CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Sales promotion, a key ingredient in marketing campaigns, the need to promote a product,
service or an idea cannot be over emphasized. Obi (2002) described sales promotion consists of
related promotional activities that are necessary to supplement personal selling. Some of these
include distribution of sample products to customers, exhibition or demonstration of product at
stares of trade fairs or shows and preparation of printed materials used by sales people or for point-
of-sales displays
A combination of the above variables defines a firms promotional programme that hopes to
influence consumers to patronize and become loyal to the organizations offering (Bareba and
Koroyi 2011)
Hence, promotion in marketing represents those tools that companies used to persuade their
perspective consumers to buy their product or service
Organization effectiveness is a totality of organization goodness, a sum of such elements as
production, cost performance, turnover, quality of output, profitability, efficiency and the like
(Katz and Kahn, 1966). It is the ability of an organization to achieve its objectives and meet the
reads of its various stakeholders (Khandwella, 1995)
Sales promotion can promote organization effectiveness through increase in profitability from
higher sales. Okoli (2011; 236) explains that the “essence of setting up a business organization is
to make profit. Without profit, a business is bound to fall” Loudon and Bitta (2002) said the sales
promotion plays a significant effect on decisions which helps in achieving the organizational
objectives
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
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 stimulate consumer purchasing, selling effectiveness, or the
effort of the sales force. As this definition indicates, sales promotion may be directed either at end
consumers or at selling intermediaries such as retailers or sales crews.
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 examples of consumer sales promotion tools include contests and sweepstakes, branded
give- away merchandise, bonus-size packaging, limited-time discounts, rebates, coupons, free
trials, demonstrations, and point- accumulation systems.
The provision of incentives to customers or the distribution channel to generate demand for a
product is referred to as sales promotion (Ayimey K, Vitor, and Gayibor, 2013). Along with
advertising, public relations, and personal selling, it is an integral part of a company's entire
marketing strategy. Sales promotion serves as a competitive weapon by giving an additional
incentive for the target audience to choose one brand over another. The next potential marketing
approach is sales promotion, which helps to increase product life cycle, sales growth, and buyer
Goodwill (Moemeke, 1997). For a limited time, sales promotion adds to the core principle
propositions of a product (i.e. getting more for less) in order to stimulate consumer purchase,
