A CRITICAL EVALUATION OF THE IMPACT OF SALES PROMOTION STRATEGY ON CONSUMER  BRAND PREFERENCES IN CAMEROON (A CASE STUDY OF MEDIA SYSTEM CONSULT)

CHAPTER ONE

INTRODUCTION

Background of the study

Sales promotions have emerged as a crucial instrument for marketers, and their significance has seen substantial growth in recent years (Kotler & Keller, 2016). Retail enterprises use prices as a marketing strategy to entice customers. This is seen by the growing prevalence of product pricing in the media and advertising efforts. The purpose of this is to provide the customer a means of comparing and evaluating the many options available to them when making a purchase (Kotler & Keller, 2016). According to the Economic Times (2015), marketing businesses in India spend an estimated Rs 5,000 crores on sales promotions. The Indian sector has seen a significant growth of 500 to 600 percent in the focus on sales promotion activities over the last 3 to 5 years. In 2001, the FMCG industry had a total of 2,050 promotional programmes, with a value of Rs 80,000 crore (Saleem, Igwe & Abrar, 2019). Due to the increasing significance of sales promotion, there has been significant curiosity regarding its impact on various aspects such as consumers' perception of prices, selection of brands, behaviour of switching brands, assessment of brand value, influence on brand perception, and more (Gorji and Siami, 2020).  Manufacturers and retailers want to comprehend how marketing factors such as pricing, customer loyalty, and promotional activities might impact their sales and, therefore, the market share of the items they sell (Gorji and Siami, 2020). Empirical research indicates that sales promotions have a beneficial impact on short-term sales. Research has shown that price promotions increase the likelihood of customers switching to a different brand within a certain product category (Dodson et al, 1978). Nevertheless, there have been research indicating that sales promotion has an impact on brand perceptions (Gorji and Siami, 2020). A study conducted by Gorji and Siami (2020) shown that promotions, particularly price promotions, had a detrimental impact on brand equity. Ibrahim (2020) contends that over reliance on promotions might undermine customers' assessment of the price-value relationship. Okoro's (2015) research reveals that advertising has a favourable impact on brand equity over an extended period, but price promotions have an adverse effect. Sharmila (2018) proposes that frequent price promotions, such as price offers, are associated with poor brand equity. On the other hand, high advertising expenditure, high price, attractive shop image, and high distribution intensity are associated with strong brand preference, according to a structural equation model. The brand preference of a well-established brand is often influenced by the perception of its customers (Kavitha, 2020). Brand preference is a crucial strategy for linking a brand with consumers and influencing their purchasing decisions for certain sorts of products from certain companies. Various aspects within the market environment have been identified as influential in shaping brand choice, particularly in relation to promotional methods. Brand preference is a marketing strategy that organisations may build and sustain for their advantage (Salelaw, 2016). Building brand preference involves using promotional strategies that enhance the brand's value and improve its recall and recognition. Brand preference encompasses many factors, such as brand awareness, brand affiliation, brand loyalty, and perceived brand expectations. Promotional initiatives alter the level of positive sentiment and influence of a brand based on many aspects of brand preference. In a complex and dynamic environment, it becomes challenging to develop, plan, and implement a suitable mix of promotional efforts, as stated by Salelaw (2016). Business organisations must establish defined objectives to be achieved via sales marketing. It is important to differentiate between short-term and long-term goals. The former often target the competition's promotional incentives or liquidating inventory. Long-term aims often prioritise the expansion of market share, maximising advantages, and cultivating a favourable reputation to get recognition.  Therefore, the researcher sought to evaluate  the impact of sales promotion strategy on consumer  brand preferences in Cameroon (A case study of Media system consult). 

1.2 Statement of the problem

Companies in numerous sectors have increasingly used sales promotion methods to influence customer behaviour and improve brand preferences, resulting in a significant change in the business environment. Cameroon is known for its diversified consumer demographics and growing economy. As a result, organisations are always looking for novel tactics to attract and keep consumers (Salelaw, 2016). Out of all the techniques, sales promotions are particularly notable as a widely utilized and influential strategy used by marketers to impact customer behaviour and mould brand preferences. Sales promotions involve a wide range of strategies, including discounts, coupons, competitions, and loyalty programmes. These techniques are used to encourage customers to make purchases and develop loyalty towards a particular brand. Although sales promotion methods are widely used by firms in Cameroon, there is a notable lack of research about their actual influence on customer brand choices in the local context (Ibrahim, 2020). Although it is often believed that sales promotions may have a significant impact on customer choices in the short run, their effects on brand loyalty, market share, and overall profitability in the long term are uncertain. Moreover, the insufficient exploration of the efficacy of numerous sales promotion strategies in various product categories and among distinct customer groups in Cameroon is evident. Therefore, the primary objective of this research is to conduct a comprehensive evaluation of the influence of sales promotion strategies on consumer brand preferences in Cameroon (A case study of Media system consult). 

1.3 Objective of the study

The broad objective of the study is to evaluate  the impact of sales promotion strategy on consumer  brand preferences in Cameroon (A case study of Media system consult). The specific objectives is as follows:

To examine the types of sales promotion strategies adopted by media system consult Ltd.

To determine the effectiveness of sales promotion strategy in influencing consumer brand preferences.

To proffer strategies for designing effective sales promotion campaigns.

1.4 Research Questions

The following questions have been prepared for the following

What are the types of sales promotion strategies adopted by media system consult Ltd?

How effective is sales promotion strategy in influencing consumer brand preferences?

What are the strategies for designing effective sales promotion campaigns?

1.5 Significance of the study

The findings of the study will be significant to the following

The findings of this study will offer valuable insights and actionable recommendations for marketers and businesses operating in Cameroon, as understanding which sales promotion strategies are most effective in influencing consumer brand preferences across different product categories and demographic segments, businesses can optimize their marketing investments and tailor their promotional campaigns to better resonate with the preferences and behaviors of Cameroonian consumers.

The insights generated from this study can also inform policymakers and regulatory authorities about the effectiveness and implications of sales promotion strategies on consumer welfare and market dynamics. This may lead to the development of guidelines or regulations that ensure fair and ethical marketing practices while safeguarding consumer interests.

Lastly, findings of the study will be significant to the academic community as it will contribute to the existing body of academic literature on marketing, and also serve as a guide for future researchers.

1.6 Scope of the study

The study focuses on the impact of sales promotion strategy on consumer  brand preferences in Cameroon (A case study of Media system consult). Empirically, the study will To examine the types of sales promotion strategies adopted by media system consult Ltd.

To determine the effectiveness of sales promotion strategy in influencing consumer brand preferences of media system consult.

To proffer strategies for designing effective sales promotion campaigns in Media system consult.. 

Geographically, the study is delimited to Media system consult, Cameroon.

1.7 Limitation of the study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1.8 Definition of terms

Sales Promotion Strategies: Sales promotion strategies refer to the various marketing techniques and activities employed by businesses to stimulate consumer purchasing behavior and increase sales of their products or services. These strategies often include discounts, coupons, contests, loyalty programs, free samples, product bundling, and other promotional incentives aimed at motivating consumers to make immediate purchase decisions.

Consumer Brand Preferences: Consumer brand preferences represent the choices and inclinations of individuals or groups towards specific brands over others within a given product category. Brand preferences are influenced by various factors such as brand image, perceived quality, price, product attributes, past experiences, and exposure to marketing communications. They reflect consumers' subjective preferences and tendencies to select certain brands consistently over competing alternatives.

Effectiveness: Effectiveness refers to the degree to which sales promotion strategies achieve their intended objectives and produce desired outcomes. In the context of this study, effectiveness pertains to the ability of sales promotion techniques to influence consumer brand preferences positively, drive sales growth, enhance brand loyalty, and generate favorable long-term consumer responses.

Demographic Factors: Demographic factors are socio-economic characteristics of individuals or groups that are commonly used for segmentation and targeting in marketing research. These factors include age, gender, income, education level, occupation, marital status, household size, and geographic location. Demographic variables play a significant role in shaping consumer behavior, preferences, and responses to marketing stimuli, including sales promotion strategies.

Brand Loyalty: Brand loyalty refers to the degree of attachment, commitment, and repeat purchase behavior exhibited by consumers towards a particular brand over time. It reflects consumers' consistent preference for a specific brand despite the availability of competing alternatives in the market. Brand loyalty is influenced by various factors, including product quality, brand reputation, perceived value, customer satisfaction, and positive experiences with the brand.

Long-Term Impact: Long-term impact refers to the enduring effects and consequences of sales promotion strategies on consumer behavior, brand perceptions, and market outcomes over an extended period. It encompasses outcomes such as sustained brand loyalty, repeat purchase behavior, market share growth, and overall brand equity enhancement, beyond the immediate effects of promotional activities.