

The researcher here reviewed works done in the related area,

irrespective of background, of particular interest to the researcher is

the nature and practice of sales promotion in Nigeria.

Within the limited time available to the research, “He made

efforts to find and review literature on sales promotion without

prejudice thus include trips to the National library, UNN, ESUT library,

Nigeria bottling company PLC., 7up Bottling Company Plc, etc.

In this study, an attempt will be made to review related literature

which explain factors that lead to sales promotions increase and the

patterns of designing and managing sales promotion activities to

determine its sales and cost effectiveness and its effectiveness and

ethical implications in Nigeria.

xxiii

The literature reviewed here include Journals, magazines,

unpublished articles, sales promotion books, advertising books,

marketing books and from workshops.

2.2 THE REVIEW

A not-so-quiet revolution is currently taking place in Nigeria’s

contemporary marketing scene. That revolution is the increased use

of sales promotional campaigns by many companies in the country to

facilitate the sale of their products in the depressed and de-regulated

economic system, which Nigeria now finds itself.

Even though sales promotion gained real recognition as a tool

of marketing in Nigeria as far back as the early 1960’s (Nwosu 2001).

Historically, it can safely be said that the use of sales promotion

techniques in modern marketing in Nigeria started with the multi-

national trading companies like the Leventis, Kingsway and U.T.C.

stores. Their sales promotion activities came mainly in the form of

money-off-offers and offer of gift items like balloons and Christmas

trees. Nwosu (2001) equally stated that such offers were usually

backed up by intensive publicity and advertising to draw the attention

of the public or customers to them. It is on record that these sales

xxiv

promotion efforts which were seasoned usually resulted in high

customer traffic and greater patronage for the products of these

companies. Also among the early sales promotion efforts in Nigeria

was the inclusion of gift items like balloons, toys, pencils, ball-point

pens and erasers inside product packs like tooth pastes and

detergents.

It was not until the late 1980’s that sales promotion witnessed a

dramatic change in the Nigerian Marketing Scene. This period

marked the beginning of what is now described by Nigerian marketing

experts as the High profile promotional era which is characterized by

fabulous cash and other material incentive to customers. In 1987, for

instance, the Nigerian Bottling Company Launched a promotional

Campaign tagged “Animal Kingdom Promotion”. Its main aim was to

create market for sprite, one of its mineral water brands. Nigeria’s

second largest soft drink bottler, the 7up bottling company, also within

this period made an aggressive re-entry came with intensive

advertising and sale promotion efforts that ushered in the promotion

war between the 7up bottling company and the Nigerian Bottling

Company. The gifts offered in contemporary Nigeria Sales promotion

scene range from houses, cars, motor-cycles, scholarships, overseas

xxv

trips, refrigerators, deep freezers, colour televisions, video sets and

sewing machines.

But how effective are these sales promotion campaigns? Can

we justify the huge amounts that are usually spent on them? How

ethical are these sales promotion campaigns/what type or sales

promotion do they engage?” finding answers to these questions are

important because this is what will determine the survival and growth

of sales promotion as a veritable marketing tool in Nigeria, as well as

ensure that it is practiced professionally, responsible and with the

required results.

2.3 SALES PROMOTIONS ACTIVITY IN NIGERIA SINCE POST –

INDEPENDENCE TILL THE LATE EIGHTIES

Since post independence, except in the late eighties,

management of the marketing promotional mix strategies of

organization in Nigeria was still in the rudimentary stage. This was

due to limited supply or scarcity of virtually all goods and services.

Many marketing and management scholars in Nigeria like Nnolim

(1979), noted that as a result of scarcity of goods and services in

Nigeria, marketing institutions and firms were still in the developing

xxvi

stage. This is certain because as many scholars have proved that

marketing is usually identified with an economy of abundance where

a nation produces far beyond the substance needs.

Also, Odia (1979), saw that the totality of the Nigerian economy

was growing rapidly as a result of the oil boom, while a number of

sectors or activities were known to lag behind. He identified

marketing as one of such activities.

To further prove, that marketing activities were neglected in

Nigeria since post-independence till the late eighties, the centre for

management development in Nigeria (1975), carried out survey on

the management training needs in Nigeria” and found that marketing

was one of the problem areas were remedial management

development effort should be intensified.

This observation suggests that sales promotion, as a marketing

promotional mix strategy was not much emphasized in Nigeria from

early sixties to early and middle eighties. According to Nwokoye

(1984), Nigeria was seen as a seller’s market where the producers

instead of being customer oriented were only interested in the size of

their profits. Nwokoye went further and noted, that this state of affair

is as a result of scarcity of essential goods in Nigeria.

xxvii

Altatisa (1979), in his own contribution said that the problem of

marketing in Nigeria was the problem of managing prosperity caused

by the sudden upsurge in demand which cannot be immediately

matched by increased production.

In line with the above views, Unamkpa (1978), saw the general

image of retail stores in Nigeria as lacking consistency. He further

noted that Nigeria store owners have not explored the use of impute

buying, nor made the selling environment attractive and or displayed

their marchandize in an appealing manner. He further reported that

most local stores in Nigeria were not economically positioned to

undertake expensive publicity campaign and advertising programmes

in the mass media, marketing as a function therefore was neglected,

and if ever used, at a minimum.

2.4 SALES PROMOTION IN NIGERIA IN THE LATE EIGHTIES

Although the overall level of commercial activities grew

tremendously in the post-independence era in Nigeria, some

impediments to the development of marketing was inherent. Today

these problems have given way to recent actions, purposeful,

xxviii

responsible, risk taking action of a man as entrepreneurs,

manufacturers, dealers and managers alike.

As a depressed economy, there are bound to be problems of

low consumer demand of goods, which requires marketers,

researching and finding out ways to stimulate demand. There is also

the proliferation of goods belonging to the same product lines and

class, and also enhanced goods substitution which geared up

competition among manufacturers, and subsequently stirred up

consumer choice preference. This observation attests to why the

researcher claimed that sales promotion activities in Nigeria are

rapidly expanding.

Within 1978 and 1979 alone, almost all the companies in

Nigeria embarked on one form of sales promotions activities or the

other. The Nigeria Bottling Company (NBC) alone launched two

competition, together with other product packages. Within the same

year, the seven up Bottling company, launched the “Naira Rain

contest” and the Nigerian Breweries also launched the “Breen Sands

Shandy cash plus offer”, to mention but a few.

However, as Emoekpere (1988), observed that strategic

marketing has been the order of the day. He confirmed that a lot of

xxix

tactical maneuvers have become the order of the day. According to

him, the situation is very much in evidence with respect to the

breweries.

In line with Emoekpere’s observations, the researcher also

observes that sales promotional techniques in Nigeria is increasing.

Few years ago, the Nigerian Bottling Companying introduced the big

convenient size 1.5 litre plastic bottle design for its products. Lever

Brothers Nigeria PLC designed and introduced a new blue brand

margarine brandy sachets at low price. Emoekpere 1988, went

further and made the following recommendations. He observed that

two distinct social economic groupings are emerging in Nigeria the

very rich and the poor. He showed satisfaction when he further noted

that these two distinct classes are being satisfied and appraised our

detergent manufacturers which have already shown creativity in this

respect by offering packaged and non-packaged detergent to the

market. Cosmetics manufacturers Emoekpere further noted were not

left in the race.

Improvement in our economy has increased business activities.

Nwokoye (1989), identified that there has been an intensified activity

in marketing as a managerial function as well as increased

xxx

professionalization in marketing. This situation he further observed is

due to our changed and continued growth in domestic demand and

increasing sophistication of consumers improved infrastructure

facilities and good government economic policies that made our

private sectors to increase investments in domestic products.

Judging from Nwokoye’s views, we see that as a result of

current changes in our economy, and as a pre-condition for survival

therefore, a business has to be in harmony with the developments in

its surroundings. To this effect some authors in business recognized

the importance of coping with the “future stocks” that can influence

individuals, institution and society as a whole. Davidson (1972),

summarized this problem when he was looking at the strategic

environmental monitoring systems in economies, and found that

environmental changes is a fact of life in our increasing complex

world. To cope with the “future shocks”, he said that marketing has to

play a major role in interpreting the environment for an organization.

He further noted that for marketing to perform this function, a broad

awareness and understanding of environmental changes is

necessary for professionals in this field at the top management level

xxxi

and at the middle management level. If the marketing planning

process is to be successful.

In line with the above recommendation, Emoekpere (1988),

observed that the behaviour of the average Nigerian Consumer today

corresponds to what Shama Abraham observed for American

consumers during the period of stagflation. Emoekpere went further

and noted that most Nigerians no longer engage in conspicuous

consumption. He said that Nigerians now Judge product and services

in a new way and have become more sensitive to price and demand

value for their money.

2.5 SALES PROMOTION IN NIGERIA FROM THE NINTIES TILL

DATE

Nwosu (2001) labeled 1991 the most significant or outstanding

sales promotion year in Nigeria’s contemporary history. This is

because of the volume, reach and intensity of the sales promotion

efforts that were understaken in the country that year, as well as the

large amounts of money spent by the various companies involved in

the sales promotion campaigns. In that special sales promotion year

in Nigeria, there were many sales promotion efforts. While several

xxxii

were national in scope, others were restricted to specific regions or

geographical locations. Prominent among these national sales

promotion campaigns were the magi Dream House Dash, the Duntop

Elite safety-on-wheels Bonanza, the Bournvita Dream Bonanza and

the Coca Cola family Bonanza.

The Coca-Cola family Bonanza is reported to be the first

promotion campaign in Nigeria to offer five Jetta Executive cars, 64 x

20 inches television sets, 20 refrigerators, 4 cane furniture sets, 64

video sets. 64 gas cookers, 64 stereo sets, 168 cassette players, 100

Ice Coolers, 86 bicycles, 140 blenders, 208 Walkmans, 1000 wall

clocks, 36 toasters, 4 food processors and 1000 T-shirts. If number of

entries was to be the only indicator of any sales promotion efforts

then we would be right to conclude that the Coca Cola family

bonanza Campaign was a huge success. It was reported for instance,

that in the first draw alone in the competition or promotion, more than

two million entries were received (business Times, 1991). But we

have to go beyond the entries figures to determine the effectiveness

of the sales promotions campaign. It will for instance, be necessary to

measure the other promotions effect of the campaign on sales.

Nwosu (2001).

xxxiii

One inescapable point that can be made about the 1991 Coca

Cola family blast, however, is that it seemed to have lent support to

the popular marketing or promotional maxim that an increase in the

promotional budget of a company will lead to a more than

proportionate increase in the promotional budget of its competitors

Nwosu (2001). This is because two weeks after this Coca Cola

campaign the archrival of the company and its number one

competitor, the 7up bottling company launched its own promotion

campaign tagged 7up express promotion. And in this campaign as

many as 13 Tetta executive cars, 120 Suzuki motorcycles, 50 17-

inches colour television sets, electric generators, video sets,

refrigerators, tape record/players, T-shirt and one million free drinks

were offered by 7up company to prospective buyers.

The “promo-war” did not end there. Three months after the

above described 7 up campaign, the Nigeria Bottling company,

manufacturers of Coca Cola and sprite etc launched what could be

described as the biggest sales promotion campaign in Nigeria. Aptly

tagged the “money bag blast” by the company but popularly known as

the instant millionaire promotion, a staggering sum of N20 million was

offered to consumers as incentives for purchasing their brands. Other

xxxiv

prizes include N1 million each for eight star winners and many

assorted gift items Nwosu (2001).

Nwosu (2001) equally stated that beyond the Nigerian Bottling

Company and the 7up bottling company, many other companies in

Nigeria have now joined the sales promotion train, thereby increasing

significantly the popularity of sales promotion in Nigeria. In fact, it can

safely be said that since the sales promotion fever started spreading

like wild fire in Nigeria in 1991, no month passes now without the

consumers being bombared with at least one promotional campaign

or the other. Among the popular sales campaigns in contemporary

Nigeria, some of which are still going on, are the Bergedoff Instant

fortune Bonanza, the Limca Gold Spot Pearle – A – Gift – Promotion,

Cadbury Sweets Monthly Bonanza Promotion, Nasco Biscuit

Fantastic promotion, Close-up tooth paste promotions, universal

Trust Bank Savings Accounts Bonanza, General Motors promotion,

Jelee Super Gifts Splash, Coca – Cola 1-2-3 World Cup promotion,

Guinness World Cup promotion.

According to Nwosu (2001), all these have not only increased

the popularity of sales promotion as marketing strategy in Nigeria but

have significantly increased the annual promotional budgets of the

xxxv

companies that use sales promotions. What is not yet so clear is what

shares of such promotional budgets are allotted to each component

of the promotional mix (advertising, sales promotion, public relations

etc) and which one now gets the lion share. The front line competitors

for the promotional budget in Nigeria have, however, remained clearly

advertising and sale promotion. The sales promotion budgetary

allocation in many companies now seems however, to be titled in

favour of sales promotion. The Nigerian Bottling Company money

Bag Blast we discussed earlier is estimated to have cost about N40

million before it ended. The point must be made, however, that part of

this total amount was spent on such other promotional effort like

advertising itself above the line and outdoors) posters printing and

distribution, national televised draws, general logistics and other such

supportive activities. This makes it rather difficult to draw a

categorical conclusion that Nigerian companies now spend more

money on sales promotion than on the other elements of the

promotional mix.

In conclusion, he stated that with the clearly increased

popularity of sales promotion in Nigeria and the increased budgetary

allocation, it has been getting in recent years, the critical question,

xxxvi

about its effectiveness is also increasingly being asked by managers,

analysis, businessmen and even the general public. This and other

questions shall be examined later under the sub-heading evaluating

sales promotions effectiveness and results.

2.6 FACTORS THAT CONTRIBUTES TO INCREASE IN SALES

PROMOTION ADOPTION IN NIGERIA

Related literature reviewed showed a rapid increase in the

adoption of sales promotion as marketing strategy.

The advent of industrialization and mass production, brought

about the need for mass distribution or mass marketing. Business

firms and marketers no longer deemed it necessary to rely solely on

personal selling effort to dispose their products. Personal selling had

its shortcomings. Personal selling required trained staff, or personnel

or human resources in the art of salesmanship. Salesmanship itself

was becoming more competitive and expensive, as expenses

incurred to train and maintain salesmen in the payroll of business,

firms were on the increase. And this being the case, Advertising

became a new selling tool, catering to a mass market. Advertising

xxxvii

came and strenghthened selling or reinforced the selling effort. Nkem

(1999).

Nkem (1999) further noted that as time passed, many business

firms realized that as economic conditions changed, advertising cost

soared higher and higher. Business firms became uncomfortable with

the high cost of advertisement. This gave rise for consideration of a

new selling tool. This of course implied that business organizations

needed another selling tool which can give products that aggressive

or extra push required, to bring about increased sales and profit.

Therefore, it became obvious that sales promotion provided the

answer. Business firms and marketers therefore had no choice, than

to turn to sales promotion, and sales promotion was integrated in the

business firm’s selling effort, and sales promotion became the “in-

thing”.

Sales promotion has witnessed a “Frog Leap” in Nigeria, from a

humble beginning in the 19th century, until today, catering for

sophisticated Nigerian consumers.

He also state that many business firms have adopted sales

promotion in their marketing efforts and or marketing strategies, to

satisfy Nigerian consumers. The “Frog Leap” which sales promotion

xxxviii

is enjoying in Nigeria’s business environment, among business firms

operating in Nigeria, both local business firms and multinational

corporations, came about as a result of the strong Nigerian economy

of the 1970’s, fueled by the impressive returns from the oil exports

known as the “Oil Boom”.

With the oil of the 1970’s Nigerian consumers had a lot of

money at their disposal and reach to buy all classes and types of

goods and services.

Since the 1970’s till today, sales promotion had been a major

component of the marketing strategy and had contributed immensely

in the successful execution of marketing strategies and campaigns,

being an important ingredient of corporate marketing plan, Nkem

(1999).

Nkem (1999) identified “price consideration” as another major

factor that contributed and sustained the rapid increase of sales

promotion by industry and business organizations. In a currently

depressed and inflation-torn Nigeria, “price resistance” by consumers

is a common occurrence at the market place in today’s Nigeria. Since

consumers are resisting price increase at the market place,

marketers and business firms have no alternative than to turn to sales

xxxix

promotion, as a way out. Even if the product is a high quality or

desirable product, business firms must have to woo, induce and

entice consumers with free gifts in order to draw consumer

patronage, ensure their loyalty and repeat purchases, for their

products and services.

Further review of literature indicates that other motives for

carrying out sales promotion activities includes to, introduce or launch

a new product, attract new customers, in a competitive market

situation, increase sales and to increase the inventories of business

buyers, Schwartz (1973). Some other authors however noted that a

firm may also use more subtle sales promotion strategies as part of

it’s long-range plan to maximize consumer patronage. These

strategies, which made up the firm’s public relations policy, have as

their immediate objective the promotion of good will and

understanding between the business and the public. Schwartz

(1973), agreed that the image a business has affects all aspects of its

operation. He further stressed that good relationship with all the firm’s

“publics” are helpful in winning greater acceptance in the market

place. Based on Schwartz findings it became evident that companies

in trying to use sales promotion tools as a marketing strategy and as

xl

part of it’s long-range plan to maximize consumer patronage,

increase the rate of usage of sales promotion.

2.7 PROSPECTS AND PROBLEMS OF SALES PROMOTION

Sales promotion has bright prospects in the country’s business

and services. Sales promotion is critically important for achieving

success in the marketing of goods and services. Marketers, business

firms and governmental organizations e.t.c. must go for sales

promotion to give an “extra-boost” to their products and services.

Prospects abound in sales promotion and as such, organization and

individuals are encouraged to go for sale promotion. The gains of

sales promotion are plenty, made up of a basket-full of goodies, big

returns on investment (profit) and plenty reserve to be ploughed back

into the operation of the firm, for purpose of survival, growth,

development, stability and diversification pursuits Nkem, (1999).

He (Nkem, 1999) further mention or gave ten (10) problems

facing sales promotion in Nigeria as follows:

(i) Shortages of goods and services:

This is a problem in sales promotion for instance Nigerians are

going through economic crucible now because of the downturn in

xli

Nigeria’s economy, due to the erosion of the buying power of the

Naria, and bad management of Nigeria’s economy, occasioned by

inept corrupt and inefficient managers.

(ii) Unreliable Postal Services

Due to the unreliable postal (communication) services in this

country, called Nigeria, free gift items should be inserted in the

package known as “package inserts’ or “in-pack,” depending on the

size or the gift items.

(iii) Activities of unscrupulous Nigerian Businessmen, compounded

by the so called Nigerian factor are limiting factors in successful sales

promotional activities, as free-items or give always meant for

consumers or users of products and services do not reach

consumers, because the free give away items are taken, sold and in

some cases converted for personal use by agents, dealers,

distributors and other classes of middlemen – (Wholesalers and

retailers). There are cases of stealing and dis-honesty and of course

are problems that militate against successful operation of sales

promotion.

(iv) Poor Quality Packages

xlii

In certain cases the packaging of made in Nigeria products are

poor in quality and as such cannot promote the sale of made-in-

Nigeria products that are in competition with imported or foreign

products. In other to sustain the growth and encourage rapid adoption

of sales promotion in Nigeria, business firm operating in Nigeria

should improve the quality of the packages of their products.

Conscious of the fact that packaging being a component of promotion

also communicates silently to its target market or consumers, while

protecting product(s), increasing the shelf-life of products or serving

as containers for product(s).

(v) “Price-off-Promotions”

Price off promotions are difficult to operate in Nigeria, with

unstable market prices and no fixed retail prices. The market place

abounds with frequent price fluctuations. This is a problem of sales

promotion.

(vi) “Point of Sales Promotion”

We have witnessed all lands of points of sales promotion.

These are laden with problems. For instance, Cadbury PLC

producers of Bournvita had carried out sales promotional activities

using “free Cup” in their Bournvita promotions and due to this so

xliii

called Nigerian factor and unscrupulous Nigerians that lack

conscience, the “free cup” never got to the ultimate consumer(s). This

is a problem of sales promotions.

(vii) The Seventh Problem is that Currently in Nigeria, no realistic

effort is being made to give the consumer what he actually needs, in

terms of product varieties, in various seizes, with utility and needs

satisfying, goods and services that can guarantee brand loyalty or

hold in check consumers from brand switching.

(viii) The eight problem is that sales promotion suffers immensely

during product rationing. This situation convert6s to a seller’s market

and thus consumers lose their sovereignty and this factor jeopardizes

marketing concept or philosophy.

(ix) The ninth problem is in terms of achieving high sales volume,

profit is usually limited by the inability of the organization to meet

target sales or high demand for products/services because of

obsolete and problem ridden product equipment, machinery and

facilities, that are responsible for low production output in industries.

All these problems and more are the hindrances towards

achieving effective sales promotion in Nigeria.

xliv

2.8 DESIGNING AND MANAGING SALES PROMOTION

For sales promotion manager to make his function(s) more

effective, he must be forward-looking, imaginative, dynamic and

rationalistic in his decision-making. These attributes or characteristics

will contribute immensely in making him perform his duties efficiently,

enabling him to move his department forward, thereby achieving

target(s) and or accomplishing corporate goals and objectives, by

generating sales and profits for his organisation. Nkem (1999).

There is a wide spread acknowledgement from related literature

reviewed, that sales promotions are often mismanaged. Wills,

Cheese, Kennedy and Rushton (1984), agreed that the main reason

for bad management of sales promotions is that the overall

expenditures are not properly recorded. According to them, the

inability and failure to manage sales promotion activities

appropriately, arises with the confusion marketing managers have

about the exact nature and purpose of sales promotion. These

authors stated that some companies regard sales promotion as part

of advertising, some as part of sales force expense, others as a

general marketing expense. Wills and his group, further stated that

xlv

the loss of unity sales revenue from special price reductions is often

not recorded at all by some companies.

To assure more effective management of an organizations

sales promotion expenditure, Will’s and his group 1984, advised that

companies should, firstly, see that current spending must be

analyzed and categorized by the type of activity, such as special

packaging, and special point of sales.

The authors maintained that in conducting sales promotion, the

objective(s) for such promotion must be clearly stated, such as trails,

repeat purchase, distribution, display, a shift in buying peaks or

combating competition in a specified manner. After these two major

steps above as Wills and his group noted, the following procedures

must always be followed.

� Select the appropriate technique

� Pre-test the ideas

� Mount the promotion and

� Evaluate its impact in depth.

In the with the above recommendation, Kokler 1980,

recommends that the major decision steps that companies should

follow in sales promotion should be to firstly, establish the objectives,

xlvi

select the tools, develop the programme, and finally, evaluate the

consumer response. To make it clearer, we shall briefly discuss the

above steps to see how effective they appear, when applied to a

sales promotion programme.

2.8 (1) Establishing a Sales Promotion Objective(s)

Related literature reviewed shows that sales promotion

objectives are derived from basic marketing communication

objectives developed for a product. This suggests that organizations

before establishing sales promotion objective(s) must make a clear

promotion plan fully integrated into their marketing plans, and

establish means of assessment. But the question is whether the

specific objectives set for the sales promotion agrees with the type of

target market. Kotler (1980) observed the above problem and noted

that different sales promotions objectives are set for different target

markets. He thus categorized the objectives into consumer sales

promotion, retailer’s sales promotion and sales force promotion

objectives, Kotler recommends that managers should bear in mind

the objective(s) of launching the programme.

xlvii

For retailers, sales promotion objectives, Kotler stressed that

the objectives should be either, to induce the retailer to carry new

items and higher levels of inventory, encourage off-season buying

from the retailers, encourage stocking of related items, off-setting

competitive promotions, building the retailers brand loyalty or gaining

entry into new retailer outlets.

Finally, for sales promotion objectives Kotler stressed that the

objective(s) should either be to encourage support of a new product

or model by sales force, and or stimulating sales in off-season.

2.8 (2) Selecting The Sales Promotion Tools

As the researcher earlier mentioned in the introductory part of

the study, there are many tools available to accomplish the sales

promotions objectives. Kinner and Bernhardt (1983), identified and

categorized them into consumer pull promotion tools and push

promotion techniques.

Before selecting these tools for the implementation of a sales

promotion programme, Kotler (1980) noted that the promotion

planner should take into account the type of market, sales promotion

objective(s), competitive conditions and cost effectiveness of each

xlviii

tools. Wills and his research team (1984), in the same vein

recognized that the sales promotional tools have their advantages

and disadvantage, and therefore should be critically evaluated before

selection. This is certain, because all literature reviewed states

different tools for different circumstances, and this characteristic

feature differentiate them from the other. A good comparison now will

help in revealing those differences.

(i) Premiums

Related literature reviewed shows that premium is a reward that

is offered to encourage an exchange. It is a product offered free or at

lest than the regular price in order to induce the consumer to buy

another product. According to Kinnear and Bernhardt (1983) a

premium is the offer of some article of merchanize, either free or at a

lower price than usual, as an inducement to purchase another

product or visit the location where the latter product is sold.

A premium may be either one of the following listed bellow

Daza (1966).

(a) The Coupon Type

xlix

Coupons are given for products bought. Each coupon stands

for a given number of points, and these may be exchanged by the

consumer for either gift or cash.

(b) Container Premium

Reusable containers are used by a number of companies

offering highly competitive products to stimulate sales. Among the

current users are beer and soft drinks manufactures e.g. Nigerian

Breweries PLC, Guinness PLC, Nigerian Bottling Company (NBC),

Limca etc.

(c) Enclosure Premiums

The bonus may consist of a ball pen place inside (Ovaltine),

(OMO) or (Bournvita) or playing card enclosed in the package or

other give aways made directly available to the person who buys the

product.

(d) Gift Premiums

These refer to the direct give-aways that are made with every

purchase. For example, “supermarket give away perhaps a free

calendar for every purchase made.”

(e) Combination of sales and discount Premiums

l

In this techniques, two identical or similar products maybe

offered for the price of one, as in the case of a department store

which sells two shoes or clothes on a “Buy two for the price of one”

basis, or Buy-two, take one free, promo strategy.

(ii) Contests

A contest offers prizes to consumers of a reward for doing

some kind of thinking, usually about a product. Sweep stakes and

raffles which also offer prizes, usually required the participant to enter

or write his/her name in a material (paper), provided by the contest

organizers and when drawn, a winner emerges. Nkem (1999).

Another example is beer drinking contest and the fastest

drinker who emerges as winner is showered with gifts by the brewery.

Schewe and Smith (1980), identified contests as tools that offer

prizes to consumers as a reward for doing some task, they gave an

example of contests as a prize given to a consumer for showing

creative thinking about a product.

Further research carried out on contest proved that it have

some advantages and disadvantages which managers evaluate

before selecting them for programme implementation. Kinnear and

Bernhardt (1983), noted them and list accordingly. They observed

li

some of the advantages of contests as high consumer involvement,

plus added retailer support and added air excitement. In the same

vein Schewe and Smith (1980), stated that both contests and

sweepstakes, complement and reinforce point-of-purchase

advertising. They further noted that contests serve, to encourage

retailers to give the product better floor space, and to help exploit the

marketer’s promotional programme.

These authors also recognized that contests as they appear so

useful above are not without some demerits. Schewe and Smith

(1980), noted that contests and sweepstakes demand substantial

advertising support and usually does not allow trials of the product.

Based on this Kinnear and Bernhardt (1983), observed that

responses to contests and sweepstakes never involve more than 20

percent of the target audience, and that contest is prohibited in

certain states. The above observations may be right, but in the

Nigerian context, contests involve more target audience than other

sales promotional tools. But it is only evident with reputable

companies in Nigeria for example, the data the researcher gathered

from the manager of Nigerian Bottling Company, showed that the two

contests-animal kingdom competitions on “sprite and the olympic

lii

game competitions on “Coke” attracted more consumer response

than any other technique, even the on going Coca-Cola 1,2,3, world

cup competition.

(iii) Sampling

Sampling is the actual giving away of a product to the

consumer for free, or at a nominal cost. It is based on the concept

that the product sales itself. Kotler (1980), identified this, and

recommends that sampling is very useful in getting product trial,

especial new products. Marketers also hope that sample usage will

lead to future purchase of the item. Baker (1979), asserts that, of all

the promotions, sampling method offers the greatest chance of

getting consumers to actually try the product. Nkem (1999) states that

product is a frequently purchased convenience good such as

candles, toothpaste, biscuits, soft drinks, malt drinks, bear,

beverages, soaps, pomade, shampoo, hair relaxer, cream etc.

Kinnear and Bernhardt (1983), also noted that sampling seems

inappropriate for perishable items, very personal care products, or

items with slow turnover.

liii

(iv) Demonstration

Nkem (1999) states that demonstration is a technique often

employed by manufacturing and equipment or machinery trading

firms and even some service firms employ demonstration

technique(s) in the sale of their product(s).

The firms involved will have to employ demonstrators who will

teach consumers/users how to operate the product involved.

Manufacturers of seasoning product, e.g. magi cubes, Ajino-motto,

etc. employ this technique. Once in every year (yearly event) magi

cube manufacturers will organize a nation-wide cooking competition,

demonstrating to consumers/users on how to cook with magi cubes.

They also give cooking lessons as well to consumer/users. All these

efforts are geared towards stimulating sales.

(v) Consumer Deals or Price Incentives

A consumer deal is a short-term temporary reduction or

discount in the price of a product or service.

According to Kotler (1980), price incentives or deals is covering

prices in the short-run to encourage new product trial or more

consumption of an established brand, and is done through coupons.

liv

Schewe and Smith (1980), in their own contribution, noted that a

coupon is a certificate that consumers can bring to a retail store,

receiving in return some indicated saving or cash refund. They also

observed that coupons work best with a target market consisting of

older, married, well-educated, high income and women consumers.

(vi) Point-Of-Purchase Promotion or Point of Sale Promotion

(POP)

Point-of-Purchase displays are those promotional methods

used at the retail level and are very effective at gaining consumers

attention. Kotler (1980), identified this and classified point-of-

purchase displays as displays, signs, racks lights and other attention

getting devices located at the actual place of purchase at the check

out counter or the cash register, to support the sale of a brand. Also

Nkem (1999) noted that sales promotional displays such as floor

display, stands, bins, end-of-counter displays, interior over head

signs, outside signs, posters, mobiles and wall signs, are often the

most important promotional material at the point-of-purchase.

Further literature reviewed proved that point of purchase

displays has become more important with the increasing importance

of self-services. Schewe and Smith 1980, recognized this fact, and

lv

noted that the importance of displays are being magnified by the

increase in self-service and by discount retailing, in which personal

service is not provided.

(3) Developing the Sales Promotions Programmes

After selecting the sales promotion tool(s), the next step will be

to develop the sales promotion programme.

Kotler (1980) observed and advised marketers to make some

additional decisions to define the full promotion programme. In line

with this, the researcher made the following recommendations.

Marketers must decide on how to advertise the sales promotion, how

long it should last, when it should start and how much to budget.

(4) Presenting the Programme

After selecting appropriate sales promotions tools and

developing the programmes, managers go along presenting the

programme. Reviewed related literature showed that fewer

companies test or pretest their sales promotion programme. Kotler

(1980) identified this, and noted that about 42 percent of premium

offers used by different companies were never tested. In line with

this, Kotler advised that companies should try as much as possible to

lvi

pretest sales promotions tools, as this will help determine if the tool(s)

is appropriate.

(5) Implementing the sales promotion Programme

Review of related literature proved that establishment of the

implementation plan(s) for sales promotions programme is crucial.

Kotler (1980), identified this and recommends that companies should

establish plans for each promotion which most be over a time. Lead

time according to Kotler, is the time necessary to prepare the

programme prior to launching it. While self-off time begins with the

launching and when the deal closes.

(6) Evaluating the sales promotion results/effectiveness

According to some marketing and management authors,

evaluation of the sales promotion result is a crucial requirement. But

most of the companies in the country (Nigeria) neglect. This, Kotler

(1980) noted this fact and stated that evaluation of sales promotion

programmes received little or not attention by companies. He

observed that even where an attempt is made to evaluate a

programme, it becomes a superficial one. This suggests that

companies should as much as possible try to continually evaluate

lvii

their promotions results, which is hopeful in determining sales

effectiveness.

But with the clearly increased popularity of sales promotion in

Nigeria and the increased budgetary allocation, it has been getting in

recent years, the critical question, about its effectiveness is also

increasingly being asked by managers, analysts, businessmen and

even the general public and number of studies insights. For instance

cotton and Balds (1978) measured the responses of consumers to

coupons, multiple item discounts and free gifts to determine the

extent to which consumption of various dairy products is influenced

by sales promotion campaign that made these offers. This study

revealed that during the effective period of the campaign, there was a

“substantial” increase in purchase, that the carry over effect in later

period (post-promotion period) was relatively much lower; and that as

in several past studies; new market entrants had a greater impact on

overall sales increase than did households already in the market.

However, the study also showed that the post promotion period effect

of the sales promotion efforts was the same for both the new entrant

and the existing customers or consumers. In a similar vein Dwyer and

Rudelius (1978) examined the use of direct premiums by banks as a

lviii

sales promotion strategy aimed at attracting new customers. Their

study did not only demonstrate the effectiveness of this sales

promotion effort but reported in addition, that even though new time

deposits opened by new customers during the premium campaign

period showed significantly lower retention rates, and there was no

premium offered accounts, when evaluated in terms of changes in six

months balances.

Kahn and Raju (1991) in their own study of the effectiveness of

sales promotions focused specifically on the use of the strategy of

price discounts and its effort on variety-seeking and reinforcement

consumers. They reported that long term effect of price discounts on

market share varies, depending on the type of consumers and on

whether the product or brand promoted is a major or minor brand.

According to Raju and Rahn, for a minor brand, price discounts have

relatively larger effect for the reinforcement consumers than for the

variety – seeking consumer. Conversely they noted, for a major

brand, price discounts have relatively larger effect for the variety-

seeking consumer than for the reinforcement consumers. Also, the

different in effects among both types of consumers studied, is

stronger for the minor brand.

lix

These studies reviewed above have no doubt gone a long way

to answer most of the crucial sales promotion effectiveness questions

we raised earlier in this work. Most essentially they have

demonstrated to large extent that sales promotion is an effective and

reliable marketing success. No wonder then manufacturers and

marketers the world over, including Nigeria, continue to spend heavily

on sales promotions. This trend is likely to continue for a long time.

One other point that must be noted is that we should know at

what point(s), in the product-life-cycle of any good or service we are

marketing, sales promotion is most likely to be effective. Researchers

on the question seem to agree that sales promotion is must effective

at the introductory stage of a product’s life cycle and can also be

used to halt the decline of a product and maintain its sales peak or

even push it higher by encouraging new consumers to try it.

Christopher and Cowell (1970).

From the above pieces of evidence, we can state that in Nigeria

and elsewhere the huge sum or money we spend on sales promotion

campaigns seem to be quite justified or justifiable. But that is as far

as profit maximization or the achievement of the selling objectives is

concerned. Modern marketing, however, goes beyond the profit

lx

maximization or mere selling motives. The new marketing concept

and the social or corporate responsibility theory of modern business

require that in addition to profit considerations, business

organizations have to give adequate consideration to the protection of

social or consumer interests or goals, Kotler (1980, and 1972).

2.9 Ethical Considerations

The ethical dimensions of sales promotion campaigns in

Nigeria can be examined from two silent perspectives – the consumer

perspective and the manufacturers or seller’s perspective. In the

Nigerian context, it is clear from these two perspectives that all is not

well with the ethical considerations or dimensions of sales promotion

campaigns. We say this because, from the facts available, the

euphoric and “loving” relationship between sales promotions and

consumers in Nigeria has been replaced by a love hate relationship.

The trust and confidence the consumers had for the companies that

use sales promotions as a marketing tool have been replaced by

cynicism, mistrust and suspicion. What we have now, therefore, is

more or less a situation in which Nigeria consumers are increasingly

coming up with many criticisms, accusations or attacks against sales

lxi

promotions campaigners and consequent defense by these

companies Nwosu (2001).

Among the documented accusations against sales promotion in

Nigeria by consumers is that companies who use them to boost or

play on the gullibility of Nigerians, especially children and the larger

percentage of the Nigerian population that are still uncritical,

undiciphering, or functionally illiterate. Sales promotion campaigns

have also been accused of being less than true and generally unfair

Okumuyide (1980). Companies that engage in sales promotions have

further been accused of not honouring faithfully all the offers they

made in their sales promotion campaign efforts Dike (1992).

Marketers or companies that engage in sales in Nigeria promotions

have also been accused of offering much but giving out or redeeming

little Nnona (1993). Some consumers even believe that the winnings

and the winners in most sales promotion campaigns in Nigeria are

fixed in advance or manipulated Nwosu (2001).

These skepticisms, criticisms and abject attacks of sales

promotion campaign efforts in Nigeria seem to have been lent

credence by some actual reported or alleges cases of fraudulent

activities among some companies that use sales promotions in the

lxii

country as part of their marketing efforts. One of such cases is the

alleged case of fraud leveled against the 7up express promotion

campaign which was really scandalous. The 7up Bottling Company

was alleged to have failed to give away some of the 13 Jetta

executives cars set offered as star prizes to the consumers during its

campaign. Some Nigerian newspapers in reporting this scandalous

allegation of fraud even supported their reports with the point that the

Nigeria Stock Exchange on account of this suspected fraud queried

the company and even threatened to black list it or penalize it in other

ways. The scandal or alleged fraud forced the 7up Bottling Company

to put up an advertisement in an attempt to clear itself. The

advertisement carried the names and address of winners, as well as

the registration and chassis numbers of the cars won by them.

National Concord, (1992).

A further indication that some sales promotion campaigns in

Nigeria have not been quite ethical is the on-going practice or trend in

which the companies involved now have in-built defensive actions

and policies in their campaigns that will help to portray them as

ethical. While this may be seen just as a response to the barrage of

attacks they have been facing with respect to their sales promotion

lxiii

efforts, an African adage says there can be no smoke without fire.

Defensive marketing like defensive driving is after all embarked upon

to avoid existing potholes or dangers that may lead to disaster or

failure. Nwosu (2001).

Binitie (1992) states that the defensive activities and policies

adopted by companies that use sales promotion in Nigeria include

using top government officials, traditional rulers and other celebrities

to select winners and award prizes as a way of gaining consumers

trust and building credibility. Some of these companies have also

gone further to debar their staff and relations from participating in sale

promotion competitions for prizes. In sales promotion competitions for

prizes. In addition, the companies are devising and adopting relatively

cheat-proof techniques or strategies to combat the attacks of wanton

cheating in their sales promotion campaigns. They are also

increasingly using the mass media as further proof of their sincerity

and ethical procedures. Frank Olize’s “Newshine” on the Nigerian

Television Authority (NTA) has for instance, been used to televise the

7up prize draws and the winners. Names of winners have also been

published in some national dailies as further proof that the offered or

promised prizes were actually given out.

lxiv

While the above measure may help to increase the ethical tone

of sale promotion efforts in Nigeria, it seems necessary that further

measures be taken to protect consumers in Nigeria from unethical

practices in sales promotion. Nwosu (2001) states some of these

measures which could come in form of effective consumer protection

legislations, sales promotion codes of ethics and consumer protection

associations. He also noted that some of these measures have

already been instituted in many developed countries. For example,

Germany promulgated its free gift decree as far back as 1932 to

check sales promotion excesses and unethical practices in that

country; France and Netherlands instituted similar legislations in 1951

and 1955 respectively. Other EEC countries like Belgium, Denmark,

Ireland and Italy also have legislations that are aimed at ensuring

discipline and control in sales promotion campaigns.

With regard to codes of ethics, while the adoption of a sales

promotion code of ethics should be the ultimate goal in Nigeria,

attempts should be made in the interim to ensure that all companies

that use sales promotion as part of their marketing efforts in Nigeria,

subscribe to and observe the tenets of the international code or sales

promotion practice adopted in 1973 at Rio de Janeiro by the

lxv

international chamber of commerce. Nwosu (2001). This code or

ethics among other things prescribed that the low knowledge or

experience of the consumers (especially children) should not be

exploited by sales promoters, that sales promotion campaign should

not exploit the natural credulity of children or young people and

should not harm them mentally, morally and physically. Piper (1980).

lxvi

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter explains in details the step by step procedure

employed in carrying out this study, which include method(s) of data

collection, sampling procedure, as well as their analysis.

It is hoped that through the description of steps being taken. It

would help the researcher to understand and synthesize the result as

contained in the next chapter (chapter four).

The linking effect provided by this chapter has earned it one of

the most vital chapters in this study. This is because, the method

used in the process of any study lend credibility and validity to such

work. This is the same as saying that the method gives the study

scientific authority.

The method of data collection must be given proper attention

because of its importance.

3.2 RESEARCH METHOD

The researcher will use survey research method for the

execution of this study, as defined by Black and Champion (1976).

lxvii

“Survey is the specification of procedures for gathering information

about a large number of people, by collecting information from few of

them.

However, for the purpose of the study, the researcher will use

questionnaires which have been found to be more effective than any

other known formats because of its high rate of response.

The good attributes of questionnaires interview will help the

researcher to obtain valid data for this study from across the sectors

of the intended population of study.

The questions are designed to be answered in a manner that is

not biased. Researchers are always advised not to expose the

intentions of the study to the sampled population so that respondents

do not deliberately frustrate the result.

3.3 RESEARCH DESIGN

The population of study in this research includes both

companies and residents in Abuja, Enugu, Lagos and Port Harcourt

who uses and or exposed to sales promotion campaigns.

This study shall not be restricted to any person in respect of

educational qualification. This is in realization of the fact that sales

lxviii

promotion cuts across all people who provide a vital model necessary

for critical appraisal of sales promotion in Nigeria.

In respect of the above view, the researcher will closely

examine the following variables as indicated below.

Table 1: Possible Demographic Variables and Attributes in

Measuring Instrument.

Variables Levels

Age 17 years and above

Sex Male, Female

Occupation Student, Applicant, Farming,

Trading, Civil Servant, Professional.

3.4 POPULATION AND SAMPLE

The general of inhabitants of Abuja, Enugu, Lagos and Port

Harcourt metropolis, irrespective of age, gender, social economic

status, education, constitute the population of the study. The reasons

for studying these areas are as follows:

(1) The towns are thickly populated

(2) Proximity in relation to the researcher i.e. he deems it

appropriate to choose areas which he is familiar with.

lxix

(3) Lack of time and resources to go beyond the designated areas

and finally.

(4) The appropriateness of the population in respect of the study

being carried out.

However, the researcher deems it worthwhile to select a

manageable representative sample in the total population since it is

not possible to observe all the elements in the sample frame. Again,

the inadequacy of time frame in which the study must be carried out

justify the selection of sample size.

The following states in Nigeria, were arbitrary selected they

include Abuja, Enugu, Lagos and Rivers States.

Also a total of 500 respondents will be observed in the states

enlisted with each state yielding a maximum of 125 respondents.

The researcher again adopted convenient random sampling in

deciding the observational unit. They will ensure accurate

assessment of the characteristics of the whole understudy since any

company/person irrespective of size, background are qualified to be

enlisted into the sample size.

lxx

3.5 MEASURING INSTRUMENT

The researcher will use well structured questionnaire as test

instrument for the study. The choice of this is informed by its

advantage over other methods of measuring instruments and its

relevance to the nature of our study.

3.6 NATURE OF QUESTIONNAIRE

The constructed test instrument will comprise two sections:

The first part shall concentrate on questions relating to the

subject matter of inquiry.

The second section will be the classification section, which will

require respondent’s curricula vitae as sex, age, income and

occupation.

The study will elaborately use close ended questions with few-

open ended questions. This is necessitated by the fact that close

ended questions are less expensive, reduce ambiguity, less tedious

to process the data collected and above all, channel the minds of the

respondents towards the direction of the study.

For the purpose of reliability and validity of the study, the

researcher will pain-stakingly structure the questionnaire in such a

lxxi

manner that they will tackle the researcher problem and hypothesis of

study effectively.

Finally, it will be accompanied by an introductory letter broadly

explaining the purpose of the study.

3.7 DATA COLLECTION

Questionnaire which is the chief measuring instrument for this

study will be administered to the respondents personally by the

researcher.

A total of 500 questionnaires will be distributed and analyzed

and return by respondents, the respondents are expected to

complete and return the questionnaire few days after distribution.

Data collection will be coded in the coding sheets to enhance

data analysis. Percentage of judgments will be used to ascertain in

the inter-coder reliability of the coded response after which, the

coding will be harmonized. A copy of the questionnaire will be

attached to this text as an appendix.

lxxii

3.8 METHOD OF DATA COLLECTION

The data used for this study were from two major sources.

Primary and secondary sources. The primary sources of information

were from businessmen, civil servants, managers/company staff,

students, farmers etc.

The primary sources of data were supplemented with

secondary sources of data which are Journals, magazines,

newspapers, periodicals and unpublished materials.

3.9 METHOD OF DATA ANALYSIS

Analysis of the data will be done sequentially according to the

research questions and hypothesis. This will be done using simple

percentage to draw conclusions on research questions. Chi-square

techniques will be employed in testing the hypothesis.

In this connection, therefore, simple percentage will be used to

determine the extent to which one variable effects others.

Equally the chi-square will be used to test the statistical

significance of the results obtained. The outcome will enable us reject

or accept any particular hypothesis.

lxxiii

3.10 EXPECTED RESULTS

The researcher expected that the results will reveal the nature

and practice of sales promotion in Nigeria.

Results are equally expected on educational levels, and level of

influence of sales promotion activities on consumers.

3.11 SUMMARY

Chapter three has dealt with a very important aspect of this

study, stating the methodology of the research. There are four

research questions and hypothesis that will be answered and tested.

Principal areas were selected from major and thickly populated states

in the country; they include Abuja, Enugu, Lagos and Port Harcourt. A

copy of the test instrument to be used is attached to the text (SS

Appendix 1).

lxxiv

CHAPTER FOUR

4.0 DATA ANALYSIS AND RESULTS

In this section, the researcher analyses and interprets the data

collected from the sample population. A total of five Hundred (500)

questionnaires were carefully produced, each wit 28 carefully,

selected questions which were randomly distributed by the

researcher in four chosen states, namely Abuja, Enugu, Lagos and

Port Harcourt. Of this 500,465 questionnaires were duly completed

and returned. This showed a response rate of 93%.

The situation in the field was such that the researcher who

personally administered the test instruments, with respondents that

could not read. This is because the research covered all strata of the

population. Besides, the researcher had to contend with

disappointment out right shun from some respondents, and with the

rigors and risk of shutting to and fro of these states. All the same, it

was quite an interesting experience.

lxxv

4.1 RESULT OF FINDINGS

The analysis and interpretation of the results of respondents

answers begin with demographic characteristics of respondents,

some of the respondents are students, business workers, companies’

executives/workers and civil servants.

TABLE 1

AGE AND SEX OF RESPONDENTS

STATE AGE SEX

11 - 16 17 -30 31 -45 46 &Above Male Female

Abuja 16 30 39 33 67 51

Enugu 11 31 48 30 72 48

Lagos 10 40 36 31 65 52

P -H 13 28 30 39 49 61

Total 50 129 153 133 253 212

From table 1 above, it can be seen that respondent between the ages

of 11 – 16 were 50 (10.75%), 129 or (27.74%) were between 17-30,

153 or 32.90% were between 31-45, 133 or 28. 39% were 46 and

above. The table also shows that 253 or 54.42% of the respondents

were male while 212 or 45. 59% were female.

lxxvi

TABLE 11

EDUCATION QUALIFICATION OF RESPONDENTS

Educational

qualification

Tertiary

Education

Secondary

Education

primary

Education

No Formal

Education

Total

No of

Respondent

272 98 70 25 465

Percentage of

Respondents

58.49 21.08 15.05 5.38 100

Similarly, the research findings ascertained the level of

education of respondents; this could be seen on table 11 above, it

shows that many of them had completed tertiary education, which is

about 272 or 58.49% of the respondents. However, 98 or 21.08%

had completed secondary education, 70 or 15.05% had their primary

education, while 25 or 5.38% did not go to school at all.

In addition, this study is interested in determining the income

level of the respondents. This is shown in table 111 below.

lxxvii

TABLE 111: INCOME LEVEL OF REPONDENTS

N N N N

Income level 5000-

10,000

11,000-

20,000

21,000-

40,000

41,000 &

above

Can’t

say

No of

Respondents

percentage of

Respondents

30

6.45

96

20.65

278

59.78

50

10.75

11

2.37

30 or 6.45 of the respondents indicated income levels per

annum ranging from N5,00-N10,000,96 or 20.65% respondents had

N 1,000 to N20,000, 278 or 59. 78% respondents had N21,000 to

N40,000, 50 or 10.75% of respondents had income of 41,000 and

above, and 11 or 2.37% respondents could not indicate any income

level.

Besides, the study considers the age of these organizations.

lxxviii

Table iv

Company’s Age

Company’s Age 1month -1

year

2years- 4

years

5years -9

years

10years &

above

Can’t

say

No of

respondents

percentage of

Respondents

7

1.51

10

2.15

90

19.35

313

67.31

45

9.68

Table IV show that 7 or 1.51% of the respondents indicated that their

companies/ organization are between 1 month to 1 years. 10 or

2.15% between 2 years to 4years, 90 or 19.35% between 5 years to

9 years, 313 or 67.41% between 10 years and above, 45 or 9.68%

respondents cannot say.

On question of awareness of sales promotions activities carried

on various brand of goods, a total of 465 or 100% agreed that they

are aware of various sales promotion activities carried out on various

brand of goods.

lxxix

Table V

Genuineness of sales promotion

Response yes No No Response

No of

respondents

242

63

157

Percentage of

respondents

52.69

13.55

33.76

On the issue regarding the genuineness of sales promotion,

table V above shows, that more respondents agreed, that sales

promotion is genuine, that’s 245 or 52.69%, 63 or 13.55% indicated

no, while 157 or 33.76% cannot say if its genuine or not.

4.2 DISTRIBUTION TABLES OF KEY RESPONSES FROM

RESPONDENTS

Tabular presentation has been used to aid understanding of the

data analysis and interpretation.

lxxx

TABLE VI

DISTRIBUTION OF RESPONSES ON INCREASE IN SALES AS A

RESULT OF SALES PROMOTION

RESPONSE YES NO CAN’T SAY

No of

respondents

426

10

29

Percentage of

respondents

91.61

2.15

6.24

The result shows that more respondents agreed that sales

promotion increases sales, that’s 426 or 91.61% of the respondents,

10 or 2.15% indicated no, while 29 or 6.24 of respondents could not

say if sales promotion increase sales.

TABLE VII: DISTRIBUTION OF RESPONSES ON TYPE (S) OF

SALES PROMOTION TECHNIQES MOSTLY USED BY

ORGANIZATIONS IN NIGERIA

Response Sampling Premium Contests Demon

striation

Consumer

Deal

Point of

purchas

e

Total

No of

respondents

53

101

164

36

70

41

465

Percentage

of

respondents

11.40

21.72

35.27

7.74

15.05

8.82

100

lxxxi

Table vii shows that more respondents favours contest that is 164 or

35.27% of the respondents, followed by premium with 101 or 21.72%

of the respondents, consumer deal 70 or 15.05% of the respondents,

sampling 53 or 11.40% of the respondents, 41 or 8.82% indicated

point of purchase and 36 or 7.74% of the respondents indicated

demonstration.

This investigation therefore shows that contests are mostly

used by organizations in Nigeria, followed by premium.

TABLE VIII

APPRAISAL OF PARTICIPATION IN SALES PROMOTION

ACTIVITIES

Response Regularly Occasionally Seldom Zero Row Total of

respondents

Once a year 175 87 20 14 296

% (38) (19.) (4.) (3.) (64.)

Once every 2

years

68

60

16

10

154

% (15.) (13.) (3.) (2.) (33.)

Once in 5 year 2 6 4 3 15

% (0.4) (1.3) (0.9) (0.6) (3.2)

Have not used - - - - -

Column Total 245 153 40 27 465

lxxxii

Table ix above presents the distribution of respondents in the

participation of sales promotion activities. A good number of

respondents report regular use of sales promotion once a year, that’s

175 or 38%, occasionally 87 or 19%, 20 or 4% indicated seldom,

while 14 or 3% indicated zero, making it a total of 296 or 64%

respondents, on once every two years 68 or 15% of the respondents

indicated regular, 60 or 13 percent occasionally, 16 or 3% seldom,

while 10 or 2 respondents indicated 0, making a total of 154 or 33%

respondents. On once every 5 years, 2 or 0.4% of the respondents

indicated regular, 6 or 1.3% indicated occasionally, 4 or 0.9% seldom

and 3 or 0.6% respondents indicated zero, given a total of 15 or 3.2%

respondents. None of the respondents indicated that they have not

used it before.

lxxxiii

TABLE IX:

DISTRIBUTION OF RESPONSES ON FACTORS THAT

CONTRIBUTES TO INCREASE IN SALES PROMOTION

ADOPTION IN NIGERIA.

Response Regularly occasionally seldom Zero Row Total of

respondents

When there is set

back in business

activity

105

89

4

0

198

% 22.58 19.14 0.86 - 42.58

Introduction of a new

product

97

8 0 0 105

% 20.86 1.72 - - 22.58

Creating awareness

of an improved old

product

100

25

5

0

130

% 21.51 5.38 1.08 - 27.96

To beat competitors

1

20

10

1

32

% 0.22 4.30 2.15 0.22 6.88

Column Total 303 142 19 1 465

% 65.16 30.54 4.09 0.22 100

lxxxiv

A total of 465 respondents only completed the items under

review. A good number of respondents indicated ‘’when there is set

back in business activity’’ as the reason why they engage in sales

promotion that’s a total of 198 or 42.58% of the respondents. A total

of 105 or 22.58% of the respondents indicated introduction of a new

product, a total of 130 or 27.96% indicated creating awareness of

improved old products, while a total of 32 or 6.88% of the

respondents reported to beat comparators.

TABLE X:

DISTRIBUTION OF RESPONSES ON THE ACCEPTABILITY OF

SALES PROMOTION AS A MARKETING STRATAGY

Response Regularly Occasionally Seldom Zero Row Total of Respondents.

YES 220 65 35 - 321

% 47.31 13.98 7.74 0 69.03

No - 100 20 0 120

% 0 21.15 4.30 0 25.81

Cant’s say 24 0 0 0 24

% 5.16 0 0 0 5.16

Column

Total

244 165 56 0 465

% 52.47 35.48 12.04 0 100

lxxxv

Table xi above shows that the total of 321 or 69.03%

respondents accepts sales promotion as a marketing strategy. A total

or 120 or 25.81% disagreed, while a total of 24 or 5.16% of the

respondents cannot say whether sales promotion could be

acceptable as marketing strategy. That is the acceptability of the

ethics of the exercise.

TABLE XI

RESPONDENTS OPINION ON CODE OF ETHICS CONSIDERATION IN THE PRACTICE OF SALE PROMOTION IN NIGERIA Response Regularly Occasionally Seldom Zero Row Total of

respondents Favourable 91 150 19 0 260

% 19.57 32.26 4.09 - 55.91

Negative 40 49 10 2 101

% 8.62 9.25 2.15 0.43 21.72

Neutral 43 54 6 1 104

% 9.25 11.61 1.29 0.22 22.37

Column

Total

174 253 35 3 465

% 37.42 54.41 7.53 0.65 100

lxxxvi

Table xii above shows that more respondents have favourable

opinion on the code of ethics consideration in the practice of sales

promotion in Nigeria that is a total of 260 or 55.91%. A total of 101 or

21.72% of the respondents have a negative opinion, while a total of

104 or 22.37% have a neural opinion.

TABLE XII: DISTRIBUTION OF RESPONSES ON INCREASE IN

CONSUMERS LONG TERM DEMAND AS A RESULT OF SALES

PROMOTION

Response Regularly Occasionally Seldom Zero Row Total of

respondents

Yes 176 98 4 0 278

% (37.85) (21.08) (0.86) - (59.78)

No 14 82 2 0 98

% (3.01) (17.63) (0.43) - (21.08)

Can’t say 30 40 16 3 89

% (6.45) (8.60) (3.44) (0.65) (19.14)

Column

Total

220

220

22

3

465

lxxxvii

From the above table a total of 278 or 59.78% agreed that

consumer long term demand increase after sales promotion, 176 or

37.85% indicated regularly, 98 or 21.08% indicated occasionally and

4 or 0.86% of the respondents indicated seldom, on the other hand a

total of 98 or 21.08 of the respondents indicated no, i.e. disagree.

While a total of 89 or 19.14% cannot indicate whether sales

promotion increases consumer long term demand or not.

4.3 Hypothesis Testing

STATEMENT OF HYPOTHESIS ONE

Ho: Consumers do not accept the ethics of sales promotion

as a marketing strategy.

Hi: consumers accept the ethics of sales promotion as a

marketing strategy.

Data on table xi is used in testing hypothesis one. From the table a

contingency table of 4x3 was constructed. See table below.

lxxxviii

�

TABLE X: DISTRIBUTION OF RESPONSES ON THE

ACCEPTABILITY OF THE ETHICS OF SALES PROMOTION AS A

MARKETING STRATEGY

Response Regularly Occasionally Seldom Zero Row Total of

respondents

Yes 220 65 36 - 321

% (168.44) (113.90) (38.66) (0)

No - 100 20 - 120

% (62.87) (42.58) (14.45) (0)

Can’t say 24 - - - 24

% (12.59) (8.52) (2.89) (0)

Column

Total

244 165 56 - 465

Degree of freedom = 6

� Critical value (0.05,6) = 12.592

Table value = 12.592

Chi-square = (oi – ei)2 ei Where oi = observed frequencies ei = Expected frequencies See Appendix 11 for ei calculation

lxxxix

TABLE CHI-SQUARE oi ei oi - ei (oi – ei)2 (oi – ei)2/ei

220 169.44 55.56 2658.43 15.78

65 113.90 -48.90 2391.21 20.99

36 38.66 -2.66 7.08 0.18

0 0 0 0 0

0 62.97 -62.97 3965.22 62.97

100 42.58 57.55 3312.00 77.78

20 14.45 5.55 30.30 2.13

0 0 0 0 0

24 12.59 11.41 130.19 10.34

0 8.52 -8.52 72.59 8.52

0 2.89 -2.89 8.35 2.89

0 0 0 0 0

201.58

TESTING RULE: Reject the null hypothesis (Ho) and accept

the alternative hypothesis (Hi). If the calculated chi-square value is

greater than or equal to table value, otherwise do not reject the null

hypothesis (Ho).

Calculated chi – square value = 201.58

xc

Table chi – square value = 12.592

Decision and Conclusion

Since the calculated chi-square value (201.58) is greater is greater

than table value (12.592), we therefore reject the null hypothesis null

accept the research or alternative hypothesis.

We hence conclude that consumers accept the ethics of sales

promotion as marketing strategy.

STATEMENT OF HYPOTHESIS TWO

Ho: Companies who engages in sales promotion do not always

abide by its codes of ethics.

Hi: Companies who engages in sales promotion always abides by

its codes of ethics.

Data on table xii is used in testing hypothesis two. From the table a

contingency table of 4x3 was constructed. See table below.

xci

�

TABLE XI: RESPONDNENT OPINIONS ON CODE OF ETHICS

CONSIDERATION IN THE PRACTICE OF SALES

PROMOTION IN NIGERIA.

Response Regularly Occasionally Seldom Zero Row Total of respondents

Favourable 91 150 19 0 260

% (97.29) (141.46) (19.57) (1.68)

Negative 40 49 10 2 101

% (37.79) (54.59) (7.60) (0.65)

Neutral 43 54 6 1 104

% (38.92) (56.58) (7.83) (0.67)

Column

Total

174

253

35

3

465

Degree of freedom = 6

� Critical value (0.05,6) = 12.592

Table value = 12.592

Chi-square = (oi – ei)2 ei where oi = observed frequency ei = expected frequency

xcii

TABLE CHI – SQUARE oi ei oi - ei (oi – ei)2 (oi – ei)2/ei

91 97.29 -6.29 39.56 0.41

150 141.46 8.54 72.93 0.52

19 19.57 -0.57 0.325 0.02

0 1.68 -1.68 2.82 1.68

40 37.79 2.21 4.88 0.13

49 54.95 -5.95 35.40 0.64

10 7.60 2.40 5.76 0.76

2 0.65 1.35 1.823 2.80

43 38.92 4.08 16.65 0.43

54 56.58 -2.58 6.66 0.12

6 7.83 -1.83 3.35 0.43

1 0.67 0.33 0.11 0.16

Testing Rule: Reject the null hypothesis (Ho) and accept the research

hypothesis (Hi) if the calculated chi-square value is greater than or

equal to table value, otherwise do not reject the null hypothesis (Ho).

Calculated chi-square value = 8.1

Table chi-square value = 12.592

xciii

Decision and Conclusion

Since the table value (12.592) is greater than the calculated

chi-square value (8.1), we therefore reject the alternative hypothesis

and accept the null hypothesis.

We therefore, conclude that companies who engage in sales

promotion do not always abide by its code of ethics.

STATEMENT OF HYPOTHESIS THREE

Ho: Sales promotion does not increase consumer’s long term

demand for products/services

Hi: Sales promotion increase consumer’s long term demand for

products/services.

Data on table xii is used in testing hypothesis four. From the table a

contingency table of 4 x 3 was constructed. See table below.

xciv

�

TABLE XII: DISTRIBUTION OF RESPONSE ON INCREASE IN

CONSUMER LONG TERM DEMAND AS A RESULT OF

SALES PROMOTION

Response Regularly Occasionally Seldom Zero Row Total of

respondents

Yes 176 98 4 0 278

% (131.53) (131.53) (13.15) 1.79

No 14 82 2 0 98

% (46.37) (46.37) (4.64) (0.63)

Can’t say 30 40 16 3 89

% (42.11) (42.11) (4.21) (0.57)

Column

Total

220 220 22 3 465

Degree of freedom = 6

� Critical value (0.05,6) = 12.592

Table value = 12.592

Chi-square = (oi – ei)2 ei Where oi = Observed frequency ei = Expected frequency

xcv

TABLE CHI-SQUARE

oi ei oi - ei (oi – ei)2 (oi – ei)2/ei

176 131.53 44.47 1977.58 15.04

98 131.53 -33.53 1124.26 8.55

4 13.15 -9.15 83.72 6.37

0 1.79 -1.79 3.20 1.79

14 46.37 -32.37 1047.82 22.60

82 46.37 -35.63 1269.50 27.38

2 4.64 -2.64 6.97 1.50

0 0.63 -0.63 0.40 0.63

30 42.11 -12.11 146.65 3.48

40 42.11 -2.11 4.45 0.11

16 4.21 11.79 139.00 33.02

3 0.57 2.43 5.90 10.35

Testing Rule: Reject the null hypothesis (Ho) and accept the research

hypothesis (Hi). If the calculated chi-square value is greater than or

equal to table value, otherwise do not reject the null hypothesis (Ho).

Calculated chi-square value = 130.82

Table chi-square value = 12.592

xcvi

DECISION AND CONCLUSIONS

Since the calculated chi-square value (130.82) is greater than

table value (12.592), we therefore reject the null hypothesis and

accept the research or alternative hypothesis.

We hence conclude that sales promotion increase the demand

of products by consumers.

4.4 DISCUSSION AND FINDINGS

From the analysis of data presented on the acceptability of

sales promotion as a marketing strategy.

This goes to support NWOSU (2001) finding what sales promotion

facilitates the processes of product or service differentiation and

effective positioning in an increasingly competitive market as exists in

Nigerian. A total of 120 or 25.81% refused to accept, while a total of

24 or 5.16% of the respondents cannot say whether or not sales

promotion could be accepted as a marketing strategy from the above

finding it could be seen that consumers accepts sales promotions as

a marketing strategy sales promotion is, of course, a marketing tool

that can be gainfully employed in offensive and defensive marketing

xcvii

or any product or service. NWOSU (2001) equally stated that since

the sales promotion fever started spreading like wild fire in Nigeria in

1991, no month passes now without the consumer being bombarded

with at least one promotional campaign or the other.

The ethical dimensions or sales promotion campaigns in

Nigeria can be examined from two salient perspectives:- the

consumer perspective and the manufactures or sellers perspective. In

the Nigerian context it is clear from these two perspectives that all is

not well with the ethical considerations or dimensions of sales

promotion campaigns. I say this because from the facts available the

euphoric and ‘‘loving’’ relationship between sales promoters and

consumers in Nigeria has been replaced by a love hate relationship.

NWOSU (2001) stated that the trust and confidence the consumers

had for the companies that use sales promotions as a marketing tool

have been replaced by cynicism, mistrust and suspicion. He

continued that what we have now, therefore, is more less a situation

in which Nigerian consumers are increasingly coming up with many

criticisms, accusations or attacks against sales promotions

xcviii

campaigners and consequent defense by these companies, although

table xii shows a total of 260 or 55.91 respondents indicated

favourable opinion on code of ethics consideration in the practice of

sales promotion in Nigerian; total of 101 or 21.72% of the

respondents indicated a Negative opinion, while a total of 104 or

22.37% of the respondents have a negative opinion, while a total of

104 or 22.37% of the respondents have a neutral opinion.

Further more, the research findings have found that sales

promotion increase consumers long term demand. From table xiii

more respondents indicated regular long term demand as a result of

sales promotion activities that is 176 or 37.85% and also 98 or

21.08% of the respondents indicated occasional long term demand, 4

indicated seldom, in all a total of 278 or 59.78 respondents agreed

that sales promotion increases consumers long term demand.

Schewe (1987) agreed that incentive marketing, among other things,

helps to ensure repeat purchasing when well executed, and repeat

purchasing is the key to successful marketing and successful

business NWOSU (2001) equally agreed to this when he stated that

xcix

even though most sales promotion campaigns are aimed at achieving

short-term sales objectives, it must be noted that it can also perform

the function of helping to achieve long-term sales and other

marketing or business objective. This goes to support Bantick 1980

when he stated that sales promotion has for instance, been

increasingly shown to be a long-term image builder, awareness

creator and a veritable communications medium.

Based on the findings or this study it can be inferred that sales

promotion is an effective and reliable marketing tool or promotional

strategy that can be depended upon for marketing successes. No

wonder manufactures and markers the world over, including in

Nigeria, continue to spend heavily on sales promotions.

c

CHAPTER FIVE

5.1 SUMMARY AND RECOMMENDATION

Primarily, this study paid particular attention to the nature and

practice of sales promotion in Nigeria. The study x-rayed the

acceptability of the ethics of sales promotion as a marketing strategy.

The study analyzed the code of ethics consideration in the

practice of sales promotion in Nigeria.

The research had also established empirically that sales

promotion increases long term demand of products/service by

consumers.

Ro realize this, the researcher distributed 125 questionnaires

each to residents of Abuja, Enugu, Lagos and River States.

Consequently, a total of 500 questionnaires were distributed out of

which 465 questionnaires were duly completed and returned, simple

random sampling techniques was used in selecting sampled

population. It was the researchers considered view that this sampling

method offered all elements in the sample frame, equal chances of

being sampled or selected.

ci

In the data analysis, the distribution showed more men than

female respondents, and more of the respondents were within the

age bracket of 31 and 45. More so, many of the respondents have

completed their tertiary and secondary education. Besides, more

industries are now using sales promotion to increase their sales,

thereby making huge profits and consumers have been lured to

increase their purchases.

In effect, the result of this study indicates that the nature and

practice of sales promotion in Nigeria have improved greatly in recent

time.

The result further shows that the use of sales promotion by

industries have increased and it has served as a source of

increasing long term demand of product/service by consumers.

5.2 RECOMMENDATION FOR FURTHER STUDY

It is obvious that this study, due to the systematic way it’s been

handled have made dependable, veritable and interesting revelations.

But it is equally vital to note that the result obtained here cannot be

cii

subsisted for all sales promotion campaign in Nigeria. Therefore, it is

not without limitations, hence we make recommendation here for

future sales promotion researchers.

However, the researcher deems it wise to pin-point few vital

lessons. Sales promotion managers must draw from the result of this

study for an enhance strategy and tactics.

First, the sales promotion managers (users) should have

mastery of scheduling sales promotion campaign. This is necessary

in other to reach the market. Suffice to say that the sales promotion

managers/users should do well to define their target market so that

their consumer’s discretionary should always go for the promoted

products or services. Again the promoter should be reminded in case

‘‘he’’ still wonders, that every firm is jockeying for attention. Therefore,

the main attraction in your product (s) or services should be well

positioned and promoted.

Above all, the promotions should be moderately entertaining

and brief so that an induce audience remained exposed to the

promotion. The seemingly lack of sophistication in the promotion

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campaign not only vitiated the crystallization of viable promotion but

also leads to target market declining and make then see the idea of

the products as trivial

One other point that must be noted is that we should know at

what point (s), in the product- life cycle of any good or service we are

marketing,. Sales promotion is most likely to be effective.

Researchers on the question seen to agree that sales promotion is

most effective at the introductory stage of a product’s life cycle and

can also be used to halt the decline of a product and maintain its

sales peak or even push is higher by encouraging new consumers to

try it (Christopher and Cowell, 19970)

One of the facts we must draw from this research is that sales

promotion is definitely an effective and reliable tool of marketing in

Nigeria. We also state that when properly planned and executed,

sales promotion efforts can always justify whatever amounts of

money invested in them by contributing significantly towards the

achievements of stated marketing or sales objectives which usually

includes profit maximization. Unfortunately from the facts available to

civ

us, sales promotion campaigns in Nigeria have not passed the ethical

test and so cannot be said to be quite ethical. Happily, the fact

uncovered in this research also show that companies that engage in

sales promotion are aware of this unfortunate trend and are already

taking measure to rectify the situation.

The researcher therefore, recommends management should

establish the sales promotion objective (s), select appropriate tool or

techniques (s), develop the programme, pretest the ideas, implement

and control the programme and evaluate the consumer response or

depth or impact.

The government should take additional measures at intra-

professional and consumer levels to further ensure the maintenance

of ethical standards in sales promotion campaigns in Nigeria,

unfortunately from the facts available, sales promotion campaigns in

Nigeria have not passed the ethical test and so can be said to be

quite ethical happily, the engage in sales promotions are aware of

this unfortunate trend and are already taking measures of rectify the

situation. Companies that use it as part or their marketing strategies

cv

must adopt the integrated marketing communications approach. In

the spirit of integrated marketing managers in Nigeria must be guided

by the fact that sales promotion is usually used along with other

traditional marketing tools like personal selling, media advertising, out

door advertising, publicity, public relations and other such

promotools. This will help them not to wrongly calculate the effect of

other marketing or promotional activities and lump all of them into

their sales promotion effectiveness a rather difficult exercise.

cvi

BIBLIOGRAPHY

Bantick, Keth (1980), ‘‘Sales Promotion in the Marketing Mix’’, in Julia

Piperced) Managing Sales Promotion, London: Gower

Publishers Company LTD.

Dike, Isodi (1992), Repeat Buying: Theory and Application, London:

North Holland Publishing Company.

Ehrenberg, H.S.C. (1992), Repeat Buying: Theory and Application,

London: North Holland Publishing Company.

Nkem (1999): ‘‘The Practice of sales promotion.’’

Nwosu I.E. (2001) Marketing Communications Management and

Media (principles, practices, and Strategies) an Integrated

Approach. Dominican Publishers, Lagos.

Onah, J.O., ‘‘Marketing in Nigeria-Experience in A Developing

Economy,’’ Cassel London, (1979).

Piper Julia (ed.) (1980) ‘‘Managing Sales Promotion, London:

Gower Publishing Company Ltd.

Strang, Rogers (1975), ‘‘Sales promotion: Fast Growth, Faulty

Management,’’ Harvard Business Review, July 1 August.

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APPENDIX 1

Department of Marketing Faculty of Bus. Amin. University of Nigeria Enugu-Campus Enugu. March, 2003 PROF/DR.MR.MRS./MISS,

Please enclosed a questionnaire for your completion and return to the

above address.

The questionnaire is in connection with the award of

postgraduate master of Business Administration (MBA) Degree in

marketing, Department of marketing, University of Nigeria, Enugu

Campus (UNEC). Any information supplied here, will be treated with

the utmost confidentiality, please feel free to select any question of

your choice and complete the box provided by ticking ( )

accordingly.

Thanks.

cviii

APPENDIX 11

A QUESTIONNIARE GUIDE DIRECTED TO CONSUMER AND

MANUFACTURES

Please tick good ( ) for any chosen option, or comment as need be.

QUESTIONS

Section A:

(1) Sex: (a) male (b) female

(2) Please indicate your age bracket

(a) 11 – 16

(b) 17 – 30

(c) 31 – 45

(d) 46 and above

(3) Educational qualification

(a) Primary school

(b) Secondary school

(c) Tertiary Education

(d) No formal Education

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(4) Which part of the country (Nigeria) do you live

(a) Abuja

(b) Enugu

(c) Lagos

(d) port-Harcourt

(5) What is your occupation?

(6) What is the name of your organization?

(7) How old is this company?

(a) One Month – 1 year

(b) 2 years – 4 years

(c) 5 years – 9 years

(d) 10 years and above

(8) Indicate the area (s) where your organization is located

(a) Abuja

(b) Enugu

(c) Lagos

(d) Port-Harcourt

(e) All of the above

(9) What is the nature of organization?

(a) Sole Enterprise

(b) Partnership

(c) Private Limited Company

cx

(d) Public Limited Company

(e) Public Corporation

(10) What’s your position in the organization?

(11) Indicate your level of income per-annum?

(a) N5,000 – N10,000

(b) N11,000 – N20,000

(c) N21,000 – N40,000

(d) N41,000 – and above

Section B:

(12) Are you aware of the sales promotions activities carried out on

various brand of goods.

(a) Yes (b) No

(13) Do you think these sales promotions are genuine

(a) Yes b) No (c) Can’t say

(14) Have you ever participated in any sales promotion activities?

(a) Yes (b) No

(15) If ‘‘yes’’ did you increase your purchases within the period.

(a) Yes (b) No (c) Can’t say

(16) How did you make your purchase after the promotion?

(a) Increase than before

(b) Reduces than before

(c) Normal as before

(d) No purchases anymore

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(17) Have you ever won a prize in any sales promotion contest?

(a) Yes (b) No

(18) If ‘‘yes’’, how many times?

(19) Have your organization ever engage in any sales promotion

activity?

(a) Yes (b) No

(20) If ‘‘No’’ why?

(a) It expensive

(b) We have not considered it

(c) We will use it in future

(21) If ‘‘Yes’’ to question 19 was it successful?

(a) Yes (b) No

(22) If ‘‘Yes in the above question, did sales increase.

(a) Yes (b) No (c) Can’t say

(23) What of profit, did it increase?

(a) Yes (b)No (c)Can’t say

(24) How often does your organization engage in sales promotion

activities?

(a) Regularly (i.e. at least once a year)

(b) Occasionally (i.e. at least once every 2 year)

(c) Seldom (i.e. at least once in five years)

(d) Zero (has not used it at all)

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(25) When does your organization normally engage in sales

promotion?

(a) When there is set back in business activity

(b) Introduction of a new product

(c) Creating awareness of an improved old product.

(d) As deem fit.

26. What type (s) of sales promotion techniques is mostly used by

organizations in Nigeria?

(a) Premium (b) Contest (c) Sampling

(d) Demonstration (e) Consumer deal

(f) Point of purchase

27. Do you think the use of sales promotion has increased in recent

time?

(a) Yes (b) No (c) Can’t say

28. What is your opinion on code of ethics consideration in the

practice of sales promotion in Nigeria?

(a) Introductory stage (b) Mature Stage

(c) Decline Stage

29. What are your opinions on code of ethics consideration

in the practice of sales promotion in Nigeria.

(a) Favourable (b) Negative (c) Neutral

30. Do you accept sales promotion as a marketing strategy?

(a) Yes (b) No (c) Can’t say

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APPENDIX III

Hypothesis One:

Degree of freedom = 0.05

Critical Value = (0.05,6) = 12.592

Table value= 12.592

Chi-square = (oi – ei)2

Ei

Where oi = observed frequency

Ei = Expected frequency

ei 1 321 x244 = 168.44

465

ei2 321 x 165 = 113.90

465

ei3 321 x 56 = 38.66

465

ei4 321 x 0 = 0

465

ei12 120 x 244 = 62.97 465 ei22 120 x 165 = 42.58

465

ei23 120 x 56 = 14.45

465

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Ei24 120 x 0 = 0

465

Ei13 24 x 244 = 12.59

465

ei23 24 x 165 = 8.52

465

ei43 24 x 56 = 2.89

465

ei43 24 x 0 = 0

465

Hypothesis Two:

Degree of freedom = 0.05

Critical Value = (0.05,6) = 12.592

Table value = 12.592

Chi- square = (oi – ei)2

ei

where oi = observed frequency

ei = expected frequency

ei1 260 x 174 = 97.29 465 ei2 260 x 253 = 141.46 465

cxv

ei32 260 x 35 = 19.57 465 ei4 260 x 3 = 1.68 465 ei2 101 x174 = 37.79 465 ei22 101 x 253 = 54.95 465 ei32 101 x 35 = 7.60 465 ei42 101 x 3 = 0.65 465 ei13 104 x 174 = 38.92 465 Ei23 104 x 253 = 56.58 465 Ei33 104 x 35 = 7.83 465 Ei43 104 x 3 = 0.67 465 Hypothesis Three:

Degree of freedom = 0.05

Critical value = (0.05,6) = 12.592

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Table value = 12.592

Chi-sqare = (oi – ei)2 Ei Where oi = observed frequency

Ei = expected frequency

ei 278 x 220 = 131.53 465 ei2 278 x 220 = 131.53 465 ei3 278 x 22 = 13.15 465 ei4 278 x 3 = 1.79 465 ei12 98 x 220 = 46.37 465 ei22 98 x 220 = 46.37 465 ei32 98 x 22 = 4.64 465 ei42 98 x 3 = 0.63 465

cxvii

ei13 89 x 220 = 42.11 465 ei23 89 x 22 = 4.21 465 ei33 89 x 22 = 4.21 465 ei43 89 x 3 = 0.57 465