Mekdes, Lidya, Rediet Proposal

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Royal College

Department Of Marketing Management


A Research Proposal on assessment of sales promotion
practices: the case Belayab Motors P.L.C

A Research Proposal Submitted to Royal College Piassa


Campus, Department of Marketing Management, for
Partial Fulfillment on the requirement for the Award of
Bachelor of Arts in Marketing Management.
Prepared By:
Name ID. No.
Mekdes Debebe……………………….. (ID/1063/12)
Lidya Shewakena ……………………..(ID/0901/12)
Rediet Loba…………………………… (ID/0978/12)

Under The Guidance Of


Instructor: Admasu Tsegaye

June, 2023
Royal College Piassa Campus
Addis Ababa, Ethiopia.

[Type text] Page 0


Attention,
1. Insert Abstract, a brief summary on the intent of the proposal as per
requirements stated on the guideline,
2. Enclosure for Acronyms / Abbreviations and Definitions of key terms,
3. Update the table of contents,
4. Begin background of the study with Professional/ Working definition of
the main subject of the study and indicate precise descriptions on
features, components, benefits of the subject along with performance
standards and measurements in particular relevance to contexts that
the study planned to explore,
5. Literatural reviews need to be from recent references plus all citied
references should be listed under bibliography,
6. Elements of the research methodology are required to be measurable
and sufficiently justified,
7. Budget and schedule sections should follow the methodology,
8. Complete list of references used must be included,
9. Appendix needs to be enclosed.
N.B.:
 Refer to the comment box extensions across the whole document
forwarded.
 Adhere to terms of the proposal guideline enclosed.

Assessment of the sales promotion practice of Belyab Motors plc Page 1


TABLE OF CONTENTS
TABLE OF CONTENTS .......................................................................................................... i

INTRODUCTION ....................................................................................................................1

1.1. Background of the Study ..............................................................................................1

1.2. Statement of the Problem ..............................................................................................4

1.3. Basic Research Question...............................................................................................5

1.4. Objectives of the Study .................................................................................................6

1.4.1. General objective ...................................................................................................6

1.4.2. Specific objectives the Study .................................................................................6

1.5. Significance of the Study ..............................................................................................6

1.6. Delimitation of the Study ..............................................................................................6

1.7. Organization of the Study .............................................................................................6

CHAPTER TWO ......................................................................................................................8

REVIEW OF RELATED LITERATURES ............................................................................8

2.1. Overview of Sales Promotion .......................................................................................8

2.1.1. Meaning and Definition of Sales Promotion ..........................................................8

2.1.2. The Nature of Sales Promotion ..............................................................................9

2.1.3. Advantage of Sales Promotion ............................................................................. 10

2.1.4. Benefits of Sales Promotion ................................................................................. 10

2.1.5. Role of Sales Promotion ...................................................................................... 11

2.2. Challenges of Sales Promotion ................................................................................... 12

2.2.1. Need and Problem Identification.......................................................................... 13

2.2.2. Strategies for the Success of Sales Promotion ...................................................... 15

2.2.3. Types of Sales Promotion .................................................................................... 16

2.3. Major Tools of Sales Promotion ................................................................................. 17

Assessment of the sales promotion practice of Belyab Motors plc Page i


2.3.1. Installment Selling ............................................................................................... 18

2.3.2. Retail Selling ....................................................................................................... 19

CHAPTER THREE ................................................................................................................ 21

RESEARCH DESIGN AND METHODOLOGY .................................................................. 21

3.1. Research Design ......................................................................................................... 21

3.2. Population and Sampling Techniques ......................................................................... 21

3.3. Methods of Data Collection ........................................................................................ 21

3.4. Methods of Data Analysis ........................................................................................... 21

3.5. Limitation of the Study ................................................. Error! Bookmark not defined.

Bibliography ............................................................................................................................ 22

BUDGETARY REQUIREMENT AND TIME SCHEDULE ............................................... 22

1. Budgetary requirement ................................................................................................... 25

2. Time schedule ................................................................................................................ 25

Assessment of the sales promotion practice of Belyab Motors plc Page ii


CHAPTER ONE
INTRODUCTION

1.1. Background of the Study


Promotion has been defined as the coordination of all sellers initiated efforts to setup channels
of information and persuasion in order to sell goods and services or promote ideas. The basic
tools used to accomplish an Organization communication objectives are often referred to as
promotional mix. Promotional mix includes four elements: - Advertising, Sales promotion,
Publicity, Public relation and Personal selling. (Belch & Belch, 2005).

According to Oancea (2014) traditional components of the marketing mix- the product, price,
placement (distribution) are no longer as efficiently as they were in the past. When the market
passed through a slow period of development, these proved to be particularly useful in the
workof any organization.

Peattie and Peattie (1994) stated that marketing activities usually specific to time period, place or
customers group, which encourage a direct response from consumer or marketing intermediaries,
through the offer of additional benefits. One or more of these marketing activities is to use sales
promotion tools and techniques (such as; price discount, sampling, coupon, rebate, point
ofpurchase, display and premium) which directly influence individual to give quick decision and
purchase process (Shamout, 2016).The shift in power of marketers to consumers has forced
marketers to ensure that their products are unique and of high quality to give customer a reason
to purchase their products and remain loyal to them (Shrestha, 2015). Meanwhile the provision
of high competency between retailers, wholesalers and producers led to excessive promotion
from marketer point of view that has direct influence on consumer buying behavior to get the
core competitive advantage for companies (Shamout, 2016).

In the past decade, when the number of industry is few, they follow a production theory, but
not in the current challenging circumstance. Today the elements of the traditional marketing mix
have lost their value as "weapons" of competitive. Thus, many ways to obtain a product can be
copied by competitors in a very short period of time. The experiences that an organization adds
value on the products in a traditional way are replaced today with the design and manufacture

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assisted of computer or robotics. Also, any form of distribution can be easily reproduced in
competition (Oancea, 2014). So they have to look beyond these strategies, like using sales
promotion as tools of gaining competitive advantage and stay in the business environment.

In these wired competition among brewery industry, a study how sales promotion influences the
buying behavior of the consumer is obviously pertinent and important. Previously as noted by
(Elboda, 2017) the result of globalization and stiff market competition among producers have
become more aggressive in their marketing approach. This sharp departure from the past when
seller offered goods and service to consumers with little regards for quality assurance and
satisfaction. Thus in order to compete successfully in the industry in this situation they have to
develop critical promotion strategies, the aim of such strategies is not only to beat the
competition and retain the customers , it also tigers the new customers by offering packages
(Aderemi,2003).

The present study therefore undertakes a comprehensive analytical study on how does sales
promotion influence consumer buying behavior case of Walia Beer market. According to
Ngolanya et al. (2006), sales promotion is an interesting marketing struggle to influence the
buying behavior of consumers as the benefits in terms of getting: cash, coupons,
discounts, rebates and free sample are highly influential on the buying decision of consumers. It
has projected that providing samples to test quality, features, and usage information have better
impacts on customers’ minds.

Vitor et al. (2013) inference, effective sales promotion increases the basic value of a product for
a limited time and directly stimulates consumer purchasing. One of the advantages of promotions
is that it can stimulate consumers to think and evaluate brands and purchase possibilities. This
phenomenon shows that, some of the consumers are easily tempted when they see the world of
sales promotion. Other than price reductions, coupon or rebate and other promotional tools like
free samples, bonus pack and buy one get one free were found to influence consumers to buy
more than what they expect. According to Darko (2012), consumer buying behavior is the
process by which the individual search for, selects, purchase, use and dispose of goods and
services, in satisfaction of their needs and wants. The consumers’ behavior has a direct effect on
the success of the firm; therefore the firm must ensure that they have to create a marketing mix
that satisfies consumers.

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Again on the same report Darko (2012) insight that, the consumer mostly goes through about
five steps in taking one purchase decision. These include; problem recognition, information
search, Evaluating of alternatives, purchase decisions, purchase and post purchase evaluation.
Actual purchasing is only one stage of the process and not all decision processes lead to a
purchase. Also not all consumer decisions will include all the stages, but will depend on the
degree of complexityand risk involved. A sales promotion stimulates customer purchases and the
efficiency of distributors through marketing activities excluding advertising, public relations and
so on. Thus this study aims to examine the influence of sales promotion on consumer buying
behavior case of Walia Beer.

Sales promotion is often used to provide a short sharp shock to sale. In sense it may be regard
as a short-term tactical device. The sale promotion boosts sales during the promotion period
because of the incentive effect. This is followed by a small fall in sales to below normal level
because some consumer will has stock up on the product during the promotion (Jobber,
2001). According to Kumar and Mittal (2002), sales promotion is an action which increases at
the volume of sales. In broad sense, the term ‘sales promotion ‘refers to all activities of
personal selling, advertising and promotion led to the enhancement of sales. Moreover,
according to (Baker;1990) the role of sales promotion is to gain customer and convert them to
regular users in particularly for or improved products to widen the distribution of a product
and reduce sales peaks through and maintain economic production level that the effect
of a price increase, also to create new interest in established of a product and improved
result from in store display.

Promotion has been defined as the condition of all seller initiated efforts to set
channels information and in order to sell goods and services and promote idea. Basic tools
used to accomplish organization communication objectives and often referred to as
promotion mix. Promotional mix includes for elements advertising, sales promotion, and
publicity: public relation and personal selling. Advertising is paid non-personal communication
about an organization and its products that is transmitted to a target audience magazines direct
mail and mass transit vehicles of outdoor display (Belch; 2003).

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1.2. Background of the organization

Belayab Motors Plc was established in 2006 with a registered capital of 5 million USD to
import and distribute light, medium, and heavy-duty trucks and industrial equipment. Since
then partnering with the Hong Kong SAR and mainland China based HuaJia Tianjin
international Co.Ltd Belayab has become one of the first logistics service providers in Ethiopia.
The inauguration of an assembly plant in May 2012. At Adama city demonstrates the
company’s remarkable growth. Since then, it has been engaged in assembly and supply of
automobiles, light-duty vehicles (pick-ups, station wagons, and trucks), motorcycles, and hand
–driven tractors.

Belayab Motors Plc has over 399 employees including local manpower and engineer team from
China to give the local employees basic technical training. Belayab Motors Plc is provide
products like automobiles and their parts improved from China that assembled at major
and the company give after sale service station with full of recourse Previously the company
works only in Addis Ababa and Adama but now on progress to open dealer’s office on
Hawassa, Dire Adwa and Bihar Dar. The company offers the cars and their spare parts with
fair price; in addition there is a discount on the sales the Ethiopian holiday time. Among five
promotion mixes the company is using four of them which are advertising, personal selling,
sales promotion and public relation.
1.3. Statement of the Problem
Sales promotion has become an important tool in developing products symbolization,
which is important in increasing the value of the product that consumers use is self-expression.
Many create awareness, interest and adoption of the product because it has provided an
opportunity for evaluation and trial and finally confirmation of brand loyalty (Mishra,
2004). Sales promotion should be included in a company’s promotion plan, along with
advertising and personal selling this means setting sale promotion objective and strategies
determining a sales promotion budget and selecting appropriate sales promotion techniques
(Michael, 2001). Sales promotion process involves on elaborate plan to assure that the money
spent on promotion worth the effort and the subsequent result. The sender in the company that
decides to create sales in the target market or any other audience to which the sales
promotion message is diverted(Benue, 2002).

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With the advent of Internet technology customers today have access to more information and
have significant bargaining power before making any purchasing decision. As a result,
marketers today face immense challenge in meeting the ever rising expectation of the
customers. Sales promotion is one of the key factors that marketers have used in the current to
meet the changing needs of the customer and the market (Shrestha, 2015). Because Sales
promotion is one of those incentives which has influenced customer to make instant buying
decision than to wait later (Kotler, 2003).

Cognizant of this, Belayab Motors Plc use only three techniques of sales promotion,
Rebate: - under rebate products are offered at some reduced price in order to clear the
excess stock. Discount: - In this method customers are offered products on less than
the listed price. Coupons: - coupon is a kind of certificate telling that the product mentioned
there in can be obtained at special at special discount. It means that if a customer has a
coupon of some product he will get the discount mentioned therein whenever he buys it.
Possession of a coupon motivates the consumer to buy the product, even when he has no need
of it. Such coupons are published news and magazines. The company distributes coupons
among its shareholders; sellers collect the coupons from the customer and get the payment from
the company that issued the same.

Based on the preliminary research conducted by the student researchers, it was determined that
the company's sales promotion practices had the following problems: i.e. They did not function
as effectively as a tool for producing products as was anticipated, the sales promotion practice
of the company is not contribute as expected as an important tool in developing products, It is
not persuades the buyers of the competitor's product to shift to the product of the company.
Such issues don't encourage consumers to switch from a competitor's goods to the company's
and they don't promote brand loyalty. Despite of the above row facts, previous researches has
not made by the company and other researchers to determine the reason behind for such sales
promotion problems. Therefore, the researcher intended to assess the sales promotion practice
of Belyab Motors plc and recommend the best possible practices to strength their strategy.

1.4. Research Questions

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The study will try to answer the following basic research questions;
1) What are the challenges of sales promotion practice of Belayab Motors PLC?
2) What is the role of sales promotion on the increasing the sales volume of Belayab
Motors PLC?
3) How Belayab Motors PLC use sales promotion to its target market?
4) What criteria does the Belayab Motors PLC use to select the sales promotion
techniques?
1.5. Objectives of the Study
1.1.1. General Objective
The general objective of the study is to assess the sales promotion practice of the Belayab
Motors Plc.
1.1.2. Specific Objectives the Study
1) To assess the challenges of sales promotion practice of the Belayab Motors PLC.
2) To assess the role of sales promotion on the increasing the sales value of Belayab
Motors PLC.
3) How Belayab Motors PLC use sales promotion to its target market.
4) To identify criteria that Belayab Motors PLC use to select the sales promotion
techniques.
1.6. Significance of the Study
Specifically, this study will be useful to the student researchers in comparing theoretical aspects
to real-world marketing tactics. It will also be valuable for other researchers who are interested in
conducting similar study. Furthermore, the analysis will be useful to Belayab Motors Plc as an
input for decision making.
1.7. Scope of the Study
This study is limited to Belayab Motors Plc's sales promotion practices. Additionally, the
investigation will be limited to the head office in Addis Ababa surrounding Kality and one
branch in Saris. The reason behind to select Addis Ababa as study location is the majority of
vehicle consumers are reside in Addis Ababa and the companies vehicle assembly and
showrooms found herein Addis.

1.8. Limitation of the Study

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The study also subject to several shortcomings, when conducting the study the researchers limited
to the scope only influence of sales promotion practices, thus the researchers limit themself on
one aspect of five promotional mix elements and the result may not show the other promotional
influence on Belayab Motors Plc. Not only this one, will the study focus only on Belayab Motors
Plc. in Addis Ababa city among the others vehicle assembly company’s and thus the results from
this case might not be generalized to other company.

It is a predictable fact that it is not possible to conduct a study without any limitation and
challenges. In any study, the success or failure depend largely on methods or ways of collecting
data and how intelligently one is able to present and analyzed these data collected. Another
problem encountered was lack of adequate recent studies and organized data especially empirical
literatures, both qualitative and quantitative data regarding the study variables, and less access to
some information which would be useful to lay a more relevant factual base for the study.
Finally, the student researchers face a challenge of undetermined size of population and
adequacy of sample size and its representativeness.
1.1. Organization of the Study
This study has five chapters. Chapter one of the study deals with the introduction, objective,
significance of the study and statements of the problem; while chapter two deals with the
literature review. Chapter three describes the methodology used for the achievement of the
results of this research. Chapter four briefly discusses the results of the research and a
descriptive presentation, analysis, and interpretation of the findings. Finally, chapter five
concludes based on the findings and give some recommendations, which are thought to be
important for the success of the Belyab Motors Plc.

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CHAPTER TWO
REVIEW OF RELATED LITERATURES
2.1. Overview of Sales Promotion
2.1.1. Meaning and Definition of Sales Promotion
Sales promotion covers every inch of the field of business and leaves no stone unturned that
hides a customer. The manufacturer who introduces a new line of goods will constantly
use the advertising mediums that make general publicity profitable and his instructions to
salesmen that dealers be notified of the advertising in the magazine or local papers will
stimulate the retailers’ interest and make the initial order easier to secure. The retailer belongs to
the "show me" class. He has store space limitations and a moderate bank account and
neither of these will allow him to indulge in indiscriminate buying on promises made by
the(Bank, 2004:38).

Sales promotion is a well-known method of conveying selling messages to numerous


prospective customers. It has become increasingly important to business enterprises both large
and small. The seller’s goal is to get enough relevant market data to development accurate
profile of buyers to find the common groups for communications. The objective advertising was
traditionally stated in terms of direct sales. Now, it is to billboard advertising as having
communication objective that seeks to inform persuade and remind potential customers of the
worth of the product (Kotler; 2005:468).

Advertising along specialized lines, but he is willing to have the manufacturer shoulder this part
of the burden. Leave the retailer to his own devices and he will not order until demand forces
him and while demand is reaching the maximum sales are being lost because the goods are not
carried in stock. This constitutes a strong argument in favor of advertising plus salesman-
ship as they exemplify the two paths of least resistance over which merchandise travels from
the manufacturer to the consumer. The advocates of salesmanship alone constitute such a small
class that they are hardly worth considering (Milner; 2004:38).

They are in the main, old fogies who have established and successfully conducted businesses of
magnitude. Sometimes they are descendants of the old, staid, and conservative tradesmen. Their
motto is "Remove not the landmarks thy fathers have set." The "salesmanship only" house
despises advertising and holds its customers by sheer force of respectability and the name of the

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house. It never advances but is retrograding as the current of advertising plus salesmanship
washes it slowly towards the beach of oblivion (Kooper; 2004:38).

2.1.2. The Nature of Sales Promotion

According to Milner, (2004, 399) sales promotion is the management of the overall selling
effort in an organization in order to increase sales while creating awareness at the same time. So
let us look at some aspect of personal selling to see what sales manager manage. The
term marketing mix describe the combination of four ingredient that constitute the core of
company’s marketing system when these four product price, distribution and promotion are
effective blended they form marketing program that provide want satisfying good service to
the company’s market.

During the early stage in evaluation of marketing management sales promotion, narrow in scope
the major activity where recruiting and selecting sales force and then training
supervising and motivating and many sales exaction are responsible for strategic planning
forecasting budget territory design and sales cost analysis as well as more traditional activities
sales manager must see that all of these objectives. These objectives are carried over from
one period’s promotional programs to the next (Couper; 2003:356)

A marketing manager should have authority over the advertising department, but where he has it
not, he should learn to avail himself of it and work in harmony with it. Tact does it. A
sales manager should be broad in his views, liberal towards the views of others, electric in
policy, and ready to accept and utilize ideas from all sources. His effort should be directed
toward the discovery of the best method of selling his merchandise. He should work in
harmony with his employer and make due allowance for his probable and give due
respect to his employers' opinions, even when opposed to his own. He must secure co-
operation and not invite opposition from his fellow employees or subordinates. He must work
and keep everlastingly at it. No hard and fast rule can be formulated, covering all of the duties
of a sales manager (Belch; 2004: 392).

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2.1.3. Advantage of Sales Promotion
Sales promotion is very essential requisites to the conduct of business from the highest
to the lowest, from the general manufacturer to the retail this involves upon the one
hand millions of dollars' worth of white space filled by the big fellow, and hundreds of
high salaried traveling salesmen employed under the direction of a still higher salaried
marketing manager. In its lowest form it comprehends a $5 a week clerk behind the counter in
the store on the side street, and the modesttwoinch advertisement in the daily or weekly
country paper. The principle only remains unchanged and the results are proportionately the
same. Advertising alone may get the attention of the customer.
The retailer must secure this attention; otherwise his goods remain upon the shelves. That the
strongest advertising medium between the manufacturer and the consumer cannot produce
maximum returns outside of the mail order business has been proven so often as to
require no further comment (Belch; 2004: 389).

According to Kooper, (2004: 391) some of the advantages of sales promotion are: Increase
sales: sales promotion allows the producer to increase sales at the same time create
awareness of the product in the minds of customers and prospects. Ability to Reach Specific
Groups: because some products appeal to only small market segments, it is not feasible to
engage in advertising and /or promotions to reach them. if the firm does not have the
financial capabilities to engage in promotional expenditures, the best way to
communicate to these groups is through sales promotion. Lead Generation: information
about technological innovations, medical breakthrough, and the like results almost immediately
in a multitude of inquiries. These inquiries may give the firm some quality sales leads. Image
Building: effective public relation helps to develop a positive image for the organization. A
strong image in on insurance against later misfortunes.

2.1.4. Benefits of Sales Promotion


According to Milner, (2004: 158) sales promotion is an indispensable tool in today’s
management of both public and private sector organizations. With the tremendous growth of
business and commerce, the need for public relation has assumed a new meaning. In every field,
is it a public, a private sector organization, an educational institution or a government

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department there is a need for public relations. Indeed it is an essential service to ever body that
has ideas, products, services, or a cause to promote.

The modern management of any business has to enlist the participation and support of its
workers to realize its objectives, winning confidence and trust of its shareholders, clients and
the public at large, thereby fulfilling its social obligations. Therefore, in the modern
management sales promotion is the total communication activity of the organization to achieve
its planned objectives (Kumar, 2001; 213).

An organization’s internal image and the moral of the work force greatly depend on the flow of
communication. Organization which has successfully launched a program for the
flow of information through internal communication has been branded as modern and
sympathetic. On the other hand organizations which refuse to communicate with their
internal constituents and take them granted, fail to effectively handle the flow of internal
communication, and on many occasions are forced to face undesirable consequences
(Jobber,2001;165). It is today accepted as a management function in the formulation of policy
and decision making. It is the way in which an organization makes and keeps contact with
those who affect its life and growth. The skillful management of sales promotion
reinforces the growth and developmental process of an organization. It is in this context
that more and more attention is being given to effective use and application of sales
promotion for the growth of an organization (Kummar and Mittal, 2002;234).

2.1.5. Role of Sales Promotion


The emergence of sales promotion as a discipline of management gathered momentum ever
since there was awareness in business about bulk selling. The importance of communication
in establishing rapport with various sections of the people within and outside the
organization has been long acknowledged before the business organizations came into
existence. Today business cannot be viewed as an activity in isolation. It is part and parcel of
our life irrespective of what the profession, vocation, and avocation may be (Black, 2005: 46). It
is the sub-system of the state, nation, and the global activity. Therefore, it has to interact
constantly with various organs of our society in order to fulfill its business objectives. It is

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equally important for business to be concerned about what is happening around it in social,
political, and technological fronts (Kooper, 2004; 201)

The territorial agent is a salesman of ability and is usually on a commission basis. He


should possess many of the qualities that enter into the make-up of the sales manager
who has a large number of salaried traveling men under him. Indeed, he should possess
all of these qualities, because his own commissions are entirely dependent upon the
money-making qualities of the selling agents under him. So much for generalities now, to
review briefly some of the things that go to make the successful commission man whose
work brings him in direct contact with the consumer (Belch; 2004: 393).

According to Banik, (2004: 37) in rapidly changing business markets, the most
competitive business are increasingly proving to be those which are responsive to the rising
expectation of the stake holders in the communities in which they do business. In this
environment it is useless for a company to claim being a "good corporate citizen" unless it is
prepared to accept the needs of the total corporate social responsibility.

Social responsibility must be built in to the management structure and operation of the
company. to adopt an approach towards corporate social responsibility requires a major effort
especially on the part of top managers who not only have to take in inculcating social
responsibility into daily work routines, but also to make sure they are seen doing so. A
business reputation as a good corporate citizen has to be the responsibility of every employee
(Krishna, et al, 2007; 345).

2.2. Challenges of Sales Promotion


According to Banik, (2004:39) the main challenges faced by sales promotion is not
having established trade, established trade is the best from the time-saving stand- point. When a
salesman has the confidence of customers who have been dealing with him for a number of
years his time is largely limited to a call, a "how-do-you-do, “an order or a refusal. If he gets
the order he knows that his customer needs the goods. If he gets a refusal he knows that it would
be time wasted for him to stop and argue with the buyer who already knows his stock and so the
"get up and go" salesman has plenty of time in which he may make new customers. One of the
most important factors to success lies in the securing of names of those to be approached.

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Knowledge of the people themselves, their habits, customs, and surroundings will also help the
salesman to be at ease and to interest those approached through the sheer force of personality
that appeals to the man himself, by using information that is of no interest to him.

Intelligence and common school education are necessary. His knowledge of the merchandise he
represents must be comprehensive enough to permit him to talk intelligently, bring out the
strong points, and hide the weak points. A thorough technical knowledge of the goods is not
demanded, but an ability to exploit the merchandise and convince the customer that the
investment will be a safe one is desirable. Lack of accommodations frequently spoils "trade. It is
much pleasanter to do one's shopping in a store where wide aisles and spacious resting rooms
prevail, and in spite of the goods advertised, in spite of special inducements, and in spite of
everything the commodious store wins out over its more crowded competitor. With convenience
the advertising manager can be abetted. Without it, he loses a certain amount of his selling force,
not through any fault of his own, but through the failure of a short-sighted management. The
book-keeping and delivery departments are factors in success or failure (Couper; 2003: 381).

Here again is demonstrated the ability or the lack of ability of employees. Your well
conducted book-keeping department makes out its bills promptly and accurately. Some
people are very sensitive upon the subject of receiving bills. In most cases people of good
financial standing desire these bills upon a certain day. In all cases they desire accurate bills.
Let the book-keeper or his assistant fail to observe these requirements, and then the store in
question falls in the estimation of its customer (Baker, 1990; 165).
2.2.1. Need and Problem Identification

Most salespeople have a range of product to sell. A car sales person has many models ranging in
from small economy to cars to super luxury top-of the range models. A computer sales person
may carry out a survey or customer requirement prior to suggesting an appropriate computer
system. A pharmaceutical sales person will discuss with doctors the problem which have a risen
with patient treatment. Perhaps an ointment has been in effective or a harmful side-effect has
been discovered. This gives the sales person the opportunity to offer solution such problem by
means of one of his or her company product. This need analysis approach suggests that early in
the sales process the sales person should adopt a question and listen positive. In order to

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encourage the buyer to discover his or her problem and need salespeople trend to sue open
rather than closed question. (Banik, 2006:128).

The Presentation and Demonstration


Kooper (2004:129); stated that once the problem and needs of buyer have been
identified the presentation follows as a natural consequence. The key to this task is to
recognize that buyers purchase, benefits and are only interested in product features in as
much as they provide the benefits that the customer is looking for. Many sales stations
involves risk to the buyer, No matter what benefit the salesperson discuss, the buyer may
be reluctant to change from the present supplier or change the present model because to
do so may give ride to unforeseen problem delivers may be unpredictable or the new model
may be unreliable. Assurance from the sale person themselves unlikely to do totally consuming
after all they would say that wouldn’t they. The sales person accurately identifies customer
needs and release product benefit to those needs (Kotler,1996:1).
1) Dealing with Objection
Objections should not always be viewed with dismay be salespeople. Many objections are
simply expressions of interested by the buyer. What the buyer is asking for is further
information because he/she is interested in what the salesperson saying. The problem is that the
buyer is not yet convinced. Objectives highlight the issues which are important to the
buyer. For example ford when training salespeople make the point that a customer’s objection
is a signpost to what really on this mind. (Mittal, 2002:130).
2) Negotiation
In some selling situation, the sales person or sales team have a degree of discretion with regard
to the terms of the sales, negotiation may therefore enter into the sales process sellers may
negotiate price credit terms, deliver times trade invaluable and other aspects of the commercial
transaction. The deal which is arrived at will be depended up [on the balance of power (Banic,
2004:106).
3) Close the Sales
The skills and techniques discussed so for are not in themselves sufficient for consistent
sales success. A final ingredient is necessary to complete the mix the ability to close the sales.
Some salespeople believe that an effective presentation should lead the buyer to ask for the
product without the seller needing to close the sales himself/herself (Belch, 2004:217).

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4) Follow Up
This final in the sales process is necessary to ensure the customer is satisfied with the purchase
and that no produce with such factors as delivery instating product use and training have arisen.
Sacs people may put off the installation product use and tracking have a risen salespeople may
put off the follow up call because it does not result in an immediate order however for must
companies repeat business is the hall work or success and follow up can play massive
role, (Kotler,2005:21).

2.2.2. Strategies for the Success of Sales Promotion


There might be many factors which have an influence on the practical sales promotion activities
of any organization. Couper (2003: 383) recommended the following factors should be
considered prior to any sales promotion activities implemented. These activities are setting
sales promotion objectives, identifying the company target group identifying the appropriate
sales promotion tools and activities shall be specified; i.e. Setting standard, selection of
personnel of promotion department and availability of technology.

One of the most important factors to success lies in the securing of names of those to
be approached. Knowledge of the people themselves, their habits, customs and surroundings
will also help the salesman to be at ease and to interest those approached through the
sheer force of personality that appeals to the man himself, by using information that is of no
interest to him but getting this information is difficult (Kotler, 2005; 2014).

The basis of the sales promotion is the inquiry and the inquiry presents more chances
for successful selling than does the salesman who visits the individual buyer. In order to
create the inquiry interest must be excited. Indeed it is patent that every inquiry must have,
the motive power of interest back of it, eliminating, of course, the idle letters that come from
curiosity seekers and those after "something for nothing." The traveling salesman’s road is
harder. He must be at once the advertisement that creates the interest and the follow-up system
that produces the sale. He does not always have the advantage of pre-excited interest or the
privilege of talking of his goods to the merchant who has already exhibited a desire to know and
to buy. Therefore, it stands that the letter of inquiry is the advance agent of a sale and that it is
the result of the salesman qualities exhibited in the advertising and follow up (Belch; 2004:
394).

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The problem of selling the perishable necessities of life by using sales promotion is hard,
but if solved it would confer a lasting benefit upon increased sales. The customer who runs bills
with his various local dealers is bound by no agreement providing a penalty to pay
within a certain specified time. The loose methods of the retailer's credit system are notorious
and ineffective, and many a retailer has met his financial Waterloo by extending credit to
the unworthy and the unfortunate. The public is badly trained and expects to run bills
regardless of time, to be paid at the public’s own convenience. This necessitates the retailer
establishing a flexible credit with his jobber, who in turn must have a proportionately large
credit with the manufacturer and operator (Kummar and Mittal, 2002; 298).

Personal selling involved selling Though a person to person communication process of


factors placed on personal selling varies from two firms depending on verity of factors include
the nature of the product or service being marked size of the organizational and type of
industry personal selling often play the dominate role in industrial firms which in order to other
such as makes of low-Priced consumer no durable goods it’s role is maximized. In many
industries those roles are changing to more balance end use of promotional program elements.
In an integrated marketing communication program personal selling is a partner with not a
substitute for other promotional mix element (Milner; 2004: 395).Some sales representative
will put is the most best effort without any special coaching from management. To than
selling is the most fascinating job in the world. They are ambitions and self- starters. But the
major of representative require encouragement and special incentives. This is especially
true of field selling (Jobber, 2001; 177).

2.2.3. Types of Sales Promotion


According to Baker, (1990: 238) it is important to evaluate the effectiveness of the sales
promotion efforts. In addition to determining the contribution of this program
element to attaining communication objective the evaluation offers other advantages: It
tells management what has been achieved through sales promotion activities. It provides
management with a way to measure sales promotion achievements quantitatively. It gives
management a way to Judge the quality of sales promotion achievements and activities.

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Simon, (2004: 240) further suggests the following additional means for accomplishing
this evaluation process. Personal Observation and Reaction: personal observation and
evaluation by one's superiors should occur at all levels of the organization. Public Opinion and
Survey: Research in the form of public opinions surveys may be used to gather data to
evaluate program goal attainment. Audits: Both internal and external audits may be used.
Internal audits involve evaluation by superiors or peers within the firm to determine the
performance of the employee (or his or her programs). External audits are conducted by
consultants, the client (in the case of a public relation agency). Or other parties outside the
organization. Management by Objective: executives and their managers act to together to
identify goals to be attained and the responsibility of the managers. These goals are then used as
a standard to measure accomplishments. Matching Objectives and Results: specific objectives
designed to attain the overall communication objectives should be related to actions, activities,
or media coverage.
2.3. Major Tools of Sales Promotion
According to Belch, (2004: 396) for the sake of increasing sales as well as creating awareness
for customers prospects there are different tools a company's marketing department can make
use of among others the following are some of the major tools: Rebate: - under rebate
products are offered at some reduced price in order to clear the excess stock. For example,
giving a rebate by a car manufacturer to the tune of 12,000 for a limited period of time.
Discount: - In this method customers are offered products on less than the listed price. Refunds:
- under this method, some part of the price of an article is refunded to the customer on showing
proof of purchase. Product Combination: - under this method, along with the main product
some other product is offered to the customer as a gift among this gift. Some examples are: -
Quantity gift: - some extra quantity of the main product is passed on as a gift to the buyer.
Instant Draw and Assigned Gift: - A customer is asked to scratch a card on the purchase of a
product and the name of the product is inscribed there upon which is immediately offered to the
customer as a gift. Lucky Draw: - The customers of a particular product are offered gifts on a
fixed date and the winners are decided by the draw of lots. While purchasing the product, the
customers are given a coupon with a specific number printed on it.Coupons: - coupon is a kind
of certificate telling that the product mentioned therein can be obtained at special at special
discount. It means that if a customer has a coupon of some product he will get the discount

Assessment of the sales promotion practice of Belyab Motors plc Page 17


mentioned therein whenever he buys it. Possession of a coupon motivates the consumer to
buy the product, even when he has no need of it.Such coupons are published news and
magazines .some companies distribute coupons among its shareholders. Sellers collect the
coupons from the customer and get the payment from the company that issued the same. Full
Finance at 0%: - a product is sold and money received in installment at 05 rate of interest. The
seller determines the number of installments in which the price of the product will be recovered
from the customer. No interest is charged on these installments. Samples or Sampling: - the
producer distributes free samples of his product among the consumers. Sales representatives
distribute these samples from door-to-door. This method is used mostly in case of products of
daily use such as toothpaste, tea, etc. thus, the consumers willingly make use of free
samples, and if satisfied they buy the product, in this way sales is increased. Contests: - some
producers organize contests with a view to popularize their products. Consumers taking part in
the contest are asked to answer some very simple questions on a form and forward the same to
the company. The blank form is made available to the consumer who buys the product first.
Result is declared on the basis of all the forms received by a particular date. Attractive prizes
are given to the winners of the contest. Such contests can be organized in different ways.

2.3.1. Installment Selling


Explaining the main points in this now very important branch of business, also
containing a suggestion to the retailer, whereby he may improve his credit system.to
every one disgruntled, disgusted "victim" of the installment business there are one
hundred well pleased, contented beneficiaries of this new and very satisfying method of selling
to the moderately well to do and the "just get along. “This chapter has not to deal with the
ethical side of the partial payment plan, nor will it go into an exhaustive analysis of the conduct
of the business. Enough to say that the modern installment house retains just as much
confidence of its patrons as does the credit department store and the smaller retailer who handle
accounts upon the monthly basis or for cash, and the enemies of this system are usually those
who have failed to live up to the very easy and often self-suggested terms of payment (Couper;
2003: 385).
The beginning of selling on the installment plan is advertising. Considering the scope and
magnitude of the business, taken as a whole, it is safe to say comparatively speaking,
that more money is expended in newspaper installment publicity than is expended by any
other branch of retail selling. Up until the present the advertising campaign has been one of

Assessment of the sales promotion practice of Belyab Motors plc Page 18


education an education that has led thousands from the state of trust and doubt into the light of
confidence (Jobber; 2001:285).
The greatest difficulty to overcome in the firm establishment of installment in this country was
the prejudice held by the public to the effect that partial payment dealers were "sharks,"
charging exorbitant rates of interest on goods purchased, holding the purchasers down to
agreements whereby they could be deprived of all of their property and even personal liberty in
event of failure to pay. It may be said in passing that such a condition did exist and that the
public did receive this warning from the many ugly court scrapes that resulted from the
pressure brought to bear by installment people on unwilling debtors (Kotler; 2005:175)
It is also true that this business was formerly conducted with a much larger percentage of profit
and that comparatively worthless merchandise was sold at exorbitant prices, the installment
sharks, as they were then known, claiming that their in-vestments, huge book accounts and
losses from absconding debtors compelled them to take it out of the pocket books of their
customers. Bearing these things in mind it will be seen that selling on the partial
payment plan was originally conceived and run under a cloud (Milner; 2003: 285).

2.3.2. Retail Selling


The basis of effective selling in retail lies in advertising, and the term comprehends not only the
use of newspaper space but also the very effective window displays which now characterize
every up-to-date and modern retail establishment. This does not mean that the retail salesman is
a factor to be despised, but it rather argues advertising as a starting point the basis upon
which successful retail establishments are built and conducted. The subject of this article is "co-
operation in the retail store,'' and the writer will try to explain how the cooperation of all
departments with the advertising department will strengthen the whole fabric (Milner; 2004:
248).
The effective force of retail selling is lessened and sometimes entirely destroyed, through
the failure of employees to properly back up advertising failure caused by both sins of omission
and sins of commission. While not decrying the unit value of the salesman and his
individuality as it makes for success, the writer never the less believes that there
are "line'' stores and department stores that are unable to hold together a force of sub-
managers and clerks who will work for the best interests of the firm (Kummar and
Mittal;2002:267).

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In all lines of business there are certain individual who exhibit indifference, surliness, and lack
of cohesiveness to the serious detriment of the whole, and nowhere is this more apparent than in
the retail store where long hours and meager salaries sap the energy, intelligence, and
willingness of employees. They fail to realize that their interests are closely bound to those of
the firm employing them, and it is little wonder that dissatisfied customers leave such
establishments, never to return. Thus we see that the dissatisfied selling force will militate
against advertising and destroy much of its force (Belch; 2004: 318).
A little incident will be apropos here, and while it does not directly concern a retail
establishment, it nevertheless has to deal with that department of a railroad which retails
tickets to travelers. The writer had occasion to journey to Detroit recently and, selecting that
which he considered the best road out of Chicago, he repaired to the city ticket office. A sign
upon the door notified travelers that the location of the office would be changed within the next
few days. This was news to the writer and upon approaching the clerk at the desk he remarked
pleasantly, "I see you are about to move your office; are they going to tear this building down
(Milner; 2004: 248).

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CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY

3.1. Research Design


In order to answer the above basic research questions, the student researcher will use
descriptive research method. Descriptive research method helps to describe the research
setting as it is and also allows the use of both quantitative and qualitative approach.
According to Malhotra (2007), descriptive research primarily aims at gathering knowledge
about description and explanation of the objectives of the study. The student researchers simply
describe the things, events, collected and data which will be collected through questionnaires
and interviews.
3.2. Population and Sampling Technique
The target population of the study will be the marketing manager and the final
customers of Belayab Motors Plc. The student researchers will use non-probability sampling
approach, particularly convenient sampling technique. Due to the difficulty nature of
determining sample size of the customers of Belayab Motors Plc the student researcher
was used Malhotra’s (2006, 329) suggestion of 150 respondents customers as
representative sample in order to have sufficient and reliable data.
3.3. Methods of Data Collection
The student researcher will use both open and close ended questionnaire, and interview
to collect primary data. The secondary data will be gathered through referring different text
books, internet and published and unpublished data of the corporation; related with the
subject matter.
3.4. Methods of Data Analysis
The study will use both qualitative and quantitative data analysis techniques. The responses
that will be collected from open ended questionnaires analyzed by quantitative approach
and presented by tabulation and percentage. Responses that will be obtained through close
ended questionnaires and interview was narrated qualitatively.

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CHAPTER THREE: RESEARCH METHODOLOGY
Introduction
The methodology used by the researchers to conduct the study is presented in this chapter. It
presents the research design, the study location and target population, the sample size and
selection method, data collection and analysis procedures.
3.1. Research Design
The research design refers to the overall strategy that a researcher chooses to integrate the
different components of the study in a coherent and logical way, thereby, ensuring that the
research was effectively address the research problem; it constitutes the blueprint for the
collection, measurement, and analysis of data (De Vaus, 2006). The researchers will used a
descriptive and explanatory research design to undertake this research because, descriptive
research design provide answer to the questions of who, what, when, where and how associated
with the given research problem. Explanatory research design, as it appeared to be more
appropriate and efficient in yielding maximal information. It has served as a master plan to
specify the methods and procedures for collecting and analyzing the needed information and
ensuring its relevance for solving a problem (Kothari, 1984, Mark, Philip and Adrian, 2009).

3.2. Research Approach


Quantitative and qualitative method research approach was used for conducting the research.
Quantitative method will be used to administer the data gathered from using questionnaires and
it is used to quantify the problem by way of generating numerical data or data that can be
transformed into useable statistics. Qualitative research approach used on this study to collect
non-numerical data and particularly focus on exploring subjective experiences, opinions, and
attitudes, often through observation and interviews.
3.3. Population and Sample Design
3.1.1. Target Population
According to Hair et al. (2006), target population is said to be a specified group of people or
object for which questions can be asked or observed made to develop required data structures and
information. For this study, the target population will be the final customers of Belayab Motors
Plc and the Marketing Manager.

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3.1.2. Sampling Technique
In this research, the participants of the study will be the final consumers of the Belayab Motors
PLC and the Marketing Manager. The marketing manager is chosen due to their role in outlining
sales promotion strategies and obtaining customer feedback, while the final consumers are
selected because they are the users of the company's products and their feedback can potentially
impact the sales promotion strategies of the company.

As per the data found from the company sales status, more than 1,000 private and government
owned customers are found in the sales transaction of vehicles. However, because of time,
financial and data administration problem, for these study student researchers will use non-
probability sampling technique, particularly convenient sampling technique.

3.1.3. Sample Size


Due to the difficulty nature of determining the exact number of the customers of Belayab
Motors Plc student researcher will use Malhotra’s (2006, 329) suggestion of 150
respondents customers as representative sample in order to have sufficient and reliable data.

3.2. Data types and Sources


Primary data will be collected from sources using questionnaires by the researchers. Using
primary data gives the benefit of revealing much-needed information. Though it is a lengthy
process, it does provide first-hand information. Secondary data will be reviewed for an enhanced
view by analyzing all associated sources, such as published literatures, annual reports, company
policy, journal articles, case studies, related reports, research papers, related internet material,
and other related documents on staff retention.
3.3. Data collection methods
For the collection of the desired information primary and secondary data will be used. Primary
data will be gathered through structured questionnaires. The questionnaires will be designed in a
standardized and simple format arranged in a logical sequence, which is, starting from easy to
difficult in order to get appropriate answer. Desk review of unpublished documents and Annual
reports and records of the Bank, information from journals and books will be used because those
resources consist of important and reliable information, which provide a better understanding of
the issue under review. This will also assist in the collection of the primary data.

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3.4. Data analysis and presentation

The study will use both qualitative and quantitative data analysis techniques. The responses
that will be collected from open ended questionnaires analyzed by quantitative approach
and presented by tabulation and percentage. Responses that will be obtained through close
ended questionnaires and interview was narrated qualitatively.
3.5. Validity
Validity refers to the ability of an instrument to measure what it is intended to measure. It is the
degree to which the researcher has measured what he/she has set out to measure (Zikmund
1997). Content validity will be measured first by the researcher’s advisor read through the
questionnaire so that they can evaluate whether the questions effectively capture the topic under
research.
3.6. Ethical Considerations
Confidentiality – the respondents will be assured that their response will remain confidential.
The information they provide will be kept private and used solely for academic purposes. Cover
letters explain the purpose of the questionnaire and the right to accept or refuse to participate in
the research activities was given to the respondents of this study. As well as explaining the
purpose of the study and for what purpose the study is conducted.

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BUDGETARY REQUIREMENT AND TIME SCHEDULE
1. Budgetary requirement
There are different costs which will be incurred to conduct this study. The researchers estimates
the following minimum cost per item.
Price
No Item Qty Unit
Birr Cent Total
1 Laptop 1 Laptop-HP Core 30,990.00 - 30,990.00
2 Flash disk 2 8Gb
I5 350 - 700.00
3 Transportation - Km 1,000.00 - 1,000.00
4 Pen 4 - 10 - 40.00
5 Printing 1000 - 5 - 5,000.00
6 Blending 4 - 20 - 80.00
7 Paper 2 Reams 180 - 360.00
8 Internet 2 GB 2,000.00 - 2,000.00
9 Miscellaneous - - 500 - 500.00
10 Contingency5%
expense - 2,033.50 - 2,033.50
Total 42,703.50
2. Time schedule
Time plan or time budget is a time table explaining how the researcher expects to Cary out his
research. It is a plan in terms of months and expects completion. Dates, it is present in the table
form or charts in the following schedule
No Description April May June Jul Aug
1 Title Selection xx
2 Proposal Writing xx
3 Questioner Preparation xx
4 Data Collection xx
5 Data Analysis xx
6 Final Report Writing xx
7 Research Submitting xx
8 Defense/reflection xx

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company
Krishna K. et al 2007) Sales and Distribution Management. Tata Mc Graw-Hill Publishing
Company limited
Kumare N ands Mlttal R. (2002) Marketing Management. 1st edition J.L Kumar for Armol
Publication private limited company.
Kumar (2001) Marketing Management. Prectice Hall ,opper saddle Ritver Tata MC Growing
publication company.
Kooper(2004) Principle of Marketing Edition Ph learning private limited
Kotler Philip (2005) Marketing management. 8th edition prentice Hall of India private Limited.
Kotler Philip and Gary Armstrong (2005) Principle of Marketing. 11th edition prentice-Hall of
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limited.
Milner Still, Edward W. (2004) Sales Promotion Management private limited company.
Malotra.K.(2006) Marketing Research new delhi practice-hall private Ltd.

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