CHAPTER ONE

• INTRODUCTION

Nigeria like every other developing countries of the world view sales promotion as one of the major policies for her company and industrial development. These reason are advised in support of this thinking.

First; it suggest that industries offer more  employment opportunities to the mass  population in the country.

Secondly, sales promotion is implement to attract new customer, to hold present customers to counteract competition and to take advantage  of opportunities that are revealed by market research. It is  made of activites , both outside  and inside activities to enhance company sales. Outside sales promotion activities include  advertising, publicity, public   relation activities and special sale events. Inside sales promotion activities include window  displays, product and promotional material display and promotional  programs such as  premium award and contest.

Thirdly: Sales promotion earn foreign  exchange to the company a nature at large. Sales promotion in Nigeria context seem to be difficult to practice by the industries or company. This is because  the feel reluctant to   invest in sales promotions, they all nausea the feeling that is a waste of accumulate interest and furthermore, this sales industries find it difficult to go  into a large sales promotion could be traced easily from the flourishing enterprises and  small scale industries.

Fourthly, Sales promotion includes  several communication activities that attempt to provide added value or incentives to consumers, wholesalers, retailers or other organization customers to stimulate  immediate sales. These efforts can attempt to stimulate product interest, trial or purchase.

Therefore, it is no doubt  that when consumers are aware  of a product  they would like to try it thereby increasing the awareness of the company product.

1.1  Background of the Study

Dr. Iguedon Goko cleanser is one  of the companies that realize  the impact of sales promotion and sales  attest, the impact of sales  promotion to the sale managers replying to a questionnaire which states that the volume of sales they  previously make before they embark in a sale promotions has new doubled thereby making up for the capital invested.

A good sales promotion help a company gains a household name within inside and outside the town in question.

Through this sales promotion the consumer will be aware of the location or the depot location of the company. It is also through the promotion that the position of the company is known and the ways  of improving it and  updating the product  to be generally accepted  by the producers and consumers.

1.2  Statement of the Problem

Sales promotion is not  an effective promotion  for the purchase intent. Other problem are as follows:

• Organization usually encounter problems such as lack of  management, known how not  appointing the right  and experience marketers or sales promotion experts. More sales promotion carried out by organization are usually badly  organized and implemented which leads  to the aim being defeated thereby  having a direct effect on sales volume and profit. This problem of low sales  and low demand have promoted producers to use sales promotion  to compliment the use of   other  promotion mixes like advertising, personal selling, publicity and public relations.
• What is the level of patronage as regard  the effectiveness of the promotional strategy? If the company sales promotion does not  have a good patronage for the product , it will lose its target audience.
• Also, the research seek to find out the most suitable method of sales promotions of a product to enhance its acceptance by consumers.
• The company inventory management and control system is closely inefficient as a result of this, many consumer sometimes would not know the product or  brand  the company produces.
• In a developing economy like Nigeria, it is not enough for manufacturers to just  produce and expect consumer will buy their product or services without considering what they will benefit or deprive from it. Hence sales promotion become inevitable. Manufacturers are faced with the problems of products substance and competition. So for that reason many manufacturers now attempt to stimulate and get consumers  attention with customer loyalty, increase market share by using sales promotion tools on goods and services
• 3 Purpose of the  Study

The major purpose of the study is to identify the structure, the impact of sales promotion on the purchase intent of Goko cleanser  among student of Federal Polytechnic Oko, to identify some problems facing the relactance of the investors to invest in sales promotion and possible their present contribution of the growth and development of Dr. Iguedo Industry. This will serve in  interested individuals in making decision regarding sales promotion for future economy development of the state.

This study will also highlight the role of sales promotion and sales recommend on measures to be used in order to improve on sales performance of an organization.

The major objective is to examine how Dr. Iguedo industry creates awareness and the impact  of sales promotion in the purchase intent of Goko Cleanser among Student of Federal Polytechnic Oko.

The study will also assess the contribution and efforts  of sales  promotion to improve the sales of an organization.

This study will also highlight the prospect and importance of sales promotion on the purchase intent of Goko Cleanser among student of Federal Polytechnic Oko in an organization.

1.4  Significance of the Study

Sales promotion has been recognized as a basic tools for building store traffic and stimulating sales by organization or companies.

The effectiveness of this device sudstantinlly however is ultimately dependent on the strength of the individual organization.

The sales  promotion on the purchase intent of Goko Cleanser Dr. Iguedo Industry for co-ordinating the nation in relation on personal selling and advertising, it is meant to stimulate consumer to buy their product through the sales promotion.

In some case, the other components of the promotional mix support a sales promotion strategy. For example, an advertising campaign might be used to publicize a sales promotion strategy.

1.5  Research Question

1. In Federal Polytechnic Oko, what are the possible limitation of sale promotion?
2. To what extent has the sales promotion effect the purchase intent of Goko Cleanser among the student of Federal Polytechnic Oko.
3. Are there factors that influence sales promotion in the purchase intent of Goko Cleanser?
4. What are the suitable methods sales promotion in the company Products?

1.6  Formulation Hypothesis

The following hypothesis is to be tested with a chi-Square (x2) approach

• HO- Sales promotion does not have a positive impact in the purchase intent of Goko Cleanser
• HO- Sales promotion does not stimulate repeat product because sales volume often reduce drastically once the sales promotion comes to an end.

1.7 Scope of the Study

Through literatures has not been written on the topic (Sales Promotion). Hence, there is a limitation on the researcher. Some of the information also known to lack  of infrastructural development  in the area. I am unable to go futher due to the limitation of time.

But I must  not fail to stress the level of problem of illiteracy posed in my date collection. Some of the interviews were mainly illiterate and so I found it difficult to ask question in English.

1.8  Definition of Terms

• Markets
• purchase Intent
• marketing Research
• Consumer Behavior
• Product
• Personal Selling
• Advertising
• Sales promotion
• Promotional Strategy

1.9  Operation Definition Of Terms

• Market: This refers to people who patronize a product with their potential power ( money). Those who by or sell makes up a market.
• Marketing Research:- These is a deliberate and systemic effort taken to discover existing consumer unfilled need and wants. The characteristics and extent of the product.
• Purchase Intent:- This is a measure of the probability that a consumer will purchase a service  or product.
• Promotional Strategy:- This is the choice  of a target market and formulation of the most appropriate promotion mix to influence it.
• Consumer Behavior:- Consumer behavior means the attitude that the consumer displays in searching for purchasing, using and evaluating their produce services and idea which they expect will satisfy their needs.
• Product:- A product is something that is viewed as been capable to satisfying needs or wants.
• Personal Selling:- Personal Selling is the oral presentation in a conversation with one or more prospective purchase for the purpose of making sales. It involves personal contacts whereby verbal exchange and gestures are freely used.
• Advertising:- Advertising is any paid form of non-personal presentation and promotion of ideas, good services by an identified sponsor through mass media.
• Sales promotion:- Sales promotion are those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as display, shows and exposition, demonstrations and various non-recurrent selling effort not in the ordinary routine.

1.10    Conceptual Definition of Terms

1. Market:-     A market is a group of buyer and seller usually (Producer and consumers) bargaining over the terms of exchange for goods and services. (Ejerome Mc Carthy 1981).
2. Marketing Research: Marketing research is the junction which links an organization to it market through the gathering of information (Joseph F. Hair Jr).
3. Advertising:- Advertising is the disseminating of sale manager through purchased time (Broadcasting and space (print.) (Winsto Fletcher’s 1979)
4. Consumer behavior:- Eagle (1917:3) defined consumer behavior as those act of individual directly involved in obtaining and using economy goods and services including the decision process that determines those acts.
5. Sales promotion:- This defined the promotion in marketing of drug as the system and channels of a firm uses to make its product known (Clenke 1978).