An Empirical study on impact of advertising Vs Sales Promotion in consumers buyi ng behavior Posted by Skyline Business School / July 31,

2010 / in Dissertation Tags: Disseration reprt marketing Name: Chandan Shukla (2008 -2010) Title: An Empirical study on impact of advertising Vs Sales Promotion in consume rs 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 beh avior. The main objective of this research was to determine what attracts more t o a consumer Advertising of the product or Sales promotion when the purchase dec ision 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 appropriat e 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 p ertaining 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 ana lyze 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 conclus ions which we came up with such as Advertising and Sales Promotion play an impor tant 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 o f product is very important in Indian market. Otherwise people do not buy the pr oducts. All these factors led me to conclude that the Sales promotion and advert ising are not affective at some purchase stages. The study should be extended to different product categories in fast moving consumer durables. The study will b e conclusive if Fast Moving Consumer Goods (FMCG) consumers are also considered for study. The profiles of the respondents, the geographic, demographic or psych ographic are to be considered for further studies. Objectives: The Dissertation Report will highlight the effectiveness and applicability facto rs of sales promotion and advertisement techniques. The research study is of emp irical in nature. It has the following objectives: 1. To investigate the effectiveness of sales promotion technique on purchas e 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 pr oducts brand to create the awareness regarding Product. v In the findings of my survey it shows that people are keener towards the sale s promotion activity which help customers at some point, hence more and more sal es promotion can be done. v Giving free gifts for the customer. v Sales promotion will do more for a brand s reputation by encouraging relationship s 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 m ore customers work on it. v Sales promotional strategies should be evaluated twice. First at the stages o f implementation and secondly after the final performance because implementation control will suggest improvements during the application of the promotional strate gy, while performance control will be a guide for the future. The push and pull promo ional strategies may be used to enhance sales. Limitations: v The research is confined to a certain parts of Lucknow due to time constraint s and does not necessarily shows a pattern applicable to all the places. v Some respondents were reluctant to divulge personal information which can af fect the validity of all responses. v In a rapidly changing industry, analysis on one day or in one segment can cha nge 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 imp ortant 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 mo re. 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 a re not effective at some purchase stages. v The Age and gender factor plays an important role for the selection of produc ts with the help of advertising and sales promotion. v Reputation is incredibly important. Without this a brand is nothing but a pro duct Reputation is best enhanced through experience. What you feel, touch and sm ell. If consumers try it, buy it and interact with it, they will engage more wit h a brand than seeing an advertisement about it. v It shows that Liking an advertisement does not the guarantee of sell. Only fe w of them actually buy after seeing an ad.