scivce n tech

8/8/2019 Scivce n Tech

http://slidepdf.com/reader/full/scivce-n-tech 1/8

Science & Technology Mini Research

ADVERTISEMENT AND PROMOTIONS

Advertising is a form of communication intended to persuade an

audience (viewers, readers or listeners) to purchase or take some action

upon products, ideas, or services. It includes the name of a product or

service and how that product or service could benefit the consumer, to

persuade a target market to purchase or to consume that particular

brand. These messages are usually paid for by sponsors and viewed via

various media. Advertising can also serve to communicate an idea to a

large number of people in an attempt to convince them to take a certain

action. Commercial advertisers often seek to generate increased

consumption of their products or services through branding, which

involves the repetition of an image or product name in an effort to

associate related qualities with the brand in the minds of consumers. Non-

commercial advertisers who spend money to advertise items other than a

consumer product or service include political parties, interest groups,

religious organizations and governmental agencies. Nonprofit

organizations may rely on free modes of persuasion, such as a public

service announcement. Modern advertising developed with the rise of

mass production in the late 19th and early 20th centuries. Mass media can

be defined as any media meant to reach a mass amount of people.

Different types of media can be used to deliver these messages, including

traditional media such as newspapers, magazines, television, radio,

outdoor or direct mail; or new media such as websites and text messages.

In 2010, spending on advertising was estimated at more than $300 billion

in the United States and $500 billion worldwide. Internationally, thelargest ("big four") advertising conglomerates are Interpublic, Omnicom,

Publicis, and WPP. Sales promotions are another way to advertise. Sales

promotions are double purposed because they are used to gather

information about what type of customers you draw in and where they

are, and to jumpstart sales. Sales promotions include things like contests

and games, sweepstakes, product giveaways, samples coupons, loyalty

programs, and discounts. The ultimate goal of sales promotions is tostimulate potential customers to action.Group 6 1 PGDM-IIRoll No. 40-46 IMDR

http://communication/

http://persuade/

http://brand/

http://consumption/

http://products/

http://services/

http://consumers/

http://organizations/


http://announcement/


http://production/

http://media/

http://media/

http://interpublic/

http://omnicom/

http://publicis/

http://group/

http://communication/

http://persuade/

http://brand/

http://consumption/

http://products/

http://services/

http://consumers/





http://production/

http://media/

http://media/

http://interpublic/

http://omnicom/

http://publicis/

http://group/




Impact of Advertising and Promotion

Advertising effectiveness means different things to the groups responsible

for its different effects. In fact, effective advertising must achieve all four

goals, delivering messages to the right audience, thereby creating sales at

a profit. Businesses can target sales promotions at three different

audiences: consumers, resellers, and the company's own sales force.

Sales promotion acts as a competitive weapon by providing an extra

incentive for the target audience to purchase or support one brand over

another. It is particularly effective in spurring product trial and unplanned

purchases. Most marketers believe that a given product or service has an

established perceived price or value, and they use sales promotion to

change this price-value relationship by increasing the value and/or

lowering the price. Compared to the other components of the marketing

mix (advertising, publicity, and personal selling), sales promotion usually

operates on a shorter time line, uses a more rational appeal, returns a

tangible or real value, fosters an immediate sale, and contributes highly to

profitability. In determining the relative importance to place on sales

promotion in the overall marketing mix, a small business should consider

its marketing budget, the stage of the product in its life cycle, the nature

of competition in the market, the target of the promotion, and the nature

of the product. For example, sales promotion and direct mail are

particularly attractive alternatives when the marketing budget is limited,

as it is for many small businesses. In addition, sales promotion can be an

effective tool in a highly competitive market, when the objective is to

convince retailers to carry a product or influence consumers to select itover those of competitors. Similarly, sales promotion is often used in the

growth and maturity stages of the product life cycle to stimulate

consumers and resellers to choose that product over the competition—

rather than in the introduction stage, when mass advertising to build

awareness might be more important. Finally, sales promotion tends to

work best when it is applied to impulse items whose features can be

judged at the point of purchase, rather than more complex, expensiveitems that might require hands-on demonstration.Group 6 2 PGDM-IIRoll No. 40-46 IMDR

http://%22%22/

http://%22%22/

http://%22%22/

http://%22%22/

http://%22%22/

http://%22%22/

http://%22%22/

http://%22%22/




RESEARCH

Research in layman terms refers to a search for knowledge. Research can

also be defined as a scientific and systematic search for the pertinent

information on a specific topic. The purpose of research is to discover

answers to questions through the application of scientific procedures.

Types of Research

1) Descriptive vs. Analytical: Descriptive research includes surveys and

fact finding enquiries of different kinds. The major purpose of

descriptive research is the description of the state of affairs as it

exists at present. The main characteristic of this method is that the

researcher has no control on the variables; he can only report what

has happened or is happening. In Analytical research the researcher

has to use facts and information already available, and analyse

Group 6 3 PGDM-IIRoll No. 40-46 IMDR




these to make a critical evaluation of the material. Our research

concerned with the assignment is Analytical.

2) Applied vs. Fundamental: Applied research aims at finding a solution

for an immediate problem facing a society or an industrial/business

organisation, whereas fundamental research is mainly concerned

with generalization and with the formulation of a theory. Our

research is of applied type.

3) Quantitative vs. Qualitative : Quantitative research is based on the

measurement of quantity or amount. It is applicable to phenomenon

that can be expressed in terms of quantity. On the other hand

Qualitative research is concerned with qualitative phenomenon. In

our research we have used Quantitative means to analyse and

collect the data.

4) Conceptual vs. Empirical: Conceptual research is that related to

some abstract idea(s) or theory. It is generally used by philosophers

and thinkers to develop new concepts or to reinterpret existing

ones. On the other hand Empirical research relies on experience or

observations alone, often without due regard to system and theory.

It is data-based research, coming up with conclusions which are

capable of being verified by observation or experiment. For our

research it falls in empirical research.

RESEARCH METHODOLOGY

It is a way of systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In

it we study the various steps that are generally adopted by a researcher in





studying his research problem

along with the logic behind

them. Why a research study

has been undertaken, how

the research problem has

been designed, in what way

and why the hypothesis has

been formulated, what data

have been collected and what

particular method has been

adopted and host of similar

questions are usually

answered when we talk of

research methodology

concerning the problem at

hand.

RESEARCH PROCESS

The chart indicates that the

research process consists of a

number of closely related





activities but such activities continuously overlap rather than following a

strictly prescribed sequence. The following order concerning various steps

provides a useful procedural guideline regarding the research process (1)

formulation the research problem; (2) extensive literature research; (3)

Developing the hypothesis; (4) Preparing the research design; (5)

determining sample design; (6) collecting the data; (7) execution of the

project; (8) analysis of the data; (9) hypothesis testing; (10) generalization

and interpretation; (11) preparation of the report and presentation of the

result.

For our research we conducted interviews in Laptech solutions pvt. Ltd. in

Pune. They have 6 shops here and we got the data of all the 6 shops from

mail from their main shop. We have chosen this firm because it has its

offices in many places across Pune. We visited one shop of Laptech in

Ganesh Khind and we personally interview the manager there for

collecting data. The research is about impact of advertisement and

promotions on sales. So according to the research process we move

forward by formulating the research problem. The advertising and

promotion which they do include: e-advertising, print media discounts and

offers.

Formulation the research problem

The assignment is about conducting a mini research on any of the given

management areas. We selected Advertisement and Promotions as the

matter of study and the immediate impact on sales due to the

advertisements.

Developing the hypothesis

Here for proving the impact of advertisements on Sales we formulate the

Hypothesis that “Sales after advertisement is less than sales before

advertisement”.

Preparing the research design





Here we had to collect the data about Sales figures before and after the

advertisement campaigns. So we selected a firm which advertised

frequently. We had only some questions to ask so we took personal

interview of the manager there. After the collection of Data we had to do

the hypothesis testing of the data so that we can reach to a conclusion

Determining sample design

We had to do a mini research so we didn’t intend to collect large amount

of data so we took 6 samples for conducting small sample test. We used

deliberate and convenience sampling as we needed specific data and thus

we had to look for it

Collecting the data

All sales figure in Rs.thousand(' 000)

Branches of LaptechGaneshKhind Kondhwa

BundGarden Wanawadi Kothrud

S.B.Road

Sales before Advertising andpromotion 4289 2836 5342 3186 4855 5094Sales after Advertising andpromotion 4568 2974 5860 3075 5586 5682

Execution of the project

Our group went to the office of Laptech and conducted an interview to

collect the above data. The analysis and hypothesis testing is given below

Analysis of the data & Hypothesis testing

We analyse that on 5 occasions the sales have gone up.

Let sales before advertising and promotion be represented as X and the sales after advertising and

promotion be represented as Yand then taking the null hypothesis that advertising and promotion doesn’t bring any improvement insales, we can write:





H0 : u1=u2

H1 : u1<u2

Now, using paired t test we can work out

Branches Sales before(X) Sales after(Y) Difference(D) D^2

Ganesh Khind 4289 4568 -279 77841Kondhwa 2836 2974 -138 19044

Bund Garden 5342 5860 -518 268324

Wanawadi 3186 3075 111 12321

Kothrud 4855 5586 -731 534361

S.B. Road 5094 5682 -588 345744

n=6 -2143 1257635

Dbar -357.1666667

sigma diff 313.7600463

t -2.788360394

degrees of freedom=(n-1) 5

Generalization and interpretation

As Ha is one sided we shall apply a one tailed test for determining the rejection region at 5% levelof significance which come to as under, using table of t-distribution fro 5 degree of freedom: R: t<-2.015 The observed value of t is -2.788 which falls in the rejection region and thus, we reject H0 at5% level and conclude that advertising and promotion has been successful.

Conclusion

From the hypothesis testing we conclude that there is an impact on Sales

due to advertisements. The Sales tends to increase due to it and the

amount of increase depends on variety of factors and the type of

advertisement.


scivce n tech

Documents