Abstract

The growing managerial importance of sales promotion has generated a great deal of research on how sales promotion affects organizational performance. In Cameroon, sales promotions expenditures by various companies are estimated to be in hundreds of millions of Cameroon CFA francs and the emphasis on sales promotion activities by the various industry players continues to increase year on year.

Although several sales promotions are conducted each year by brewery companies, promotion managers are frequently confronted with the challenge of defending the question of the impact of sales promotions activities on the performance of an organization’s sales volume of their customer retains. This study generally sought to examine the effect of sales promotion on the sales volume of customer retailers of Guinness Buea.

The main objective is to; assess the effects of sales promotion on the sales volume of customer retailers of Guinness Buea (T.M.G), and the specific objective is to identify the sales promotion dimensions used by Guinness Buea on its customer retailers. The study adopted a Casual research design. The population of the study was estimated at 450 out of which a sample of 60 was used (primary data).

The main sources of data were secondary and primary. Questionnaires were used to collect primary data. The regression analysis was used with the aid of the SPSS program to analyze this work. The study found a positive and significant relationship between sales promotion and sales volume.

Thus, a unit increase in sales promotion will increase the sales volume of the customer retailers of Guinness by 0.640 provided that the other factors are held constant. The study recommends that management of T.M.G involves customer retailers in sales promotional activities. Management of T.M.G Distribution services also needs to integrate all promotional tools to ensure that all promotional goals are achieved.

CHAPTER ONE

 GENERAL INTRODUCTION

This chapter introduces the research proposal of this study which includes the background of the study, statement of problem, intention, and reason for the study, research objectives, research questions and sub-questions

Introduction

Sales promotion has become an effective marketing tool that assists organizations to wax stronger in a globally competitive environment. Oyedapo et al,( 2012) identified sales promotion as a key ingredient in marketing campaigns that assist organizations to achieve their objectives.

The main aim of any organization is to maximize profit, have the largest market shares, and become a leader in a market competitive environment. Okoli (2011) confirmed that the essence of setting up a business organization is to make a profit.  Sales promotion simply exists to have a direct impact on the behaviour of the firm’s customers (Blattberg and Neslin 1990).

Aworemi (2008) in his research finding said that sales promotion plays a significant effect on sales volume which helps in achieving the organizational objectives. The role of sales promotion in achieving organizational stated objectives cannot be underestimated.

The purpose of sales promotion is to motivate the customers to immediately purchase a particular product thus enhancing its sales volume ( Sadia and Syeda, 2012; Odunlami and Ogunsiji; 2011; and Aderemi, 2003).  According to Shimp (2003), sales promotion refers to any incentive used by a manufacturer to induce the trade (wholesalers, retailers, or other channel members) and/or consumers to buy a brand and to encourage the sales force to aggressively sell it.

kotler(2003) sees Sales Promotion as a key ingredient in marketing campaigns and consists of a diverse collection of incentive tools, mostly short-term designed to stimulate the quicker or greater purchase of particular products or services by consumers. Sales promotions programs are those activities other than stimulating consumer purchases.

Sales promotion is an important component of an organization’s overall marketing strategy along with advertising, public relations, and personal selling. Sale promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another (Odunlami and Ogunsiji, 2011).

It is on this premises that this research work wishes to examine the effect of sales promotion on organizational performance with special reference to the selected distribution industry in Buea, southwest, Cameroon.

1.1 Background of The Study

Marketers in today’s complex and volatile business environment often fuelled the constant change in the taste of customers, intense market competition, the influx of new entrants in the market, availability of substitute products face immense; a challenge to communicate their marketing objectives.

The shift in the power of marketers to consumers has forced marketers to ensure that their products are unique and of high quality to give customers a reason to purchase their products and remain loyal to them.  Furthermore, the change in certain social, economic, and environmental factors has influenced the way customers change their needs and preference.

People change their needs and their perception of stimuli according to the context that surrounds them and it comes directly from here the evident necessity of concreteness and short-term orientation that characterize sales promotion rather than advertising.

This is why marketing strategies have been adapted to this new trend and switched from advertising towards sales promotion In addition, with a limited marketing budget, the marketer today often faces immense pressure and challenge to communicate their marketing objectives to their customers.

As a result, marketers today search for more cost-effective methods to communicate with their target audience and are gradually shifting away from conventional above-the-line media advertising to a variety of below-the-line sales promotion (Yang, 2010). One of the reasons for switching from the traditional method of advertising is because of its difficulty to the measure its effectiveness (Yang, 2010).

1.2 Statement Of Problem

Brewery companies especially Guinness Cameroon Buea branch (T.M.G distribution services) use sales promotion to create awareness, remind and persuade customers to purchase their products which contribute to the growth of the organizations.  Inadequate sales promotion affects the growth in sales volume and this has been the case with T.M. G Buea.

Though measures have been put in place to eradicate this even with that no solutions have been brought forth and as a result, calls for concern for research.  We seek to know if sales promotion brings an increase in sales volume growth, and its performance, profitability, and market share of the organization thus leading to the growth of the organization.

1.3 Objective Of The Study

The objectives of the study are subdivided into specific and main objectives.

1.3.1Main Objective

The main objective is to assess the effects of sales promotion on organizational performance of GUINNESS distribution center Buea

1.3.2 Specific Objectives

1. 1 To identify the sales promotion dimensions used by Guinness Buea (T.M.G)
2. To determine the relationship between sales promotion and performance
3. to make recommendations based on the findings that shall come out with