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ABSTRACT
Sales promotion is a compound word, and its activities make organization to communicate directly with potential customers. Thus, the main purpose of this study is to examine sales promotion as a tool in the marketing of Beauty Care Products (A Case Study of Montaigne Cosmetics). To achieve the objectives of the study, the researcher took extensive review on related literatures, and utilized the Bourley Yaro-yemen’s sampling technique, to determine the sample size, out of which a sample size of 100 respondents from Montaigne Cosmetics. Out of the 100 copies of questionnaire distribution 90 were retrieved. Simple percentage and frequency distribution were use to analyze the data. The research was guided by three (3) research questions in an attempt to answer these questions, hypothesis was formulated and tested, using the Chi-square (X2) statistical tool. It was found that sales promotion as a tool play significant role in the marketing of Montaigne cosmetic beauty care product, sales promotion as a tool have impact in the marketing of Montaigne cosmetics beauty care product. Based on the findings, the researcher recommended that; it is not only sales promotion that contributes to the sales of Montaigne cosmetics beauty care products. Therefore, it was recommended that other promotional tools like advertising, personal selling and publicity should be used effectively by the company to stimulate patronage of it’s product.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nowadays, it is a common phenomenon for organizations manufacturing beauty care products like Montaigne cosmetics, to market their products through all form of sale promotion tool on a daily basis by means of print or electronic media. This trend has made people to develop some kind of interest in sales promotion advert which will showcase the organizations product areas of interest, in order for them to take advantage of the price off, trade bonus, cash discount gifts and even free trials. Amazingly, during the sale promotion, customers tend to ask for free gift even before receiving the products paid for.
Producers, in other to satisfy the consumer develop new products to meet the changing needs of the people. But, as the economy grows and expands, there is need for a better understanding of product use and a increase in the sales volume of the firm. Kotler (1980:513), noted that “important information differentiated product which are thought to have similar volume.
Scheme (1998:482) equally noted that this necessity gave rise to marketing communications which is a means of informing, persuading and reminding customers about the nature and availability of the product. It is therefore, a communication tool which comes in different forms such as advertising, public relations and sales promotion.
Kotler (1998:482) define communication as a process of exchanging ideas and meanings. Communication process therefore, provides a basis for all activities of the organization that are perceived in the market.
Sales promotion is a compound word, and its activities make organization to communicate directly with potential customers. The promotional element comprises of mix of tools available for the market called the promotional mix which consist of advertising, personal selling, sales promotion and publicity.
In this topic, sales promotion directly falls on marketing promotion of marketing mix. According to Nwaizugbo (2004) marketing mix is the term that is used to describe the combination of the four inputs that constitute the core of a company’s market system of the product, the price structure, the promotional activities and distribution system (place). This is generally referred to as the 4ps (product, price, place and promotion).
According to Olakunori (1999), marketing mix is the term used to describe the combination of the basic controllable inputs that constitute the core of an organizations internal marketing system. This marketing mix is the tools that is been used to sell a company’s product or achieve the company selling objectives.
Kotler and Armstrong (2008) posit that sellers may use consumer promotions to urge short- term customer buying or enhance long- term customer relationships which is due to the excitement and pulling power of advertisement hence sales promotion is to reinforce the product’s position and also help to build long term- customer relationships which is why most marketers are avoiding “quick fix”, price-only promotions in favour of promotions designed to build brand equity.
Conventionally, advertising has been the “glamorous promotional implement, attracting much managerial attentions in many forms but now the dynamic situation had changed as expenditures incurred for sales promotions have rapidly increased more than the initial outlays in most organisations compared to advertising expenditures, reason being that sales promotion is being integrated to the total marketing strategy in many organisations as it is introduced at the inception of a campaign as against tackling afterward changes in the marketing environment which exhibits upward pressure on the need for sales promotion Gbolagade et. al. In the recent times, dissatisfied customers with respect to retail selling could be improved by good sales promotion activities. Sales promotion campaign is often the only promotional material available at the point of purchases which inform, remind and also stimulate the buyers Stanton et. al, (1995). Kotler and Armstrong, 2008 emphasised that sales promotion provides many benefits to the producers to adjust to short-term changes in supply and demand, also the differences in consumer segments and encourages buyers to buy more.
The organization understands how important customers are, not to sales promotion but also to the elements of the marketing communication. Peattie and Peattie (2009) and Davis and Adeyiaka (1992) concluded that sales promotion have effect on the marketing of products like montaighe cosmetics.
Accordingly to Schulz and Robinson (1982), submit that sales promotion is an activity that acts as a direct inducement, offering added value or incentives for a product to sellers, sale persons or customers. Wilton (2006) defines sales promotion as special offers which essentially aim to stimulate the marketing and demand for the product.
Promotion as we said earlier is a compound word and it comprise of advertising, personal selling, sales promotion and publicity. And sales promotion is design to supplement advertising and co-ordinate personal selling. And it stimulates consumer purchasing and deal effectiveness such as displays, shows exposition, demonstration and various non-recurrent selling efforts not in the ordinary routine. Thus, the purpose of this study is to examine sales promotion as a promotional tool in the marketing of beauty care products.
1.2 STATEMENT OF THE PROBLEMS
Despite all the benefits derivable from sales promotion and the need to keep up with stiff competition in the market place, many organizations especially in developing countries still fail to accept sales promotion as a marketing tool to reckoned with.
Sales promotion which is a vital tool in the marketing of Montaigne cosmetics beauty care product by means of print or electronic media has experience some negative consequences. This has seriously hindered the successful marketing of Montaigne cosmetics beauty care products. These factors are both internal and external. The case of the internal factor is concern with the strength and weakness of the organization or manufacture has encounter. Inadequate supply due to inefficiency in the production which has affected the marketing of this Montaigne beauty care products is also another problem.
The case of the external factor is that the organization otherwise manufacture of Montaigne cosmetics beauty care is faced with serious competition from other manufacturers.
Rather, sales promotion budgets have been regarded as a waste and a drain on their profits. Besides, critice of the marketing tool see it as on evil that has ended all rational thinking of the consumer whom sales promotion as a tool persuaded to buy what they do not really need or want.
The researcher is faced with the broad problem of what Montaigne cosmetics perceive sales promotion to be, and what direct the consumer perception and reaction to Montaigne cosmetics.
It has been observed that Montaigne cosmetics has been embarking on sales promotion which covers a limited area at a high cost, so, considering the enormous tasks is active to determine the cost effectiveness of this expensive incentives.
In this regard, the study seek to find out the effect sales promotion as a promotional tool in the marketing of beauty care products of Montaigne cosmetics, and also to offer sound suggestions on how to improve upon the sales promotion incentives.
1.3 OBJECTIVE OF THE STUDY
The aim of this study is to examine sale promotion as a tool in the marketing of Montaigne cosmetics beauty care products. (A case study of Montaigne cosmetics) other specific objectives are;
- i) To identify the role sales promotions play in the marketing of Montaigne cosmetics beauty care product.
- ii) To ascertain the impact sales promotion as a tool has on the marketing of Montaigne cosmetics beauty care product.
iii) To ascertain the relationship between sale promotion as tool and Montaigne cosmetics beauty care product.
- iv) To identify the problems facing sale promotion in the marketing of Montaigne cosmetics beauty care product.
- v) To make recommendations as solution to the problem facing sales promotion in the marketing of Montaigne cosmetics beauty care product.
1.4 SIGNIFICANCE OF THE STUDY
This study is not a mere academic exercise. It will be great benefit to the following;
First, the Montaigne cosmetics beauty care product will benefit immensely from this study. This is because it will help the company to know the actual sales promotion tools to be used for each of their consumers.
Secondly, it will help the company to ascertain the effect of sales promotion on consumer purchase of their products.
Thirdly, the study will be immense benefits to customers as adequate measures that will be recommended, which will go a long way to boost the satisfaction and value delivery ability of Montaigne cosmetics beauty care product
Furthermore, this research work is significance because it will provide a basis on which further research works be undertaken in future.
Above all, the study will be of benefit to the reader as adequate knowledge and understanding will be gained from the information contained in the study.
1.5 RESEARCH QUESTIONS
The following questions will be answered in this study. They are;
- What roles does sales promotion as tool play in the marketing of Montaigne cosmetics beauty care product?
- What impact does sale promotion as a tool has on the marketing of Montaigne cosmetics beauty care product?
iii. Are there any significant relationships between sales promotion as a tool and Montaigne cosmetics beauty care product?
- Does sale promotion as a tool encounter any problem in the marketing of Montaigne cosmetics beauty care product?
1.6 RESEARCH HYPOTHESES
This study will be guide by this hypothesis
Ho1: Sales promotion as a tool does not play any significant role in the marketing of Montaigne cosmetics beauty care product.
Hi1: Sales promotion as a tool play significant role in the marketing of Montaigne cosmetics beauty care product.
Ho2: Sales promotion as a tool does not have any impact in the marketing of Montaigne cosmetics beauty care product.
Hi2: Sales promotion as a tool has an impact in the marketing of Montaigne cosmetics beauty care product.
1.7 SCOPE OF THE STUDY
This study is about sales promotion as a tool in the marketing of Montaigne cosmetics beauty care product. The study is therefore, limited to only staffs of Montaigne cosmetics beauty care product.
1.8 LIMITATION OF THE STUDY
This studies constraints are:
Time: The time expected to complete this research is too short.
Also is the finance factor, the fund estimated to take care of this research is not enough.
Finally, the uncompromising attitude of some respondents, has made it difficult for the researcher to carryout an indebt research on the study.
1.9 DEFINITION OF TERMS
Advertising: Is any paid form of non-personal presentation of idea, goods or services by an identified sponsor.
Consumer product: Merchandise or other item of common or daily use, ordinarily bought by individuals or households for private consumption.
Personal selling: is define as a communication functions which evaluates public attitude, identities the policies and procedures of an individual or organization with the public interest, and execute a program of action to earn public understanding and acceptance.
Product: a good, idea, method, information, object or service created as a result of a process and serves a need or satisfies a want.
Promotion: This is the communication element of marketing which aims at telling the potential buyers that the products of the company are available and affordable to them and that they stand to benefit more in buying the company product than any others. In a nutshell, it aims at inducing trial for non-users and encouraging current users to not only remain loyal users but also to even increase their rate of usage (Nwaizugbo, 2004).
Sales promotion: Sales promotion are those marketing communication activities, other than personal selling, advertising, public relation that stimulate consumer purchases.
Tools: In a short word, tools referred to as an equipments, machineries or measures that will be used to achieve an objective or aim. This are things that could be put in place for one or an organization, either profit making or nonprofit making will use to achieve their primary am in sales promotion, the effective tool to achieve an organizational aim or objectives liaises on the kind of plan or strategies used by the organization and the capital that is involve in order to achieve their primary aim.