CHAPTER 1

INTRODUCTION AND RESEARCH METHODOLOGY

1.1 Introduction
1.2 Research Problem
1.3 Statement of Research Problem
1.4 Hypotheses of the Study
1.5 Objectives of the Study
1.6 Scope of the Study
1.7 Importance of the Study
1.8 Research Methodology
1.8.1. Data Required
1.8.2. Data Source
1.8.3. Instruments and scales
1.8.4. Sampling
1.8.5. Data Analysis
1.9 Period of Study
1.10 Pilot Testing
1.11 Limitation of Study
1.12 Chapterisation
1.13 Conclusion
 Introduction and Research Methodology

Chapter - I

Introduction and Research Methodology

1.1 Introduction

Research in common parlance refers to a search for knowledge. The advanced

learner’s dictionary of current English lays down the meaning of research as “a
careful investigation or an inquiry especially through the research for new facts in any
branch of knowledge” (Redman and Mory, 1989). Some people consider knowledge
as a movement from unknown to known. It is actually a voyage of discovery. We all
possess the vital instinct of inquisitiveness that makes us probe and attend full
understanding of unknown.
Research design and methodology can be defined as the plan and structure of enquiry
formulated in order to obtain answers to research questions on business aspects. The
research plan or design constitutes the overall programme of the research process. The
design and methodology includes the framework of the entire research process,
starting from formulating objectives, developing hypotheses, to the final evaluation of
collected primary data. (D. K. Das, 2002). The research design and methodology
outlines the actual research problems and details the process for solving it. A good
research design and methodology clearly describes the techniques to be used for
selecting samples, collecting data, managing cost, and other aspects that are essential
for conducting a research. Decisions are taken depending on certain issues like the
purpose of the study and objectives, the type of data needed, the method adopted for
obtaining the data and analyzing it.
Research design and methodology is essential because it facilitates the smooth flow of
various research processes. A good design means that, good research results can be
obtained with minimum utilization of time, money and efforts. Therefore, it can be
said that, design is highly essential for planning of research activities. An ideal
research design can be developed if available resources such as time, man power and
money are considered before beginning the design. The validity of research results is
based on the initial research design and methodology. If it is not properly prepared it
will be jeopardized. The whole research process will not meet its purpose. Therefore
research design and methodology has been developed by researcher very carefully, as
it forms the foundation for the entire research process for the present study.
Considering this fact, in the present chapter researcher has explained the research

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design and overall plan of the present study. It is concerned with the setting of study
sampling techniques, data collection techniques.

1.2. RESEARCH PROBLEM

Researcher has selected this topic “A comparative study of promotional activities of

selected daily Marathi newspapers” for research because promotions are usually
embarked upon in orders to increase the sales volume in both short and long run. The
promotion should be tailored towards achieving impulse buying. In today’s era of cut
throat competition, it is necessary for every news paper organization to change
according to situation and promotion is one of the instruments available at the hand of
management. The presentation of newspaper with respective manner is important to
sustain in intense competition. Management of news paper industry would interest to
analyze promotional activities administered and its effect on readers, advertisers,
distributers. Sales promotion techniques are intended to have a direct impact on
buying behavior, which implies their short-term focus. However, every aspect of
communication by a company has some sort of effect on the company’s brand image,
and therefore any company which has recognized the importance of thinking
strategically knows that it must look beyond short-term effects. In terms of brand
building, sales promotion has traditionally been associated with a negative long term
impact due to its predominantly price-orientated nature. But, as we have seen, this
view has neglected the full scope of sales promotion methods.

1.3.1 STATEMENT OF RESEARCH PROBLEM

“A comparative study of promotional activities of selected daily marathi newspapers

in pune, kolhapur and satara ”. We are in a new era in terms of communication and
unfortunately the news industry, particularly print, have been very slow to change the
way they do business. Over the past century news-papers have played a dominant role
in public communication and are now struggling to adapt to the Internet earthquake
that has imploded the business model foundation that has proven so successful in the
past.

Here are different options for advertising through the Internet isn’t the only reason for
falling revenues. The Internet has also caused newspapers to deal with declining

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readerships as well. More and more people are going online or using wireless devices
to get news and information. That could be the surest sign that the printed medium is
on its way out. Incorporating SP strategically, given all its characteristics, may turn
out to be quite challenging for a company, but: ―Today‘s and tomorrow‘s marketing
managers really do not have the choice whether or not to use sales promotion but only
whether to use these valuable tools poorly or skillfully. How can news paper
organization’s increase in readership and attract the business advertisement? Is the
nature of promotional strategies independent to newspaper? Is there any significance
difference into increased readership due to different supplements?

1.4 Hypotheses of the study

To study the formulated objectives, the researcher has reached to the stage of
formulating following hypothesis guiding the direction of study. The present study
aims to test the following null hypothesis formulated by the researcher.

H0 1: A Promotional strategy does not lead to increase in readership and

attract more business advertisement.

H0 2: The nature of promotional strategies is similar to newspaper

H0 3: There is no significance difference into sales promotional expenditure

done by daily Marathi news papers.

H0 4: There is no significance difference into increased readership due to

different supplements.

H0 5: Promotion strategies do not intended to have a direct impact on

consumer buying behavior.

1.5 Objectives of the study

The objectives of the study, enables the investigator to avoid collecting unnecessary
and irrelevant data and concentrate only on obtaining information that is directly
connected with the object of the study

In the past, various research studies related to the marketing and sales promotion
activities have been conducted by different researchers and market experts. They have
studied the several aspects of sales promotion activities related to consumer durable

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goods, food items etc.. Cut no attempts were made in the past to study the sales
promotional activities concerned with the newspapers, especially local language
newspapers. Therefore, the present study was carried out with the following
objectives –

1) To understand the nature of sales promotional strategy of daily Marathi

newspapers.
2) To examine the comparative growth of newspapers on the basis of a number
of readers, penetration.
3) To evaluate the impact of promotional strategies on stakeholders such as
readers, advertisement agencies, distributors and clients placing
advertisements in newspapers.
4) To develop promotional mix for newspaper companies and newspaper.
5) To evaluate the impact of promotional strategies and newspaper readers
buying behavior.

1.6 Scope of the study

In a competitive market, sales promotion comes handy to a marketer, to solve several

of his short term hurdles. Short term because, the impact of sales promotion measures
are not that durable and lasting like the results obtained through advertising and
personal selling. Sales promotion by and large is understood and practiced as a
catalyst and as the supporting facility to advertising and personal selling.

A study related to sales promotion functions is very vast and to study its effects on
various consumer goods is also very comprehensive and can be studied from different
angles. Therefore, the scope of the present study is limited to the effects of sales
promotion activities related to “daily Marathi newspapers”. Apart from this, with a
view to give justice to the study and to get reliable information in the desired time
frame, the researcher has decided to focus his attention only to the Marathi
newspapers being published in Pune, Kolhapur and Satara districts.

Many newspapers are published in these districts of western Maharashtra, which are
predominantly Marathi newspapers and they are competing with each other for
market share. These newspapers are, daily Sakal, daily Pudhari, daily Loksatta and
daily Maharashtra Times. These prominent newspapers have been selected for the
study purpose. The present study revolves around the concept of sales promotion

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strategies implemented by these newspapers companies in the above said districts.

Through the present study researcher has also assessed the buying behavior of readers
of Marathi newspapers. Serious attempts have been made by the researcher to cover
the number of prominent Marathi newspapers to remove any kind of bias that may
enter due to few types of Marathi newspapers.

1.7 Importance of the Study

After review of the available literature related to the selected topic for the study, one
important question has emerged that, either advertising or sales promotion activity
influences on the brand image of newspapers? A question that surely needs more
empirical answer. The present study is significant to get answer for this question. One
should know that a local newspaper companies can barely evaluate sales promotion
activity from the campaign due to the influencing factors such as increased
competition and pressure from retailers.

The most recent literature on sales promotion stresses the need to distinguish between
two types of promotions, that is monetary and nonmonetary sales promotion
activities; because there are some important differences between two of these.
Monetary sales promotion activities (for example – free product, gift coupons etc) are
primarily related to utilization benefits, which have an instrumental, functional and
cognitive nature. Therefore, researcher has thought that, there is a need to study these
two types of sales promotion activities, which would help in better understanding of
the concept of sales promotion strategy and comparison would be conducted on the
basis of readership, penetration, brand positioning, and the class of readers of daily
Marathi newspapers.

The present study would be helpful in generating innovative ideas with a view to
acquire better knowledge to evaluate the impact of promotional strategies on
stakeholders such as readers, advertisers and agencies, distributors, clients placing
advertisements in the Marathi daily newspapers. This study is also helpful in hell
developing promotional mix for newspaper industry.

Efficiency and effectiveness of every newspaper is very much dependent on the sales
promotional activity of that organization. The present study is important to the
organization in the following manner.

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i) The present comparative study related to sales promotion of Marathi

daily newspapers is important to understand the opinions of readers,
advertisement agents and distributors regarding promotional activities
conducted by newspaper companies.
ii) The present study would provide a proper guideline for promotion policy
makers to prepare future plan for sales improvement.
iii) The study would be helpful to examine the effectiveness of the sales
promotion activities carried out by the Marathi newspaper companies.
iv) Analysis of sales promotional activities would provide the remedial
measures to companies for enhancing sales promotion strategies.
v) The study would be also helpful to find out the lacking of marketing
departments of the selected Marathi newspapers companies.

Apart from these, the present study would be useful addition to the literature on the
topic which is particularly scarce in the case of sales promotion activities related to
Marathi daily newspapers.

1.8 Research Methodology

Research is undertaken with the most professional manner. More than a set of skills, it
is a way of thinking, critically examining the various aspects of professional works. It
is a habit of questioning what you do and a systemic examination of the observed
information to find answers with a view to instituting appropriate changes for a more
effective professional service. The research study is a process of collecting, analyzing
and interpreting information to answer questions.

The present research study is the descriptive type in the methodology followed for
the study and includes qualitative and quantitative information which focuses on the
various aspects of sales promotion activities related to karate daily newspapers
published in Pune, Satara and Kolhapur districts; through a self administered and
structured survey instrument (i.e. interview schedule). The questions have been
developed to get responses specific to objectives of the study that are proposed to
fulfill. For the purpose of analysis primary data was collected directly from the
distributors, readers and advertisers and add agencies.

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1.8.1 DATA REQUIRED

Data required for research for primary and for the study secondary data.
The data required for the study is opinion of stakeholders of newspaper industries. i.e.
opinion of readers , news paper distributors, advertisement agencies, manager of
respective news paper, clients who advertise the product directly in the news paper
The Opinions of readers regarding their newspaper reading habitat, choice of news
paper, occasion to read news paper, perception about good news paper, family
member preferences towards news papers and supplement of respective newspaper,
factors influencing readers is required.
The opinion of distributor regarding preferences of customers towards brand of
newspaper, supplement preference, occasion preference and factors influencing
distributors are required.
From Advertising agencies the data regarding functioning of advertising agencies,
business of agencies, perceptual clients’ preference, and factors influencing
advertising agency is required
The Advertising clients who place the direct advertisement to news papers from them
the data of factors that influencing advertising in news paper is required.
The data of promotional technique is used by sample newspaper for last ten years,
sales promotion expenditure of sample news paper, circulation of sample news paper,
supplements introduced by sample news paper, number of distributors, population
and literacy rate of last ten year is required.

1.8.2. DATA SOURCES:

The researcher has used two sources for data collection such as:
a. Primary source
b. Secondary source
a. Primary source:-
From amongst the data required following data has collected using primary
resource.
The data required for the study is opinion of stakeholders of newspaper industries.
i.e. opinion of readers ,news paper distributors, advertisement agencies, manager of
respective news paper, clients who advertise the product directly in the news paper

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The Opinions of readers regarding their newspaper reading habitat choice of news
paper , occasion to read news paper, perception about good news paper, family
member preferences towards news papers and supplement of respective newspaper,
factors influencing readers is required.
The opinion of distributor regarding preferences of customers towards brand of
newspaper, supplement preference, occasion preference and factors influencing
distributors are required.
From Advertising agencies the data regarding functioning of advertising agencies,
business of agencies, perceptual clients preference, factors influencing advertising
agency is required
The Advertising clients who place the direct advertisement to news papers from
them the data of factors that influencing advertising in news paper is required.
b. Secondary source:-
From amongst the data required following data has collected using secondary
resource.
The data of promotional technique is used by sample newspaper for last ten years,
sales promotion expenditure of sample news paper, circulation of sample news paper,
supplements introduced by sample news paper, number of distributors, population
and literacy rate of last ten year is required.

1.8.3 INSTRUMENT AND SCALES

For the fulfillment of objectives of research study schedule is prepared. Instrument

used for data analysis are tables, graphs, pie-carts, and percentages
1.8.4 Sample Size:
Sampling calculation for the newspaper readers and newspaper distributors
Using the following formula the sampling of newspaper readers and distributors has
been calculated per sample district.
n= (Zs/e)2
Z=1.60 at 10% estimated error
S=Assumed standard deviation i.e. 0.66
e = Assumed error 10%

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The sample calculated per district of readers and distributors are to be 117.15 rounded
off to be 118.
The total samples of readers and distributor counted to be 354 each per sample
district.
Using the same formula the sample size of advertisers has been calculated which
comes to 117.15 rounded off to 118.
Besides this the officials and managers of every sample newspaper in sample district
has met to collect required secondary data for hypothesis testing.
Sampling Scenario:
The data analysis presented in this thesis is based on the following sample size.
Sr. Geography Newspaper Newspaper Advertising Advertising Total
Readers Distributors Clients Agencies
1 Satara 217 116 53 11 397
2 Kolhapur 230 161 52 14 457
3 Pune 210 333 50 29 622
Total 657 610 155 54 1476

Besides this the managers of each sample newspaper from each sample district were
visited to collect secondary data required for the study.
Around 54 advertising agencies were also visited to find the nexus of agencies with
newspapers for their respective clients advertisements.

DATA ANALYSIS
With a view to fulfillment of study objectives, the primary data (collected through
interview schedule) have been analyzed with the help of tables. Simple percentage
method has been used for the tabulation of primary data, that is a data analysis has
been formulated, prepared using tables. The data have been also analyzed by using
measures of central tendency, measures of dispersion and the hypothesis have been
tested using independent sample t-test and chi-square test. The present research study
used diagnostic research design and inferential approach have been used to collect
the data. Diagnostic research is the method of research which evaluates the problem
of an organization and diagnoses it with the help of suggestions.

1.8.4 Period of Study:

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Study was conducted during 2012 to 2015 and data from samples were collected from
June 2013 to December 2014. Beside this the secondary data was collected for ten
years from 2004 to 2013.

1.10 A Pilot Study

The Pilot Study is an exploratory study done preliminary, to help in refining the
problem, develop or refine hypothesis or test and refine the data collection methods. It
is always desirable, if at all possible, to conduct a pilot study before administering a
self-completion questionnaire or structured interview schedule to the selected sample.
In fact, the desirability of piloting such instrument is not solely to do with trying to
ensure that questions operate well, piloting also has a role in ensure that questions
operate well, piloting also has a role in ensuring that the research instrument as a
whole function well. Pilot study may be particularly crucial in relation to research
based on the self-completion questionnaire, since there was not an interviewer present
to clear up any confusion. Also, with interview, persistent problems may emerge after
a few interviews have been carried out and these can then be addressed. Considering
this fact, researcher has also conducted a pilot study. A pilot study was conducted on
10 managers, 100 readers, 100 distributors, 50 advertisers for the feasibility of the
study. The objectives of the pilot study were-

1) To assess the feasibility of the tool.

2) To test the tool for content and language.

3) To assess the time taken for the study and

4) To identify the problems occurred during the data collection.

The important observations during the pilot study were noted and necessary
corrections were made in the questionnaire.

RELIABILITY OF SCALES
SCHEDULE FOR NEWS PAPER READERS
The question on assessing buying behavior of news paper readers was developed
using fourteen parameters, opinions were measured on five point likert type scale.
Reliability Statistics
Cronbach's Alpha N of Items

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.674 13

The scale containing fourteen items seeking the opinion on the extent of parameters
contribute to the decision of readers on good newspaper. The fourteenth parameter
was, ‘other’ received very poor response, hence it was not considered for reliability
analysis. The thirteen parameters found 0.674 reliability using Cronbach’s Alpha. To
enhance the reliability of scale used two items i.e. availability and number of offers
carrying in newspaper have deleted and reliability counts to 0.764 with eleven items.
Reliability Statistics
Cronbach's Alpha N of Items

.764 11

The eleven items kept as final for final data collection.

The question further executed to seek specific opinion about factors that influencing
readers with respect to a specific news paper. The structure contents twenty one
parameters. The reliability analysis is as follows.

Reliability Statistics
Cronbach's Alpha N of Items
.731 21

The Cronbach’s Alpha counts to be 0.731 of these twenty one items. The items
carrying negative correlations those are, price discounts attract me to select this paper,
free samples and online availability of that paper influences me more were deleted
from the scale.
Reliability Statistics
Cronbach's Alpha N of Items
.829 18

The final eighteen items retained with 0.829 Cronbach’s Alpha to collect final data.
The wording of few statements was modified to avoid biased understanding of sample
respondents.

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Rest questions in the schedule to seek opinions of news paper readers were kept as it
is. One more question structured follows were added to support the testing of
hypothesis number five in the research design.
Every news paper has its direct and indirect advertisement of news papers to increase
their sales. To what extent these promotional efforts have an impact on selection of
news papers. The opinions of samples were proposed to take on five point likert type
scale.
SCHEDULE FOR DISTRIBUTOR
Five statements were constructed to know the opinion of distributors on factors
influencing on distributors. The opinion was sought on five point likert type scale.
The reliability counted to be 0.595.
Reliability Statistics
Cronbach's Alpha N of Items

.595 5
It has found that one variable on brand image leads to influence on distributor has
very low correlation with other variables hence deleted from the list. The Cronbach’s
Alpha measured to be 0.649.
Reliability Statistics
Cronbach's Alpha N of Items

.649 4
The four items were kept as it is for final data collection.

SCHEDULE FOR ADVERTISING AGENCIES

To assess the opinions of advertising agencies on the factors that influence advertising
agencies to go for a particular paper for advertising the ads of their clients, fourteen
statements were constructed. The reliability of scale using Cronbach’s Alpha is
calculated to be 0.961.
Reliability Statistics
Cronbach's Alpha N of Items

.961 14

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Since the reliability is good hence all the fourteen items were kept as it is for the final
data collection.
Question number nine was framed to measure the extent aspects to be considered
while selecting a paper for clients advertisement was initially not defined well were
decided to take on preferential order.

SCHEDULE FOR CLIENTS PLACING ADVERTISE IN NEWS PAPER

Some people may directly prefer to place their advertisements into the newspapers.
The opinions of such clients were sought on fourteen parameters. Opinions were
taken on five point likert type scale.
Reliability Statistics
Cronbach's Alpha N of Items

.853 14

The reliability found to be 0.853 of the said fourteen items. One item found to have
negative correlation. The factor, gift voucher after achieving the target, which was not
applicable to the individual clients, was removed.

Reliability Statistics
Cronbach's Alpha N of Items

.877 13

After deleting the said variable the reliability measured to be 0.877. The rest thirteen
items were carried forward as it is for final data collection.
1.11 Limitations of the study:

The results of study are bound to be affected because of the following limitations
however these are marginal and do not substantially affect the analysis and
suggestions.

1) The study is restricted to the selected daily Marathi newspapers published in

Pune, Satara and Kolhapur districts and therefore the results cannot be
generalized to other districts of Maharashtra.

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2) Some biased responses exist whilst feeling of the questionnaire, however, due
care was taken to ensure the accuracy of data provided by respondents.

3) The present study is limited for the year 2004-2013 only.

1.12 The chapterization of the study report

The report of the present study has been divided into five chapters. The details of
these chapters have been explained in the following paragraphs.

Chapter 1 Introduction and Research Methodology

This chapter deals with the theoretical perspectives of sales
promotion; its significance, objectives of sales promotion, tools
and techniques of sales promotion. This chapter also deals with
the research design and methodology. This includes
significance of the study, objectives, hypothesis, limitations,
scope of the study and also explanation about methods of data
collection.

Chapter 2 Review of literature and conceptual framework

This chapter deals with the review of literature related to the
selected study topic.

Chapter 3 Profile of daily Marathi newspapers in Satara,Sangli and

Pune Districts in Maharashtra
This chapter provides the profile of daily Marathi newspapers
and general information regarding newspaper companies in
Maharashtra.

Chapter 4 Data analysis and interpretation

In this chapter of the collected primary data has been properly
analyzed, elaborated and presented in a tabular form.

Chapter 5 Major Findings, conclusions and suggestions

In this chapter researcher has presented the major observations
and made conclusions accordingly.
1.13 Conclusion

While resorting to sales promotion, it is essential that some dimensions are kept in
focus. Sales promotion should form part of a well planned and well integrated com-

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munication/promotion strategy. It must be remembered that sales promotion is just

one element of the marketing communication mix of the firm. When it blends with the
other elements, it is very productive. But, when it is handled as an independent tool
available at the beck and call of the marketing man, it can harm the long-term
interests of the product/brand. So, sales promotion must be used judiciously ensuring
that the money spent on sales promotion adds to the strength of the total
communication, promotion efforts of the firm.

In this chapter researcher has explained the theoretical background of sales promotion
and he has also explained the research design and methodology of the present study.

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