CHAPTER ONE 1.

0 INTRODUCTION This research aims at exposing the effectiveness of sales promotion on sales at Zimpapers in the Sunday Mail brand. This chapter is going to describe the background to the study, statement of the problem, objectives and assumptions, importance of the study, limitations, delimitations, definitions of terms and summary. 1.1 BACKGROUND OF THE STUDY The Sunday Mail brand was established in 1935. It is the most widely read family newspaper targeting families and their lifestyles. This research emerged as a result of a sharp decline in sales volumes of the Sunday Mail paper. The company introduced sales promotional strategies in 2002 such as bridal and baby competitions for it to survive in the market. In these competitions, for one to qualify as a winner, one has to qualify in weekly competitions then move the bridal of the week competitions then move to the bridal of the month competitions and finally yearly competitions. The final winner is published in the Sunday Mail paper every week. These competitions came up so as to boost sales and to encourage the purchase of the Sunday Mail Paper.Again,it was noticed that there was a reduction in customers, so there was need for introducing sales promotional techniques. Moreover, there was a decline in the circulation of the Sunday mail paper, which has lead, the researcher to find out how effective these strategies are in retaining customers, increasing Sunday Mail circulation, readership and sales volume. 1.2 STATEMENT OF THE PROBLEM At times Sales promotions do not bring immediate positive response to an organization. This may lead to misunderstanding between the marketing and finance departments. Information on whether sales promotion with a special target on bridal competitions is

not known since no similar research has been carried out. There are several factors that may affect sales and its very difficult to come up with a conclusion. There was a sharp decline in sales volumes for Sunday Mail and it has continued to loose key customers. However, the introduction of sales promotion strategies such as bridal and baby competitions has lead to a number of customers participating in this competition. This is because Sunday Mail paper is a family paper targeting family members. 1.3 RESEARCH OBJECTIVES To assess the effectiveness of sales promotion on sales. To establish the benefits of sales promotion campaigns to the organization. To assess the effects of sales promotion on sales. To analyze and recommend how best the company can increase its sales through sales promotional campaigns like bridal competitions and baby competitions To analyse the strategies for sales promotion To determine whether the public are aware of the sales promotion.

1.4 RESEARCH QUESTIONS Major question How effective is Sales promotion strategies for Sunday Mail in retaining its customers? Sub questions How does sales promotion affect the organization? How sales promotion does contributes to an increase in sales? What is the impact of sales promotion campaigns on sales volume? What are the benefits of sales promotion to the company? Why consumers respond to sales promotion?

In what way does sales promotion help the company to develop and recommend the policies? What are the factors that influence sales promotion?

1.5 IMPORTANCE/SIGNIFICANCE OF THE STUDY TO THE COMPANY

The research findings may be used to develop sound action plans or strategies for the organization under study. Moreover, the recommendations will yield expected benefits to the organization if implemented and companies in similar situations can also adopt the recommended situations to Sales promotion. TO THE UNIVERSITY

The document can be used as a source of secondary data for future studies by both the university and the stakeholders. It will help to ensure that any interested parties in the Faculty of Commerce at the university produce competent students in the aspect of marketing research, which is vital in this modern world business environment. In addition the research is going to bridge the gap between the aspects of theory (supplied by the institution) and the aspect of practice (gained from the company) during the course of the research. TO THE RESEARCHER

This will enhance and improve the marketing skills and knowledge of the researcher and also adds academic credits. 1.6 ASSUMPTIONS OF THE STUDY The researcher assumed that: Sales promotion is the only promotional tool used by Zimpapers.

The respondents will cooperate by supplying information, and there is sales promotion in place. Sunday Mail is the only product of Zimpapers. Bridal and baby competitions are the only campaigns used by Sunday Mail. Questionnaires and interviews are the only data collection tools. Harare CBD is the only Zimpapers sphere of influence. That the exercise has been done in good faith and it was assumed that the information obtained was accurate That the views obtained from the sample were representatives of the other customer who did not partake in the exercise

1.7 SCOPE/DELIMITATION OF STUDY The research was confined to Zimpapers Harare branch targeting Sunday mail brand. Data for primary research was obtained from the managers, non managerial employees, and customers and also secondary data was obtained from sales records. 1.8 LIMITATIONS TO THE STUDY Access to other or some documents was difficult due to privacy and confidential. The sample used was not be a true representative of all the other companies in the country and companies in the industrial market are different in the way they approach Sales promotion resulting in different strategies being used by different companies 1.9 DEFINITION OF TERMS The researcher defines the following terms, Promotion Sales promotion Sales Effectiveness

According to (Kotler, 2004) promotion stands for activities that communicate the merits of the products and persuade the customer to buy it. According to (Needham and Dransfield, 1991) sales promotion describes a category of techniques, which are designed to encourage customers to make a purchase. Sales promotion can also be described as a function seeking to achieve given objectives by adding the intrinsic tangible value to products (J.N Chivandikwa, 2002). 1.10 ORGANISATION OF THE STUDY The researcher submitted the research proposal for approval by the supervisor to start chapter one of the project. The proposal details what was going to be in the research project. Chapter one reveals introduction, background of the study, statement of the problem and research objectives among others. Related literature was reviewed in chapter two, research methodology in chapter three where instruments used were discussed. Data presentation will be done in form of tables, charts and line graphs. 1.11 CHAPTER SUMMARY In this chapter, background to the study, statement of the problem, research objectives and questions to be answered were given. The chapter also gave the delimitations, assumptions and limitations of the study. The next chapter will look at literature review.

CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION This chapter is set to fully explain the concept of sales promotion. It will give the definitions of sales promotion, and is going to cover methods of sales promotion, nature and scope of sales promotion, strategies, and objectives, how sales promotion affects sales, theories, stages of planning the strategy, factors influencing sales promotion strategy, benefits and limitations as well as measuring the effectiveness of sales promotion. A number of studies are referred to, to establish the importance and viability of the research. 2.1 PURPOSE OF LITERATURE REVIEW Acts as a foundation to the researcher. Gives some insight into the topic. Helps to expose approaches to the research by coming out with suggestions that have already been carried out. Limits the research questions and defines concepts of the study. Helps to learn which methodologies have proved useful.

2.2 RELATED LITERATURE 2.2.1 NATURE AND SCOPE OF SALES PROMOTION In the early sixties, when the marketing discipline was still evolving, sales promotion was perceived as being a leftover activity. In other words, it was held that if there was anything (in the promotion budget) leftover after advertising, personal selling and public relations activities had been planned, this could be used for sales promotion. For

example sales promotion was defined by Luick Ziegler (1968) as those activities which enhance and support mass and personal selling and which help complete and /or coordinate the entire promotional mix and make the marketing mix more effective. Sales promotion is seen here to be an ancillary element of the marketing communication strategy less important that advertising or personal selling. That is no longer the case today. Sales promotion is an equivalent and complementary element of the integrated marketing communication (IMC) strategy. Although estimates vary significantly from country to country, in April 2002 Promo Magazine estimated that marketers in the U.S.A spent between 60 and 75% of their promotional budgets on sales promotion, with the remainder being allocated to media advertising. It appears, however, that the estimate excludes personal selling from the promotional budget. According to Belch and Belch (2004), the growing power of retailers, declining brand loyalty, increased promotional sensitivity, brand proliferation, fragmentation of the consumer market the short term focus of many marketers, increased accountability (on the part of brand managers), competition and clutter have been the main factors that have led to the increase in the importance of sales promotion and the shift in marketing expenditure from media advertising to consumer and trade promotions. 2.2.2 DEFINITIONS OF SALES PROMOTION According to O'Shaughnessy (1982), Sales promotion is the name given to a collection of incentives used periodically to stimulate sales. He added that such incentives are consumer promotions when directed specifically at the consumer or trade promotions when the inducement is to channel intermediaries like retailers to stock or push the firms brand. More than any other element of the promotional mix, sales promotion is about action. It is about to stimulating customers to buy a product. It is not designed to be informative a role which advertising is much better suited to. Kotler (1994) defines sales promotion as short term incentives to encourage trial or purchase of a product or service. He added that sales promotion consists of a diverse 7

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. www.knowthis.com suggests that sales promotion describes promotional methods using special short term techniques to persuade members of a target market to respond or undertake certain activity. Sales promotion are used by a wide range of organizations in both the consumer and business markets, though the frequency and spending levels are much greater for consumer products marketers. One estimate by the Promotion Marketing Association suggests that in the United States alone spending on sales promotion exceeds that of advertising. Chivandikwa (2002) defines sales promotion as short term incentives to encourage purchase, introduce new products, boost sales of products, challenge competition and to communicate with customers as an alternative to media advertising. He adds that it can be described as a function seeking to achieve given objectives by adding the intrinsic tangible value to products. He further postulates that sales promotions, like all communication activities, should be well-designed, budgeted, protested and implemented and results should be evaluated. Haugh (1983) defines sales promotion as a direct inducement that offers 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. Sales promotion has also been described in somewhat here general terms, for example Rossiter and Percy (1987 says, promotion (sales promotion) consists of a repertoire of techniques designed to move sales forward more rapidly than would otherwise occur. Kotler (1988) says, sales promotion consists of a diverse collection of incentives tools, mostly short term, designed to stimulate quicker and /or greater purchase of a particular product by consumers or the trade. . Kotler (2002) argues that companies use sales promotion tools to draw a stronger and quicker buyer response. It can be used for short run effects such as to dramatize product 8

offers and boost sagging sales. Companies are always searching for ways to gain efficiency by substituting one promotional tool for another. From another perspective Sales promotion is a short term incentives to encourage the purchase or sale of a product or service. It includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase (www.davedolak.com). Bennett (1988) argues that sales promotion are media and non media marketing pressure applied for a pre-determined limited period of time at the level of consumer, retailer or wholesaler in order to stimulate trial, increase consumer demand or improve product availability. From another perspective, Etzel et al. (2004) define sales promotion as demand stimulating devices designed to supplement advertising and facilitate personal selling. Sales promotion is believed to be one of the most powerful advertising mediums today, and growing in favour of the marketing personnel everywhere. Its ability to target the individual, motivate him, and assist in building relationships that lead to buying transactions is unmatched by other mediums (www.knowthis.com). Jewel (1995) suggests that sales promotion refers to all forms of promotion other than either advertising or personal selling. It is a form of one way communication and is employed in a supportive role to the other techniques of communicating with customers. It is a method of developing the product or brand image, enhancing the promotional activities undertaken by distributors, reinforcing advertising and selling messages, aiding recognition, attracting attention and encouraging consumers to try the product. Needham and Dransfield (1991) argues that sales promotion describes a category of techniques which are designed to encourage customers to make a purchase. They usually complement advertising, personal selling, and publicity and might include point of sale materials, competitions, demonstrations and exhibitions. They move on to point out that the essential feature of sales promotion is that it is a short term inducement to 9

encourage customers to react quickly, whereas advertising is a much more long term communication process involving the building of a brand image. 2.2.3 METHODS /TYPES OF SALES PROMOTION Sales promotion can be classified based on the primary target audience to whom the promotion is directed. These include consumer market directed, trade market directed and business to business market directed (www.knowthis.com). Consumer market directed Possibly the most well-known methods of sales promotion are those intended to appeal to the final consumer. Trade market directed Marketers use sales promotions to target all customers including partners within their channel of distribution. Trade promotions are initially used to entice channel members to carry a marketers products and, once products are stocked marketers utilize promotions to strengthen the channel relationship. Business to business market directed A small, but important, subset of sales promotions are targeted to the business to business market. Chivandikwa (2002) postulates that sales promotion tools depend on the market type, sales promotion objectives, and level of competition, costs and effectiveness of each tool. Consumer tools, Trade tools and Sales contests are the three tools suggested by him. According to him consumer tools include samples; coupons cash refunds, price packs, premiums, patronage rewards and contests. Trade tools include discounts, allowances and free goods whereas sales contests include trips, cash prices. He also argues that some marketing experts think of sales promotion as a tool of breaking down brand loyalty. 10

According to www.tutor2u.net the main methods of sales promotion among others include money off coupons, discount vouchers, free gifts, point of sale materials, loyalty cards, competitions and prices, and money refunds. Money off coupons Customers receive coupons, or cut coupons out of newspapers or a product packaging that enables them to buy the product next time at a reduced price. The key objective with coupon promotion is to maximize the redemption rate-this is the proportion of customers actually using the coupon. One problem with the coupon is that they may simply encourage customers to buy what they would have bought anyway. Competitions Buying the product will allow the customer to take part in a chance to win a price (e.g. coco cola ring pulls). These may interest a consumer particularly if there is an attractive prize for example scratch cards, free draws and bingo cards are often popular. Free gifts or trial packs Are either given to customers or sold to them at low prices to encourage them to try the product with the hope that it might stimulate them to make a purchase. The customer gets something in addition to the main purchase or simply its just a free product when buying another product. Loyalty cards For example Nectar and Air Miles, where customers earn paints for buying certain goods or shopping at certain retailers that can later be exchanged for money, goods or other offers. Loyalty cards can offset the discounts they offer by making more sales and persuading the customer to come back. They also provide information about shopping habits of customers where do they shop, when and what do they buy? Point of sale materials 11

For example posters, display stands are ways of presenting the product in its best way or show the customer that the product is there. Attractive, informative and well positioned point of sale displays are, therefore very important part of the sales promotional activity in retail outlets. According to Needham and Dransfield point of sale displays are designed to push products to consumers from the location they are sold. Effective displays attract a customers attention and encourages them to approach and inspect the product before making a decision to buy. Money refunds Here a customer receives a money refund after submitting a proof of purchase to the manufacturer. 2.2.4 FACTORS INFLUENCING SALES PROMOTION STRATEGY The specific type of sales promotion activity chosen will depend on a number of factors and, in particular, on the sales promotion objective being pursued (Connett: 1993). Product related factors Product type Generally speaking, certain types of products lend themselves to sales promotion more than others. In the main, sales promotion is frequently used by marketers of Fast Moving Consumer Goods (FMCG) such as groceries and personal car products. However, it does not mean that other types of products, such as consumer durables are excluded. Price Depending on the price elasticity of a particular type of product, sales promotion will be more effective or less effective. Sales promotion will generally be more effective with products that have a very elastic demand curve (a reduction in price will lead to 12

increase sales) and less effective with products that have a very inelastic demand curve. For example, consumers are unlikely to buy more salt when the price of salt is reduced. Brand image Marketers can basically pursue two types of brand image strategies, although it must be recognized that there are many variations between these two extremes. The first is an exclusive brand image and the other is a value oriented brand image. A greater focus on sales promotion would certainly harm an exclusive brands image while it may enhance that of a value oriented brand. Products stage in its life cycle It will readily be appreciated that the promotional strategy used by a marketer will vary significantly in the different stages of the product life cycle. The objectives in the introduction stage are to introduce the product to the market and generate initial interest and product trial, whereas the objectives in the maturity stage are to remind consumers of the product and to maintain market share. Consumer related factors Characteristics of the target market It should be clear that the profile of the individuals that make up the target market will be a significant factor in developing the sales promotion strategy. If the target market selected is made up of, say, young people between the ages of 16 and 24, the type of sales promotion strategy used will be very different from that used for a target market of senior citizens over 60. Type of buying decision involved If a consumer is buying a product that is regularly and frequently used, for instance toothpaste, the type of buying behaviour is most probably routinised response. On the other hand, if the consumer is buying a product that is purchased very infrequently, for 13

instance family car, then the consumer will most probably engage in what is called extensive problem solving. Involvement level In general, therefore, sales promotion is best suited to low involvement products that are purchased frequently. Psychological risk level High involvement products and the associated purchasing decisions imply that the will focus on minimizing their exposure to economic, psychological and performance risk. Organization related factors Overall marketing communication strategy Since sales promotion is but one of the six elements of the marketing communication mix available to a marketer, it must be used in strict compliance with the companys overall corporate and marketing communication strategy. Resource available Resources, both human and financial, are, of course, essential to conduct business. Situation related factors Prominence of the company in its environment Depending on how prominent a company is in its environment it may well have to indulge in a certain amount of sales promotion activities simply because its target market expects it to. On the other hand, if a company wants to maintain a low profile it would certainly not participate in any sales promotion activities since they would automatically attract the publics attention. Competitors activities 14

Whether marketers like it or not, in certain situations they have no alternative but to respond to the actions of the competitors. 2.2.5 PLANNING THE SALES PROMOTION STRATEGY According to Connett (1993), there are seven stages needed when planning sales promotion strategy. Firstly, the marketer has to define the target audience. The sales promotion target audience is the group at whom a particular sales promotion is directed, for example, sales promotion can be directed to the marketers own sales people, to the intermediaries and their sales forces and consumers. After defining the target audience, the marketer has to define the objectives. In this case the marketer has to set the objectives suitable for that particular target audience. From there, the marketer has to set the budget. The sales promotion budget is part of the overall marketing communication budget. The fourth stage is to develop the strategy. A number of decisions are necessary to develop an effective sales promotion strategy. After developing the strategy, the marketer has to select the methods to be used for that strategy. The sixth stage is to implement the programmes. In order to implement any marketing programme effectively a detailed plan of action is necessary. The last stage as suggested by Connett is to evaluate the effectiveness. The approach most used in evaluating sales promotion effectiveness involves measuring sales before, during and after the sales promotion event or programme. 2.2.6 STRATEGIES OF SALES PROMOTION According to Mullin and Cummins (2008) any business activity benefits from being planned in a strategic manner. Strategy, as John Kay points out, is not another word for important. It is about identifying the firms distinctive capabilities and translating them into competitive advantage in the relationship the firm has with its customers and suppliers. It is about what you and only you do best.

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They further argue that sales promotion is strategic if it enhances the firms distinctive capabilities, increases its competitive advantages and builds its long term relationships. Www.davedolak.com argues that there are three types of sales promotion strategies. These are push, pull, or a combination of the two. A push strategy involves convincing trade intermediary channel members to push the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts. This means that the company promotes the product through a reseller who in turn promotes it to yet another reseller or final consumer. Typically, tactics employed in push strategy are: allowances, buy back guarantees, free trials, contests, discounts, displays and premiums. A pull strategy attempts to get consumers to pull the product from the manufacturer through the marketing channel. The company focuses its marketing communications efforts on consumers in the hope that stimulates interest and demand for the product at the end user level. Typically, tactics employed in pull strategy are: samples, coupons, cash refunds and rebates, premiums, contests, games, point of purchase displays, patronage rewards. Car dealers often provide a good for example of a combination strategy. If you pay attention to car dealers advertising, you will often hear them speak of cash-back offers and dealer incentives. According to www.tutor 2u.net sales promotion can be directed at: the ultimate consumer (a pull strategy) encouraging purchase, the distribution channel (a push strategy) encouraging the channels to stock the product. This is usually known as selling into trade. 2.2.7 OBJECTIVES /GOALS OF SALES PROMOTION An organization has to decide upon how to achieve its objectives. To do so it must formulate a strategy to use. A common mnemonic used to describe how to persuade a customer to make a purchase decision is A.I.D.A model. A- Attention, I- Interest, DDesire and A- Action.

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According to www.knowthis.com sales promotion is a tool used to achieve most of the five major promotional objectives. These are: Building product awareness Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction. Sales promotion can act as an effective customer information gathering tool (that is sales lead generation), which can then be used as part of follow-up marketing efforts. Creating interest Marketers find that sales promotions are very effective with creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion. Providing information Generally, sales promotion techniques are designed to move consumers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. Stimulating demand Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost of ownership to the customer (for example price reduction), can be employed to stimulate sales. Reinforcing the brand Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty. Many companies including airlines and retail stores, reward good or preferred customers with special promotions, such as email special deals and surprise price reductions at the cash register.

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According to Lancaster and Jobber (1994) objectives of sales promotional activities are the encouragement of repeat purchases, building of long-term customer loyalty, encouragement of consumers to visit a particular sales outlet, building up of retail stock levels and widening or increasing of distribution to a particular product or brand. Additionally, O'Shaughnessy (1982) argues that the superordinate goal of sales promotion is to trigger purchase or start the process leading to purchase. The competitive tasks are to attract trial, induce brand switching, retain customer or increase usage in off-peak or off season periods although they may be couched in other terms , for example to get rid of old stock or to achieve a better geographical distribution, or more adequate stock levels, or better point of sale displays. He further suggests that once the company has chosen the competitive goal, the company need to think about why target consumers hesitate to try the product or what are the difficulties in retaining current customers. In general terms, sampling is best for attracting and inducing brand, switching to a new product. Moreover, price deals are good for attracting increased usage during off-peak periods, although they may have difficulty retaining it unless supportive advertising justifies the price deal and reinforces perceptions of benefits. Premiums can also induce increased usage in off-peak periods. According to Needham and Dransfield (1991) sales promotions can serve different purposes for example competitions, vouchers and trading stamps would be designed to build customer loyalty and perhaps increase the volume purchased by existing customers. Product sampling is a strategy which is often used to introduce new products into the market place. They point out that many sales promotions are undertaken in response to the activities of competitors to ensure that an organization remains competitive. Sales promotions to the end user require a careful creative approach as repeated use, or a tasteless promotion, might damage a brand.

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www.davedolak.com summaries that consumer promotion objectives are to entice consumers to try a new product, lure customers away from competitors products, get consumers to load up on a mature product, hold and reward loyal customers, and build consumer relationships. However, trade promotion objectives are to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a brand in advertising and or push a brand to final consumers. 2.2.8 RAPID GROWTH OF SALES PROMOTION Several factors contributed to the rapid growth of sales promotion, particularly in consumer markets (Kotler: 1994). These are internal and external factors. Internal factors Sales promotion is now more accepted by top management as an effective sales tool, more production managers are qualified to use sales promotion tool and product managers are under great pressure to increase their current sales. External factors The number of brands has increased, competitors use promotions frequently, many brands are parity, consumers are more deal oriented, the trade has demanded more deals from manufacturers and advertising efficiency has declined because of rising costs, media dutter and legal restrains. 2.2.9 BENEFITS OF SALES PROMOTION Kottler (2002) points out that although sales promotion tools coupons, contests premiums and the like are highly diverse, they offer three distinctive benefits. Communication the gain attains and usually provides information that may lead the consumer to the product. Incentive they incorporate some concession, inducement, or contribution that gives value to the consumer. Invitation they include a distinct invitation to engage in the transaction now. According to Chivandikwa (2002) sales promotion has got certain advantages. Sales promotion bring the product closer to the customer, encourage stocking by retailer as 19

retailer of newly created interest in the product that might have lost favour, draw attention to new or modified products, encourage customers to make first purchase, especially brand switchers, can induce impulse buying and creates good will in the company. O'Shaughnessy argues that the key role allotted to sales promotion is that of triggering the sale or the process of a sale. Ray (1982) quoted in this book also argues that sales promotion combines the sales closing advantages of personal selling with the mass reach of advertising at a low cost per customer target. Beem and Shaffer (1981) argue that sales promotions (or promotional inducements, as they term them) increase marketing productivity in three ways: Complementing or supplementing the marketers persuasive communications; Reshaping the benefits of the basic offer to meet competitive pressures; Controlling to some degree the timing and manner of consumer actions.

They, too, regard sales promotions as a product to action by creating an urgency to act, although they argue that, if the basic product is not wanted, promotional inducements will not work. In general terms, therefore, there must be a passive want for the product among the target population not presently buying or stocking firms brand. They move on to say sales promotions are the occasioning events that may be needed actually to move some customers into action. If we know there is a want for the product and know that the factors inhibiting purchase are factors that can be overcome by a material incentive, we still need to consider what the effects of a promotion will be long term, since some promotions may secure sales but not additional customers. www.edul.edu/alex suggests some sales promotion opportunities. These opportunities involve increase in sales by providing extra incentive to purchase, attract customer traffic and maintain brand or company loyalty, reminder functions for instance calendars, T-shirts, impulse purchases increased by displays, contests generate excitement especially with high pay offs.

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According to Jewel (1995) functions of consumer promotions are; to draw attention to product, to encourage sales, to increase usage rate, to target a particular segment and to expand off-season sales. Additionally, he suggests that the function of trade promotions among others is to develop good will. 2.2.10 LIMITATIONS OF SALES PROMOTION www.edul.edu/alex suggests three limitations of sales promotion. These are; consumers may just wait for the incentives, may diminish image of the firm, represent decline in the product quality and reduces profit margins, customers may stock up during the promotion. According to Chivandikwa (2002) sales promotion has some disadvantages. Sales promotions encourage customers to be cherry pickers that only buy products with offers thereby leading to the erosion of brand images. Again, they do not build long term preference and loyalty and can demean product images, if used carelessly. Price deals do not buy loyalty; they merely rent allegiance for a period. Constant price deals tarnish the quality image of a product which may eventually be bought only when the price discounted. O'Shaughnessy (1982) says coupons, though, do have their problems. To produce the same sales increase, the coupon value must be greater than any corresponding price reduction; the dealer may abuse the system by accepting coupons as payment on other products while he needs to be paid extra for handling the coupons and it is difficult to predict the redemption rate. 2.2.11 HOW SALES PROMOTION AFFECTS SALES Connet (1993) argues that sales promotion affects sales in four ways. Brand switching There is a distinction between aggressive and defensive brand switching. Aggressive brand switching occurs when the promotion induces the consumer to buy a different brand from the brand bought previously. However, defensive brand switching occurs 21

when a promotion for a brand A induces the consumer who bought brand A previously to purchase brand A again. Repeat purchasing There are two types repeat purchase effects associated with sales promotion. The first occurs simply because any purchase of the brand has implications beyond the immediate purchase decision. The consumer forms a habit towards purchasing the brand, sustains the habit, and learns about the performance of the brand. He further argues that because sales promotion can induce purchases that would not otherwise occur, this effect becomes very relevant in the study of sales promotion. Blattberg and Neslin (1990) call it the purchase effect. The second repeat purchase effect involves a change in purchase probability as a result of purchasing the brand on promotion. He argues that purchasing the brand on promotion may, for example, weaken the consumers attitude towards the brand, which in turn may reduce the probability of a repeat purchase. This is known as the promotional usage effect and illustrates just how important it is for a marketer to have a balanced promotional strategy. Frequent and inappropriate sales promotion programmes could have an adverse effect on sales. Purchase acceleration When consumers are induced to buy in greater quantities or more frequently than they would normally buy, it is referred to as purchase acceleration. It will immediately become apparent that while this may produce more sales in the short term, it is possible that sales promotion programmes aimed at purchase acceleration may simply cannibalise future sales thus result in no net gain. Category expansion This is strongly related to the concept of increasing primary demand, that is, with demand for the general product category, the basic objective of category expansion is to shift the demand curve to the right. 2.2.12 WHY CONSUMERS RESPOND TO SALES PROMOTION

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There are certain theories put forward by Connett (1993). Classical conditioning Perhaps one of the best known examples of classical conditioning is that of Pavlovs experiments with dogs. He observed that dogs would always salivate when food was present. Pavlov then coupled a previously neutral stimulus, the ringing of a bell, with the presentation of food. Eventually, the dog would salivate whenever the bell was rung whether food was present or not. In conditioning terminology, the food serves as the unconditioned stimulus, salivation is the response and the ringing of the bell is the conditioned stimulus. Applying this concept to sales promotion, it can be said that an in store display offering some incentive to purchase the product is the conditioned stimulus, in that the consumer associates it with the brand and an incentive to purchase. The unconditioned stimulus, of course, is the special offer and the response is to purchase the product. The basic rationale of classical conditioning as it applies to sales promotion is that the consumer can be induced to form positive feeling towards a conditioned stimulus, such as the sales promotion display by associating that stimulus with an unconditioned stimulus. Operant conditioning This theory was founded by B.F Skinner, in the late 30s. The basic principle of operant conditioning is that a reinforced behaviour is more likely to persist (Blattberg and Neslin, 1990). Skinner experimented with small animals and birds, placing them in what became known as the Skinner Box. As applied to sales promotion in the marketing context, purchasing the product is the behaviour the marketer wishes to teach consumers, and a sales promotion incentive of some kind is the reinforcement provided. A good example of operant conditioning would be an in pack coupon that specifically rewards the behaviour of purchasing a product (Roths child and Gaidis, 1981). Attribution theory The basic concept of this theory is that it describes how consumers explain the cause of an event. According to Mizerski et al (1979), three types of attribution theories can be 23

distinguished: self perception, object perception and person perception. These differ in terms of the object about which the attribution is being made. Price perception theories Webers law addresses the question of how much of a stimulus change is necessary in order for it to be noticed. It is sometimes referred to as the just noticeable difference concept. This law postitulates that this just noticeable difference is proportional to the absolute magnitude of the original stimulus. Two important concepts emerge from Webers law. First, price cuts that are less than the just noticeable difference may be completely ineffective and, second, a base price or reference price is important for determining the effectiveness of a price reduction. Adaptation level theory According to Helson (1964), this theory proposes that perceptions of new stimuli are formed relative to a standard or adaptation level. The adaptation level is determined by previous and current stimuli to which a person has been exposed and thus changes overtime as a person is exposed to new stimuli. The adaptation level for judging the price of a particular item is called the reference price. In developing an effective sales programme, marketers must appreciate that a price promotion is compared by consumers to a perceived benchmark a reference price. Consumer decision making process No discussions of the reasons why consumers respond to sales promotions would be complete without reference to the consumer decision making process. The very first step in the consumer decision making process is problem recognition. It is in this area that sales promotion is very effective since a promotion such as a special display can trigger problem recognition. 2.2.13 MEASURING THE EFFECTIVENESS OF SALES PROMOTION Measuring the effectiveness of sales promotion depends on what objectives or tasks set. For instance, the objective of informing customers, its success can be measured by the 24

number of requests for further information, testing customer awareness and level of sales. According to Mullin and Cummins (2008), Sales promotion is one of the marketers most tested and effective tools. They further argue that sales promotion details the tried and tested methods that can give a business the competitive edge over other companies, including off-shelf offers, joint promotions, price promotions, premium promotion and prize promotions. 2.2.13.1 Using Sales Promotion to increase sales According to Jewel (1995) an intensive promotional campaign will increase sales and perhaps, market share. When promotion is withdrawn it is likely that sales will fall of but, it is hoped, not back to the prepromotion level. Additionally, though most promotions such as free samples will clearly lead an immediate increase in sales, on the whole sales promotions are a short term measure and have little effect on brand loyalty over a longer period (Needham and Dransfield (1991). Beem and Shaffer (1981) add that a firm with a high market share will therefore be less tempted to use sales promotion than a firm with a very small share of the market. The cost to a seller involves both the costs of the sales promotion and the losses from being unable to confine the promotion to prospective customers. 2.2.13.2 Using Sales Promotion for retaliatory response Finally, Beem and Shaffer point out that competitors are least likely to retaliate if the promoter has only a small market share; if promoter is off-season or supported by only nominal advertising; if it expands primary demand or is perceived as an action of a desperate competitor. On the other hand, retaliatory response is apt to be high if the promoter already has a high market share; if rivals have high fixed costs and perishable goods, in circumstances where the promotion appears to be working. 2.2.13.3 Using Sales Promotion to build product awareness Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early 25

stages of new product introduction. Sales promotion can act as an effective customer information gathering tool (that is sales lead generation), which can then be used as part of follow-up marketing efforts (www.knowthis.com). 2.2.13.4 Using Sales Promotion to create interest Marketers find that sales promotions are very effective with creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion. 2.2.13.5 Using Sales Promotion to stimulate demand Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost of ownership to the customer (for example price reduction), can be employed to stimulate sales. 2.2.13.6 Using Sales Promotion to provide information Generally, sales promotion techniques are designed to move consumers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. 2.2.13.7 Using Sales Promotion to reinforce the brand Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty. Many companies including airlines and retail stores, reward good or preferred customers with special promotions, such as email special deals and surprise price reductions at the cash register. 2.2.14 PREVIOUS RESEARCH FINDINGS A case study of USA country

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Although estimates vary significantly from country to country, in April 2002, Promo magazine estimated that marketers in the U.S.A spent between 60 and 75% of their promotional budgets on sales promotion, with the remainder being allocated to media advertising. It appears, however that the estimate excludes personal selling from the promotional budget ;( www.promo magazine.com). 2.2.15 CHAPTER SUMMARY The various literature reviewed gave an insight into the topic and help to identify the key issues that need to be explored. Literature review plays a crucial role in determining both feasibility and the creditability of the research. The following chapter looks at the research methodology.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.0 INTRODUCTION This chapter focuses on the research methodology, research designs, research instruments that have been used to collect data. Some methodological aspects such as Research design, data collection instruments and procedures, data presentation and analysis techniques and summary will be discussed in this chapter.

3.1 RESEARCH METHODOLOGY Methodology refers to the theoretical analysis of the methods appropriate to a field of study or to the body of methods and principles particular to a branch of knowledge. There are two main categories of research methods namely qualitative and quantitative methods. The researcher used both qualitative and quantitative research methods to carry out the study. According to (Lancaster: 2005) qualitative data is data that is non numeric, which cannot be mathematically, statistically, or both ways interpreted or analyzed. He also defines quantitative data as data in the form of numbers which can be interpreted mathematically, statistically or both ways. An example of qualitative research method used by the research was interviews and questionnaires were used as an example of quantitative research methods. Kato (2002) argues that greater insight can often be obtained when collecting data under a qualitative research framework through such methods as observation and interviews thereby facilitating the understanding of the phenomenon from various aspects.

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3.2 RESEARCH DESIGN The survey research design was used in order to show how the researcher; Identifies the appropriate data collection methods. Record findings or observations. Makes an attempt to show accuracy of observations and interpretations.

Heppner et al. (1992) notes that, A research design is a plan or structure for an investigation or a list of specifications and procedures for conducting a research project. It helps the researcher to reduce error and also in obtaining empirical evidence on isolated variables of interest. The role of the research design is emphasized by Oppenham (1998): who states that, the design must aim at precision, logic, tightness and efficient use of resources. A poorly designed survey will fail to provide accurate answers to the questions under investigation. A research design can be classified in various ways, for example exploratory, descriptive or causal. In general terms it is a general plan of one goes 3.2.1 Descriptive Survey Research design It is a research for which the purpose is to produce an accurate representation of persons, events or situations (Leedy 1980). Justification for using descriptive Survey Research design This method is essentially used for fact finding and describing a phenomenon. This is what the researcher needed to use to find about research objectives and questions, which included finding the impact of Sales Promotion strategies used by Sunday Mail.

3.3 SOURCES OF DATA

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There are two types of data namely primary and secondary data. 3.3.1 Primary data Primary data is data collected for specific purpose at hand, (Kotler, 1999). The researcher is going to collect primary data from management and customers. 3.3.1.1 Justification for using primary data The data obtained was specifically for the purpose of the research project. This means that the data was more relevant to the project at hand. Primary data offers greater control over data accuracy and it was valid and reliable. 3.3.1.2 Limitations Data collection was time consuming and more expensive as it requires a lot of resources like money and questionnaires. 3.3.2 Secondary data Secondary data on the other hand is data, which has been collected at earlier date and for some specific purpose (Carswell: 1995), this data type will be collected from published journals and Internet. According to (Aaker et al: 2004), secondary data are data that were collected by persons or agencies for purposes other than solving the problem at hand. They are one of the cheapest and easiest means of access to information. Secondary data will be collected from sales records, knowledge and opinions of staff and press. However, these secondary sources will be complemented more by primary sources such as questionnaires and interviews. 3.3.2.1 Justification of using secondary data It was cheap; the researcher simply had to go through the company records. It was convenient as it does not require any third party.

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In some cases secondary data can be more accurate than primary data. For example, if a company wants information on the sales, profits of other companies, it can get more reliable and accurate information from government released sources than from the companies themselves.

Secondary data was permanent and the sources were always available.

3.3.2.2 Limitations Access to some data was difficult due to privacy. The researcher had to select the suitable material from the present data because some of the data was irrelevant. The researcher had to choose the quality of the data. The initial purpose of the data affects how it is presented.

3.3.3 DATA COLLECTION TECHNIQUES The standard questionnaire has been used as a research instrument This is a technique of data collection in which each person is asked to respond to the same set of questions in a predetermined order (de Vans, 2002). Questionnaires were delivered by hand to the staff, the management and customers so that they complete them. Also face to face interview was used. 3.3.4 DEVELOPMENT OF INSTRUMENTS During the development of research instruments, some ethical consideration were made so that they will be mutual understanding between the researcher and the respondents. The information gathered was to be kept private and confidential. The participants were made aware of that before answering the questions. Again, good research is possible if there is mutual respect between researcher and the participant.

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Some areas of human behaviour may be beyond the reach of observation and therefore ethical guidelines are necessary to clarify the conditions under which the research is acceptable. There has been an increase in legal action by participants against researchers for alleged misconducts by infringing the rights and dignity of participants. Thus the researcher has to first consider this before conducting the research. 3.3.5 VALIDITY AND RELIABILITY OF THE INSTRUMENTS Validity is how sound or effective a measuring instrument is or the degree to which an instrument measures what it purports to measure. Reliability is the extent to which an instrument yields the same results on repeated trials. The reliability and validity of the research instruments were discussed under the research instruments (questionnaire and interview). To test for reliability a pilot study was carried out. This was done by extracting questions and self administering to respondents. And there was where questions in such a way that they would test for bias by asking a question differently to give the same answer. Some amendments were then made for the provision of the research. 3.3.6 RESEARCH INSTRUMENTS Questionnaires (both closed and open ended questions) Personal interviews

3.3.6.1 Justification of using questionnaires They permitted considerable time and well thought responses.

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The questionnaire was used so as to maintain uniformity and flow of information. They have proved to be cheap to put together. Data was easy to interpret and analyse The use of questionnaires reduced biasing error and offered greater anonymity. Another advantage was that they allowed respondents to express their views without the influence from the researcher. Questionnaires ensure greater comparability of response. Questionnaires enabled the researcher to collect large amounts of data hence the findings were easy to generalize to the population.

However, the results of questionnaires were limited since they provided numerical descriptions rather than detailed data. 3.3.6.2 Justification for using structured questions Structured questions (close ended) were accompanied with possible responses and straight to the point. This ensured that respondents did not get bored from answering the questions. As a result the questionnaire administration was successful. 3.3.6.3 Justification for using open-ended questions. Open-ended (unstructured) questions were designed in such a way as to leave the respondents to answer in any way. The respondents objectively gave their opinions without being restricted. More information was obtained.

3.3.7 Personal interviews In order to compliment the research from questionnaires, the researcher, carried out interviews to management by means of personal interviews. An interview is a purposeful discussion between two or more people Trochim (2000). He adds that interviews are categorized into structured, semi structured and unstructured. 33

Saunders et al (2002) on the other hand define an interview as a data collection technique in which the interviewer physically meets the respondent, read the set of questions in a predetermined order and record the responses to each of the questions. In unstructured interviews, the interview does not make use of predetermined set of questions, the interviewer talks freely about events in relation to the topic. Interviewees are encouraged to speak openly and frankly and to give as much detail as possible David and Sulton( 2004). The advantage is that no restrictions are placed on questions and are flexible hence the researcher can investigate underlying motives. However, respondents can talk about irrelevant issues and the collected data may be difficult to analyses, there can be interviewer bias and respondents may answer to please the researcher. 3.3.7.1 Justification for using personal interviews Over a face-to-face interview one can get the chance to clarify questions and ensure that interviewees fully comprehend the questions. Allow flexibility in language therefore bringing easier communication. Opportunity to persuade the respondents to provide adequate answers.

3.3.8 SAMPLING PROCEDURE 3.3.8.1 Target Population According to Du Plooy (1997) population is any defined group of aggregates of individuals, groups, organizations, objectives, social artifacts or social interactions and events. The population is any group that is subject to research interest. The researcher's target population is group customers and staff at Zimpapers.

3.3.8.2 Sample Size

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It is a subgroup or part of a large population. A sample reflects typical characteristics and the main features of a population. Not all the population will be used and the researcher therefore selected Sunday Mail, a brand for Zimpapers. The sample size was (100) consisting of seventy (70) customers and thirty (30) staff at Zimpapers. 3.3.8.2.1 Justification for the above sample The staff respondents had better understanding of the research topic, hence giving valid facts. A large sample size was chosen so that the results can be more representative and generalised. 3.3.9 SAMPLING TECHNIQUE Usually, the population is too large for the researcher to attempt to survey all of its members. A small, but carefully chosen sample can be used to represent the population. The sample reflects the characteristics of the population from which it is drawn. www.statpac.com points out that sampling methods are classified as either probability or non probability sampling. In probability sampling, each member of the population has a known non zero probability of being selected. They include random, systematic and stratified sampling methods. The researcher used both probability and non-probabilistic sampling to come up with the sample from which to source data. Non probability sampling is whereby the chance of selecting an element from the population is not known. The researcher used random sampling to select staff to give questions, judgmental and convenience sampling techniques. Both random and judgemental sampling techniques were used for customers and random sampling was used to select staff to give questionnaires as well as convenience sampling technique. 3.3.9.1 Judgmental sampling According to (Jain 1989) judgmental sampling involves selecting sample units based on the researchers personal judgment of the characteristics the sample units should have.

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3.3.9.1.1 Justification for using judgmental sampling The researcher also used judgmental sampling to select customers to visit. The researcher used judgmental sampling to choose customers which would provide the needed information. 3.3.9.1.2Convenience sampling According to www.statpac.com this method is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. 3.3.10 DATA PRESENTATION AND ANALYSIS This refers to how the findings of the research were presented. Data collected using questionnaires, interviews and secondary data was analyzed to come up with meaningful information, the research data was presented in the form of: Tables Bar graphs Pie charts Line graphs

The researcher administered all questionnaires. High standards of ethics were maintained during the fieldwork. All responses were carefully coded and edited for accuracy. 3.3.11 ANALYTICAL TECHNIQUES The researcher used both deductive and inductive techniques of analyzing data. 3.3.11.1 Inductive approach

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This is a technique, which analyses data from particular instances to general principles, from facts to theories. One starts from the observed data and develops a generalization that explains a relationship between objects observed. It condenses extensive and varied raw text data into a brief, summary format. It establishes clear links between the research objectives and the summary findings derived from the raw data and to ensure these links are both transparent and defensible. It helps in developing a model or theory about the underlying structure of experiences or processes, which are evident in the text. 3.3.11.2 Deductive approach This is a technique that analyses data from the general to the particular case, applying theory to a particular case. Using this analysis, a hypothesis can be deduced from the theory. This is the common best view of the nature of existing relationship on cases under study. It also enabled to show the relationship between theory and research. 3.3.12 CHAPTER SUMMARY This chapter focused on illustrating and explaining the methods used in collecting the needed data, the advantages and disadvantages of the using both the primary and secondary sources of data. In this chapter an explanation of how the data was collected and sorted out was clarified. The following chapter will focus on the analysis of the data and interpretation of the research results to meaningful and analytical information.

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CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0

INTRODUCTION

This chapter presents the key findings pertaining to the effectiveness of sales promotion on sales. Tables, bar charts and pie charts have been used to present the information for easy understanding and interpretation. 4.1 RESPONSE RATE

An average response rate of 79% was achieved. This is shown below. Table 1 Questionnaire Response Rate Target Population Number of Selected Population Management Employees Customers Total 5 25 70 100 Number of Questionnaire Respondent 4 15 60 79 Percentage Response 80% 60% 85,7%

The table above shows that 100 questionnaires were distributed, 70 to customers, 5 to management and twenty-five to employees. Of the hundred questionnaires distributed seventy-nine were returned and correctly filled and these will be considered for analysis. Fifteen out of hundred were not returned and six were spoilt. Thus the response rate for this research was 79% which makes the research study easy to generalize.

Table 2 Market Share and Loyalty level for Sunday Mail for the period 2000 to 2001. Year 2000 2001 Retained Customers 40% 31% 38

Market Share

75% Source: Interview Questions

54%

The table above shows that the market share declined by 21% between 2000 and 2001 and number of retained customers declined by 7.75%. Figure 1 A line graph showing the market share and the percentage of retained customers for the period 2000 to 2001.

80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 Retained Customers Market Share

Year

Source: raw data Beem and Shaffer 1981 argue that a firm with high market share will therefore be less tempted to use sales promotion than a firm with a very small market share. Again, Gruel 1997 postulates that satisfied customers are loyal. He argues that retention has huge profits in the name profitability, productivity and sales volume. Table 3 Response rate on the awareness of sales promotion by employees. Response Yes Not sure No Number 3 3 4 Percentage 30 30 40 Source: Staff Questionnaire. The table above clearly shows that 70% of the employees did not know or were not sure of the existence of sales promotion at their companies. Hence, it can be argued that workers are not give proper training on how to offer the best sales promotion techniques. Organizations must teach employees that they are service providers and emphasize their role as marketers as given by Groonrose (1996).

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Figure 2 bar chat showing the percentages of employees on the awareness of sales promotion.
80% 70% 60% 50% 40% 30% 20% 10% 0% Y es R e sp o n se No S e rie s 1

Source: raw data Table 4 Questionnaire responses on the participation of employees in strategy formulation and implementation. Responses Yes No At times Number 2 6 2 Percentage 20% 60% 20% Source: Staff Questionnaire The table above shows that 20% of the employees participate in strategy formulation and implementation. The majority are being left out. Thus, the company must involve or consult its employees to get some better ideas on how to formulate and plan the strategy. Mullin and Cummins (2008) concurs that any business activity benefits from being planned in a strategic manner. Figure 3 Bar Chat showing questionnaire responses on the participation on strategy formulation and implementation.

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70% 60% 50% 40% 30% 20% 10% 0% Yes No Response At times Series1

Source: raw data Table 5: Response to customer queries. Response Less than a 1-2 days Number Percentage day 1 5

3-6 days

More than a week 12 60

Total 20 100

2 5 10 25 Source: Customer Questionnaire

The table above shows that 60% of customer queries are solved after a week and 40% of customers said they are attended to within a week. Balridge (1997) argues that the principal issue in complaints handling is prompt and effective resolution of complaints including recovery of customer confidence therefore satisfying the customer in the long-run. Thus the company should work on reducing the time it takes to solve customer complaints. Figure 4: Pie Chart showing the responses to customer queries.

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Less than a day 1-2 days

Less than a day 3-6 days More than a week 1-2 days 3-6 days More than a week

Source: raw data Table 6: Effectiveness of sales promotion strategies in achieving company goals. Rate Very effective Effective Less effective Total Response 2 5 13 20 Percentage 10% 25% 65% 100% Source: Staff questionnaire The above table clearly shows that the majority 65% said promotion is less effective in achieving company goals. 35% said sales promotion is effective in achieving company goals. Thus, measuring the effectiveness of sales depends on what objectives set. www.knowthis.com concurs that several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction. Figure 5 Pie chart showing the effectiveness of sales promotion strategies in achieving company goals.

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Very effective, 10%

Effective, 25% Less effective, 65%

Very effective Effective Less effective

Source: raw data Table 7 Management Emphasis on sales promotion. Rate Regularly Not often Not at all Frequency 1 4 5 Percentage 10 40 50 Source: Staff questionnaire

Total 10 100

The above shows that managers at Zimpapers do not put much emphasize on sales promotion. 90% of the respondents concur that and 10% said managers emphasize. Connett (1993) argues that when planning sales promotion strategy, managers need to define the target audience, to set the budget, to develop the strategy and select the method to be used for that strategy, implement the programs and to evaluate the effectiveness that strategy. Figure 6 showing management emphasize on sales promotion.

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60% 50% 40% 30% 20% 10% 0% Regularly Not often Rate Not at all 10% 40% 50%

Series1

Source: raw data Table 8 showing the sales promotion strategies preferred by customers. Strategy Baby Bridal Other Total Number competitions of 40 competitions 15 25 5 8.3 60 100

respondents Percentage 66.7 Source: Customer questionnaire

The table above shows that the highest number of respondents, 66.7% was recorded for customers who choose baby competitions. 25% was recorded for bridal competitions and 8.3% for other strategies. Hence, in a society, people have different needs and wants and they have to choose depending on one's choice. Those with babies under the ages of 24 months have to choose baby competitions whilst those who are married and wedded, have to participate in bridal competitions and so forth. Figure 7 Pie chart showing the responses made on sales promotion preferred by customers.

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Other, 8.30%

Bridal competitions, 25%

Baby Competitions Bridal competitions Other Baby Competitions, 66.70%

Source: raw data Table 9 Do you feel sales promotion influence you to buy the Sunday Mail paper? Responses Yes No Total Number 20 5 25 Percentage 80 20 100 Source: customer questionnaire The table above shows that 80% of the customers said they are influenced to buy the Sunday Mail due to sales promotion offered by Sunday Mail. According to Beem and Shaffer (1981) sales promotions are occasional events that may be needed actually to move some customers into action. Thus, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Figure 8: Bar chart showing the responses on whether sales promotion influence customers to buy Sunday Mail.

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90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes Responses No Series1

Source:raw data Table 10 challenges faced by customers. Challenges The Sunday Mail is expensive The paper does not reach all places and it is scarce No quick response to queries No phone calls or feedback to customers Customer care is lacking Other Source: customer questionnaire

Response 2 4 8 10 20 6

The table above shows that those who said the Sunday Mail is expensive were 2, those who said the paper is limited were 4, those who said there is no quick response to queries were 8, no phone calls or feedback were 10, those who said customer care is lacking were 20 and the same said there are other challenges they are facing. Gordon (1999) asserts that customers place a lot of value on the assistance and any important information provided by the supplier. Thus, to rectify these challenges, the company must pay attention to customer queries. Figure 9 showing the challenges that customers are facing.

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O e th r C s m r c re is u to e a la k g c in N p o e c lls o o hn a r fe d a k to c s m rs ebc u to e S rie 1 e s N q ic re p n e to o u k sos qe s u rie T e p p r is lim d a d h ae ite n sa e c rc T e p p r is e p n iv h ae xes e 0 5 1 0 1 5 2 0 2 5

N m er o R p n en u b f es o d ts

Source: raw data Table 11: Effects of sales promotion on the general performance of Sunday Mail. Efforts Response Bring the product closer to customer 2 Draw attention of customers 1 Encourage customers to make first 3 purchase Induce impulse buying and create good will in the company Lead to an increase in sales volume Other Source: staff questionnaire 5 4 5

The table above shows the effects of sales promotion on the general performance of the company. Those who said it bring the product closer to the customer were 2. those who said sales promotion draw attention of customers to make a purchase were 3. those who said it induce impulse buying and creates goodwill in the company were 5, those who suggest that it leads to an increase in sales volume were 4 and they argue that they were other effects besides the stated ones. Those who said there were other effects were 5.

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Chivandikwa (2002) supports the above effects. He argues that sales promotion bring the product closer to the customer, draw attention to new or modified products and many more. Figure 10 effects of sales promotion on the general performance of the Sunday Mail.
Other Lead to an increase in sales Induce impulse buying and creates goodwill Encourage customers to make purchase Draw attention of customers Bring the product closer to the customer 0 1 2 3 4 5 6

Series1

Number of respondents

Source: raw data 4.2 CHAPTER SUMMARY Collected data was presented and analyzed in this chapter. Expectations from both customers and staff at Zimpapers were outlined. The next chapter covers summary, conclusions and recommendations of the research study.

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CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.0

INTRODUCTION

This chapter is going to focus on the summary of findings, conclusions and recommendations. 5.1SUMMARY OF FINDINGS 5.1.1 Market share and loyalty level. The objective of the study was to investigate the effectiveness of sales promotion on sales, a case of Sunday mail brand. The market share was found to have declined by 21% and the level of loyalty customers dropped to 31% in 2001(see table 2) 5.1.2 Sales promotion awareness by employees The researcher found out that the majority of its employees were not aware of the existence of sales promotion at their company. Seventy percent (70%) of the respondents did not have an understanding of what it is (see table 3) 5.1.3 Participation of employees on strategy formulation and implementation The researcher noted that management do it alone in the formulation and implementation of sales promotion strategies. Sixty percent (60%) of the respondents said they are not involved whilst forty percent (40%) of respondents said they are sometimes involved (see table 4). 5.1.4 Response to customer queries The researcher noted that sixty percent (60%) of customers are attended to after a week. (see table 5)

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5.1.5 Effectiveness of sales promotion The company is having serious problems with its sales promotion strategy. Sixty five percent (65%) of the staff said it's partly delivering the intended results. Thirty five percent (35%) said they are achieving their goals. (See table 6). 5.1.6 Management emphasis on sales promotion at Zimpapers. The researcher found out that management at Zimpapers does not put much emphasis on sales promotion strategy. This is supported by ninety percent (90%) responses. Only ten percent (10%) of the respondents said they do (see table 7) 5.1.7 Sales promotion preferred by most customers The researcher noted that most customers prefer baby competitions to bridal competitions. Of the respondents asked sixty-seven percent (67%) said baby competitions are their favourite (see table 8). 5.1.8 Do you feel sales promotion influence you to buy the Sunday mail paper? The researcher noted that eighty percent (80%) of the customers are influenced to buy the paper because of sales promotion (see table 9). 5.1.9 Challenges faced by customers. The researcher found out that customers are facing some challenges. The challenges are that there are no phone calls or feed back, customer care is lacking, no quick response to queries, the paper is expensive and is limited and many more (see table 10). 5.1.10 Effects of sales promotion on the general performance of Sunday mail. The researcher noted that sales promotion has some effects on the general performance of the company. These include draw attention of customers, encourage customers to make a purchase, lead to increase in sales volume and many more (see table 11). 5.2 CONCLUSIONS From the research findings, the following conclusions were made; Proper implementation of sales promotion lead to reduced costs for organization, increase customer loyalty and increase sales volume. Thus,

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benefits are accrued from proper implementation of sales promotion by Sunday mail. Customers place great value on problem-solving and feed back, attending to queries quickly and customization From the research findings, the researcher concludes that sales promotion was less effective in achieving the targeted goals for Sunday mail. Again, it was noticed that customers were facing a lot of challenges. There is need to ensure that these challenges are rectified so as to enhance organizational performance. Managers need to communicate with their employees on the present state of the organization, what its plans so as to raise awareness of what is happening at their company. Employee participation is very important in that decision making must not be centered only to managers but employees must be given room to talk and discuss what they think can be done to meet their goals. Poor implementation of sales promotion results in the company making losses due to increased costs incurred by the organization. 5.3 RECOMMENDATIONS

Pertaining the findings and conclusions drawn in this research study, the researcher suggests the following recommendations; The Sunday mail should involve employees in formulation and implementation of the sales promotion strategy. This helps the company to be in touch with its workers and thus build a good relation between them. The Sunday mail should also invite their customers to big events like the Sunday mail bridal show to share the excitement together and to be always in touch with their customers. This strengthens their relationship as they will feel appreciated and wanted.

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Social responsibility must be practiced by Sunday mail, for example a young writers column where stories will be submitted to the Sunday Mail. The winner is given the price or the story is published in the paper. Employees should be given more fringe benefits such as company house, company car and being paid fees for their school children. These benefits help them to work hard and not to neglect their duties. Thus motivation of workers is very vital to the organization's performance. Employees must be aware of what is taking place within their company. To raise awareness regular meetings must be held by management. The organization should emphasize more on internal marketing. It must have well motivated staff that can be trusted and be given responsibilities. To improve the effectiveness of sales promotion on sales, managers must compare with other media company like the standard in order for them to be in line with what is happening in the market. When planning sales promotion strategy, the company should identify the targeted population, define the objectives, set the budget, develop the strategy and to implement the programmes. Thus, managers must plan this strategy in a strategic manner. 5.4 SUGGESTIONS FOR FURTHER STUDY With the summary, conclusion and recommendations forwarded above, the researcher declares this research study complete. However, the research topic is left wide open to any other researcher who might have an interest in this research topic. 5.5 SUMMARY OF THE PROJECT The research project was focusing on investigating the effectiveness of sales promotion on sales. Background of the study, search objectives and assumptions were described in chapter one as well as definitions of terms. Theoretical concepts relating to the study were given in chapter two. This was where literature relevant to the research was given. 52

Research methods instruments were also discussed. Data collected from the methodology was presented in the form of tables, charts and graphs. After presentation the data was then discussed and analyzed to achieve results. Summary of findings, conclusions and recommendations were given.

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References:
Belch, G.E and Belch, M.A (2004) Advertising and promotion (6th edition).Mc Bennet; P.D (1988) Dictionary of marketing terms.American Marketing Association: Chicago. Chivandikwa,J.N(2002)Principles of Marketing,Mount pleasant:Harare Cundiff, E.W (1995) Foundations of Morden Marketing (3rd edition) Prentice Hall: Inc. David,M and Sutton,C.P.(2004) Social research.Sage publications:London. Gordon, I (1999) Relationship marketing,John willey and sons Publishers;England Jewel, B (1995) An intergrated Approach to business studies (3rd edition).Pearson Education:Essex. Kotler, P (1994) Marketing Management (8th edition).Prentice Hall International: London Kotler, P (2002) Marketing Management (10th edition).Prentice hall: London. Lancaster,C(2005)Research Butterworth:Heinemann. Lancaster, G and Jobber, D (1994) Selling and sales management (3rd edition) .Pitman Publishing: London. Mullin, R and Cummins, J (2008) Business and Economics (4th edition).Kogan page Publishers Needham, D and Dransfield,R.(1991) Marketing 2nd edition Stanlet Thornes publishers Limited:Cheltenham. O`Shaughnessy, J (1982) Competitive marketing (low priced edition).Allen and Urwin: London. Trochin, W (2000) The Research Methods Knowledge Base (2nd edition).Atomic Dag Publishing: cinannat. Internet Sources www.edu/.edu/alex www.dave dolak.com www.knowthis.com www.tutor2u.net methods in Mangement Elsvier

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APPENDICIES Appendix 1 QUESTIONNAIRE TO THE STAFF

I am a student at Bindura University doing BBS Marketing Degree. I am doing a research on the effectiveness of sales promotion on sales. You are kindly asked to complete the questions below. Any information provided shall be used for this research only and will be treated will be treated with strict confidentiality. Indicate by ticking the options where applicable 1. Are you aware of sales promotion offered by Sunday Mail? ---------------2. How effective is sales promotion in achieving company goals? a) Very effective b) Effective c) Less effective 3. Does sales promotion have an effect on the general performance of Sunday Mail brand? a) Yes b) No Justify your answer---------------------4. How often does the management emphasize on sales promotion at you company? a) Regularly b) Not often c) Not at all 5. Does sales stand as the only factor that affects you companys sales volume? ------Justify you answer----------6) Do employees participate in sales promotion strategy formulation and implementation? a) Yes 55

b) No 7) In your own view, what can be done to strengthen the use of sales promotion by your company in promoting sales? ---------------8) Is there any change from sales volume from the period you introduce sales promotion? -----------

YOUR COOPERATION IS GREATLY APPRECIATED!

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Appendix 2

QUESTIONNAIRE TO THE CUSTOMERS

I am a student at Bindura University doing BBS Marketing Degree. I am doing a research on the effectiveness of sales promotion on sales. You are kindly asked to complete the questions below. Any information provided shall be used for this research only and will be treated with strict confidentiality. Indicate by ticking the options where applicable 1. Which sales promotion strategy offered by Sunday Mail do you take part? a) Baby competitions b) Bridal competitions c) Other 2. Do you feel sales promotion influence you to buy the Sunday Mail paper? a) Yes b) No Justify your answer---------------3. Are there any challenges that you are facing? a) Yes b) No What do you think should be done to rectify them? ------------4. How do your queries or complaints solved? a) 1-2 days b) 3-6 days c) After a week

YOUR COOPERATION IS GREATLY APPRECIATED!

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Appendix 3

INTERVIEW QUESTIONS

I am a student at Bindura University doing BBS Marketing Degree. I am doing a research on the effectiveness of sales promotion on sales. You are kindly asked to allow me time to carry out an interview with you on a date that is convenient to you between 10-23 MAY 2009. 1. Is there any sales promotion strategy that you are currently offering at your company? --------------2. What was the motive behind the introduction of sales promotion? -----------3. When was it introduced? --------4. What is the reaction of customers towards your sales promotion strategy? ----5. To what extent is sales promotion effective at your company? -------6. What was the trend in business between the periods 2000 to 2001? -------

GOD BLESS YOU!

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