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.

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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

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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.

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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

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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)

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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.

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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.

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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.

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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.

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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.

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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.