CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

At the heart of business, nowadays, is the competition to attract consumer’s attention

towards product or services. Consequently, each producer needs to build a more attractive

strategy and action plan than its competitors. One prominent tool attracting consumer’s attention

towards products is promotion. According to Chacharsoughi and Yasory (2012), promotion is

one of the key factors in the marketing mix and has a key role in market success. Promotion is

used to ensure that consumers are aware of the product that the organization is offering. It is the

process of establishing communication relationship between a market and the public.

Promotion is quite different from mass communication, in which an organization

addresses largely undifferentiated mass audience for non-commercial purpose by such means as

press editorials, radio news, and television. Under marketing promotion, an organization would

be aiming at a deliberately differentiated audience for a commercial purpose and would employ

such means as advertising personal selling, sales promotion, publicity and public relations.

Promotion involves disseminating information about a product, product line, brand or company.

It is one of the four key aspects of the marketing mix.

Adetayo (2006) opines that promotion seeks to inform, remind and persuade target

consumers about the organization and its product. He further argues that promotion is often used

to help an organization differentiate its product from rivals. A promotion campaign is an inter-

related series of promotional activities designed to accomplish a specific objectives (Arvinlucy,

2012). The obvious goal of promotion management is to ensure that all the individual element of

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promotion mix work together to accomplish the organization overall promotion activities

(Asikhia, 2000). An organization adopts different process or strategies to disseminate

information about its production, product line, brand or company. These various processes are

described as the promotion strategy.

A promotion strategy can be considered as a process whereby information about the

organization products or services is encoded in a promotional message for delivery to the

customer (Chaharsoughi and Yasory, 2012). In effect, firms have variety of alternative

information delivery system available to them, which can be used to construct an appropriate

promotional mix strategy. This portfolio of alternative delivery mechanism include majority;

advertising sales promotion. Promotion is one of the marketing mix elements among a system of

five in a promotional plan; those elements are personal selling, advertising, sales promotion,

direct marketing, and publicity (Pemer, 2006). Promotion strategy differs depending on the

individual business or product, but all strive to increase product demand and awareness

(Achumba, 2002). A promotional mix specifies how much attention to pay to each of the five

subcategories and how much money to budget for each. A promotional plan can have a wide

range of objectives, including; sales increase, new product acceptance, and creation of brand

equity, positioning, competitive relations or creating a corporate image.

Fundamentally, however, there are three basic objectives of promotions to present

information to consumers as well as others, to increases demand; to differentiate a product from

others in the market place (Shook, 2005). Organizations have to communicate with their existing

and prospective customers about the new development in the organization. This, indeed, is a

phenomenal task in Nigerian market environment due to their characteristic nature which is

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further sum up by the nation of Nigerian’s economic, demographic, social, practical, legal,

religious, cultural and environmental forces.

Marketing communication is very important and at the same time, challenging in the

organization. The marketing communication mix element have become important players in the

life of any business, be it small, medium, or large. They help move market offerings (goods,

services and ideas) from manufactures| sellers to consumers and build and maintain relationships

with customers, prospects and other stakeholders of the company.

However, it is against this backdrop that this study seeks to determine how promotional

activities of Dangote Consumers Goods Company in Makurdi, Benue state affects its sales

performance.

1.2 Statement of the Problem

Promotional strategies play a very critical role in the marketing of products or services;

its main function is to help organization utilize the skills of employee and stakeholders and a

help business develop creative approach to sales and customer services, ensuring that the right

awareness is created for the product. Promotional strategies to a large is extent greatly improve

the sales performance of SMEs.

However most consumers’ goods companies in Nigeria are struggling to market their

products there are instances where consumers are not even aware of certain product in the market

and this has affected their sales performance in terms of not meeting their set target of

profitability, market share, and sales turnover. Where these are some levels of awareness, there

seem to be shortage of product/services offered by consumers goods companies are yet to enjoy

respected patronage should it be promotion strategy adopted by the company are insufficient or

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they are yet to adopt them in an efficient/effective manner to yield the determined result. Should

it be that the system of promotion adopted are not well coordinated or the type of advertising or

publicity are not well positioned, or perhaps the behavioral attitudes displayed during personal

selling are defections, thereby affecting sales. Therefore in line with the above this study seeks to

assess effect of promotional strategy on the sales performance of Dangote Consumers Goods

Company in Markurdi, Benue state, Nigeria.

1.3 Objective of the Study

The main objective of the study is to access the effect of promotion strategies on the sales

performance of Dangote Consumer goods Company in Makurdi, Benue State, Nigeria.

The specific objectives of the study are to:

i. determine the effect of promotional sales performance of Dangote consumer goods

company in Makurdi, Benue State, Nigeria;

ii. ascertain the effect of advertising on sales performance of Dangote consumer goods

company in Makurdi, Benue State, Nigeria;

iii. examine the effect of publicity on sales performance of Dangote consumer goods

company in Makurdi, Benue State, Nigeria;

1.4 Research Questions

The study will be guided by the following questions:

i. What is the effect of sales on the sales performances of Dangote consumer goods

Company in Makurdi, Benue State, Nigeria?

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ii. What is the effect of advertising on the sale performance of Dangote consumer goods

company in Makurdi, Benue State, Nigeria?

iii. What is the effect publicity on the sales performance of Dangote consumer goods

company in Makurdi, Benue State, Nigeria?

iv. What is the effect of personal selling on the sales of performance of Dangote consumer

goods company in Makurdi, Benue State, Nigeria?

1.5 Hypothesis

HO1: Sales promotion has no significant effect on the sales performance of Dangote Consumer

Goods Company in Makurdi, Benue State, Nigeria.

HO2: Advertising has no significant effect on the sales performance of Dangote Consumer

Goods Company in Makurdi, Benue State, Nigeria.

HO3: Publicity has no significant effect on the sales performance of Dangote Consumer Goods

Company in Makurdi, Benue State, Nigeria.

1.6 Significance of the Study

The study will be of importance to the organization, the researcher and the general public

in so many ways.

To the organization; since this research is conducive, organizations can use the findings to draw

important inferences drawn from the company’s strength, how to improve them against their

competitors and as well improve their weaknesses. Through this research, the company will be

able ti identify the marketing strategies to use.

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 To the future researchers who will be researching on a similar or related topic will benefit

from the findings by borrowing a leaf in form of related literatures. The study will also help build

on the researcher’s knowledge and understanding of the variables and again more skills of

conducting research.

And to the general public; the study will be of importance for people who might become

future managers, leaders and entrepreneurs. This research will enable marketing strategies and

identify the most appropriate one for their business and how to use the strategies to gain

competitive edges.

1.7 Scope of the Study

The study is on effect of promotional strategies on sales performance of Dangote consumer

goods Company in Makurdi, Benue State, Nigeria. The scope of the study is limited to Dangote

Cement PLC at Gboko, Benue State. The study covers the period of 2014-2021.

The study is narrowed to studying the promotional mix (sales promotion, advertising,

publicity and personal selling). Sales performance which is the dependent variable is measured

using sales growth and profitability.

Regression analysis is used as statistical tool of analysis.

1.8 Operational Definition of Terms

Advertising: This is the paid presentation and promotion of ideas, goods and services by an

identified sponsor in a mass medium. Examples include print ads, radio, television, billboards,

direct mail, brochures and catalogs, signs, in-store displays, posters, mobile apps, motion

pictures, web pages, banner ads, emails.

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Consumer: This is somebody that has a need for a product or service or one who buys regularly

from a producer or firm.

Marketing Mix: this is a combination of factors that can be controlled by a company to

influence consumers to purchase its products.

Marketing: The performance of business activities that direct the flow of goods and services

from procedures to users; it is the management of processes responsible for identifying,

anticipating and satisfying customer’s requirement profitability.

Personal Selling: This is the process of helping and persuading one or more persons to purchase

a goods or services or act on any idea through the use of an oral presentation, often in a face-to-

face manner or by telephone. Examples include sales presentations, sales meetings, sales training

and incentive programs for intermediary sales people, samples, and telemarketing.

Place (Distribution) Strategy: This is the method a firm uses to get products and services to

different channels and networks with objective to reach the end customer, either directly or

indirectly.

Promotion Strategy: This is a major component in the marketing mix strategies

Public Relations or Publicity: This is information about a firm’s products and services carried

by a third party in an indirect way. This includes free publicity as well as paid effects to

stimulate discussion and interest. It can be accomplished by planting a significant news story

indirectly in the media, or presenting it favourably through press release or corporate anniversary

parties. Examples include newspaper and magazines, articles, TVs and radio presentations,

charitable contributions, speeches, issues advertising, seminars.

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Sales Promotion: This is media and non-media marketing communication used for a pre-

determined limited time to increase consumer demand, stimulate market demand or improve

product availability. Examples include coupons, sweepstakes, contests, product sample, rebated,

tie-ins, self-liquidating premiums, tradeshows, and exhibition.

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 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This section focuses on the review of works that are related to the subject matter. Specifically,

this section is presented under the following sub-headings: theoretical framework, conceptual

framework, review of related empirical studies and summary of literature review.

2.1 Conceptual Framework

2.1.1 Promotion Strategy

In marketing, promotion refers to any type of marketing communication used to inform or

persuade target audience of the relative merits of a product, service, brand or issue. The aim of

promotion is to increase awareness, create interest, generate sales or create brand loyalty. It is

one of the basic element mix, which includes the four P’s: price, products, promotion and plan.

Promotion is also one of the elements in the promotional mix or promotional plan. These are

personal selling, advertising, sales promotion, direct marketing publicity and may also include

event marketing, exhibition and trade shows (Rajagopal, 2007).

A promotion plan specifies how much attention to pay to each of the elements in the

promotional mix and what proportion of the budget should be allocated to each element.

Promotion covers the methods of communication that a marketer uses to provide information

about its product. Information can be both verbal and visual. Asikhia (2000) defined promotion

strategy as the design and management of a marketing sub-system for the purpose of informing

and persuading present and potential customers and clients. The promotional elements are

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organic, for example, advertising can be seen as the taking of the horse to the stream while

personal selling is forcing the horse to drink some water.

Osuagwu (2002) submitted that promotion strategies are of substantial importance in the

efficiency and effectiveness of a company’s marketing efforts. He further argued that marketing

promotion elements play varying roles towards the achievement of corporate marketing goals

and objectives. Adetayo (2006) opined that the overall promotion effort usually includes several

individual promotion activities designed to accomplish a specific objective. The goal of

promotion management according to Adetayo (2006) is to ensure that all the individual elements

of the promotion mix work together to accomplish the organization’s overall promotion

activities.

According to Enikanselu (2008), companies that want more than “walk in” sales must develop an

effective program of communication and promotions. Successful promotion is an essential

ingredient in marketing strategy. Prospective buyers must learn about both the products’

distinctive wants satisfying characteristics and its availability. Establishing and maintaining

communications with target segment are the main tasks assigned to marketing promotion.

Osuagwu (2002) identified the objectives of promotion as information, stimulation of demand,

product differentiation, accentuating product value, and maintain stable product sales. The

elements of marketing promotions mix are involved in communicating information to customers,

clients or potential users about goods or services on offer. Their fundamental aim is to prompt

customers, clients or potential users to take positive action by placing orders, making enquiries

and purchasing on a continuous basis. The elements in the promotional mix are not mutually

exclusive. A firm will require some mixture of two or more of them depending on the type of

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product or service including its life cycle; the market competitions, the marketing promotions’

objective, among others. The amount of money available and other resources of the firm will

also affect an organization’s promotional mix.

2.1.2 Dimensions of Promotion Mix Strategies

Brassington and Pettitt (2000) has categorized the promotional tools into five main elements;

Advertising, Sales promotion, Public Relations, Personal Selling and Direct Marketing.

However, for the purpose of this study, four main aspects of a promotion mix strategies

recommended by Akabue (2016) are used. These include: sales promotion, advertising, publicity

and personal selling.

i. Sales Promotion

Sales promotions are temporary inducements to persuade procurement or trade of product.

Blythe (2006) illustrates sales promotion as any movement projected to bring about a temporary

increase in sales. Baker (1997) descries sales promotion as the marketing actions normally

specific to a place, time period or consumer group, which support a direct sale from customers or

middle men, through the offer of supplementary profits. This consists of numerous

communications activities engaged in an effort to create added value or inducements to

customers, retailers, wholesalers, or other business customers to arouse instant sales. Such efforts

are normally devised towards motivating product interest, trial, or acquisition. It is specifically

designed to enhance immediate sales and eventually create loyalty.

According to Brassington and Pettit (2002) sales promotion is tactical marketing techniques with

most short-term incentives, which are to add value to the product or service, in order to achieve

specific sales or marketing objectives. Furthermore, Meidan (1996) states that it has two

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distinctive qualities. Firstly, it provides a “Bargain Chance” since many sales promotion tools

have an attention gaining quality that communicates an offer that although they appeal to a wide

range of buyers, many customers tend to be less brand loyal in the long run. Secondly, if sales

promotions are used too frequently and carelessly, it could lead to insecure customers,

wondering whether the services are reliable or reasonably priced.

ii. Advertising

Advertising is a reward form of non-personalized communication about a business, product or

idea by an acknowledged sponsor (Kotler and Armstron, 2010). The paid aspect is significant

since the space for the advertisement is bought. Advertising involves mass media (such as TV,

radio, and magazines). By paying for the advertising space, a firm decides on what to say and, to

some extent, the message to be conveyed. Where the message subject matches any specific

desired brand for public, their customers get more information on it that results in positive

response toward the goods (Praxmarer, 2009). The brand and company image can be enhanced

if effective marketing communication is practiced (Kotler, 2006).

Brassington and Pettit (2000) define advertising strategy as any paid form of non-personal

communication directed towards target audiences and transmitted through various mass media in

order to promote and present a product, services or idea. The key difference between advertising

and other promotional tools is that it is impersonal and communicates with large numbers of

people through paid media channels. The institutional advertising consists of promotion of the

firms’ image as a whole and promotion of the products offered, with extra emphasis on the

specific firm’s name organization. The organization seeks through its marketing communications

to build awareness and impress customers looking for the best range of healthcare services, due

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to the former impression of laboratory services organizations as impersonal institutions with no

interest in their customers as people, and of healthcare services as abstract and quite similar the

institutional advertising has become more and more important (Meidan, 1996).

Brand advertising follows closely in the footsteps of institutional advertising. Its purpose is to

create awareness of the laboratory services organizations’ name and to advertise the different

services it is offering. Since healthcare firms are serving a mass of people, the problems of brand

advertising are to know who to advertise to, and how to advertise (Pettit, 2000). While

institutional advertising is directed towards the whole population, the brand advertising of

particular products has to be much more selective since it has to show that the consumer will

benefit from the service. Mortimer (2001) states that an important part of advertising is to make

the service tangible in the mind of consumer in order to reduce perceived risk and provide a clear

idea of what the service comprises. Furthermore, she considers it important to advertise

consistently, with clear brand image in order to achieve differentiation and encourage word-of-

mouth communication.

iii. Publicity

Publicity is a non personal, indirectly rewarded performance of a company, goods, or service.

With publicity, an organization has little control of what is said, its audience and timing of the

communication. (Grasby et al., 2000) describes publicity as utilization of the medium to

facilitate free reporting of stories linked to a product. According to Brassington and Pettit (2000)

the essence of public relations (PR) is to look after the nature and quality of the relationship

between the organization and its different publics, and to create a mutual understanding. Public

relations cover a range of activities, for example the creation and maintenance of corporate

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identity and image; charitable involvement, such as sponsorship, and community initiatives;

media relation for the spreading of good news as well as for crisis management, such as damage

limitation.

Moreover, an organization can attend trade exhibitions to create stronger relationships with key

suppliers and customers as well as enhancing the organization’s presence and reputation within

the market (Brassington, 2000). Meidan, (1996) states that another part of public relations is the

publicity gained through magazines. Healthcare services obtain considerable publicity in so

called quality press, such as different healthcare journals. In popular newspaper the publicity is,

in contrary to the quality press, often negative from the healthcare firm’s point of view.

iv. Personal Selling

Brassington and Pettit (2000) argue that, personal selling is a two way communication tools

between a representative of an organization and an individual or group, with the intention to

form, persuade or remind them, or sometimes serve them to take appropriate actions.

Furthermore, personal selling is a crucial element in ensuring customers’ post-satisfaction, and in

building profitable long-term buyer-seller relationship built on trust and understanding.

Verhallen et al (1997) states that the increased completion within the fact changing environment

of healthcare services has led healthcare organizations to develop and maintain comprehensive

relationship with their customers.

Personal Selling is a two-way stream of communication linking a consumer and a trader,

designed to persuade an individual’s or group’s buying decision. It is a face-to-face contact with

one or more potential buyers for the purpose of making presentations, responding to questions,

and acquiring orders (Kotler, 2006). According to Jobber (2007), personal selling is the selling

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duty that involves face-to-face connection with a customer. Advantages of personal selling

strategy entail the fact that a salesperson can manage the party to whom the presentation is done.

Also, the supplier can see or take notice of the prospective buyer’s response to the message. If

the response is unfavourable, the salesperson can amend the message hence it is flexible.

Furthermore, Julian and Ramaseshan (1994) state that the long term person to person relationship

is an important factor for a retail firms to achieve a competitive advantage. Meidan (1996) points

out that once customer has chosen its laboratory services organizations, he is unlikely to switch

to another. Thus, personal selling is probably the most important element in the communication

press within the financial services industry. Lee (2002), states that personal selling can be

performed either face to face or through technological aids such as the internet.

2.1.3 Concept of Sales Performance of Consumer Goods Companies

Sales are the quantity of goods sold in number or amount of units during the normal operating

times of a company (Moghareh, Ghazaleh and Haghighi, 2009). It is a total amount of aspects

comprising gross sales, credit memos, income, delayed buildings and delayed shipments (Smith

and Rupp, 2003). Sales performance employs unprocessed information concerning the number of

consumer’s sales representative talks to compare with the quantity of actual sales. However it

can signify the rate of customer loyalty to the business hence enhancing sales performance can

automatically improve the number of loyal customer (McLelland, 2014).

Sales performance is the extent of the quantity of products sold or services sold in the regular

operations of an organization is a specific period. It is the amount of goods sold in number or

quantity of units throughout the regular working times of an organization (Moghareh et al.

2009). Sales performance is the addition of number of aspects consists of returns, gross sales,

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delayed shipments, delayed buildings and credit memos. Sales performace refers to the end

results of the relationship of selling price to costs, the size of output, and motivation of sales

forces (Abu, 2014). Sales performance is the measurement of the number of sales that an

employee makes for a business. It helps more people hit quota more often by focusing on tools

and processes to help the individual sales and channel personal (Harrison, 2005)

Sales performance is also defined as the process of overseeing and training employees to

advance their sales skills, processes, and results (Joshston and Marshal, 2013). Wright (2005)

posits that making sure the sales force are motivated, trained and are in the right territories is

critical to business success and every company should be focused on doing just that. In his own

contribution, Ndisika (2014) defined sales performance as the action or process of performing

sales task or sales functions. Edet (2003) defined sales performance as the performances of sales

tasks measured against certain standards: accuracy, completeness, speed and cost in a contract.

Ovie (2012) posits that sales performance is deemed to be fulfillment of an obligation in a

manner that release the sales force from all liabilities under the contract.

However, the study adopted the definition of Johnston and Marshall (2013) which sees sales

performance as the process of overseeing and training employees to advance their sales skills,

processes, and results. This is pertinent because the sales forces needs to be trained on the

marketing mix, this will not only improve their sales skills but will also produce impressive

result.

Sales performance is very critical in the profitability of any organization, no matter the size; a

key objective of the sales performace is to educate and motivate salespeople to set goals and

satisfy customers (Nebo, 2009a), it looks at the amount of sales made versus the amount of

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customers an employee comes in contact with (Ndisika, 2014). In other words, sales performance

basically is the practice of monitoring and guiding personnel to improve their ability to sell

products or services.

2.1.4 Measures of Sales Promotion

According to Salleh and Kamaruddin (2011) sales performance can be evaluated using a sales

volume analysis, marketing cost analysis and profitability analysis whereby a sales volume

investigation is conducted by a careful study of an organization’s record of its profits and loss

statement on the product lines, territories and key accounts of the customers. For the purpose of

this study, sales performance is measured using sales growth and profitability.

i. Sales Growth

Sales growth refers to the amount a company derives from sales compared to a previous

corresponding period of time in which the later sales exceed the former. It is usually given as a

percentage (McGrath, 2001). Sales growth is considered positive for a company’s survival and

profitability. It is an important measure of performance (Courthard, 2007). Sales growth targets

play a major role in the perceptions of business managers. Kaplan and Norton (1996) argue that

firms must use a wide variety of goals, including sales growth, to effectively reach their financial

objectives. Factors that influence sales growth range from promotion of internal motivation and

retaining of talented employees to the implicit opportunities for investments in new technologies

and equipment in the production process.

Kaplan and Norton (1996) also claim that to reach their financial objectives effectively, firms

must use a wide diversity of goals, including sales growth. Sales growth generally utilizes

capacity more fully, which spreads fixed costs over more revenue resulting in higher

17
profitability. Fazli, Mohammed and Yasuo (2013) report that planning systems generally begin

with sales targets. An emphasis on sales growth also provides a useful and visible benchmark to

motivate manager.

ii. Profitability

Profit refers to the total income earned by the enterprise during the specified period of time,

while profitability refers to the operating efficiency of the enterprise. It is the ability of the

enterprise to make profit on sales (Abdullahi and Buran, 2015). It is the ability of enterprise to

get sufficient return on the capital and employees used in the business operation. Profitability

means ability to make profit from all the business activities of an organization, company, firm, or

an enterprise. It shows how efficiently the management can make profit by using all the

resources available in the market (Murad and Rula, 2015).

According to Delgado, Hernado and Nieto (2004) profitability is the ability of a given

investment to earn a return from its use. However, the term ‘profitability’ is not synonymous to

the term ‘efficiency’. Profitability is an index of efficiency; and is regarded as a measure of

efficiency and management guide to greater efficiency. Profitability is the state or condition of

yielding a financial profit or gain. It is often measured by price to earnings ratio. According to

Alsmad and Alwabel (2011) for one to realize how well an organization performing it is much

more useful to consider return on assets (ROS) and return on equity (ROE).

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2.1.5 Other Sub-Themes

2.1.5.1 Relationship between Promotion Strategies and Sales Performance of Consumer

Goods Companies

i. Effect of Sales Promotion on Sales Performance of Consumer Goods Companies

Like all businesses, manufacturers must sell their products to make a profit. Some manufacturers

sell their products to intermediaries, which in turn sell the products to the end consumer. Other

manufacturers sell their products directly to consumers. Still others adopt a hybrid approach. The

primary importance of a sales promotion is to offer an inducement to buyers, increasing sales. In

some cases, the other components of the promotional mix support a sales promotion strategy. For

example, end advertising campaign might be used to publicize a sales strategy.

Sales promotion can help a manufacturing organization improve its financial performance;

selling larger amounts of inventory increases revenues. Sales promotions might persuade

skeptical buyers to make a purchase, possibly developing customer loyalty and leading to long-

term relationships. Sales promotions also help manufacturers rid themselves of surplus inventory

if a manufacturer produces more items than necessary, perhaps due to an inaccurate sales

forecast, for instance. Uyi (2012) posit that sales promotion programme attracts the consumers

and stimulates them for larger purchases leading to increased sales. The offer of off-season

discounts, price cut etc. on seasonal products like fridge, coolers, fans, etc. are able to maintain

regular are continuous sales of such items ((Fornell, 2005).

Mohd and Wannur (2012) opine that sales promotion makes the advertisement more effective to

push the sales. It is effective technique to minimize the satisfaction of customers that have been

created by retail selling. Sales promotion techniques have proved successfully in introducing

19
new product and services. By the supply of free samples, the new product makes its place in the

market (Osuagwu, 2002). Larger sales reduce production costs, increase profits, special identity

and goodwill of the producer, etc. achieved through sales promotion measures can help to face

the competition more effectively.

ii. Effect of Advertising on Sales Performance of Consumer Goods Companies

Advertising appeals aim to influence the way consumers view themselves and how buying

certain products can be beneficial to them. The message conveyed through advertising appeals

influence the purchasing decisions of consumers. Different types of appeals in adverts can be

seen in the media today (Salman, 2013). Advertising informs, creates the need for a product or

service, and encourages prople to purchase. The more prople have responded to the ad, the better

it is for the economy and the economical well-being of society (Kotler, 2002).

Advertising information has a significant impact on the formation of the consciousness of each

individual. When advertising is addressed to consumers, besides the promotion of a product, it

also helps to form ideological values of the society and at the end has an effect on the character

of social relations (Chandy, 2001). If an advertisement succeeds at both it can help draw an

audience to the product or service and build a relationship between the consumer and company.

Establishing this connection should lead to a boost in sales for the business (Olufayo, Ladipo and

Bakare, 2002).

iii. Effect of Publicity on Sale Performance of Consumer Goods Companies

Consumers today are more cautious when spending; that’s why having credibility is so essential

to a successful business. Because PR and advertising are very different things, consumers are

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likely to give credibility to your business when they see it mentioned in the media

(uncompensated) compared to when they see your ads or billboards. Studies show that PR has 7

times more credibility among consumers than advertising (Soethoudt, 2010). With PR, it is much

easier to aim and fire on that target market you are hoping to reach (Swait, 2002). Media sources

can place the information that is right up the consumer’s alley and give them the required

information they need.

While it is true that PR can be costly, if you hire the wrong firm, considering the cost of other

promotional advertising, it is on the cheap end of the sale (Strang, 2006). When you step back

and look at the cost of PR considering the possible leads when reaching the right market, you

will find that the cost is very beneficial. PR is not just promoting an item or a special PR takes

your entire business and puts it in the lights. This helps create an image of your company and

created the possibility of a better rounded patronage. Effective PR leaves your company with a

positive image, which is always helpful in the future. Other areas where public relation has

significant effect on sales performance is in the launch new products and services, repostion a

product or service, create or increase interest in a product, service, or brand, influence specific

target groups, defend products or services that have suffered from negative press or perception,

enhance the firm’s overall image. The result of an effective public relations stratefy is to generate

additional revenue through greater awareness and information for the products and services an

organization offers.

iv. Effect of Personal Selling on Sales Performance of Consumer Goods Companies

Personal selling is an important marketing tool for consumer goods companies; companies can

undertake personal selling by hiring sales representative who visit customers or by contacting

customers by telephone. Companies selling to consumers may find it uneconomical to deal with

21
individual customers, unless they are selling face-to-face in a mall, marketing high-value

products such as cars or selling products that require demonstration, such as smart phones or

computers. Some of the effects of personal selling includes:

i. Persuading Prospects: Sales representatives use their personal selling skills to increase

the chances of a successful sale. They aim to understand a prospect’s needs and offer a

solution to those needs in the form of a product or service that provides strong benefits

and represents value for money (Andras and Srinivasan, 2003). If prospects pose

objections, sales representatives use their powers of persuasion to overcome the

objections and convice prospects that they are making the right choice by buying a

product or service or service.

ii. Selling Complex Products: Companies that sell complex products must be able to

demonstrate or explain products to potential customers and deal with questions or

queries. Sales representatives can be present products in a logical way, forcusing on the

benefits that are relevant to different decision-makers, such as technical managers,

purchasing officers or finance executives (Kotler and Armstrong, 2009). Representatives

use their experience to gauge a prospect’s response to their sales pitch and adjust their

presentation to individual prospects’ level of understanding or interest.

iii. Managing the Sales Cycle: Personal selling is important to companies marketing

products that require a long sales cycle. In business-to-business marketing, prospects

move through a buying process that involves a number of stages, including identification

of a need, development of a specification, selection of potential suppliers, evaluation of

suppliers’ offerings and a final purchasing decision. Sales representatives can influence

22
 each state of the process of ensuring that prospects are fully aware of a supplier’s

capability and product benefits (Amadi, 2014).

iv. Developing Customer Relationships: To buil long-term revenue for the future,

representatives use personal selling skills to develop strong relationships with customers

(Uyi, 2012). They also maintain contact between sales to ensure that customers consider

their company when they are planting their next purchase.

v. Immediate Feedback: This is the only market promotion technique that provides an

immediate feedback. At the end of every call/visit, a saleman can easily judge whether

the customer is interested or indented to buy (Uyi, 2012).

vi. Customer Confidence: By systematic sales talk and presentation, a capable salesman

can remove all doubrs, quarries, objections and misunderstandings, and can win

customer’s confidence. It increases customers’ faith in company and its offers (Efosa,

2011).

2.2 Review of Related Empirical Studies

Esezobor (2011) investigated promotion strategy as a tool for enhancing the sales performance of

SMEs in Warri metropolis. The study employed the survey research design method. The

population for the study comprises of employees of SMEs in Warri metropolis; simple random

sampling technique was used in the selection of 78 respondents as sample for the study. Chi-

square was used in testing the hypotheses; the study found that promotion strategy has a

significant positive effect in enhancing the brand awareness of products; promotion strategy has

a significant positive effect in enhancing consumer’s loyalty; promotion strategy has a significant

positive relationship in enhancing demand for SMEs product in Benin City. The study is related

and relevant to this current study but the scope differs.

23
Anayo (2012) carried out a study on the effect of promotion strategy on sale performance of

manufacturing companies in Onitsha. The study employed the survey research design method.

The population of the study comprises of manufacturing companies in Onitsha. Simple random

sampling technique was used in the selection of 133 respondents as sample for the study. The

responses from the respondents were analyzed in simple percentage and presented in tables; Chi-

square was used for testing the hypotheses. The study found that increasing brand awareness,

providing information, increasing customer traffic, and building sales and profit are the major

effect of promotion on sales performance of manufacturing companies in Onitsha. The study is

related to the current study since the focus is also on promotion strategy but the scope of the two

studies differs.

Irabor (2014) investigated the role of promotion strategy on sale performance of SMEs in Benin

City. The population comprises of all selected SMEs in Benin City. Simple random sampling

technique was used in selecting 378 respondents as sample for the study. The responses from the

respondents were analyzed in simple percentage and presented in tables; Chi-square was used for

testing the hypotheses. The study found that conveying news to customers about the benefit of

product, helping achieve organizational objectives, brand awareness, improving brand image,

and encouraging demand traffic are the major roles of promotion strategy on sales performance

of SMEs in Benin City. Findings of the study are considered relevant to this present study but the

scope of the two studies differs.

Gbenga (2015) investigated the effect of promotion strategy on the sales performance of SMEs

in Ogun State. The study employed the descriptive research design method. The population of

the study consists of SMEs in Ota, Ijebu-Ode, and Abeokuta. Simple sampling technique was

used in the selection of 400 respondents as sample for the study. The responses from the

24
respondents were analyzed in simple percentage and presented in tables; Chi-square was used for

testing the hypotheses. The study found that promoting brand, creating awareness, increasing

sales, and providing product information are the major effect of promotion strategy on sale

performance of SMEs in Ogun State. The study is related to both the depended and independent

variables used in this current study. The study was however carried out in Ogun State, Nigeria

while the present study is carried out in Makurdi, Benue State, Nigeria.

Abayomi (2015) investigated the effect of promotion strategy on sales performance of SMEs in

Ibadan. The study comprises of selected SMEs in Ibadan. Simple random sampling technique

was used in the selection of 200 respondents as sample for the study. The responses from the

respondents were analyzed in simple percentage and presented in tables; ANOVA was used for

testing the hypotheses. The study found that there is a significant effect of advertisement on sales

performance; there is a significant effect of sale promotion on sale performance; the study also

finds that there is a significant effect of public relation on sale performance of SMEs in Ibadan.

The dimensions of promotion strategies used in the study are also used in this current study.

Akabue (2016) carried out a study on promotion and sales performance of SMEs in Benin City.

The study employed the descriptive research design. The population of the study comprises of

employees of selected SMEs in Benin City. Simple random sampling was used in the selection of

122 respondents as sample for the study. The responses from the respondents were analyzed in

simple percentage and presented in table; ANOVA was used for testing the hypotheses. The

study revealed that promotion has a very significant relationship on the sales performance of

SMEs in Benin City. The study focused on SMEs in Benin City while the present study focuses

on consumer goods companies in Makurdi, Benue State, Nigeria.

25
2.3 Theoretical Framework

The study considers the hierarchy of effects theory and planned behavior theory as relevant to

this study. The hierarchy of effects theory was adopted for the study.

2.3.1 Hierarchy of Effect Theory

The theory propounded by Lavidge and Steiner (1961) is that there are six steps from viewing a

product advertisement to product purchase and the job of the advertiser is to encourage the

customer to go through the six steps and purchase the product. The six stages according to

Lavidge and Steiner (1961) includes:

Awareness

The customer becomes aware of the product through advertising. This is a challenging step; there

is no guarantee that the customer will be aware of the product brand after they view this advert.

Customers see many adverts each day but will only remember the brand of a tiny fraction of

products.

Knowledge

The customer begins to gain knowledge about the product for example through the internet, retail

advisors and product packaging. In today’s digital world, this step has become more important as

consumers expect to gather product knowledge at the click of a button. Consumers will quickly

move to competitor brands if they do not get the information they want. The advertiser’s job is to

ensure product information is easily available.

26
Liking

As the title a state, this step is about ensuring that the customer likes your product. As an

advertiser what features can you promote to encourage the customer to like your product?

Preference

Customers may like more than one product brand and could end up buying any one of them. At

this step, advertisers will want the customer to disconnect from rival products and focus on their

particular product. Advertisers will want to highlight their brand’s benefits and unique selling

points so that the customers can differentiate it from competitor brands.

Conviction

This step is about creating customers desire to purchase the product. Advertisers may encourage

conviction by allowing customers to test or sample the products. Example of these are inviting

customers to take a car for a test drive or offering consumers a free sample of a food product.

This reassures consumers that the purchase will be a safe one.

Purchase

Having proceeded through the above stages, the adviser wants the customer to purchase their

products. This stage needs to be simple and easy; otherwise the customers will get up and walk

away without a purchase. For example, a variety of payment options encourages purchase whilst

a complicated and slow website discourages purchase.

Lavidge and Steiner (1961) suggested that the six steps can be split into three stages of

consumer behavior which are cognitive, affective and conative.

27
 i. Cognitive (thriving) so that the customer becomes products aware and gather product

knowledge.

ii. Affective (feeling) so that the consumer becomes the product brand and has conviction in

it.

iii. Conative (behavior) so that the customer buys the product brand.

The job of the advertiser is to promote the three behaviours so that the consumer proceeds to

conative behavior and purchase the product. The consumer must first be aware that the product

exists. He or she must then be motivated to give some attention to the product and what it may

provide in the next stage. The need is for the consumer to calculate the merit of the product,

hopefully giving the product a try. A good experience may lead to continues use. It should be

noted that the consumer must go through the earlier phases before the later ones can be

accomplished. The basic of value of hierarchy of effects is its usefulness to determine

appropriate marketing communication strategy and the evaluation of communication efforts.

2.3.2 Planned Behaviour Theory

The theory of planned behavior proposed by Ajsen (1985) states that attitude towards

behavior, subjective norms, and perceived behavioural control, together shape an individual’s

behavioural intention and behaviours. According to the theory, behavior may be modified by

sales promotion stimuli, which changes beliefs, attitudes and eventually intentions and behavior.

If the intervention influences customers, it changes intention and eventually changes behavior.

The relevance of the theory is that a worthwhile promotional incentive from the organization

influences the behaviour of the consumers to buy.

28
 The significance of the theory is that it predicts an individual’s intention to engage in a

behaviour at a specific time and place. It posits that individual behavior is driven by behavior

intentions, where behaviour intentions are a function of three determinants; an individual’s

attitude towards behaviour, subjective norms, and perceived behavioural control (Ajzen, 1991).

The theory was anchored on planned behaviour; this theory was accepted because the

model is based on the premise that individuals make logical, reasonable decisions to engage in

specific behaviours by evaluating the information available to them. The performance of a

behaviour is determined by the individual’s intention engaged in it (influenced by the value the

individual places on the behaviour, the ease with which it can be performed and the views of

significant others) and the perception that the behaviour is within his/her control. TPB model

based on attitudes, social support, self-arthritis (Strating, 2006), whilst no validated

questionnaires are available, a comprehensive guide to developing measure of TBP components

is given in Ajzen (1991). A challenge in TBP measurement is the difficulty in conceptualizing

and capturing attitude.

2.3.3 Relevance of Hierarchy of Effects Theory

The response hierarch theory is adopted for this study because it explains the different stages

used by marketers in promoting their products. The theory shows that when these steps are

followed, consumers of a product will be able to understand the company’s product better and

have a change in their buying behaviour which ultimately leads to increase in sales performance.

2.4 Summary of Literature Reviewed

The study reviewed hierarchy of effects theory and planned behaviour theory; the study also

reviewed the concept of marketing strategy as well as sales performance. Empirical studies

29
related to the study were also reviewed; the reviewed studies focused on marketing strategy and

sale performance. However, none of the study focused on effect of marketing strategies on sales

performance of Breweries industries in Makurdi, Benue State, Nigeria; this implies that a gap

exists. It is this gap that this study intends to fill, which is to examine the effect of promotion

strategies on sales performance of Breweries industries in Makurdi, Benue State, Nigeria.

30
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Study Area

Benue is the twelfth largest state in Nigeria, and is located approximately in the center of the

country. It is geographically unique in Nigeria because its boundaries surround the Makurdi,

Benue State, having the entire Makurdi Benue state in its central and northern part. The capital is

Makurdi. Benue State is located in Nigeria’s middle belt. With an area of 26, 899 square

kilometers, the State has an estimated population of about three million people. Though situated

in the tropical zone, a higher altitude means that Benue State has a near temperate climate with

an average temperature of between 13 and 12 oC. Benue State is known as the food basket of the

nation Home.

The study will be carried out in Dangote Cement PLC Gboko, Benue State. Dangote cement is

one of the largest Fact Moving Consumer Goods (FMCG) company in the West Africa region.

The company manufactures and distributes an outstanding collection of popular brands across

the cement sectors. The company produces under the brand name Dangote Cement Company

PLC.

3.2 Population of the Study

The population of this study comprised of consumers of Dangote cement company PLC Gboko,

Benue State, Nigeria. The population is estimated at 65 (see table 1 below).

31
Table 1: Population of consumers of Dangote Cement Company PLC Gboko, Benue State

S/No Surveyed Groups Number of Surveyed Groups

1 Retail consumers 11

2 Benefited consumers 19

3 Final consumers 35

Total 65

Source: Human Resource Department, Dangote cement company PLC, Benue State, Nigeria

(2021).

3.3 Sample Size and Sampling Technique

Due to the manageable population size, census sampling was used in selecting 65 employees for

the study.

3.4 Method of Data Collection

Data used for the study were collected from the primary and secondary source; the primary

source includes the questionnaire, while the secondary source includes journals, articles,

bulletins, internet resources and human resources department of the organization.

3.4.1 Data Collection

The instrument to be used by the researcher to carry out this work is a questionnaire. The

questionnaire was administered to the respondent by the researcher. The questionnaire was

divided into two (2) sections: Section a deal with the demographic of the respondents while

items in Section B deal with the research questions/objectives.

32
3.4.2 Validation of the Instrument

The instrument was validated by marketing experts who certified that the instrument satisfied

both face and content validity. Construct validity was also carried out using factor analysis. The

result of the Bartlett’s test of Sphericityat 1% level of significance showed that the items were

highly significant (p<0.001). The results of KMO and Bartlett’s Test was.89 with Approx. Chi-

square = 735.121 and sig = .000. The result is presented in Table 2:

Table 2: KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .789

Approx. Chi-square

835.121

Bartlett’s Test of Sphericity Df 10

Sig. .000

Source: SPSS Output, 2021.

3.4.3 Reliability of the Instrument

The test and retest technique were employed in determining the reliability of the instrument. The

researcher used Cronbach’s alpha to ensure reliability of the instruments; a Cronbach’s alpha

coefficient which indicates 0.8 implies that the instrument is reliable. The result is presented in

Table 3:

33
Table 3: Reliability Test Results

Variable Cronbach’s Alpha

1. Sales Promotion 0.768

2. Advertising 0.833

3. Publicity 0.718

4. Personal Selling 0.793

5. Sales Performance 0.789

Overall Reliability 0.780

Source: SPSS Output, 2021.

3.5 Method of Data Analysis

The study used descriptive statistics like tables, frequencies, simple percentages, mean and

standard deviation for data presentation and analysis while regression analysis was used in

testing of the hypotheses. The analysis was done with the aid of Statistical Package for Social

Science (SPSS Version 21).

Decision Rule

Standard error test was used in testing the hypothesis while decision rule was used to accept or

reject a hypothesis. If the standard error of bi [S (bi) > 1/2 bb1] accepts the null hypothesis, that

is, accept that the estimate bi is not statistically significant at the 5% level of significance if the

standard error of bi is statistically significant at the 5% level of significance.

34
3.6 Variable/Model Specification

3.6.1 Variable Specification

In this study, sales performance is regarded as a function of promotion strategy. Promotion

strategy is measured using sales promotion, advertising, publicity and personal selling.

3.6.2 Model Specification

The linear regression model is specified below:

Based on these determinant factors, the model for this study is formulated and specified

functionally as:

SPS = f (PS) (1)

SPS = f {SP, AD, PB, PS} (2)

Where:

SP = Sales Performance

Sp = Sales Promotion

AD = Advertising

PB = Publicity

PS = Personal Selling

The above model can be expressed in its estimated form as:

35
SP = a0 + a1 + SP + a2 AD + a3 PB + a4 PS + U (3)

Where:

SP = The dependent variable

SP, AD, PB, PS = The independent Variables

a0 = The autonomous intercept of the model

a1 to a4 = The parameters to be estimated

U = random error term

The appropriate expectations about the signs of the coefficients of the parameters are:

a1>0, a2>0, a3>0, a4<0

36
 CHAPTER FOUR

RESULTS AND DISCUSSION

4.1 Introduction

This section deals with the presentation and interpretation of the results, it also focuses on the

discussion of findings. In this section, testing of data is carried out.

4.2 Data Presentation and Analysis

A total of 65 copies of the questionnaires were distributed to the respondents out of which 50

copies of the questionnaire was returned, representing 93%. The number of questionnaires

retrieved is high enough for meaningful research.

37
Table 4: Demographic Information (n=65)

Items Frequency Percentage

Sex

Male 30 46%

Female 35 54%

Age

18 – 25 years 20 31%

26 – 33 years 27 42%

34 – 41 years 10 15%

42 years and above 8 12%

Level of Education

Non-formal education 20 31%

Primary education 15 23%

Secondary education 12 18%

Tertiary education 18 28%

Length-in-service

Less than 1 year 20 31%

1 – 3 years 30 46%

4 – 7 years 10 15%

More than 8 years 5 8%

Source: Authors Computation, 2021

38
The sex distribution of the respondents in the study area shows that 30 (46%) of the respondents

are male while 35 (54%) of the respondents are female. The distribution of the respondents

according to age shows that 20 (31%) of the respondents are within the age bracket of 18 – 25

years, 27 (42%) of the respondents in the study area are within the age bracket of 26 – 33 years,

10 (15%) of the respondents fall within the age bracket of 34 – 41 years, while 8 (12%) of the

respondents are above 42 years.

The distribution of the respondents according to the level of education shows that 20 (31%) of

the respondents had non-formal education, 15 (23%) of the respondents had primary education,

12 (18%) of the respondents had secondary education while 18 (28%) of the respondents had

tertiary education.

The distribution of the respondents according to the length in services shows that 20 (31%) of the

respondents had been in the service of the organization for less than 1 year, 30 (46%) of the

respondents have worked for 1 – 3 years, while 10 (15%) of the respondents have worked for 4 –

7 years, while 5 (8%) of the respondents are more than 8 years.

39
Table 5: Effect of sales promotion on sales performance

Item SA A U D SD

Persuade buyers to make purchase 65 0 0 0 0

100%

Increase sales volumes 65 0 0 0 0

100%

Encourage customers loyalty 65 0 0 0 0

100%

Improve the effectiveness of 65 0 0 0 0

advertisement and personal selling 100%

Effective steps in combating competition 65 0 0 0 0

100%

Encouraging market penetration 65 0 0 0 0

100%

Source: Field Survey, 2021

40
The distribution of the respondents according to the effect of sales promotion shows that

majority (100%) of the respondents strongly agree that persuading buyers to make a purchase is

an effective sales promotion on sales performance in the study area. Majority (100%) of the

respondents strongly agree that increasing sales volume is an effect of sales promotion on sales

performance in the study area. Majority (100%) of the respondents strongly agree that

encouraging customer loyalty is an effect of sales promotion on sales performance in the study

area.

Majority (100%) of the respondents strongly agree that improving the effectiveness of

advertising and personal selling is an effect of sales promotion on sales performance in the study

area. Majority (100%) strongly that combating competition is an effect of sale promotion, while

majority (100%) of the respondents strongly agree that market penetration is an effect of sales

promotion on sales performance in the study area.

The implication of this is that persuading buyers to make purchase, increasing sales volumes,

encouraging customer’s loyalty, improving the effectiveness of advertising and personal selling,

aiding in combating competition, and enabling market penetration are the major effects of sales

promotion on sale performance in the study area.

41
Table 6: Effects of advertising on sales performance

Item SA A U D SD

Creating brand awareness 65 0 0 0 0

100%

Aid in fighting competition 5 1 40 12 7

8% 2% 62% 18% 1%

Enhance the launch of new product 65 0 0 0 0

100%

Increase the demand for product 65 0 0 0 0

100%

Improves customers loyalty 5 1 40 12 7

8% 2% 62% 18% 1%

Source: Field Survey, 2021

42
The distribution of the respondents according to the effect of advertising on sales performance as

presented in Table 6 shows that majority (100%) of the respondents strongly agree that creating

brand awareness is an effect of advertising. Majority (62%) of the respondents were undecided

on aid in fighting competition as effect of advertising on sales performance. Majority (100%) of

the respondents strongly enhancing the launch of new product, majority (100%) of the

respondents strongly agree that increasing the demand for product, while majority (62%) of the

respondents agree that improving customers loyalty is an effect of advertising on sales

performance of Consumer Goods Companies in Makurdi, Benue State, Nigeria.

The implication of this is that creating brand awareness, enhancing product launch, increasing

product demand, and improving customer’s loyalty are the major effect of advertising on sale

performance in the study area.

43
Table 7: Effect of Publicity on sales performance

Item SA A U D SD

Create or increase interest in a product 30 35 0 0 0

46% 54%

Defend product that have suffered from 65 0 0 0 0

negative perception 100%

Reposition a product 65 0 0 0 0

100%

Aid in launching a product 65 0 0 0 0

100%

Influence specific target group 0 30 35 0 0

46% 54%

Source: Field Survey, 2021

44
The distribution according to the effect publicity on sales performance shows that majority

(54%) of the respondents agree that crating or increasing interest in a product is an effect of

publicity on sales performance. Majority (100%) of the respondents strongly agree that

defending products that have suffered negative perception is an effect of publicity on sales

performance. Majority (100%) of the respondents strongly agree that repositioning a product is

an effect of publicity on sales performance. However, majority (54%) of the respondents were

undecided on influencing specific target group as an effect of publicity on sales performance.

The implication of this is that increasing product interest, defending product, repositioning a

product, aiding product launch, and influencing specific target group are the major effects of

publicity on sales performance.

45
Table 8: Effects of Personal Selling on sale performance

Item SA A U D SD

Persuading prospect 65 0 0 0 0

100%

Managing the sales cycle 2 1 60 1 1

3% 2% 92% 2% 2%

Developing customer relationship 65 0 0 0 0

100%

Provide immediate feedback 65 0 0 0 0

100%

Improving customer confidence 5 1 40 12 7

8% 2% 62% 18% 1%

Source: Field Survey, 2021

46
The distribution of the respondents according to the effect of personal selling shows that majority

(100%) of the respondents strongly agree that persuading prospect is an effect of personal selling

on sales performance. Majority (92%) of the respondents were undecided on managing sale

cycles as an effect of personal selling. Majority (100%) of the respondents strongly agree that

developing customer relationship is an effect of personal selling on sale performance.

Majority (100%) of the respondents strongly agree that providing immediate feedback is an

effect of personal selling on sale performance. Majority (100%) of the respondents strongly

agree that improving customer confidence is an effect of personal selling on sale performance.

The implication of this is that persuading prospect, developing customer relationship, providing

immediate feedback and improving customer confidence are the major effect of personal selling

on sale performance in the study area.

47
Table 9: Model Summary

Model R R-Square Adjusted R-Square Std. Error of the

Estimate

1 689 .706 .702 8.268

a. Predictors: (Constant), Sale Promotion, Advertising, Publicity, Personal Selling

Source: SPSS output (2021) version 21.0

The result in Table 9 above shows a positive relationship that existed between promotion and

sales performance of .984 or 98.4%. Majority of the respondents strongly agreed that, Sale

Promotion, Advertising, Publicity, and Personal Selling has positive effect on sales performance.

The result reveals a good degree of dependency of sales performance on promotion strategy. The

coefficient of determination (r2) shows the proportion score of 96% in sales performance from

promotion mix effect. The adjusted r square (r2) which shows the actual variation in sales

performance attributable to the variations in promotion strategy/mix reveals the actual variation

of 0.963 as against the 0.67 suggested by r2. The standard error of 12.186 suggests that the

independent variable (promotion strategy) is significant in explaining the variation in dependent

variable (sales performance).

48
Table 10: Analysis of Variance (ANOVA)

Model Sum of squares Df Mean Square F Sig.

Regression 33.935 4 8.848 24.648 .000b

Residual 1.144 33 .035

Total 35.079 37

a. Dependent Variable: Sales Performance

b. Predictors: (Constant), Sale Promotion, Advertising, Publicity, Personal Selling.

Source: SPSS output (2021) version 21.0

The F value from Table 10 is 24.648 and is significant because the significance level = 0.000 is

less than 0.005 (p<0.05). This implies that the regression model is statistically significant, valid

and fit. The validity implies that all independent variable (proxies of promotion strategy) are

capable of explaining a positive and significant relationship with the dependent variable (sales

performance).

49
Table 11: Regression Coefficientsa

Model Unstandardadized Coefficients Standardized T Sig.

B Std. Error Coefficients

(Constant) 11.013 .060 .211 .834

Sale Promotion .545 .077 .584 7.113 .000

Advertising .496 .118 .600 4.200 .000

Publicity .648 0.99 .799 3.509 .001

Personal Selling .410 .124 .526 3.312 .002

a. Dependent Variable: Sales Performance

Source: SPSS output (2021) version 21.0

50
The regression coefficient in Table 11 above for sales promotion is (b1) = .584 which

means that, one percent increase in sale promotion will result in 58% increase in the level

of sales performance, if other variables are kept constant. The t-value of 7.113 is

significant at .000 because the significance level is less than the p value, (p<0.05).

The regression coefficient for advertising is (b2) = 600 which means that one percent

decrease in advertising will lead to 60% increase in the level of sales performance if other

variables are kept constant. The t-value of 4.200 is significant at .000 because the

significant level is less than the p value, (p<0.05).

The regression coefficient for publicity is (b3) = .799 which means that, one percent

increase in publicity will lead to 79% increase in the level of sales performance, if other

variables are kept constant. The t-value 3.509 is significant at .001 since the significant

level is less than the p value, (p<0.05).

The regression coefficient for personal selling is (b4) = 5.26 which means that, one

percent increase in personal selling will lead to 52% increase in the level of sales

performance, if other variables are kept constant. The t-value 3.312 is significant at .002

since the significant level is less than the p value, (p<0.05).

51
4.2 Test of Hypotheses

Hypothesis One: Sales promotion has no significant effect on the sales performance of

Consumer Goods Company in Makurdi, Benue State.

To test the effect of sale promotion on sales performance, it was measured by the calculated p-

value = 0.000 at a significant level (a) 0.05. Since the computed p-value is less than the

significance level (a) of 0.05 (p-value 0.000 < a 0.05), the null hypothesis was rejected and the

alternative hypotheses accepted. Therefore, we conclude that, sale promotion has significant

effect on sales performance.

Hypothesis Two: Advertisement has no significant effect on the sales performance of Consumer

Goods Companies in Makurdi, Benue State.

To test the effect of advertising on sales performance, it was measured by the calculated p-value

= 0.000 at a significant level (a) 0.05. Since the computed p-value is less than the significance

level (a) of 0.05 (p-value 0.000 < a 0.05), the null hypothesis was rejected and the alternative

hypothesis accepted. Therefore, we conclude that, advertising have significant effect on sales

performance.

Hypothesis Three: Publicity has no significant effect on the sales performance of Consumer

Goods Company in Makurdi, Benue State.

To test the effect of advertising on sales performance, it was measured by the calculated p-value

= 0.001 at a significant level (a) 0.05. Since the computed p-value is less than the significance

level (a) of 0.05 (p-value 0.001 < a 0.05), the null hypothesis was rejected and the alternative

hypothesis accepted. Therefore, we conclude that, advertising have significant effect on sales

performance.

52
Hypothesis Four: Personal selling has no significant effect on the sales performance of

Consumer Goods Companies in Makurdi, Benue State.

To test the effect of personal selling on sales performance, it was measured by the calculated p-

value = 0.002 at a significant level (a) 0.05. Since the computed p-value is less than the

significance level (a) of 0.05 (p-value 0.002 < a 0.05), the null hypothesis was rejected and the

alternative hypothesis accepted. Therefore, we conclude that, advertising have significant effect

on sales performance.

4.3 Discussion of Findings

Findings of the study were discussed based on the objectives of the study and hypotheses as

follows:

4.3.1 Effect of sales promotion on sales performance of Consumer Goods Companies in

Makurdi, Benue State, Nigeria.

The study was able to establish the effect of sales promotion on sales performance. The study

found that persuading buyers to make purchase, increasing sales volumes, encouraging

customer’s loyalty, improving the effectiveness of advertising and personal selling, aiding in

combating competition, and enabling market penetration are the major effects of sales promotion

on sale performance. Regression was used to test the hypothesis at 5% level of significance and

the p-value (0.000) was lower than the significance level. This can be statistically given as P-

value 0.000 <a = 0.05. This finding concurs with Oyiade (2016) who highlighted the importance

of sales promotion. According to him, increasing sales volumes, encouraging customer’s loyalty,

and persuading buyers to make purchase are the main effects of sales promotion. The finding

53
also agrees with Uyi (2015) who reported a significant effect of sale promotion on sales

performance.

4.3.2 Effect of advertising on sales performance of Consumer Goods Companies in

Makurdi, Benue State, Nigeria.

The study was also able to establish the effect of advertising on sales performance. The study

finds that creating brand awareness, enhancing product launch, increasing product demand, and

improving customer’s loyalty are the major effect of advertising on sale performance. Regression

was used to test the hypothesis at 5% level of significance and the p-value (0.000) was lower

than the significance level. This can be statistically given as P-value 0.000 < a = 0.05. The

finding agree with Uzor (2015) and Amadi (2011) who both reported the significance of

advertising on sales performance. Amadi (2011) reported creating brand awareness, increasing

product demand, and improving customer’s loyalty. Uzor (2015) reported enhancing product

launch, creating brand awareness, and increasing product demand as the main effect of

advertising on sales performance.

4.3.3 Effect of Publicity on sales performance of Consumer Goods Companies in Makurdi,

Benue State, Nigeria.

The study also established the effect of publicity on sales performance. The study finds that

increasing product interest, defending product, repositioning a product, aiding product launch,

and influencing specific target group are the major effect of publicity on sales performance.

Regression was used to test the hypothesis at 5% level of significance and the p-value (0.001)

was lower than the significance level. This can be statistically given as P-value 0.001 < a = 0.05.

The finding concurs with Uyi (2012) and Nosa (2014). Lastly, the study was able to establish the

effect of personal selling on sales performance. The study finds that persuading prospect,

developing customer relationship, providing immediate feedback and improving customer

54
confidence are the major effect of personal selling on sale performance in the study are. The

finding is in agreement with Nosa (2014) who reported that providing immediate feedback,

developing customer relationship, and improving customer confidence as the main effect of

personal selling on sales performance in the study area.

4.3.4 Effect of Personal Selling on sales performance of Consumer Goods Companies in

Makurdi, Benue State, Nigeria.

The study revealed that there is significant relationship between personal selling and sales

performance of Consumer Goods Companies in Makurdi, Benue State, Nigeria. Regression was

used to test the hypothesis at 5% level of significance and the p-value (0.000) was lower than the

significance level. This can be statistically given as P-value 0.000 < a = 0.05. This finding is in

agreement with Andras and Srinivasan (2003) who established a significant relationship between

personal selling and sales performance. Kotler and Armstrong (2009) also emphasized the

importance of personal selling on the sales performance of corporate firms.

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 CHAPTER FIVE

SUMMARY, CONCLUSION, AND RECOMMENDATION

This section presents the summary of findings, conclusion, recommendations, limitations and

suggestion for further studies.

5.1 Summary

The study examined the effect of promotion strategy on sales performance of Consumer Goods

Companies in Makurdi, Benue State, Nigeria. The study revealed the following findings:

i. Sales Promotion has a significant effect on the sales performance of Consumer Goods

Companies in Makurdi, Benue State, Nigeria (r=.584, p=.000, t=7.113).

ii. Advertising has a significant effect on the sales performance of Consumer Goods

Companies in Makurdi, Benue State, Nigeria (r=.600, p=.000, t=4.200).

iii. Publicity has a significant effect on the sales performance of Consumer Goods

Companies in Makurdi, Benue State, Nigeria (r=.799, p=.000, t=3.509).

iv. Personal Selling has a significant effect on the sales performance of Consumer Goods

Companies in Makurdi, Benue State, Nigeria (r=.526, p=.000, t=3.312).

5.2 Conclusion

The study focused on effect of promotion strategy on sales performance in Consumer Goods

Companies in Makurdi, Benue State, Nigeria. The study was able to establish that sales

promotion, advertising, publicity, and personal selling have significant effect on sales

performance of Consumer Goods Companies in Makurdi, Benue State, Nigeria. Thus, the study

56
concludes that Promotion strategy has a significant effect on sales performance of Consumer

Goods Companies in Makurdi, Benue State, Nigeria.

5.3 Recommendations

Based on the finding, the study hereby makes the following recommendations:

i. Consumers of Dangote cement PLC in Makurdi, Benue State, Nigeria should carry

out more sales within the metropolis so as to improve their sales performance.

ii. Consumers of Dangote cement PLC in Makurdi, Benue State, Nigeria needs to create

more awareness of their products using effective and efficient medium of advertising.

iii. Consumers of Dangote cement PLC in Makurdi, Benue State, Nigeria needs to create

more publicity so as to improve its brand image.

iv. Consumers of Dangote cement PLC in Makurdi, Benue State, Nigeria needs to adopt

personal selling as a way of acquiring marketing information thus improving their

sales performance.

57
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 APPENDIX I
Faculty of Management Sciences,

Department of Marketing,

University of Maiduguri.

Dear Respondent,

I am an undergraduate student in the department of marketing, University of Maiduguri. I am

undertaking a research work as part of the requirement for the fulfillment of Bachelor of Science
(B. Sc.) degree in Marketing on the topic “Effect of promotional stratefies on sales performance
of consumer goods company in Makurdi, Benue State, Nigeria. (A case study of Makurdi
Metropolis).”

Therefore, I am hereby requesting your maximum cooperation to supply me with relevant

information as it affects your business and I promise you that every information given shall be
treated with utmost confidentiality and for this research purpose only.

Thank you.

Yours faithfully,

Iorhemen Promise Usha

Tel. No. 07025721708

(Researcher)

61
INSTRUCTIONS: Please indicate by ticking (√) in the space provided as appropriate. Please do

not circle more than one space where you are given options to choose from.

PART A

1. Sex: Male ( ) Female ( ).

2. Age: 18-25 years ( ), 26-33 years ( ), 34-41 years ( ), 42 years and above ( ).

3. Level of Education: Non-formal Education ( ), Primary Education ( ), Secondary

Education ( ), Tertiary Education ( ).

4. Length in service: Less than 1 year ( ), 1 – 3 years ( ), 4 – 7 years ( ), more than 8

years ( ).

PART B

Promotion Strategy and Sales Performance

SA = Strongly Agree, A = Agree,

D = Disagree, SD = Strongly Disagree

S/N ITEM SA A D SD
A Sales Promotion
1 Persuade buyers to make purchase
2 Increase sales volumes
3 Encouraging customers loyalty
4 Improve the effectiveness of advertisement and personal selling
5 Effective steps in combating competition
6 Encouraging market penetration
B Advertising
7 Creating brand awareness
8 Aid in fighting competition
9 Enhance the launch of new product
10 Increase the demand for product
11 Improves customers loyalty
C Publicity

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12 Create or increase interest in a product
13 Defend product that have suffered from negative perception
14 Reposition a product
15 Aid in launching a product
16 Influencing specific target group
D Personal Selling
17 Persuading prospect
18 Managing the sales cycle
19 Developing customer relationship
20 Provide immediate feedback
21 Improving customer confidence
E Sales Performance
22 There is increase in market share by higher percentage as a
result of advertisement
23 The number of customers have increased as a result of publicity
24 The business have expanded to many locations because of
promotion of the company’s products and services
25 The profit level of the business have increased due to regular
adverts
26 There is increase in sales growth of the business as a result of
advertisement techniques used by the company
27 Customers are satisfied with the company’s products and
services due to the company’s promotional techniques

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 APPENDIX II
Regression

Variables Entered/Removeda
Model Variables Variables Method
Entered Removed
1 Sale Enter
promotion,
Advertising,
Publicity,
Personal
selling

a. Dependent Variable: Sale Performance

b. All requested variables entered

Model Summary
Model R R Square Adjusted R Std. Error of the
Square Estimate
1 .984a .967 .963 12.186
a. Predictors: (Constant), Sale promotion, Advertising, Publicity,
Personal selling

ANOVAa

Model Sum of df Mean Square F Sig.

Squares
Regression 33.935 4 8.484 24.648 .000b
Residual 1.144 33 .035
Total 35.079 37
a. Dependent variable: Sale Performance
b. Predictors: (Constant), Sale promotion, Advertising, Publicity, Personal selling

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 coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients coefficients
B Std. Error Beta
(Constant) 11.013 .060 .211 .834
sale promotion .545 .077 .584 7.113 .000
Advertising .496 .118 .600 4.200 .000
Publicity .648 .099 .799 3.509 .001
Personal selling .410 .124 .526 3.312 .002
a. Dependent Variable: Sale performance

Reliability Statistics
Cronbach’s
Alpha
Cronbach’s Based on Standard
Alpha items N of items
.802 .791 21

65