EFFECTS OF SALES PROMOTION ON ORGANISATIONAL PERFORMANCE ( A

CASE STUDY OF ADRON HOMES AND PROPERTIES LIMITED)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The increase of competition in the business market has made marketers all over the world to
consider a variety of sales promotion incentives in order to stand out among their competitors
(Jean et al, 2015). The need for sales promotion came as a result of intense of competition
that requires sellers to get customers’ attention in order to increase their sales, growth and
survival in business (Encyclopaedia of Small Business, 2007). It is key to understand that
sales promotion is conducted within the organisation and it has effect on organization
performance.

Sales promotion has been identified as a marketing tools adopted to attract the attention of
consumer and build their loyalty about a product. It’s a means used by producers to
communicate with intended target audience. Sales promotion is unique in that it offers an
extra incentive for action (Palmer, 2004). Sales promotion refers to those promotion activities
other than advertising, publicity and personal selling that stimulate interest, trial or purchase
by final customers or others in the channel (Pillai, 2007). Sales promotion is seen as an
enterprise marketing tools adopted by firms to facilitate sales, usage or trail of a product or
services to create awareness. It provide extra-incentive for the target audience to make
purchases or support one brand over another thereby serving as a competitive weapon.
Hence, it increases market share (Luk and Yip, 2008).

Sales promotion is an initiative undertaken by organizations to promote sales, usage or trial

of a product or service (i.e initiations that are not covered by other elements of the marketing
communication/promotional mix). It is an important component of an organization’s overall
marketing strategy along with advertising, public relations, and personal selling (Schiffman
and Kanuk, 2004). Sale promotion acts as a competitive weapon by providing an extra
incentive for the target audience to purchase or support one brand over another. It is
particularly effective in spurring product trial and unplanned purchases (Aderemi, 2003). As
presented by Achumba (2002), sales promotion refers to marketing activities, other than
personal selling, advertising and publicity that stimulate consumer purchasing and dealer
effectiveness, such as displays, shows and expositions, demonstration etc. Sales promotion
has been defined as a direct inducement that offers an extra value or incentive for the product
to the sales force, distributors or the ultimate consumer with the primary objective of creating
an immediate sale (George, 1998). Elsewhere, Strang (2006) reviewed major trends in the
management of sales promotion in a sample of U.S. package goods companies. He
documented the shift of funds from advertising to sales promotion budgets. However, the
author did not explore specific promotions or specific success factors associated with
promotions. Analysing Nielsen data, Peckham (1998) observed thousands of individual
promotions. He concluded that sales promotions are most effective in stimulating sales during
the introductory and growth phases of the brand's life cycle. Peckham further asserted that
sales promotions frequently mortgaged the brand's future sales and he doubted the
profitability of many sales promotions.

Odunlami et al, (2011) in his study on effect of sales promotion on organizational

performance; concluded that effective implementation of sales promotion tools lead to
increase in sales volume and invariably higher profit. Walton, (2016) conducted research on
the impact of sales promotion on organizational performance concluded that 1 percent
increase in sales promotion activity was associated with 0.44 percent 2 increase in sales
turnover. However, when it comes to non-financial performance, the study found that sales
promotion did not significantly affect new product development. Finally, the relationship
between sales promotion and customer acquisition was positive and significant.

Schultz and Block (2014) stressed that the brand with sales promotion is more likely to
increase the consumers’ preferences and purchasing behavior than the brand without sales
promotion. Omotayo, (2011) sales promotion is among the very important tools marketers
use communicate with customers; the technique not only works to gain the attention of the
customer but also influence the customer to purchase the product through different
incentives. Researches on the impacts of sales promotion on organization performance have
been conducted in different countries and industries; findings have shown that there is
positive impact of sales promotion on organization performance.

Sales promotion is one of the four aspects of promotional mix which is an element of the four
marketing mix: product, price, promotion and distribution. It is normally considered as a tool
consisting of short term incentives to encourage the purchase or sale of a product or service
Examples of sales promotion are found everywhere e.g. In the aisle display in the local
supermarket that tempts impulse buyers with a wall of coke cartons, an executive who buys a
new Compaq laptop computer gets a free carrying case. Sales promotion includes a wide
variety of promotion tools designed to stimulate earlier or stronger market response (Kotler
2003).

The case study is Adron Homes and Properties Limited which was founded in the year 2012
in Lagos, Nigeria, by Dr. Aare Adetola Emmanuelking. Adron Homes and Properties Limited
has over 40 estates within nine years and is continuously expanding within the shores of the
African continent. The company has since grown to be a renowned multi-billionaire real
estate firm with many subsidiaries across the globe and is arguably one of the leading
employers of labour, not just in Nigeria, but in Africa. The purpose of the company is to help
people realize their aspirations for the pride of ownership, comfort, security and wealth
through the provision of excellent homes and the will to provide homes for all classes of
society with focus on the neglected populace in respect to government housing programmes.
Adron Homes and Properties Limited. Retrieved from [https://adronhomesproperties.com/].
February 1st, 2024.

Their core value is built on consistent quality services to clients and subscribers; develop
their talents and achieve high quality standard; make decisions and help grow the business;
and unity in purpose and sharing ideas to achieve a common goal. The company has over
4000 acres of land in its Estates cut across three developing Real Estate areas in the sub urban
areas, to be developed into an Estate with affordability status for low and medium income
earners.

The company majorly makes use of sales promotion techniques like; relief packages, they are
usually called “Adron Relief Package,” the package consists of unbeatable discounts and
exciting gifts, it brings the consumers an array of discounts on land purchases, allowing the
consumers to choose the one that suits them the best. There are different forms of relief
packages; for instance the fifty percent (50%) discount on land purchase is an excellent
option for those who want to take advantage of significant savings. The best part of this
package according to the company is that the consumer can spread the balance over
12months. The promo packages are mainly directed to the consumers, giving them a golden
opportunity to become landlords or invest in real estate at unbeatable prices.
The study seeks to find out the effects of these sales promotion tools on organizational
performance. The company sells its products through an independent sales force outside the
traditional retail environment. They have a vision to be the leading Pan-African real estate
developing company that will provide the highest number of decent, accessible, comfortable
and affordable houses while achieving global housing standard. They also have a mission to
increase their land bank, expand their client base by offering excellent services and affordable
hosuing products with a singular mission to exceed expectations. For these kind of plan to
achieved Adron Homes will be needing intense sales promotion techniques to ensure that the
products sell and more so to achieve its main goal which is “to become the leading Pan-
African real estate developing country”

The principal function of management is to make decision and without doubt marketing
decision seems to be the most difficult and therefore, its effect is felt throughout the business.
With growing needs supply, individuals and organization needs and inevitably bridge the gap
between the producers and the customers or users of the product, organizations equally need
to research into the growing needs of these groups. Also, since there is the greatest need for
the organization to maintain market share, there is the need to create awareness so as to
increase their level of sales and productivity. Due to this reason, there is the greatest need to
understand the impact of sales promotion in business organizations. Due to the increase
acceptance of sales promotion by firms as a very important element of the promotional mix
and its expenditure also being on the rise, it has become very important to examine whether
sales promotion is actually making any impact on the volume of sales

1.2 STATEMENT OF THE PROBLEM

Sales promotion is an initiative undertaken by organizations to promote and increase sales,

usage or trial of a product or services (Aderemi, 2003). Sales promotion refers to the
provision of incentives to customers or to the distribution channel to stimulate demand for a
product. It is an important component of an organizations overall marketing strategy along
with advertising, public relations and personal selling. Sales promotion acts as a competitive
weapon by providing an extra incentive for the target audience to purchase or support one
brand over the other. It is particularly effective in spurring product trials and unplanned
purchases (Aderemi, 2003).
Additionally, Organizational performance refers to how well an organization is doing and
how much of its daily tasks and set objectives it successfully completes. Measuring an
organization's performance involves comparing its actual outputs or results with the intended
ones. This comparison helps organizations determine if they're achieving what they set out to
do. Business owners, strategic partners, and managers typically conduct this performance
evaluation, and the process includes recognizing and implementing processes that can help
improve the company's performance.

On these notes; Adron Homes and Properties Limited which was founded in the year 2012 in
Lagos, Nigeria, by Dr. Aare Adetola Emmanuelking. Their role at Adron Homes is to secure
suitable houses for everyone, irrespective of social class, income level and all else. To
achieve their goals and objectives, Adron Homes employs the use of some sales promotion
tools like; promo packages, where discounts are given, free gifts and incentives, referral
programs and so on.

This study, therefore, is sought to determine if promotional activities have positive impact on
the organization (Adron Homes). Another excruciating hindrance of sales promotion is the
difficulty in measuring its direct contributions to organizational performance. Hence the
focus is to know the extent to which sales promotion can be used to stimulate organizational
performance and operations at Adron Homes.

1.3 RESEARCH QUESTIONS

The following are the research questions:

1. What are the sales promotional tools/strategies used by Adron Homes?

2. How does the implementation of sales promotion affect the organizational

performance at Adron Homes?

3. What are the factors that promote and impair the effectiveness of the sales promotion
strategies of Adron Homes?

4. How does Adron Homes assess the success of their sales promotion strategies?
1.4 PURPOSE OF THE STUDY

The general objective of this study is to determine if promotional activities have positive
impact on the organization (Adron Homes). Sales promotion has become an integral part of
marketing techniques among brands and it is essential to understand its impact on
organisational performance.

Specific objectives

1. To establish sales promotional tools/strategies used by Adron Homes.

2. To find out how sales promotion affect organisational performance at Adron Homes.

3. To find out the factors that promote or impair the effectiveness of sales promotion at
Adron Homes.

4. To find out how they assess the success of their sales promotion strategies.

The study will use a mixed – methods approach, including both qualitative and
quantitative data collection techniques. The participants will be the employees of Adron
Homes and Properties Limited from different departments. The data collection technique
will include surveys, and focus group discussions. The findings of this study will
contribute to the existing literature on the effects of sales promotion on organisational
performance.

The study will provide insights into the extent to which sales promotion is used stimulate
organizational performace and operations at Adron Homes. The study will also provide
insights into the different types of sales promotion techniques that are used by Adron
Homes, the perceived benefits and drawbacks of sales promotion, and the factors that
influence the use of sales promotion for effectiveness in the organization.
 1.5 SCOPE OF THE STUDY

The study will be carried out at Adron Homes branches in Ibadan, Oyo state, to study the
effects of sales promotion in relation to organizational performance. For the purpose of
this study, the organisation’s employees will asked to complete questionnaires and also be
part of a focus group discussion.

1.6 SIGNIFICANCE OF THE STUDY

Sales promotion has become an integral part of our daily lives, and so many
brands/businesses use it as their primary marketing channel. Studying the effects of sales
promotion on organisational performance can provide insights into how sales promotion
techniques can be used to build and maintain a better organisational performance. The
study will provide insights on the following:

1. Exploring the effect of sales promotion on organisational performance: Sales

promotion has changed the way brands market their products, and it is important to know
its impact on organisational performance. Studying the effects of sales promotion on
organisational performance can help identify both the positive and negative effects of
sales promotion on the same.

2. Identifying best practices for sales promotion use: Studying the effects of sales
promoion on organisational performance can help identify best practices for sales
promotion use. For example, the study can identify the types of sales promotion
techniques that are most effective for building and maintaining relationships with
consumers and the types of promotional tools that are likely to erode the organisation’s
profit margin.

Overall, studying the effects of sales promotion on organizational performance at Adron

Homes is significant because it can provide insights into how sales promotion can be used
to enhance or hinder a better organisational performance and identify best practices for
healthy sales promotion use.

1.7 POSSIBLE LIMITATIONS OF THE STUDY

1. Personal bias: Individuals might have biased views of personal issues that can affect or
cause inaccuracies in the research. This can lead to the researcher choosing only the data
that supports his hypothesis, causing the issue of confounding variables.

2. Limited access to information or Data/statistical limitations: There might be some

information that is inaccessible if the researcher fail to ask the questions or the sample
refuses to divulge such information. It is also often impossible to collect sufficient data or
gain access to certain data for research. This could lead to an incomplete conclusion to the
research study. This is a major issue in most research studies.

3. Research design limitations: Choosing an inappropriate research design can cause the
researcher to have inaccurate results. Focusing on the research design will help the
researcher narrow down and examine his research goals properly, enabling success.

4. Limited time: The amount of time stipulated to conclude this research study might not
be sufficient to get all of the information needed and execute the study successfully. This
limitation, however can be overcome by proper planning.

5. Sample Methods: The sampling methods the researcher choose can have a certain
effect on how his research study turns out. As part of his study is quantitative, if his
sample size is too small, statistical analysis cannot hold significance in connection with
the data set. Since the research sample focuses on Adron Homes, the results of the
findings cannot be generalized.

6. Absence of previous studies in the chosen field: Although the research topic has
similarities with prior research studies, it also has areas of newness. There could be
limitations in getting a literature review on the research topic.

7. Confidentiality; There can be some respondents who fear sharing out information for
fear of being reprimanded by their managers for giving out information that they may
have considered confidential. However, the researcher will assure the respondents of the
confidentiality of the information that they provided. The researcher will also obtain
permission from the management of Adron Homes to undertake the research in the
organisation.

1.8 OPERATIONAL DEFINITION OF TERMS

Sales Promotion
 Sales promotion consists of a diverse collection of incentive tools, mostly short term,
designed to stimulate quicker and or greater purchase of particular products or services by
consumers or the trade. (Philip Kotler, 2013).

Sales promotion at Adron Homes and Properties relates to understanding whether sales
promotional tools positively impact organizational performance by assessing their
effectiveness in driving sales, increasing brand awareness, and enhancing customer
loyalty. By analyzing the correlation between specific sales promotion activities (such as
discounts, promotions, or special offers) and key performance indicators (such as sales
revenue, market share, and customer satisfaction), Adron Homes can determine the extent
to which these tools contribute to overall organizational success.

Organisational Performance

It is the ability of an organisation to reach its goals and optimize results. Organizational
performance at Adron Homes and Properties pertains to assessing the company's overall
effectiveness and efficiency in achieving its strategic goals and objectives. This includes
evaluating various metrics such as sales revenue, market share, customer satisfaction,
employee productivity, and financial profitability.

Adron Homes and Properties Limited

This is a real estate company tasked with the role to secure suitable, affordable housing
for everyone, irrespective of their income level, social class and all else.

CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION
This chapter highlights the conceptual, theoretical and empirical framework on which the
study is based.

2.1 CONCEPTUAL REVIEW

Independent Variable Dependent Variable

SALES
PROMOTION
TOOLS

SALES
CONSUMER BUYING
PROMOTION
BEHAVIOR
STRATEGIES

SALES
PROMOTION
FACTORS

Source: Paul Peter, J. and Olson, J.C. (2009) Consumer Behavior and Marketing
Strategy 9th Edition.

Fig 2.1.1 Relationship between variables

In the context of understanding consumer buying behavior, this table outlines the relationship
between independent variables—specifically, sales promotion tools, sales promotion
strategies, and sales promotion factors—and the dependent variable, which is consumer
buying behavior.

Sales promotion tools encompass various methods and techniques used by companies to
stimulate consumer purchasing, such as discounts, coupons, free samples, and contests. These
tools are employed as part of broader sales promotion strategies, which are systematic plans
devised by

companies to promote their products or services and influence consumer behavior. Sales
promotion factors refer to the elements that influence the effectiveness of sales promotion
efforts, including the timing, frequency, duration, and presentation of promotional activities.
The dependent variable, consumer buying behavior, represents the actions and decisions
made by consumers when purchasing products or services. This includes their attitudes,
preferences, motivations, and purchase intentions. Consumer buying behavior is influenced
by a multitude of factors, including psychological, social, cultural, and situational variables.

In summary, the table illustrates how different aspects of sales promotion—specific tools,
strategies, and factors—affect consumer buying behavior. By examining the relationship
between these independent variables and the dependent variable, researchers and practitioners
can gain insights into the effectiveness of sales promotion initiatives in influencing consumer
purchasing decisions and ultimately driving business outcomes.

2.1.2 Concept of Sales Promotion

According to Brassington and Pettit (2015) sales promotion is tactical marketing techniques
with mostly short- term incentives, which are to add value to the product or service, in order
to achieve specific sales or marketing objectives. Furthermore, Meidan (2014) states that it
has two 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.

Meanwhile, the term “promotion” means different things to many people depending on the
context and discipline being used. That is, the concept is used ordinarily here to mean an
element of a “marketing mix”. In one sense, it denotes any technique designed to sell a
product (Ricky et al, 2015). To others, it refers to any attempt by a seller to influence a
buying decision (Blanchard et al, 2016). Like promotion, the marketing concept of “sales
promotion’ has also been numerously conceived by many scholars. Equally, Blanchard et al
2015) also opines that sales promotion as “the array of short-term promotional techniques
that marketers use to stimulate an immediate purchase”. Likewise, sales promotion can be
described as materials that act as a direct inducement, offering added value, or incentive for
the product, to resellers’ sales persons or consumers. The International Chamber of
Commerce (ICC) defines sales promotion as "Marketing devices and techniques which are
used to make goods and services more attractive by providing some additional benefit,
whether in cash or in kind, or the expectation of such a benefit " (Boddewyn & Leardi, 2014,
p. 365). Similarly, Smith (2016) opined that there are three main categories of Sales
Promotion: Firstly, Consumer promotions (premiums, gifts, competitions and prizes, e.g. on
the back of breakfast cereal boxes). Secondly Trade promotions (point-of-sale materials, free
pens and special terms, diaries, competition prizes, etc). Thirdly, Sales force promotions
including incentive and motivation schemes.

Sales promotions are comparatively easy to apply, and are likely to have abrupt and
considerable effect on the volume of sales (Hanssens, Parsons and Schultz 2014).

2.1.3 Types of Sales Promotion

Previous studies on the effectiveness of consumer sales promotion have focused on monetary
sales promotions (Dhar and Hoch, 2015; Hoch, 2016). However, in practice, both monetary
and non-monetary sales promotions are used widely (Tellis, 2015). There are important
differences between these two types: monetary promotions (e.g. shelf-price discounts,
coupons, rebates and price packs) tend to provide fairly immediate rewards to the consumer
and they are transactional in character; non-monetary promotions (e.g. sweepstakes, free gifts
and loyalty programmes) tend to involve delayed rewards and are more relationship-based.

In assessing the effectiveness of sales promotions it is necessary look at the various types of
sales promotion.In using sales promotion, a company must fulfil the objectives of the
organization. Sales promotion objectives are derived from broader promotion objectives,
which are derived from more basic marketing objectives developed for the product. The
specific objectives set for sales promotion will vary with the type of target market. [For
consumers, objectives include encouraging purchase of larger-size units, building trial among
non-users and attracting switches away from competitors‟ brands. For retailers objectives
include inducing retailers to carry new items and higher levels of inventory, encouraging off-
season buying, encouraging, stocking of related items, offsetting competitive promotions,
building brand loyalty of retailers and gaining entry into new retail outlets. For sales force,
objectives include encouraging support of a new product or model, encouraging more
prospecting and stimulating off-season sales.

2.1.3 Consumer Promotion

The main consumer promotion tools include samples, coupons, cash refund offers, price
packs, premiums, prizes, patronage rewards, free trials, product warranties, tie-ins, and point
of purchase displays and demonstrations. Consumer promotion is a category of sales
promotion which also includes winning contests, different price packs, and sweep stakes.
Sales promotion is projected to increase the sales of final ultimate consumers of the product
(Kotler and Armstrong, 2017). Some kinds of sales promotion are based on some sort of
benefit whereas some are very communicative in type. (Kotler. 2015: Tellis 2016).

2.1.3.1 Coupon

In most cases, one method of sales promotion featuring a certificate that entitles the bearer to
stated savings off a product’s regular price is called in promotional mix as “couponing”. It is
argued that, this may be utilised to motivate customers to try new product, to attract
customers away from competitors, or to induce current customers to buy more of a product
(Ricky et al., 2015). This implies that, with the utilisation of promotional mix’s effort of
couponing, product and service offering firms tends to be more recognised in the market. In
essence, the sales promotional technique of “couponing” ensures development of brand
loyalty. In that, as a technique, it ingeniously attracts customers from brand competitors. By
so doing it induces current customers to buy more. This invariably develops customers’
recognition of, preference for and insistence on buying the product with same brand name.

2.1.3.2 Cash Refund Offers or Rebates

These are like coupons except that the price reduction occurs after the purchase rather than at
the retail shop. The consumer sends a specified “proof of purchase” to the manufacturer, who
in turn „refunds‟ part of the purchase price by mail. Cash refunds have been used for major
products such as automobiles as well as for packaged goods.

2.1.3.3 Price Packs

These are offers to consumers of savings off the regular price of a product, flagged on the
label or package. They may take the form or a reduced-price pack which is single packages
sold at a reduced price (such as two for the price of one) or a banded pack, which is two
related products banded together (such as a tooth brush and tooth paste). Price packs are very
effective in stimulating short term sales, even more than coupons.

2.1.3.4 Premium

This is a method of sales promotion in which some items are offered free or at a bargain price
to customers in return for buying a specified product. This technique therefore offers a
product for free or at a lower price to induce the customers to buy. Mostly, the effective
premiums are closely tied to the product or brand being sold (Blanchard et al., 2015). In some
instances, free samples of the product are offered free to customers in order to enable them
try the product. They may be given out at local retail outlets (Ricky et al, 2015). It must
however be noted that, “premiums” may not work as well as originally hoped, since some
customers may switch to a competitor’s brand to get the premiums that company is offering”.
These are also merchandise offered at a relatively low cost or free as an incentive to purchase
a particular[r product. Sometimes the package itself is a reusable container may serve as a
premium. A self-liquidating premium is an item sold below its normal retail price to
consumers who request it.

2.1.3.5 Free Trials

Free trails consist of inviting prospective purchasers to try the product without cost in the
hope that they will buy the product. Thus, often we see, auto dealers encourage free test
drives to stimulate purchase interest.

2.1.3.6 Trade shows and Sponsorships

This are organized at local, regional, national or international level to introduce new products,
demonstrate the products and explain special features and usefulness of the products. Trade
show is a variant of sales promotion, and periodically, industries sponsor trade shows for
their members and customers (Griffin, 2014). They therefore promote products to marketing
intermediaries. More importantly, trade shows are relatively inexpensive and are very
effective, since the buyer comes to the seller already interested in a given type of product, as
a result international trade shows are becoming more important (Ricky, 2014).

2.1.3.7 Free Samples

Samples are offers of a free amount or trial of a product to consumers. The sample might be
delivered door to door sent in the mail, picked up in a store, found attached to another
product or featured in an advertising offer. Sampling is the most effective and most expensive
way to introduce a new product.

2.1.3.8 Price off

Here the retail price of a products is reduced (often indicated on the pack) by the seller to
encourage purchase, especially where competitors offer products at the same price.
2.1.3.9 Bonus pack

Cravens (2000) sees it as extra quantities of a product that a company offers to a consumer at
the regular price by providing larger containers or extra units. This offers lower costs per unit
for consumers and provides extra value as well as more products for the amount of money
paid. This technique is usually useful while introducing new products in the market.

2.1.3.10 Contest

This enables consumer induce skills or creativity and analytical abilities to win a prize. This
tool can increase consumers’ involvement with the product.

2.1.3.11 Money back offer and scratch and win offer

Customers are assumed here that the full value of the product will be returned to them if they
are not satisfied after using the product. Here a customer scratch a specific marked area on
the package of the products and gets the benefit according to the message written there.

2.1.4 Nature of Sales Promotion

As more businesses move into global markets, it is becoming increasing difficulty to

determine the best promotional approach (Wills, 2016) that an organisation can adopt. In
many cases, the most highly visible promotional mix often used in marketing mix relates to
sales promotion (Ricky, 2015). Sales promotion has the following variables which will be
discussed in the course of this research work and they are price discount and point of
purchase display

2.1.4.1 Price Discount

Price discount is referred to as lowering the price of a product to stimulate sales is a

conventional strategy employed in every area of sales, but simply announcing the price drop
may not be enough and can even have a negative effect if buyers perceive the price drop as a
reflection of the product's true value. Appropriate discount pricing strategies dispel this idea
and introduce the idea of a limited price drop for buyers who respond quickly. A related
strategy is to pitch the product as something that will only be available for a short time.
Discount is a type of Sales Promotion it helps create hype for the product. It makes people
aware of the product, so that they may buy it and help increase the sales and/or popularity of
the product. In fact, there are actually three basic objectives of this promotion:
i. To present information to consumers as well as others.

ii. To increase demand.

iii. To differentiate a product.

Discounts allow the seller to do that. Discounts and offers are essentially just reductions to a
basic price of goods or services. Sellers often offer discounts or sales to entice the customers,
offering a 10% discount or 20% off of the product. Price discount is a situation whereby the
seller aims to sell the product at a price less than the regular price. There are many purposes
for offering a discount, including increasing short-term sales, to move out-of-date stock, to
reward valuable customers, to encourage distribution channel members to perform a function,
or to otherwise reward behaviours that benefit the discount issuer.

Businesses use discount pricing to sell low-priced products in high quantities. With this
strategy, it is important to cut costs and stay competitive. Large retailers are able to demand
price discounts from suppliers and make a discount pricing strategy effective. It is usually
impossible to compete with these retailers based solely on a discount pricing strategy. Use
discounts off the list wisely and sparingly. Occasional discounts and discounts that reward
loyal customers are effective. It is normal to offer quantity discounts to customers who
purchase in large quantities. These discounts can be cumulative, such as discounts given to
customers who place multiple small orders or loyalty card[s that give a free item after a
certain number are purchased. These discounts reward customer loyalty. Seasonal discounts
are appropriate to reward customers who purchase during off-peak times. They often serve to
increase sales at the beginning of peak seasons. Promotional discounts are short-term, to
drive sales. Using promotional discounts too often trains consumers to wait for the sale and
may damage the overall profitability of the product. Loss leaders are discounted items
designed to bring customers into the store, where they will hopefully purchase more
profitable products as well. Loss leaders should be recognized brands that are used
frequently. Loss leader items change regularly to keep customers coming back.

2.1.4.2 Point of Purchase Display

Point-of-purchase or (POP) display is marketing material or advertising placed next to the

merchandise it is promoting. These items are generally located in the checkout area or other
location where the purchase decision is made. More commonly abbreviated to POP by
retailers, this can be one of the most underutilized tools in retail today. POP has become a
staple strategy for manufacturers. Point-of-purchase displays, such as printed materials, or
digital displays, are designed to catch the buyer’s attention when he or she is making a
purchase, such as a promotional display at the check-out-line at the grocery store. This is a
great way to stay in front of your audience using visually attractive displays. Point-of-
purchase marketing takes over when the customer is already in the store and is ready to make
a purchase. A point-of-purchase display is made up of marketing materials placed next to the
merchandise the marketing materials are promoting. These items are generally located at the
check-out area or other location where the purchase decision is made. Sometimes these are
also called kiosks, end caps, or point-of-sale display. POP displays and marketing materials
draw attention to particular brands or special offers that create additional value or showcase
the advantages of the product. This additional marketing has a large impact because it is in
place at the very moment that the consumer is making a buying decision.

In order to draw attention of many customers to a particular product’s brand, many business
organisations employ the use of “point-of-purchase” (POP) technique. This is a type of sales
promotion in which a “product display” is so located in a retail store so as to encourage
consumers to buy the product (Ricky, 2005). This implies that, POP displays and
demonstrates products at the point where it can be purchased. More important, in this day of
advancement in technology, this can be equally achieved with the use of the internet. Here,
the Retail outlet can open a web site where prospective customers can view new displays
from time to time. The implication here is that, customers do not necessarily have to
personally visit retail stores before they can have access to products being displayed for the
first or continuous times.

Aside from all the thought and effort that goes into advertising and enticing customers to
enter a store to buy something many effective strategies exist for influencing purchasing
decisions once they're in the store. These point-of-purchase marketing tactics can be
relatively inexpensive and they're extremely effective, so don't overlook them as part of your
overall marketing plan. The more customers notice the products, the greater the chances
they'll buy. Point-of-purchase displays can include everything from designing labels with
eye-catching colours to building elaborate end of aisle configurations. More than half of all
final purchasing decisions are made in the store, even if someone has researched a product
online, so increased visibility during this decision-making time frame is invaluable for
increasing sales. In addition to simply calling attention to your product, point-of-purchase
displays can make it easier for customers to reach for your products by placing them in
accessible locations, and creating scenes or configurations that show how your products can
be used.

2.1.5 Organisational Performance

Organizational performance can be seen as an analysis of a company’s performance as

compared to goals and objective. Looking at organizations growth and performance in the
telecommunication sector three main outcomes will be analyzed: financial performance,
market performance and shareholder performance. Juxtaposing sales promotion here it’s clear
that the financial and market performance of the organization is an important sector of a
company owing to the fact that sales promotion demands a lot from the two. There is no
universally accepted definition thou, Organizational performance is seen as the extent to
which organizations viewed as a social system fulfilled their objectives. Performance
evaluation is focused on work, people and organizational structure.

Lebans and Euske (2006, p.71) provides a set of definitions to illustrate the concept of
organizational performance.

i. Performance is a set of financial and non-financial indicators which offer information

on the degree of achievements of objectives and results.
ii. Performance is dynamic, requiring judgment and interpretation.
iii. Performance may be illustrated by using a casual model that describes how current
actions may affect future results.

Performance may be understood differently depending on the person involved in the

assessment of the organizational performance (e.g. performance can be understood differently
from a person within the organization compared to from the outside). To define the concept
of performance is necessary to know its elements characteristics to each area of
responsibility. To report an organization’s performance level, it is necessary to be able to
quantify the results. And this is the case in the application and use of sales promotion as a
great marketing communication strategy to ensure great sales volume in organizations.

Also, it is recognising that sales promotion as a promotional activity occurs within an

organisational context. Organisational performance relates to the actual output or results of
an organisation as measured against its intended objectives. It embraces three specific
dimensions, namely, financial performance, product market performance and shareholders’
return (Richard, 2015).
The financial dimension concerns issues in respect of profit margins, return on asset and on
investment. In contrast, the product market performance also addresses issues with regards to
sales and market shares. The third dimension basically deals with issues such as total
shareholder return, and economic value added. More importantly, many organisations have
attempted to manage organisational performance using the “balanced scorecard” methodology
where performance is tracked and measured in multiple dimensions such as financial
performance, customer service, social responsibility, and employee stewardship (Richard et
al., 2017).

It can be discerned that organisational performance entails three specific dimensions

including financial, product market performance and shareholder return (Richard et al,
2017). These are very useful aspects of any organisation. In this sense, any application of
sales promotion must be done in a well-coordinated manner, so as to ensure the desired effect it
is intended to attain. Organization performance entails the following variables:

2.1.5.1 Profitability

Profitability is the ability of a business to earn a profit. A profit is what is left of the revenue a
business generates after it pays all expenses directly related to the generation of the revenue,
such as producing a product, and other expenses related to the conduct of the business
activities. Profitability is ability of a company to use its resources to generate revenues in
excess of its expenses. In other words, this is a company’s capability of generating profits
from its operations. Profitability is one of four building blocks for analysing financial
statements and company performance as a whole. The other three are efficiency, solvency,
and market prospects. Investors, creditors, and managers use these key concepts to analyse
how well a company is doing and the future potential it could have if operations were
managed properly.

The two key aspects of profitability are revenues and expenses. Revenues are the business
income. This is the amount of money earned from customers by selling products or providing
services. Generating income isn’t free, however. Businesses must use their resources in order
to produce these products and provide these services. Resources, like cash, are used to pay for
expenses like employee payroll, rent, utilities, and other necessities in the production process.
Profitability looks at the effect of the revenues and expenses to see how well a company is
performing and the future potential growth a company might have. Profitability is closely
related to profit, but it is the metric used to determine the scope of a company's profit in
relation to the size of the business. Profitability is a measurement of efficiency – and
ultimately its success or failure. It is expressed as a relative, not an absolute, amount.
Profitability can further be defined as the ability of a business to produce a return on an
investment based on its resources in comparison with an alternative investment. Although a
company can realize a profit, this does not necessarily mean that the company is profitable.

To determine the worth of an investment in a company, investors cannot rely on a profit

calculation alone. Instead, an analysis of a company’s profitability is necessary to understand
if the company is efficiently utilizing its resources and its initial investment. If a company is
deemed to have a profit but is unprofitable, there are a number of tools that can be used to
increase profitability and overall company growth. A company can be quickly bogged down
with failing projects, which directly leads to sunk costs. To reduce the occurrence of project
failures, companies can explore the profitability index to determine whether a project is worth
pursuing. This metric provides company management with insight into costs versus benefits
of a project, and it is calculated by dividing the present value of future cash flows by a
project's initial investment. A company can also increase profitability through the theory of
marginal returns. One of the first steps a company takes to increase profitability is to boost
sales, which requires an increase in production. Marginal return, also known as marginal
product, is a theory that states that the addition of workers up to a certain point increases the
use of capital in an efficient way; exceeding that number of workers leads to diminishing
returns and ultimately less profitability. In order to be profitable, it is necessary for a
company to apply this theory to its specific business and production needs to experience
growth in an efficient, cost-effective manner. A business must achieve profitability in order
to sustain its operations. It is impossible to imagine a business without profitability.
Profitability measures the efficiency of the company.

2.1.5.3 Client Base

A client base is a company's primary source of business. A client base consists of the current
customers paying for the products, or services, as well as potential customers which have a
high likelihood of becoming customers. Businesses rely on this group for most of the
business sales, and focus on them for developing new products, or advertising. A client base
is usually defined using demographics such as age, location or gender, and can change over
time. Developing, maintaining and expanding its client base is a major concern for any
business, since without clients, the business cannot earn revenue. Strategies companies use to
increase this base include networking, word-of-mouth marketing and referrals, developing a
specialty or area of expertise, staying in touch with existing clients, showing appreciation for
clients and consistently meeting or exceeding expectations. Businesses that primarily provide
professional services (like financial planning) tend to use the term "client base", while
businesses that primarily provide products tend to use the term "customers".

As a company researches, develops, and plans to bring a product or service to market,

attracting the attention of potential client base is of paramount concern. The product in
question is intended to answer some need or resolve a pain point that company believes the
target client base has. The success potential for a service or product is often based on the size
of the intended client base and those customers’ anticipated willingness to spend money on
said service. A business's client base is the same as its customer base.

2.1.5.4 Organisational Market share

It represent the percentage of an industry or market total sales i.e earned by a particular
company over a specify period of time. Market share is calculated by taking the company’s
sales over the period and dividing it by the total sales of the industry over the same period.

The kind of promotional mix employed determines the promotional strategy. Generally
speaking a particular combination, type or amount of sales promotion, personal selling,
publicity and advertising are brought into the promotional mix, which becomes the
promotional strategy in the course of implementation. The marketing strategy as much
guides the determination of the promotional strategy, which may be divided into sale
promotion strategy, personal selling strategy, publicity strategy and advertising strategy.
The strategies sustaining promotional strategy, developmental promotional strategy or
promotional appropriation.

SALES PROMOTION ORGANISATION

PERFORMANCE

Trade shows Organisational Profitability

 Price discounts
Organisational market base

Fig 1: Source: Researchers Conceptual Framework, 2021.

2.2 THEORETICAL REVIEW

The effects of sales promotion on organisational performance have been a subject of

extensive theoretical exploration within the field of marketing. The theoretical framework
encompasses various dimensions, ranging from short-term sales impact to long-term brand
equity. Below is a detailed theoretical review, drawing on key concepts and models from
academic literature:

2.2.1 CONGRUENCY THEORY - Steven M. Burgess and Richard J. Stephenson (The

Congruency Theory of Promotional Response: An Empirical Test in the Consumer
Packaged Goods Market) published in the Journal of Marketing Research in 2002.

The congruency theory in sales promotion posits that the effectiveness of a sales promotion
depends on the alignment or congruency between the promotion and the product or brand
being promoted. In other words, the promotional message and the product should be
consistent or congruent with each other to maximize the impact on consumer behavior.

This theory suggests that when there is a strong match between the promotional message and
the product attributes, consumers are more likely to perceive the promotion as relevant and
persuasive. For example, offering a discount on a health food product would be congruent,
while offering the same discount on a luxury item might not be as effective due to the
mismatch in product attributes.

Burgess and Stephenson proposed that congruency can be assessed along various dimensions,
including product category, brand image, promotion type, and target audience. They
conducted empirical tests to validate the congruency theory in the consumer packaged goods
market, examining how different types of promotions (e.g., price discounts, coupons,
premiums) interacted with product characteristics to influence consumer responses.
The congruency theory offers valuable insights into the effects of sales promotion on
organizational performance. According to this theory, the alignment or congruency between
sales promotions and organizational objectives plays a pivotal role in determining their
impact on performance metrics such as sales revenue, market share, and brand equity.

When sales promotions are congruent with the organization's overall marketing strategy,
product positioning, and brand image, they are more likely to resonate with consumers and
elicit desired responses. For example, offering discounts on environmentally-friendly
products may align with an organization's sustainability goals, attracting eco-conscious
consumers and enhancing brand reputation.

Conversely, incongruent promotions that deviate from the organization's brand identity or fail
to align with consumer preferences may dilute brand equity, undermine credibility, and yield
suboptimal results. For instance, offering price discounts on luxury items may tarnish brand
perception and erode long-term profitability.

By understanding and applying the principles of congruency theory, organizations can

optimize their sales promotion strategies to maximize their effectiveness in driving desired
organizational outcomes. This strategic alignment ensures that sales promotions not only
stimulate short-term sales but also contribute to sustainable growth, competitive advantage,
and overall organizational performance in the long run.

Overall, the congruency theory highlights the importance of strategic alignment in sales
promotion planning and execution. By ensuring that promotions are congruent with the
product and brand, marketers can enhance their effectiveness in influencing consumer
behavior and achieving marketing objectives.

2.2.2 ENGAGEMENT THEORY - John A. Bargh, Katelyn Y. A. McKenna; The

Internet and Social Life (2004).

In a nutshell, the engagement theory by John A. Bargh and Katelyn Y. A. McKenna focuses
on the dynamics of social interactions in online environments. It emphasizes the importance
of building and sustaining meaningful engagement with users across digital platforms. The
theory highlights key dimensions of engagement, including involvement, interaction,
intimacy, and influence, which are essential for successful social media marketing.
When applied to sales promotion strategies, these principles illuminate how promotions can
impact organizational performance in several ways; Firstly, sales promotions that effectively
engage consumers are more likely to drive immediate sales and revenue generation. By
offering compelling incentives, such as discounts, coupons, or limited-time offers,
organizations can capture consumer attention, stimulate purchase intent, and prompt
immediate buying behavior. The heightened involvement and interaction fostered by
engaging promotions translate into tangible financial outcomes, such as increased sales
volume and revenue growth.

Furthermore, engagement-driven promotions can enhance brand loyalty and customer

lifetime value, leading to long-term organizational success. When consumers feel emotionally
connected to a brand or product through promotions that resonate with their values,
preferences, or aspirations, they are more likely to develop strong brand affinity and repeat
purchase behavior. This sustained engagement not only boosts customer retention but also
generates positive word-of-mouth referrals and advocacy, further amplifying the impact on
organizational performance metrics.

Moreover, engagement theory emphasizes the role of social influence and peer interaction in
shaping consumer behavior. Sales promotions designed to encourage user participation,
sharing, and social endorsement leverage the power of social networks to amplify brand reach
and impact. When consumers actively engage with promotions by sharing content, tagging
friends, or participating in user-generated campaigns, they extend the promotional message to
their social circles, driving organic brand exposure and acquisition.

In conclusion, the engagement theory by Bargh and McKenna offers a compelling framework
for understanding how sales promotion strategies influence organizational performance. By
prioritizing involvement, interaction, intimacy, and influence in promotional efforts,
organizations can drive immediate sales, foster long-term customer relationships, and harness
the collective power of social networks to achieve sustainable growth and success in the
digital age.

2.2.3 CONSUMER DECISION JOURNEY - McKinsey & Company; The Consumer

Decision Journey (Court et al., 2009).
The Consumer Decision Journey (CDJ) framework developed by McKinsey and Company
provides valuable insights into how sales promotions can impact organizational performance
throughout the consumer's decision-making process. The CDJ model outlines the stages
consumers go through when making purchasing decisions, including consideration,
evaluation, purchase, and post-purchase advocacy. By examining how sales promotions
intersect with each stage of the CDJ, we can understand their effects on organizational
performance more comprehensively.

Firstly, sales promotions play a crucial role in the consideration phase of the CDJ. During this
stage, consumers become aware of a need or desire for a product or service. Promotions such
as advertisements, discounts, and special offers can effectively capture consumers' attention
and stimulate interest in the promoted products. Organizations that strategically use sales
promotions to increase brand visibility and attract consumers' initial interest are likely to
experience higher levels of brand awareness and consideration, which can ultimately lead to
improved organizational performance.

Moreover, sales promotions influence the evaluation stage of the CDJ, where consumers
compare different options and assess their suitability. Promotional tactics such as price
discounts, coupons, and product bundling can sway consumers' purchase decisions by
offering perceived value and incentivizing immediate action. Organizations that deploy
targeted and compelling promotions during the evaluation stage can drive conversion rates
and sales volume, thus positively impacting their financial performance and market share.

In addition, sales promotions continue to exert influence even after the purchase is made,
shaping consumers' post-purchase experiences and behaviors. Promotional incentives such as
loyalty rewards, referral programs, and after-sales support can enhance customer satisfaction
and loyalty, leading to repeat purchases and positive word-of-mouth recommendations.
Organizations that effectively leverage sales promotions to foster post-purchase engagement
and advocacy can strengthen brand loyalty, generate customer referrals, and ultimately drive
long-term organizational success.

However, it's important to note that the effectiveness of sales promotions on organizational
performance may vary depending on various factors, including the nature of the promotion,
target audience characteristics, competitive dynamics, and industry context. Additionally,
organizations must carefully consider the short-term and long-term implications of sales
promotions on profitability, brand equity, and customer relationships to ensure sustainable
business growth and success.

In conclusion, the Consumer Decision Journey framework offers insights into how sales
promotions intersect with different stages of the consumer's decision-making process,
ultimately influencing organizational performance. By strategically deploying promotions to
capture consumers' attention, drive purchase decisions, and foster post-purchase engagement,
organizations can leverage sales promotions as a powerful tool to achieve their marketing
objectives and enhance overall business performance.

2.3 EMPIRICAL REVIEW

Festus (2016) conducted a study on the impact of sales promotion on organisational

performance a study of Guinness Ghana Breweries Limited, and was discovered from the
research that there was a positive and significant relationship between sales promotion and
organisational performance.

Adeniran, Egwuonwu and Egwuonwu (2016) conducted a research on the impact of sales
promotions on sales turnover in airlines industry in Nigeria: their research affirmed that sales
promotions incentives have a significantly impact on sales turnover in the airlines industry.

A study was also conducted by Dangaiso (2014) to establish the effectiveness of sales
promotion strategies on company performance using TelOne Zimbabwe as a case study. The
study was piloted and driven by the following objectives, which are: to determine the effects
of contests and sweepstakes on profitability, to determine the effects of bonuses on subscriber
growth and to establish the effects of price-offs on sales volume. A sample size was
calculated using the Lucy model of determining sample size. The target population was 160
consisting of employees, management and key clients (subscribers) from Gweru market.
Stratified random sampling was used in drawing samples from the target population.
Questionnaires were administered to employees and key subscribers and management
interviews were conducted.

The results of the analysis indicated that sales promotion strategies were effective with
contests and sweepstakes being the most effective and price discounts contributing a minimal
of the three strategies employed. Most important findings were that TelOne widely used
contests and sweepstakes as the main promotion activities to stimulate their profitability,
bonuses increased sales volume and lastly price discounts enhanced market share growth.
Another finding revealed that there is a very strong positive relationship between sales
promotion activities and company performance measured in relation to growth, profitability,
sales volume and market share. The study concluded that sales promotion activities induce
customers to consume TelOne products on the market thus increasing consumption rate and
the sales volume. The researcher recommended that TelOne need to understand the
promotion activities and which media to communicate to consumers. It should put a lot of
emphasis in planning promotional programs, set promotional goals and strategies. The
company need to carry out period evaluation in the course of the sales promotion, control of
promotion and make adjustments where possible. This study is in conformance with previous
study conducted by; Olaniyi T.A., Salman R.T. and Adebayo S.A. (2013).

Oyeniyi, (2011) conducted a study on the impact of sales promotion on organizational

performance. The major aim of this study was to find out the impact of sale promotion on
customer loyalty in the telecommunication industry in Nigeria. In this study, the survey
method was used in gathering information from the respondents. A total population of one
thousand one hundred and twenty five (1,125), a simple random sampling was used to select
a sample size of 310, while descriptive and inferential statistical analysis was conducted with
the aid of SPSS software. The study found out that, there is positive relationship between
sales promotion and customer loyalty. More importantly, it was discovered that non-loyal
customers are more prone to switch to competing products as a result of sales promotion than
loyal customers. The study covered one variable (sales promotion) rather than advertising and
personal selling or the combination of both. Also the study was conducted in Southern part of
Nigeria. The study focused on telecommunication industries rather than manufacturing
(Breweries) industries. The study is in conformance with previous studies conducted by
Mohammed (2010).

According to a research done by Tandoh and Sarpong (2015), on the impact of sales
promotions on the performance of Auto-Mobile Industries in Ghana. It was established that
sales promotion has a positive effect on organizational performance.

Dangaiso (2014) conducted a research on the effects of sales promotion strategies on

company performance of Auto-Mobile Industries in Ghana, it was revealed that use of sales
promotional activities such; as bonuses, price and contest sweepstakes has a positive
influence on company performance.

Amusat and Ajiboye (2013) conducted a research on sales promotion as an antecedent of

sales volume. Simple random sampling was used to select a sample of 80 respondents. Data
was collected using structured questionnaires. It was revealed that sales promotion activities
such as bonus, coupons, free samples, price promotion and premiums affects sales volume.

Grankvist, Kollberg and Peterson, (2004) stated in their study of which they focused on
promotional strategies for banking services, concluded that all elements of promotion mix
were used to some extent for promotion of banking services.

This view was supported by Ananda and Murugaiah (2003) who carried out similar study on
financial industry and recognized the importance of promotional strategy in influencing
performance in the sector. In his finding, Kristina (2006) recommended that promotional
strategies should be designed as per the nature of services to be promoted.

In a research study conducted by Stephen, Aliyu, & Ibrahim (2017) titled the impact of sales
promotional strategies on organizational performance with reference to Flour Mills
Maiduguri finds out that marketing communication is very important and at the same time
challenging in the organization. The marketing communication mix elements have become
the important players in the life of any businesses be it small, medium or large. The
objectives of this study are to examine the impact of sales promotional strategies on
organizational performance with reference to Flour Mills Maiduguri, Borno State Nigeria.
The population of this study was carved out of the entire staff of the Flour Mills of Nigeria
Maiduguri, Borno State branch cutting across the Top, Middle and lower level management.
The study employed both the primary and secondary sources of data collection.
Questionnaires were administered to twenty (20) staff using random sampling techniques.
The data collected were subjected to descriptive statistics such as percentage analysis in order
to analyse the data and regression analyses were used for testing hypotheses. The result
signifies that sales promotional strategies have positive and significant effects on
organizational performance. The study recommend that company should at all-time have to
planned, organized, directed and controlled their sales promotion programme in place as this
will help them to make such promotional strategies effective and efficient. Also, they should
take advantage of festival period or events by developing effective sales promotional tools
that can influence consumers’ awareness about the product in the events.
Another study carried out by (Isaac & Loretta, 2015), titled The Impact of Sales Promotions
on the Performance of Auto-Mobile Industries in Ghana. The study was conducted at PHC
Motors Ghana’s Retail Outlet in Accra, Ghana. The objective of the study was to examine the
relationship between sales promotion and organizational performance, to examine the effect
of sales promotion in the automobile market, and to identify the challenges hindering sales
promotions effectiveness. The study used descriptive research approach and the data was
purely quantitative. In order to achieve this objective, thirty (30) respondents were selected
using purposive and random sampling techniques. The Data was analyzing using SPSS
obtained from the field. The research revealed that the impact of sales promotion on
organizational performance in PHC is intense. Also, from the management perspective most
of the respondents agree that sale promotion provides extra incentives to purchase as well as
stimulating resellers demand and effectiveness. The study devoted to conclude the
relationship between sale promotion and the organizational performance, most sales
promotion provide extra incentives to purchase as well as stimulating resellers demand and
effectiveness. It revealed that effective sales promotion increase sales. The researcher
therefore recommended that, management of PHC Motors should embark on more strategic
sale promotion in order to increase their market share and profitability.

A research carried out by (Amos & Ibojo, 2011) finds out that in spite of the numerals sales
promotion techniques available to many organizations, it is important to note that many
organizations have not yet appreciated how to effectively and efficiently utilize these sales
promotion techniques in attempting to enhance their organization performance. The
objective of this paper is to find out if sales promotion techniques to be adopted at a given
time affect the company’s sales volume and also to look at the effect of sales promotion on
organizational performance. The method used is survey approach which gives room for
primary data-questionnaire while the sampling technique adopted is simple random sampling
techniques in which all members of the population has equal probability and independent
chance of being selected. The chi-square method is used to test the hypothesis and to
examine the effect of sales promotion on organizational performance. During the course of
findings, majority of the respondents accepted the fact that sales promotion affects
organizational performance and sales volume of the organization. In conclusion, effective
implementation of sales promotional tools lead to increase in sales volume and invariably
higher profits. It is recommended that during festive period, organizations should take full
advantage by developing an effective and efficient sales promotion campaign that can arouse
the consumer’s awareness, thereby leading to greater purchase of their products.

In view of Adeel, Muhammad , Muhammad, Muhammad, & Sayed, 2014 the main reason of
conducting this research was to explore the influence of social surrounding, discount level
and buying behavior on sales promotion. The research results found that there was no
significant relationship of social surrounding, discount level with sales promotion. But on the
other hand buying behavior, free sample, price reduction has a significant relationship with
sales promotion. The results of this research paper will help the marketers to understand best
promotional techniques to increase significantly in their sales as well as revenues. This
research paper also plays a vital role in helping businessmen to develop their business planes
more effectively so that they can get the competitive advantage over their competitors and
make them able to maximize their profits. In total 180 Questionnaires were distributed by
hand in different department of Islamia University of Bahawalpur. Data was feed in SPSS.
This research was done on different sales promotional techniques. Findings shows that
different sales promotional techniques have impact on consumer buying behavior and
purchase intention for all type of products on the other hand.

Another study by Olalekan, Ibidolapo, & Folasade, 2017 in their research study which is
directed to evaluate the Influence of Promotional Activities on Consumers’ Patronage of
Insurance Business in Ado-Ekiti Metropolis, Nigeria, in which the population of this study
comprises 19,998 of customers of Insurance Company operating within Ado-Ekiti
metropolis. The total sample for this research work was three hundred and ninety-two
questionnaires, among the total sample; three hundred and seventy-three questionnaires were
duly returned and used for this research work. Four hypotheses were formulated and tested
using multiple regression method of analysis at 0.05 level of significance. The result showed
a strong and positive relationship between media advertising and consumer patronages’. The
result also indicated that personal selling has significant effect on consumer patronages’. The
results also showed that there is a significant relationship between sales promotion and
consumer patronages of insurance businesses in Ado Ekiti metropolis. The results further
showed that there is a strong and positive relationship between direct marketing. The research
concluded that prospective marketing manager, insurance brokers, insurance agents, other
insurance practitioners and the likes. Knowing how to use this information in the
effectiveness of insurance operations depends on the understanding of some key driving force
such as culture, trust, information technology, publicity (timing, duration and cost) and
customer relationship strategy.

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION

This chapter contains an explanation of the research methods that would be used in this study.
The methodologies include areas such as the location of the study, Research design, target
population, sampling and sampling techniques, types of data, instrument for data collection.
Additionally, explanation was given as to how data will be gathered and analyzed, as well as
how instrument was validated.

3.1 RESEARCH DESIGN

The research aims to measure the extent to which sales promotion affects organizational
performance, a case study of Adron Homes and Properties Limited.

The research design of this work is essentially the plan and strategy put in place for collection
and analysis of data. This research work adopted the usage of before and after. Consequently,
in line with the existing literatures of many research methods available in the research work,
survey method was adopted. However, this research work makes use of quantitative analysis
which required the usage of questionnaire. However questionnaire was used to solve the
research design.

3.2 POPULATION

3.2.1. Target Population

The population of the study would be the employees of Adron Homes and Properties
Limited. They are defined by their age, gender, position in the organization, years of
experience or other relevant characteristics of the employees. They are male and female
individuals of any age.

3.2.2. Study Population

The population is the totality of the objects or element being studied and to which
conclusions and generalization of our results were applied. The population of a study is a
number of all items or subjects that possess the characteristics of the phenomenon being
studied. The target population in this study has captured the employees of Adron Homes and
Properties Limited in the branches in Ibadan, Oyo State. Hence, the population for this study
is Seven Hundred (700) individuals.

3.3 SAMPLE SIZE

It is assumed that this sample size is the true representation of every element in the total
population of study. However, survey method will be made use of, which necessitates
drawing up a sample that adequately represents the entire population from which conclusions
was made on the whole.
The Population for this study is Seven Hundred (700) individuals; the sample size for this
study will be One Hundred (100) employees of Adron Homes.

3.4 SAMPLING TECHNIQUE

Sampling technique refers to a process that involves different way of choosing sample
(Barreiro, 2001). A sample on the other hand deals with a representation of the population or
universe under study (Bartlett 2001). Sampling refers to a process of collecting information
from a sample.

Sampling techniques can be probability sampling techniques or non-probability sampling

techniques. Probability sampling techniques include simple random sampling, systematic
sampling, stratified sampling, cluster/area sampling while non-probability sampling
techniques include convenience sampling, judgmental sampling and quota sampling
techniques.

Purposive sampling method will be used for the study, this is because purposive sampling
involves selecting individuals or groups from a population based on specific criteria or
characteristics that are of interest to the researcher. In this case, it was deliberate to choose to
survey employees from the ‘sales department’, because of the interest in their perspectives,
experiences, or behaviors related to sales promotion or organizational performance. This
sampling method allows researchers to focus on a particular subgroup of the population that
is relevant to the research objectives.

3.5 INSTRUMENTS FOR DATA COLLECTION

The research instruments for data collection in this research will be questionnaires and a
focus group discussion guide, which will be used by the researcher to test effects of sales
promotion on organizational performance at Adron Homes.

The questionnaire will be carefully constructed and purposefully placed to efficiently

measure the variables, and it will be divided into 4 sections: Section A contain questions that
elicit the socio demographic data of the respondents. Section B contain questions that
identifies the sales promotion tools/strategies used by Adron Homes. Section C contain
questions that identifies how the implementation of sales promotion affect the organizational
performance at Adron Homes. Section D contain questions that will identify factors that
promote and impair the effectiveness of sales promotion in the organisation, Adron Homes.
Section E contain questions that shows how the organization evaluates the success of sales
promotion

The focus group discussion guide will also be used to gather diverse perspectives and insights
from participants to understand the multifaceted impact of sales promotions on organizational
performance.

3.6 VALIDITY AND RELIABILITY OF INSTRUMENTS

3.6.1 Validity of Instrument

Content validities of the structured questionnaire will be addressed by:

• Comparing the items with the current and relevant literature.

• Matching its item with the set objectives, research questions and formulated research

hypotheses.

Face Validity will be addressed by submitting the questionnaire to the the research supervisor
for appropriate vetting.

3.6.2 Reliability of Instrument

To ensure reliability of instrument, the instruments to be utilized will be validated through a

pilot study before going to the field for data collection.

3.7 PROCEDURE FOR DATA COLLECTION

Upon arrival at Adron Homes, permission will be taken from the company head giving
detailed explanation of the method of data collection. Ethical permission will also be taken
from the company’s board of directors. Detailed information about the purpose of the study
will be explained to the participants. Consent will also be sought verbally and employees who
consent verbally will be given the questionnaire. Instructions on how to fill the questionnaire
will be clearly written and explanations will be provided where and when necessary. Data
collection will span for a week to enable a good representation of the population.

The researcher will go to the organisation to facilitate the ease of administration and retrieval
of the questionnaires papers. Data will be collected from the employees of Adron Homes.
Also, the focus group discussion will be recorded to ensure that there is record of accurate
data.

3.8 METHOD OF DATA ANALYSIS

A simple percentage and frequency count will be used for the personal information section of
the questionnaire, while correlation analysis statistical utensils will be used to examine all the
null hypotheses, and all hypotheses will be investigated or tested at, 0.05 alpha level of
significance. That is to say, quantitative data will be analysed with the aid of the Statistical
Product and Service Solutions (SPSS ver). Statistical analysis involves the use of
percentages, pie chart, bar chart and chi-square methods. Qualitative data from the focus
group discussion will be analysed through the use of content analysis where all information
gathered will be transcribed.