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MAKERERE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT SCIENCES
PROMOTION ACTIVITIES AND SALES VOLUME IN
TELECOMMUNICATION INDUSTRY.
A CASE STUDY OF MTN (U) LIMITED.
BY
WAMONI EDWARD KAGOTHO
REG.NO.07/K/3505/EXT
STUDENT NO.207004486
SUPPERVISED BY
MR.TIBAINGANA ANTHONY
A RESEARCH REPORT SUBMITTED TO MAKERERE UNIVERSITY IN
PARTIAL FULLFILMENT OF THE AWARD OF THE DEGREE OF
BACHELOR OF COMMERCE.
JUNE 2011
i
DECLARATION
I WAMONI EDWARD KAGOTHO do hereby declare that research report entitled
“Promotion Activities and Sales Volume in Telecommunication Industry” is entirely my
original work, except where acknowledged, and that it has never been submitted before to
any other university or any other institution of higher learning for the award of a Degree.
…………………………………… ………………………………..
WAMONI EDWARD KAGOTHO DATE
(Researcher)
ii
APPROVAL
This research report has been submitted for examination with my approval as the
candidate‟s university supervisor.
Signature………………………… ……………………………..
MR.TIBAINGANA ANTHONY DATE
(Supervisor)
iii
DEDICATION
This dissertation is dedicated to my Dad and Mum for their love and sacrifice.
iv
ACKNOWLEDGEMENT
I thank the Almighty God the provider of knowledge and wisdom for seeing me
throughout my studies and for enabling me to undertake my research successfully,
without His grace I wouldn‟t have made it.
I extend my deep appreciation to my supervisor Mr.Tibaingana Anthony for the
guidance and advice provided during the study that made it possible for me to
successfully complete this report.
Am greatly indebted to the staff and customers of MTN (U) Ltd. for their valuable help
and cooperation in providing the needed information.
Special thanks go to my parents Wamoni Stephen and Alice Wamoni for their parental
love, sacrifice, and support may God bless you abundantly.
I wish to express my sincere gratitude to all those who made tremendous contributions to
this study my brothers, sisters and friends Charles, Esther, Patrick, Eliud, Monica,
Martha, Peter, Ann, Grace, John, Buru, Florence, Muchina, Terry, Davis, Edison, Diana,
Linnet, Eve, Kiarie, Lydia, and Ruby, I appreciate your encouragement and moral
support.
May Almighty Lord bless you abundantly.
v
TABLE OF CONTENTS Page
DECLARATION. ............................................................................................................ i
APPROVAL. ..................................................................................................................ii
DEDICATION. ............................................................................................................. iii
ACKNOWLEDGEMENT. ............................................................................................. iv
TABLE OF CONTENTS ................................................................................................ v
LIST OF FIGURES ........................................................................................................ ix
CHAPTER ONE ............................................................................................................ 1
1.1 Background of the study ........................................................................................ 1
1.2 Problem statement ................................................................................................. 3
1.3 Purpose of the study............................................................................................... 3
1.5 Research Questions ................................................................................................ 4
1.6 The scope of the study ........................................................................................... 4
1.6.1Geographical scope .............................................................................................. 4
1.6.2 Subject scope ...................................................................................................... 4
1.6.3Time scope .......................................................................................................... 4
1.8 Significant of the study .......................................................................................... 5
CHAPTER TWO........................................................................................................... 6
LITERATURE REVIEW ............................................................................................. 6
2.0 INTRODUCTION ................................................................................................. 6
2.1 Elements of the promotion mix (Activities)............................................................ 7
2.1.1 Advertising ......................................................................................................... 7
2.1.2 Personal selling ................................................................................................. 10
2.1.3 Sale promotion .................................................................................................. 12
2.1.4 Publicity and public relations ............................................................................ 13
2.2 Sales Volume ....................................................................................................... 16
2.4. Measures of sale volume ..................................................................................... 16
2.6 Relationship between promotion and sale volume ................................................ 19
2.7 Conclusion........................................................................................................... 20
CHAPTER THREE .................................................................................................... 21
METHODOLOGY ...................................................................................................... 21
3.0 INTRODUCTION ............................................................................................... 21
vi
3.1 Research design ................................................................................................... 21
3.2 Study population .................................................................................................. 21
3.3 Sampling design .................................................................................................. 22
3.4 Sampling methods ............................................................................................... 22
3.5 Sample size .......................................................................................................... 22
3.6 Source of data ...................................................................................................... 22
3.6.1 Primary source .................................................................................................. 23
3.6.2 Secondary source .............................................................................................. 23
3.7 Data collection instruments .................................................................................. 23
3.7.1 Questionnaires. ................................................................................................. 23
3.7.2. Interview guide ................................................................................................ 23
3.8 Data collection methods ....................................................................................... 24
3.8.1 Observation ...................................................................................................... 24
3.8.2 Survey .............................................................................................................. 24
3.9 Data Processing, Presentation and Analysis ......................................................... 24
3.9.1 Data Processing ................................................................................................ 24
3.9.2 Data Presentation .............................................................................................. 24
3.9.3 Data Analysis.................................................................................................... 25
3.10 Limitation of the study ....................................................................................... 25
CHAPTER FOUR ....................................................................................................... 26
PRESENTATION, INTERPRETATION AND DISCUSSION OF THE FINDINGS.
...................................................................................................................................... 26
4.0 Introduction ......................................................................................................... 26
4.1 Findings on the background information .............................................................. 26
4.2 Findings on promotion tools used by MTN (U). ................................................... 29
4.3 Findings on the sales volume of MTN (U). .......................................................... 34
4.4 Findings on the relationship between promotion and sales volume ....................... 35
CHAPTER FIVE ......................................................................................................... 38
RECOMMENDATION AND AREAS OF FURTHER STUDY ............................... 38
5.0 Introduction ......................................................................................................... 38
5.1 Summary of major findings. ................................................................................ 38
5.1.1 Findings on the sales promotion activities used by MTN (U). ........................... 38
5.1.2 Findings on the sale volume of MTN (U) for the last 3 years............................. 39
5.1.3 Findings on relationship between promotion activities and sales volume. .......... 39
5.2 Conclusion. .......................................................................................................... 39
vii
5.3 Recommendations. .............................................................................................. 40
5.4 Areas of further study. ......................................................................................... 40
REFERENCES ........................................................................................................ 41
APPENDIX I: QUESTIONNAIRES FOR MTN (U) ................................................. 42
APPENDEX II: INTERVIEW GUIDE FOR STAFF OF MTN (U) ........................... 47
viii
LIST OF TABLES Page
Table 1: Showing the targeted sample size 22 Table 2: Showing Gender of Respondents. 26
Table 3: Showing Age of Respondents. 27 Table 4: Showing education level. 28
Table 5: Showing marital status of the respondent 28 Table 6: Showing religion of respondents 29
Table 8: Showing sales promotion activities that respondents were aware e of 30 Table 9: Showing how respondents came to know the product/services that MTN (U)
offers 31 Table 10: Showing how often MTN (U) promote its products/services 32
Table 11: Showing when MTN (U) change it sale promotion activities 32 Table 12: Showing other factors that contributed to increase in sale volume of MTN (U)
other than promotion. 34 Table 13: Showing whether MTN (U) achieved its targeted sales volume for the last 3
years. 35 Table 14: Showing the relationship that exists between promotion and sales volume in
MTN (U). 35 Table 15: Showing level of sales volume. 36
Table 16: Showing Correlation between Saale promotion activities and Sales volume 36
ix
LIST OF FIGURES Page
Figure 1: showing the push strategy 14
Figure 2: Showing the push strategy 15
x
LIST OF ACRONYMS
MTN (U) - Mobile Telephone Network Uganda
UTL- Uganda telephone limited
T.V-Television
WWW-World Wide Web
xi
ABSTRACT.
The study was carried out to examine the relationship between promotional activities and
sales volume with reference to MTN Uganda. The study was guided by the following
objectives; To establish the various promotional activities used by MTN (U), To establish
the level of sale volume of MTN (U) over 3 years and To establish the relationship
between sale promotional activities and sales volume. The researcher used descriptive,
cross-sectional and explanatory research designs. Data was collected using
questionnaires, interview guide. Data was collected from two sources; primary and
secondary source using a sample size of 35 respondents.
It was found that MTN (U) widely used advertising and personal selling as the main
promotion activities to stimulate their sales volume and promotion activities had really
increased sales volume for MTN (U for the last 3yaers, it was also found that there is a
very strong positive relationship between Sale Promotion activities and Sale volume at
Pearson correlation (r) of 0.872. The study concluded that Promotion activities induce
customers to consume MTN (U) products on the market thus increasing consumption rate
and the sales volume. The researcher recommended that MTN need to understand the
promotion activities and which media to communicate to consumers. It should put a lot of
emphasize in planning promotional programs and set promotional goals and strategies
and should ensure to carryout evaluations and control of promotion and make
adjustments where possible.
1
CHAPTER ONE
1.1 Background of the study
Due to privatization policy, a numbers of investors have taken up business and a very
good example is the telephone business. The first company to emerge in Uganda mobile
telecommunication was Celtel Uganda ltd in 1995 and later in1998 Mobile Telephone
Network Uganda (MTN), also arrived in 2000 UTL introduced a mobile telephone
company (MANGO) and Warid in 2008.
MTN Uganda is a subsidiary company of the South Africa‟s MTN Group Limited who is
the main stakeholders of the company with 97.34 percent as Put Forth by Isabel
Goncalves. The Uganda mobile network services industry is faced with high competition
with the main mobile networks operators being MTN,UTL , Airtel the former Zain and
Warid.MTN Uganda records strong growth and has reached a significant milestone in
the period by reaching the one million-subscribers mark(including fixed-line subscribers).
MTN Uganda has remained the most brands in Uganda affinity largely driven by
functional attributes such as coverage, proximity of distribution outlets and sustainability
initiatives. Its new slogan „every where you go‟ was launched in April 2005 ,adding a
fresh look, feel and appeal to the market and security MTN Uganda an award for best
execution and activation, www.mtn.co.ug.
MTN Uganda offer mobile services which range from pay as you go service, internet
service, fixed line service and a department that manages its subscribers‟ complaint
(customers services).MTN has been able to penetrate and ever expand on its share of its
2
market through the use of its key promotional tools. It has gone further to lay strategy of
giving back to the community through charitable funds and also being the highest tax
payer in Uganda. This has seen the company‟s client and community want to associates
with it and this has led to its growth in the market, MTN news letter (2010).
The existence of the four companies in the same industry has brought about competition
where each company want to secure and protect its market share this therefore has
prompted them to use different promotion tools in an attempt to increase on sales
revenue. Procter & Gamble (2007), tried to lead the consumers packaged good industry
by reducing trade promotion and coupons emphasizing advertising and branding the
survey shows that the promotions have grown from 44% in 2007 to 47% in 2008.
Companies continued reliance on promotions may stem from the fact that while it is
easier to assess the short term efforts of promotions. It is much harder to determine the
long run effects of promotional activities. The task of assessing long term effect is
exacerbated by the fact that competition often responds to change in the market policy.
Unless the company can measure quality and compare the short and the long term effects
of promotional activities, brand sales and profits, it‟s difficult to imagine how they may
arrive at appropriate budget allocation between the two variables.
Promotional activities are seen as determinant of demand of a product and service hence
the campaign are geared towards making organizations offering perfect acceptability by
the population, Kotler & Armstrong (1988).
3
Firm‟s needs to engage in promotional activities so as to remain successful in an ever
increasing competitive business environment .Buyers are always selective in their choice
of alternative expenditures. Therefore to attract a customer firms or companies should
have good promotional programs which aim at awakening and stimulating customer
demand for the product or the service, Ntayi (1999).
It should be noted that to be competitive in the market in Uganda promotional activities
should be blend with other operational aspects of company‟s market systems these
include good service and planning to ensure full component of a firm product or service
required by the customer is designed. In Uganda today the survival of any
Industry or company especially in telecommunication promotion has a bigger impact on
sales volume and profitability as will be seen later chapter.
1.2 Problem statement
In recent years MTN Uganda has invested much into the sale promotion aiming at
improving the sale volume of the company. Despite of heavy investment in promotional
activities MTN has not achieved its targeted sale volume, for example the targeted sales
of 2010 were 50 Billion and the actual sales was 44.87Billion which indicated a
deficiency in the actual sale. So this study aimed at establishing the relationship between
promotional activities and sale volume using MTN (U) as a case study.
1.3 Purpose of the study
The purpose of this study was to examine the relationship between promotional activities
and sale volume of MTN (U)
4
1.4 Objectives of the study
(1) To establish the various promotional activities used by MTN (U)
(2) To establish the level of sale volume of MTN (U) over 3 years
(3) To establish the relationship between sale promotional activities and sales volume.
1.5 Research Questions
(1) What are the various sale promotional activities used by MTN (U)?
(2)What was the level of sale volume in MTN (u) for the past 3 year?
(3) What is the relationship between sale promotional activities and sale volume of MTN
(u)?
1.6 The scope of the study
1.6.1Geographical scope
The study covered the staff of MTN (u) and the customers in Kampala city. The study
was done in MTN (U) located on MTN Tower and other outlet in Kampala city.
1.6.2 Subject scope
The study focused on sale promotional activities as an independent variable and sales
volume as a dependent variable in MTN (U).
1.6.3Time scope
The study was done from February to June year 2011 and concentrated on literature of
the period between 2005 to 2010.
5
1.8 Significant of the study
The study was of great importance to me as a researcher because it enriched me with
knowledge and skills of doing research.
The study will be a source of literature to other scholars who will be researching on a
related topic.
The research will benefit the company by helping it to understand how promotional
activities can aid it in improving sales and how it can have a positive impact on their
brand and their company as a whole through increasing sales volume.
The study will benefit the general public by helping them understand the sale
promotional tools being used by MTN (U) to increase its sale revenue.
6
CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
The Advertising Standard Authority‟s (ASA) code of sales promotion defines sales
promotion as:
Those marketing techniques which are used, usually on a temporary basis to make goods
and services more attractive to the consumers by providing some additional benefit
whether in cash or in kind, Mercer (2002).
According to zallocco & Kincaid (2008), promotion is the deliberate attempt on the part
of the individual business or other institution to communicate the appropriate information
in a manner persuasive enough to include the kind of acceptable response desired.
Promotion is communication by the firm to other various audiences with a view of
informing them and influencing their attitude and behaviors towards the firm‟s product.
The most effective promotional activities are carefully integrated by marketing managers.
In general, the relative importance of advertising, personal selling, sales promotion and
publicity in specific marketing programmes will vary with the nature of the product, the
buying behavior of customers, the competitor practices in industry and the manner in
which marketing managers choose to apply resources. Each type of promotional activity
will attain maximum effectiveness, if only co-ordinated with others Kotler (1994).
Kotler & Armstrong (1990) said that all functions in the satisfaction systems are equally
important, if any one system is missing, the system breaks down. The same can be said
7
about the ingredients in the marketing mix, those activities that go together to make the
bundle of utility and promotion is important element of the mix.
According to Donnelly promotion makes the largest part of the marketing expenses. Most
organization regard promotion expenses as secret and therefore information about such
expenditure is difficult to determine. Berkowitz (1982) estimated that promotion quota to
be 25% of the total marketing costs of the firm. A successful promotion is one where a
company sells a lot of products to the customers, and a promotion for an established
brand can be used to attract and retain new users to the brand. Promotion has become
popular that it accounts for more than 65% of typical marketing budgets. However,
promotion alone cannot increase sales volume, some facilities such as provision of credit
and others contribute to the increase of sales volume on pot of promotional activities.
2.1 Elements of the promotion mix (Activities)
According to Kotler & William (1994), the mix consists of five major elements which are
advertising, personal selling, sales promotion, publicity and public relation.
2.1.1 Advertising
This is a paid of non-personal communication about an organization and or its products
that is transmitted to a target audience through mass medium. Individual and
organizations use to advertising to promote goods, services, ideas, issues, and people.
8
Theories of advertising
These are categorized into two; corporate and comparative advertising.
Corporate advertising: It goes beyond relations and product or brand advertising. It aims
at creating a lasting and favourable impression of a company and establishing corporate
dignity. Gambett (1982) discussed which companies that uses corporate advertising, why
they do and under what conditions is beneficial. He surveyed in 500 industrial and 250
non industrial companies and from his observations, many companies were associated
with corporate advertising which is divided into three major areas:
Issue advertising: Companies conduct this and in response to what they consider to be
threatening legislative or social activity.
Financial relation advertising: this can stimulate the interest of potential buyer.
Image building: This is due to establish an identity or get some erroneous view about
the firms. Large corporations use it to simplify and clarify public image. Comparative
advertising on the other hand is the way advertising of the company‟s product in
relation to its competitors. Bauchana & Goldman (1985) said that comparative
advertising is hard, bitter, attention to rubbing away of say “we are better than the
competitors”. However, this advertising can lead a firm to legal suit, where rivals can
sue it claiming it distorted the facts or even invented them.
Buchanan & Goldman (1985) said that one is vulnerable to civil action if he
misrepresents the nature, qualities, characteristics or geographical origin on his or her
person‟s goods, services or commercial activities.
9
Comparative advertising uses two types of data; that is adverts based on objective data or
usually easy to verify, while those based on subjective consumer product test are in a
form that more people prefer x to y or y is good as x but costs less.
Roles and functions of advertising
According to Kotler (1997), the role of advertising in marketing world is growing and it
is simplify informing, persuading and reminding consumers about a product attributes.
While according to William & Ferrell, advertising is to communicate with individuals
group or organization to directly or indirectly facilitate exchange by informing and
persuading one or more of the audiences to accept an organization product William &
Pride M. (1994).
Advertising is used to effectively create a unique salient product identify by adding
emotional value to it, thus discriminating it from competition.
Kotler (1997) grouped advertising into several categories and he identified six functions
of advertising namely;
Awareness
Comprehensive building
Head generations
Legitimization
Re-assurance
All these are aimed at accelerating the process of communication to create demand by
building up repeat sales and improving the market share. Hence it well guided by the
marketing concepts, advertising will have the central role of satisfying the customers.
10
Objectives of advertising
Advertising objectives should be clearly and precisely and in measurable terms Pride &
Ferrell (1989). The major objective of advertising is “to increase sales” and should be
backed by reference point say by 5%. It should contain a bench mark giving the current
condition of the firm together with major sponsor‟s goals. However, the advertising
objectives are stated in terms of either sales or communication.
Advantages of advertising
It presents the message usually through the mass media to a large group of people.
It reduces the cost of reaching a thousand people in targeted audience which is far
less than the cost of reaching one prospect through personal selling.
People learn from advertising for example learning about the products that are
available to them.
It promotes sales and thereby commerce as well
Limitations of advertising
Partial disclosure; that is stating what a product can do but not what it cannot do.
Visual distortionism; making the product look larger than it really is.
Misleading comparisons; this involves making misleading comparisons like genuine
antique reproduction.
2.1.2 Personal selling
Personal selling is informing customers and persuading them to purchase products
through personal communication in an exchange situation. When compared to
advertising, personal selling has three distinctive qualities.
11
Personal confrontation: As it involves a direct relationship between two or more
people. Each party is able to observe each other‟s needs and characteristics at close
range and make immediate adjustments
Cultivation: Personal selling permits all kinds of relationship to deep personal
friendship. Effective sales representative will normally keep their customers‟ interest
at least if they wish to cultivate long term relationship.
Response: Kotler (1996) observe that personal selling makes the buyer feel under
obligation to buy, having listened to sale talk.
The buyer has a greater need to attend and respond, even if the response is a polite “NO”
thank you.
Advantages of personal selling
Personal selling is aimed at one or several individual
Personal selling has great impact on customer despite the costs that are incurred in
reaching an individual.
Personal selling provides immediate feedback which allows marketers to adjust their
message to improve communication.
It also helps marketers to determine and respond to customers‟ needs for
information.
Limitation of personal selling
Reaching one person through personal selling cost considerably more than it does
through other promotional mixes like advertising.
12
2.1.3 Sale promotion
According to Brussel (1991) sale promotion consists of those marketing activities other
than advertising publicity and personal selling that stimulate customer purchasing, but for
William & Ferrell (1987), sales promotion is an activity that act as a direct inducement,
offering added value or incentive for a product to resellers, salesperson or customers.
Frequently marketers use sale promotion to improve the effectiveness of other promotion
mix ingeredients, especially advertisement and personal selling.
Sales promotion method falls into one of two groups depending on the intended
audiences consumers. Sale promotion methods are directed towards customer. Coupons
.the sample, demonstration and contents are typical. While sales promotion method that
focuses on wholesalers retailers and sale persons are called trade methods.
Measuring of sales promotion
According to Asael. AH (1987) manufacturing can use four methods to measure sales
promotion effectiveness, these are:
Sale data should be examined before, during and after promotion
Consumer panel data would reveal the kind of people who responded to the
promotion and what they did after the promotion.
Consumer survey can be conducted to learn how many recalls the promotion, what
they thought of it, how many took advantage of it.
Experiments that vary such attribute as incentives values, duration and distribution
media.
13
Advantages of sales promotion
It improves the effectiveness of other promotion mix ingredients especially
advertising and personal selling.
It helps marketers to develop and produce immediate short-term sales increase
Limitations of sales promotion
It does not provide a lasting effect while provoking response from retailers.
Some sale promotion devices are somewhat special and must be considered
separately thus reducing the attention of other devices.
2.1.4 Publicity and public relations
Publicity and public relations are also presented as element of a promotion mix by the
researcher Kotler (1996) & Louise stated that marketers lend to use public relations as an
offer thought, yet a well thoroughly public relations programme coordinated with
promotion elements can be extremely effective. The appeal of public relations may be
based on three distinctions.
High credibility: New stories and features seem more authentic and credible to
readers than advertising do.
Off-guard: Public relations can reach those prospects that can avoid sales persons
and adverts.
|Dramatization: Public relations, like advertising has a potential for advertising a
company‟s product.
Developing the appropriate promotional mix is one of most daunting task confronting
marketers. For instance, Kotler & Armstrong (1996) say that one of the hardest marketing
14
decisions facing a company is how much to spend on promotion. The following question
provide some general guidelines for allocating promotional effort and expenditure among
personal selling ,advertising, sale promotion and public relations advanced by Boone &
Kurts (1993).
What is the value of your product?
What is your target market?
Should you spend your promotional budget on personal selling?
What time frame of your work is involved?
The answers to the above questions are provided by use of appropriate strategies. For
instance the push and pull strategy so as to increase the sales, Kotler 1994).
The push strategy:
Marketing Activities
Manufacturers
Demand
Figure 1: showing the push strategy
End user Intermediaries
15
The Pull strategy:
Marketing Activities
Manufacturers Intermediaries
Figure 2: Showing the push strategy
Thus a push strategy involves firms‟ activities like primary sales force and trade
promotions directed at channels intermediaries to induce them carry the product and
promote it to the end users.
A pull strategy on the other hand involve marketing activities like primary advertising
and consumer promotion directed to the users to induce them to request the product from
intermediaries.
The nature of promotional activities
According to Kotler (1998), even in situation where there are products which may sell
themselves, such as those that may be in short supply, promotion is still necessary with
small budget. It is necessary to inform the customers of the market situation on how best
to make use of the united products, because later on when the shortages are over, the
goodwill is necessary for the firm‟s survival. This is what has even compelled larger
companies in Uganda like British American Tobacco to appreciate the reality of having
active promotion campaigns in search of customers. Mukasa (1994).
The importance of promotion is of great value when it comes to high involvement
products. By high involvement we mean those products where the buyer may have to
think hard and sometime consults others before he/she buy decide to buy or not to buy,
16
Shiftman & Kamuk (2007) such products like cars, computers and other electronic
equipment are regarded as greater value products. In this therefore, Engel, schewe &
smith (1991), argue that promotion is the most effective way to sell the people in the
market.
Kotler (1988) summarizes up the importance of promotion by saying that “the marketer‟s
main question should not be whether or not to promote but whom and how often to
promote”.
2.2 Sales Volume
Sales volume is the sum of a number of factors including gross sales returns and delayed
billing. Sales volume is the core interest of every organization that is based on sale and
profit. When the volume goes up everything is manageable (margin, profit, numerical
distribution). But when the volume goes down it is difficult to manage the business
parameters. The sales do not go up or down without a force behind it. The company is
managing and directing its sale volume through the portfolio and channel, Haskell (1980)
2.4. Measures of sale volume
An enhanced sales volume can be expected in business when effective control
mechanism are in place for service firms because such firms will be able to minimize the
cost of implementing and coordinating promotional activities and making necessary
changes more effectively in the business, (Kirca, 2005).
However, in review of practice in the Telecom industry, Haines (2004) points out that
companies are not carefully considering metrics that are best for establishing a foundation
17
for sales success of the firm. Managers and executives, in this industry at least, need to
ensure that sales activities and results are captured and measured to align with company
objectives and strategy. This may well be the case in a number of industries, where doing
a good job with sales volume measurement is the exception rather than the rule.
There is a significant body of sales research that measures sale volume in term of
behaviors. This literature suggest that certain selling behaviors are effective and others
are not for example, White (2008) operationalises effectiveness as the reward satisfaction
outcomes that result from customer interactions with firm‟s sales. Some of more recent
research trends have explored the adoption and use of technology in mediating sales
volume efficiency Senecal (2008).
Morgan, Blackwell & Miniard (2008) found that post sale business services are a critical
element in building a firm‟s brand name and equity. Since information, knowledge,
strategies, tactics and organizational processes used in promotion are externally oriented;
a final component is that selling also be externally oriented and sales volume be
evaluated base on their contribution to the external perspective. In support of this notion,
Haines (2005) found external measures (customer oriented) to be positively related to
salesperson job satisfaction, while internal dimensions such as skills were not. One set of
overall sales volume measures was provided in 1997, and includes market share, relative
price, relative quality, customer preference, relative new product sales and response time
to customer problems. Many of these measures can be used directly to assess sale
volume. Zallocco, Perreult & Kincard (2008) they felt that a critical measure of sales
volume is the quality of personal relationships salespersons develop with buyers,
although they clearly noted challenges in this particular area.
18
2.5 Factors that affect sales volume
Organization job descriptions and specifications would be different depending on the
orientation. Furthermore, customer-orientated selling requires better training, more
sophisticated salespeople with the capacities of being flexible, being customer problem
solvers, and having the financial and analytic tools to be truly externally focused,
Jaramillo (2007)
According to Brat (2004) flexibility in decision making and implementing would
positively affect the sales volume of the firm. But Jensen (2008) argued that decision
making is major factor that affect firm‟s sales because all activities rotate around
decisions that management implement. The salesperson‟s perceived interpersonal skills
have a positive influence on volume Vilela & Gonzalez, (2002).
Johlke (2006) in his study found that manager‟s and salesperson understands of the
overall purpose of sales volume outcomes are inconstent. A summary of respondents
overall attitudes towards sales volume shows that sales managers are more conserved
with the ability to measure sales volume precisely than sales persons
The sale volume is an integrative component of an organization promotional activities
volume measures should be consistent with organizational mission objective,
encouraging salesperson behaviors that support desired outcomes Mallin (2008).
Management control and training are important potential contributors to a salespersons
long-term performance Johnston & Marshall (2002). By designing and implementing
appropriate training programs, sales managers may increase the performance of their
sales force thus increasing on the sales volume, He goes ahead to say that however if
19
management control and training is power sales force performance is also poor which
affect sales volume.
2.6 Relationship between promotion and sale volume
Theoretically there should be a direct relationship between promotion and sale volume.
Some studies have shown that this is not always true, Engle et al (1991)
A firm may increase on promotional activities in anticipation of an increase in sales
volume, market share and profits but customers may not want to buy for one reason or
another say perception of the product, place and price hence promotional activities
themselves are not good enough and successful. Weigand (1997), Kotler (1998).
The cause could be that promotional activities form an important part of the marketing
mix, though the other elements of the mix also communicate, Smith (1983). The product
communicate something to the customers for it to be bought, customers must see it as the
right one to satisfy their needs and wants. Promotion does not have magic of selling a
product that a customer may perceive to be wrong due to wrong pricing. The same goes
for place, if a firm promotes a product very aggressively without making it accessible to
the customers, it will be a wasted efforts and money. Therefore for promotion to have a
direct relationship with sales volume the entire marketing mix must be seen by the
customers as the right one Mc Carthy & Engle et al (1991).
Thus Kotler (1998) emphasized a strong relationship between promotional activities and
sales volume. He observed that for there to be perfect performance of the product, then a
combination of two or more promotional activities have to be performed and their
20
performance should be done putting into consideration the marketing mix element so as
to aid the consumer make a decision to buy or not to buy the product.
2.7 Conclusion
In conclusion, the relationship between promotional activities and sales volume can be
termed as a strong positive correlation, this is because promotional activities drive sales.
If marketing department ignores the role played by promotional activities to boost the
company sales volume then it neglects a very important aspect offered by the
relationship. Use of promotional activities is more viable to reach and benefit the
customer, they come to know about the products, their information and product
availability, it makes mass distribution possible and makes customer aspire to higher and
higher things in life making life a saga of continuous struggle to acquire what they do not
have, as a result firms increase on their production which in turn lead to increase in sales
volume.
21
CHAPTER THREE
METHODOLOGY
3.0 INTRODUCTION
This chapter gives a description of research design, study population, sampling design
and sampling methods, sample size, data source, data collection instruments and data
collection methods, data processing, presentation and data analysis.
3.1 Research design
In order to collect as much data as possible a combination of research designs were used
such as descriptive, cross-sectional and explanatory research design based on the scope of
the study.
Descriptive research design was used in order to ascertain and be able to describe various
characteristics of variables in the study.
Cross-section research design was used in the study, this helped to gather data required
from the staffs and customers over a month in order to answer the research questions.
Explanatory research design was used; this type aimed at explaining the variables by
associating it with the study and this was used because the researcher was interested in
explaining why and how the variables behave the way they do.
3.2 Study population
The study population was of Kampala city residents where the staffs and customers of
MTN (U) were interviewed.
22
3.3 Sampling design
The researcher used sample random where by an element had a known chance in the
population which was selected as a sample subject. This was used because the sample
was of great importance in the interest of wider generalization in the study and to
minimize biasness.
3.4 Sampling methods
The study used a stratified and purposive sampling method. A stratified method was used
because the population was categorized into staffs and customers, then a representative
sample of the respondents was randomly chosen from the target population to minimize
biasness. Purposive was used in order to help locate the respondents with the relevant
information that the researcher needed in the study.
3.5 Sample size
The researcher used a sample size of 35 respondents categorized as follows;
Table 1: Showing the targeted sample size
Source: Primary data.
3.6 Source of data
The study used two main sources of data as identified below.
Respondent category Numbers
MTN Staffs 12
MTN Customers 23
Total 35
23
3.6.1 Primary source
This is data obtained for the first time from respondents. Primary data was obtained
through personal interviews with respondents, observations and self-administered
questionnaires.
3.6.2 Secondary source
Secondary data was obtained through the company brochures, statistical report and
bulletins, annuals marketing reports on general consumers survey, textbooks, other
students research work, journals, company‟s sales records and newspapers,
3.7 Data collection instruments
3.7.1 Questionnaires.
This technique helped to collect primary data through a number of questions, which were
given to a cross section of respondents. The questions were open ended and closed ended
questions with the questionnaire mainly based on predetermined and standardized
questions. They focused on the impact of promotional activities on sales volume and
were used to capture what the staffs of MTN (U) think of the organization promotional
program.
3.7.2. Interview guide
Structured interviews were used to collect data from the staffs of the company. This led
to face to face interaction and solicitation of pertinent information from the respondent.
Self administered questionnaires were used by the researcher because they are cheap to
distribute and process. They were more flexible and helped to save time.
24
3.8 Data collection methods
3.8.1 Observation
The researcher used the observation method which enabled him to collect data from the
field so as to compile the report. Items observed include the promotional tools MTN used
for its sales such as bill boards, also facial reactions of the respondents were observed as
they were interviewed and this helped in answering the research questions.
3.8.2 Survey
The researcher used the survey method whereby he followed a drawn interview guide to
ask the selected respondents structured questions. This method was used because some
respondents had no time to sit down and answer the questionnaires while others were
illiterate.
3.9 Data Processing, Presentation and Analysis
3.9.1 Data Processing
Data processing includes coding and editing all the responses collected from the field
which was edited with the view of checking for completeness and accuracy to ensure that
data is accurate and consistent. Coding was done after editing which was done manually
and by the use of computer through word processing and Excel.
3.9.2 Data Presentation
The researcher presented data got from the primary and secondary source using statistical
package for social science (SPSS) software and the result was presented in tables for easy
interpretation.
25
3.9.3 Data Analysis
The researcher used statistical analysis of historical data to assess the effect of
promotional activities. Primary data analysis involving calculation of frequencies and
percentage was tabulated by use of correlation study through Pearson‟s coefficient of
partial correlation then the tabulation was cross tabulated at a 0.05 level of significance
with a view to establish relationship between the variables. Multiples partial regression
analysis was used to test the strength of relationship since there is one dependent
variable, sales revenue.
3.10 Limitation of the study
Limited time-Time scope was limited because the researcher had to attend for lectures,
do tests and coursework‟s and prepare for end of semester exams. To solve the limitation
of time the researcher programmed himself within the time frame available and avoided
procrastination so that all was done on time.
Financial constraints-The research required substantial amount of money for travelling,
printing questionnaires among others. To solve this problem the researcher solicited
funds from family members and friends and also looked for cheaper service providers.
Language barrier-The researcher met people who didn‟t understand English. The
researcher looked for an interpreter for effective gathering of information.
26
CHAPTER FOUR
PRESENTATION, INTERPRETATION AND DISCUSSION OF THE
FINDINGS.
4.0 Introduction
In this chapter, the findings of the study are analyzed and presented according to research
questions and study variables. The relationship between promotion activities and sales
volume is also established. The analysis aim at satisfying the research objectives were;
(1) To establish the various promotional activities used by MTN (U)
(2) To establish the level of sale volume of MTN (U) over 3 years
(3) To establish the relationship between sale promotional activities and sales volume.
4.1 Findings on the background information
This section presents the background information of respondents who participated in the
research study. The information contained in this category includes gender, education
background, occupation, age, marital status and religion of the respondents of MTN
customers.
Table 2: Showing Gender of Respondents.
Gender Frequency Percent
Male 20 57.1
Female 15 42.9
Total 35 100.0
Source: Primary data
27
Table 2 above indicates the responses for gender, where the majority of them were male
with 57.1% compared to their counterparts the female who had 42.9%. Therefore it was
concluded that the male respondents participated more in the study compared to the
female respondents.
Table 3: Showing Age of Respondents.
Age Frequency Percent
21-30 17 48.6
31-40 12 34.3
41-50 6 17.1
Total 35 100.0
Source: Primary data.
Table 3 above indicates the responses for the age, where the highest percentage was for
those in age bracket of 21-30 years with 48.6%, and respondents in the 31-40 age bracket
were 34.3% and then the lowest percentage was for those in age bracket of 41-50 years
with 17.1%. Therefore it was concluded that most of the respondents were in the lower
ages who participated in the study or majority of MTN customers were part of the
28
Table 4: Showing education level.
Education level Frequency Percent
Masters
Degree
Diploma
A‟ level
O‟ level
Total
3
14
6
8
4
35
8.6
40
17.1
22.9
11.4
100.0
Source: Primary data.
Table 4 above shows the responses of the level of education to respondents and it was
found out that most of the respondents had degrees with 40%, those who had completed
diplomas had 17.1%, those who had finished A‟ level had 22.9%, those who had
completed O‟ level had 11.4% and lastly those who had masters had 8.6%. Therefore it
meant that most of the respondents who participated in the study were degree holders.
Table 5: Showing marital status of the respondent
Marital
status Frequency Percent
Single 24 68.6
Married 11 31.4
Total 35 100.0
Source: Primary data
Table 5 above shows the responses for the marital status to the respondents, Majority of
them were still single with 68.6% compared to those who were married with 31.4%.
29
Therefore it was concluded that most of the respondents who participated in the study
were singles.
Table 6: Showing religion of respondents
Religion Frequency Percentage
Catholic
Protestant
Muslim
Others (specify)
Total
16
15
2
2
35
45.7
42.9
5.7
5.7
100
Source: Primary data
Table 6 above shows the religious affiliation to the respondents, where the majority of
them were Catholics with 45.7%, Protestants had 42.9%, Muslims had 5.7% and others
who did not specify had 5.7%. Therefore this implied that most of the respondents were
Catholics by faith.
4.2 Findings on promotion tools used by MTN (U).
Table 7: Showing whether respondents knew sales promotion
activities used by MTN (U).
Frequency Percent
Yes 34 97
No 1 3
Total 35 100.0
Source: Primary data
30
Table 7 above reveals if the respondents know the sale promotion activity used by MTN
(U), majority of them responded positively that they are aware of sale promotions with
97% compared to those who were not aware of sale promotion that had 3%. Therefore
this implied that most of the respondents were aware and had knowledge on sale
promotion activities by MTN (U).
Table 8: Showing sales promotion activities that respondents were
aware e of
Promotion activity Frequency Percent
Personal selling
Publicity
Advertisement
Trade Auction
Billboard
MTN Zone
Text Message
MTN Mobile money
Broadband internet
5
3
6
3
4
5
2
1
2
14.3
8.6
17.1
8.6
11.3
14.3
5.7
2.9
5.7
Associating with social
activities
1 2.9
Yellow Max
Easy load
Total
2
1
35
5.7
2.9
100.0
Source: Primary data.
31
Table 8 above shows the sale promotions the respondents are aware of, where majority
choose the sale promotion of Advertisement with 17.1%, followed by personal selling
and MTN zone with each 14.3%, billboard with11.3%, Publicity and Trade auction with
8.6%, text message, broadband internet and yellow max with 5.7% respectively and MTN
mobile money, easy load and associating with social activities with each 2.9%
Table 9: Showing how respondents came to know the product/services that MTN
(U) offers
Tool Frequency Percent
Television
Billboards
Calendars
MTN package
MTN zone
Telephone messages
Radio
Posters
Friends
Internet
Newspapers
Total
6
3
5
2
3
5
6
1
1
2
1
35
17.1
8.6
14.3
5.7
8.6
14.3
17.1
2.9
2.9
5.7
2.9
100
Source: Primary data
Table 9 above shows the responses for how the respondents came to know the
products/services that MTN (U) offers, majority of them reported television and radio
32
each with 17.1%, 14.3% each from telephone message and calendars,8.6% from
billboards and MTN zone,5.7% from internet and MTN package and 2.9% through
newspapers, posters and friends. Therefore it was concluded that respondents gave
different responses on how they came to know about products/services that MTN offers
as discussed above.
Table 10: Showing how often MTN (U) promote its products/services
Rate Frequency Percentage
Daily
Weekly
Monthly
Frequent
Total
22
2
1
10
35
63
6
3
28
100
Source: Primary data
Table 10 above indicates the responses for how often does MTN (U) promote its
products/services, 63% of the respondents said that MTN (U) promote its
products/services daily,28% said frequently,6% indicated weekly while 3% indicated a
monthly promotion. This meant that most of the respondents reported that it would be
daily, so this implied that they thought that the more promotions MTN (U) conduct, the
more sales it will make.
33
Table 11: Showing when MTN (U) change it sale promotion activities
Changes Frequency Percentage
When sale revenue reduced
When there is a new offer
When price changes
When market share reduce
When there is a competitor
Total
7
9
4
10
5
35
20.2
25.7
11.4
28.5
14.2
100
Source: Primary data
Table 11 above shows the responses of when does MTN (U) change its sale promotion
activities, 28.5% of them reported that when market share reduced, 25.7% when there is a
new offer in the market,20.2% when sale revenue reduced,14.2% when a new competitor
enter the market whereas 11.4% said when price changes.
34
4.3 Findings on the sales volume of MTN (U).
Table 12: Showing other factors that contributed to increase in sale volume of MTN
(U) other than promotion.
Other factors Frequency Percentage
Research and development
Good service delivery
Good customer care
Social responsibility
Wide network coverage
Wide distribution channels
Total
9
5
6
4
3
8
35
25.7
14
17
11.4
9.1
22.8
100
Source: Primary data
Table 12 above shows the responses for what contributed to sale increase of MTN (U)
other than promotion activity. Research and development indicated 25.7%, 22.8%
indicated a wide distribution,17% indicated good customer care,14% indicated good
service delivery,11.4% indicated social responsibility while 9.1% indicated wide network
coverage. This concludes that increase in sale volume in MTN (U) was also contributed
by other factors other than promotion activities.
35
Table 13: Showing whether MTN (U) achieved its targeted sales volume for the last
3 years.
Frequency Percentage
Yes
No
Total
32
3
35
91
9
100
Source: Primary data
Table 13 above shows the responses for achievements of MTN (U) on its targeted sales
volumes for three years, majority of them responded positively with 91% compared to
those who responded negatively with 9%.
4.4 Findings on the relationship between promotion and sales volume
Table 14: Showing the relationship that exists between promotion and sales volume
in MTN (U).
Relationship Frequency Percentage
Direct
Indirect
Total
31
4
35
89
11
100
Source: Primary data
Table 14 above shows the responses for what is the relationship that exists between
promotion and sale volume in MTN (U), the highest percentage was for those who
responded that there is a direct relationship with 89% and 11% indicated an indirect
relationship. Therefore it was concluded that there is a direct relationship between
36
promotion activities and sale revenue. That is when MTN (U) carried out promotion
activity sale volume was to increase.
Table 15: Showing level of sales volume.
Level Frequency Percentage
Low
Moderate
High
Total
8
12
15
35
23
34
43
100
Source: Primary data.
Table 15 above indicates the total levels of sale volume where the lowest percentage was
23%, moderate percentage was 34% and the highest percentage was 43%.
Table 16: Showing Correlation between Saale promotion activities and Sales volume
Total Sale volume Total Sale volume
Total Sale Promotion
activities
Pearson
Correlation
1.000 .872(**)
Sig. (2-tailed) . .005
N 35 35
Total Sale volume
Pearson
Correlation
.872(**) 1.000
37
Sig. (2-tailed) .005 .
N 35 35
** Correlation is significant at the 0.05 level (2-tailed).
Source: Primary data
The table 16 above shows that there is a very strong positive relationship between Sale
Promotion activities and Sale volume at Pearson correlation (r) of 0.872. A change in sale
promotion may affect company‟s sale volume by 87.2% implying that sale volume is
greatly affected by promotion activities.
38
CHAPTER FIVE
RECOMMENDATION AND AREAS OF FURTHER STUDY
5.0 Introduction
This chapter presents the summaries of the main findings of the study, the conclusions,
recommendations of the study and further areas for future research, these are based on the
objectives of the study.
5.1 Summary of major findings.
The research study aimed at establishing promotion activities, the sale volume of MTN
(U) and relationship between promotional activities and sale volume of MTN (U).
5.1.1 Findings on the sales promotion activities used by MTN (U).
Research findings indicate that MTN (U) widely used advertising and personal selling as
the main promotion activities to stimulate their sales volume and have had a profound
increased on sale volume, these promotion activities have helped to convey the message
of the product/ services that MTN offers. The study further revealed that a significant
percentage of the respondents were using radio and TV as a media mix to receive
promotional messages and that a bigger percentage showed that the promotional
messages they got over the media were clear and had influenced customer learning about
the company‟s products. The findings also indicated that not only promotion activities
that affect sale volume but there are other factors such as research and development, good
customer care, price reduction, good after sale service and wide coverage which
influenced consumption behavior of the customers in the market, however promotional
39
activities have been found to be very successful though some were inappropriate to
Uganda and a few modifications would have been better.
5.1.2 Findings on the sale volume of MTN (U) for the last 3 years.
A close examination revealed that promotion activities had really increased sales volume
for MTN (U for the last 3yaers. Promotion activities have helped to change customers‟
perception on the products/services MTN (U) offers thus retaining them as their
customers who have in turn contributed to increase in sales volume.
5.1.3 Findings on relationship between promotion activities and sales
volume.
The study revealed a strong positive relationship between promotion activities and sales
volume with a correlation (r) of 0.872 implying more efforts put towards the promotion
activities would increase sales volume by 87.2%.
5.2 Conclusion.
The study concluded that Promotion activities induce customers to consume MTN (U)
products on the market thus increasing consumption rate and the sales volume.
There is a strong relationship between sales promotion and the company‟s sales volume.
The main media mixes used are the radio and television to communicate promotional
message.
To increase sales volume of MTN (U) is a major aspect in the company; this is because
the telecommunication industry is faced with a lot of competition from other competitors
hence leading to the application of more promotions in order to increase sales revenue.
40
5.3 Recommendations.
From the findings discussed in chapter four, the following recommendations would help
to improve the level of sales in MTN (U).
Given the competitive nature of the telecommunication industry, MTN need to
understand the promotion activities and which media to communicate to their consumers.
It should put a lot of emphasize in planning promotional programs. That is a good plan
should be appropriate, feasible, comprehensive, time specific and regularly reviewed.
The company should budget and schedule promotional programs. Proper management of
the above two aspects would lead to setting benchmarks for the control phase of the
management process.
It should set promotional goals and strategies because management is a goal directed
activity. They must begin with an examination of goals and then project to explore
alternative strategies by which the goals may be achieved.
MTN (U) should ensure to carryout evaluations and control of promotion and make
adjustments where possible.
5.4 Areas of further study.
Future researches should be carried on the following.
Research to determine effective means of communication to consumers
Research to determine the product switching behavior of customers and its underlying
causes in MTN (U).
The implications of brand line promotion to the customers of MTN (U).
41
REFERENCES
1. Asael H. (1987), Consumer Behaviour and Marketing Action (Bost Kent,
Publishing).
2. Berkowiz (1982) &Gambett, Bavehana & Goldman (1985) Journal of Sales
Management, Vol.No.16.
3. Boone &Kurt (1993), Russel (1991).
4. Engle, Scheme & Smith (1991) Effects of Promotion on Sales.
5. Kirei (2005),Dennis Adock, Ray Bradfield Alharborg and Ross (1995).
6. Kottler P. and S.Armstrong (1988), Principle of Marketing 7th
Edition Prentice
Hall, New Jersey.
7. Mallin & Jensen (2008) Nile Breweries Journals.
8. Mercer, Vilela, Ganza lezthe, Johnston & Marshall (2002) Role of Selling in
Marketing Strategy.
9. MTN News Letters (2009-2010).
10. Ntayi M. (1999), Principles of Marketing.
11. Okwire P. (1997) Effect of Sales Promotion on Sales, Case Study Nile Breweries.
12. Phillip Kottler (1997), Marketing Management Analysis, Planning, Implementing
and Colonial 8th Edition (Eaglewood Cliffs Prentice Hall, International 1996).
13. Procter, Gamble, Jaramino, Smithman & Kaman (2007) Marketing Principle and
practice.
14. William, Ferrel, Pride M, (1994) Marketing Research (New York, McCarthy &
Engle et al 1991).
15. www.mtn.co.ug
16. Zallocco, perreult and Kincaid (2008) Promotion, Persuasive Communication in
Marketing (Irwin-Dorsey Limited, White, Senecal, Morgan, Blackwell &
Miniard).
42
APPENDIX I: QUESTIONNAIRES FOR MTN (U)
Dear respondent
I am a student of Makerere University carrying out a study under the topic effects of
promotional activities on sales revenue in the Telecom industry case study MTN (U).
You are kindly requested to participate in the study and give your opinion as honesty as
possible. Please answer by ticking the appropriate answer in the space provided. The
information obtained will be used for academic purpose and treated with utmost
confidence.
Thank you.
PART A General information
1) What is your gender?
Male Female
2) What is your age group?
Below 20years 21-30
31-40 41-50
51 and above
3) What is your level of education?
Degree Masters
Diploma A-level
Certificate O-level
Any other, Specify………………………………………………………………………
4) What is your marital status?
Single Married
43
Divorced Separated
5) What is your religion?
Catholic Protestant Muslim
If others specify……………………………………….........................................................
PART B QUESTIONS ON PROMOTION ACTIVITIES.
i) To be filled by MTN (U) staffs.
1) Does MTN (U) carry out sale promotion?
Yes No
2) What are the types of sale promotion do MTN (U) employ?
………………………………………………………………………………………………
………………………………………………………………………………………………
3) How often does MTN (U) promote its products/services?
………………………………………………………………………………………………
………………………………………………………………………………………………
4) How often does MTN (U) change its sale promotion activities?
………………………………………………………………………………………………
................................................................................................................ ................................
5) What contributed to sale increase of MTN (U) if any?
………………………………………………………………………………………………
………………………………………………………………………………………............
44
ii) To be filled by MTN (U) customers.
1) Do you know any sale promotion activity used by MTN (U)?
Yes No
2) If yes, what are these sale promotion activities?
………………………………………………………………………………………………
………………………………………………………………………………………………
3) How did you come to know the products/services that MTN (U) offers?
………………………………………………………………………………………………
……………………………………………………………………………………………...
4) Which sale promotion activity is more effective to you?
………………………………………………………………………………………………
……………………………………………………………………………………………....
5) How often does MTN (U) promote its products/services to you?
………………………………………………………………………………………………
………………………………………………………………………………………………
6) How does MTN (U) inform you about their products/services developments?
………………………………………………………………………………………………
…………………………………………………………………………………………........
7) How does MTN (U) make you aware of their new offers in the market?
………………………………………………………………………………………………
………………………………………………………………………………………………
45
PART C QUESTIONS ON SALE VOLUME.
To be filled by MTN (U) staffs.
1) What was the targeted sale volume of MTN (U) for the last 3 years?
2010……………… 2009………………. 2008………………………
2) What was the actual sales volume of MTN (U) for the last 3 years?
2010……………… 2009………………. 2008………………………
3) Has MTN (U) achieved its targeted sales volume for the last 3 years?
Yes No
4) If No, What was the reason and what are the collection measures that have been taken?
………………………………………………………………………………………………
………………………………………………………………………………………………
PART D QUESTIONS ON RELATIONSHIP BETWEEN PROMOTION ACTIVITIES
AND SALES VOLUME.
To be filled by MTN (U) staffs.
1) Do sale volume increase when MTN (U) carry out promotion?
Yes No
2) If No, What action do you take?
………………………………………………………………………………………………
………………………………………………………………………………………………
3) What is the relationship that exists between promotion and sale volume in MTN (U)?
………………………………………………………………………………………………
……………………………………………………………………………………………...
46
4) What contributes to the sale volume increase, if any, in MTN (U)?
………………………………………………………………………………………………
………………………………………………………………………………………………
5) When MTN (U) carried out promotion activity did the existing customers demand
more of the MTN (U) products/services?
Yes No
6) When MTN (U) carried out promotion activity did new customers join the market?
Yes No
7) When MTN (U) carried out promotion activity did its market share increase?
Yes No
8) When MTN (U) carried out promotion activity did its distribution channels/centers
increase?
Yes No
Thank you for your cooperation.
47
APPENDEX II: INTERVIEW GUIDE FOR STAFF OF MTN (U)
COLLEGE OF BUSINESS AND MANAGEMENT SCIENCES.
Dear Respondent,
I am a student of Makerere University currently undertaking a research on effects of
promotional activities on sale revenue in Telecom industry case study MTN (U)
The study is in partial fulfillment of the Academic requirements for the Award of Degree
of Bachelor of Commerce of Makerere University.
The interview guide below is purely for Academic purposes and the information provided
shall be treated with utmost confidentiality.
Kindly spare some of your valuable time and give your views and observations there in
as genuinely as possible.
Thank you.
Yours Faithfully,
Edward Wamoni
RESEARCHER.
48
TO MTN (U) STAFF.
1) What is your designation?
………………………………………………………………………………………………
2) For how long have you worked with MTN?
………………………………………………………………………………………………
3) What promotion tools have you been using in MTN (U) for the last three years?
………………………………………………………………………………………………
……………………………………………………………………………………………....
4) Which promotion tool do you find most effective?
………………………………………………………………………………………………
………………………………………………………………………………………………
6) How often do you promote your products/services?
………………………………………………………………………………………………
………………………………………………………………………………………………
7) Does MTN (U) have a number of promotional tools? If yes which are they?
………………………………………………………………………………………………
………………………………………………………………………………………………
8) What has been the sale volume of MTN (U) for the last 3 years?
2010……………… 2009………………. 2008………………………
9) Has MTN (U) achieved its targeted sales volume for the last 3 years?
Yes No
10) If No, What was the reason and what are the measures put in place?
……………………………………………………………………………………................
49
11) Have the company‟s sales revenue increased for the last three years?
Yes No
12) If No, why? And what measure have you taken to improve the situation?
………………………………………………………………………………………………
………………………………………………………………………………………………
13) Does the marketing department rely on promotional tools to influence the sales?
Yes No
14) Do promotional tools used by MTN (U) influence sales volume?
Yes No
15) Does sale volume increase when you carry out promotion activities?
Yes No
16) When you carried out promotion activity did the customers demand more of your
product?
Yes No
17) When you carried out promotion activity did you get new customers?
Yes No
18) What is the relationship that exists between promotion and sale volume in MTN (U)?
………………………………………………………………………………………………
……………………………………………………………………………………………...
Thank you for your cooperation.