WOLAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

AN ASSESSMENT OF SALES PROMOTION CHALLENGES AND PRACTICES IN

THE CASE OF ANJIDI FLOUR FACTORY IN WOLAITA SODO.

BY;

MESFIN MANZA

ID;-MSM/WE/162/12

ADVISOR’- LEGESE .L(MA)

APRIL, 2024

WOLAITA SODO, ETHIOPIA

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Table of Contents Page
CHAPTER ONE........................................................................................................................................ii
1. INTRODUCTION.................................................................................................................................1
1.1. Background of the Study............................................................................................................1
1.2 Statement of the Problem.............................................................................................................2
1.3 Research Questions.....................................................................................................................3
1.4.1 General Objective.................................................................................................................3
1.4.2 Specific Objectives................................................................................................................3
1.5 Delimitation of the Study.............................................................................................................3
1.6 Significance of the Study..............................................................................................................3
1.7. Limitation of the study................................................................................................................4
1.8 Organization of the Study............................................................................................................4
2.1 Overview.....................................................................................................................................5
2.2.1 Promotional management....................................................................................................5
2.2.2 Advantages of Promotion.....................................................................................................5
2.3 Promotional Mix..........................................................................................................................5
2.4 Integrated Marketing Communication........................................................................................6
2.5 Definition of Sales Promotion......................................................................................................7
2.6 The Growth of Sales Promotion...................................................................................................7
2.7 Importance of Sales Promotion...................................................................................................7
2.8 The increasing importance of sales promotion............................................................................7
2.9 Types and Tools of Sales Promotion............................................................................................8
2.12 types of Sales Promotion Objectives........................................................................................12
2.13 Planning the Sales Promotion Strategy....................................................................................12
CHAPTER THREE.............................................................................................................................14
3. RESEARCH METHODOLOGY...................................................................................................14
3.1 Description of study area...........................................................................................................14
3.2. Research Design........................................................................................................................14
3.3. Population and Sampling Techniques.......................................................................................14
3.4. Types of Data collected.............................................................................................................14
3.5. Methods of Data Collection......................................................................................................15
3.6. Method of Data Analysis...........................................................................................................15
References...........................................................................................................................................16

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Abstract
The study will be delimited on the trade sales promotion practice of Anjidi flour factory. The
company produces different kind of products that need sales promotion activities. Due to the
shorter distance that the head office is located in in wolaita sodo. The general objective of
the study is to an assessment of sales promotion challenges and practices in the case of
Brother’s Biscuits Factory. The study will be delimited on the trade sales promotion practice
of Anjidi flour factory. The company produces different kind of products that need sales
promotion activities. Due to the shorter distance that the head office is located in in wolaita
sodo.
Keywords; - Anjidi, flour factory, trade sales promotion

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 CHAPTER ONE
1. INTRODUCTION
1.1. Background of the Study
Nowadays there are different ways through which companies can promote their products
which include; advertisement, personal selling, public relation and sales promotion are a few
from the many. For the purpose of this study the student researcher will be focusing on sales
promotion.

Belch and Belch (2003:16) pointed out that promotion has been defined as the coordination
of all seller-initiated efforts to set up channels of information and persuasion in order to sell
goods and services or promote an idea. Making profit is the ultimate goal in many business
organizations, to meet this goal different companies produce quality product, use attractive
pricing & distribute products to targeted customers.

Besides this one of the basic marketing mists which play an important role for the business
to reach their customers & increasing their sales is promotion. More than any other marketing
mix it deals with customers, creating an important image of the product & positioning the
product in the customers mind is the basic issue of different business organization, related to
this sales promotion is the better one in creating a better image(Belch and Belch2003:19).

Sales promotion is an action which increases the volume of sales. However, the meaning of
sales promotion has been technically defined to include display, demonstration, contests and
trading stamps. (Mishra, 1995:4) In addition, Sales promotion, which is generally defined as
those marketing activities that provide extra value or incentives to the sales force, the
distributors, or the ultimate consumer and can stimulate immediate sales. (Belch and Belch,
( 2003:21)

Furthermore, Kotler (2002:597) states 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. 2 The objectives for retailers may
be to carry new items, encourage off-season buying, and offset competitive promotions, build
brand loyalty, and so on. For the sales force may be to encourage a new product or model,
stimulate off-season sales, and persuade more prospective buyers, and so on.

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The objectives for consumers m ay be to encourage more usage and purchases of a larger
number of units and attract competitors’ brand users. Sales promotion alters the market share
permanently. It persuades the buyers of the competitors’’ product to shift to the product of the
company. It helps develop brand loyalty. (Mishra,( 1995:5-6)

The brother flour and biscuit factory was established in 1992 A.E.C in Oromia National
Regional State located in Wolait Sodo town. It produces biscuit and flour products.

1.2 Statement of the Problem

Sales promotions are the ‘activities that stimulate consumer purchases and improve retailer
or middlemen effectiveness and co-operation’ (Cateora and Graham, (1999: 480–517).

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. (Kotler and Armstrong (2002:597)

As it is stated in the above paragraphs sales promotion is an effective way of getting more
loyal customers. So if the company, in this context brother biscuit and flour factory, doesn’t
apply it correctly, a lot of potential customers may not come to their flour factory Instead the
customer turn to competitors other company who produce the same product. The company
practices mainly trade sales promotion type. Off which discount buy back guarantees. It gives
discounts for distributers based on their capability of caring the product; this 3 means that
whoever gets higher number of order will get a higher discount. The company provides with
buy back guarantees whenever the product is not sold by the retailer or wholesaler.

For example when use sing the buyback guarantees even if the product is not sold b\c of the
wholesaler and retailers problem the company retailers the money for the product buy which
it will affect the company negatively .In addition to this the discount amount is not
proportional which may cause unbalanced (unfair) completion between the wholesaler and
retailer. Especially brother flour and biscuit factory have encountered many problems
regarding in the application of sales promotion in to practice.

The problem is mainly that brother flour and biscuit factory target and their achievement is
not proportional. These could be due to improper implementation of sales promotional tools.

The other problem which is related to the stated problem is the lack of assigning proper
budget for the sales promotion. In addition to the above stated problems, the sales promotion
of brother flour and biscuit factory has a problem in applying the principles properly. Sales

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promotion marketing managers neglect the importance and the fruit that they can get at the
end.

1.3 Research Questions

The following questions are the bases for the study

 What are the main problems the factory encountered in using sales promotion as a
promotional tool?
 How the Anjidi flour factory does chose sales promotional tools in influence the
customer?
 How does the factory measure the effectiveness of the sales promotion?
 What are the criteria’s that the factory uses in assigning budget for sales promotion
tool?

1.4. Objectives of the study

1.4.1 General Objective

The general objective of the study is to an assessment of sales promotion challenges and
practices in the case of Anjidi flour Factory.

1.4.2 Specific Objectives

The following are specific objectives that the student researcher will try to achieve by
undertaking the research study:

 To identify the main problems that the company encounters while promoting its product
using sales promotion.
 To point out consumer trade sales promotional tools which are selected by the company?
 To see what ways the company uses to measures its effectiveness.
 To identify criteria’s on assigning budgets.
1.5 Delimitation of the Study
The study will be delimited on the trade sales promotion practice of hashu flour factory. The
company produces different kind of products that need sales promotion activities. Due to the
shorter distance that the head office is located in in wolaita sodo, the research student focused
the study on the company’s sales force, and marketing manager which are located in
Wolaiata sodo, and on the customers which are found in Wolaiata sodo. And its time frame
was from 2023 to 2024.

1.6 Significance of the Study

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The research study has the following contribution to the factory and other members who will
be like to have an insight about sales promotion. It helps the factory to solve the problems
and achieve maximum efficiency Creating awareness among the employees about sales
promotion.

It improves the method of sales promotion practice in the company. The study will serve as
a base line for other researchers who would like to integrate themselves in the study of sales
promotion for further investigation. As a student researcher it helps me to translate what I
have learned in to practice

1.7. Limitation of the study

During conducting this research various hindering factors were encountered and among them
financial resources and time limitation affected the research project in that it was not possible
to frequently contact the respondents and other concerned organization in the study area that
will be assumed the data source of the study. In addition, there were difficulties to find
customers who are willing to give necessary information and spent their time, and it was
difficult to meet the marketing manager and sales peoples even though they were willing to
give the necessary information with limited time.

1.8 Organization of the Study

The research study will contains three chapters, chapter one contains the over view of the
study focusing on its background and the statement of the problem, objective of the study,
significance of the study and design and methodology, chapter two contains literature review,
chapter three deals about data presentation, interpretation and analysis

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 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1 Overview
In this part detailed about sales promotion will be discussed after promotion and related
issues. 2.2 Promotion
Before going to any issues it is appropriate to say something about promotion and
promotional mix’s. Dunn, (1995:1) argued that, you may have the finest product and the most
attractive prices, but if potential customers don’t know about your business, your chances of
success are limited. Promotion may be described as the collective activities, materials, and
media used by a marketer to inform or remind prospective customers about a particular
product offering and to attempt to persuade them to purchase or use it. Promotion or
marketing communication is not something markets ‘do to consumers ‘. It’s what occurs
when markets are sensitive to consumers needs and wants and communicate with them in a
responsible, respectful and relevant way.
2.2.1 Promotional management
In developing an integrated marketing communications strategy, a company combines the
promotional mix elements, balancing the strengths and weakness of each to produce an
effective promotional campaign, promotional management involves coordinating the
promotional-mix elements to develop a controlled, integrated program of effective marketing
communication (Belch & Belch, 2003)
2.2.2 Advantages of Promotion
According to Koteler, (1999) the present marketing situation enforce marketers to focus on
immediate awareness images of preference problem in the target market. The major
advantages of promotion can be
• Creating awareness of new products
• Keeping existing products
• Establishing company product or service image
• Providing after sale service
2.3 Promotional Mix
As Kotler and Armstrong, (2012:408) discussed, a company’s total promotion mix—also
called its marketing communications mix—consists of the specific blend of advertising,
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public relations, personal selling, sales promotion, and direct-marketing tools that the
company uses to persuasively communicate customer value and build customer relationships.
The five major promotion tools are defined as follows:
• Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsor.
• Sales promotion: Short-term incentives to encourage the purchase or sale of a product or
service.
• Personal selling: Personal presentation by the firm’s sales force for the purpose of making
sales and building customer relationships.
• Public relations: Building good relations with the company’s various publics by obtaining
favorable publicity, building up a good corporate image, and handling or heading off
unfavorable rumors, stories, and events.
• Direct marketing: Direct connections with carefully targeted individual consumers to both
obtain an immediate response and cultivate lasting customer relationships. Each category
involves specific promotional tools used to communicate with customers.
2.4 Integrated Marketing Communication
Marketing communications is the collective terms for all communication function used in
marketing a product. The purpose of marketing communication is to add persuasive value to
a product for customers. (Kitchen and Pelsmacker, 2004:20) 9 Kotler and Keller, (2012:476)
elaborate the idea saying, marketing communications are the means by which firms attempt
to inform, persuade, and remind consumers—directly or indirectly—about the products and
brands they sell. In a sense, marketing communications represent the voice of the company
and its brands; they are a means by which the firm can establish a dialogue and build
relationships with consumers.
By strengthening customer loyalty, marketing communications can contribute to customer
equity. All companies use marketing communications in some form or another-it is a critical
component of effective marketing. The first step in understanding the nature and importance
of integrated marketing communication (IMC) is to examine the different elements of
marketing communication mix, followed by an examination of the features and benefits of
IMC. It is important that all the elements of the marketing communication mix-advertising,
sales promotions, direct marketing, personal selling, product packaging, point-of-purchase
materials, outdoor displays, marketing public relations and sponsorships-are integrated to
achieve an organization’s marketing communication objectives and to enhance the equity of
its brands. The results of that integration is synergy-all the elements of marketing

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communication working together to achieve effective integrated marketing communications.
(Chitty et.al, 2011:3)
2.5 Definition of Sales Promotion
Sales promotion is any activity that offers incentives for a limited time period to induce a
desired response; such as trial or purchase; from those who are targeted. Sales promotion is
frequently misinterpreted and thought to mean literally anything that is done to ‘promoter
sales’. This is not the case in professional marketing terms. (Koekemoer and Bird, 2004:13)
Furthermore Mishra, (2009:9) in his book titled “Sales Management: Keys to Effective
Sales” point out, sales promotions can be directed at the customer, sales staff or distribution
channel members (such as retailers). Sales promotions targeted at the customer are called
consumer sales promotions. Sales promotions targeted at retailers and wholesalers are called
trade sale promotion. Some sale promotions particularly ones with unusual methods are
considered gimmick by many.
2.6 The Growth of Sales Promotion
While sales promotion has been part of marketing process for long time its role and
importance in company’s integrated marketing communication program have increase
dramatically over the past decade.
2.7 Importance of Sales Promotion
Sales promotion stems from the premise that any brand or service has an established
perceived price or value the ‘regular’ price or some other reference value. Sales promotion is
believed to change this accepted price-value relationship by increasing the value and/or
lowering the price. Familiar eg. Of consumer sales promotion tools include contests and
sweepstakes, branded give a way merchandise, bonus size packaging. Limited time discounts,
rebates, coupons, free trials, demonstrations and point-accumulation systems. Three issues
clarify sales promotion.
1st sales promotion-ranks in importance with advertising and requires similar care in
planning and strategy development.
2nd three audiences can be targeted by sales promotion; consumers, resellers and the sales
force.
3rd sales promotion as a competitive weapon provides an extra incentive for the target
audience to purchase or support one brand over another. The last factor distinguishes sales
promotion from other promotional mix tactics. For example unplanned purchases may be
directly related to one or more sale promotion offers. (Mishera, 2009:11)

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2.8 The increasing importance of sales promotion
The importance of sales promotion has increased significantly over the years. Some time ago,
advertising accounted for about 60% of the adverting and sales promotion budget. However,
over the last year’s sales promotion has continuously increased its share. According to Fill,
(2002); kotler, (2003); depelsmacker etal. 2004) factor leading to the increased use of sales
promotion include:
• Short-term orientation of marketing managers
• Measurability and accountability
• Perceived lack of effectiveness of advertising
• Brand expansion and proliferation and lack of brand differentiation
• Declining brand locality and increasing price-orientation of consumers
• Increasing in store-decision making
• Distribution channel power & the competition for shelf space Companies are becoming
increasing short-term oriented.
Marketing executives are often judged on the basis of the short-term sales evolution of the
products and brands for which they are responsible. However, the impact of many
communications tools, such as advertising, sponsorship and marketing public relations, only
become apparent in the long run. Furthermore, their impact is often only cognitive (e.g., a
better increased brand awareness)or attitudinal(eg,a better brand image) The inherent
characteristic of sales promotion is that its results are immediately visible. Since the
objectives of sales (per customer) in the short run, the results of a sales promotion campaign
are immediately and exactly measurable. Since marketing managers are increasingly
accountable for their communications budgets, they are easily tempted to deploy campaigns
that will produce sales results in the short run .the perception of many marketing managers is
that it is increasingly difficult to reach customers by means of traditional advertising because
of rising costs, legal constraints ,and increasing media clutter.(kitchen and Patrick, 2004)
2.9 Types and Tools of Sales Promotion
Sales promotion is an important component of a company’s marketing communication
strategy along with advertising, public relations and personal selling. At its core sales
promotion is a marketing activity that adds to the basic value proposition behind a product
(i.e. getting more for less) for a limited time in order to simulate consumer purchasing, selling
effectiveness or the effort of the sales force. As this definition indicates, sales promotion may
be directed either at end consumer or at selling intermediaries such as retailers or sales crews.
(Mishera, 2009:9) 12 Kotler and Armstrong, (2012:483-487) classified sales promotional

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tools in to three Consumer, trade, and business Consumer promotions include a wide range of
tools—from samples, coupons, refunds, premiums, and point-of-purchase displays to
contests, sweepstakes, and event sponsorships.
Samples: are offers of a trial amount of a product. Sampling is the most effective—but most
expensive—way to introduce a new product or create new excitement for an existing one.
Some samples are free; for others, the company charges a small amount to offset its cost. The
sample might be sent by mail, handed out in a store or at a kiosk, attached to another product,
or featured in an ad or an e-mail. Sometimes, samples are combined into sample packs, which
can then be used to promote other products and services. Sampling can be a powerful
promotional tool. Coupons: are certificates that give buyers a saving when they purchase
specified products. Most consumers love coupons. Coupons can promote early trial of a new
brand or stimulate sales of a mature brand.
However, as a result of coupon clutter, redemption rates have been declining in recent years.
Thus, most major consumer goods companies are issuing fewer coupons and targeting them
more carefully. Cash refunds (or rebates): are like coupons except that the price reduction
occurs after the purchase rather than at the retail outlet. The customer sends a “proof of
purchase” to the manufacturer, which then refunds part of the purchase price by mail. For
example, Toro ran a clever preseason promotion on some of its snow blower models, offering
a rebate if the snowfall in the buyer’s market area turned out to be below average.
Competitors were not able to match this offer on such short notice, and the promotion was
very successful. Price packs (also called cents-off deals): offer consumers savings off the
regular price of a product. The producer marks the reduced prices directly on the label or
package. Price packs can be single packages sold at a reduced price (such as two for the price
of one) or two related products banded together (such as a toothbrush and toothpaste). Price
packs are very effective— even more so than coupons—in stimulating short-term sales.
Premiums: are goods offered either free or at low cost as an incentive to buy a product,
ranging from toys included with kids’ products to phone cards and DVDs. A premium may
come inside 13 the package (in-pack), outside the package (on-pack), or through the mail. For
example, over the years, McDonald’s has offered a variety of premiums in its Happy Meals—
from Avatar characters to My Little Pony and How to Train Your Dragon toy figures.
Customers can visit www.happymeal.com and play games and watch commercials associated
with the current Happy Meal sponsor. Advertising specialties: also called promotional
products, are useful articles imprinted with an advertiser’s name, logo, or message that are
given as gifts to consumers. Typical items include T-shirts and other apparel, pens, coffee

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mugs, calendars, key rings, mouse pads, matches, tote bags, coolers, golf balls, and caps.
Such items can be very effective. The “best of them stick around for months, subtly burning a
brand name into a user’s brain,” notes a promotional products expert. Point-of-purchase
(POP) promotions: include displays and demonstrations that take place at the point of sale.
Think of your last visit to the local Safeway, Costco, CVS, or Bed Bath & Beyond. Chances
are good that you were tripping over aisle displays, promotional signs, “shelf talkers,” or
demonstrators offering free tastes of featured food products. Unfortunately, many retailers do
not like to handle the hundreds of displays, signs, and posters they receive from
manufacturers each year. Manufacturers have responded by offering better POP materials,
offering to set them up, and tying them in with television, print, or online messages. Contests,
sweepstakes, and games: give consumers the chance to win something, such as cash, trips, or
goods, by luck or through extra effort. A contest calls for consumers to submit an entry—a
jingle, guess, suggestion—to be judged by a panel that will select the best entries. A
sweepstakes calls for consumers to submit their names for a drawing. A game presents
consumers with something—bingo numbers, missing letters—every time they buy, which
may or may not help them win a prize.
Such promotions can create considerable brand attention and consumer involvement. Trade
Promotions Manufacturers direct more sales promotion dollars toward retailers and
wholesalers than to final consumers. Trade promotions can persuade resellers to carry a
brand, give it shelf space, promote it in advertising, and push it to consumers. Shelf space is
so scarce these days that manufacturers often have to offer price-offs, allowances, buy-back
guarantees, or free goods to retailers and wholesalers to get products on the shelf and, once
there, to keep them on it. Manufacturers use several trade promotion tools. Many of the tools
used for consumer promotions—contests, premiums, displays—can also be used as trade
promotions. Or the manufacturer may offer a straight discount off the list price on each case
purchased during a stated period of time (also called a price-off, off-invoice, or off-list).
Manufacturers also may offer an allowance (usually so much off per case) in return for the
retailer’s agreement to feature the manufacturer’s products in some way. An advertising
allowance compensates retailers for advertising the product. A display allowance
compensates them for using special displays. Manufacturers may offer free goods, which are
extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain
flavor or size. They may offer push money—cash or gifts to dealers or their sales forces to
“push” the manufacturer’s goods.

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Manufacturers may give retailers free specialty advertising items that carry the company’s
name, such as pens, pencils, calendars, paperweights, matchbooks, memo pads, and
yardsticks. Business Promotions Companies spend billions of dollars each year on promotion
to industrial customers. Business promotions are used to generate business leads, stimulate
purchases, reward customers, and motivate salespeople. Business promotions include many
of the same tools used for consumer or trade promotions. Here, we focus on two additional
major business promotion tools: conventions and trade shows and sales contests. Many
companies and trade associations organize conventions and trade shows to promote their
products. Firms selling to the industry show their products at the trade show. Vendors receive
many benefits, such as opportunities to find new sales leads, contact customers, introduce
new products, meet new customers, sell more to present customers, and educate customers
with publications and audiovisual materials. Trade shows also help companies reach many
prospects not reached through their sales forces.
2.10 The Nature of Sales Promotion
Tools According kottler each sales promotion tool has unique characteristic and costs.
Marketers must understand these characteristics in selecting their mix of goals.
• Attracts consumer attention offers strong incentive to purchase and can used to advertize
product offers and to boost steepness sales. • Invites and reward of quick response where as
adverting says “buy the product” sales promotion says “buy it now” Sales promotion affects
are often liked, however and often are not as effective as advertising or personal selling in
building long run brand preference.
2.11 Sales Promotion Objectives
In using sales promotion, a company must establish its objectives, select the tools, develop
the program, pre test the program, implement, control it and evaluate.(Kotler 2002) The most
basic objective to any sale promotion in to provide extra value that encourages purchase
when it is targeted at consumers purchase when the trade is targeted the objective is to induce
distributors to push the product.
Generally the objective includes
• Encourage trail
• encourage repeat purchase
• encourage distribution channel members to stock more
• To encourage consumer to stock more in anticipation of competitive launches(Arun Kumer
and others 2006) Sales promotions tools vary in their specific objective. A free sample
stimulates consumer’s trial. Where as a free management advisory service aims at cementing

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a long-tem relationship with a retailer. Sellers use incentive type promotions to new tries, to
reward loyal customers and to increase the repurchase rates of occasional users. Sales
promotions often attract brand switchers 16 who are primarily looking for low price, good
value, or premiums. Sales promotions generally are unlikely to turn them in to loyal users.
Although they may be induced to make some subsequent purchase. Sales promotions used in
markets of high brand similarity can produce a high sales response in the short run but little
permanent gain in market share. In markets of high brand dissimilarity, sales promotions may
be able to alter market shares permanently.
In addition to brand switching, consumers may engage in stockpiling-purchasing earlier than
usual (purchase acceleration)or purchasing extra quantities. But sales may than hit post-
promotion dip. a number of sales promotion benefits flow to manufacturers to adjust to short-
term variations in supply and demand .they induce consumers to try new products instead of
never straying from current. They lead to more varied retail formats, such as the everyday-
low-price store and the promotionalpricing store. For retailers, promotions may increase sales
of complementary categories as well as induce some store-switching by consumers. They
promote greater consumer awareness of price. They permit manufacturers to sell more than
they would normally sell at the list price. They help the manufacturer adapt programs to
different consumer segments. Consumers themselves enjoy some satisfaction from being
smart shoppers when they take advantage of price specials (kotler and Kevin, 2006)
2.12 types of Sales Promotion Objectives
There are three which are fundamental, viz., informing, persuading and reminding. These
objectives are attained through effective communication. Informing is to educate the
consumers about the product. They must have some knowledge about the product offered by
the producer. They should, therefore, be informed of the new product and told that the new
product is works better than all similar existing products. Persuading: sales persons persuade
consumers to buy the products. They develop or reinforce a favourable set of attitudes and
influence their buying behaviour, and Reminding: reminding leads the firms to reinforce the
previously satisfactory behaviour of the customer. Reminding the consumer of their past
satisfaction will persuade them to stay with the product and prevent them from shifting to
competitors. (Mishra, 2004)
2.13 Planning the Sales Promotion Strategy
Because it is a technique which help the company to attract customers and make profit the
company has to develop a sales promotion in systematic way.
To do so Bose, (2010:106) discussed how to develop a sales promotion as: Size of incentive:

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some incentive should be offered for the immediate attraction of the customers to the
company’s product. However, the size of the incentive should be neither too small nor too
high. But it must always be reasonable.
If the incentive is too small, it will not create a good demand for the product. On the other
hand, if it is too high, it will produce more sales but at a diminishing rate. Duration of
promotion: it means that the incentives are offered to the public if they purchase the
company’s product within a stipulated period. Such a period may be either short like a week
or long like a few months. In case the period I too short, many prospective buyers may not be
able to buy the product.
On the contrary, a very long period will eliminate the “ACT NOW” force Timing of
promotion: usually, the promotional activities are implemented during certain select periods
when the salaried-class people have some extra money. Sales promotion budget: before the
commencement of the campaign, the sales promotion budget should be prepared. It reveals
the total administrative cost of promotion and the total incentive cost. Such a budget can be
developed by dividing the total expenses among the various products, through percentages.
Koekemoer and Bird, (2004:291-293) complemented the above idea saying;
Define the target audience: the sales promotion target audience is the group at whom a
particular sales promotion is directed. Sales promotion can be directed to the marketer’s own
sales people to the intermediaries and their sales force to consumers.
Define the objectives: the sales promotion objectives and derived from the marketing
communication overall objectives.
Set the budget: the sales promotion budget is part of the overall marketing communication
budget. However, since the overall budget is an aggregation of the budges for the individual
marketing communication mix elements it stands to reason that we would act least start with
each component. In practice, it is inevitable that adjustments will be made before his final
budget is established.

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 CHAPTER THREE

3. RESEARCH METHODOLOGY
3.1 Description of study area
The study will be conduct Hashu flour factory in Wolaita Sodo town .The Wolaita Sodo town
total area is 1,223 square kilo meter .The annual rainfall range between 530 mm. The total
population members of the town will 938 households and 400 family members. Wolaita Sodo
town the total area of 1512 hectare and consists 16 kebele, out of the total area of cultivable
and un cultivable forest and others accounted for 28414 or 268% respective Wolaita Sodo
Town agriculture office report 2015 E.C.
3.2. Research Design
The study the sales promotion practice of the company, the researcher was use descriptive
method which was help to describe the practice of the Sales promotion of the company. The
researcher will be used both the quantitative and qualitative measurement methods of data
collection. The qualitative measurement helped to interpret ideas which are going to be
gathered through interview and open ended questions while the quantitative measurement
method will helped to interpret ideas which are going to be gathered through closed ended
questions.

3.3. Population and Sampling Techniques

The study the student researcher will be used convenience non probability sampling
technique for the reason that the exact number and list of the population is not known. The
population that was included in the study was marketing manager, employees and customers.
From the whole population for the reason that the exact number of employees and managers
is know, and which are 10 in number the student researcher used censes analysis. And
because the exact number of the customer is not know the student researcher used
convince ;non probability sampling techniques this was done based on the customers
convinces in terms of time and space, Based on the recommendation of Malthora (2006,339)
a total number of 200 samples was taken as a reliable sample size.

3.4. Types of Data collected

The study will be used both primary and secondary data. The primary data will be collected
from managers, employees and customers of the company. The secondary data will be
collected from the literature review, publication obtained from the company data base,
journals, and relevant books.

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3.5. Methods of Data Collection
The primary data will be collected through questionnaires the company’s customers and
employees while interview will be conducted with the company’s marketing manager and
sales manager

The data that will be collected through close ended questions will be analysed using
frequency, percentage and presented using tables. Data that will be obtained through open
ended questions and interview will be used to support the analysis.

3.7.Ethical considerations
It is important that research conducted in general practice is ethical and technically robust.
Electronic health records .General practitioners are increasingly approached to make
available for research, but they also have ethical and legal obligations to ensure personal
information remains confidential and is handled safely. The aim of this article is to discuss
the ethical considerations associated with sales promotion practice of the company of general
practice for research.

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Bovce and Arens. (1989). contemporary Advertising USA 4th edition.

Chris Fill. (2006). Marketing Communication University of California 4th edition. Evans and

Berma. (1990). Marketing New York 4th edition.

Georger and Michael A.Belch. (2003). Advertising and promotion New Delhi 6th edition.

Kottler and Armstrong. (2004). Principle of Marketing India 10th edition.

Kotler. (2002). Marketing Management. New Delhi: prentice-hall of India Pvt. Ltd Misha.

M.N. (1995). Sales Promotion and Advertising Management. Mumbai: Hiamalaya Publishing

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Ramaswamy and Nama Kumar. (2002). Marketing India 3rd edition.

Belach George and Belach Michale. (2003). Advertising and promotion. New Delhi: Tata

McGraw-Hill Pvt: Ltd. Naresh K. Malhtrs. (2006). Marketing Research: An Applied

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