Kebeto Proposal1

THE EFFECT OF PROMOTIONAL MIX STRATEGIES ON SALES
PERFORMANCE
WITH EMPHASIS TO SHEGER BREAD FACTORY IN ADDIS ABABA
CITY
Kabeto Bulo Dinsa
A Thesis Submitted to the Faculty of Business and Economics presented in

Partial Fulfillment of the Requirement for the Degree of Master of Business
Administration
Office of Graduate studies
SHEGER COLLEGE
ADVISOR: Mengistu (ASST PROFESSOR)
Addis Ababa, Ethiopia

August, 2023
ACKNOWLEDGEMENT
First and foremost, I want to thank the Almighty Allah for giving me the patience,
fortitude, and wisdom to finish this work.
Then, I would want to convey my heartfelt appreciation to Mengistu (ASST PROFESSOR), my

advisor,for his unwavering professional advice and support throughout my job. I appreciate his
assistance in personal problems as well as his useful advice on my career. To me, he was
much more than an academic advisor.
Last but not least, I would want to express my gratitude to all of my friends for their
unconditional support during my studies.
I owe a huge debt of appreciation to my parents (particularly my father and mother) for
their consistent support and encouragement throughout my years of study from elementary
to higher education, as well as during the process of researching and writing my thesis. I
would not have been able to fulfill my ambition without their help, and I am grateful for
their constant support.
i
DECLARATION
I hereby declare that this Master thesis entitled “The Effect of Promotional Mix Strategies on
Sales Performance with Emphasis to Sheger Bread Factory in Addis Ababa City” is my
original work. That is, it has not been submitted for the award of any academic degree, diploma
or certificate in any other universities. All sources of materials that are used for this thesis have
been duly acknowledged through citation
_________________ ___________________ _____________

Name Signature Date
ii
CERTIFICATION
This is to certify that the thesis paper prepared by Kabeto Bulo entitled with “The Effect of
Promotional Mix Strategies on Sales Performance with Emphasis to Sheger Bread Factory
in Addis Ababa City” which is submitted in partial fulfillments of the requirements for the
degree of Masters of Business Administration (MBA) complies with the regulation of the
university and meet the accepted standard with respect to originality and quality . Therefore, this
thesis paper has been submitted with my confirmation as advisor to the candidate.
________________________ ___________________ _______________
Advisor Signature Date
iii
Table of Contents
ACKNOWLEDGEMENT..................................................................................................................................i
DECLARATION..............................................................................................................................................ii
CERTIFICATION...........................................................................................................................................iii
LIST OF TABLES...........................................................................................................................................vii
LIST OF FIGURE..........................................................................................................................................viii
ABSTRACT...................................................................................................................................................ix
CHAPTER ONE..............................................................................................................................................1
INTRODUCTION...........................................................................................................................................1
1.1 Back ground of the study...................................................................................................................1
1.1.1 Background of the organization..................................................................................................3
1.2 Statement of the problem.................................................................................................................3
1.3 Research Questions...........................................................................................................................4
1.4 Objectives of the Study......................................................................................................................5
1.4.1 General Objective.......................................................................................................................5
1.4.2 Specific Objectives......................................................................................................................5
1.5 Significance of the study....................................................................................................................5
1.6Scope..................................................................................................................................................5
1.7 Limitations of the study.....................................................................................................................6
1.7 Operational Definition of terms.........................................................................................................6
1.8 Organization of the study..................................................................................................................7
CHAPTER TWO.............................................................................................................................................8
REVIEW OF LITERATURE..............................................................................................................................8
2.1. Theoretical Review...........................................................................................................................8
2.1.1Promotion Mix Strategies............................................................................................................8
2.1.2Advertising...................................................................................................................................8
2.1.3Sales Promotion...........................................................................................................................9
2.1.4Public Relation.............................................................................................................................9
2.1.5 Personal Selling.........................................................................................................................10
2.1.6 Direct Marketing.......................................................................................................................11
2.2 Factors influencing promotion mix..................................................................................................11
2.3Empirical Review on Marketing Communication Foundation...........................................................13
iv
2.3.1 AIDA Theory..............................................................................................................................13
2.3.2 Hierarchy of Effects Theory.......................................................................................................14
2.4 Conceptual frame work...................................................................................................................15
CHAPTER THREE........................................................................................................................................16
RESEARCH METHODOLOGY.......................................................................................................................16
3.1 Research Approach..........................................................................................................................16
3.2Research Design...............................................................................................................................16
3.3 Sampling Design..............................................................................................................................17
3.3.1 Target population.....................................................................................................................17
3.4. Data source.....................................................................................................................................19
3.5 Method of data collection...............................................................................................................19
3.7 Model description............................................................................................................................20
3.8 Data Quality Assurance(Validity and Reliability)..............................................................................20
3.7 Ethical Consideration.......................................................................................................................20
CHAPTER FOUR..........................................................................................................................................22
Data Presentation, Analysis and Interpretation.........................................................................................22
4.1. Demographic profile of respondents..............................................................................................22
4.2 Promotion practices of Sheger Bread sales performance................................................................24
4.2.1 Employees perception on sheger bread sales performance promotion practice.....................25
4.3 The role of promotion mix on sales performance practice..............................................................26
4.3.1 The role of promotion mix on sales performance of sheger bread...........................................28
4.4 Preferable promotion mix for shager bread sales performance......................................................32
4.4.1 Preferable promotion mix of Sheger bread from Employee perspective..................................33
4.5 Challenges of promotion practices of Sheger bread........................................................................34
4.4.1. Challenges of promotion mix practice of SHEGER BREAD).......................................................35
CHAPTER FIVE............................................................................................................................................37
CONCLUSION AND RECOMMENDATIONS..................................................................................................37
5.1 Summary of the Major Findings.......................................................................................................37
5.2 Conclusion.......................................................................................................................................38
5.3. Recommendation...........................................................................................................................39
REFERENCE................................................................................................................................................40
Appendex..................................................................................................................................................42
v
Annex I: Questionnaire..........................................................................................................................42
vi
LIST OF TABLES
Table 3-1 Population Distributions................................................................................................18

Table 3-2 Sample Size Selection...................................................................................................18
Table 3-3 the response value for independent and dependent variables........................................19
Table 4.2 Descriptive statics for attitude of sheger bread employees about promotion practice of
shager bread’s sales performance (Source: Computation from survey data (2023)).....................24
vii
LIST OF FIGURE
Figure 2.1 Conceptual Framework Source: Adopted From (Farshad Maghanti, 2012)................15
viii
ABSTRACT
The goal of this study is to ascertain how Sheger bread factory in Addis Ababa business is
impacted by promotional mix strategies. The study's target demographic consists of the
customers and employees of the city of Addis Abeba'sSheger bread making business. A total of
120 respondents received standard 5-point Likert scale surveys. The sample members were
selected through the use of convenience sampling. The study's goals were to evaluate the
promotion strategies used by the bread industry in Addis Abeba city, to pinpoint the promotion
mix strategies that are most effective at influencing potential sales, to gauge the importance of
these strategies in the bread factory in Addis Abeba city, and to pinpoint the main difficulties
that these strategies face.
Data from workers and customers ofSheger bread factory in Addis Ababa city were gathered
using both quantitative and qualitative research methods. To do this, a questionnaire survey was
done using the most significant promotion mix components that different academics had found in
the literature. Questionnaires were evaluated using descriptive analysis in order to meet the
study's goals.
Advertising has received good marks from both the employee and customer respondents as a
result of the other promotion mix components' ability to influence consumers. In order to reach
the desired outcome, the management of Sheger Bread Factory in coordination with the Business
Development Sub-process should pay close attention to the promotion mix methods and
practices.
Keyword:Advertising, Sales Promotion, Personal Selling, Public Relations and Publicity, Direct
Marketing
ix
CHAPTER ONE
INTRODUCTION
1.1 Back ground of the study
An organization is attempted to directly reach its publics through promotion. This is
accomplished through the five components of the promotion mix, which are direct marketing,
public relations, personal selling, sales promotion, and advertising. Pressures to manage the
financial services' marketing more effectively are increasing due to the financial sector's
expanding importance. The financial services sector is still expanding in terms of turnover and
profits despite their focus sessions, and as a result, it has a significant impact on all other areas of
the economy. As a result, there is currently rising interest in the application of marketing
strategies and tools in the financial services industry (Meidan, 1996). In spite of major changes
on the market to financial institutions, there are indications that industries have not yet
successfully embraced the marketing philosophy or achieved levels of itsimplementation
consistent with satisfied customers.
The focus on promotional efforts and development of marketing strategies has remained a
challenge to many firms in Kenya (Straughan, 2000). Since services cannot be separated from
the person performing or selling them, it is the responsibility of both large and small
organizations to adopt appropriate promotional strategies in order to attract and retain customers
(Nicolaud, 1989). Additionally, many factories have been facing mature domestic markets with
limited future growth potential, which as a result, has led to expansion of their services abroad.
However, in the dynamic business environment, industrial services have been forced to develop
effective promotional strategies in order to survive in the competitive business environment
hence achieve growth in all aspects of the organizations (Quantana, 2003).
It will be increasingly evident that a successful marketer must start with the customer.
Marketing opportunities are based on identification of customer wants and needs, understanding
of how customers make buying decisions, how they use the goods and services they buy, and
their level of commitment to current brands (Anderson and Vince, 2004:85). Marketing
1
managers (marketers) must think about the methods of winning, retaining, in general, satisfying
customers from various ways which will lead to organizational success. To do so, the elements
of marketing mix (product, price, promotion and place) serve as the most crucial tools for
meeting the company’s objective together with satisfying customers through effective utilization
of them. These variables are controllable variables by marketers. In addition, marketing
managers can use them to attract and retain customers since they can be reshaped by a given
marketing managers. From the organizations point of view each customer need has a counter part
in the marketing mix elements. Therefore, in order to be successful or a leading organization
should be able to apply promotion mix strategies.
Promotions encompasses the five forms of promotional mix-advertising, personal selling, sales
promotion, publicity and public relations, which are available to marketing managers who will
trying to influence the behavior and attitudes of existing and potential customers towards the
marketer’s company product and Brand. The elements, in addition to attracting a new customer,
can also be used to maintain customers and satisfy them on the purchase decision that they have
made (Palmer, 2000:414).
The above-mentioned forms of promotion are interdependent. This means the success of the
promotion is dependent up on the success of each form of promotion. Advertising will not
succeed unless good personnel selling and sales promotion support it. Marketers must work hard
to communicate openly and honestly with consumers and resellers. Consumers base their
expectations on information they receive from marketers, friends and any other sources. If the
marketer exaggerates the product performance through its promotional tools, consumer
expectations will not be met, and dissatisfaction will result. This suggests that marketers should
make product claims that faithfully represent the product’s performance so that buyers are
satisfied. Finally, promotion goes beyond afore-mentioned promotional tools. The product
design, its price, the shape, colours of its package and the stores that sell it. Thus, although the
promotion mix is the company’s primary communication activity, the entire marketing mix-
promotion and product, price, and place must be coordinated for greatest impact (Harker,
2009:pp.36).
2
1.1.1 Background of the organization
Founded on February 18, 2020 G.C., ShegerBread is a privately held factory. The Sheger bakery
was constructed by MIDROC Ethiopia, a company owned by the successful nearby flour
industry and by the billionaire Sheikh Mohammed Hussien Ali Amoudi of Ethiopia. The Bread
was built on a 41,000 square meter plot of land awarded by the AkakiKalitsub city
administration after receiving an investment authorization from the city of Addis Ababa in the
early 2020s. It is registered under the KIO-A/ID/HO270 registration number and has a capital of
ETB 900 million (US$26 million).Shortly after it was founded, it began making high-quality
flour and a variety of bread under the name "shegerbread"; today, its products are easily
accessible in all of the sub city’s markets. It is situated in the most practical area of Addis
Ababa.
Sheger Bread currently employs 357 regular workers, 50 janitors, 47 chauffeurs, 23 food vans,
each of which can hold 24,000 loaves of bread, and there are no seasonal workers and actively
contributing to the factory's success. It's also one of the few action-oriented businesses that built
and opened these two massive factories in such a short period of time.
In a short time after its establishment, it started producing high quality flour and a variety of
bread with a common brand "shegerbread"; its products are widely available in every market
around the sub city. It is located in the most convenient place Addis Ababa city
1.2 Statement of the problem

Globalization and technological innovation have intensified competitiveness among factories. As
a result of a huge number of bread factories selling essentially the same goods and services, the
bread industry has become fragmented, making it simpler for consumers to switch from one
brand to another.
In this cutthroat industry, marketing, and particularly promotional tools and plans, are crucial for
business success.A study carried out by Kiptugen (2003) looked at the strategic marketing responses
of manufacturing companies to a changing competitive business environment established that
proactive rather than reactive promotional mix strategies are the core drive of any competitive
organization operating in the dynamic marketing environment.
To survive in the competitive marketing environment, both small and large organizations need to
adopt promotional mix strategies in order to attract and retain customer hence long term relationships
and growth in terms of productivity (Reid et al, 2005). Increased revenue, increased client-base and
3
customer loyalty are measures of growth of any organization in the competitive market (Marquardt,
1994).
This study is to investigate the impact of promotional mix on sales performance with emphasis
on Sheger bread factory in Addis Ababa City. The study aims to identify the real problem and
make extensive and feasible investigation and analysis to assess the root causes of the problem
and get the problem solved. The bread factory did not undertake research to solve this problem
and did not collect feedback from their customers to get better and sustainable product demand
using effective and various promotional mixes and its impacts on sales performance. The study
will help to fill the gap related to the factory products and its level of customer satisfaction and
sales performance, and help managers to identify problem situations before they get out of
control with regard to the promotional activities practiced in the factories. Therefore, carrying
out this study at this time was highly pertinent. Therefore, the purpose of this study was to
investigate the promotion strategy used by ShegerBread and how it affects the spending patterns
of current and potential clients.
1.3 Research Questions

The focus of this research is to get the responses for the questions such as;
1. What are various promotional activities used by sheger bread factories?
2. What are the impacts of sales Promotion on sales performance of sheger bread factory in Addis
Ababa city?
3. What are the effects of Personal selling on sales performance of sheger bread factory Addis
Ababa?
4. What kind of Public relation activities undertaken and its impacts on sales performance of sheger
bread factory in Addis Ababa?
5. What are the major challenges of promotion mix practices of ShegerBread?
4
1.4 Objectives of the Study
1.4.1 General Objective

• The general objective of the study will be to assess the effect of the impacts of
promotional mixes on sales performance of sheger bread factory in Addis Ababa city.
1.4.2 Specific Objectives

The specific objective of this research were;-
• To identify various promotional activities used by the factories.
• To examine the impacts of sales promotion on sales performance of sheger bread factory
in Addis Ababa city.
• To examine the effects of personal selling on sales performance of sheger bread factory
• To investigate the impact of public relation on sales performance of sheger bread factory
1.5 Significance of the study
The significance of this study is to provide a solid reference point for many marketing managers
to defend allocations made to promotional activities. The study will help managers to identify
problem situations before they get out of control with regard to the promotional activities
practiced in the factories. The study will also contribute to academia by providing a good
premise for future research and adding to existing literature on promotion mix. Furthermore, the
researcher will expect to acquire knowledge about the way of conducting research with
identifying problems, and will contribute further explanations for studies on the subject
matter.Therefore, the goal of this research is to examine the promotion strategy used by Sheger
Bread factory. The research's conclusions will be useful to policymakers, as well as to all parties
involved in factories and the manufacturing sector as a whole. Additionally, this study will
provide information for researchers who wish to conduct further research in this field.
1.6Scope
The scope of this research is to investigate the impact of promotional mix on sales performance
with emphasis on Sheger bread factory in Addis Ababa City. The study aims to identify the real
5
problem and make extensive and feasible investigation and analysis to assess the root causes of
the problem and get the problem solved. The study is delimited to Addis Ababa city, particularly
to the Sheger bread manufacturing industry in Addis Ababa city, namely ShegerBread that
appears in AkakiKalitysub city.
1.7 Limitations of the study

In doing this investigation, various aspects were shown to be constraints. The responses of the
respondents who made up the sample study are largely responsible for the study's conclusion. As
a result, the study's findings might not be viewed as fully representative of the general public.
Furthermore, philosophically, the study only addresses one component of the marketing mix,
namely the promotion. It would have been preferable if it addressed all aspects of the marketing
mix, including product, pricing, and vene.
1.7 Operational Definition of terms

Promotion: is any marketing activity whose function is to inform or persuade actual or potential
customers about the merits of given product or service for the purpose of inducing a consumer
either to start purchasing or to continue purchasing the firm’s product or service (Bamigboye,
2001) Promotion strategy: is the direct way in which an organization communicates the product
or service to its target audiences (Brassington&Pettitt, 2000).
Promotion mix:is a set of components that interact and integrated together to achieve the
institution promotional objectives in the context of the prevailing marketing philosophy. The
components include advertising, sales promotion, personal selling, public relation and direct
marketing (Kotler&keller, 2006).
Advertising:Is defined as any non-personal communication means of ideas or products by using

mass communications media such as television, newspapers, magazines, cinema, radio etc. and is
implemented through a specific sponsor, for a fee paid to influence consumer behavior (Kotler.
&Keller, 2006; Mualla, 2007).
Sales promotion: is defined as all marketing actions focusing on eliciting an immediate

response from the target market by offering value incentives to members of the distribution
channel and/or the final consumer (Belch &Belch, 2007).
6
Personal Selling: is defined as a verbal communication and face-to-face interaction with one or
more of the potential buyers in order to provide the product or service, or to answer questions, or
to respond to requests or others (McCarthy &Perrault, 2004).
Public Relations:Interested in building a good relations between the organization and its
audience, and achieving satisfaction and mutual understanding, either internally or externally,
through the implementation of policies and programs based on the principle of social
responsibility, and employing media to build a good image of the organization. They also include
all activities carried out by the organization in order to enhance or improve its image in the
community such as supporting and participating positively in social, environmental, health, and
public issues (Lovelock &Wirtz, 2004).
Direct Marketing:Direct marketing consists of direct communications with carefully targeted

individual customers to obtain an immediate response and cultivate lasting customer
relationships (Kotler&Armstrong, 2005).
1.8 Organization of the study

This research will have five chapters’ .The first Chapter will deals with the problem and its
approach. It looks at the background of the study, problem statement, objectives of the study; it also
briefly looks at the research questions, significance, scope and limitations of the study. Chapter two
looks at the literature review. Literature review will be based on the research questions used in the
study. The conceptual framework for the study will also outline. Chapter 3 will be on the
methodology. It explains the research design. It also gives details about the population, sampling
procedures used in the study. It further explains the research instrument, methods of data collection,
data analysis. The analysis & interpretation of the data will be presented in the fourth chapter .
While the last chapter, chapter five conclude the results obtained from the research & provides
appropriate summary, conclusion and recommendation.
7
CHAPTER TWO
REVIEW OF LITERATURE
This chapter reviews theoretical, empirical and conceptual framework literatures from different
sources. The first section deals with theoretical literature review about promotional mix strategy.
The second section reviews empirical evidence about the subject matter and also conceptual
framework were presented.
2.1. Theoretical Review
2.1.1Promotion Mix Strategies

Promotion strategy, according to Brassington and Pettitt (2000), is how a company directly promotes
the product or service to its target audiences. Promotion is employed in a variety of methods within
the manufacturing sector (Meidan, 1996). Promotional tools have been divided into five broad
categories by Brassington and Pettitt (2000): advertising, sales promotion, public relations, personnel
selling, and direct marketing.
According to Brassington and Pettitt (2000), promotion strategy is the direct way in which an
organization communicates the product or service to its target audiences. Within the manufacturing
industry, promotion is used in many different ways (Meidan, 1996). Brassington and Pettitt (2000)
has categorized the promotional tools into five main elements; Advertising, Sales promotion, Public
relations, Personnel selling, and Direct Marketing.
2.1.2Advertising
Advertising strategy, according to Brassington and Pettit (2000), is any form of paid non-personal
communication that is conveyed through multiple mass media to target audiences in order to market
and promote a good, service, or idea. Advertising stands out from other promotional techniques
because it is impersonal and uses for-profit media platforms to reach huge audiences. According to
Meidan (1996), a healthcare services company can employ its advertising for both short- and long-
term goals. A laboratory services organization interested in promoting its brand name and its
differentiated services would adopt a brand advertising policy. Healthcare businesses looking to
forge a long-term partnership should build up their name by using institutional advertising.
8
Brand advertising closely resembles institutional advertising in its approach. Its main goals are to
spread knowledge of the laboratory services organization and to promote the range of services it
provides. Because healthcare businesses provide services to large populations of individuals, brand
advertising challenges include determining who to target and how to do so (Pettit, 2000). Institutional
advertising targets the entire population, whereas brand advertising for specific products must
demonstrate how the customer will profit from the service. Additionally, each particular brand
advertising campaign needs to reflect the image that the laboratory services organizations have
developed through their institutional advertising in terms of tone and presentation (Mortimer, 2001).
2.1.3Sales Promotion
Sales promotion, according to Brassington and Pettit (2000), is a tactical marketing strategy that
primarily uses short-term incentives to add value to the product or service in order to meet
specific sales or marketing goals. Meidan (1996) adds that it has two unique characteristics. First
off, it offers a "bargain chance" because many sales promotion tools have an attention-getting
characteristic that communicates an offer that, despite appealing to a wide variety of buyers,
tends to lose a lot of customers over time who are brand loyal. Second, excessive and
irresponsible use of sales promotions may make clients uneasy and make them worry if the
services are trustworthy or appropriately priced.
Meidan (1996) asserts, however, that advertising and sales promotion with services seem to work
best together. The main goals of sales promotion in the service industry are to grow market share in
certain market categories, draw in new clients, and reduce the cost of customer acquisition by
avoiding direct price competition with rival serviceproviders.
2.1.4Public Relation
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 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.
9
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.
2.1.5 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 10 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- purchase satisfaction, and in building profitable long-
term buyer-seller relationship built on trust and understanding. Verhallenet al (1997) states that the
increased competion within the fast changing environment of healthcare services has led healthcare
organizations to develop and maintain comprehensive relationship with their customers.
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) state that personal selling can be performed either
face to face or through technological aids such as the internet
According to Julian and Ramaseshan (1994) the relationship between the salesperson and customer is
perceived as being of great importance for the marketing of healthcare organizations. Hence, the
sales force within the healthcare services industry needs not only to be trained in the art of selling but
also to be aware of all the services available and be able to clearly explain what each services offers.
Since customers’ needs and motivation are likely to be complex, and their ability to assess alternative
courses of action without professional assistance is likely to be limited, it is of great significance for
the sales force engages and co-operates toward the customer, trying to find a solution to the
customer’s problem, rather than only persuading him to purchase the products or services (Meidan,
1996).
10
2.1.6 Direct Marketing
According to Brassington& Pettit (2000) direct marketing is an interactive system of marketing,
using one or more advertising media to achieve measurable response anywhere, forming a basis for
creating and further developing an on-going direct relationship between an organization and its
customers, to be able to create and sustain quality relationship with sometimes hundreds or even
thousands of individual customers, an organization needs to have as much information as possible
about each one, and needs to be able to access, manipulate and analyze that information, thus, the
database is crucial to the process of building the relationship.
Lee (2000) states that the fast advances in technology over the past 30 years have reshaped how
consumers today interact with their financial institutions.
The healthcare sector has extended its face to face selling towards direct marketing of products and
services in the form of phone, mail or computer transactions. Moles (2000) claim that as computer
literacy and the availability of computers increase and the costs decrease. Through the internet,
laboratory services organizations can identify their customer interests. Furthermore, the Internet
technology also makes it possible to follow individual customer usage. With the information
gathered in an integrated database it is possible to read the customers’ needs and satisfy them. This
knowledge can be used for different kinds of direct marketing (Lee, 2000).
2.2 Factors influencing promotion mix

Designing an appropriate promotion mix is called promotional strategy. There are many factors
which affect promotion mix.
Nature of the Product
Promotion mix will vary according to the nature of the product. Consumer goods require mass
advertisement. But industrial goods require personal selling, advertising, displays etc. Complex
and technical products like computer need personal selling. Non-technical products require
advertising as promotional device. In case where there is no brand differentiation personal selling
should be the method of promotion. Where there is brand differentiation advertising should be
emphasized.
Nature of the Market
11
For industrial market, advertising plays an informative role, but for consumer market it plays as
informative as well as persuasive role. The promotion strategy varies with the target groups
depending on age, sex, education, income, religion etc. 21
Stages in the Product Life Cycle
The marketing objectives and strategies are different at each stage of the product in its life cycle.
During the introductory stage intensive advertising and personal selling are required for effecting
product awareness. During growth stage advertising should be extended to maximize the market
share. During maturity stage persuasive advertising and sales promotion techniques are
beneficial. But at the declining stage advertisement and sales promotion are reduced to the
minimum.
Market Penetration
A product having good market penetration is well-known to the buyers. In that situation,
middlemen are motivated to spend more an advertising.
Market Size
It there is limited number of buyers, direct selling is appropriate. But if the market size is large
the promotional tool is mainly advertising.
Characteristics of Buyers
Experienced buyers of industrial product need personal selling. The experience of buyers, the
time available for purchase, influence of friends, retailers etc. are the factors affecting promotion
mix.
Distribution Strategy
If the products are directly sold by the manufacturer personal selling is the tool of promotion. In
this case advertising will become only a supporting tool. Personal selling and advertising is
required for market penetration. If the product passes through a longer channel more importance
should be given to advertising and less importance to personal selling.
Pricing Strategy
Pricing affects promotion strategy. If the brand is priced higher than the competitor’s price,
personal selling is used. If the price is comparatively low only little promotion is needed. If the
middlemen are allowed higher profit margin, sales promotion at dealer level is important.
Cost of Promotion
12
The cost of the media of advertising and sales promotion tools should also be considered while
deciding the promotional mix.
Availability of Funds
If the funds are sufficient, the firm can spend more for advertising and sales promotion. But
small firms with limited resources can depend on personal selling.
2.3Empirical Review on Marketing Communication Foundation
Different scholars have said much about the relationship between promotion mix strategies and
sales promotion. Various theories have been suggested by different authors in relation to
marketing communication. Some of the theories include; AIDA theory, hierarchy of effects
theory, and relationship marketing theory.
2.3.1 AIDA Theory

The AIDA model produces a detailed illustration about the entire procedure of how advertising
effects consumer behaviour and the purchase decisions. It is an acronym, which consists of the
factors of attention, interest, desire and action, all of them relevant to the relationship between
consumer behaviour and advertising. AIDA model is initiatory and simplest (Aaker and
Joachimsthaler, 2000). It explains how personal selling works and shows a set of stair-step stages
which describe the process leading a potential customer to purchase.
The first element, that is attention, describes the stage in which the brand manages to gain the
attention of the consumer through the advertisement that he/she has come into contact with. It could
be either positive or negative attention or sometimes, in a worse case, no attention at all. From the
advertiser's standpoint, only the first case is a favourable one where the consumer pays positive
attention to the advertisement and eventually the brand (Kotler, 2007) and organizations creating
attention, interest, desire, and attraction of their products in the market using appropriate channels of
communication to reach the mass market thus stimulating demand of existing and new products in
the market. Therefore, adoption of the theory by firms promotes tremendous growth of the
companies in terms of client base and revenue (Aaker and Joachimsthaler, 2000).
13
They all have three general stages in common, even though the amount or names of sub-stages might
differ: cognitive stage (what the receiver knows or perceives), affective stage (receiver's feelings or
affective level), behavioural stage (consumer's action) (Aaker and Joachimsthaler, 2000).
2.3.2 Hierarchy of Effects Theory

The Hierarchy of Effects Model was created in 1961 by Lavidge and Gary. This marketing
communication model, suggests that there are six steps from viewing a product advertisement
(advert) to product purchase. The job of the advertiser is to encourage the customer to go through the
six steps and purchase the product which include; awareness, knowledge, liking, preference and
purchase.
Customers see many adverts each day but will only remember the brand of a tiny fraction of
products. Knowledge of the customer begins when the product is advertised using various
communication channels which include; 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
(Belch and Belch, 2003).
Liking of the product involves customer willingness to buy a product after information search in the
market concerning the product on offer. Preference involves consumers being loyal to a particular
brand compared to competitor brands. At this stage advertisers will want the consumer 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 consumer can differentiate it from competitor
brands. Conviction to a product is a stage of creating the customer's desire to purchase the product in
the market. Advertisers may encourage conviction by allowing consumers to test or sample the
product (Buzzell, 2004). 14
14
2.4 Conceptual frame work
The conceptual framework of this study is developed from the literatures review and empirical reviews
that were presented earlier in this chapter.
Independent variable
Advertising
Sales promotion
H Dependent variable
H Sales
performanceofSheger
Personal selling bread factory
Public relation
Direct marketing
Promotion mix practices
Figure 1.1Conceptual Framework Source: Adopted From (FarshadMaghanti, 2012)
15
CHAPTER THREE
RESEARCH METHODOLOGY
This section outlines the methodologies that were employed in this study, including the selection
of specific research designs, data type and source, research approach, data gathering method and
tools, sampling and sampling techniques, and data analysis techniques, along with the necessary
justifications for each methodology.
3.1 Research Approach
The term "research approach" describes the methodology or approach used to carry out the
research. It primarily entails the choice of research topics, the adoption of a conceptual
framework, and the choice of an acceptable research method, such as primary research,
secondary research, etc. Depending on the topic under study, a research strategy can change
greatly.
Research methodologies can be classified as either qualitative or quantitative, according to

Saunders (2003).
Whether a study should be qualitative or quantitative depends on the type of data being explored
and the topic being addressed (Holme& Solvang, 1997).
3.2Research Design
A research design, according to R. Kothari (2004), is the organization of parameters for data
collection and analysis in a way that tries to combine relevance to the study purpose with
economy in technique. In actuality, research design serves as the conceptual framework for
research and serves as the manual for data collection, measurement, and analysis. This study uses
both a descriptive and an explanatory research design. By collecting information from chosen
respondents using standardized questionnaires, descriptive research seeks to describe the
situation. The research is explanatory because it includes both dependent and independent
variables.
16
Both quantitative and qualitative research is used in this study. In descriptive studies and
experiment-based cause-and-effect analyses, numbers and statistics are used to understand
frequencies, averages, and correlations.
3.3 Sampling Design
3.3.1 Target population

The entire group in which a researcher is interested is referred to as the target population.
Zikmund (2003) defined population as the identifiable whole group of research subjects that the
researcher was interested in. There are over 20 marketing department staff, 120 wholesaler and
retailers in the factories, according to Shager bread human resource data.
So, to keep the accuracy of the data overall sample size will be 120. 20 marketing department
staff will be selected using purposive sampling technique and it is census , The researcher will
categorise the wholesaler into 4 sub-city Kality sub-city, 28 wholesaler Akakikalitysubcity 46
wholesaler Bole sub-city 30 wholesaler and Laftosubcity 16 , by stratified sampling in
proportionally 60 wholesalers will be selected using cluster sampling techniques to give equal
and independent chance of being selected from all clustered wholesaler and 40 retailers will be
selected using snow ball sampling method.
17
Table 3-1 Population Distributions
Region Total no of Sample Total

Wholesaler
Kality sub city 28 14 14
Akaki Sub city 46 23 23
bole sub city 30 15 13
Lafto sub city 16 8 8
Total 120 60 60
Table 3-2 Sample Size Selection
Description Population Sample size

Marketing department staff 20 20
Wholesaler 120 60
Retailers Unknown 40
Total 140 120
18
3.4. Data source
Both primary and secondary data sources were used in the investigation. Structured
questionnaires were used to gather primary data. The sheger bread factory website,
the HR-Transaction sub-process, annual reports, journals, academic research
papers, and internet search engines were used to acquire secondary data.
3.5 Method of data collection

As a means of gathering data, questionnaires were employed. They are advantageous because
they gather data that cannot be seen immediately, are less expensive, take less time to use as
instruments of data gathering, and are helpful in acquiring objective data. As a result,
standardized questionnaires were used to gather information from the aforementioned
respondents. On a five point Likert scale, respondents were asked to rate how they perceived the
topic of the study. Each respondent's demographic information was also gathered.
Table 3-3 the response value for independent and dependent variables
Response scale Scale rating
Strongly 5
Agree 4
Neutral 3
Disagree 2
Strongly disagree 1
19
3.7 Model description
The practice of utilizing statistical techniques to describe or summarize a set of data is known as
descriptive analysis, sometimes referred to as descriptive analytics or descriptive statistics.
Descriptive analysis, one of the main types of data analysis, is well-liked for its capacity to
produce understandable insights from interpreted data. The results were summarized and
presented using descriptive analysis techniques such frequencies (using tables, percentages, and
graphs), percentages, means, and standard deviation. On top of that, Kendall's the coefficient of
concordance, commonly referred to as Kendall's coefficient of concordance, is a non-parametric
statistic that was used to calculate Kendall's W. It is a normalization of the Friedman test statistic
and can be used to gauge rater agreement. The range of Kendall's W is 0 (no agreement) to 1
(complete agreement).
3.8 Data Quality Assurance(Validity and Reliability)
It is believed that the respondents' understanding of the instrument items will improve the validity
and reliability of the tool. For responders from a bread factory in Addis Ababa, pilot testing will be
done to determine the reliability of the questionnaire. All corporate marketing department employees
will be given the questionnaires as part of the pilot testing procedure. The test-retest approach will be
used to ascertain reliability. The research will seek the opinions of authorities in the field of study, in
particular the researcher's advisor, to establish the validity of the research instrument.
The test-retest reliability approach is commonly used to evaluate reliability, which is also known as
measurement consistency (Lewis et al., 2009). This made it easier to revise and modify the research
instrument as needed.
3.7 Ethical Consideration

Before starting to distribute the questionnaires, the willingness and consent of all the research
participants included in this study will be obtained. They have all been duly told about the goal
of the research. The data gathered from the respondents was provided as it was with no changes
or modifications. Additionally, the sources of the literature used in the study are duly cited in the
thesis' reference list.
The ethical considerations that will be taken to protect participant’s rights in detail asking permission
officially, explaining the purpose of the study to the target respondents, collecting data for analysis only
20
from the voluntary participants, undertaking the data collection process without interrupting and ensuring
confidentiality will be considered.
21
CHAPTER FOUR
Data Presentation, Analysis and Interpretation

In this chapter, the results obtained Sheger bread factory employees are presented and analyzed.
First demographic characteristics of the respondents are presented .Such information includes
demographic profile and general information of respondents. Then the results of descriptive
analyses were presented first, followed by the results of Kendall W. Coefficient of concordance
were analyzed.
4.1. Demographic profile of respondents

The questionnaires were distributed in person and also by email for the employees. A total of
120 questionnaires were distributed and all are received back. The data was analyzed by SPSS
20. The samples of this study have been classified according to five demographic backgrounds
information collected during the questionnaire survey. The purpose of the demographic analysis
in this research is to describe the characteristics of the sample such as the number of
respondents’ proportion of males and females in the sample, range of age, academic
qualification, their work position of and service years of respondents of Sheger bread employees.
The demographic composition of the respondents is summarized below.
22
Table 4.1 Demographic information of Employee respondents
Parameters N (%)
Gender Male 65(54.2%)
Female 55(45.8%)
Total 120(100%)
Age 18-24 years 8(6.7%)
25-35 years 56(46.6%)
46-45 years 38(31.7%)
>46 years 18(15.0%)
Total 120(100%)
Educational background Diploma 30(25.0%)
Bachelor’s degree 89(74.1%)
Master’s degree 1(0.9%)
Total 120(100%)
Experience in factories 0-4 years 75(62.5%)
5-9 years 43(35.8%)
10-19 years 2(1.7%)
20-30 years 0(0.0%)
Total 120(100%)
Current position Marketing department 20(16.7%)
Wholesaler 60(50.0%)
Retailers 40(33.3%)
Total 220(100%)
In this study, 55(45.8%) and 65(54.2%) of respondents were female and male respectively.
Among study participants, 56(46.6%) of them were between 25-35years of age with the mean
age of 27(±SD12). Regarding the educational background of respondents, majority, 89(74.1%)
of them were bachelor’s degree holders.
Regarding working experience in manufacturing sector, 75(62.5%) of them had 0-4 years,
43(35.8%) of them had 5-9 years and 2(1.7%) of them had 10-19 years.
23
4.2 Promotion practices of Sheger Bread sales performance
This section of questionnaire tested the perceptions of the respondents about promotion practice
of sheger bread sales performance. The respondents were asked to rate the level of their
agreement in each statements. Table below indicates the mean and standard deviation of both
groups of respondents.
Table 4.2 Descriptive statics for attitude of sheger bread employees about promotion practice of
shager bread’s sales performance (Source: Computation from survey data (2023))
Promotion practice of Sheger bread sales performance Mean Std. Dev.

Sheger bread considers the objective of its promotion in its 3.95 0.715
promotional content
Sheger bread considers its audience in designing its promotion. 3.86 0.669
Sheger bread considers appropriate promotional channels to 4.30 0.602
reach its intended audience such as Television, Radio,
Billboards, Brochures, Posters, Leaflets and Magazines to
promote its services
Sheger bread plans its budget requirement for its promotional 4.07 0.699
campaign
Sheger bread considers the compatibility of its promotional 3.47 0.715
message to the selected promotional audience
Sheger bread appraises its promotional content compatibility 3.48 0.797
with the different demographic group such as religion,
geography, gender, language, and so on
Sheger bread conducts promotional campaign through using one 4.35 0.557
or more of the following promotional mix elements to inform or
persuade or remind its customers (Television, Radio,
Billboards, Brochures, Posters, Leaflets and Magazines).
Sheger bread evaluates the effectiveness of promotion to 3.60 0.737
achieve its intended objectives to inform , persuade or remind
its customers
Sheger bread takes corrective action on its promotion based on 3.56 0.663
24
the evaluation results on the effectiveness of its promotion to
achieve its intended objectives
Overall level of employees perception about Promotion 3.85
practices of Sheger bread
Guide line for range of mean analysis. The scale used to measure the mean value was the Likert
scale1-5. The result of the calculation of the mean values of each group samples were then
interpreted based on the opinion of Moidunny, K. (2009) where there are five levels of the range
of the mean value are very low, low, medium, high and very high. M
Mean score Interpretation
1.00 – 1.80 Very low
1.81 -2.60 Low
2.61 – 3.20 Medium
3.21 - 4.20 High
4.21 - 5.00 Very high
4.2.1 Employees perception on sheger bread sales performance promotion practice

The means for the Sheger bread promotion practice dimensions ranged between 3.47 and
4.35(1=strongly disagree and 5= strongly agree) and the standard deviation for Sheger bread
promotion practice perception dimension ranged between 0.557 and 0.797 which show some
level of variance. The statement which respondents agree with most was “sheger bread conducts
promotional campaign through using one or more of the following promotional mix elements to
inform or persuade or remind its customers(Television, Radio, Billboards ,Brochures, Posters,
Leaflets and Magazines” (mean=4.35 and standard deviation= 0.557). On the other hand, the
statement indicating the least level of agreement was “sheger bread considers the compatibility
of its promotional message to the selected promotional audience” (mean= 3.47 and standard
deviation= 0.715). The overall mean for the response of sheger bread’s promotion practice is
3.85 indicating that the majority of respondents towards high level of agreement with the
statement under study.
25
4.3 The role of promotion mix on sales performance practice
This section of questionnaire tested the perceptions of the respondents about the role of
promotion mix on sales performance practice of Sheger bread. The respondents were asked to
rate the level of their agreement in each statements. Table below indicates the mean and standard
deviation of both groups of respondents
Table 4.3 Descriptive statics for attitude of sheger bread employees about the role of promotion
mix practices (Source: Computation from survey data (2023))
The Role of promotional mix practices of Mean Std. Dev.
Sheger bread on sales performance
A. Role of Advertisement
Advertisement plays role to increase the 4.24 0.601

liquidity status of Sheger bread
selling capacity of Sheger bread
personal selling provision capacity of Sheger
bread
Advertisement plays role to improve 3.07 1.045
discount rate of Sheger bread on sales
performane

profitability of Sheger bread through sales
performance
Total Mean 3.93

B. Role of Sales promotion
Sales promotion plays role to increase the 4.05 0.905
26
price cut provision capacity of Sheger bread
interest rate of Sheger bread on deposits
personal selling of Sheger bread through sell
performance of mixed promotion
Total Mean 3.85
C. Role of Public relation
Public relation plays role to increase the 3.88 1.070
Public relation plays role to increase the 4.10 0.814
Public relation plays role to increase the price 3.94 0.838
cut capacity of Sheger bread
Direct Marketing plays role to discount 4.16 0.759
provision capacity of Sheger bread
Total mean 3.92
D. Role of Personal Selling on sales
performance
Personal selling plays role to increase the 3.90 0.998
discount provision capacity of Sheger bread
Total mean 3.71
E Role of direct marketing on sales
performance
Direct marketing plays role to increase the 3.97 0.891
27
discount provision capacity of Sheger bread
Direct marketing plays role to increase 3.51 0.989
price cut of Sheger bread on sales
performance
profitability of Sheger bread through sales
performance
Total mean 3.87
Overall level of employees perception about 3.86
the role of promotion mix elements on sales
performance practice of Sheger bread
4.3.1 The role of promotion mix on sales performance of sheger bread

The above table indicates the respondents’ perception of the role of promotional mix elements on
sales performance and their mean and standard deviation. When we see the details of the
results, we can see that the highest score on increasing the liquidity status of Sheger bread
is advertisement (mean=4.24 and standard deviation=0.601). The second highest score on
increasing liquidity is sales promotion (mean= 4.05 and standard deviation = 0.905)
followed by direct marketing, personal selling and public relation. When we see the
promotion mix role on the increasing of selling capacities of the factories, the highest score is
observed from public relation (mean = 4.10 and standard deviation = 0.814). The second
highest score is observed from advertisement (mean=4.08 and standard deviation=
0.636).The third highest score in increasing the selling capacity of the factories is sales
promotion (mean= 3.97 and standard deviation =0.711) followed by direct marketing and
personal selling. On the other hand, the highest mean on increasing the discount provision
capacity of Sheger bread is scored by advertisement (mean= 3.93 and standard deviation=
0.777). The second highest result is scored by public relation (mean= 3.94standard
deviation = 0.838) followed by direct marketing, sales promotion and personal selling
28
respectively. The highest score in increasing profitability by personal selling on sales
performance is scored by public relation(mean =3.54 and standard deviation = 1.154). The
second highest score is observed from direct marketing (mean=3.51 and standard
deviation=0.989) followed by personal selling, sales promotion and advertisement respectively.
When we come to the role of promotion mix on profitability of Sheger bread the highest score is
observed from advertisement (mean= 4.31 and standard deviation= 0.639). The second highest
score is observed from sales promotion (mean = 4.10 and standard deviation= 0.814) followed
by public relation, direct marketing and personal selling. The total mean value of the role of
promotion on sales performance is 3.86 indicating that the majority of respondents towards high
level of agreement with the statement understudy.
Inferential analysis on sales performance

In this study, Kendall’s Wallis Coefficient of Concordance rank order analysis model was
used to determine the degree of association among several (k) sets of ranking of N objects or
individuals. It is represented by the symbol W. It is non-parametric measure of relationship.
Kendall’s W is used to determine the degree of agreement between raters when working with the
ranked data (ordinal level of measurement). Kendall's coefficient values can range from 0 to
1. The higher the value of Kendall's, the stronger the association, Kendall's coefficient
values can range from −1 to 1. A positive value indicates positive association. A negative value
indicates negative association, the higher the magnitude, the stronger the association.
Guideline for interpretation of Kappa (1960)
Poor agreement = Less than 0.20
Fair agreement = 0.21 to 0.40
Moderate agreement = 0.41 to 0.60
Good agreement = 0.61 to 0.80
Very good agreement = 0.81 to 1.00
No agreement = 0
Result of Kendall’s coefficient of Concordance (from employees response).Kendall Wallis

Coefficient Rank Order Analysis on Employee response N= 120
No. Role of promotion mix on sales Kendall’s Chi Degree of Asymp. Mean
29
performance Wa square freedom Sig
1 Advertisement role on sales 0.429 252.189 4 0.000 1st

performance
2 Sales promotion role on bread 0.349 205.284 4 0.000 2nd
sales performance
3 Personal selling role on sales 0.150 88.377 4 0.000 3rd
performance
4 Public relation role on sales .130 76.552 4 0.000 4th
performance
5 Direct marketing role on sales 0.114 67.032 4 0.000 5th
performance
Source: Computation from survey data (2023)
Role of advertisement on sales performance
The above table from the employee response shows that, the coefficient of concordance
among the respondents is W=0.43.This means there is a moderate level of agreement
among the observers when rating the role of advertisement on sales performance. In addition
to this, the chi square (252.189) is greater than the table value (9.488) at 0.05 level of
significance and degree of freedom =4. Regarding the hypothesis test, since the P< 0.05
(P=0.000) the null hypothesis is rejected and the alternative hypothesis is accepted.
H1: Advertisement has a significant role on sales performance is accepted
Role of sales promotion on sales performance
The above table further indicates that the result from the employee’s response has a coefficient
of concordance W=0.35. This means there is a fair agreement among the respondents on the role
of sales promotion. The chi square (205.284) is greater than the table value (9.488) at 0.05
significance level. The P-value (0.000) <0.05 and this leads to reject the null hypothesis.
H1: Sales promotion has a significant role on sales performance is accepted Role of personal
selling on sales performance
30
The coefficient of concordance for the role of personal selling on sales performance observed
from the employee respondents is W=0.15 which is very poor agreement among the
observers. This means the respondents rate this variable not in a same standard. The chi square
(88.377) is greater than the table value (9.488) at 0.05 significance level. Regarding the P-value
it is p (0.000) <0.05 so the null hypothesis is rejected.
H1: Personal selling has significant effect on sales performance is accepted
Public relation has the coefficient of concordance W=0.13 which shows poor agreement
among the employee respondents. It means, the higher the value, the more agreement among the
respondents. The chi square 76.552) is greater than the table value (9.488) at 0.05 significance
level. Regarding the P-value (P=0.000) <0.05 that leads to reject the null hypothesis.
Role of direct marketing on sales performance
The result from employee respondents indicates that direct marketing has a coefficient of
concordance W=0.1 which means the level of agreement is poor among the respondents. The
chi square (67.032) is greater than the table value (9.488). The P-value (P=0.000) is less
than0.05, therefore, the null hypothesis is rejected.
H1: Direct marketing has significant effect on sales performance is accepted
Generally the above table indicates the overall role of each promotion mix on sales performance
of Sheger bread in a rank. According to the result obtained from the Kendall’s Coefficient,
advertisement has high coefficient value followed by sales promotion. The third level
promotion mix is personal selling followed by public relation and direct marketing. This
indicates that even though all the promotion mix elements have role in sales performance
activities advertisement and sales promotion have a better role in all aspects of the above
measurements.
4.4 Preferable promotion mix for shager bread sales performance

One of the objectives of this study is to determine the preferable promotion mix element among
the five promotion mix elements. The result from the descriptive table is used to compare the
variables rank in being most preferable promotion mix elements.
31
Table 4.4 Descriptive statics for attitude of sheger bread employees about preferable promotion
mix practices on sales performance Source: Computation from survey data (2023)
Preferable promotion mix practices of Sheger bread Mean Std. Dev.
A. Advertisement
Advertisement is the most preferable promotional mix 4.24 0.668
to play informative role to impact on sales performance
in Sheger bread
Advertisement is the preferable promotional mix to 4.01 0.717
play Persuasive role to impact on sales performance
Advertisement is the preferable promotional mix to play 4.01 0.740
reminder role to impact on sales performance
Total Mean and standard deviation 4.09 3.67
B. Sales Promotion
Sales promotion is the preferable promotional mix to 3.84 0.728
play informative role to impact on sales performance
Sales promotion is the preferable promotional mix to 3.84 0.616
Sales promotion is the preferable promotional mix to play 3.86 0.708
Total Mean and standard deviation 3.85
C. Public Relation
Public relation is the preferable promotional mix to play 3.63 1.035
informative role to impact on sales performance
Public relation is the preferable promotional mix to 3.81 0.634
Public relation is the preferable promotional mix to 3.86 0.802
play reminder role to impact on sales performance
D. Personal Selling
32
Personal selling is the preferable promotional mix to play 3.48 1.056
informative role to impact sales performance

Persuasive role to impact on sales performance
E. Direct Marketing
Direct marketing is the preferable promotional mix to play 3.41 1.140
informative role to impact on sales performance
Persuasive role to impact on sales performance
Reminder role to impact on sales performance
Overall level of employees & customers perception 3.79
About Preferable promotion mix practices of Sheger bread.
4.4.1 Preferable promotion mix of Sheger bread from Employee perspective

The above table shows that amongst the promotion mix elements, Advertisement has the highest
score (mean=4.24 and standard deviation =0.668) which indicates that it is the most preferable
promotion mix to be informative. Regarding the preferable promotion mix in persuading
customers for sales performance again Advertisement has the highest score (mean=4.01 and
standard deviation=0.717). For reminding customers about sales performance, Advertisement is
the leading from the promotion mix elements (mean=4.01 and standard deviation=0.740).
4.5 Challenges of promotion practices of Sheger bread

It is known that there are many challenges or factors which affect the promotion practice of any
business. This section of the questionnaire tested the attitude and views of employees about the
33
challenges of Sheger bread’s promotion practice. A series of sixteen statements were presented
to respondents and respondents were asked to rate their level of agreement with each statement.
Table 4.5 Employee response on challenge of sheger bread promotion practice
Challenges of promotion mix practices of Sheger bread Mean Std. Dev.

Identifying the right Promotion practice 3.14 1.083
Targeting content for the audience is a challenge for 3.08 1.050

Sheger bread’s promotion
High operating cost / unavailability of budget for market 2.69 0.896
promotion is a Challenge for Sheger bread’s promotion
Language barrier to reach the target audience is a 2.97 1.196
challenge for Sheger dab’s promotion
Socio-cultural barrier (religion, gender) related barrier 3.06 0.981
in the promotional content
Legal and regulatory barrier is a challenge for Sheger 2.88 0.992
bread’s promotion
Unavailabili ty Professionals in promotion is a 2.87 1.055
challenge for SHEGER BREAD’s promotion
Unavailability of ideal promotional channel meant to the 3.19 1.049
target audience is a challenge for Sheger bread’s
promotion
Type of Product offered by Sheger bread is challenge for 2.59 0.882
promotion practice
Complexity of Product is a challenge for sheger bread’s 2.59 0.882
promotion practice
Use of Product is challenge for promotion practice for 2.99 1.092
Sheger bread
Purchase Quantity and Frequency of buying the product 2.90 0.871
is challenge for Sheger bread’s promotion practice
The type of market Sheger bread is targeting being 3.31 0.955
34
consumer market to play informative as well as
persuasive role is one of the challenge for Sheger
bread’s promotion practice
The number and location of customers greatly influence 3.64 0.891
the promotion mix
Size of Market(number of buyers) of Sheger bread‟s 3.29 0.993
product is one of the factors affecting its promotion
practice
Stage of Product Life Cycle offered by Sheger bread is a 3.15 0.953
challenge for Sheger bread’s Promotion practice.
4.4.1. Challenges of promotion mix practice of SHEGER BREAD)

The above table indicates the result from employee respondents on challenges of promotion mix
strategies of Sheger bread. The means for the challenges of promotion practice of Sheger bread
items dimensions ranged between 2.59 and 3.64(1= strongly disagree and 5= strongly agree)
and the standard deviation ranged between 0.871 and 1.196 which show some level of
variance. The challenges highly affecting the promotion practices of Sheger bread as per
the result from respondents were “The number and location of customers greatly influence
the promotion mix” (mean=3.64 and standard deviation=0.891), “The type of market Sheger
bread is targeting being consumer market to play informative as well as persuasive role is
one of the challenges for Sheger dabo’s promotion practice(mean=3.31 and standard
deviation =0.955), “Size of Market(number of buyers) of SHEGER BREAD’s product is
one of the factors affecting i ts promotion practice” (mean=3.29 and standard
deviation=0.993).
According to Moidunny, K (2009), the mean score from 3.21- 4.20 is high. Due to their
mean score is found within this range we can say that those challenges are affecting the
promotion practices of Sheger bread. On the other hand, the mean score of most of the
challenges of the promotion practices of Sheger bread falls between the ranges 2.61-3.20 which
is medium range. The result indicates that those challenges are affecting the promotion
practices of Sheger bread at a moderate level. The statement indicating the least level of
35
agreement was “Type of Product offered by Sheger bread is challenge for promotion
practice” (mean= 2.59 and standard deviation= 0.882). Since the mean value is between 1.81-
2.60 ranges which are low level, we may observe that it is the least challenge of all.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS

This chapter provides findings, conclusions and recommendations of the research undertaken in
the study. The conclusions are based on the research objectives of the study. The general
36
explanations of the findings were discussed and recommendations drawn from the conclusions of
the research.
5.1 Summary of the Major Findings

The main objective of this study was to identify the effectiveness promotion mix strategies on
sales performance of Sheger bread. In order to do the study, 120 employees’ respondents were
participated. Respondent groups were asked the effect of promotion mix strategies on sales
performance of Sheger bread in a five point Likert scale. The specific objects were to assess the
promotion practices of Sheger bread, to identify the most preferable promotion mix in its impact
on sales performance, to measure the role of promotional mix practices of Sheger bread on sales
performance, to identify the major challenges of promotional mix practices of Sheger bread.
Based on the research results obtained through quantitative data analyses the following major
findings are identified. Promotion practice of Sheger bread: with regard to this issue, the
perception of the employee and customer respondents shows that the promotion practice of
Sheger bread has in general a good result with an overall mean value of 3.85 and 3.98
respectively. The average value for both respondents is 3.91 indicating that it is above average.
Role of promotion mix on sales performance: the role of promotion mix is measured by
Kendall’s coefficient of concordance to measure the level of agreement among the observers.
Advertisement has a high coefficient of concordance which is=0.43 followed by sales promotion
with W=0.35. This result indicates that the level of agreement among the observers in choosing
advertisement and sales promotion have a higher role on increasing sales performance. The
preferable promotion mix: The result shows that among the promotion mix elements
advertisement has a high average mean value of 3.88 from both respondent groups. The mean
value for each respondent group is 4.09 and 3.67 for employee and customer respondents
respectively. The second best preferable is sales promotion with mean value of 3.84 followed by
personal selling, direct marketing and public relation. Challenge of promotion practice of Sheger
bread Although there are many challenges that the bank faces during implementing the
promotion mix elements, the respondents agreed most on the statement “The number and
location of customers greatly influence the promotion mix “with the mean value of 3.64. The
second most agreed challenge is the statement “The type of market Sheger bread is targeting
being consumer market to play informative as well as persuasive role is one of the challenge for
Sheger bread‟s promotion practice” with a mean value 3.31 followed by the statement “Size of
37
Market (number of buyers) of Sheger bread‟s product is one of the factors affecting its
promotion practice” with a mean value 3.29.
5.2 Conclusion
Promotion is the direct way in which an organization communicates the product or service to its
target audiences (Brassington, 2000). Within the service sector, promotion is used in many
different ways (Meidan, 1996). Brassington and Pettit (2000) has categorized the promotional
tools in to five main elements; advertising, sales promotion, public relations, personnel selling,
and direct marketing. The study aimed to determine the effect of promotional mix strategies on
sales performance of Sheger bread. Based on the above mentioned findings the following
conclusions are drawn: The result from the research findings indicates that the promotion
practice of Sheger bread in general is above average. This means the respondents agreed that
sheger bread‟s promotion practice is informative, persuasive and reminder to its customers. The
role of promotion mix elements has positive and significant effect on sales performance. Among
the promotion mix elements; advertisement has the highest result on attracting customers
followed by sales promotion. Regarding the most preferable promotion mix among the five mix
elements the finding from study indicates that advertisement is the preferred promotion mix
element followed by sales promotion. Even though there are so many challenges to implement
the promotion practice of Sheger bread, the most agreeable challenge is the statement “The
number and location of customers are the major challenge for Sheger bread to implement
promotion mix”.
5.3. Recommendation
From the above conclusions that are drawn from the research findings, the following
recommendations are given: The promotion practice of Sheger bread in general is above average
as per the result of respondents. Nowadays the competition among the bread manufacturing is
very high. In order to win the competition Sheger bread should adopt a successful promotion mix
strategies. The finding from the research indicates that Sheger bread should evaluate or appraise
the promotional contents compatibility with the selected promotional audiences and the
weakness on accessibility of promotional campaign using all the promotion mix tools. Although
the role or promotion mix on sales performance is satisfactory in general, some of the promotion
mix elements should be given high attention in order to achieve a better result. Sheger bread in
38
its promotional strategy plan should identify and evaluate which of the promotional tools are
more strong and weak to achieve the desired result. The result from the respondents indicates
that Advertisement is the most preferable promotion mix element. Since advertisement is a paid
and non -personal presentation and promotion of ideas, goods and services it is easier to address
the message to all its customers. Hence, the factory should effectively use this promotion tool. In
addition, the factory should work hard and give more attention to the other promotion tools and
use them effectively to achieve its goals. The factories (Sheger bread) promotion practice has a
lot of challenges. According to the data gathered from the respondents the major challenge that is
agreed most by the respondents the number and location of customers is very challenging to
manage the promotion practice effectively. So the factories or concerned body should evaluate
the accessibility, compatibility and manageability of the promotion practice.
REFERENCE
Ananda, S., & Murugarah, V. (2003). new marketing dimensions for financial services
industries. indian journal of marketing, 35,34-38.
Andualem UfoBaza1&K. Sambasiva Rao 1. (201). International Journal of Economics and

Finance, 9.
39
Belch, G. E., &Belch, M. A. (2007). Introduction to Advertising and Promotion: an Integrated
Marketing Communications Perspective.
Brassington, F., &Pettitt, S. (2000). Promotional Mix for Bank Marketing . International Journal
of Bank Marketing, 12, 3-14.
Christine, T. E., & Nigel, W. (2007). Financial Services Marketing . An International Guide to
Principles and Practice.
Chunawalla, S. (2016). Advertising,Sales and Promotion Management.6th Edition Mumbai:.
Churchill, A. (2007). Basic marketing research. 6th ed. Mason,Ohio:.
Cochran, W. (1963). Sampling Technique.2nd Edition.
Czinkota, M., &Radebaugh, L. (2004). International Business: Environments and operations 9th
ed.
Dawes, J.& Brown, R. (2000). Postmodern Marketing: Research issues for Retail Financial
Service. Qualitative Market Research. An International Journa, 3, 90-98.
Farshad Maghanti, K.C. (2012). Exploring the Relationship between Experiential Marketing and
Experiential Value in the SmartphoneIndustry. International Business Research, 5.
George, E., & Michael, A. (2003). Advertizing and promotion: An integrated marketing
Communication perspective.6th ed. The McGraw−Hill Companies.
Hair, F., Wolfinbarger, F., Ortinaw, J. & Bush, P. ( 2010). Essentials of marketing research. 2nd
ed.
K., M. (2009). The effectiveness of national professional qualification for educational leaders
(NPQEL) IV .
Kothari, R. (2004). Research methodology methods and techniques.2nd ed.
Kotler, P.and Armstrong, G. (2008). Principles of Marketing.
Martin. (2015). Why is Promotion Important for a Business?
Meidan, A. (1996). Marketing Financial Services.
Nwanko, F., Ewuim, N., &Asoya, N. P. (2013). Effects of Co-Operatives on the Savings
Behaviors of Members in Oyi Local Government Area. . African Research Review
(7(1)),, 29 -27.
Ray, S. and Suchetana B. (2006). Strategizing Advertisements in Services Sector, . Marketing

Mastermind, 3, 2329.
40
Sarin, A. (2007). Contemporary issues in services marketing. Indian Journal of Marketing, 37,
40-44.
Stephen.P., Aliyu.,U. F., &Ibrahim ., A. (2017). Impact of sales promotional strategies on

organizational performance in Nigeria. European Journal of Research and Reflection in
Management Sciences, 5, 31-41.
Udel, C. (1968). Successful Marketing Strategies in American Industries. Mimi: Wisconsin. .
Zikmund.W. (2003). In Zikmund.W., Business Research Methods.7th ed, USA . Thomson –

South Western.
41
Appendex
Annex I: Questionnaire
SHEGER COLLEGE
FACULTY OF BUSINESS AND ECONOMICS
DEPARTMENT OF BUSINESS ADMINISTRATION
MBA PROGRAM
QUESTIONNAIRE TO BE FILLED BY SELECTED EMPLOYEES IN SHEGER BREAD
Dear respondents,
My name is KABETO BULO DINSA, graduating candidate in MBA program at SHEGER

COLLEGE. I would like to express my sincere appreciation for your generous time and honest
prompt responses.
Objective: This questionnaire is designed to collect information about the effect of promotional
mix strategies on sales performance of sheger bread.
General Instructions
 There is no need of writing your name.
 In all cases where answer options are available please tick (√) in the appropriate box.
 For questions that demand your opinion, please try to honestly describe as per the
questions on the space provided.
 If the space provided is not enough for your opinions, please use the back side of the
paper by writing the question number.
42
S/N Questions/ Variables Alternative response Skip to
1 Age 1. 18 - 25 years
2. 26 – 40 years
3. 41 – 55 years
4. 55 – 60 years
2 Sex 1. Male
2. Female
3 Highest formal education attended 1. High school graduate:
2. Technical school graduate:
3. College diploma:
4. Bachelor’s Degree:
5. Master’s Degree:
6. PhD
4 Years of service in the organization 1. 0-4
2. 5-9
3. 10-19
4. 20-30
5. above 30 years
5 Your current position( Job grade ) _________________________
6 Years of service on the current job _________________________
43
SECTION II: the promotion practices of Sheger bread
Please indicate the extent of your agreement or disagreement with each statement ticking
(√) in the box corresponding to a number from 1 to 5 scale where, 1 = strongly disagree 2
= Disagree 3 = Neutral 4 = Agree 5 = strongly agree
No. The promotion practices of Sheger bread. 1 2 3 4 5

1 Sheger bread considers the objective of its
promotion in its promotional content
2 Sheger bread considers its audience in

designing its promotion
3 Sheger bread considers appropriate

promotional channels to reach its intended
audience such as Television, Radio,
Billboards, Brochures, Posters, Leaflets and
Magazines to promote its services.
4 Sheger bread plans its budget requirement

for its promotional campaign
5 Sheger bread considers the compatibility of

its promotional message to the selected
promotional audience
6 Sheger bread appraises its promotional

content compatibility with the different
demographic group
7 Sheger bread conducts promotional

campaign through using one or more of
the following promotional mix elements to
inform or persuade or remind its customers
44
(Television, Radio, Billboards, Brochures,
Posters, Leaflets and Magazines)
8 Sheger bread evaluates the effectiveness of

promotion to achieve its intended objectives
of to inform or persuade or remind its
customers
9 Sheger bread takes corrective action on

its promotion based on the evaluation
results on the effectiveness of its
promotion to achieve its intended
objectives
45
SECTION III: The role of promotional mix practice of Sheger bread on sales performance
Please indicate the extent of your agreement or disagreement with each statement ticking (√) in the box
corresponding to a number from 1 to 5 scale where, 1 = strongly disagree 2 = Disagree 3 = Neutral 4 =
Agree 5 = strongly agree
The role of promotional mix practices of Sheger bread on 1 2 3 4 5

sales performance
A Role of Advertisement
1 Advertisement plays role to increase the liquidity status of
Sheger bread
2 Advertisement plays role to increase the selling capacity of
Sheger bread
3 Advertisement plays role to price cut provision capacity of
Sheger bread
4 Advertisement plays role to improve discount rate of Sheger
bread on sales performance
5 Advertisement Plays role to increase the profitability of
Sheger bread through sales performance
B Role of Sales promotion

1 Sales promotion plays role to increase the liquidity status of
Sheger bread
2 Sales promotion plays role to increase the selling capacity
of Sheger Bread
3 Sales promotion plays role to increase the personal selling
4 Sales promotion plays role to improve the discount rate of
Sheger bread on sales performance
5 Sales promotion Plays role to increase the profitability of
C Role of Public relation
1 Public relation plays role to increase the liquidity status of
sheger bread
2 Public relation plays role to increase the selling capacity of
sheger bread
3 Public relation plays role to increase the personal selling
4 Public relation plays role to improve discount rate of sheger
bread on sales performance
5 Public relation Plays role to increase the profitability of
sheger bread through sales performance
46
D Role of Personal selling
1 Personal selling plays role to increase the liquidity status of

Sheger bread
2 Personal selling plays role to increase the selling capacity of
Sheger bread
3 Personal selling plays role to increase the personal selling
4 Personal selling plays role to improve discount rate of
Sheger
5 Personal selling plays role to increase the profitability of
47

Kebeto Proposal1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Kebeto Proposal1

Uploaded by

Copyright:

Available Formats

THE EFFECT OF PROMOTIONAL MIX STRATEGIES ON SALES

Kabeto Bulo Dinsa

A Thesis Submitted to the Faculty of Business and Economics presented in

Office of Graduate studies

ADVISOR: Mengistu (ASST PROFESSOR)

Addis Ababa, Ethiopia

Then, I would want to convey my heartfelt appreciation to Mengistu (ASST PROFESSOR), my

_________________ ___________________ _____________

________________________ ___________________ _______________

Advisor Signature Date

Table 3-1 Population Distributions................................................................................................18

1.2 Statement of the problem

1.3 Research Questions

1. What are various promotional activities used by sheger bread factories?

5. What are the major challenges of promotion mix practices of ShegerBread?

1.4.1 General Objective

1.4.2 Specific Objectives

1.5 Significance of the study

1.7 Limitations of the study

1.7 Operational Definition of terms

Advertising:Is defined as any non-personal communication means of ideas or products by using

Sales promotion: is defined as all marketing actions focusing on eliciting an immediate

Direct Marketing:Direct marketing consists of direct communications with carefully targeted

1.8 Organization of the study

2.1. Theoretical Review

2.1.1Promotion Mix Strategies

2.1.5 Personal Selling

2.2 Factors influencing promotion mix

2.3Empirical Review on Marketing Communication Foundation

2.3.1 AIDA Theory

2.3.2 Hierarchy of Effects Theory

Promotion mix practices

Figure 1.1Conceptual Framework Source: Adopted From (FarshadMaghanti, 2012)

3.1 Research Approach

Research methodologies can be classified as either qualitative or quantitative, according to

3.3 Sampling Design

3.3.1 Target population

Region Total no of Sample Total

Kality sub city 28 14 14

Akaki Sub city 46 23 23

bole sub city 30 15 13

Lafto sub city 16 8 8

Table 3-2 Sample Size Selection

Description Population Sample size

3.5 Method of data collection

Response scale Scale rating

3.8 Data Quality Assurance(Validity and Reliability)

3.7 Ethical Consideration

Data Presentation, Analysis and Interpretation

4.1. Demographic profile of respondents

Promotion practice of Sheger bread sales performance Mean Std. Dev.

4.2.1 Employees perception on sheger bread sales performance promotion practice

Advertisement plays role to increase the 4.24 0.601

Advertisement plays role to increase the 4.31 0.639

Total Mean 3.93

4.3.1 The role of promotion mix on sales performance of sheger bread

Inferential analysis on sales performance

Result of Kendall’s coefficient of Concordance (from employees response).Kendall Wallis

1 Advertisement role on sales 0.429 252.189 4 0.000 1st

Role of advertisement on sales performance

H1: Advertisement has a significant role on sales performance is accepted

Role of sales promotion on sales performance

H1: Personal selling has significant effect on sales performance is accepted

_______ _ _____

______________ _ _______