title page. an appraisal of the promotional …
TRANSCRIPT
TITLE PAGE.
AN APPRAISAL OF THE PROMOTIONAL STRATEGIES USED BY
MANUFACTURERS OF CONSUMER GOODS IN ENUGU.
(A CASE STUDY OF HARDIS AND DROMEDAS LTD)
BY
LAWRETTA UCHENNA EZE
(PG/MBA/2007/46712)
A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR AN AWARD OF THE MASTER OF BUSINESS
ADMINISTRATION (MBA) IN MARKETING.
DEPARTMENT OF MARKETING
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA
ENUGU CAMPUS.
MARCH, 2009.
DECLARATION.
I, Lawretta Uchenna Eze of the Department of Marketing, Faculty of
Business Administration, University of Nigeria Nsukka, Enugu Campus do
solemnly declare that this research work presented for the award of Master
of Business Administration (MBA) in Marketing was carried out by me
under the supervision of my supervisor, Prof. J.O. Onah of Department of
Marketing, UNEC.
…………………………………… ………………………………….
Lawretta Uche Eze. Date.
CERTIFICATION.
This is to certify that Lawretta Uchenna Eze (PG/MBA/2007/46712) of
Department of Marketing, UNEC. concluded a research on Appraisal of The
Promotional Strategies used by Manufacturers of Consumer goods in
Enugu. ( A case study of Hardis and Dromedas Ltd). This research work is
original and has not been submitted in part or in full for award of any other
degree to this or any other university.
……………………………………. ………………………
Prof. J.O.Onah. Date.
……………………………………… ………………………
Dr. Mrs. G. Ugwuonah. Date.
Head of Department, Marketing.
DEDICATION.
To my ever-loving and adorable parents,
Chief & Mrs. M.O. Eze.
ACKNOWLEDGEMENTS.
I express my immense and sincere gratitude to all those who contributed in
one way or the other in making this dream a reality. In the first instance, I
give the Almighty God all the glory and honour for making all things
possible in my life.
My indebtedness goes to my supervisor, Prof. J.O. Onah who in spite of his
position and busy schedule gave all his possible time and his fatherly
supervision which saw this work up to this point.
I am grateful as well to all the members and staff of Marketing Department
especially my former HOD, Dr. Mrs Justie Nnabuko, whose valuable
suggestions and simplicity, I always admire.
My profound gratitude goes to my boss, Engr. C.U.Ezedozie and Dr. Mrs.
Nkemka Emordi for their time, guidance and understanding throughout the
period of this programme, while not forgetting my class mates and special
friends who for want of space, I cannot mention their names here. I thank
you all.
In a special way, I thank my parents, Chief and Mrs. M.O. Eze for being the
best parents ever in the whole world and my siblings for all their love and
prayers. I love you very much and I owe you all much.
Lawretta Uchenna Eze.
TABLE OF CONTENTS.
TITLE PAGE:…………………………………………………………………….I
DECLARATION:…………………………………………………................II
CERTIFICATION:……………………………………………………………...III
DEDICATION:…………………………………………………………………..IV
ACKNOWLEDGEMENTS:……………………………………………………..V
TABLE OF CONTENTS:……………………………………………………….VI
ABSTRACT:………………………………………………………………………IX
CHAPTER ONE-INTRODUCTION:……………………………………1
1.1 BACKGROUND OF STUDY:……………………………………………1
1.2 STATEMENT OF PROBLEM:………………………………………....6
1.3 OBJECTIVES OF STUDY:………………………………………………8
1.4 SIGNIFICANCE OF STUDY:…………………………………………..9
1.5 RESEARCH QUESTIONS:…………………………………………….10
1.6 HYPOTHESES FORMULATION:…………………………………….10
1.7 SCOPE AND LIMITATIONS OF STUDY:………………………...11
1.8 DEFINITIONS OF IMPORTANT TERMS:…………………….….11
CHAPTER TWO-REVIEW OF RELATED LITERATURE:…….14
2.1 NATURE OF COMMUNICATION:………………………….……….14
2.2 PROMOTION AND COMMUNICATION PROCESS:…………….16
2.3 THE ROLE OF PROMOTION IN A FIRM’S MARKETING
PROGRAMME:…………………………………………………………………….20
2.4 ANALYSIS OF VARIOUS PROMOTIONAL TOOLS:………………22
2.5 ADVERTISING:……………………………………………………………23
2.6 SALES PROMOTION:……………………………….…………………..33
2.7 SALES PROMOTION STRATEGIES:…………………………………38
2.8 SERVICES RENDERED BY SALES PROMOTION:……………….38
2.9 PERSONAL SELLING:……………………………..…………………….41
2.10 PERSONAL SELLING PROCESS:……………..………………………42
2.11 PUBLICITY:………………………………………..……………………….48
2.12 TYPES OF PUBILICITY:…………………………….……………………50
2.13 EVALUATING THE PUBLICITY RESULT:…….………………………51
2.14 PUBLIC RELATIONS:………………………………………………………52
2.15 OBJECTIVES OF PUBLIC RELATIONS CAMPAIGN:.………………53
2.16 FACTORS THAT INFLUENCE THE CHOICE OF PROMOTIONAL
TOOLS:………………………………………………………….…………….54
2.17 ROLES OF PROMOTION IN THE ECONOMY:…………..………….57
CHAPTER THREE-RESEARCH DESIGN AND METHODOLOGY
3.1 RESEARCH DESIGN:……………………………………………………..60
3.2 POPULATION OF THE STUDY:………………………………………..60
3.2 SAMPLING TECHNIQUE:………………………………………………..61
3.4 METHOD OF DATA COLLECTION:…………………………………….61
3.5 QUESTIONNAIRE DESIGN:……………………………………………...62
3.6 METHOD OF DATA ANALYSIS:…………………………………………63
CHAPTER FOUR-DATA PRESENTATION, ANALYSIS AND
DISCUSSION………………………………………………………………………64
4.1 INTRODUCTION:……………………………………………………………64
4.2 QUESTIONNAIRE DISTRIBUTION AND COLLECTION:………….65
4.3 DEMOGRAPHIC DATA OF RESPONDENTS:………………………..66
4.4 TEST OF HYPOTHESES:………………………………………………….78
CHAPTER FIVE-SUMMARY, CONCLUSION AND
RECOMMENDATIONS…………………………………………………………92
5.1 INTRODUCTION:……………………………………………………………92
5.2 SUMMARY OF FINDINGS:……………………………………………….92
5.3 CONCLUSIONS:……………………………………………………………..96
5.4 RECOMMENDATION……………………………………………………….97
REFERENCES.
APPENDICES.
ABSTRACT
This research work appraises the effectiveness of different Promotional
strategies and tools adopted in the marketing of consumer goods in Enugu
(with special reference to Hardis and Dromedas Ltd Emene, Enugu). These
Promotional tools, when adequately and correctly adopted create the
needed awareness on the product and equally facilitate their marketing.
The objective of this study is to present the different promotional tools,
analyze them and know which one to adopt at a particular time to win
more customers. To conduct this study, three hypotheses were formulated.
Questionnaires were designed and administered to consumers at
establishments within Enugu metropolis. The data were analyzed using
appropriate statistical tests and tools (Analysis of Variance ANOVA and Chi-
square). The findings as indicated by the result of the hypotheses revealed
that promotional activities influence in no small measure the buying habits
of consumers of Hardis and Dromedas products in Enugu. Advertising
followed closely by sales promotion were observed to be the most
influential promotional tools preferred by consumers of their products. The
study recommended that manufacturers of these goods should give more
credence to advertising, sales promotion, personal selling, publicity and
public relations in their respective order when formulating promotional
tools.
CHAPTER ONE
1.0. INTRODUCTION.
1.1. BACKGROUND OF STUDY
Marketing as a business concern is much more than developing a good
product, pricing it correctly, and ensuring easy and ready availability of the
product to customers. It also entails the development of a good
programme of promotion.
Promotion is one of the four major components that make up the
marketing mix popularly known as the 4ps of marketing. It has to do with
the marketers’ means of communicating his product offerings, marketing
programmes and activities to the actual and potential customers. Through
marketing promotion, consumers are informed about the existence of a
product and equally persuaded to buy. It is therefore a very potent
means of educating consumers, creating good image for the firm and its
products, and increasing level of patronage. It embraces all information
between buyers and sellers in order to influence their attitudes and
behaviours. The forms of this promotion tools are advertising, personal
selling, publicity, public relations and sales promotion.
Even though each of the aforementioned promotional tools could be used
on its own to achieve the firms marketing objectives, a good blend of most
of them is required in formation of an effective promotional strategy and
the attainment of promotional synergy.
It has been established that any marketing or production firm without a
very strong promotion is bound to fail, in other words, if a company
produces a very standard product with fair pricing policy and carries out all
other aspects of product development but fails to create awareness of it
through promotion, that product will not make it simply because
consumers and potential customers are unaware of the existence of such
product. On the other hand, when proper promotional activities are
included, the product will not only sell fine but have competitive edge over
other similar products.
According to Kotler and Keller (2006), Promotion is communicating
information between seller and potential buyer or others in the channel to
influence attitudes and behaviour. The marketing mangers’ main
promotional job is to tell target customers that the right product is
available, at the right place and at the right price.
Promotion as described by Udeagha (2003) has its origin in a Latin word
meaning “to move forward”, today it is seen as a communication
undertaken to persuade others to accept ideas, concepts or things.
Onah and Thomas (2004) gave the tasks of promotion as communicating
with the consumer and providing him with information which will lead him
to use the product or service, providing him with enough incentives that
would induce him to accept the product and offer him invitation for
immediate action.
In Nigeria, as in many other parts of the world, the successful marketing of
consumer goods depends to a large extent on the promotional tools
adopted by the firms within the industry. Such consumer goods industry is
filled with firms that manufacture closely substituted brands of products.
These firms need to create the desired awareness for their product and
arouse the consumers’ interest to purchase their product. They have to
adequately back-up their product, price and distribution strategies with
very sound promotional tools.
The Researcher intends to study the promotional tools adopted in the
marketing of consumer products in Enugu with Hardis and Dromedas as
the case study. This is the largest firm that almost control the production
and manufacturing of household and industrial hygienic and beauty
products in Enugu.
Hardis and Dromedas Ltd was incorporated in Nigeria, as a Limited
Liability Company in the year 1993 and commenced business operations
the same year. It has three manufacturing plants engaged in
manufacturing of fine household, industrial hygienic products and beauty
care products. The hygienic products help in improving the standard of
living of users by keeping disease causing gems, fungl and bacteria away
resulting in improved health.
The Head office and major manufacturing plant is located in Emene
Industrial Estate, Enugu South Eastern Nigeria. They have branch offices in
major cities of Lagos, Port Harcourt, Aba, Onitsha, Uyo, Jos, Kaduna,
Abuja, Makurdi amongst others and a nationwide distribution network that
ensures availability of their products at uniform and affordable prices
across Nigeria.
Hardis and Dromedas Ltd is an organization that puts the welfare of staff
as part of their core values because their success is attributable to
commitment of the employees. They also continuously strive to update
their skills while exposing them to the latest technology and expertise
available to various operations.
Their products are equally manufactured in the most environmentally
sustainable process exceeding the standard of regulating authorities hence
ensuring certification and registration of the products accordingly. As a
responsible corporate citizen, Hardis aids the economic development of our
country by creating new wealth and jobs for our teaming youths while
ensuring that their investors get good returns on their investments.
Hardis and Dromedas Ltd has six ranges of products under their
manufacturing.
1. Extra Isol: This is the all round winner for fighting germs. It is a
concentrated Germicide formulated to fight germs in domestic and
industrial settings. It maintains a germ-free environment.
2. Ekko Rose Water: It is a fragrant solution, air fresher and odour
neutralizer, it is carefully blended with choice flowers from worlds
plains of sub-Saharan Africa. Rose water solution destroys germ
while deodorizing your environment at home and other places.
3. Divitol Antiseptic Disinfectant: Formulated to kill disease carrying
germs and ensuring healthy families, it is suitable for personal
hygiene, households, offices, hospitals and large institutions.
4. Akacha Cleansing Soap: Made from rich natural and vegetable oil
with properties to clean and sooth the skin Akacha Beauty care range
of cleaning soap and astringent is for your natural ingredients found
only in Africa.
5. Combo Synthetic Soap: This was manufactured for washing of
clothes, plates and even taking baths. It has ingredients that will
wash clean and at the same time protect your skin.
6. Royallux range of products: This consists of Royallux cleansing
lotions, Royallux soap, Royallux dishwasher, Bleach, Removers and
spirits amongst others. They are specifically made to aid in household
activities and general care of our bodies.
The company’s promotional tools during its inception mostly included the
use of advertising, publicity and personal selling but in the late nineties,
the company adopted the use of sales promotion.
The company carries product brands that are close substitutes to other
nearby companies. They closely monitor the market to observe and adjust
to any changes in the promotional tools, like adopting adverts in line with
the dictates of the time and regularly embarking on sales promotions in
order to arouse interest on their products, and obtain their action through
regular purchase of their products. This company Hardis and Dromedas Ltd
constantly depend on available promotional tools to improve and maintain
their market shares.
This study shall focus mostly on advertising and sales promotion being the
two major promotional tools currently used by the company and very little
emphasis shall be placed on publicity, public relations and personal selling
because of the little impact they have on consumer products in Enugu.
1.2 STATEMENT OF THE PROBLEM
In Nigeria, as in many other developing countries of the world,
improvement in the level of technology and economic development has
caused an improvement in the consumption pattern of the people. Thus,
establishment of many new consumer manufacturing companies in the
country and consequently bringing about stiff competition from other
upcoming foreign firms and local ones.
Hardis and Dromedas particularly as indicated by the Chief Executive
Officer is faced by numerous problems which militate against the smooth
running of the organization. These problems range from poor and
inadequate public power supply, lack of portable water, high cost of
product haulage, poor road network, lack of local funds, multiple product
taxation among others.
These developments and others have threatened the existence of many
firms within the industry because they all manufacture products that are
very close substitutes to each other, thus they need to adopt good
promotional tools in order to captivate the interest of the consumers,
arouse their desire for the product and maintain their market share.
It has been observed equally that some products especially new ones failed
to fulfill the objectives and goals of making adequate returns simply
because they don’t sell in the market. Promotion which does the work
educating, informing and persuading the consumer to buy certain products,
when lacking constitutes problems of products failure and death.
A marketer, who produces a good or service and sits back awaiting great
things to happen, usually discovers that not much do happen. The firm
needs to tell its story. The fact still remains that after you have produced
the best product, packaged it brilliantly, priced it rightly, distributed it
magnificently and positioned it to best meet the needs of the customers,
you would have wasted all these marketing efforts if nobody knows you
have done these things. This is the essence of promotion.
1.3 OBJECTIVES OF STUDY
The aim of this study is to identify and appraise different Promotional tools
used by manufacturers of consumer products in Enugu, using Hardis and
Dromedas as a case study. This will be determined through the objectives
outlined below:-
1. Find out whether consumers purchase Hardis and Dromedas products
due to its promotions.
2. Find out the types of promotional tools mostly used by Hardis group.
3. Highlight to the manufacturers the importance of promotion and its
tools with a view of generating greater sales and returns.
4. Make recommendations based on the result of the above
examinations.
1.4 SIGNIFICANCE OF STUDY
Hygienic and beauty products are indispensable in every homes and large
establishments like hotels, hospitals, schools and even churches. They go a
long way in refreshing and promoting cleanness and healthy living.
The Nigeria publics now prefer home-made beauty products because of
continuous pronouncements on the deadly effects of continuous use of
foreign products. Hardis and Dromedas adopt different promotional tools
within the industry to create awareness and attract customer’s patronage
but it was observed that the ones they use are not enough. There is need
for more awareness of their products to cover more areas. Also, with
different promotional tools available, sometimes they get confused on
which promotional tools to use in order to win more customers. This study
will help them and other firms to identify the promotional tools that have
the greatest and least influence in the Nigerian consumers as well as the
tools that will yield the best result.
Finally, this study intends to arouse further interest in the areas of
marketing and promotion which has not been given the maximum attention
they deserve in Nigeria and most of other developing countries. In
addition, it will help the management of Hardis and Dromedas Ltd in
proper allocation of promotion budgets. It will also be of great help to
subsequent researches on this or familiar field of study.
1.5 RESEARCH QUESTIONS.
The study intends to answer the following questions:
1. What are the types of promotional tools normally used by Hardis and
Dromedas Group?
2. Do the promotional tools adopted by Hardis group have any influence
on the buying habits of consumers?
3. Which promotional tool provides the most significant effect on
customers among all the promotional tools?
4. Is there any difference on the rate of sales when the organization
and their products are being promoted and when they are not?
1.6 HYPOTHESIS FORMULATION
Hypothesis One:
Promotional activities do not influence the consumers buying habits.
Hypothesis Two:
None of the promotional components is more influential on the consumers
than the others.
Hypothesis Three:
Promotional activities do not contribute to high profitability of the
organization.
1.7 SCOPE AND LIMITATIONS OF STUDY
The nature of the study requires extensive coverage of all the Local
Government Areas in Enugu State but only the Local Government Areas
within Enugu metropolis were covered due to time and financial constraints
and for the fact that Hardis and Dromedas has its major plant in Enugu.
For this reason, Enugu North, Enugu South and Enugu East Local
Governments Areas were studied with special attention on three major
layouts within each Local Government council.
1.8 DEFINITIONS OF IMPORTANT TERMS
I. Promotion: This is one of the marketing mix which performs the
role of persuading, communicating and creating awareness of
existence and features of products to the target audience. It consists
of advertising, publicity, personal selling, sales promotion and public
relations.
II. Advertising: It is an impersonal form of communication of ideas,
goods or services that is paid for by an identified sponsor and is
relayed by the mass media to the public.
III. Publicity: This involves having information about an organization
disseminated through the mass media without the organization
paying for this exposure.
IV. Personal selling: This is a face to face communication between
company sales representatives and customers designed to influence
the customer to buy the company’s product.
V. Sales promotion: This is defined by the American Marketing
Association as those activities other than personal selling, advertising,
publicity, public relations that stimulates consumers purchasing and
dealer’s effectiveness. They include contests, sweepstakes, coupons,
premium trading stamps etc.
VI. Public Relations: This is the deliberate, planned and sustained
effort to establish and maintain mutual understanding between an
organization and its public.
VII. Contest: This calls for a consumer to submit an entry, a jingle,
crown etc to be examined by a panel of judges who will determine
and select the best of winning entries.
VIII. Premium: An item of merchandise that is offered at a relatively low
cost as a bonus to purchasers of a particular product. This is a form
of sales promotion.
IX. Coupon: This is a certificate that entitles the bearer to a stated draw
on the purchase of a specific product.
X. Competition: This is an opportunity for consumers to participate in
a sweepstake, contest or game.
XI. Sampling: An effective way of inducing people to try a new product
because you put some of the products right into their hands for free.
XII. Promotional synergy: This refers to the simultaneous use of
separate promotional elements (such as advertising, personal selling,
publicity, sales promotion and public relations) such that the total
effect of the joint effort is greater than the sum of the individual
effort.
CHAPTER TWO
2.0. REVIEW OF RELATED LITERATURE.
2.1 NATURE OF COMMUNICATION
In the context of marketing promotion, the process of sending messages to
your various audiences is called marketing communications. It starts with
the communication fundamentals and adds several topics: the process of
moving customers from awareness of your product all the way through
purchase to satisfaction, the distinction between mass and personal
communications and the difference between controlled and uncontrolled
communication (Engel, Wales and Warshaw,1975)
There are a number of distinct phases in the process of communicating
with consumers. These phases give you insight into the prospect’s state of
mind as he or she moves toward a purchase.
Phase One: Awareness: The first step in communicating with the
market is to make sure that the market is aware of your products. People
cannot but things they don’t know about.
Phase Two: Comprehension. Once the market is aware, you need
to make sure that potential customers understand what you are offering.
This is not much of a problem with peanut butter or roofing nails but it can
be a big challenge with computer-aided design software or genetically
engineered medicines.
Phase Three: Acceptance. After they understand your product,
prospects decide whether or not they accept your product as a
solution to their individual problems. Customers reject products for a
variety of reasons ranging from logical to emotional.
Phase Four: Preference. At this stage, buyers consider the
products they accept as potential solution and they choose a favorite.
Be careful here; just because customers prefer your product doesn’t
mean you’ve got it made. For instance, what if they can’t find it in
the stores where they normally shop?
Phase Five: Ownership. This is a critical phase in the
communication process because you have to motivate buyers to take
action. They can sit passively during the first four stages as you
furnish them with information, but now they have to participate or no
sale will take place. This section is known as the “call to action”.
Phase Six: Satisfaction. At this point promotion has done most of
its job. But it can still help in an important way by increasing
customer satisfaction and putting the buyer’s mind to rest about
making the purchase. It can do this by providing useful information
that helps the customers use your product more effectively and
efficiently. (Tull and Kahle, 1990).
2.2 PROMOTION AND THE COMMUNICATION PROCESS
Promotion is first and foremost a process of communication, whether the
message is words or visual images, education or persuasion, what is
involved is communication. Effective promotion for today’s firms require an
Integrated Marketing Communication (IMC) concept. It entails the firm
answering the extremely difficult questions of what it wants to be and how
it intends to achieve it. The company that needs growth, popularity and
acceptability must as a necessity develop an effective programme of
communication and promotion.
Most firms and industries (especially those existing in the consumer goods
industry, have recognized this fact and have responded by seeking and
adopting good promotional tools as a means of communication that will
attract the attention of the customers, capture their interest, amuse their
desire and prompt them into action.(Nwosu,2005).
According to Kolter (1986), this can be done through the use of personal
influence and non-personal influence channels. The process of getting an
idea from one persons mind into another is extremely complex. The sender
may not verbalize the thoughts in exactly the same form as it was
conceived and the receiver might not reach any of a number of conclusions
depending on experience, mood or motivation. And in between these two
people, the message can be interfered by noise and competitors messages
that is messages from other senders.
In order to study the communication process and its effect on marketing
promotion, it is necessary to simplify this complicated situation – as done
below by Tull and Kahle (1990).
Source/Sender: The source generates the idea to be transmitted
and is responsible for encoding it as well.
Encoding: Most of us lack the ability to transmit our thoughts
directly to an audience. We have to first convert these thoughts into
a form that we can transmit, a process known as encoding. It is the
process of converting an idea into symbols (words and images) to
make it compatible with transmission and decoding facilities.
Message: An idea that has been encoded and is capable of being
transmitted.
Medium: The message is carried to your audience by the medium.
The channel used to carry a message; this includes sales
presentations, newspapers, radio, television and direct mail materials.
The medium can also be referred to as the channel.
Decoding: When people in your audience attempt to extract the
idea from your message, they are going through a process called
decoding which is the reverse of encoding. This is the process an
audience go through to translate a message into an idea with
personal meaning.
Audience: The person or persons receiving a transmitted message.
They play a key role in communications. Identification and analysis of
your audience are very important to find out what they think, feel
and believe.
Response and feedback: After the audience decodes your
message, the people will respond according to how well the message
was communicated. They may respond positively or negatively to
your message depending on a variety of factors.
Noise: Anything that distracts the effectiveness of communication,
ranging from actual audio noise to competing advertisements.
Company’s’ communication according to Powers (1990) goes beyond
specific communication platforms, but to product configuration and price,
packaging, shape, colour, sales persons manner and comportment, all
communicate something to the buyers. The diagram below shows a
communication model with nine elements. Two represent the two major
parties in a communication: Sender and Receiver. Two represent the two
major communication tools – Message and Media. Four represent major
communication functions – Encoding, Decoding, Response and
Feedback. The last element is Noise.
ELEMENTS IN THE COMMUNICATION PROCESS
Sender Encoding Message
Media
Decoding
Receiver
Feedback
Response
Noise
Source: Kolter and Keller (2007)
2.3 THE ROLE OF PROMOTION IN A FIRMS’ MARKETING
PROGRAMME
Promotion is a very important aspect of a firm’s marketing programme and
according to Chisnall (1987), if promotional activities are not in harmony
with the decisions on product, price and place then a confusing and
distorted image of a firm will be created to members of the public.
Bovee and Thill (1992) state that promotion is aimed at eliciting from a
target buyer, a reaction that is favourable to the firm and its product. To
them, promotion encourages all the tools in the marketing mix whose
major role is persuasive communication.
Courtland and Thill (1992) explained several roles that promotion play in
marketing as the followings:
Providing information: Both buyers and seller benefit from the
informational function that promotion is able to perform. Buyers find
out about helpful new products and sellers can inform prospective
customers about goods and services.
Stimulating demand: One of the most obvious and direct purposes
of promotion is to stimulate demand. Marketers want you to buy their
products and they use promotion to inspire you to such action.
Differentiating products: Many organizations try to differentiate
themselves and their products through the use of promotions. This is
particularly important for products that are not inherently much
different from their competitors.
Reminding current customers: Even your existing customers are
a good audience for promotional messages. You should remind
customers of your product benefits to keep them from switching to
competitors when it is time to replace or upgrade.
Countering competitors: Promotions can also be used to counter
the marketing efforts of competitors. For instance, Pepsi and Coca-
cola have been locked in a competitive promotional battle for years.
Responding to negative news: Sometimes, promotion is used to
correct or respond to some remarks interpreted as derogatory from
competitors or even from other far and distant groups.
Promotion according to Agbo (2000) go a long way in smoothening
demand fluctuations, persuading decision markers and influencing public
behaviour.
To Nwokoye (1989) promotion is mostly used to institute a push or pull
strategy, these two strategies are open to competing firms to gain or
maintain their existing market share. The push strategy relies heavily on
the direct sales approach through offering wholesalers and retailers trade
deals (free or discounts or allowances) and useful display of materials
(point of sales display).
On the other hand, the pull strategy entails encouraging the consumers to
demand for the company’s product thereby creating the middlemen
interest in carrying the product. This involves the use of effective
advertising, consumer sales promotional contests and publicity. Balancing
the push and pull strategy essentially, implies creating some harmony in
the system and ensuring promotional synergy.
Bush and Houston (1985) also gave an economic perspective of the role of
promotion. Here the goal of promotion is to influence the firms demand
curve by making it more inelastic at higher prices and more elastic at lower
prices.
2.4 ANALYSIS OF VARIOUS PROMOTIONAL TOOLS
When people think about promotion, they frequently take one of the two
extreme positions. They may believe that the field of marketing consists
entirely of promotional activities such as advertising because it is such a
highly visible part of our everyday lives. People who take the other extreme
see promotional activities as unnecessary and thus wasteful. They perceive
that promotion costs are very high and believe these costs drive prices
higher. Viewed from this wider perspective, promotion can play
comprehensive communication role. Some promotional activities can be
directed towards helping a company justify its existence and maintain
positive groups in the marketing environment (Maduka, 2004).
Generally five elements of promotional mix are identified, namely
advertising, public relations, publicity, sales promotion and personal
setting.
2.5 ADVERTISING
Advertising is a powerful marketing communication tool used by companies
to fulfill the promotional task. It is an impersonal form of communication or
presentation of goods, ideas, or services conducted through paid media
under open or identified sponsorship. Everything about advertising
involves: a sponsor sending a message called “advertisement” through one
or more mass media (radio, television, newspapers, magazines) to reach
large number of potential users or buyers of a product. By itself,
advertising is a vital marketing tool that helps to sell goods, services,
images and ideas through information and persuasion Adirika, Ebue and
Nnolim (1996).
The American Marketing Association (AMA) defined advertising as “any
paid form of non-personal promotion and presentation of ideas, goods or
services by an identified sponsor.
Stanton (1975) calls it “all activities involved in presenting to a group, a
non personal, oral or visual, openly sponsored message regarding a
product, service or idea. This message called an advertisement is
disseminated through one of more media and is paid for by a sponsor.
Nwosu (2000) defined Advertising as a mass and marketing communication
form or practice whose aim is to create awareness for products, services,
ideas, products, institutions, or individual (example, politicians in political
advertising) and persuade the right target audiences or consumers to
purchase, accept, adopt, vote, or engage in other behaviour desired by the
sponsor of the advertisement.
Many companies consider advertising as a superior promotion tool to
personal selling sales promotion or publicity. This is because advertising
provides multiple presentations to classes of people with one message;
prospect. Firms allocate the largest share of their promotional budget to
advertising as an indication of its vital role in the sale of a product.
Reasons for advertising that warrant such expenditure. These reasons
are seen in line with the communication objectives of the sponsor
and they are: Wright (1983).
Introduce a new product
Retain an established product.
Create flow of traffic for retail products.
Secure sales leads.
De-market a service.
Promote public course.
In the last case, many non-profit, charitable organizations use advertising
in promoting public cause. For example, the Nigeria Council of Women
Society (NCWS) launched an advertising public cause campaign on
adolescent girl- education.
Advertising is both controlled and identifiable and being non-personal by
definition is a reliable means of mass communication. Advertising is a
means of informing and persuading the consumers and it must create
awareness or arouse interest. Advertising is often taken care of internally
or externally by the organization. In doing this, the organization would
have its advertising department or agencies outside the organization to
carry out advertising services or projects.
Advertising does not sell its products by itself. The purpose of advertising is
to enhance potential buyers’ responses to the organization and its
offerings. It seeks to do this by providing information, trying to instill
desires and supply reasons for preferring the particular organization’s
offerings.
Advertising has a number of positive purposes yet it has drawn criticisms
from certain members of the public. Canfield and Moore (1990) mentioned
that despite the ability of advertising to accomplish certain goals,
advertising expenditure is often not well and wasted as a result of poor
objectives or goals. Advertising goals should be stated in communication
terms only if meaningful measurement of results is to follow.
James Ferguson maintains that advertising is a social institution but he also
observes that its cost and benefits should be evaluated to determine the
total impact in our society. According to him the issue is not whether
advertising is effective, but whether the benefits of advertising outweigh
the cost, so that social welfare is greater with advertising.
Martin Mayer explained that only the very brave or the very ignorant can
say exactly what advertising does in the market place. An advertising
executive was alleged to have commented yesterday “we ran an advert for
a night watchman and last night we were robbed”. These and other critical
comments may contain some truth but when closely examined, advertising
is not counter to public interest. Wright (1983).
Frank (1995) justifies the cost of advertising in two ways. “It enables the
consumer to enjoy the product (and to choose between competitive
products), it also enables the suppliers to enjoy profit and gain edge over
rivalries. It is an acceptable fact that prices fall as advertising increases
demand, and if advertising is stopped, demand would also fall and either
the product will fail to sell or price will increase.
2.5 ADVERTISING OBJECTIVES.
According to Stanton (1975) “the only purpose of advertising is to sell
something; a product, a service or an idea. The ultimate effect of
advertising should be to modify the attitudes and or behaviour of the
receiver of the message”.
Before an advertising programme or campaign is developed, advertising
objectives must be set. These objectives will flow from earlier decision
making about marketing mix and target market. It is marketing mix
strategy that defines the job advertising has in total marketing plan.
According to Dalrymple and Parsons (1990), under most conditions the
primary objective of a firm is profit. Consequently, we should select the
advertising alternatives that generate the highest present value of long-
term profits. Non-profit organizations focus on net benefits rather than on
profits”.
In setting advertising objectives the DAGMAR approach (defining
Advertising Goals for Measured Advertising Result) is one method that can
be used. From this method, all advertising objectives should be precisely
defined; the target audience, the desired percentage change in some
specified measure of effectiveness, and the time frame in which that
change in to occur.
Advertising Objectives could be:
to create awareness, build preference, encourage purchase now
rather than later, consolidating an existing reputation and correct
misleading information or claims of others by transmitting
information to encourage understanding.
to improve the dealers relationships.
to remind the customers very often about the product(s).
Reach people inaccessible to sales force as the place they can reach
are limited.
enter a new geographical market or attract new customers. This
helps to expand sales.
to improve customers attitudes towards the product(s)
build goodwill for the company and improve its reputation
communicate new information about product features.
strengthen association of the brand with powerful purchasing motives
and determine consumers’ attitudes.
stimulate high rate of re-purchase; dissemination about sales,
services or events, announcement of special sale and for building of
an organizations’ image or brand of a product.
Advertising allows for a message to be repeated many times and mass
advertising by an organization engaged in selling shows the size, popularity
and success of the organization.
A complete communication system usually provides for a feedback path
through which reverse information flows from the receiver to the sender in
order to enable the sender to know the impact his original message has
produced on the receiver.
Unfortunately, advertising does not provide for a direct feedback and it
looks more like a one – way communication. One can think of consumer
purchases as providing an indirect feedback to the sponsor regarding the
effect of the advertising.
The marketer knows that merely loading people with information about a
product is not enough. A carefully designed persuasive message is needed
to gain initial trail or increased purchases of the product in the face of
competition.
How advertising works and its effectiveness
There has been a long debate about how advertising works, whether it
actually converts or primarily reinforces existing attitudes.
Advertising can have a variety or influences such as supplying information,
reminding consumers of past sources of satisfaction and affecting attitudes.
It can also call for varying responses from target groups. Whether or not
advertising aims at a direct response or the seeking of future information
will depend very much upon the media used and the target group.
Some advertising aims directly at a need, hoping that target groups will
identify with some conditions portrayed and welcomes the suggestion
given as to how this might be dealt with. Adverts of this kind can link a
product to a particular occasion, for example a bedtime drink. One of the
disadvantages of this approach is that the product in question may no
longer be consumed on other occasions.
Given the uncertainty regarding how and why advertising works, various
members of an advertising department have developed their own pet
theories. This can lead to disagreements and conflicts. It would be
convenient if we could measure the result of advertising by looking at
sales. Certainly some breakthrough ads do have direct effect on a
company’s sale and the advertising literature is filled with success stories
that “prove” advertising increases sales ideally, advertisers should pre-list
advertising before it runs rather than relying solely on their own guesses
about how good advertising will be.
The judgment of creative people or advertising now demand laboratory or
market tests to evaluate an advertiser’s effectiveness. There has equally
been a lot of critical comments about effectiveness of advertising in market
place. The most notorious of these is accredited to Lord Leverhume who
stated that…. “One half of each advertising money spend is wasted, but I
do not know which half”. Martin Mayor explained “only the very brave or
the very ignorant can say exactly what advertising does in the market
place”. Research is carried out to produce a good evaluation. Research will
pin point problems areas within the advertising effort that require
improvement. Nwosu (2007) noted that research has invariably helped to
increase advertising results by telling marketers more about the followings:
The relationship between liking an advertisement and its
effectiveness,
The impact of repetition on customer irritability and on sales.
The impact of products setting in a television commercial and its
adoption.
The impact of advertising intensity, or customers’ reaction in terms of
expenditure of advertisers, money and exposure.
The value of segmentation.
The impact of product life cycle on advertising effectiveness.
Types of Advertising
There are many ways to categorize advertising as given by Dalrymple and
Parsons (1990) and their importance in understanding their development.
They are the followings.
Institutional Advertising: This is when advertising is promoting
the name or image of an organization rather than its goods and
services. There is equally a number of reasons for promoting a
company’s image positively; encouraging investment, attracting
talented employees, lobbying government officials, opening doors for
sales people among others. Adirika, Ebue and Nnolim (1996)
described it as “goodwill” advertising designed to promote the firms
overall quality image or reputation. Example is an advertisement by a
sports manufacturing company urging the public to exercise for
survival”.
Product Advertising: In contrast to institutional advertising, many
advertising focus directly on specific goods and services, leading to
the term product advertising. This advertising promotes specific
products while promoting the supplying company to a lesser degree
or not at all.
Competitive Advertising: This tries to promote specific product
features as better than those offered by competitors.
Comparative Advertising:
This is a special case of competitive advertising that explicitly
compares a product with one or more competitive products. This is to
build selective demand. (Bennet and Blyth, 2002).
Evans and Berman (1982) identified other types of advertising as Direct-
action Advertising that tires to motivate customers to take action
immediately after being exposed to the advertising. Indirect-action
Advertising also tries to influence future purchases and other actions.
Pioneer advertising builds primary rather than selective demand and
Reminder advertising which aims at existing customers, telling them that
products they have adopted are still available.
Keegan (2002) equally mentioned other types of advertising as Retail
advertising, Local, Co-operative, Trade, Industrial, Farm and Professional
advertising.
Subliminal advertising which is a type of advertising that purportedly
attempts to influence, consumer perceptions and behaviour through
symbols that are not consciously decoded, both the existence and
effectiveness of subliminal advertising are unproven (Jefkins, 1983).
2.6. SALES PROMOTION
Sales promotion can be said to consist of all miscellaneous forms of
promotion mostly of the non-personal variety, but in some cases involving
a mixture of personal and non- personal channel. Sales promotion
according to Allvine (1987) offers potent ways to tie a promotional
campaign together, infusing it with added strength”.
Sales Promotion has been variously looked at, by different marketing
authors. Two of these are by Tull and Kahle (1990) that see it as a short
time price, prize (gift) or product incentives designed to induce purchase
when offered to distributors, industrial users or consumes.
Onah and Thomas (2004) defined sales promotion as those marketing
activities other than advertising, personal selling, publicity and public
relations that stimulate consumers purchasing and dealers’ effectiveness.
These activities could be displays, shows and exhibitions, demonstrations
and various non-recurrent selling efforts. In effect, sales promotions, is a
catch-all category. It includes all forms of promotion other than those
falling within one or another of the major categories. McCarthy and
Perreault (1996) defines sales promotion as those promotional activities
other than advertising, publicity and personal selling that stimulate interest,
trial or purchase by final customers or others in the channel. Sales
promotion is generally used to complement the other promotion elements.
It is generally a short run tool used to stimulate immediate increases in
demand. Some of the activities which are classified as sales promotion are
as follows:-
1. Product sampling and demonstration:
This is a situation where the customer either gets the product free or is
allowed to use it free of charge for a period of time. Sampling is useful for
attracting near users particularly when a product is introduced or improved
or at the entering of new markets. It is the “seeing is, believing” prospect.
Sampling is generally more effective when important aspects of products
features benefits cannot be fully conveyed in advertising or personal
selling. According to Benett (1988) “the most effective way to encourage
consumers to try a new product as well as the most expensive is to give
free samples”.
2. Couponing:
The consumer is given a leaflet (coupon) or voucher, which enables him or
her to buy a product at a cheaper price. Coupons are used to produce trials
and converts to regular users and to attract many prospects to the
product. One of the problems facing coupon promotion according to Benett
(1988) is that aside from the cost, some marketers question the
effectiveness of this tactic, claiming that coupons undercut the brand
loyalty that advertising seeks to establish”.
3. Premiums:
They are used to boost sales by creating product awareness and trial.
Premiums are of two main types: free in-mail and self liquidating premium.
Free-in-mail premiums offers a product free for the purchase of another
product e.g. free toothbrush for buying close-up tooth- paste.
4. Price-off (price reduction):
This provides a quick, defensive response to off- set a competitor’s
promotion. Price-off is a “Mark down” in the retail price of the product.
Price reductions could be employed by the manufacturer or the retailer. It
is usually printed at the packet or cover of the product.
5. Refund offers and Discounts:
This is a special consumer deal that is used to encourage customer to buy
and to reinforce brand loyalty. Refunds create interest and provide good
sales atmosphere or talking point for the sale people, and are often used to
attract special attention to the products package. Example is buying three
units of items for a price of two.
6. Sweepstakes contests and Games:
They usually attract high customer interest and consumer involvement and
also general new trials for the company’s products. Sweepstakes and
games generally require contestants to participate in the contest by
sending in an entry in a special stipulated format determined by the
promoters. Example one done by 7up company not long ago.
7. Trading stamps:
They are usually initiated by retailers, to create steady users. The appeal
as a promotion tool has declined rapidly due to the diminishing novelty of
saving stamps.
8. Point of purchase promotions:
These are incentives that are displayed at the point or purchase.
Manufactures provide advertising allowance and display allowance to
middlemen to enable them display their merchandise attractively and
encourage them to carry the manufactures products. This includes window
displays, tell tags, shelf talkers, banners and signs, counter displays,
clocks, logo etc.
9. Give-away:
These are special gift items to customer. The purpose is to remind and
reinforce a product or company message. Give-away items are usually
frequently used and relatively cheap items such as pens, pencils,
notebooks etc.
10. Trade deals:
These are buying allowance introduced to stimulate middlemen to carry
merchandise or to increase sales efforts. Manufacturers could offer to “buy
back from the middlemen unsold stocks of an old product in exchange for
stocking new and improved version by the middlemen e.g. vendors selling
magazines and newspapers.
11. Trade shows and exhibitions:
Many industrialists, professionals and manufactures participate in National
or state trade fairs or exhibitions. In Nigeria, the chamber of commerce in
connection with the Nigerian Association of Commerce, Industries, Mines
and Agriculture (NACIMA) organizes national trade exhibitions three times
in every year in three different zones. The zones are Enugu, Kaduna and
Lagos States.
12. Direct incentives:
Direct stimulation of the sales force is undertaken by manufacturers to spur
them to highest sales performances. Sales persons working for distributors
are also offered direct incentives to enlist brand support especially in
situations where these sales persons handle a large number of different
brands.
2.7 SALES PROMOTION STRATEGIES
Doole and Lowe (2001) gave the steps required to plan and implement a
sales promotion strategy as similar to those of advertising campaign. It
involves understanding the target audience, establishing objectives,
identifying resource constraints, selecting methods and carrying out the
evaluation.
Common objectives of sales promotions are equally listed as the
followings:
Gaining new customers
Retaining current customers
Increasing consumption
Increasing brand awareness
Increasing attention from intermediaries
Broadening distribution channels.
2.8 SERVICES RENDERED BY SALES PROMOTION
The promotional department of a company is responsible for the setting of
promotional objectives. Promotional objectives according to Onah and
Thomas (2004) must be precisely stated so that we know what message
we wish to direct to which customer group to attain what specific purpose.
If our destination is vague, we will not really know if we have reached it.
That is why the objectives of sales promotion will vary with the type of
target market.
1. For Consumers: the objectives include increasing buying response
by encouraging:
(a) “Shop and buy”:- This is to build trail among non-users and to create
in the consumer the desire to purchase.
(b) “Buy Bigger”:- Inducing more usage and purchase of larger quantity
and
(c) “Repeat purchase”:- Persuading customers to return again and gain.
2. For Retailers: objectives include selling efforts and intensity by
encouraging:
(a) More allocation of shelf space and large stocking of the firm’s
merchandize in the hands of the resellers – retailers and wholesalers.
(b) Special selling events and in store displays undertaking by resellers.
(c) Promotions by resellers to offset competitive promotions.
(d) Entry into new retail outlets.
3. For sales force: objectives include increased selling efforts by
encouraging:
(a) Call on more accounts or prospects
(b) Stimulating sales in off seasons.
“Over-all the objectives of sales promotion is to attract new buyers,
penetrate new markets, generate new customers and provide better values
and increased buying incentives for the firms customers” Adirika et al
(1996).
McMurry, (1996) however, suggested the following reasons for undertaking
sales promotional efforts.
Calling attention to product improvement
Informing buyers of a new brand of product
Improving market share
Accelerating usage rate by present users
Maintaining customers patronage and brand loyally
Obtaining dealer outlets
Securing additional shelf space and display
Creating talking points for sales force
Aiding in the products positioning.
Increasing dealer inventories in lieu of competition (this is called
“trade loading”).
2.9. PERSONAL SELLING
Personal Selling has changed from a simple process of persuading
customers to buy goods and services to a more complex activity in today’s
larger marketing function. The sales’ function is a major tactical area in
marketing and it is more important in the area of offering goods whiles
having a sensitive role to play in other vital areas of marketing research,
product development and promotion.
Personal selling is usually considered as the last bus-stop in the total
promotion journey. This is because the ultimate objective of most
promotional efforts is the sale by the actual consummation or fruition
typically depends on effective selling. Personal selling is used to get buying
action and transfer of title or closing a sale, while personal selling cannot
effectively replace other promotional efforts, the complimentary and
supplementary efforts of this promotion mix cannot be over emphasized.
The personal selling activities include:
Prospecting for Customers.
This is the search for or location of potential users of a company’s
product or services.
Communicating and educating customers.
This is the dissemination of information to actual and potential
buyers about the company’s products and services. In so doing the
salesman educates buyers on the uses and benefits of the company’s
products.
Selling
This is getting orders from customers and supplying the orders. It
involves the art of salesmanship approaching the prospect,
presenting sales and closing sales.
Servicing.
The sales person provides supporting activities to customers, such as
delivery, customer complaints technical assistance and advises on
how to merchandise making sure that retailer carry a sufficient stock,
give good shelf space and cooperate in sales promotion programme.
Information gathering.
The sales force constitutes a part of the company’s marketing
intelligence network. They monitor the market and conduct market
research. The tasks performed are quit varied and will depend on the
type of customers, the buying roles, the urgency of need of
customers etc.
2.10 PERSONAL SELLING PROCESS.
While the nature of selling defers from situation, there are however a
number of distinct activities involved in personal selling situation:
They are prospecting, pre-approach, approach, presentation, handling
objections, closing and follow-up.
1. PROSPECTING:
Prospecting is the search for potential customers. Some marketing
authorities refer to it as the search for “needers” that may be
changed to “wanters” and finally buyers. Prospecting is essentially
the first step in the selling process. The question is “Who is actually a
prospect? The answer to this question is “everybody”.
The goal of prospecting therefore is to locate or ferret out customers
who have needs that can be satisfied by the products and services
offered by the sales person. The methods of prospecting are varied
and numerous and include the followings:
a. Referrals/Endless chain:
This is the most popular way of obtaining prospects. It is based on
the idea that every customer, regardless of whether he or she has
made a purchase, is a course for prospect fending. This approach
takes little time and costs nothing.
b. Cold canvassing:
Here the salesperson calls on series of individuals seeking for
customers. The cold canvass approach is the least productive in
terms of time and effort spent.
c. Personal observation:
The salesperson in this method keeps his ears and eyes open, and
remain at alert to recognize any possible prospect. This means the
salesperson should develop in nose for prospecting.
d. Miscellaneous:
Sales people can develop leads from company records (by contacting
company suppliers, dealer bankers) and old magazines and through
friends in other organizations, trade association or clubs.
2. PRE-APPROACH:
This step produces information on each qualified prospect that will
help the sales person determine whether he should be pursued and
approached further with a selling proposition. Here the sales person
will find and analyze information regarding the prospects-their
specific product’s needs personal characteristics and buying styles.
This information is useful in selecting an effective approach. Pre-
approach will enable the salesperson to tailor his approach and
presentation to the personality of the prospect as well as to his
product needs or those of his company.
3. APPROACH:
This is the time when the “Curtain rises” and the sales person meet
face to face with the prospect. This is a critical stage because the
prospects first impression of the salesperson may have long-ran
consequences. Unfortunately too many selling processes start at this
step without sufficient approach. The salesperson appearance,
mannerism, credibility, opening lines and follow up marks are all
important factors in approach.
4. PRESENTATION:
This is the sales person’s opportunity to tell the company’s story, to
prefect its usage and to relate is products or services to the buyer
needs Rom (1979). The sales presentation must attract and hold the
prospects attention in order to arouse interest and build desire for
the product. The sales person may use presentation aids such as
catalogs, literature, audio-visual presentation, samples or
demonstration. McCarty and Perreault (1996) pointed out a mix of
four influence strategies.
Legitimacy
Expertise
Referent power
Ingratiation John (1978) condemns this strategy.
5 HANDLING OBJECTION:
The salesperson is bound to meet objections during presentation.
Sales presentation is a friendly discussion of a need and a solution to
a need. He not only talks during the presentation but also listens.
There are also four listed basic rules for handling objections;
Listen and don’t interrupt
Do not argue; never tell the customer he is wrong.
Question the objection
If, it is real, answer, otherwise ignore.
6. CLOSING:
The task of a salesperson in closing a sale is to meet the prospects
objections and obtain action or preferably obtain a commitment on
the part of the prospect to buy. It is a skill and perhaps the most
important stage in the selling process.
7. FOLLOW UP:
The selling process does not end with the buyer signing the order.
The follow-up stage is necessary for customer satisfaction and repeat
purchase.
NEW TRENDS IN PERSONAL SELLING.
Semanik and Bamossy (1993) compiled a list of new trends in personal
selling to include.
Sales Ethics: Much of the recent emphasis on marketing ethics that
focused on ethical sale practices. In many peoples’ eyes, the sales
profession has something of a reputation of unethical behaviour, a
fact that bothers professional. To counteract the ethics problem,
companies are beginning to make ethics a part of their sales-training
programs.
Computerization: Salespeople are becoming increasingly
dependent on computers for all aspects of selling-from prospecting to
organizing schedules, giving presentations etc. Several software
programs have been written with salespeople in mind. Laptop
computers facilitate this invention.
Telemarketing: As the cost of personal selling calls continues to
increase, many companies and non-profit organization are turning to
telemarketing – selling over the phone to keep costs down. This has
advantages of reaching more customers and saving time.
Women and minorities in sales: Increasing numbers of women
and minorities are being drawn to careers in sales as more
opportunities open up and the image of the profession improves.
Team selling: Team selling is becoming a necessity in many
situations because of the increasing sophistication of both products
and buyers. And some companies are beginning to use a team
approach simply because it fosters cooperation not competition,
among sales people.
System selling: This refers to the concept of selling a coordinated
package of goods or services that will meet customers, needs more
effectively than a single product along. Systems selling require the
salesperson to have extensive, knowledge of both the product line
and the customers’ needs.
Selling services: Sales opportunities in service industries (such as
banking, insurance, real estate, finance etc) are growing faster than
they are in the goods – producing industries. Many goods producing
firms now realize that their customers also need a variety of service
products to meet their needs.
2.11. PUBLICITY.
Another major marketing communication tool is publicity. Publicity has
been defined as the activity of securing editorial space as divorced from
paid, in all media read, viewed or heard by a company’s customers or
heard by a company’s purpose of assisting in the meeting of sales goods.
Thus, Tull and Kahle (1990) see publicity are consisting of the non
personal stimulation of demand for a product, service, or business unit by
arranging to have commercially significant news about it published,
broadcast, telecast, or presented on a stage that is not paid by the
sponsor.
The American Marketing Association. (AMA) take it to mean significant new
or editorial comment about ideas, products or institutions. Publicity is
creating news of worthy events for a company or its products. Publicity can
be free but difficult to control. It can build customer enthusiasm in advance
of advertising, marking it a “highly effective and cost efficient tool for
creating awareness of and generating sales for new products both
consumer and industrial” Stanton (1975).
Publicity is commonly used in launching of new products and brands as
well as in efforts to rekindle interest in nature brand, Kotler (1980). It is
also very effective in brand promotions. Nations seeking more tourists,
foreign investment, or international supports often us publicity towards
these purposes.
Since the beginning of time, politicians have used publicity as a means of
communicating their ideas and obtaining voters supports for instance.
According to Allvine, (1987) President Reagan has been hailed as the ‘great
communicator’ and a master at handling the media, enabling him to obtain
more favourable news coverage and to solicitate public support for
legislation he wants congress to enact”
The appeal of publicity is based on the following distinctive qualities.
1. News worthiness:
Products that can present interesting news stories to the press are
good materials for publicity. Adirika et al (1996).
2. High credibility:
News stories and features seem to most readers to beautify media
oriented reports. They have a higher degree of credibility than if they
were to come across as being sponsored by a seller.
3. Off-guard publicity can reach many potential buyers who
otherwise avoid sales people and advertisements. Bennet (1988) says
advert has never had credibility and never will have.
4. Small budget publicity is “cost free” but not “free of cost”
However, it tends to be low in cost” however it tends to be low in
cost when compared to media advertising.
5. Stimulus for sales force and Dealers:
Publicity may increase the enthusiasm of the sales force and dealers.
News stories about a new product before it is launched will help the
sales force to again favourable hearing from customers. Publicity
therefore is important where such leads are necessary. It is good to
remember that “sales start before your salesman calls”.
2.12. TYPES OF PUBLICITY
Foster (1984) says publicity must be founded on correct information and
true facts.
Various forms of publicity are:
I. Business publicity: This includes news or customer relations.
II. Personality: This is news about an individual regarding
achievements like educational qualification, prize e.g. Wole
Soyinka who won a Nobel Prize, awards, job experience, travel
and general documentary. The aim is to enhance the personality
of the individual.
III. International publicity: Every nation strives to make itself
recognized among the nations of the world. This is done through
the opening of Embassies and High commissions, Inter-state or
international exchange of visits by national leaders, news
documentary and international press relations.
IV. Publicity affairs: This is contained in all government
propaganda, political, social and religious news. The publicity is
meant for the consumption of the public as a way of winning
recognition and approval.
2.13. EVALUATING THE PUBLICITY RESULT.
At intervals the publicity results should be evaluated in order to determine
the extent to which objectives are being achieved, and also to modify the
programme if need be. Evaluation of publicity result is usually a difficult
thing because publicity is usually used in line with other marketing
communication tools, and it is difficult to separate its contribution in the
communicated on the basis of exposure, awareness, comprehension
attitude change and sales.
The publicity first of all will monitor the media to determine how many
publicity releases actually are published or broadcasted. Measurement of
exposure is really not enough. There is no information on how many
people actually saw or read the message and the impact of such message
on the audience. Measurement therefore should reflect the impact of the
publicity campaign on product awareness, comprehension and attitude
change and sales.
2.14. PUBLIC RELATIONS.
Public relations is a philosophy of management, the main objective of
which is the establishment of understanding and goodwill between an
organization and its public, Udeagha (2003). It also involves the
establishment of rapport between an individual and its publics. It is
according to Canfield et al (1990) “the management function which
evaluates public attitudes, identifies, the policies and procedures of an
individual or an organization with the public interest and executes a
program of action to earn public understanding and acceptability”. And in
opinion of Agbo (2000). Public Relations is a Social philosophy of
management expressed in policies and practices which through sensitive
interpretation of events based upon two way communication with its public
strives based upon two way communication with its public strives to secure
mutual understanding and goodwill”.
It was defined by the Institute of Public Relations as “ the deliberate
planned and sustained effort to establish and maintain mutual
understanding between an organization and its public”. The external
communication is designed to enhance the image of the organization in the
minds of its various publics. Engel et al (1975).
Public relations as a marketing function, is an extension of the societal
marketing concept, which focuses every marketing decision on customer
sales satisfaction and welfare of the firm’s larger public.
Rom (1970) maintains that a firm’s public relations are either good bad or
indifferent. What is implied here is that companies should “talk” about their
good deeds because “if you don’t say I am, nobody says you are”. Public
relations therefore, is about a firm blowing its trumpet.
2.15. OBJECTIVES OF PUBLIC CAMPAIGN.
The objective of public relations campaign depends on the particular public
at which the public relation message might be directed. Engel et al (1975)
suggested representation objectives for the public relations efforts
to five significant targets:
1. To ultimate consumer:
Disseminate information in the production and distribution of new or
existing products.
Disseminate information on ways to use new or existing products.
2. To company employees:
Training the public to stimulate more effective contract with them
and encouragement of in the company and its products.
3. To suppliers:
Provide research information for use in new product. Report on
company trends and for the purpose of building a continuing team
relationship.
4. To stakeholders:
Disseminate information on:
A) Company prospects.
B) Past and present profitability.
C) Future plans.
D) Management changes and capabilities.
E) Company financial needs.
5. To the company at large:
Promote public causes such as community fund- raising drives.
Disseminate information on all aspects of company operations with
the purpose of building a sense of unity between company and
community.
2.16. FACTORS THAT INFLUENCE THE CHOICE OF
PROMOTIONAL TOOLS
There are three major factors that are used to determine an effective
promotional tool for a product. They are: the type of target customers to
be served, the types of product that the firm produces and the stage of the
product life cycle. Assael (1990).
I. Types of Target Customers: The type of customers in which
product is targeted influences the choice of the promotional tools and
strategy to be adopted by the marketer. For instance, as stated in
Achison (2000), that industrial goods require a combination of
publicity and personal selling among all the tools of Promotion.
II. Types of product: The characteristic of a product helps to
determine the emphasis that is to be placed on each of them
compared to the promotional tools to be used. According to Assael
(1990), advertising is most importantly used for consumer goods
because the product features and benefits can only be massively
communicated to the consumers through the media in order to
enhance their purchase. Personal selling is dominant in the marketing
of services because a sales person often delivers services.
Publicity is likely to be more important for larger firms that must
convey a message of corporate good will to stakeholders, customers
and other sections of the public than smaller firms. Sales promotion
is most useful for consumer products that have close substitutes,
perishable goods and those other goods that are purchased on an
impulse.
III. Stage of Product’s Life Cycle: The choice of the promotional tools
to be used also depends to a great extent on the stage of the
product’s life cycle. As stated in McCarthy and Perreault (1996), the
four stages of the product’s life cycle are: the introductory stage, the
growth stage, the maturity stage and the declining stage.
At the introductory stage of product, the aim of the marketer is to
induce trail, create awareness, and build trade supports. Here, Assael
(1990) states that promotion plays two roles: provides the push
strategy to ensure that shelf space is obtained from sellers and
provide the pull strategy to generate product trails. Advertising here
mainly in this case works to create brand and product awareness.
In the growth stage, the product is known to generate increased
sales and advertising expenditures are likely to be maintained or
increased slightly. The advertising strategy then shifts to
communication of the products benefits. Here, the publicity is
increased while sales promotion will depend on the extent of
competition in the industry.
At the maturity stage or phase of the product’s life cycle, sales
growth stabilizes and begins to decline. At this time, the company will
likely use price inducement and other sales promotional techniques to
coax users of competitive brands to switch to the company’s brand.
According to Baker (1983), here the advertising strategy changes
from being informational to campaign based more on symbols and
imagery.
The decline phase of the product’s life cycle is marked by some cut
backs in all promotional expenditures. Advertising will attempt to
maintain brand awareness among brand loyalists and sale promotions
may support the brand with occasional coupons and price deals.
2.17. ROLES OF PROMOTION IN THE ECONOMY
Promotional activities in Nigeria today haves taken a very dramatic change
from what was witnessed in the eighties and early nineties. The emergence
of more manufacturing companies with different product mix and product
to offer to market, contributed immensely to this change.
Nigeria being a free enterprise society does not restrict one to what he
should do as regards to business provided it is in conformity with the laws
of the country. These companies are so many that competition becomes so
high and to this effect, a lot of modern techniques in promotion for their
products has come into the Nigerian promotion strategy.
All the five promotional tools are near being fully exploited by some of
these firms to gain competitive advantage over rivals. Among the five
promotional tools enumerated, advertising, sales promotion and personal
selling are the most widely used methods by Nigerian companies in
creating awareness in consumers about the availability of their products.
Under advertising, the most widely used media are through daily
newspapers, radios, television. Sales promotion and personal selling also
takes turn in the promotion activities as a follow-up to advertising. These
can be justified by the increase in number of salesmen and sales
representatives in manufacturing companies.
The fact that promotion has become the “hub-nun” of today’ business,
complex commercial industrial world hardly requires emphasis. The
diversity of tastes to be catered for, the numerous alternative choices of
goods and services that are available competing for the scarce nature and
content of these goods and services, thanks to technology, which makes
promotion a necessity.
The dwindling spending power of the man in the street and the need for
prudent investment of his limited resources combine to make promotion a
welcome development in the modern world. Presenting him available
options where and how they can contained these facts, of course, makes
promotion indispensable. Is promotion as good and desirable as it is
portrayed? Is it as functional and relevant? Has it been beneficial or
harmful to the development of modern man? These questions were given
due consideration by Amechi (1991) when he was discussing the roles of
promotions (promotional elements) in Nigeria’s economic growth.
He started by pointing out that since marketing is a management function
which constantly seeks to identify and satisfy the needs of consumers, and
that promotions being one of the four pillars of marketing helps to
influence the consumer whose behaviours towards goods and service can
make or mar economic growth. More than that, the activities of the
promotion he said help the marketing of products and of course the Nigeria
economy through:
The encouragement of market, media and consumer research to enrich
the nation data bank for purposeful economic planning and growth.
By encouraging competitions which helps to raise productions quality
and also reduces demand inflation.
The creation of product awareness in the relevant markets which in turn
encourages wider distribution of goods and services to the benefit of the
transportation sub-sector of the Nigeria economy.
CHAPTER THREE
3.0. RESEARCH DESIGN AND METHODOLOGY
3.1 RESEARCH DESIGN.
The research of this study was carried out within the Enugu metropolis of
Enugu State. And here, there are three major Local Government Areas
used here in exclusion of the newly created Local Government
Development Councils. They are: Enugu North, Enugu South and Enugu
East Local Government Areas. Three layouts were selected from each of
the Local Government Areas that make up Enugu Urban. 100 respondents
were randomly chosen from each of the Layouts making it a total of 900
respondents from each Local Government Area.
The respondents were drawn and sourced from offices, higher institutions,
hotels, hospitals and shops. The minimum age of the respondents was be
18 years.
3.2. POPULATION OF THE STUDY
The areas covered were conveniently selected taking into consideration
cost of production and administration of the questionnaires as well as the
time frame for the study. A total of 100 people were selected from each of
the three Layouts bring it up to 900 respondents from three Local
Government Areas. To find out more, special-framed questionnaires were
distributed to the four major departments of the company; Hardis and
Dromedas namely: Production, Administration, Accounting and Marketing.
3.3 SAMPLING TECHNIQUE
The method used for the research methods includes the followings:
Identification of geographical area where the industry in located.
Division of the region of interest into three major local governments
that make up Enugu metropolis.
Judgment selection of three major streets from each local
government area.
Identification of age group of interest
Random selection of one hundred (100) respondents from each
layout from each local government area within the age group of
interest.
3.4 METHOD OF DATA COLLECTION
The data used for the study were sourced through primary and secondary
methods of data collection.
The primary data collection was mostly sourced using the Questionnaire.
However, personal interview and personal observation were used in
conjunction with the questionnaires to obtain data from the firm as well as
from individuals or groups that needed to be interviewed.
The secondary data sources were mostly textbooks, journals, bulletins,
newspapers and other periodicals that had relevant data to the study. The
secondary data were divided into internal and external data (Churchill,
1976). The internal secondary data was generated by sources within the
organization of study. They included company’s annual reports,
newsletters, and data from their website.
The external secondary data entailed the use of data generated outside the
organization such as news magazines, textbooks, periodicals among
others.
3.5. QUESTIONNAIRE DESIGN
The questionnaire design for the study was done using both structured and
unstructured questions as well as open and close-ended questions. These
types of questionnaire design were considered vital in obtaining highly
objective and subjective data from the respondents. (Modum,2005). Open-
ended questions gave the respondents the opportunity to express their
independent opinions on the subject matter being treated as well as
contribute their knowledge on the study. Here, no checklist of possible
answers were given.
The close ended questions were used to guide the respondents in
answering questions that are a bit tactical. It makes provision for the
respondents, to simply choose from a list of alternative answers, their most
favourable replies or responses. The close-ended questions were
sometimes dichotomous, requiring a two-way answer of either “Yes or No”
depending on the prevailing circumstances.
The attitude scales were used in some instances to elicit self reports on
beliefs and feelings of respondents concerning the subject.
3.6. METHOD OF DATA ANALYSIS
On successful completion of the data collection processes, appropriate
statistical tools which in this case are Analysis of Variance (ANOVA) and
chi-square were employed to analyze data.
Descriptive statistics were used to observe the frequencies of the central
tendencies (means, media and mode) and variations in the data.
The measure of central tendency that was most commonly used in this
study is the mean. According to Asika (2005), Mean is defined as the sum
of all the scores in the distribution divided by the total number of scores.
N
Where:
M = Mean of the distribution of x scores
X = Signifies each score in the distribution
F = Frequency of each score.
CHAPTER FOUR
4.0. DATA PRESENTATION, ANALYSIS AND DISCUSSION.
4.1. INTRODUCTION.
In the last chapter, examination on methodology for the study and
highlighting the research setting and data sources were carried out.
In this chapter, the data obtained from the questionnaire, personal
interview and personal observation shall be used for presentation and
discussion of findings. The analysis shall entail the use of available
statistical tools in testing the different hypothesis earlier formulated in
chapter one of this study. All the testing shall be done at 95% level of
significance.
Inferential and descriptive statistical tools such as Analysis of Variance
(ANOVA) and chi-square were used in testing the different hypothesis
formulated for the study. Specifically the F-test was used in testing the
hypothesis two which tries to find out which promotional tool significantly
attracts more consumers than the others. This test (Analysis of variance)
was also used in testing the extent to which respondents choice of
consumer products (Hardis and Dromedas in focus) in Enugu have been
influenced by promotion, as well as to determine whether there is any
significant difference between consumers preference for sales promotion,
advertising, publicity, public relations and personal selling. This is
Hypothesis one.
The third hypothesis which is on promotional activities and their roles in
increasing the rate of profit making capabilities of the company was tested
using chi-square test statistic.
4.2. QUESTIONNAIRE DISTRIBUTION AND COLLECTION
The respondents were drawn from Enugu North, Enugu South and Enugu
East Local Government Areas of Enugu Urban in Enugu State. Three
layouts were randomly chosen from each local government area. These are
Abakpa Nike, Emene and Trans Ekulu from Enugu East Local Government
Area, Uwani, Achara Layout and Zik Avenue from Enugu South Local
Government Area and Independence Layout, New Haven and Asata from
Enugu North Local Government Area.
The questionnaires were distributed at hotels, offices, schools, hospitals,
shops where most consumers were found. A table showing the
questionnaire distribution and collection within the three local government
areas is presented below.
Table 4.1. Questionnaire Distribution and Collection
Local
Government
Area
Number of
Questionnaires
distributed
Number of
Questionnaire
collected
% of Questionnaire
collected
Enugu North 300 292 34
Enugu South 300 287 33
Enugu East 300 285 33
Total 900 864 100
Source: Survey Data( 2008)
The table above indicates that out of 900 questionnaires distributed, a total
of 864 questionnaires were completed and returned by respondents within
the three local government areas. This represented a response rate of
96%. The high response rate recorded was due to the method of
distribution adopted by the research attendants which entailed the
consumers completing the questionnaire at the meeting point and
returning it to the research assistant before leaving the office or wherever.
4.3. DEMOGRAPHIC DATA OF RESPONDENTS
The respondents were drawn from both male and female ranging between
the ages of 18 and above. Their marital status and educational
qualifications were taken into consideration.
And out of 864, respondents that returned their questionnaires, 508 people
representing 59% of the total respondents were females while the
remaining 356 people representing about 41% of the total respondents
were male. Out of 598 female respondents that returned their
questionnaires, only 132 (26%) were married while the remaining 376
(74%) were single. The ages of single women ranges from 18 to 37 years
while those of the married ranged from 26 years and above.
From the male respondents, it was observed that 205 (58%) were single
while the remaining 151 (42%) were married. Majority of the unmarried
males interviewed were between the ages of 18-40 years old while the
married ones ranged from 35 and above.
Nearly all the female respondents had that at least West African Certificate
Examination Certificate or its equivalent with only very few having less. A
table of educational qualification of respondents is presented below:
Table 4.2. Table of Educational qualification of respondents.
Qualification Male Female Total %
Second
Degree and
above first
degree
16
45
61
7
HND 80 108 188 22
OND 77 132 209 24
GCE 152 155 307 36
FSLC 28 60 88 10
No formal
education
3 8 11 1
Total 356 508 864 100
Source: Survey Data( 2008)
It was observed that the educational background of respondents had some
influence on their expressed options and attitude towards promotions as
the communication arm of the marketing.
At this point we shall examine and analyze some important questions in the
questionnaire. Thereafter, the questions which centre on the formulated
hypothesis will be used to test those set of hypothesis.
Table 4.3: Consumers Awareness of Hardis and Dromedas
Products Through Promotion
Respondents Yes No Total
Abakpa Nike 66 30 96
Emene 72 20 92
Trans Ekulu 66 33 99
Uwani 61 33 94
Achara Layout 63 29 92
Zik Avenue 79 20 99
Ind. Layout 80 16 96
New Haven 91 6 92
Asata 88 11 99
Total 666 198 864
% 77 23 100
Source: Survey Data(2008)
Table 4.3 above shows that 666 respondents representing 77% of the
population sampled are aware or have heard about Hardis and Dromedas
products through promotional activities carried out by them, while 198
respondents representing 23% are not aware or have not heard about the
products. It may not be suprised that majority of our respondents are
aware of Hardis and Dromedas products because our reseach areas covers
the company’s locality areas. It is also to show the effect of promoting
products.
Table 4.4: Reasons for customers choice of purchase
Respondents A B C D E Total
Abakpa Nike 35 12 14 25 10 96
Achara Layout 40 6 12 30 6 94
Emene 38 14 12 22 10 96
Trans Ekulu 32 10 16 33 5 96
Uwani 29 11 24 24 4 92
Zik Avenue 30 9 26 27 15 98
Ind. Layout 37 21 16 18 16 98
New Haven 29 12 27 27 2 97
Asata 35 9 20 25 8 97
Total 305 104 167 231 76 864
% 35 12 19 27 9 100
Source: Survey Data( 2008)
Where:
A = Affordability
B = Availability
C = Affordability good promotion
D = Good quality
E = Others.
From table 4.4,one would observe that what makes the buyers/consumers
purchase the product are dominantly price consideration which has
percentage of 35%/305 followed by good quality with 231 or 27% and
closely followed by good promotion.
The management has to device good marketing programmes through
distribution to make their products readily available so as to achieve its
objectives. From personal observation and personnel interviews conducted,
most of the Hardis and Dromedas products are not easily obtainable in the
open markets except in special supermarkets. This, they attributed to
means of bringing down the rate of adulteration and emergence of fake
products.
Table 4.5: Whether they have received any gift items, bonus etc or
heard of Hardis and Dromedas jingles?
Respondents Yes No Total
Abakpa Nike 63 29 92
Emene 70 25 95
Trans Ekulu 78 18 96
Uwani 60 36 96
Achara Layout 54 40 94
Zik Avenue 69 27 96
Ind. Layout 79 20 99
New Haven 80 17 97
Asata 69 30 99
Total 622 242 864
% 72 28 100
Source: Survey Data (2008)
From table 4.5, one can obviously see that 622 respondents representing
72% have at one point or the other heard of Hardis and Dromedas jingles
or received gift item or bonus from the company while 242 respondents
representing 28% of the sampled population have not heard or received
any item or bonus from them. It should be noted that even though the
percentage number of those in affirmative is high enough, there is still
need to gain more of the market audience by increasing the rate of
promotion especially through sales promotion.
Table 4.6: Grading in order of preference the promotional tool
that best appeals to the consumer
Respondents A B C D E Total
Abakpa Nike 41 25 7 16 5 94
Emene 35 22 17 10 10 94
Trans Ekulu 38 30 11 10 10 99
Uwani 32 37 12 16 1 98
Achara Layout 28 18 20 16 13 95
Zik Avenue 29 29 3 9 20 90
Ind. Layout 42 19 2 4 30 97
New Haven 40 16 11 6 25 98
Ogui New Layout 36 25 7 9 22 99
Total 321 221 90 96 136 864
% 37 26 10 11 16 100
Source: Survey Data (2008)
Where:
A = Advertising
B = Sales promotion
C = Public relations
D = Publicity
E = Personal selling
From table 4.6, the respondents were given the chance of grading the
options given in order of preference of the promotional tools available and
used by Hardis and Dromedas Group. Here 321 respondent representing
37% graded advertising as the most preferred promotional tool that
appeals to them and catches their attention most. This is because
advertising as we all know has the effect of creating initial awareness and
also has the ability of reminding them of the products. 221 respondents
went for sales promotion with the percentage of 26. This may be due to
gift items, bonuses and other packages involved. This is followed by
personal selling which 136 respondents representing 16% ticked as their
most preferred tool. Going by the several advantages associated with
personal selling, the management is advised to increase the tempo of
personal selling. For publicity and public relations, only 96 respondents
(11%) and 90 respondents (10%) preferred them to others. To raise these
two, the company should endeavour to give out job packages to host
communities and engage in carrying out developmental projects where
necessary.
Table 4.7: Do you think that promotional activities carried out by
Hardis and Dromedas company are enough?
Respondents Yes No Total
Abakpa Nike 50 46 96
Emene 70 27 97
Trans Ekulu 68 31 99
Uwani 65 33 98
Achara Layout 72 21 93
Zik Avenue 60 38 98
Ind. Layout 73 20 93
New Haven 69 26 95
Asata 55 40 95
Total 582 282 864
% 67 33 100
Source: Survey Data( 2008)
From table 4.7 which asked the respondents if promotional activities
carried out by Hardis and Dromedas Company are enough. 582
respondents represented 67% believe that it is enough while 282
respondents representing 33% agree that the amount of promotional
activities engaged by the company is not commensurate and enough when
compared with the nature of the business being carried out by the
industry. Promotion as we all know serves as life wire to the success of any
business venture, since nobody know “you are there” except when you say
so. The roles of promotion cannot be over-emphasized, so, despite the fact
that 67% is high, it is not high enough for a multiple product company like
Hardis and Dromedas Ltd. There is a great need for them to put more
effort and budget more for promotion of their products.
Table 4.8: Promotional tool that should be adopted and engaged
more.
Respondents A B C D E Total
Abakpa Nike 34 25 9 10 20 98
Emene 28 19 19 4 32 93
Trans Ekulu 20 40 8 12 17 97
Uwani 35 14 13 12 25 99
Achara Layout 31 27 12 5 20 95
Zik Avenue 23 32 6 5 29 95
Ind. Layout 27 28 3 9 29 93
New Haven 33 33 4 10 18 98
Asata 27 22 5 12 30 96
Total 258 240 70 79 191 864
% 30 28 8 9 25 100
Source: Survey Data (2008)
Where:
A = Advertising
B = Sales promotion
C = Public relations
D = Publicity
E = Personal selling
From table 4.8, out of 864 questionnaires collected, 258 respondents
representing 30% accept that advertising should be adopted and used
more. This is because advertising which can be done through print media,
television, radio, billboard etc reaches a very wide audience and should be
adopted most. Closely following it is sales promotion which 240
respondents representing 28% accept should be adopted most. This is
mainly because of free gifts and contests which are always associated with
sales promotion, thirdly on the rank is personal selling where 220
respondents representing 25% went for it as the one that should be
adopted most. Personal selling as we all know is gaining more grounds
with the new inventions, use of modern technology and human resource
development. Competition is another factor that brought personal selling to
limelight. The table shows that publicity and public relations are at the
lowest indicating that they most times are not of great importance to
marketing of product, but having a good image is also very important
because if neglected could mar the whole scenario and make a mess of all
other efforts.
Table 4.9: The future of companies engaging in more committed
promotion of products
Respondents
Very
bright
Bright
Promising
Bleak
Total
Abakpa Nike 68 16 10 5 99
Emene 69 24 3 2 98
Trans Ekulu 46 36 10 3 95
Uwani 58 20 9 3 90
Achara Layout 61 30 4 2 97
Zik Avenue 57 17 15 5 94
Ind. Layout 66 16 7 5 94
New Haven 61 22 11 5 99
Asata 56 25 15 2 98
Total 542 206 84 27 864
% 63 24 10 3 100
Source: Survey Data ( 2008)
From table 4.9 which tries to find out the future of all companies that are
committed to use of good promotional activities. 542 respondents
representing 63% believe that the future of all companies using promotion
is very bright. This is attributable to all the advantages associated with
promotion. 206 respondents representing 24% agree that the future of
their business transactions is bright while 84 respondents representing
10% believe that the future is promoting for them. A very small number:
27 respondents representing only 3% say that the future is bleak. This is a
very small number indicating that all companies wishing to meet not only
their target of today but future ones must as a matter of urgency commit
more resources to promotion of their products.
4.4. TEST OF HYPOTHESIS
The researcher formulated three sets of hypotheses. And those research
hypotheses will be statistically tested and decision taken on whether to
accept or reject them as the case may be for each of them.
4.3.1. HYPOTHESIS ONE
Promotional activities do not influence the consumers buying
habits.
To test this hypothesis, a question in the questionnaire which was basically
asked for this purpose is analyzed for this as shown in the table below.
Table 4.10: To what extent does promotion influence demand of
Hardis and Dromedas products?
Respondents
To a great
extent
To a fair
extent
Not at all
Total
Abakpa Nike 50 27 21 98
Emene 61 29 7 97
Trans Ekulu 50 40 9 99
Uwani 48 32 2 82
Achara Layout 45 42 11 98
Zik Avenue 58 40 1 99
Ind. Layout 33 49 15 97
New Haven 50 35 13 98
Asata 47 40 11 96
Total 442 334 90 864
% 51 39 10 100
Source: Survey Data( 2008)
From table 4.10 above, a total of 864 forwarded their replies to the
question “Extent to which they are influenced by promotions in their buying
habits” 442 respondents representing 50% indicated that they are
influenced by promotion to a great extent, 334 respondents representing
30% indicated that they are influenced by promotions to a fair extent,
while only 90 people representing 10% of the total respondents, indicated
that they are not influenced by promotions in their buying of consumer
goods in Enugu.
4.3.2. STATISTICAL TEST OF HYPOTHESIS ONE
The analysis of variance (ANOVA) or F-test was used in finding out whether
there is any significant difference between the groups of respondents who
are influenced by promotions to a great extent, to some fair extent and
those that were not influenced at all by promotion. This was done at 95%
level of significance.
The tabulated result of the calculation made for this test is as shown in
table 4.11 below while full details of the calculations in shown in the
Appendix 3.
Table 4.11: ANOVA Table Comparing the Means of the Groups of
Respondents who are influenced by promotion to a great extent,
to some fair extent and those not influenced at all by promotion
Sum of
squares
Degree of
Freedom
Mean
square
Calculated
F-ratio
Tabulated
F-ratio
Total 746496 26 -
Between
sum of
squares
31497
3
Within
sum of
squares
639905
23
63
4.8
2.4
Source: Survey Data( 2008)
Result:
From Table 4.11 above, it is seen that the calculated F-ratio (4.8) is greater
than the tabulated F-ratio of 2.4 at 95% level of significance, therefore, we
do not accept the Null Hypothesis which states that there is no significant
difference between the means of the group of respondents who are
influenced by promotions to a great extent, to some fair extent and those
not influenced by promotions at all in their buying habits in Enugu.
4.3.3 . HYPOTHESIS TWO
None of the promotional tools adopted for promotion of Hardis
and Dromedas products is more effective and influential on the
consumers than the others.
To test this hypothesis equally, a related question in the questionnaire is
used and its analysis is shown in table 4.12 below.
Table 4.12: The most effective and influential promotional tool in
marketing of Hardis and Dromedas products.
Respondents A B C D E Total
Abakpa Nike 40 30 5 9 15 99
Emene 38 22 12 7 18 97
Trans Ekulu 38 32 6 3 17 96
Uwani 26 40 9 5 19 99
Achara Layout 36 25 8 9 2 99
Zik Avenue 29 28 12 13 8 90
Ind. Layout 50 20 5 17 3 95
New Haven 33 44 6 6 9 98
Asata 36 27 6 2 20 91
Total 326 268 69 71 130 864
% 38 31 8 8 15 100
Source: Survey Data( 2008)
Where:
A = Advertising
B = Sales promotion
C = Public relations
D = Publicity
E = Personal selling
From Table 4.12 above, 326 respondents representing 38% accept that
advertising is the most effective and influential promotional tool among all
of them. This may not be unrelated with the fact that advertising reaches
the widest audience and creates more substantial awareness and
information than all other tools. Following closely is sales promotion which
268 respondents representing 31% of the sampled population agree, is the
most effective than all others. Sales promotion usually is effective because
of the different inducements (money, prizes, extra product gifts etc),
though it may not cover a very wide audience. 130 respondents which
represents 15% of the sampled population believe that personal selling is
most effective while 69 and 71 people representing 8% each of the
respondents went for publicity and public relations respectively as the most
effective and influential tools of promotion.
4.3.4 . STATISTICAL TEST OF HYPOTHESIS TWO
The F-test is to be conducted to determine whether there is any significant
difference between the mean of the groups of respondents who preferred
advertising, sales promotion, personal selling, publicity and public relations
as the best promotional tool for marketing of Hardis and Dromedas
products in Enugu. The test is conducted at 95% level of significance.
Null Hypothesis
There is no significant difference between the means of group respondents
who preferred advertising, sales promotion, personal selling, publicity and
public relations as the best promotional tool for the marketing of Hardis
products in Enugu.
Table 4.13: ANOVA Table showing the Result of Test conducted to
determine whether there is any significant difference between the
Means of those who preferred Advertising, Sales Promotion ,
Personal Selling, Publicity and Public Relations as the best
Promotional Tool for marketing of Hardis and Dromedas products.
Sum of
squares
Degree of
Freedom
Mean
square
Calculated
F-ratio
Tabulated
F-ratio
Total 27126 37 -
Between
sum of
squares
8640
5
Within
sum of
squares 639905 32 71.5 5.8 3.7
Source: Survey Data( 2008)
Result:
From table 4.13, it is observed that the calculated F-ratio (5.8), is greater
than the tabulated F-ratio(3.7),at 95% level of significance. We therefore,
do not accept the null hypothesis which states that there is no significant
difference between the means of group of the respondents who preferred
advertising, sales promotion, personal selling, publicity and public relations
as the best promotional tool for the marketing of Hardis and Dromedas
products.
4.3.4. HYPOTHESIS THREE
Promotional activities do not contribute to high profitability of the
organization.
To test this hypothesis, a question trying to determine whether they agree
that promotion contributes to high sales and profitability to the company
was analyzed.
Table 4.14: Do you agree that promotional activities contribute
significantly to high profitability of the organization.
Respondents
Strongly
agree
Agree
Strongly
disagree
Disagree
Total
Abakpa Nike 50 20 15 12 97
Emene 61 21 10 5 97
Trans Ekulu 44 43 6 5 98
Uwani 60 18 12 6 96
Achara Layout 55 32 8 6 95
Zik Avenue 38 42 15 2 97
Ind Layout 49 20 8 17 94
New Haven 41 30 8 20 99
Asata 26 35 28 2 91
Total 424 261 110 69 864
% 49 30 13 8 100
Source: Survey Data( 2008)
From Table 4.14 which tries to find out if promotion of products leads to
high profitability, 424 people representing 49% of the total respondents
strongly agree that promotion brings about more profits to the company,
similarly 261 respondents representing 30% simply agree that promotion
contributes significantly to profitability of the company. This high number
emanates from the fact that promotion stimulates demand by creating
awareness and equally making those products have edge over competing
or similar products, invariably there will be high sales which leads to high
profits. On the other hand, 110 respondents representing 13% disagree in
totality that promotion contributes to high profits while 69 respondents
representing 8% simply disagree that promotion brings profit to the
company.
One can clearly see that these respondents may disagree because;
promotion in as much as it is very important cannot “do all” in reasonable
marketing of product. Other factors like product quality, distribution, price,
branding, packaging, among others are equally indispensable in this
situation.
4.3.5 . STATISTICAL TEST OF HYPOTHESIS THREE
Chi-square test statistic is used in finding out whether promotional
activities contribute to high profit making of the company
To test the above hypothesis, the Chi-square (X2) is used as the test
statistic
Degree of freedom (Df) = (C-1) (R-1
Where:
C = column
r = row
Level of significance 0.05
Chi-square test has the formular:
X2 (Fo-Fe) 2
Fe
Where:
Fo = observed frequency
Fe = expected frequency
X2 = chi-square test statistic
Table 4.15: Contingency table
Respondents
Strongly
agree
Agree
Strongly
disagree
Disagree
Total
Abakpa Nike 50 (48) 20 (29) 15 (12) 12 (8) 97
Emene 61 (48) 21 (29) 10 (12) 5 (8) 97
Trans Ekulu 44(48) 43 (30) 6 (12) 5 (9) 98
Uwani 60 (47) 18 (29) 12 (12) 6 (8) 96
Achara Layout 55(47) 32 (29) 8 (12) 0 (8) 95
Zik Avenue 38 (48) 42 (29) 15 (12) 2 (8) 97
Ind Layout 49 (46) 20 (28) 8 (12) 17 (8) 94
New Haven 41 (49) 30 (30) 8 (13) 20 (8) 99
Asata 26 (45) 35 (27) 28 (12) 2 (7) 91
Total 424 261 110 69 864
Source: Survey Data (2008)
The Expected Frequencies (Fe) were calculated and put in brackets as can
be seen in Table 4.15 above.
Fe = Ri Ci
N
Where:
Ri = Row total
Ci = Column total
n = number of observation
Table 4.16: Chi-square value calculation
Fo Fe (Fo-Fe) (Fo-Fe)2 (Fo-Fe)2
Fe
50 48 2 4 0.08
20 29 -9 81 3
15 12 3 9 0.75
12 8 4 16 2
61 48 13 169 4
21 29 -8 64 2.2
10 12 -2 4 0.3
5 8 -3 9 1
44 48 -2 4 0.08
43 30 13 169 6
6 12 -6 36 3
5 9 -4 16 2
60 47 13 169 4
18 29 -11 121 4
12 12 0 0 0
6 8 -2 4 0.5
55 47 8 64 1.4
32 29 5 9 0.3
8 12 -4 16 1.3
0 8 8 64 1.3
38 48 -10 199 2.1
42 29 13 169 19
15 12 3 9 0.8
2 8 -6 36 5
49 46 -3 9 0.2
20 28 -8 64 3
8 12 -4 16 1.3
17 8 9 81 10
41 49 -8 64 1.3
30 30 0 0 0
8 13 -5 25 1.9
20 8 12 144 18
26 45 -19 361 8
35 27 8 64 2.4
28 12 16 256 21
2 7 -5 25 4
127.21
Source: Survey Data (2008)
X2 = (Fo – Fe)2
Fo
Degree of Freedom (DF)= (C-1) (R-1)
= (9-1) (4-1)
= 8x3 = 24
From table of values of chi-square
X2 0.05 24 = 35.42
X2 calculated = 127.21
DECISION RULE
The decision rule is:
Do not accept Ho if X2 calculated (X2cal) > X2 DF otherwise accept Ho.
DECISION:
Since X2cal (127.21) > X2 DF( 36.42), We do not accept the Null hypothesis
which states that promotion of Hardis and Dromedas products do
contribute to high profitability of the company.
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS.
5.1 INTRODUCTION.
This chapter summarizes the findings from the study through data already
analyzed in the last chapter. Recommendations for choosing and adopting
more valuable promotional tools are equally given in this chapter.
5.2 SUMMARY OF FINDINGS
This study appraises the promotional strategies used by manufacturers of
consumer goods in Enugu with a special focus on Hardis and Dromedas Ltd
Enugu. Its analysis shows that consumers of hygienic and beauty products
in Enugu to a great extent are influenced by promotions in making their
choices of such products.
A ranking of those promotional tools and strategies in terms of their
effectiveness on consumers revealed that majority of the consumers prefer
advertising for its wider coverage and sales promotion for the associated
goodies it offers to them. This study equally shows that these two are
more attractive and efficient promotional tools in this aspect and should be
adopted for marketing of beauty and hygienic products in Enugu. However,
personal selling should also be adopted by the company to an extent and
the other remaining two: publicity and public relations to a smaller extent
as none of them is valueless.
The study revealed that for manufacturers of beauty and hygienic products
to maintain its profitability objective and equally have an edge over others,
they must maintain regular and substantial promotional activities of their
products otherwise they may be competed out of business.
It was also observed that it is actually promotional messages that say all
about products and their companies. It is the aspect that all actual and
potential customers see, hear, and read about. The awareness and
information it creates is the most important aspect of it as it propels the
customer to start searching for the product wherever it is. With this,
manufacturers of these products acquire and retain more customers which
facilitate volume sales and high profits hence enabling them to remain in
business despite unfair economic conditions in the country.
The statement of problems of this research work bother on the need for
manufacturers of consumer goods in Enugu to formulate good promotional
tools (taking promotional synergy into cognizance) that will impact
reasonably on the consumers.
General and particular problems facing manufactures of consumer goods
and Hardis and Dromedas in respectively were enumerated.
Several research questions were formulated based on the extent to which
promotional tools affect consumers of beauty and hygienic products in
Enugu.
Three sets of hypothesis were formulated for the study. These hypotheses
seek to assess and appraise the effectiveness of different promotional tools
adopted for the marketing of consumer products on the consumers.
The second chapter reviewed the related literature of the study. The
different types of promotional tools and their roles were extensively
appraised and examined. Keegan (2002) gave purpose of marketing
promotion as; informing buyers about the existence of a new product or
service; to remind them of the continued availability of the old ones and to
persuade them to buy these products or services on a long-term basis. The
tools which marketers use to achieve these promotional objectives are
advertising, sales promotion, personal selling, publicity and public relations.
These constitute the firms marketing promotion or communication mix.
In chapter three, the methodology for conducting the research was
enumerated. Three local government areas (Enugu East, Enugu North and
Enugu South) within Enugu metropolis were sampled and three layouts
were chosen from each local government for the study. 100 questionnaires
were distributed in each of the three layouts chosen making a total of 900
questionnaires within the three local government areas. 864 questionnaires
were filled and returned by respondents while the remaining 36
questionnaires were declared missing on transit.
The fourth chapter analyzed and interpreted data which were collected
using instruments and methods indicated in chapter three. Answers were
provided for the research questions and each of the hypotheses earlier
formulated for the study were tested.
From the above, major finding are the followings:
1. Promotion plays a prominent role in the marketing of consumer
goods in Enugu and guides and consumers in making their choice of
products to purchase.
2. Best promotional tools as observed from the consumers responses is
that, which combines advertising, sales promotion, personal selling,
publicity and public relations in their respective order. Hence, obtain
promotional synergy.
3. The fear of losing customers to competitors make manufacturers of
these products find ways of promoting their products despite the cost
associated with it. These companies, no doubt have edge over others
as they remain successful in business over time.
5.3. CONCLUSION
This research work stresses the need for manufacturers of consumer goods
to adopt good promotional tools in the marketing of their products in
Nigeria. It highlights the role of promotion and informs marketers of the
need to persuade and remind buyers of the existence of their products, its
usefulness and all other features that could make the product more
attractive to consumers.
A study of the promotional tools adopted by Hardis and Dromedas Ltd in
Enugu revealed that the consumers of beauty and hygienic products are
greatly influenced by promotions. And among all the promotional tools
analyzed, advertising closely followed by sales promotion are the most
effective promotional tools preferred by producers and consumers for the
marketing of these products in Enugu. Personal selling comes third while
publicity and public relations are at the bottom in their order of
effectiveness. However, it is found that the use of advertising and sales
promotion above is risky and very extravagant, thus promoting the mixture
of all promotional tools in the order that a promotional synergy will be
attained.
The company should take cognizance of the recommendations made by
the writer for the improvement of consumer goods promotions and
marketing in Enugu in particular and Nigeria in general. It is hoped that
adherence to these recommendations will facilitate continuous rise in sales
and acquisition of substantial market share by these manufacturers of
beauty and hygienic companies as a result of adequate promotion or the
adoption of effective promotional tool.
The consumers shall as well, benefit from the adoption of a good
promotional tools which will invariably lead to increased awareness, better
pricing and a wider choice of market offerings.
5.4. RECOMMENDATIONS.
This study reveals that consumers are greatly influenced by promotions in
their choice of beauty and hygienic products in Enugu. However, the
problem is not using promotion but adopting good promotional tools that
would positively influence the consumer and ensure promotional synergy.
This study revealed that Hardis and Dromedas Company’s promotional
strategy has impacted on the consumers to an extent more than that of
their counter parts. It was observed that the management of the company
is still encountering promotional problems and equally not meeting up with
their goals because of poor timing and inadequate research. Based on this
research work, the following recommendations are made towards
improving the promotional tools for marketing of beauty products in Enugu
and in Nigeria as a whole.
1) Manufacturers of beauty and hygienic products should adopt
promotional tools that give much credence to advertising and sales
promotions followed by personal selling, publicity and public relations
in their respective order. Their frequencies should be increased also.
This will pave way for effective retention. It is said that repetition is a
mother of retention which invariably is a function of memory.
2) These companies in addition to developing promotional activities that
not only interest a particular age or sex but, cuts across all groups in
production are important. These activities, especially sales promotion
programmes must be pre-tested before introduction to the public to
reduce rate of unacceptability.
3) Company’s management should define clearly its promotional
objectives for each year before allocation of fund. This can be done
by constant contact with promotional experts. And for it to be
effective, they must follow it up by making funds available through
the company’s budget.
4) Research and Development Department (RSD) is necessary for every
organization to monitor the market trends for possible changes or
modification in the product features. This will help in designing
realistic offers both in prices and marketability of the products that
will spread round a good percentage of the population and create the
needed awareness.
5) Hardis and Dromedas Ltd should embrace erection of bill-boards in
and around the city and engage more in television and radio
advertisements in most of the television and radio stations within the
city. They only have radio advertisements in Cosmo FM. currently. It
should be expanded to other stations for effective, coverage.
6) They should engage in organizing state and local government
promotions to correct the probate unawareness that may arise from
the general promotional activities. This will allow the promotional
efforts of the company to be felt in the villages, town and local
government areas.
7) They should in addition to all mentioned above, endeavour to bring out
well-made products because. “a well made product is half sold”
therefore the quality of the product is the first step to its sales. This
goes to corroborate with the belief of a school of thought that a good
product without promotion is easier to sell than a bad product with
intensive promotion. This is because consumers look out for the best
quality and maximum satisfaction for their money. The inventor of a
better product will get nowhere unless he or she takes positive steps
to design an attractive package, price the product attractively and
place it in convenience distribution channels and bring same to the
attention of his target market and convince them on the unique
qualities of the product (Kolter, 2007).
These recommendations should be adopted by manufacturers of
consumer products to enhance turnover and bring about increment in
their profit. It will equally place the company at advantage in business over
other companies that do not apply promotional activities, tools and
messages.
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APPENDIX I
Department of Marketing
University of Nigeria.
Enugu Campus
Enugu
18th November, 2008.
Dear Sir/Madam,
I am a student of University of Nigeria, Enugu campus pursuing a Master of
Business Administration (MBA) in Marketing. As part of the requirements
for the award of the degree, I am currently carrying out a research on the
topic “An Appraisal of the Strategies used by Manufacturers of consumer
goods in Enugu. ( A case study of Hardis and Dromedas Ltd)”.
Kindly complete the questions in the attached questionnaire as all
information provided will be treated with utmost confidence. The research
is purely for academic purposes.
Thank you.
Yours sincerely,
Lawretta Uche Eze.
Instruction: Please tick and complete where necessary.
1. Gender.
(a) Male [ ]
(b) Female [ ]
2. Age bracket
(a) 1-18 years [ ]
(b) 18-25 years [ ]
(c) 26-35 years [ ]
(d) 36 and above [ ]
3. Marital status.
(a) Single [ ]
(b) Married [ ]
4. Educational qualification.
(a) No formal education [ ]
(b) FSLC [ ]
(c) GCE [ ]
(d) OND [ ]
(e) First Degree/HND [ ]
(f) Second Degree & above [ ]
5. Occupation ……………………………………… [civil servant, teacher,
lecturer, student, trader, lawyer, medical practitioner Specify if not
included].
6. Have you ever heard of Hardis and Dromedas products before?
(a) Yes [ ]
(b) No [ ]
7. Have you purchased any of their products before?
(a) Yes [ ]
(b) No [ ]
8. If you have, what will you say is/are your reason(s) for your choice?.
(a) Good quality [ ]
(b) Availability [ ]
(c) Affordability [ ]
(d) Good promotion [ ]
(e) Others specify [ ]
9. Have you ever seen or heard any promotional jingles about Hardis
and Dromedas products?
(a) Yes [ ]
(b) No [ ]
10. What type of promotional activities have you seen or heard about
Hardis and Dromedas products.
(a) Advertisement [ ]
(b) Public relations [ ]
(c) Personal selling [ ]
(d) Sales promotion [ ]
(e) Publicity [ ]
11. To what extent do you think that promotion of Hardis and Dromedas
products influences the demand of their products?
(a) To a great extent [ ]
(b) To some fair extent [ ]
(c) Not at all [ ]
12. Please grade in order of preference the promotional tool that best
appeals to your interest
(a) Sales promotion [ ]
(b) Advertising [ ]
(c) Publicity [ ]
(d) Personal Selling [ ]
(e) Public Relations [ ]
13. Do these promotional activities stimulate you to make bulk
purchases?
(a) Yes [ ]
(b) No [ ]
14. Which of the understated promotional tool attracts you most to
Hardis and Dromedas products?
(a) Sales promotion [ ]
(b) Advertising [ ]
(c) Publicity [ ]
(d) Personal Selling [ ]
(e) Public Relations [ ]
15. Do you agree that promotion of Hardis & Dromedas products allows
for fast sales which equally lead to high profitability?
(a) Strongly agree [ ]
(b) Agree [ ]
(c) Strongly disagree [ ]
(d) Disagree [ ]
16. Which promotional tool do you rarely hear or see about Hardis and
Dromedas products?
(a) Advertising [ ]
(b) Sales promotion [ ]
(c) Publicity [ ]
(d) Public Relations [ ]
(e) Personal Selling [ ]
17. How often do you receive gift items from Hardis and Dromedas?
(a) Very often [ ]
(b) Sometimes [ ]
(c) Rarely [ ]
(d) Not at all [ ]
18. Do you believe that promotional activities carried out by Hardis and
Dromedas Company are enough?
(a) Yes [ ]
(b) No [ ]
19. If “No” which one of the tools do you think should be adopted or
increased?
(a) Advertising [ ]
(b) Sales promotion [ ]
(c) Publicity [ ]
(d) Public Relations [ ]
(e) Personal Selling [ ]
20. What is your view on the effect of more committed use of
promotional tools on Hardis and Dromedas products in future?
(a) Very bright [ ]
(b) Bright [ ]
(c) Promising [ ]
(d) Bleak [ ]
APPENDIX III
Statistical F- Test to determine the extent to which respondents
are influenced by promotion.
To a
Great
extent
To
some
Fair
extent
Not at
all
Respondents
A
A2
B
B2
C
C2
(A+B=C)
Abakpa 50 2500 27 729 21 441 98
Emene 61 3721 29 841 7 49 97
Trans Ekulu 50 2500 40 1600 9 81 99
Uwani 48 2304 32 1024 2 4 82
Achara L/out 45 2025 42 1764 11 121 98
Zik Avenue 58 3364 40 1600 1 1 99
Ind. L/out 33 1089 49 2401 15 225 97
New Haven 50 2500 35 1225 13 169 98
Asata 47 2209 40 1600 11 121 96
Total 442 22212 334 12784 90 1212 864
Source: Survey Data (2008)
Where:
A = Number of respondents who were influenced by promotions to a
great extent.
B = Number of respondents who were influenced by promotions to
some fair extent.
C = Number of respondents who were not influenced by promotions
at all.
XA = 442 = 49
9
XB = 334 = 37
9
XC = 90 = 10
9
Nt = NA + NB NC =27
EXT =864
EXT2 = 746496
Xt= Ext 864 =32
Nt 27
746496 =27648
27
SSt=(Ext) 2 –C=746496-27648=718848
SSB=(EA) 2 + (EB) 2 + (EC) 2 =31497
NA NB NC
SSW = SSt-SSB =671402-31497 =639905
MSB =SSB 31497
DFB 2 = 15749
MSW = SSW =639905 =26663
DFW 24
F-Ratio =MSB = 15749 =0.59
MSW 26663
Dft =Nt-1 =27-1 =26
DfB = 3-1 =2
DfW =Nt-3 =27-3 =24
APPENDIX IV.
Statistical F-test to determine whether there is any significant difference
between the mean of the groups of respondents who preferred advertising,
sales promotion, personal selling publicity and public relations as the best
promotional tool for the marketing of Hardis and Dromedas products in
Enugu.
Responden
ts
XA XA2 XB XB2 X
C
XC
2
X
D
XD
2
XE XE2 A+B+C+D+
E
Abakpa 40 1600 30 900 5 25 9 81 15 225 99
Emene 38 1444 22 484 I2 14 7 49 18 324 97
Trans
Ekulu
38 1444 32 102
4
6 36 3 9 17 289 96
Uwani 26 676 40 160
0
9 81 5 25 19 361 99
Achara
L/out
36 1296 25 625 8 64 9 81 21 441 99
Zik Avenue 29 841 28 784 1
2
14
4
13 16
9
8 64 90
Ind. L/out 50 2500 20 400 5 25 17 28
9
3 9 95
New Haven 33 1089 44 193
6
6 36 6 36 9 81 98
Asata 36 1296 27 729 9 81 2 4 20 400 91
Total. 32
6
1218
6
26
8
848
2
6
9
63
6
71 74
3
13
0
219
4
864
Source: Survey Data (2008).
Where:
XA= Number of respondents who prefer advertising as the best
promotional tool for the marketing of Hardis and Dromedas products.
XB=Number of respondents who prefer sales promotion as the best
promotional tool for the marketing of Hardis and Dromedas products.
XC= Number of respondents who prefer Personal selling as the best
promotional tool for the marketing of Hardis and Dromedas products.
XD= Number of respondents who prefer publicity as the best promotional
tool for the marketing of Hardis and Dromedas products.
XE=Number of respondents who prefer public relations as the best
promotional tool for the marketing of Hardis and Dromedas products.
XA = EXA = 37 EXB =30
NA NB
EXC=8 EXD =9
NC ND
EXE=14
NE
Nt= NA+NB+ NC+ ND+ NE=346
Ext= EXA+EXB+EXC+EXD+EXE=8640
EXT2 =27126
Xt-EXT =864=24
Nt 36
C= E(Xt) 2 =(864) 2 25823
Nt 36
SSt=(Ext) 2-C=27126-20736=6390
SSb=(EXA) 2+ (EXB) 2 + (EXC) 2 + (EXD) 2 +(EXE) 2=4103
SSW=SSt-SSb=6390-4103=2287
MSb=SSb-4103=1367.7
MSW=SSW=2287=71.5
DFW 36
DFt =36-1=35
DFb=4-1=3
DFw=36-4=32
F-Ratio=MSb=1367.7=19.1
Msw 71.5
