ANALYSIS OF PROMOTION PRACTICE IN RELATION TO SALES PERFORMANCE OF PRIVATE PHARMACEUTICAL IMPORTERS IN ADDIS ABABA

Abstract

This study was set out to investigate the effectiveness of promotional tools on sales in the private pharmaceutical importers companies in Addis Ababa. The objectives of this study were to investigate the promotional practice used by private pharmaceutical importers companies in Addis Ababa and to determine the extent to which the promotional tools affect sales in the private pharmaceutical importers companies. The study employed quantitative and qualitative research design methods. The study population consisted of all 60 private pharmaceutical importers based in Addis, from which systematic sampling of random sampling technique was applied. Data were analyzed using descriptive statistics. The statistical package for social scientists (SPSS) for tabulation and statistical analysis were utilized. The tests involved frequency distribution, descriptive statistics, Pearson Correlation Coefficient, ANOVA and Regression. The result of the descriptive statistics indicated that commercial detailing, sampling, and continuous medical education (CME) are the three most important promotion tools in the pharmaceutical industry. They were drivers in the promotion and adoption of new products in the market. The correlation result showed that all the promotional tools factors except influential key opinion leaders (KOL) have a negative relationship with sales of pharmaceuticals products. As per the result of regression analysis promotional tools with commercial detailing, sampling, and continuous medical education (CME) are positively related with sales of pharmaceuticals products; this three promotional tools factors have a significant impact on sales of pharmaceuticals products. Based on the findings result, it is advisable that the success of promotional tools adopted should be measured to determine their level of effectiveness. These three promotional tools are very influential on prescribing practices of doctors and in some cases, they serve as key source of drug information, in addition to providing information, drug reps are also in a position where they can employ subtle influence to encourage medical practitioners to change their prescribing practices. The researcher recommends customer satisfaction and increase in sales as ways of determining the success of the strategies adopted.