IMPACT OF SALES PROMOTION STRATEGIES ON SALES PERFORMANCE OF PHARMACEUTICAL FIRM IN LAGOS AND OGUN STATES, NIGERIA

Abstract

This study investigates the impact of sales promotion strategies on the sales performance of pharmaceutical firms in Lagos and Ogun States, Nigeria. A descriptive survey research design was employed, with data collected via a structured questionnaire administered to 192 staff members selected through a multi-stage sampling technique from 32 randomly selected pharmaceutical firms. The data were analyzed using both descriptive and inferential statistics, with multiple regression analysis employed to test the hypothesis. The findings reveal a strong positive relationship between sales promotion methods and sales performance (R = 0.862, R² = 0.726), indicating that the promotional strategies explain 72.6% of the variance in sales performance. Specifically, discount rates, discount offers, and free samples and bonuses were found to have a significant positive impact on sales. In contrast, demonstrations, loyalty programs, and premium promotions showed no significant effect. Surprisingly, innovation and social media shows had a statistically significant negative relationship with sales performance, suggesting a potential misalignment with the target market or ineffective execution in this context. The study concludes that while sales promotions are potent tools for driving sales performance in the Nigerian pharmaceutical industry, their effectiveness is highly dependent on the type of promotion used. The study recommends that firms conduct regular market research, tailor promotions to specific customer segments, and continuously evaluate campaign effectiveness.