Promotional Tool

CHAPTER ONE
1.0INTRODUCTION
One of the most important and bewildering
promotional tools of modern marketing management is
sales promotion. Sales promotion is bewildering because
of its typically tagged effects and also the difficulty of
isolating its effect from other elements in the marketing
mix.
Moreover, sales promotion as a subject matter could
be referred to as a “catch all” for those short term
marketing activities which act as an incentive to stimulate
quick buyers action such a coupons, sweep take, context,
premium, free samples, trading stamp and the like.
Sales promotion is, however, a sub-section of the
total promotional and communication mix. The term
promotion in its broadest sense means to move forward.
However, in the business field; it is referred to as the
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communication activities of advertising, personal selling,
publicity and sales promotion. The blend of these
promotional activities is referred to as the promotion mix
or tools. The emphasis that is placed on each element in
the promotional mix considering sales promotion varies
according to the product types, product characteristics and
other variable factors including the company’s resource
product within the firms competitive strength and
weakness, managerial style and philosophy.
While the other communication elements with which
promotion must be coordinated are the product itself,
price of the product and the choice of distribution channel.
The components of the product communication include the
brand name, product design, package colour, product size
and shape, trademark, label, task, and so on. These
product physical features provide the consumers with
subtle messages about the total product offering, the fact

remains that the physical product itself can communicate
a great deal of information to the prospective buyer.
Without some sense of functional relationship
between sales and promotional expenditure, it becomes
very difficult to know how much to spend on sales
promotion due to the fact that the potential value is being
testified to by Nigerian companies which engages in it.
Companies in this circumstance tend to resort to simple
rules for setting the sales promotion budget that may work
satisfactorily in practice but are not likely to represent an
optional level. In the case of MTN Nigeria sales
promotional activities are being carried out at least twice a
year, one in the beginning of the year and the other during
festive periods.
Furthermore, sales promotion expenditures are
growing rapidly in other nations, both socialist and
capitalist economy of the world. Although marketers often
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tend to disagree about the relative value of the various
marketing functions and activities, those who are
knowledgeable recognizes the significance of sales
promotion in today’s business world and environment.
How can a new product conceivably achieve success
without the process of sales promotion? What method(s)
could possibly compare with the enormous impact made
through the sales promotional media on a product or
service? It is unlikely that without the power of sales
promotion a new product could reach its potential market
that their interest be drawn to the good offering provided
and developed and that how in the world of business
activities and competition could an old product continue to
prove successful in terms of increased sales without sales
promotion in highly competitive environment.
Statistics revealed that over 62.3% of the products
that are promoted via sale promotional strategy

succeeded.
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1.1 BACKGROUND TO THE STUDY
Sales promotion consists of a diverse collection of
incentive tools mostly short term, designed to stimulate
quicker or greater purchase of particular products or
services by consumers or the trade.
Every promotional or communication mix has its own
impact on product performance which are obviously in the
tools. In the case of sales promotion research and
statistics relating to the intrinsic attributes of a particular
product, which is not necessary in line with its specification
conducted has been encouraging. More so, statistics
reveal that products that are promoted through the sales
stimulating device of sales promotion have a high
tendency of succeeding. To encourage the plight, products
have been used for a particular sales promotion on more
than two occasions with great progress.
The sales executives and managers in MTN Nigeria

Communication Limited have subscribed their best in
terms of feasibility study, marketing research, and
recruitment of competent sales personnel to man the
uncreative sales job.
Moreover, the sales force has shown adequate
seriousness of purpose, some sees the fieldwork as a
means of achieving a meaningful sales target.
The core tools of promotion among others are
referred to as the communication activities of marketing
which are:-
a) Advertising
b) Personal Selling
c) Publicity (Public Relation)
(a) ADVERTISING:
This is defined as any paid form of non-personal
presentation made by an identified sponsor through a
mass communication medium on behalf of goods, services
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or ideas. It could also be a form of creating awareness of
an existing, or a newly launched product in the market for
both the potential and current buyers to know exactly
where they can get the product, when to get it, and how to
buy it, and also the price at which the product will be
bought at a given period of time.
Considering the product quality, package, and the
brand which the product is made-up of through the
following advertising media, such as: Television, Radio,
Newspaper, Journals e.t.c. all these media are functioning
as a means of persuading both the new and potential
consumers to take a particular course of action, or to
reach a point of view with the aim of stimulating sales.
(b) PERSONAL SELLING:
This is a form of person-to-person communication in
which a seller attempts to assist and/or persuade
prospective buyers to purchase the company’s product or

service or to act on an idea. Personal selling is also a
process of making an oral commercial representation
during a buyer/seller interview situation. It is some times
known as the buyer/seller interface. In general personal
selling facilitates an immediate response.
(c) PUBLICITY/ PUBLIC RELATION
Publicity refers to a non-personal communications
regarding an organization, product, service, or idea not
directly paid for or run under identified sponsorship. It is
also the process of serving public attention for messages
to be imparted unlike, advertising which is a form of non-
personal communication to a large group of people, paid
for by an identified sponsor. Publicity is always and usually
in the form of news or editorial comment about a
company’s product or services.
Public relations on the other hand refer to when an
organization systematically plans and distributes
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information in an attempt to control and manage its image
and the nature of the publicity it receives.
Public relation is, however, defined as “the
management function which evaluates public attitudes
identifies the policies and procedures of an individual or
organization with the public interest and executes a
programme of action to earn public understanding and
acceptance.
In a nutshell, the effectiveness and efficiency of a
particular sales promotional tool used is vested in the
coordinated activities of advertising by spreading the
messages across to the prospective buyers, both by
personal selling, publicity/public relation are widely used to
convey useful news about the product. Publicity activities
may therefore be carried out by the company’s marketing
personnel, or public relation officer, by advertising
agencies or by public relation consultants.

1.2 STATEMENT OF THE RESEARCH PROBLEM;
Basically, in a social science research, there is a
problem that work tends to find solution to. Some of the
discussions in the company among the top management is
centered on how to improve the performance of their
products, that is, how to stimulate the sales of their
company’s product.
In this study, however, the statement of the research
problem has been logically formulated from the central
theme which is sales promotion. Promotional mix is
generally believed to be the blood of the business and it
can not be done away with especially sales promotion
which also wins customers from the company’s
competitors and get their repeated purchase.
But some companies and organizations are still
lacking behind in this marketing effort. The companies that
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are unaware of how vital and important sales promotional
tools are needs to be informed to enhance their stipulated
objectives of profit maximization through increase in sales
volume which will invariably increase the company’s
market share.
Moreover, some companies that are already making
use of this tool can not under estimate the boost it gives to
their sales volume despite the fact that they are also
embarking on other promotional tools such as advertising,
personal selling etc.
It is in the light of this, that the following are stated
as the research questions which would be analyzed in the
research work itself.
1) Would sales promotion boost company’s profit at all?
2) Would sales promotion boost company’s sales
volume at all?
3) Would sale promotion affect or influence customers’

behaviour or buying decision?
4) Whether sales promotion is a suitable media for
promoting the products offered for sales?
5) Whether the medium of sales promotion selection
can achieve the desired result?
1.3 PURPOSE AND OBJECTIVE OF THE STUDY
First and foremost, sales promotion can be defined as
those activities or devices that are designed to create
activities (such as those used in sample display,
demonstrations, fashions, shows, coupons, premium and
special sales) that not only supplement advertising and
personal selling but also co-ordinate and make them
effective which therefore boost company’s sales volume
and thereby cause an increase in profit
Having conceptualized the meaning of sales
promotion in the attainment of company’s sale volume.
The research objectives shall include finding out.
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1) The relationship that exist between sales promotion
and sales volume.
2) The suitability of the sales promotion media adopted
with the nature of the product in question.
3) The extent to which sales promotion can affect and
influence consumers’ behaviour and buying decision.
4) The effect of sales promotion on company’s image.
1.4 JUSTIFICATION FOR THE STUDY
Many company’s marketing managers had been
struggling thoroughly to increase the sale of their
company’s products, market share and profit and they
have had little or no achievement on this goal of theirs
which may invariably drive them out of the market place
or even cost them their jobs if the company’s products
eventually dies.
So therefore, in the light of this, carrying out this
study and research work will be of immense benefit to

such companies and their marketing force. Moreover, it
will be of great assistance and help to companies which
have experienced endless problems in the declining state
of their products performances in the product lifecycle.
It will also be useful to future researchers as a
reference on the basis of research work.
More so, this study will be of great advantage of the
management of MTN Nigeria Communication Limited and
other telecommunication companies in designing their
framework of promotional activities (i.e. sales promotion)
in order to gain a higher and relative market share, to
increase profitability, even though it is difficult
to quantify precisely to what extent one can increase
demand to the point where economies of scale can be
achieved. This theme is of immense importance to all
marketers and sales managers who desire an increase in
their sales volume, market share and profit.
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Furthermore, this study will bring into focus the effect
sales promotion will have on consumers buying behaviour
and its influence on business activities in MTN Nigeria
Communication Limited, Companies, enterprises,
organizations and researchers who are interested in seeing
a boost in their sales volume and an outstanding increase
in their market share and profit will find this research work
useful.
1.5 SCOPE OF THE STUDY
This research work examined sales promotion to be a
marketing tool and marketing strategy to boost company’s
sales volume. So therefore the research work only covers
the period between 2001-2008 of the sales promotional
activities of MTN Nigeria and only one of the promotions
that has been carried out within the time frame was
considered and analyzed.
This study covers the headquarters of MTN Nigeria

Communication Limited situated in Lagos State and one of
the branches located along Muritala Muhammed way Ilorin,
Kwara State.
At the end of the research work we actually would
have seen sales promotion to be a booster of sales, market
share and company’s profit.
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CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
Literature review refers to that exercise of going
through existing publications on a particular topic. The
exercise is necessary in any research because of the
advantages the researcher stands to benefit from such.
One of the main advantages is that it helps to widen the
knowledge of the researcher and the readers alike on the
topic or subject at hand and they will have a better
understanding of the topic.
The various research frontiers in the field are also
known and the researcher is thus adequately guided and
does not just embark on a wide goose chase.

2.1 THE CONCEPT OF SALES PROMOTION
The term promotion originated or emanated form the
Latin word “promovese”, which means to move forward, to
advice and to expand.
From the business view point, promotion can be
defined as any marketing or communication activity that
attempts to persuade, inform and remind an individual to
re-sell, accept or use a particular product brand or idea for
either personal or institutional purpose(s). More so,
promotion as a communication tool is the process of
transmitting or disseminating information through a
message channel to a receiver in an effort to share
knowledge.
According to Stanton, promotional mix element
comprise of personal selling, publicity, sales promotion,
public relation, advertising and direct marketing.
Each of us has been on the consumer end of these
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intricate promotional webs that have been woven to make
us buy and keep on buying certain products. We know the
nagging voice that keeps accusing us of being willingly
manipulated.
Consequently people often misuse the term sales
promotion which is not entirely the same. It should
therefore be noted that sales promotion is simply an
aspect, a part, a fragment and an iceberg of promotion or
the promotional activities as a whole.
According to Cole, G.A Sales promotion activities are
a form of indirect advertising, designed to stimulate sales,
mainly the use of incentives.
According to a British Author. John Frain, sales
promotion usually compliment an organizations
advertising, personal selling efforts, and publicity efforts. It
also includes those marketing activities assigned to
encourage the product users to purchase at the point of

sale. It also enhances dealers’ effectiveness and effective
responses. Such sales promotional exercise may take the
forms of product demonstration, exhibition, and premium
offer and so on.
According to Cole, G.A Sales promotion activities
are a form of indirect advertising designed to stimulate
sales, mainly the use of incentives.
According to a British Author, John Frain, sales
promotions usually compliment an organizations
advertising, personal selling efforts, and publicity efforts. It
is also includes those marketing activities assigned to
encourage the product users to purchase at the point of
sale. It also enhances dealers’ effectiveness and effective
responses. Such sales promotional exercise may take the
forms of product demonstration, exhibition, and premium
offer and so on.
The American Marketing Association (AMA) in its own
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words and opinion defined sales promotion as “those
marketing activities, other than personal selling,
advertising and publicity, that stimulate consumer
purchasing and dealer effectiveness, such as displays,
shows and expositions, demonstrations, and various non
recurrent selling efforts not in the ordinary routine. This
very broad definition embraces much kind of activities
including in store displays, sampling coupons, contests,
trading stamps, trade shows, price –off deals, premiums,
refund offers, sweep takers and rebates.
Sales promotion boost sales by adding value to the
product or service offered and it is a short term strategy
for increasing sales. The innate value of the product or
service has not changed-the day cleaning service is
performed the same way with or without the coupon, and
the book in the bookstore has not changed. Then what has
changed the value of the offering? It’s relationship to price.

In both cases you have been given an incentive – a reason
to buy something other than the product or service’s
inherent benefits.
The strategic thinking behind those incentives is
where the magic of sales promotion takes place.
Incentives encourage specific behaviours. They can shift
the buying habits of individuals, giving an excuse to try a
product, to increase the use of a product or to remain loyal
in the face of competitors’ promotions.
Sales promotion is typically used at the point of
purchase to motivate consumers to complete an
exchange. It is not a substitute for a promotional
programme; instead, it is used to supplement other
promotional activities. Sales promotion, however, can go a
long way towards creating awareness and favourable
attitude –generally the domain of advertising.
According to a school of though, marketers frequently
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employ sales promotional exercise to improve the
effectiveness of other promotional mix ingredients
especially advertising and personal selling. Furthermore,
sales promotions are usually designed to produce
immediate short run increase in sales.
It is thus viewed as a part of the more comprehensive
areas of promotion. Sales promotion encourages those
specialized activities other than personal selling, publicity
and advertising which are calculated to make mass
advertising and personal selling more effective in bringing
about its partnership and in moving goods especially from
the manufacturer to the final consumers. From this
definition, it can therefore be seen that sales promotion is
any marketing activity that is designed to make all other
marketing activities more efficient and effective.
In general, sales promotion is basically a motivational
activity whose efforts are principally aimed at three groups

of people normally the consumers, companies’ salesmen
and the middlemen.
According to Kotler, these are being classified into
those for Dealer promotion (e.g. free goods, merchandise
allowance, co-operative advertising e.t.c.), sales force
promotion (e.g. bonuses, contest etc), and the consumer
promotion (e.g. samples, coupons e.t.c).
However, sales promotional tools possess two
distinctive qualities which are:
1) Insistent presence: - Many sales promotional tools
have an attention gathering quality that breaks the
habit of buyers initial towards a particular service.
2) Production devotions: - Some of these tools
indicate that the seller is very anxious for making
the sales, for they are used too frequently, or
carelessly, they may lead the buyers to wonder
whether the brand is as a desirable or reasonable
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force.
According to Kotler, Sale promotional techniques
make three basic contribution exchange relationship. They
are:
i) Communication: They gain attention and usually
provides information that may lead the consumer
to the product
ii) Incentive: They incorporate some concession,
inducement, or contribution designed that
represent value to the consumer
iii) Invitation: They include a distinct invitation to
engage in the transaction now
Practically, we continuously think of advertising, but
when it does not use mass media it falls into the
categories of sales promotion.
Sales promotion can equally be defined on a
deliberate short term device, comprising of activities which

include above the tine media advertising that work
towards aiding sales representatives, marketing
executives and distributors to achieve more at the point of
sales.
In the recent years, sales promotional activities in
Nigeria has increasingly or tremendously improved,
because it has become necessary to stimulate consumer
buying action in addressed economy. Sales promotion is
efficient and effective in doing this because it is extremely
visible. It often appeal to something for nothing instinct in
people and usually brings about an immediate buying
response.
Most consumers dissatisfaction today with respect to
even convenience goods could be alleviated by a good
sales promotional programme like in other marketing
activities, their exist stiff competition in convenience
goods. Some marketers though that, it is important to
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promote their products, goods and services as a result, the
products have not been brought awareness of the
products and users.
The ignorance of the benefits of sales promotion,
have a great impact on the sales revenue and profits and
competitive ability of the organization.
Thus, sales promotion as a promotional and
communication toll uses these methods to implement
effect and show how the sales volume of an organization
can be boosted.
2.2 OBJECTIVES OF SALES PROMOTION
The basic goals, or aims of sales promotion are very
similar, or identical to those of advertising and personal
selling, however, five specific objectives of sales promotion
are highlighted here:-
(i) To introduce new product: - Sales promotions are

often used to motivate consumers to try a new product, as
to induce business buyers to accept it for re-sales.
The objectives is used to stimulate enquiries and this
is appropriate as a means of overcoming buyers resistance
to new product forms, returning of product forms,
requesting additional information about a particular
product or service or visiting an exhibition at a trade
association meeting can be induced by enquiries.
Marketing executives can generate enquiries by offering
such things as demonstration of a product, a free
catalogue, pre-marital screening or some premium or
prize.
(ii) To induce present customers to buy more:- Sales
promotion is a device that is used and is aimed at
stimulating present customers continuous patronage. This
could be as a result of brand loyalty occasioned by
efficient promotion or discovery of further uses of the
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product as in industrial product. It also encourages
customers to think of more ways and more occasions for
using a product.
(iii) To increase the inventories of business buyers: The
primary objective of such promotion exercise in any
business setting is to increase the inventory size of the
retailer. Theoretically, the more units of goods a re-seller
as in stock, the more aggressive he will be in selling to the
product users. Moreover, a manufacturer who sells in large
quantities can usually reduce his product and distribution
level. Hence, money or merchandise allowances are used
to encourage dealers to stock more products.
(iv) To counteract competition: - It helps to counteract
the competitive effects of co-company that is engaging in
the same product line and similar market share and
market opportunity.
(v) To increase inventories:- Sales promotion facilitates

an avenue of increasing the inventories of business
buyers.
Generally, sales promotion is marketing device that is
aimed at stimulating or regulating the demand for a
product. They, however, yield faster and more measurable
responses in sale than the other promotional mix
elements.
2.3 TYPES OF SALES PROMOTION
According to Stanton there are two types of sales
promotions, namely:-
i) Consumer promotion and,
ii) Trade promotion
(i) CONSUMER PROMOTION: - These are extra value
incentives directed at the final consumer in an attempt to
encourage a positive buying decision. It can also be known
as a consumer
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–oriented sales promotion where the planner takes into
account the type of market, sales promotion objectives,
competitive conditions, and each tool cost effectiveness.
The major forms of consumer promotion include coupons,
sample premiums, contests, and rebates and so on. It is
targeted to the ultimate users of a product or services.
We can distinguish between manufacturer
promotions and retailer promotions. The former are
illustrated by the auto industries frequent use of rebates,
gifts to motivate test-drives and purchase, and high value
trade in credit. The latter includes price cuts, feature
advertising retail coupons and retail contest or premiums.
(ii) TRADE PROMOTION: - This is a form of promotion
that is directed at providing members of the distribution
channel (wholesalers and retailers) an incentive to co-
operate with the manufacturer in promoting and selling its
products. It is also known as trade-oriented sales

promotion and it is targeted towards marketing
intermediaries such as wholesalers, distributors, and
retailers. It is, however, used to encourage the stock and
to promote a company’s products.
Manufacturers allocate a higher proportion of their
promotion tie to trade promotion tools (about 46.9%) than
to consumer promotion (27.9%) with media advertising
capturing the remaining 25.2% manufacturers award
money to the trade for four reasons.
a) To persuade the retailer or wholesaler to carry the
brand
b) To persuade the retailer or wholesaler to carry
more units than the normal amount.
c) To induce retailers to promote the brand by
featuring display, and price reductions.
d) To stimulate retailers and their sales clerks to push
the product.
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2.3.1 FORMS OF SALES PROMOTION
The major forms of sales promotion both for
consumer promotion and trade promotion, which can also
be known as the sales promotional tools, includes the
following:
i) Prizes: These are offers of the chance to win cash
trips, or merchandize as a result of purchasing
something.
ii) Contest, Sweep stakes and games: - A contest calls
for a consumer to submit an entry to be examined
by a panel of judges who will select the best
entries. A sweep stake asks consumers to submit
their names in a drawing. A game presents
consumers with something every time they buy-
bingo number missing letters which might help
them win a prize.
iii) Cash refund offers (rebates):- Provides a price

reduction after purchase rather than at the retail
shop. Consumers send a specified proof or
purchase price by mail.
iv) Coupons: - Certificates entitling the bearer to a
stated saving on the purchase of a specific
product; mailed, enclosed in other products or
attached to them, or inserted in magazines and
newspaper ads. Redemption rate varies with mode
of distribution. Coupons can be effective in
stimulating sales of a mature brand and inducing
early trial of a new brand.
v) Premiums (Gifts):- Merchandise offered at a
relatively low cost or free as an incentive to
purchase a particular product. A with – pack
premium accompanies the product inside or on the
package. The package itself can serve as a
premium.
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vi) Price – Off (off-invoice or off-list):- A straight
discount off the list price on each purchase during
a stated time period.
vii) Allowance: An amount offered in return for the
retailers agreeing to feature the manufacturer’s
products in some way. An advertising allowance
compensates retailers for advertising the
manufacturer’s product. A display allowance
compensates them for carrying a special product
display.
viii) Free Goods: - Offers of extra cases of merchandise
to intermediaries who buy a certain quantity or
who feature certain flavour or size. Manufacturers
might offer push money or free specialty
advertising items to retailers that carry out the
company’s name.
ix) Cross promotion:- Using of brand to advise another

non-competing brand.
x) Tie –in promotion: - Two or more brand or
companies team up on coupons, refunds, and
contests to increase pulling power. Multiple sales
force pushes these promotions to retailers, giving
them a better shot at extra display and space.
Other consumer promotion and trade promotional tools
includes product warranties, trade contests, dealer trade
shows, push money, trade allowances, product
demonstrations, free trails patronage awards, point of
purchase (Pop) Displays and Demonstrations and a hot of
others.
Although sales promotional tools-coupons, contests,
premiums and the like-are highly diverse, they offer three
distinctive benefits, which are communication, incentive
and, invitation.
Companies use sales promotion tools to draw a
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stronger and quicker buyer response. Sales promotion can
be used for short run effects such as to dramatize product
offers and boost sagging sales.
2.4 FUNCTIONS OF THE SALES FORCE
A key of the sales is one of the information gatherings
which link up directly with the firms’ intelligence and
marketing information system. Sometimes, a sales person
will face criticism about the company from buyers which
marketing management would not necessarily learn from
other sources. Such criticism would relate to delivery or
quality, defects in comparison with competitive offering.
Competitive activity itself is a subject about which sales
staff can provide information, but care should be taken to
recognize when buyers ‘feed’ misleading information to
sales personnel in order to obtain some advantage from
them. The sales interview should some times for general
discussion related to market trends and developments.

The experienced sales person can now accurate a series of
marketing interviews. Ideally, sales staff should have a
good working knowledge of marketing research
techniques, and a good thorough understanding of the
need for, and use of, the whole marketing information
system. This will make them aware of why information is
requested of them and make them feel that, carrying out
the task is an important and worthwhile function.
In sales “representative” the word representative is a
precise term. He or she represents the company as an
ambassador would in national or diplomatic circles. For
this reason sales staffs fulfills an important public relations
role. Primarily, the sales person deals with the company’s
customers, and it is here that he or she should convey all
that goes to make up the company’s total image. A
salesperson that is habitually late or untidy will form a
prior impression in the consumers mind not only of that
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salesperson but of the whole company, because for many
buyers the salesperson or representative is the only link in
the consumer –supplier relationship.
The salesperson’s role, however, is more far reaching
than for customer liaison alone. He or she, in a
professional capacity is always in the eye and should be
expected to protect and promote the company’s image
among all people that are contacted, that is, suppliers,
customers and competitors and so on. Sales personnel
also meet a wide variety of people at exhibitions, training
course and business related functions. In such situation
they are ideally placed to support the marketing effort of
the company they represent.
Sales staff can also contribute to the marketing effort
by participating in planning. They are the people who have
first hand knowledge markets and customers and can give
advice and opinion on such matters as pricing, credit,

discount, advertising, and a host of others. They can also
provide feedback after marketing plans have been
implemented. In particular sales staff can assist in sales
forecasting by providing both subjected and objective
estimates of sales trends- forecasting as specialist
procedure and salesperson should have training in its
practice, this should include statistical analysis and linked
closely to the requirement of sales staff to contribute to
the marketing information system (MIS).
Many companies provide their sales force with
‘leads’, or have other customers bases which are so well
established that there appear s little need for prospecting.
But prospecting for new business should be an essential
part of all sales activity, as well as finding new customers,
prospecting is also another method of exploring the
market.
Finally, the sales force should make a positive
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contribution to new product development, sales
promotional programmes and activities and should be
encouraged to do this in formal manner. The sales force
can generate new idea by referring to customers
complaints which may show room for improvement, or by
informing management of how well competitive products
are being received.

2.5 SALES PROMOTION PLANNING
Just like any other business task, it is desirable to
prepare a full plan to ensure that each stage is attained, as
there are considerable numbers of stages during the
running of a particular promotion. An example of the sales
promotion planning stages includes:-
(1) Analyze the problem task
(2) Define the objectives
(3) Consider and/or set the promotional budget
expenditure
(4) Examine the types of promotion likely to be of use
(5) Define the support activities (e.g. advertising,
incentives, and auxiliaries)
(6) Testing (e.g. a limited store or panel test)
(7) Decide measurements required
(8) Plan time –table
(9) Present details so sales force, retailers, e.t.c.
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(10) Implement the promotion
(11) Evaluate the result
2.6 THE PROMOTIONAL MIX ELEMENTS
According to Eric McGregor (1971), promotion is a
fashionable word today. It simply talks about features of
something which people called “public” this is what sales
promotion does.
While, ‘Bidemi Osunbiyi defined promotion as the
marketing practice of temporary offered better value for
money.
Promotion can also be defined as any technique that
persuasively communicates favourable information about
a seller’s product to potential buyer.
In addition, promotion has been defined as the co-
ordination of all seller- initiated efforts to set up channels
of information and persuasion to sell goods and services or
promote an idea.
The other promotional mix elements include personal
selling, public relation, publicity, advertising and direct
marketing.
2.6.1 PERSONAL SELLING
This is a form of person to person communication in
which a seller attempts to assist and/or persuade
prospective buyers to purchase the company’s product or
service or to act or an idea.
Personal selling is the most effective tool at later
stages of the buying process, particularly in building up
buyer preference, conviction and action. It also has
immediate feedback due to the fact that there is direct
contact between buyer and seller. Personal selling has
three distinctive qualities.
(i) Personal Confrontation:- Personal selling involves an
immediate and interactive relationship between two
or more persons. Each party is able to observe the
45
others reaction at close hand.
(ii) Cultivation: Personal selling permits all kind of
relationship to spring up, ranging from a matter – of –
fact selling relationship to a deep personal friendship.
Sales representative will normally have customers’
best interest at heart.
(iii) Response: - Personal selling makes the buyer feel
under some obligation for having listened to the sales
talk.
2.6.2 PUBLIC RELATION
This is defined as “the deliberate planned and
sustained effort to establish and maintain mutual
understanding between an organization and its public
(Instituted Public Relations). It is relatively cheap, but
certainly not cheap. Successful strategies tend to be long-
term and plan for all eventualities.
Also, when an organization systematically plans and

distributes information in an attempt to control and
manage its image and the nature of publicity it receives, it
is really engaging in a function know as public relation.
Public Relation can also be defined as management
function which evaluates public attitudes, identifies the
policies and procedure of an individual or organization with
the public interest, and executes a programme of action to
earn public understanding and acceptance.
2.6.3 PUBLICITY
This refers to non personal communications regarding
an organization, product, service or idea not directly paid
for or run under identified sponsorship. It usually comes in
the form of a news story, editorial or announcement about
an organization and/ or its product and services.
Publicity also helps not only to relate constructively to
customers but also to a large number of interested publics.
However, publicity and public relation in being
47
misunderstood to mean the same thing. Although they
share certain similarities, the fact still remains that they
are not totally the same.
The appeal of publicity and public relations is based
on three distinctive qualities.
i) High credibility:- New stories and features are
more authentic and credible to readers than
advertising.
ii) Ability to catch buyers off guard: - Public relations
can reach prospects who prefer to avoid sales
people and advertisement.
iii) Dramatization: - public relations, yet well –
thought- out program coordinated with the other
promotion- mix elements can be extremely
effective.
2.6.4 ADVERTISING
This can be defined as a paid for communication. It is

used to develop attitudes, create awareness, and transmit
information in order to gain response from the target
market According to Shaprio (1973) advertising is a non
personal paid message of commercial significance about a
product, service or company made to a market by an
identified sponsor. There are many advertising ‘media’
such as newspaper (local, national, terrestrial, satellite)
cinema, outdoor advertising (such as posters, bus sides).
Advertising has the following qualities:
i) Public presentation: - Advertising‘s public nature
confer a kind of legitimacy on the product and also
suggests a standard offering. Because many
persons receive the same message, that motives
for purchasing the product will be publicity
understood.
ii) Persuasive Advertising permits the seller to repeat
a massage many times. It also allows the buyer to
49
receive and compare the message of various
competitions.
iii) Amplified Expressiveness: - Advertising provides
opportunities for dramatizing the company and its
product through the artful use of print, sound, and
Cohan.
iv) Impersonality: - The audience does not fell
obligated to pay attention or respond to the advert.
Advertising is monologue in nature.
Advertising can be used to build up a long term
image for a product and it triggers quick sales.
2.6.5 DIRECT MARKETING
According to Kotler (2000), this can be defined as a
from of marketing communication in which the market
uses a customer database (a list and profile of current and
potential customers) and an advertising medium to
identify and communicate with a target market that is

highly likely to respond immediately to the marketers
offering with a measurable action (a request for additional
information, a complaint about a past transaction, or an
acceptance of the current offer - a sale).
This, however, involves a variety of activities;
including data base management, direct selling, tele-
marketing, and direct response through direct mail and
various broadcast and print media.
The components of direct marketing include direct –
mail marketing, mail – order marketing and direct
response marketing. Although there are many forms of
direct marketing – direct mail, internet marketing e.c.t, yet
they all share four distinctive qualities:-
i) Non public: - There message is normally addressed
to a specific person.
ii) Customized: - The message can be prepared to
appeal to the addressed individual.
51
iii) Up- to date:- A message can be prepared very
quickly,
iv) Interactive: - The message can be changed depend
on the person’s response.
2.7 TEN COMMANDMENTS FOR CREATIVE
PROMOTION
According to Osunbiyi, Creativity is a phenomenon that
enjoys a wide acceptance and application in promotion.
Creativity is not only limited to the advertising sphere.
Efforts such as sales promotion require a structured,
organized and good creative management as well.
Therefore, these 10 commandments, according to Bovee
and Arens should be formed handy for both developing
and reviewing promotion:-
1) You should set specific objective
2) You should know how basic promotion techniques
work.
3) You should have simple, attention – getting copy
4) You should promote your promotional efforts with
other marketing plans.
5) You should clearly communicate your concepts.
6) You should support the brand positioning and image
7) You should lay out contemporary, easy to track
graphics
8) You should reinforce your brands advertising
messages
9) You should know the media to work with.
10)You should know when to break the nine
commandments.
The tenth commandment is the ultimate creative
exercise. It requires bold CD confident creative personnel
to know when breaking any of these rules is the best way
or action to take at a given period.
2.8 SITUATIONAL ANALYSIS/ PROMOTIONAL
53
STRATEGY.
According to Kotler, the main emphasis is determined
by an external environment as well as by certain aspects
of the marketing organizations itself. Some of the key
environmental factors include; nature of the market, the
nature of product, push versus pull strategies, stages in
the buying decision process, and financial resources.
2.8.1 THE NATURE OF THE MARKET
Promotional decision should be based on a firms
understanding of the market. Its sizes nature can actually
dictate the strategy. For instance, a widely dispersed
market like those for consumer package goods requires a
large number of contacts.
2.8.2 NATURE OF THE PRODUCT
This affects the methods used to the product.
Personal selling is emphasized when a product has a high
limit value, since consumers often need to be persuaded

into making the exchange.
When a demonstration is show the products main
features, personal selling is far more effective than
advertising.
2.8.3 PUSH VERSUS PULL STRATEGIES
This distinction refers to the ways in which a tries to
get intermediaries to carry its products. In push strategy,
each channel member attempts to persuade the next
number in the system to handle and promote the product.
This means the product is “pushed “through the channel,
often by means of personal selling. In a pull strategy, the
producer uses production to stimulate demand in the
consumer market. Marketers normally spend heavily on
advertisement or advertising “pull” the product through
the channel.
2.8.4 STAGES IN THE BUYING DECISION
PROCESS
55
This deals with how consumers first became aware of
a product and their search for information relevant to the
product, make a decision and finally evaluate that
decision. It has been revealed that different promotional
activities have degrees of effectiveness at different points
in the process.
2.8.5 FINANCIAL RESOURCES
In many marketing situation, cost are major
consideration in choosing a promotional tool to emphasize.
But they tend to act as a constraint, rather than as
indicator of which activity to purse advertising, for
instance, means of promotion.
2.9 PROMOTIONAL BUDGET EXPENDITURE
This involves the consideration of factors in
determining the amount of funds to be appropriated for
sale promotion performance. Moreover, these funds should
be appropriated and allocated in such a fashion that the

stated objectives are achieved in the most cost-effective
way. These factors include the following:-
i) The sales forecast.
ii) The general marketing.
iii) Customer destiny/ volume.
iv) Customer size.
v) Profitability of the product.
vi) Quality sold.
vii) Unit price.
viii) Trading area.
ix) End- Use of product and,
x) General economic condition
2.9.1 Method of promotion budgeting
appropriation
The ways of appropriating the amount to be spent on
promotional tools i.e sales promotion towards effective
product performance of company is based on the
57
following methods.
1) The object task method
2) The competitive parity method
3) The competitive parity method, and
4) All the company can afford method.
2.10 MEDIA STRATEGY TOWARDS AN EFFECTIVE
SALES PROMOTION ON PRODUCT
PERFORMANCE
The media strategies that could be used in achieving
a meaningful impact of sales promotion tools appropriated
on a product are as follows:
a) Continuity strategy: - This is a process whereby
products are often promoted, by using sales
promotion mix, and advertising on the media/channel
often e.g. Convenience goods like soap, coca- cola,
bread, maggi e.t.c.
b) Fighting strategy:- These are product promoted

through the advertising of sales promotional tools
and used mostly at a particular time and
continuously, example are joy soap, Imperia leather
soap e.t.c
c) Concentrated Strategy: - These are products
promoted through the adverting of sales promotional
tools is used mostly at a particular season, or once in
a while when on promotion i.e. sales promotion.
Example include greeting cards, soap, detergent,
e.t.c. could be used for this purpose.
d) Pulsing strategy: - Here advertising is being carried
out when the demand of the product is needed in
large quantities in order to achieve meaningful
impacts of sales promotion on product performance
and to be able to boost sales volume for the
company and it all happens in the market place. For
example, this is usually carried out during the
59
weekends say Friends, Saturday and Sundays, in
order to reach their target audience. It could also be
regarded as the matching efforts of the continuous
and fighting strategies.
2.11 EFFECTIVENESS AND EFFICIENCY OF SALES
PROMOTION
Sale promotion is one of the most significant
segments of communication mix, or promotional tools,
where effectiveness cannot be readily measured,
especially from the managerial point of view.
However, the most proficient and product way is the
one in which the target users respond to the sales
promotional activities.
Evaluation is a crucial requirement and yet an
evaluation of promotional programme receives little
attention. Even where an attempt is made to evaluate
promotion, it is likely to be superficial. Evaluation in terms

of profitability is even less common.
Industries can make use of about four basic methods
to measure sales promotion effectiveness. The most
commonly used method among others is to examine the
sales data before, during and after promotion.
For instance, if after the recharge and win
promotional programme conducted by MTN Nigeria their
sales now increase nationwide from N500, 000.00 per
months to
N800, 000.00 per month within the same period, the
effectiveness of sales promotion is seen.
This can be qualified in terms of cost and profitability.
Consumers paid data would reveal the kind of people who
respond to the promotion and what they did after the
promotional exercise, if more information is needed.
Consumer survey can be conducted to learn how many re-
calls of the promotion, what they thought of it, how many
61
derives promotional exercise advantages, and how the
promotion affected their subsequent brand choice
behaviour.
Sales promotional effectiveness could also be judged
through experiments that vary. Such characteristics like
incentive value, duration, and distribution media. It is wise
thus, to place the power of sale promotion behind those
products or services which are worth while to the company
and those who are directly in this distribution of such
products and services.
Otherwise; they may be considered un-important and
may not receive necessary co-operation from “expected
quarters”. Too frequently, an ordinate amount of sales
promotion is directed at a product which intrinsically does
not deserve the interest or attention of trade. The reason
behind this misconception that sales promotion in most of
its accepted, or known areas inexpensively compound with

advertising and publicity, and therefore, very often can be
successfully performed by the company itself, but it is
often forgotten that the penalty for heavy promotion on an
unworthy or undesirable product is that sales manager will
experience a substantial loss of prestige with the sales
organization and its marketing strategy.
Sales promotion efficiency on the other hand,
involves dozens of devices for stimulating buyer interest
and product trial. To improve sales promotion efficiency,
management should record the costs and sales impact of
each promotion. Management should watch the following
statistics:
a) Percentage of sales sold on deal
b) Display costs per sales naira
c) Percentage of coupons redeemed
d) Number of inquiries resulting from a
demonstration.
63
A sales promotion manager can analyze the results of
different promotions and advice product managers on the
most cost-effective promotion to use.
2.12 ADVANTAGES AND DISADVANTAGES
OF SALES PROMOTION
Among the numerous advantages of sales promotion
as a boost to company’s sales volume include.
i) Sales promotion facilitates easily measured
response.
ii) It encourages quick achievement of objectives
iii) Sales promotion can be extremely cheap
iv) Sales promotion directs support of sales force.
v) Sales promotion is flexible in application
vi) Sales promotion mainly promote and stimulate
sales
vii) It builds product image
viii) It combats competition

ix) It improves the company’s good will
x) It increases the company’s profit as a result of the
increase in sales.
While the disadvantages of sales promotion cannot
be overemphasized and it include;
i) Price- discounting can cheapen brand image
ii) Sales promotion only fosters a short –term
advantage only
iii) Sales promotion can cause stress with retailers
iv) Sales promotion can cause difficult in
communicating brand message.
v) Sales promotion could lead to a waste of efforts
when it is not fully or efficiently utilized.
2.13 SHORT COMINGS OF SALES PROMOTION
The effect of sales promotion must be used and
utilized judiciously. This is so because some special
promotional activities could be a signal to buyers that is
65
eager to sell more of the products.
Subsequent scheduling of such events conveys the
notion that the product that is being pushed is inferior, ill-
designed or even overpriced/ the repeated usage of sales
promotional activities may actually tend to extinguish the
desired customers response by causing such customer to
be tired of such appeals. Sales promotion are short-lived
limited in durability and not suitable for long range or
sustained marketing efforts.
More so, sales promotion is not always creative, or
innovative, imaginative, its tasteless, many programme
and projected message that unintentionally create
negative customers attitude towards the products that
actually boost competitor’s products, or otherwise
alienates company’s dealers outlets.
Consequently, some of the sales promotion
programmes and items, such as free samples, offer,

contests, or competition and premium are very expensive
and as such restrict some management from
implementing sales promotion as a marketing promotional
strategy, therefore considering it as being relatively
expensive.
CHAPTER THREE
3.1 HISTORICAL BACKGROUND
MTN Nigeria Communications Limited is part of the MTN Group,
Africa’s leading mobile Telephony Company. MTN Nigeria secured on of
four licenses to operate digital (Global System for Mobile
67
Telecommunication - GSM) telephony on February 9, 2001, from the
Nigerian Communications Commission.
On May 16, 2001, MTN Nigeria emerged as the first
telecommunications company to make a call on its GSM network in the
new dispensation. Then, the company launched full commercial
operations beginning in Lagos, Abuja and Port Harcourt, in August 2001.
MTN Nigeria regularly leads the industry with innovative products
such as MTN XtraConnect, MTN XtraCool, MTN a MTN XtraSpecial,
MTN e–Charge (all pre-paid packages), MTN Enterprise Solutions, MTN
XtraSmart, (post-paid or contract packages). There is also an array of
value added service that it is MTN Customer Services (180), MTN Self
Service (181), Enhanced Data and Fax, Short message Service,
International Calling, International Roaming, Conference Calling,
Faxmail, Mobile Web, Wireless Application Protocol (WAP),
CallerTunez, MTN Loaded, MTN GPRS, Voicemail Service , Emergency
Service s Funtones, MTN Call Me, MTN Take 2, MTN Directory
Enquiries, MTN Business Directory, Movie El Service, MTNGraphix,

MTN Logos and MTN Downloads.
MTN’s Products and Services are available at its numerous Service
and with authorized distribution and franchised outlets. MTN Recharge
Cards can be procured at MTN Service Centres, Connects, authorized
Distributors, Eateries, Petrol Station and neighbourhood convenience
Stores.
The company currently has a total of sixty-six (66) switches located
in Lagos (17), Abuja (5), Asaba (8), (4), Port Hacourt (6), Ibadan (8),
Owerri (5), Kaduna (3), Enugu (5), and Benin (5). In addition, its
operation as at the end of October 2007, about 3179 active sites.
On January 20, 2003, MTN commissioned the first phase of its
digital microwave transmission back Y’elloBahn. Constructed at an initial
cost of $120million, the first phase of Y’elloBahn spanned 3,000
kilometers. The 2nd phase of Y’elloBahn will traverse another 4,500
kilometres. Its construction began in 2003, and it is nearing completion.
Y’elloBahn is Africa’s most extensive digital transmission infrastructure
and has significantly helped to enhance call quality on MTN’s network
69
while our coverage has extended to more than 1512 cities and towns.
On October 12, 2006, Phases 1 and 2 of the MTN Fibre Optics, laid
to improve transmission on the network, were successfully deployed on
the MTN network. The cable has a combined length of 3165.53km. Phase
1 covers Lagos – Ibadan, Port Hacourt-Enugu, Asaba-Enugu and Phase 2
covers Lagos Asaba, Ibadan-Abuja, Enugu-Abuja. Phase 3 which is about
1342.96km and moves from Hasco-Kano, Bauchi and Bauchi-Akwanga
was completed in December 2006. In 2007, the metro ring in Lagos and
Niger-Delta Backbone, connecting; Porthacourt-Warri-Bennin was
completed. Already it is the longest Fibre Optics cable ever laid in Africa
and one of the most modern.
On February 10, 2003, MTN recorded one million active
subscribers on its network. And with over five million subscribers
attained so far, it has become the largest telecommunications network in
Nigeria especially as its services have become available in all thirty-six
states of the federation, including the Federal Capital Territory (FCT).
MTN subsists on the core brand values of Leadership, Innovation,

Integrity, Relationships, and a clear attitude. It prides itself on its ability to
make the impossible possible, connecting people with friends, families
and opportunities.
MTN Nigeria is 75% owned by MTN (Mauritius) Limited, 22%
owned by Nigerian partners, and 3% owned by the International Finance
Corporation (IFC is the infrastructure investment arm of the World Bank).
MTN offers you a variety of products and services on our Prepaid
and Postpaid billing platforms, tailored to meet your diverse needs.
Whether you are a business executive, student, mother, Business Centre
operator, there is an MTN plan that has been designed with you in mind.
MTN Post Paid Products
MTN XTRASMART
MTN XTRASMART offers corporate organizations and individuals
hassle-free control of both employee and personal phone call costs. It
offers you and your organization all the benefits you would expect from a
contract package plus the cost control feature of a prepaid package.
MTN XTRASMART customers are required to commit to an upfront
71
monthly payment of either N3,000, N5,000, N10,000 depending on the
intended usage pattern. Each band offers different call rates. This monthly
payment entitles you to airtime value equivalent to the amount of the
chosen band and can be used for voice (local and international), data and
value added services.
Monthly payments are required to be made before the eighth of the
month to avoid line suspension. Once the monthly airtime allowance has
been exhausted, you will no longer be able to make calls. You may decide
to wait till the new moth before making payments or you may choose to
make additional payments within the month either in cash or with a
Cheque into MTN’s account. You may also choose to recharge your
accounting using MTN’s prepaid recharge cards.
If you always wanted the benefits of a contract plan without the risk
of running an uncontrolled bill at the end of the month, MTN
XTRASMART will put you back in control. Now you will never spend
more than you can afford; no compulsory deposits on international calling
no activation charges and no long term contractual agreements.

MTNXTRAVALUE
MTN XTRAVALUE is designed to offer the discerning executive,
cost saving low tariffs and the convenience of paying for your calls at the
end of every month. It offers you uninterrupted talk time, low access
charge of N1500 per moth, 27/ksec for calls to MTN numbers, 37k/sec for
calls to other networks, four happy hours of talk time at 10/sec between
12:30am 4:30am daily and so much more.
To subscribe to MTNXTRAVALUE you will need to fill a
Subscriber Agreement Form and pay a security deposit. Detailed
information can also be found in the product brochure, form our
Corporate Sales Executives, Service Centres and MTN Connects.
MTNbizcom
This service enables businesses to organize their own private
Network within the MTN Network.
MTN SMEPACK Gain the Edge in Business
The MTN SME Pack provides a platform for delivering real
business benefits to SMEs. it is a 5-in-1 Sim pack specifically tailored to
73
cater for the telecommunication needs of Small and Medium Scale
enterprises. It gives you business control, value for money spent, access to
a dedicated business knowledge base via our SME Assist line and so on.
MTN Messenger , MTN Toll Free, MTN Care, MTN Container and
Vehicle Tracking Service, MTN Mobile Office, MTN Recharge A-
Contract, MTN bizTime take 2, MTN Mobile Web, Voicemail, Text
Messaging (SMS), International Roaming , International Calling
,Emergency Services (112), MTN Logos & MTN Graphix, Caller Tunez,
MTN Loaded, MTN Funtones, MTN Call Me,GPRS,Wireless Application
Protocol (WAP), Fax mail, Mobile Data & Fax, Enhanced Mobile Data &
Fax, Customer Services (180), Directory Enquires (200), Business
Directory Services (142), Conference Calling, Call Forwarding, Call
Holding/Call Waiting, Call Line Identification, Call Barring.
Other MTN Nigeria Packages & additional services are:
MTN XTRACONNECT, MTN XTRACOOL, MTN XTRAPRO AND
XTRASPEICAL, MTN XTRAPROFIT, MTN Family & Friends, MTN e-
Charge, MTN Prepaid Menu, Connect 4 life e.t.c

3.1.1 THE BOOST OF THE COMPANY’S SALES
VOLUME THROUGH SALES PROMOTION
The battle for supremacy along with the stiff
competition for increased market share and fierce,
especially among various Communication brands in
Nigeria, notably MTN, Celtel and Globacom have elevated
sales promotion into prime product marketing strategy. In
the early years intense competition was witnessed in the
Nigeria market between the Nitel, Econet (Celtel) and MTN
and Globacom which resulted in the use of powerful
promotional gimmicks by the these companies and their
brands.
MTN which have been around for a while was the only
notable rival of telecommunications to the dominance of
the Communications market by Econet. To revive interest
in its brand, MTN Nigeria devised a promotional strategy
with the aims of gaining more market share in the
75
Communications industry and market, gaining goodwill for
the company as getting a good image and regaining
awareness and interest in the brand. So therefore several
promotional activities and programme were now carried
out during the period. The first promotion conducted then
was the free air time promo in which consumers are giving
free air time if they could recharge their lines ranging from
N750, N1,500, N2,000, N5,000 and N10,000 weekly. This
aggressive promotional effort using both the electronic
and print media resulted in about 60% increase in sales
during three (3) months period of the promotion
What would the sales of MTN Nigeria have been
without the promotion? Would that gain have been
achieved if MTN Nigeria has simply placed all its efforts
into advertising? The answer to this question is the key to
understanding sales promotion and how it work.
However, MTN Nigeria is still in love with sales

promotion as an effective marketing strategy that has
boosted their sales volume, is boosting and will keep
boosting their sales volume. Different sales promotional
activities have been conducted and carried out between
2001and 2008.
All these sales promotional programmes have in a
great measure boosted the sales volume of the company
and it has enabled them to gain more market share and
profit and also to be able to survive in the
telecommunications industry.
3.2 RESEARCH METHODOLOGY
Data are information, which include facts, opinions,
motives, intentions and knowledge about something which
was analyzed for this research work.
According to Osula (1982), Research is defined as the
process of arriving at dependable solution to problems
through planned and systematic collection, analysis and
77
interpretation of data. Therefore, research methodology
connotes analysis and interpretation of data required for
this research work.
Since the purpose of this research work is to examine
the effect and impact that sales promotion has on a
company’s sales volume and the possible sales
promotional media producers can adopt in marketing
consumer products using MTN Nigeria, headquarters,
Lagos state and Ilorin Branch in Kwara State, Nigeria.
3.3 METHOD OF DATA COLLECTION
The data require for this research work were collected
from twp sources. They include the primary and secondary
sources.
i) PRIMARY SOURCE: - This refers to data gathered for
the first time and used for specific investigation at
hand. They are data gathered by the researcher
himself from the respondents, units, or sample survey.
These data were obtained through questionnaire

administration. The use of questionnaire was
necessary because of the accessibility of the desired
respondents which includes both the staff and
management of MTN Nigeria and the consumers and
customers of the company’s products.
ii) SECONDARY SOURCE:-These are data gathered not
for immediate study but for other purposes. They are
data gathered by the researcher himself. More so, they
are collected from already existing records. The major
secondary data for this study were from publications,
financial sales and annual reports, journals and
newspapers from various learning research sources
and centres.
This was basically to evaluate and critically analyze the
related literature on the research topic and help the researcher
to understand some basic concept in the study.
3.4 RESEARCH QUESTIONS
These are tentative statements on which responses to
79
questions are to be tested for agreement or otherwise. This
exercise will, however serve as a test for this influence, effect
and impact of sales promotion on company’s sales volume.
In view of this, the research questions to be analyzed are
as follows:-
i) Does sales promotion affect company’s volume and
profitability
ii) Does sales promotion affect consumers buying
decision?
iii) Does sales promotion aid the growth and survival of an
organization?
iv) Which medium of sales promotion better influence the
buying decision of consumers?
3.5 HYPOTHESIS TO BE TESTED
Hypotheses are logically linked body of ideas and
prepositions of suggestions part forward for reasoning and
explanation of a phenomenon.
The research hypotheses in this study are:-

HYPOTHESIS 1
H0:- Sales promotions boost and affect company’s sales volume
H1: Sales promotions do not boost and affect company’s
volume.
HYPOTHESIS 2
H0: c Consumers buying behaviour and decision is influenced
and affected by sales promotion.
H1:- Consumers buying behaviour and decision is not influenced
and affected by sales promotion.
H0: NULL HYPOTHESIS
H1: ALTERNATIVE HYPOTHESIS
3.6 SAMPLE SIZE
A fundamental concept of research and interpretation of
data is the area of sample to ensure work ability, when a
population is not easily accessible.
A researcher is interested in studying the nature of a
phenomenon as exhibited by a group of subject, hence, the
81
need to derive a method which ensure on understanding the
phenomenon properly without incurring too much expenses
and wasting too much time, this is done by studying a sample
of samples drawn from the total population. A population is
made up of all conceivable elements, subject of obstruction
relating to a particular phenomenon in interest to the
researcher. Subject or elements are individual items that make
up the population. They may be observed a physically counted.
According to Osula (1982) sampling is defined as taking a
proportion of the population as its representative. The difficulty
in interviewing every individual in the company’s staff and the
consumers is a serious challenge. This, however, necessitated
the use of sample to show fair representation among the
census.
A sample size of 25% of the population which was
scheduled to 50 respondents representing 30 consumers and
20 members of staff were given questionnaire to administer. In
so far as it was difficult to distribute questionnaire to all

consumers, the chosen percentage of the research population
is believed to be a true percentage.
3.7 RESEARCH INSTRUMENT
Research instrument are some of the tools used in
collecting the required information. Some of the instruments
are questionnaire, personal observation, and personal interview
and so on.
(i) QUESTIONNAIRE: - This refers the tool and technique used
by the researcher to gather research information. It is a source
of primary and first hand data (i.e. raw data) which involves
written communication with respondents and requires that
questions are prepared, written and forwarded to respondents
who in turn send their responses back to the researcher.
These questionnaires were distributed to the management and
staffs of MTN Nigeria, and another set of questionnaires were
distributed to the consumers of the company’s product
(Subscribers). All the information gathered through personal
interview was supplemented through the distribution of
83
questionnaire to the consumers.
(ii) PERSONAL INTERVIEW:- Personal interview is a
techniques used for collecting information from others
(respondents) in a face to face manner bearing in mind the
objective of this study is to obtain information on the pact and
affect that sales promotion has on company’s sale volume.
It can also be said to the procedure which involves the
interviewer or research asking the respondent already
prepared question and then record the answers from the
respondents. Interview can either be structured or
unstructured.
The researcher deemed it imperative and wise to have a
face to face interview and discussion with marketing/sales
manager of MTN Nigeria. Some other related information was
collected through observation in both the company’s
headquarters in Lagos and branch in Ilorin, Kwara State.
3.8 METHOD OF DATA ANALYSIS
After the collection of data through the methods earlier

mentioned, tables were drawn to show the result of each
question and data were analyzed and interpreted in
accordance with the response of the questions.
The data collected from the financial, sales and annual
report together with those collected through interview and
questionnaires were tabulated and percentages assigned. Chi-
square as a statistical tool was used to test the data collected
during the hypothesis testing and it contributed immensely to
the research work.
85
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 DATA PRESENTATION
This chapter is concerned with the presentation analysis
and interpretation of data which was collected through the
research questionnaires.
The sample frame for this study covers some of the
workers of the organization especially those in the sale and
marketing department and the customers in general. However,
a convenient sample size of twenty (20) staffs and thirsty (30)
customers were used. The staffs and customers responded to
all the research questions and the entire questionnaires were
returned. The views of the respondents are presented in
tabular form as follows:

4.2 DATA ANALYSIS AND INTERPRETATION
TABLE 4.1
DISTRIBUTION BY SEX OF THE RESPONDENT STAFFS
SEX FREQUENCY PERCENTAGE (%)

Male 12 60
Female 8 40
Total 20 100
Source:- Questionnaire Administered
From the table above, we can see that the number of
male in the department is greater than that of female, which
means the male dominates the female in the department
convened.
TABLE 4.2
DISTRIBUTION BY SEX OF THE RESPONDENT
CUSTOMERS
SEX FREQUENCY PERCENTAGE (%)

Male 9 30
Female 21 70
Total 20 100
87
Source: - Questionnaire Administered
From the research carried out among the customer and at
various place about the effect sales promotion has on
company’s sales volume, the total number of female was 21
which is 70 percent and it is greater than that of the male
which is 9 in number and 30 percent.
The table therefore, shows that female uses the
organizations products that the male.
TABLE 4.3
AGE GROUP OF THE RESPONDENT STAFF
Age Group Frequency Percentage (%)

20-30 years 10 50
31-40 years 5 25
41-50 years 3 15
51 years and above 2 10

Total 20 100
The above table shows that 50% of the staffs are between
the age group of 20-30 years, 25% are between the age group
of 31 – 40 years, 15% are between the age group of 41 – 50
years, while 10% are above 51 years.
TABLE 4.4
THE AGE GROUP OF THE RESPONDNET CUSTOMERS
Age Group Frequency Percentage (%)

20-30 years 13 43.3
31-40 years 10 33.3
41-50 years 5 16.7
51 years and above 2 6.67

Total 20 100
The table shows that 43.3% are of 20 – 30 years of age,
33.3% are of 31-40 years, 16.7% are of 41-50 years, and 6.67%
are of 51 years and above. From the analysis so far most of the
customers fall between the age brackets of 20-30 years.
89
TABLE 4.5
MARITAL STATUS OF THE RESPONDENT STAFF
Marital Status Frequency Percentage (%)

Married 13 65
Single 7 35
Total 20 100
The above table shows that 65% of the staffs are married
while 35% are single. Therefore, the department has a greater
number of married workers than single workers.
TABLE 4.6
MARITAL STATUS OF RESPONDENTS CUSTOMERS
Marital Status Frequency Percentage (%)

Married 13 43.3
Single 17 56.7
Total 30 100
The table above shows that 43.3% of the customers are
married and 56.7% are single. Therefore, the single people

purchase the company’s product than the married people.
TABLE 4.7
EDUCATIONAL QUALIFICATION OF RESPONDENT STAFF
Qualification Frequency Percentage (%)

WASC/GRADE II 3 15
NCE/OND 7 35
HND/BSC 9 45
Any other Qualification 1 5

Total 20 100
The above table shows that the percentage of HND/BSC
holders is 45, NCE/OND is 35 percent, WASC/GRADE II is 15
percent, and while any other qualification is 5 percent, and the
staff is a Master degree holder (MBA-Master in Business
Administration).
Therefore, HND/BSC holder dominates the department
concerned.
TABLE 4.8
EDUCATIONAL QUALIFICATION OF RESPONDENT
91
CUSTOMERS
Qualification Frequency Percentage (%)

WASC/GRADE II 3 10
NCE/OND 10 33.3
HND/BSC 17 56.7
Any other Qualification 0 0

Total 30 100
The above table shows that the percentage of HND/BSC
holders is 56.7%, NCE/OND is 33.3%, and WASC/GRADE II is
10% while any other qualification is 0%.
This, however, shows that the HND/BSC holders tare the
ones who purchase company’s product more.
TABLE 4.9
WHETHER SALES PROMOTION BOOST AND AFFECT
COMPANY’S SALES VOLUME. STAFF RESPONSE
Response Frequency Percentage (%)

Significant staff 22 73.33
Little effect 7 23.33
No effect 1 3.33
Total 30 100
The table above shows that 73.33% of the staffs agreed
the sales promotion has significant effect on the sales volume
of a company, 23.33%, little effect and 3.3%, No effect.
TABLE 4.10
COMPANY’S SALES VOLUME.
CUSTOMERS RESPONSE
93
Significant staff 12 60
Little effect 6 30
No effect 2 10
Total 20 100
The above table shows that 60% agree that sales
promotion has a significant effect on company’s sales volume,
30% agrees little effect 10% No effect.
TABLE 4.11
WHETHER SALES PROMOTION AFFECT AND INFLUENCE
THE BUYING BEHAVIOUR AND DECISION OF
CONSUMERS. STAFF RESPONSE

Strongly Agree 10 50
Agree 5 25
Strongly Disagree 1 5
Disagree 3 15
Undecided 1 5
Total 20 100
The above table shows that 50% of the staff strongly
agrees that sales promotion affects and influences the buying
behaviour and decision of consumers, 25% agree, 5% strongly
disagrees and 5% is undecided.
95
TABLE 4.12
WHETHER SALES PROMOTION AFFECT AND INFLUENCES
THE BUYING BEHAVIOUR AND DECISION OF
CONSUMERS. CUSTOMER RESPONSE

Strongly Agree 20 66.6
Agree 5 16.7
Strongly Disagree 1 3.3
Disagree 2 6.7
Undecided 2 6.7
Total 30 100
The above table shows that 66.6% of the customers
strongly aggress that sales promotion affects and influences
the buying behaviour and decisions of consumers, 16.7%
agrees, 3.3% strongly disagree 6.7% Disagrees, while 6.7% is
undecided.
TABLE 4.13
WHETHER THE COMPANY SHOULD SPEND MORE ON

SALES PROMOTION. STAFF RESPONSE
Yes 14 70
No 6 30
Total 20 100
The above table shows that 70% agrees that the
company should spend more money on sales promotion,
while 30% does not agree.
TABLE 4.14
WHETHER THE COMPANY SHOULD SPEND MORE ON

SALES PROMOTION. CUSTOMERS RESPONSE
Yes 22 73.3
No
8 26.7
Total 30 100
The table above shows that 73.3% of the customers
97
agree that company should spend more on sale promotion,
while 26.7% does not agree.
TABLE 4.15
WHETHER ANY COMPANY THAT ADOPTS SALES
PROMOTION STANDS ANY CHANCE TO SURVIVE AND
GROW. STAFF RESPONSE

Yes 17 85
No
3 15
Total 20 100
The above shows that 85.6% of the staffs agreed that
any company adopts sales promotion stands a chance to
survive and grow, while 15% of the staff disagrees.

TABLE 4.16
WHETHER ANY COMPANY THAT ADOPTS SALES
PROMOTION STANDS ANY CHANCE TO SURVIVE AND
GROW. CUSTOMER RESPONSE.

Yes 24 80
No
6 20
Total 30 100
Source: Questionnaire Administered
The table above shows that 80% of the customers
agrees that any company that adopts sales promotion
stands a chance to survive and grow, while 20% does not
agree.
99
TABLE 4.17
WHETHER THERE IS A DIRECT RELATIOSNHIP BETWEEN
SALES PROMOTION AND COMPANY’S SALES VOLUME.
STAFF RESPONSE.

Strongly Agree 14 70
Agree 5 25
Disagree 1 5
Undecided 0 0
Total 20 100
According to the table above 70% agreed strongly
that there is a direct relationship between sales promotion
and company’s is sales volume, 25% agreed, 0% strongly
disagreed, 5% disagreed, while 0% was undecided.

TABLE 4.18
WHETHER THERE IS A DIRECT RELATIONSHIP
BETWEEN SALES PROMOTION AND COMPANY’S
SALES VOLUME. CUSTOMERS REPSONSE.

Strongly Agree 19 63.33
Agree 8] 26.66
Disagree 2 6.66
Undecided 1 3.33
Total 30 100
The table above shows that 63.33% of the customers
strongly agrees that there is a direct relationship between sales
promotion and company’s sales volume, 26.66% agreed, 0%
strongly disagreed, 6.66% disagree, while 3.33% is undecided.
101
TABLE 4.19
DISTRIBUTION OF THE SALES PROMOTIONAL MEDIUM
MOSTLY USED BY THE COMPANY. STAFF RESPONSE.

Coupons 4 20
Exhibitions 3 15
Films and trade show 0 0
Price-offs 0 0
Samples 2 10
Gifts 11 55
Total 20 100
Source: Questionnaire Administered
The table above shows that the company uses gifts which
is 55%, more than the others, followed by coupons with 20%,
Exhibitions by 15% sample by 10% while films and trade show
together with price-offs had 0%.

TABLE 4.20
DISTRIBUTION OF THE SALES PROMOTIONAL MEDIUM
MOSTLY USED BY THE COMPANY. CUSTOMER RESPONSE

Coupons 6 20
Exhibitions 2 6.66
Films and trade show 2 6.66
Price-offs 6 20
Samples 4 13.33
Gifts 10 33.33
Total 30 100
The table above shows that gifts are the mostly used
medium by companies since. It has 33.33% followed by
coupons having 20% price off having 20% sample having
13.33%, while exhibitions and film and trade show has equal
percentages of 6.66%
103
4.3 TESTING OF HYPOTHESIS
This section is designed to determine whether sales
promotion is an effective marketing strategy that can be used
to boost company’s sales volume.
To further understand the effect of sales promotion on
company’s sales volume the following hypothesis will be tested
using the Chi-Square method. The hypotheses to be tested
are:-
HYPOTHESIS 1
Ho: Sales promotion affects and influences customers buying
behaviour and decision.
H1: Sales promotion does not effect and influence customers
buying behaviour and decision
A hypothetical result was obtained from the response of
question 11.
More so, the result was tabulated in a contingency table
(TABLE 4.21) which is used to display information for the
purpose of testing any associating between two variables.

The chi-square test statistic given by the formular
X2 = (Oj-ej)
X2 = (Oj-ej)2 + (O2- e2)2 + …..

ej e2
∑ (O-ej)2
ej
Where Oj = Observed frequencies and,
Ej = Expected frequencies
The expected frequency was calculated using the
following relation
∑F - Responses of the row X Responses of the Column

Total observed frequency
This statistic test is used to know whether observed
frequencies differ significantly from the expected frequencies.
A measure of the discrepancy existing between observed and
expected pregnancies is supplied by the Chi-square statistics
(X)2
If X2, observed and theoretical frequencies agree exactly
while if X2 = O, they do not agree exactly. The smaller the
value of X2, the greater is the discrepancy between observed
105
and expected frequencies. The sampling distribution of X2 is
approximated very close by Chi-square distribution. The
expected frequencies are computed on the basis of a
hypothesis H1. If under this hypothesis the computed value of
X2 0.95) which is the critical value of 0.05 significance level. We
would conclude on the observed frequencies and would reject
the alternative hypothesis (H1) at the corresponding level of
significance. Otherwise, we would accept it or at least rejected
it.
The contingency table observed frequencies was further
analyzed and X2 was determined at 2.34.
The degree of freedom is (r-1) (c-1), assuming 5% level of
significance, the critical value of X2 with 5 degree of freedom
i.e (2-1) (5-1) = (1) (4) = 4X2 – d.f = 4
From the Chi-Square table, d.f under 0.05 is equal to 9.48
Since the calculated Chi-square is lower than the
tabulated Chi-Square, then we rejected the alternative
hypothesis (i.e H1) this means that, Ho will be accepted which

says that sales promotion affects and influence consumers
buying behaviour and decisions.
HYPOTHESIS 2
Ho: Sales promotion boosts and affects company’s sales
volume
H1: Sales promotion does not boost and affect company’s sales
volume.
A hypothetical result was obtained from the response of
question 9. The result was also tabulated on a contingency
table (TABLE 4.22) which was used to display information for
the purpose of testing any association between two variables.
The result shows that 22 staffs were of the opinion that
sales promotion has a significant effect on company’s sale
volume, 7 staffs little effect and, 1 staff no effect, while
consumers on the other hand, 12, 6 and, 2 consumers were of
the opinion that sales promotion has significant effect, little
effect and no effect respectively.
107
The chi-square test statistical formular was also used and
the expected frequencies were calculated using the same
formular relation as in hypothesis 1.
This statistical test is used to know whether observed
frequencies differ significantly from the expected frequencies.
A measure of the discrepancy existing between observed and
expected frequencies is supplied by the chi-square statistics
(X)2
The contingency tables of observed frequencies were
further analyzed and X2 was determined to be 1.0404. The
degree of freedom is (r- 1) (c-1), assuming 5% level of
significant, the critical value of X2 with 3 degree of freedom i.e
(2-1) (3-1) = (1) (2) = 2 X2 – d.f = 2
From the Chi-square table, d.f 2 under 0.05 is equal to
5.99.
Since the calculated Chi-square is lower than the
tabulated Chi-square, then we reject the alternative hypothesis
(i.e H1) this means that, Ho: (null hypothesis) will be accepted
which says that sales promotion boost and affects company’s
sales volume.
In conclusion, from all the facts gathered since the
beginning of this research finding, which is from the table,
analyzing the results of the questionnaires and hypothesis
tested. We can confidently say that sales promotion has a
boost and effect on company’s sales volume it can be seen that
most people are move and inspired to subscribe the company’s
products due to their promotional activities which has also
assisted certain subscribers through gift, exhibition e.t.c.
109
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF THE FINDINGS
In the introduction part of this project, it’s main motive
centered on the need to bring to the limelight, the importance
of sales promotion in an organization. And from the
observations made in the research, remedies were suggested
to certain problems; also a contribution was made to improve
the subject and finally recommendation based on the
observations.
Sales promotion has a strong impact in an organization,
most especially customer oriented organizations. And it has
also tried a lot to bring close relationship between the
consumer and the organization of MTN Nigeria Communications
Limited.
Due to the analysis carried out in chapter four, the
purpose of the findings is to use the response of the producer,
distributors and consumers as well as to determine the boost

sales promotion has in promoting the product of MTN Nigeria.
Some of the findings from the study are as follows:
1) MTN Nigeria makes use of sales promotion in
promoting their products with the aim of creating
public awareness through Bill boards, Gifts, Television
and even Radio advertisement.
2) The effectiveness of MTN Nigeria’s sales promotion is
based on the quality of their products and prevailing
market situation. Customer patronage is based on the
quality of the product and the enjoyment derived.
3) In order to achieve increase in sales volume MTN
Nigeria promotes their products through media such as
exhibition, samples, coupons and gifts more than the
other sales promotional media.
4) Sales promotion has significantly improved the profit
performance of MTN Nigeria.
111
5) The management of MTN Nigeria has been totally
committed to the pursuit of sales promotion.
6) Customers perceive the image of the company as
being fair and that the quality of their product is
moderate.
7) Customers advise the company to spend more on sales
promotion and that any company that adopts sales
promotion stands the chances of survival and growth.
8) The management of MTN Nigeria strongly agrees that
there is a direct relationship between sales promotion
and sales volume in the company.
9) MTN Nigeria strongly agrees that sales promotion
affects and influence the buying behaviour and
decision of customers.
10) Sales promotion has a significant effect and boost in
relation to sales volume of MTN Nigeria.
From the response derived through the questionnaires, it
can be summarized that a product cannot sell itself, even a

product that is designed to perfectly meet buyers desires and
specifications which is offered at a very affordable price will not
sell successfully unless its been promoted and its benefits are
provided. With this, sales promotion has been an effective tool
for expanding sales volume and hence profitability.
5.2 CONCLUSION
What this research has gathered so far has proved
beyond reasonable doubt that company’s sales volume is being
affected and boosted by sales promotion and it is one of the
promotional mix that can be utilized as a major strategy in
sales promotion.
Though sales promotion is not an entirely new marketing
phenomenon in this part of the world, it has large economic
force, a survival strategy in modern industrial society, however,
sales promotion should be solely relied upon as a stimulant of
sales, it should be effectively combined with other components
of marketing mix elements for it to be successfully
113
implemented.
In essence, sales promotion is a tool for expanding sales
which in turn expands the turn over and profit margin. An
effective sale promotion is a profit booster via sales expansion.
5.3 RECOMMENDATION
Sales promotion has been seen as one of the most
important basic methods of promoting consumer goods. Many
people, all over the world has been inspired and moved to
become customers of the company’s products. It should also
be taken into consideration that for selling of customer type of
goods, sales promotion is the only appropriate and efficient
way.
It is therefore recommended that, for any organization to
survive in this hard economic period and for it to maximize
profit, there is need for such organization to increase its sales
promotional activities and efforts in effect to achieve a large
market share as compared to that of its counterparts.

For further study, it is recommended that sales
promotion’s effect alone should not be considered, since it is
part of the promotional mix element. Thus, it should be used
along with publicity, personal selling and most importantly
advertising which cannot be done away with.
Since all other factors might have an effect on the sales
volume of the company then each one of them should be
analyzed, so that the final analysis and conclusion would be
based on all promotional activities of the company.
115
BIBLIOGRAPHY
1. Adeleye, A.S (1997): Marketing –Principle and Practice,
Malthouse Press Ikeja Lagos State.
2. Akibu, A. O (1992): Advertising Strategies , Adeyeri Printing
Press, Oyo , Oyo State.
3. Druker, P.F (1974) Management Task, Responsibility,
Practice, New York Harper and Row
4. Jefkin, F. (1992): Modern Marketing 2nd Ed., Business
HandBook. Pitman Publishing
London.
5. Kelly F.J and Lazer W (1968): Managerial Marketing
Perspective and View points,
Richard D. Iriom Inc., Homewood
Illinois, 2nd Edition
6. Kotler, P. (1980) Marketing Management, New York Practice
Hall Inc.
7. Kotler, P (2000): Marketing Management, Milllenium Edition,
India Practice- Hall Private Limited .

8. Osula Introduction to Research Methodology.
9. Osubiyi Bidemi : Advertising Principle and Practice, Sholak
Printing Press P.O. Box 315,
Toronto, Ogun State.
10. Stanton, W.J (1981): Fundamentals of Marking London,
McGraw-Hill International Book
Company.
11. Stanton, W.J (1982): Fundamentals of Marketing 3rd Edition,
MacGraw –Hill International Book
Company.
117
APPENDIX 1
QUESTIONNAIRE ON THE IMPACT OF SALES PROMOTION
ON COMPANY’S SALES VOLUME AND PROFIT MARGIN
Department of Business Administration,
Faculty of B.S.S
University of Ilorin,
P.M.B 1515.
Ilorin, Kwara State.
Dear Respondent.
I am a MBA student of the department of Business
Administration, University of Ilorin. I am conducting a research
in partial fulfillment of the requirement for the award of Master
degree in Business Administration.
The questionnaire is designed towards obtaining vital
information on sales promotion: an effective marketing
strategy to boost company’s sales volume and it is explicitly
designed for the employees, staff and customers of the
product(s) of MTN Nigeria Communications Limited.
Your contributions and co-operation in answering the
questions will be highly appreciated. And you are assured that
all the information provided will be confidentially treated and it
is only for academic purpose.
Thanks for your co-operation
IKUPITI OMOLADE ABIDEMI
SECTION A
(1) Sex
Male ( ) (b) Female ( )
(2) Which age bracket do you fail into?
(a) 20-30 years ( ) (b) 31-40 years ( )
(c) 41-50 years ( ) (d) 51 and above ( )
(3) Marital status
(a) Single ( ) (b) Married ( )
(4) Educational qualification
(a) WASC/GRADE II ( ) (b) NCE/OND ( )
(c) HND/BSC ( (d) other specify ( )
(5) What is your income per month?
(a) Below N 10,000 ( ) (b) N11,000 – N20,000 ( )
(c) N21,000 N30,000 ( ) (d) N31 and above ( )
TO BE FILLED BY THE EMPLOYEES OF THE COMPANY
(6) How long have you been a staff of the company?
(a) About a year ( ) (b) 1-3 years ( )
(c) 4 -6 years ( ) (d) Over 6 years ( )
(7) Is there any annual operating plan or budget for sales
119
promotion?
(a) Yes ( ) (b) No ( )
(8) What sales promotional medium does the company use?
(a) Coupons ( ) (b) No ( ) (c) Gifts ( ) (d) Samples ( )
(e) Film and trade shows/fairs ( ) (f) price –offs ( )
(9) What has been the boost and effect of sales promotion in
relation to the company’s sales volume?
(a) Significant effect ( ) (b) Little effect ( ) (c) No effect
( )
(10) How well does a customer respond to other promotional
tools such as radio bill board and television?
(a) Very well ( ) (b) Fairly ( ) (c) No effect ( )
(11) Do you believe that sales promotion affects and influence
the buying behaviour and design of customer?
(a) Strongly Agree ( ) (b) Agree ( )
(c) Strongly Disagree ( ) (d) Disagree ( ) (e) Undecided
( )
(12) To what extent do you feel the management has been

committed to the pursuit of sales promotion?
(a) Total commitment ( ) (b) Partial commitment ( )
(c) Not Supported ( )
(13) Do you agree that there is a direct relationship between
sales promotion and sales volume in your company?
(a) Strongly Agree ( ) (b) Agree ( )
(c) Strongly Disagree ( ) (d) Disagree ( ) (e) Undecided
( )
(14) When last was sales promotion organized by the
company?
(a) This year ( ) (b) Last year ( ) (c) Long ago ( )
(d) No idea ( )
(15) Is sales promotion effective to customers?
(a) Yes ( ) (b) No ( )
SECTION D
TO BE FILLED BY THE CUSTOMERS
(16) How long have you been using MTN product(s)?
(a) Below 2 years ( ) (b) 3 - 8years ( )
121
(17) Have you ever been moved and inspired to buy a product
through sales promotion? (a) Yes ( ) (b) No ( )
(18) Did you switch to buying the product of MTN?
(a) Yes ( ) (b) No ( )
(19) As an existing customer would you advice the company to
spend more on sales promotion?
(a) Yes ( ) (b) No ( )
(20) Do you think any company that adopts sales promotion
stand any chance to survive and grow?
(a) Yes ( ) (b) No ( )
(21) What do you say about the promotional activities of MTN?
(a) Better ( ) (b) Poorer ( ) (c) Cannot compare ( )
(22) Has your contact with any sales promotional programme
had any effect on your patronizing attitude?
(a) Yes ( ) (b) No ( )
(23) If your answer to question number 22 is yes, how?
(a) Increase in patronize (b) Decrease in patronizing
(24) What do you think about the quality of the product of

MTN? (a) High ( ) (b) Moderate ( ) (c) Low ( )
(25) What do you say of the image of MTN?
(a) Good ( ) (b) Fair ( ) (c) Bad ( )
APPENDIX II
HYPOTHESIS 1
Ho: Sales promotion affects and influences customers
buying behaviour and decision.
H1: Sales promotion does not affect and influence
customers buying behaviour and decision.
TABLE 4.21
WHETHER SALES PROMOTION AFFECTS AND
INFLUENCES CUSTOMERS BUYING DECISION AND
BEHAVIOUR
Customers Staffs Total Percentage %
123
Strongly Agree 20 10 30 60
Agree 5 5 10 20
Strongly Disagree 1 1 2 4
Disagree 2 3 5 10
Undecided 2 1 3 6
Total 30 20 50 100
The Chi-square test statistic is given by the formular:
X2 = ( Oj – ej)
X2 = ( Oj – ej)2 ( O2 – e2)2
e2
= ∑ ( Oj – ej)2
ej
when Oj = Observed frequencies and,
Ej = Expected Frequencies
CALCULATION OF EXPECTED FREQUENCIES
In order to calculate the expected frequencies the
following relation was used.

∑F - Responses of the row x Responses of the Column
CUSTOMERS
Strongly Agree ∑F = 30x30 = 18
50
Agree - ∑F = 10x30 =16
50
Strongly Disagree- ∑F = 2x30 =1.2
50
Disagree - ∑F = 5x30 =3
50
Undecided ∑F = 3x30 =1.8
50
STAFFS
1. Strongly Agree - ∑F = 30x20 =12
50
2. Agree - ∑F = 10x20 =4
50
3. Strongly Disagree ∑F = 2x20 =0.8
50
125
4. Disagree - ∑F = 5x20 =2
50
5. Undecided - ∑F = 3x20 =1.92
50
The observed frequencies were further analyzed

X2 = (20- 18)2 + (10 – 12)2 +(5-6)2 + n (5-4)2 + (1-1.2)2 + (1-6.8)2 + (2-
3)2
18 12 6 4 1.2 0.8 3
+ (3-2)2 + (2-1.8)2 (1-1.92)2 =
2 1.8 1.9
X2 = 0.22 + 0.33 + 0.17 + 0.25 + 0.03 + 0.05 + 0.33 +0.5 +

0.02+0.
44 = 2.34. X2 = 2.34.
HYPOTHESIS 2
Ho: Sales promotion boosts and affects company’s sales

volume.
H1: Sales promotion does not boost and affect company’s sales
volume.
TABLE 4.22

COMPANY’S SALES VOLUME
Customer Staffs Total Percentage %
Significant effect 12 22 34 68
Little effect 6 7 13 26
No effect 2 1 3 6
Total 20 30 50 100
The Chi-square test statistics formular is used and the
expected frequencies were calculated with the relation below:
∑F - Responses of the row x Responses of the Column
CALCULATION OF EXPECTED FREQUENCIES CUSTOMERS
1. Significant Effect = 34x30 = 20.4
50
2. Little Effect – ∑F = 13x30 =7.8
50
3. No Effect - ∑F = 3x30 =1.8
50
STAFFS
1. Significant Effect- ∑F = 34x20 =13.6
127
50
2. Little Effect - ∑F = 13x20 =5.2
50
3. No effect - ∑F = 3x20 =1.2
50
Since X2 = (Oj – ej)
X2 (Oj – ej)2 + (Oj – ej)2 + (Oj – ej)2
ej e2 ej
= ∑ (Oj – ej)2
ej
129

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What are the main components of sales promotion?

What are the main components of sales promotion?

What factors influence the emphasis placed on each element in the promotional mix?

What factors influence the emphasis placed on each element in the promotional mix?

CHAPTER ONE

One of the most important and bewildering

promotional tools of modern marketing management is

sales promotion. Sales promotion is bewildering because

of its typically tagged effects and also the difficulty of

isolating its effect from other elements in the marketing

Moreover, sales promotion as a subject matter could

be referred to as a “catch all” for those short term

marketing activities which act as an incentive to stimulate

quick buyers action such a coupons, sweep take, context,

premium, free samples, trading stamp and the like.

Sales promotion is, however, a sub-section of the

total promotional and communication mix. The term

promotion in its broadest sense means to move forward.

However, in the business field; it is referred to as the

publicity and sales promotion. The blend of these

promotional activities is referred to as the promotion mix

or tools. The emphasis that is placed on each element in

the promotional mix considering sales promotion varies

according to the product types, product characteristics and

other variable factors including the company’s resource

product within the firms competitive strength and

weakness, managerial style and philosophy.

While the other communication elements with which

promotion must be coordinated are the product itself,

price of the product and the choice of distribution channel.

The components of the product communication include the

brand name, product design, package colour, product size

and shape, trademark, label, task, and so on. These

product physical features provide the consumers with

subtle messages about the total product offering, the fact

a great deal of information to the prospective buyer.

Without some sense of functional relationship

between sales and promotional expenditure, it becomes

very difficult to know how much to spend on sales

promotion due to the fact that the potential value is being

testified to by Nigerian companies which engages in it.

Companies in this circumstance tend to resort to simple

satisfactorily in practice but are not likely to represent an

optional level. In the case of MTN Nigeria sales

promotional activities are being carried out at least twice a

Furthermore, sales promotion expenditures are

growing rapidly in other nations, both socialist and

capitalist economy of the world. Although marketers often

marketing functions and activities, those who are

knowledgeable recognizes the significance of sales

promotion in today’s business world and environment.

How can a new product conceivably achieve success

without the process of sales promotion? What method(s)

could possibly compare with the enormous impact made

through the sales promotional media on a product or

service? It is unlikely that without the power of sales

promotion a new product could reach its potential market

that their interest be drawn to the good offering provided

and developed and that how in the world of business

activities and competition could an old product continue to