Effect of marketing communication mix on sales performance of soft drink companies in Dar Es Salaam, Tanzania
Seukindo, Neema Omary
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The most fundamental feature of any company is sales of their product(s) because it support any business’ survival. Selling entails the use of advertising, sales promotions, publicity and direct marketing. Companies respond differently with their marketing communication mix decisions even when subjected to almost the same macro environmental factors. The macro environmental factors like competition and market factors facing the soft drink companies have not been addressed successfully due to changing global environment and development. The study sought to determine the effect of marketing communication mix on sales performance of soft drink companies and was directed by the following five specific objectives; to establish the effect of advertising on the sales performance of soft drink companies in Tanzania, to determine the effect of sales promotion on the sales performance of the soft drink companies in Tanzania, to determine the effect of direct marketing on the sales performance of soft drink companies in Tanzania, to examine the effect of publicity on the sales performance of soft drink companies in Tanzania and the fifth objective was the moderating effect of the macro environmental factors on the relationship between marketing communication mix and sales performance of the soft drink companies in Tanzania. The study used the Response Hierarchy theory, Porter’s 5 Forces theory and AIDA model, to guide the study. The study adopted explanatory and descriptive research designs. The target population for the study was 37 soft drink companies in Dar es Salaam, Tanzania and a census survey was used to select the target population. Structured and unstructured questionnaires were administered to the respondents. Descriptive and inferential statistics were used to analyze data of the study. Descriptive statistics included measures of dispersion and measures of central tendency, reliability of data collection instrument was measured by Cronbach Alpha and researcher ensured the 0.7 threshold was not exceeded. Inferential statistics at p≤ 0.05significance level was used. Multiple regression analysis was applied to test the hypotheses. The results of the hypotheses tested indicate that only direct marketing had a statistically positive significant effect on sales performance. Sales promotion and publicity had a positive statistical insignificant effect on sales performance. However, the study found that there was a statistically negative insignificant effect of advertising on sales performance. The moderating variable, macro environment had a positive moderating influence on the relationship between the independent variables and the dependent variable. The study concluded that the macro environmental factors positively affect the relationship linking marketing communication mix and sales performance of soft drink companies in Dar es Salaam, and thus it is important that soft drink companies develop market communication strategies to adapt well to the macro environment and fit well in the market. The study suggests that future research should analyze specifically; impact of intergrated market communication mix or direct marketing technique in soft drink industry. Other researchers should consider non parametric tests as well as expansion of scope for generalizability.