Sales Promotion And Customer Patronage In The Cosmetic Industry

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5,000.00

Abstract
Sales promotion is a key marketing strategy used to attract customers and boost sales in the competitive cosmetic industry. This study examines the impact of sales promotion on customer patronage, focusing on how discounts, special offers, free samples, and loyalty programs influence consumer purchasing behavior.
The research explores various sales promotion techniques, including price discounts, buy-one-get-one-free (BOGO) deals, seasonal promotions, and influencer-driven campaigns, assessing their effectiveness in increasing brand awareness and customer retention. It also highlights challenges such as market saturation, consumer skepticism, and short-term effects of promotions on brand loyalty.
Findings suggest that well-planned sales promotions significantly increase customer patronage by encouraging trial purchases, enhancing brand visibility, and fostering customer loyalty. Additionally, promotional strategies that create a sense of urgency or exclusivity tend to generate higher consumer engagement and repeat purchases.
In conclusion, this study underscores the importance of sales promotion in driving customer patronage in the cosmetic industry. It recommends that businesses implement strategic and data-driven promotional campaigns, leverage digital marketing tools, and maintain a balance between short-term promotions and long-term brand loyalty strategies to maximize customer retention and business growth.

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CHAPTER ONE: INTRODUCTION

1.1 Background to the Study
In recent times the concept of sales promotion has received the attention of both manufacturing and services industries from all over the world. The telecommunication industry of Nigeria is not an exception from the trend. Sales promotion has grown substantially in recent years within the global and local telecommunication industries for the perceived fact that companies feel sales promotion entice and plays an important role in the consumer decision making process. There are several reasons for this dramatic growth in sales promotion (Sakara & Alhassan, 2016). First, consumers have accepted sales promotion as part of their buying decision criteria. It provides reluctant decision makers with an incentive to make choices by increasing the value offered by a particular brand. Secondly, the increasing tendency of businesses to focus on short-term results has helped stimulate growth in sales promotion, which can provide an immediate boost in sales. Product managers also tend to view sales promotion as a way to differentiate their brand from that of competitors in the short term. Thirdly, the emergence of computer technology has enabled manufacturers to get rapid feedback on the results of promotions. Redemption rates for coupons or figures on sales volume can be obtained within days. Finally, an increase in the size and power of retailers has also boosted the use of sales promotion.
Sale promotion is a way to persuade the consumer towards a specific product or service. In this study we explored the effect of sales promotion on patronage of network providers. Due to multiple network providers, marketers focused on consumer to attract toward their services. Therefore, marketers use different promotional offers and schemes to take competitive advantage. (Nashit, Abdul & Niazi, 2018).
Companies in the beauty and personal care industy in Nigeria have faced fierce rivalry. Many of these businesses have turned to sales marketing to drive sales traffic to their brands. As a result, literature on sales promotion has demonstrated that it has a substantial influence on consumer patronage. Price reductions, coupons, and extra product packs appear to have influenced consumers positively in their purchases of goods and services, but in some cases they simply do not work due to influencing factors such as the culture in which the consumer finds himself/herself, the consumer's social life, the consumer's psychological makeup, and personal considerations (Ibrahim, 2020). These elements tend to steer customers in specific directions during the decision-making process. Therefore, this study seeks to examine the effect of sales promotion on customer patronage of COSMETIC product.
1.2 Statement of the Problem
Sales promotion efforts, which include both monetary and non-monetary incentives, are critical for drawing customers' attention to her goods and services, increasing customer patronage, and overcoming competitive obstacles (George, Bamidele & Damilola, 2022).
However, strenuous rivalry among rivals in Nigeria's beauty care businesses has resulted in the use of various marketing strategies in order to become the market leader (Sakara & Alhassan, 2016). Several firms in the beauty and personal care industry use sales promotion strategies all around the world to outsmart their competitors. However, sales promotion, as excellent as it is in terms of giving numerous incentives designed to encourage quick sales and greater purchases by clients, is limited in time. Regardless of the aforementioned aspects of sales promotion, many consumers seek out other rivals due to unsatisfactory services, a desire for greater promotional incentives, and a lack of appropriate capacity to provide value to customers' demands, therefore increasing customer turn over. Kennerly and Nelly (2016) observe that beauty care firms both at home and abroad are facing challenges such as production and processing, poor amenities, purchasing and supply chain, insufficient promotions, safety and quality of goods, and so on. Furthermore, it appears that there is a scarcity of research that focuses on or narrows down on the various types of sales promotions and their impact on customer; in the sense that many researchers suggested that different types of sales promotions will elicit different promotional responses.
In response to this problem this research work seeks to investigate the effect of sales promotion on customer patronage of Cosmetic product.

1.3 Research Questions
In order to successfully achieve the objectives above, the research seeks to find out answers to the following questions:
1.Does Discount Promotions influence patronage for cosmetic product?
2.Does ‘Free gift’ as a type of promotion influence customers patronage for cosmetic product?
3.Does Giveaways gifts or bundles offered in promotion influence customers choice to patronize and cosmetic firm?
4.Does Coupons or offers improve customers patronage for cosmetic product?

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