Mekdes, Lidya, Rediet Proposal
Mekdes, Lidya, Rediet Proposal
Mekdes, Lidya, Rediet Proposal
June, 2023
Royal College Piassa Campus
Addis Ababa, Ethiopia.
INTRODUCTION ....................................................................................................................1
Bibliography ............................................................................................................................ 22
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
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.
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).
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).
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.
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.
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
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).
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.
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).
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).
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
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).
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.
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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