Name: Chandan Shukla (2008 -2010)

Title: An Empirical study on impact of advertising Vs Sales Promotion in consumers buying behavior

 

Executive Summary

The report is based on the primary data collection research, which is based upon the impact of advertising as well as sales promotion in the consumer buying behavior. The main objective of this research was to determine what attracts more to a consumer Advertising of the product or Sales promotion when the purchase decision is made.

 

A questionnaire is made to gather the information which is a primary method for collection of data. Collecting data through questionnaire is the most appropriate method. This questionnaire includes:

a. Contact information about the respondent and

b. 10 questions.

This is a sufficient number which enabled me to analyze and derive the answers pertaining to my objective.

In accomplishing the objectivity, market visits and interactions were made with the     consumer that included variety of consumers and accordingly tried to analyze the consumer buying behavior when he goes to buy certain product. What made customer to buy certain products which he never thought to buy. Various conclusions which we came up with such as Advertising and Sales Promotion play an important role. The Age factor plays a significant role for the selection of products from advertising and sales promotion. But the impact of sales promotion is more because they interact with the product more in this. Hence the touch and feel of product is very important in Indian market. Otherwise people do not buy the products. All these factors led me to conclude that the Sales promotion and advertising are not affective at some purchase stages. The study should be extended to different product categories in fast moving consumer durables. The study will be conclusive if Fast Moving Consumer Goods (FMCG) consumers are also considered for study. The profiles of the respondents, the geographic, demographic or psychographic are to be considered for further studies.

 

Objectives:

The Dissertation Report will highlight the effectiveness and applicability factors of sales promotion and advertisement techniques. The research study is of empirical in nature. It has the following objectives:

 

  1. To investigate the effectiveness of sales promotion technique on purchase decision.
  2. To study the effectiveness of Advertising on the purchase decision.
  3. To compare the effects of the both techniques.

 

Recommendations:

v  Based on hypothesis an intense AIDA model needs to be adopted the AIDA model (Awareness, Internet, Desire, and Action). Customers are aware of majority of products brand to create the awareness regarding Product.

v  In the findings of my survey it shows that people are keener towards the sales promotion activity which help customers at some point, hence more and more sales promotion can be done.

v  Giving free gifts for the customer.

v  Sales promotion will do more for a brand’s reputation by encouraging relationships with consumers. Hence forth promotional activity is important for making brand reach to every individual.

v  Since majority of the customers is in favor of live demonstration of Product. They should prioritize more in rest of the sales promotional tools to attract more customers work on it.

v  Sales promotional strategies should be evaluated twice. First at the stages of implementation and secondly after the final performance because implementation control’ will suggest improvements during the application of the promotional strategy, while ‘performance control’ will be a guide for the future. The push and pull promotional strategies may be used to enhance sales.

Limitations:

v  The research is confined to a certain parts of Lucknow due to time constraints and does not necessarily shows a pattern applicable to all the places.

v   Some respondents were reluctant to divulge personal information which can affect the validity of all responses.

v  In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

 

Conclusion:

After the survey, the following were the conclusions:

v  The hypothesis is accepted i.e. effectiveness of sales promotion plays an important role on consumers buying behavior (Proved on page no.39).

v  Sales promotion is a most important aspect for any company, and the impact of sales promotion is more because in this the people interact with the product more.

v   The touch and feel of product is very important in Indian market, otherwise people do not buy the products that is also the reason why the effectiveness of sales promotion is more than advertising. The Sales promotions and advertising are not effective at some purchase stages.

v  The Age and gender factor plays an important role for the selection of products with the help of advertising and sales promotion.

v  Reputation is incredibly important. Without this a brand is nothing but a product Reputation is best enhanced through experience. What you feel, touch and smell. If consumers try it, buy it and interact with it, they will engage more with a brand than seeing an advertisement about it.

v  It shows that Liking an advertisement does not the guarantee of sell. Only few of them actually buy after seeing an ad.

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The above article was extracted from dissertations in Marketing, Finance, Human Resources, Strategy, Information Systems by the students from Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

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