TABLE OF CONTENT
TITLE PAGE i
1.0 INTRODUCTION 1
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEMS 2
1.3 OBJECTIVE OF THE STUDY 3
1.4 RESEARCH QUESTIONS 3
1.5 HYPOTHESIS OF THE STUDY 3
1.6 SIGNIFICANCE OF THE STUDY 4
1.7 SCOPE OF THE STUDY 4
1.8 LIMITATION OF THE STUDY 4
1.8 DEFINITION OF TERMS 4
1.9 HISTORICAL BACKGROUND OF THE CASE STUDY 5
2.0 LITERATURE REVIEW 7
2.1 CONCEPTUAL FRAMEWORK 7
2.1.2 SALES PROMOTION TOOL 7
2.1.3 SALES PROMOTION STRATECGIES 10
2.1.4 FACTORS INFLUENCING SALES PROMOTION 11
2.1.5 CONSUMER BUYING BEHAVIOUR 13
2.2 THEORETICAL FRAMEWORK 14
2.2.1 SALES PROMOTION THEORY 14
2.3 EMPIRICAL FRAMEWORK 16
2.4 SUMMARY 16
2.5 RESEARCH GAPS 17
3.0 RESEARCH METHODOLOGY 18
3.1 METHOD AND SOURCES OF DATA COLLECTION 18
3.2 POPULATION SIZE 19
3.3 RESEARCH DESIGN 19
3.4 SAMPLE SIZE 19
3.5 METHOD OF DATA ANALYSIS 20
3.6 DATA COLLECTION INSTRUMENT 20
4.0 DATA ANALYSIS AND PRESENTATION OF RESULT 21
4.1 INTRODUCTION 22
4.2 PRESENTATION OF DATA 24
4.3 ANALYSIS OF RESPONSE 25
4.4 HYPOTHESIS TESTING 27
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION 28
5.1 SUMMARY 28
5.2 CONCLUSION 29
5.3 RECOMMENDATION 29
- BACKGROUND OF THE STUDY
Promotion is a tool that is used by the retailers or manufacturer to invite consumers to purchase more. The results which we get by the sales promotion is the use of high amount of reserve, inviting a lot of new customers and additional increase in sales. Although all the marketing activities are linked with sales promotions that gives outcome in growing consumer purchases and improving intermediaries or retailer’s efficiency and co-operation. According to Withier & Moore (2007) many purchase situations are so usual that shoppers conduct a very minor cognitive activity. Actually, it is hard to stimulate behavior such as brand switching or increasing in the number of units purchased. The rising interest in the use of sales promotion as a marketing strategy has resulted in a surprising growth of research in this area. For instance, there is a huge body of literature on consumer response due to sales promotions. The increasing interest in the use of sales promotion as a marketing tactic has resulted in an unusual growth of research in this area.
Sales promotions consist of a huge variety of temporary planned promotion tools which plan is generating a preferred response from the consumer (Gilbert and Jackaria, 2002). One of sales promotion tools benefit is that it can encourage the consumers to think and evaluate brand and purchase opportunities. Hence, different types of promotion tools and promotion strategies are utilized by the marketers so that they can know consumer first choice and boost their sales. This reality indicates that many consumers are easily temped when they recognize the term Sale Promotion. According to Gilbert (1999), other than price lessening, coupons or refund given by the retailers as well as other marketing tools such as free sample and buy-one-get-one-free were found to be inducing consumer buy more then they expect. Different kinds of promotion tactics are used by the sellers to attract the customers and increase their sales. The earlier studies has shows that framing of advertising messages and presentation of price information influence the consumer’s views about prices and their willingness to purchase (Das, 1992; Sinha and Smith, 2000 and Sinha et al., 1999).
This research aims to examine the partiality of consumer on different promotional tools, marketers and retailers will able to conscious of the consumer buying behavior, so that they can make use of the right and the most successful promotion techniques to catch the attention of the customer. The usual promotion tools includes samples, price discounts, buy-one-get-one-free, Coupons, in-pack premiums, price offs and so on. But In this study, we will discuss the impact of buy one get one free, price discounts, coupons and physical surroundings on the consumer buying behavior. The physical surrounding is a situational factor, which effect consumers buying behavior. These promotional techniques affect the consumer buying behavior during the shopping.
1.2 STATEMENT OF PROBLEM
Sales promotions have become a vital tool for marketers and its importance has been increasing significantly over the years. In India, sales promotions expenditure by various marketing companies is estimated to be thousands of cores and the emphasis on sales promotion activities by the Indian industry has increased by 500 to 600% during the last 3 to 5 years. In the year 2004, there were as many as 2,050 promotional schemes in the Rs 80,000 core, fast moving consumer goods (FMCG) Industry (Dang et al., 2005). In international marketing, understanding the cross-cultural differences is imperative for developing effective marketing strategies for the diverse foreign markets with a variety of cultures (Loudon and Bitta, 2002; Perreault and McCarty, 2002; Schiffman and Kanuk, 2004). Thus consumer behavior can be regarded as a utility and value producing activities (Kojima and Baba, 2001). It plays a significant effect on decisions which help in achieving the organizational objectives, and furthermore, consumers’ behavior influenced the economic social conditions within a society (Loudon and Bitta, 2002). A well as culture has “profound implications on the psyche of the consumers,” (Kumar, 2007) adaptation to cultural values leads to marketing effectiveness (Mooij and Hofstede, 2002). Therefore, recognizing the effect of cultural values on the consumer behavior is also very important. This article will try to promote the mutual relationship between sales promotion and consumer behavior in context of culture.
1.3 OBJECTIVES OF THE STUDY
The objective of this study can be stated as follows:
- To examine the effect of sales promotion as a tool for achieving organizational objectives.
- To examine how sales promotion enhance organizational profitability.
- To find out the factors that promotes or impairs the effectiveness of sales promotion.
- Can corporate performance be enhanced by sales promotion?
1.4 RESEARCH QUESTIONS
The questions for this research are
- Do sales promotion has a significant effect on the achievement of organizational objective?
- Does sales promotion enhance organization profitability?
- Does sales promotion promote factors for effectiveness?
1.5 RESEARCH HYPOTHESES
Ho: Sales promotion has significant effect on the attainment of organizational objective.
Hi: Sales promotion does not have significant effect on the attainment of organizational objective.
H0: Sales promotion has significant effect on organizational profitability.
H1: Sales promotion has no significant effect on organizational profitability
1.6 SCOPE OF THE STUDY
The scope of this study will be limited to the effect of sales promotion on organization performance. The research work will be so limited because of the limited availability of data and time.
1.7 SIGNIFICANCE OF THE STUDY
The significance of this research work is to evaluate and analysis the conceptual review of effect of sales promotion on consumer buying. It is hoped that it would contribute to the promotion of the existing frontier or boundary between human knowledge.
1.8 LIMITATION OF THE STUDY
By this time, this research work is heavily denoted to studying sales promotion as an effective tool in achieving organizational objectives. Therefore limited attention has been given to other element of sales promotion.
Another limiting factor is that it is on assumption that the question asked would be answered generally, honestly and adequately and also financial constraint.
Finally, lack of availability of text book makes it difficult to achieve the maximum objective and to obtain the desired result
1.9 DEFINATIONS OF TERM USED
- PROMOTION: Promotion is a tool that is used by the retailers or manufacturer to invite consumers to purchase more. The results which we get by the sales promotion is the use of high amount of reserve, inviting a lot of new customers and additional increase in sales.
- SALES PROMOTION: Sales promotions are action-focused marketing events whose purpose is to have a direct impact on the behavior of the firm’s consumers.
- MARKETING:-Is the performance of those activities necessary to identify consumer needs and mobilizing the organization of both material and human resources for the satisfaction of those needs at a profit to the company.
- RESEARCH:-Is the collection of information both internally and externally from the company in order to present factual and objective report to management.
- MARKETING COMMUNICATION:-Is an essential promotional tool focused on studying consumers. It explains the lifestyle, attitudes and motivation of a distinct buyer group and predicting their likely buying behavior.
- PROMOTION: Is the publicization of a product, organization, or venture to increase sales or public awareness.
- PURCHASE DECISION:-Is a collection effort or individual decision taken solely in pursuit of one’s own satisfaction and with and on behalf of others.
- COMMUNICATION:-Is a process of disseminating information from one person to another through a medium. Marketers communicate to the target market about the organization’s product through promotion programmes. Communication is divided into two categories; interpersonal and mass-communication.
- MESSAGE TRANSMISSION:-This is how a message is transmitted through a channel which could be by voice, radio, newspaper or other communication medium.
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