EVALUATING THE EFFECTIVE IMPLEMENTATION OF SALES PROMOTION FOR IMPROVING SALES VOLUME –THE CASE OF ALSAM PLC

Abstract

The growing managerial importance of sales promotion has generated a great deal of research on how sales promotion affects profitability. This study assessed effective implementation of sales promotion for improving sales volume in Alsam plc. Descriptive as well as explanatory research designs were employed to achieve the objective of this research. Sixty eight employees of the surveyed company were involved in the study which attended 58% response rate. In the selection of the sample population random sampling were used. In order to get data from the target populations both questionnaire and interview were used. The questionnaire was administered to the employees, and the interviews were conducted with the experts and managers. As the result, the study realized that the company’s sales efforts are supported by favourable government support and existing laws are good and attractive for effective implementation of sales promotion. However, the study found that there is inadequate number of promotion companies, inadequate skilled manpower and played not as much of expected role of various sectors hinders the effective implementation of sales promotion. Moreover, the study revealed that legal, economic, buyer expectations, competitors’ market positions, company’s product, marketing strategy, finance availability and technology and automation have a positive and significant relationship and effect on sales volume using correlation and regression analysis. Further, there is no significant difference in effective implementation of sales promotion for improving sales volume between external and internal factors using independent testing. Thus, the study comes to conclude that legal, economic, buyer expectation, competitors’ market positions, company’s product, marketing personnel, marketing strategy, finance availability and technology and automation affect sales volume. It meant both internal and external factors support the effective implementation of sales promotion for improving sales volume. The study suggest that by understanding how the other marketing mix variables interface with the channel variable, and the implications of such, the company may coordinate all strategic components to create the synergy needed to meet customers’ needs.