(SURVEY OF SELECTED SUPERMARKETS IN PORT-HARCOURT)
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ABSTRACT
This study examines the impact of sales promotion on sales performance of supermarkets in Port-Harcourt. The population of the study consisted of selected supermarkets situated in Port-Harcourt, Rivers State. The research employed convenient sampling techniques in which members of the staff of the various supermarkets were selected and administered questionnaire. The data collected was analyzed by the use of Pearson Product Moment Correlation Co-efficient and the information generated was presented in form of figures and tables. The hypothesis formulated was tested and it was found that sales promotion has significant and positive impact on sale performance of supermarkets in Port-Harcourt. The researcher therefore concluded that organization (supermarkets) should select and implement the most influencing and accepted sales promotion by the customers so as to improve their sales performance.
CHAPTER ONE
INTRODUCTION
1.10 BACKGROUND OF THE STUDY
Many of the purchase situation of consumer goods are so common and habitual that they involve every little cognitive activity of the consumer (Watrien and Murre, 2007). In such situation, motivating or influencing the consumer to switch brands or purchase more items is relatively hard.
In regard to this, supermarket owners and managers utilize different promotion strategies according to the different preference of the customers to boost the sales performance.
Price reductions, coupons, samples, premium, context bonus packs (BOGOF) are some of the sales promotion tools used by managers and marketers to attract more customers to purchase their brands (Gilbert, 2002).
Sales promotion is needed to attract new customers, hold current customers, react to competition and also take advantage of opportunities that are revealed through market research (Yang, 2010).
Organizations are aware that modern marketing is more than just producing goods product, suitable pricing and easy access to them (Kotler et al, 2000).
Today, attracting new customers has become so important in modern marketing in addition to retaining existing ones, hence firms while trying to attract new customers, do not loose sight on keeping existing customers. (Jobber and Lavaster, 2006) promotion refers to as any communication used to inform, persuade and remind people (customers) about an organization or individual goods, services, image and ideas (Evans and Berman, 2000).
Sales promotion consist of a variety of incentive tools, mostly short terms, that are used to stimulate consumers to accelerate the purchasing process or to increase sales (Kotler and Armstrong, 2010). One of the purpose of sales promotion is to elicit a direct impact on the purchase behavior of the firm’s customers. Sales promotion affect the decision making and purchasing stages of the buying process directly that it becomes effective in the long-run since it leads to increased sales and profit (Kwok and Uncles, 2005).
The business environment has become very competitive in the 21st century due to rapid increase and growth in technology, infrastructure and access to information around the globe. This has made the business environment very complex, and consumers preference keep changing (Mensab, 2006). Due to this increasing demand of consumers in the market, firms (super markets) have to increase their resources with attention focused more on attracting and retaining it’s customers. The ever increasing competition in the market has prompted organization to be determined and ensure satisfaction of customers’ needs and want more efficiently and effectively than competitors through the use of sales promotion (Kotler, 2001).
Therefore, this research is aimed at determining the impact of sales promotion on the sales performance of supermarkets in Port-Harcourt metropolis.
1.11 STATEMENT OF THE PROBLEM
Many method of promotion are employed by firms to gain a stronger hold of their respective markets within the supermarkets, with many of the major competitors offering the same or similar products at almost similar prices, it is necessary for business firms to stand out from competition so as to maximize profit. Various forms of marketing strategies are employed to attract customers in other to increase sales performance and as promotion is one of the most effective means of marketing, and also sales promotion is one of the forms of marketing communication with almost immediate sales impact.
It is therefore imperative for the firm to understand the most effective sales promotion activity and how it affect the sale performance of supermarkets.
Over the past decade, there has been an increase in the use of sales promotion by many marketing organization in Nigeria (Gilber, 2002).
Also, the frequency of the use of sales promotion leaves much to desired as the consumer most time doubt the efficacy and credibility of some sales promotion programme.
In most cases, it is quite observable that when customers are uncertain about their preference among competing brands in the market, they tend to avoid product whose promotions are perceived to provide little or no value or unneeded features.
With the recent and ongoing economic down turn, it is even more imperative that firms should carefully select and implement sales promotion that impact positively on sales performance of the firms, which means that sales promotion should be used more frequently.
Therefore, this study seeks to answer the following questions: Does sales promotion impact positively on the sales performance of supermarket?
What form of sales promotion should be used by firms so as to attract and retain customers?
1.12 OBJECTIVE OF THE STUDY
The main objective of this study is to find out the impact of sales promotion on sales performance of supermarkets in Port-Harcourt. Specific objectives are:
- To find out the impact of premium on the market share of supermarket in Port-Harcourt.
- To examine if discount can be used to improve sales growth of supermarkets in Port-Harcourt.
- To determine the impact of contest on supermarket sales growth.
- To investigate the extent of relationship between coupon and customer satisfaction.
1.13 SIGNIFICANCE OF THE STUDY
In view of the high level of competition in the market, firms have taken to the use of every available sales promotion in marketing practice so as to remain competitive and also gain competitive edge (advantage) in the market.
The study will be of significant benefit to owners and managers of supermarkets as it reviews the impact of sales promotion on sales performance.
The study will also be of great importance to students and researchers investigating on similar or related topic as it will serve as a source of relevant information.
1.14 RESEARCH QUESTIONS
- To what extent does premium influence market share of super market?
- Does discount has any significant impact on sales growth of supermarkets?
- Can contest be used to improve supermarket’s sales growth in Port-Harcourt?
- Can coupon be used to improve customer satisfaction?
1.15 RESEARCH HYPOTHESIS
Ho1: There is no significant relationship between premium techniques and market share.
Ho2: Discount does not have any positive effect on the sales growth of supermarket in Port-Harcourt.
Ho3: Contest does not have any significant impact on sales growth.
Ho4: Coupon does not have any significant impact on customer satisfaction.
1.16 SCOPE OF THE STUDY
The research focused on the impact of sales promotion on sales performance of supermarket in Port-Harcourt.
Hence, the scope of the study is within Port-Harcourt metropolis and it covers selected supermarkets.
The categories of staff that is to be interviewed are the sales managers, financial managers and sales personnel.
1.17 LIMITATION OF THE STUDY
Some challenges were encountered by the researcher in the course of this study.
These limitations were mainly on resources (finance and time frame within which the research was to be done was very short, finally, the availability of relevant materials strategic to the topic and failure of respondents to submit their questionnaires after answering the necessary questions.
1.18 DEFINITION OF TERMS
Sales promotion: This refers to promotion activities that stimulate interest, trial or purchase by trial consumer or others in the channel by offering extra value, usually on a temporary basis.
Marketing: Is the management process that is responsible for identification, anticipation and satisfaction of consumers needs at a satisfactory profit.
Strategy: It is the articulated means of achieving objectives.
Premiums: Are to boost sales by creating product awareness and trust. The free-in-mat and self liquidating premium offer better incentive that are related to the product concerned.
Coupons: Are leaflet given to customer which enable them to buy a product at a cheaper price. It is used to produce trust, convert into regular users and to attract many prospects to the product.
Sales performance: Is the practice of monitoring and guiding personnel to improve their ability to sell product or services.
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