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Promotional Strategy Impacts on Organizational Market Share and Profitability

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  • Adesoga Dada Adefulu

    (University of South Africa)

Abstract

The paper examined promotional strategy impacts on market share and profitability in Coca- Cola and 7up companies in Lagos State, Nigeria. Survey research method was adopted. The study population was the staff in marketing positions in the selected companies. Questionnaire was administered on the samples from Coca-Cola and 7UP companies. The statistical tool employed was the univariate analysis of variance (ANOVA) to determine the statistical significance and the extent to which promotional strategy brings about variation in market share and profitability in the selected companies The study revealed the need for a better understanding of the organizational factors that determine the commitment of organizational resources to drive the achievement of marketing goals. In addition, promotional strategy measured by advertising, publicity and sales promotion affected market share and profitability at different percentage rates while Personal selling did not .The study concluded that promotional strategy suitable to a business caused variations in market share and profitability. Managers concerned about maintaining competitive edge in the market may find it appropriate to begin by examining promotional strategy adoption. Suggestions are also made for further research and study limitations are denoted. Researchers are encouraged to devote efforts to identifying what variables may modify the nature of relationship?

Suggested Citation

  • Adesoga Dada Adefulu, 2015. "Promotional Strategy Impacts on Organizational Market Share and Profitability," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(6), pages 20-33, December.
    • Handle: RePEc:dug:actaec:y:2015:i:6:p:20-33
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3032/2977
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    References listed on IDEAS

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    1. Claes Fornell & William T. Robinson & Birger Wernerfelt, 1985. "Consumption Experience and Sales Promotion Expenditure," Management Science, INFORMS, vol. 31(9), pages 1084-1105, September.
    2. Marnik G. Dekimpe & Dominique M. Hanssens, 1995. "The Persistence of Marketing Effects on Sales," Marketing Science, INFORMS, vol. 14(1), pages 1-21.
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    3. Jean Oxas Shingiro & Olawumi Dele Awolusi, 2023. "Corporate Strategies and Financial Performance among Foreign Commercial Banks in Bujumbura, Burundi," Journal of Economics and Behavioral Studies, AMH International, vol. 15(4), pages 87-105.

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