CHAPTER ONE
1.1 BACKGROUND TO
THE STUDY
The survival
of any business organization depend on a very large scale of the patronage that
it enjoy from those who consumer the product those, promotion mean to push
forward, to advance in idea in such a way to gain acceptance and approval for
it.
And also one
of the crucial components in the setting of the consumer product is promotion
which is used in pervasion and communication which could either be inform of
advertisement. Personal selling, sales promotion, as a competitor in the market
hope to influence as many consumers as a possible to choose their product over
alternative product. Sales promotion is an effective strategy in an
organization and is an important ingredient in most promotional program through
which consumers are persuade and convinced to buy a product or services and
commonly supported by sale promotion, this belief is strengthened by Porter
(1996). Whose works have attempted to spell out experimental analysis of the
theory of sales promotion in relation to consumption.
Also according
to Ray Wild (year) promotion is concerned primarily with the persuasion gained
largely at securing increasing the sales of the actual market prior to this
study, the researcher was able to observe restriction in the use of sales promotion
in consumer product effective in consumer production. This how ever shows that
the effective promotion strategies will diminish market effort. While the
presence of effective promotion strategies will improve customers satisfaction.
Importance of sales promotion at profit and close monitoring of the action of
the competitors . it is strongly believe that this research work will be
readable and useful to all manufacturing company as a whole.
1.2 STATEMENT OF THE
RESEARCH PROBLEM
Many business
organizations are facing serious problem in how to reach their predetermined
goals and objectives, due to the competition merged with our distressed and
inflationary conditions. The study is therefore to assist Nigerian
manufacturing, particularly consumer manufacturing companies and manager or
various organization to be acquainted with the secret to success in an
uncertain and competitive environment. This can be achieved by aiming at
bringing to the limelight the effectiveness of sale promotion as opposed to ancient
belief. Business organizations use sales promotion to stimulate and create
awareness on the existence of its products and services through advertising,
this is because it is viewed as a key decision variable in influencing
consumption pattern of the consumer.
1.3 OBJECTIVE OF THE
STUDY
Specifically,
this study will evaluate the effectiveness of sale promotion on consumption
behaviour of consumers using the Nigeria Bags Manufacturing Company in Ikeja as
a reference point. It shall also dwell on the relationship between sales
promotion and consumption pattern of consumer.
1.4 SIGNIFICANCE OF
THE STUDY
Based on the
series of beliefs that sales promotion does not correlate with increased
relative consumption and that changes in consumer attitude towards a product or
service is due to some factors like trial-usage idea rather than sales
promotion. While others believe that sales promotion would lead consumer from
the stage of awareness to the interest stage, hence the desire stage and
finally to purchase which is the action.
The
significance of the study is to identify and explain extent to which various
sales promotions on consumer product can influence the consumption pattern and
purchase in the part of the consumer.
1.5 SCOPE AND
LIMITATION OF THE STUDY
The research
study is limited to Nigeria Bag Manufacturing Company. This study covers the
entire organization but will be represented by only 20% of the whole
population.
This research
work is an attempt to bring to light some in effectible factor that would lead
to marketing promotional strategy with particular attention of Nigeria Bag
Manufacturing Company.
The
availability, reliability and sufficiency of data, textbook and other materials
determine in a great way the success of this research work. Also, the
cooperation of interviewed officials and other informed individuals tells much
on the success of the study.
However, time
and financial constraints as well as the non-disclosure of some of the
organization’s strategy reduced considerably the effort of the researcher. It
is notable however that the above mentioned constraint do not in any way
invalidate this research work as the researcher was able to get relevant and
needed information.
1.6 DEFINITION OF
TERMS
PROMOTION: it is define as
an exercise aimed at information persuasion and communication about goals or
services to potential consumer in a manner designed to illicit positive action.
Sale promotion can be defined
as a marketing activities outside personal selling, advertising and publicity.
It is also used as a complement way to other promotional strategies and action.
CONSUMER: Can be defined
as someone who buys and used products and services.
STRATEGY can be defined as
the means and skill of planning series of actions for achieving an aim, especially
success against an opponent.
MANUFACTURING: Can be
define as a means and process or business of producing goods in factories.
INDUSTRY: The production
of goods especially in a factories