The Influence of Sales Promotion on Organization Performance; An Intermediaries Perspective. A Case Study of Tanzania Portland Cement Company Limited

Mbwambo, Allen Joshua (2019) The Influence of Sales Promotion on Organization Performance; An Intermediaries Perspective. A Case Study of Tanzania Portland Cement Company Limited. Masters thesis, The Open University of Tanzania.

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Abstract

This research study was intended to assess the influence of sales promotion on sales volume, the study further targeted intermediaries perspective for the same. The specific objectives of the study were to assess the effects of quantity price discount, to examine the effects of rebates, to evaluate the effects of exhibitions and to assess the effects of credit on sales volume. Theoretically, the research study was based on the push strategy, the pull strategy and the combination theory. The study was backed up by rigorous documentary review of literature related to sales promotion and organization performance. The study adopted questionnaires method for data collection, where Likert scale fifth choice questionnaires were distributed to 30 Tanzania Portland Cement Company (TPCC) distributors from different zones in Tanzania. The study found that all the promotional activities that is, quantity price discount, exhibitions, rebates and credits leads to increased product purchase quantity and sales at their shops. This is evident as majority of the respondents either agree or strongly agree that quantity price discount (83%), exhibitions (80%), credits (90%) and rebates (83%) as modes of promotions lead to an increase of sales in their shops and purchase quantity. The study concluded that sales promotional tools in question if are well implemented then sales of cement producers and intermediaries are likely to be improved. For practice purposes it is recommended that, since some promotion tools such as credits are risky and requires large capital to implement, therefore analysis needs to be made on how to reduce these risks so that the tools are implemented successful.

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