TITLE OF RESEARCH PROPOSAL

“MARKETING PROMOTION STRATEGIES OF ENTREPRENEURS: A STUDY

OF STARTUPS IN PALGHAR DISTRICT OF MAHARASHTRA.”

1. INTRODUCTION:
The driving force behind selecting the topic entitled “Marketing Promotion Strategies of
Entrepreneurs: A study of Startups in Palghar District of Maharashtra, is the huge growth of the
Startups in India in the post liberalization era especially after Startup India programme launched
by Government of India, in 2016. This massive growth has led to change in technology, different
types of products and service, stiff competition amongst Startup and well established companies,
MNCs, etc.
After launching or starting the Startup, the entrepreneurs has accomplished all the things
like finance, human resources, sources of raw material, etc. Now, the entrepreneur’s next
attention is to decide “how to use marketing to promote the enterprise's product/ service”. “This
task requires that the entrepreneur design an effective marketing promotion strategy for the new
enterprise”. “An effective marketing promotion strategy is absolutely necessary because it will
enhance the Startup prospects for survival during its first year of operation, and will greatly
facilitate the flow of sales revenues needed to assure the new venture's continuing existence into
its second year, its third year, and so on”. “The absence of such continuing streams of sales
revenues will result in the decline and eventual death of the new venture”. It is through
marketing promotion venture’s offering are reaching to the target consumers. The venture
collects the cash in return when their offerings are traded.
A Startup has a new service or product, first and foremost, the venture needs to make the
public aware of it through promotion. Promotion is an ongoing challenge for Startups and small
businesses because entrepreneurs are not typically marketing experts. Many Startups and new
ventures come up with a fabulous business idea but then fail to promote it successfully and the
reason could be poor market research and inadequate promotional measure, scare resources etc.
A Startup has a “miniscule budget and a small team having an ambition to nurture and
sell a new business idea”. Traditional marketing methods are expensive for startups and therefore
these ventures cannot afford to adopt traditional marketing promotional measures due to budget

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constraint and limited market knowledge. “A big marketing concern faced by startups is that
products or services are new and unproven” but the toughest challenge is to pick the appropriate
blend of promotion mix.
Therefore, the purpose of this study is to investigate how marketing promotion strategies adopted
by Startups entrepreneurs within the constraints of limited resources are influencing sales
performance of Startups in Palghar District of Maharashtra. The study also attempts to determine
the appropriate promotional mix for these Startup based on the perception of Startup
entrepreneur.

1.1 Marketing Strategy

“Marketing strategy is a plan for pursuing the firm’s marketing objectives or how the
company is going to obtain its marketing goals with a specific market segment ” and are
generally perturbed with 4 P’s (McDonald 1999; Orville et. al., 2008; Kotler & Armstrong,
2009). The marketing objectives specify what venture desire to accomplish; the strategy offers
the policy for attaining them. “Marketing strategies are used to increase sales, launch new
products and generally provide profit for a company” (Cyprus 2010).

1.2 Marketing Mix

“Marketing mix is the set of marketing tools that the firm uses to pursue its marketing
objectives in the target market”. “Marketing mix is grouped into four variables known as the 4Ps
Product, price, place, and promotion”
1.2.1 Components of the Marketing Mix
 Product: “A product is a bundle of need-satisfying features that is exchanged, generally for a
monetary price”. “The product is a combination of tangible and intangible aspects of the
products offered by the manufacturer to the customers”. “Product can be defined as a bundle
of satisfaction and dissatisfactions offered by company to the customers at a point of time”.
 Price: “Price is the value charged for any product or service”. Pricing is a difficult task.
Marketers have to consider various factors while price like the “need of a product/service,
cost incurred, buyer’s ability to pay, prices charged by competitors etc.”
 Place (Distribution): Place denotes “the point or location where the product is made
available to purchase”. It may be physical store or virtual stores (on internet). The products

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 are reaching to the ultimate consumer that channel is known as distribution channel. “The
place promises the availability of the product to the ultimate consumers for their purchase”.
 Promotion: “Promotion helps the trader and sales force to show the product to the customers
in an effective manner and encourage them to purchase and retain them in future also”.
Marketers uses promotion for enhancement in the sales performance.

1.3 Promotion Mix

“The promotion mix is a term used to describe the set of tools that a business can use to
communicate effectively the benefits of its products or services to its customers.” Promotion mix
comprise of “Advertising, Sales Promotion, Publicity and Public Relations, Direct Marketing”,
1.3.1 Components of Promotion Mix
 Advertising:
“Advertising is a tool of marketing for communicating ideas and information about goods
and services to an identified group, which employs paid space or time in the media or uses
another communication vehicle to carry its message”.
 Sales Promotion:
“Sales promotion is attributed to the actions and decisions which provide specific short-term
measures, but to encourage the purchase, use, as well as by facilitating the purchase of goods
and can be directed to the end user or intermediary”. It used by a marketer to provoke
consumer to buy more or buy soon.
 Publicity and Public Relations
Publicity is a non-personal, indirectly rewarded performance of a venture, offerings. Through
publicity an organization has somehow control of what is said, its audience and timing of the
communication. Publicity is utilization of the medium to facilitate free reporting of stories
linked to a product.
Public Relations is a “management function aimed at managing the relationships and
communication between the organisation and various public groups to establish common
goodwill and maintain the good reputation of the organisation”.
 Direct Marketing:
Direct Marketing involves “direct communication with customers to create a feedback in the
form of an order, a claim for further information, or a trip to a retail store”. Direct Marketing

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 presents adaptable way by which a marketer can convey the message and target exceptional
crowd of consumers in an efficient manner.
2. STARTUP
Department for Promotion of Industry and Internal Trade, Govt. of India, define a Startup
as an entity incorporated or registered in India with following parameters:
 “Established not prior to ten years
 Incorporated as a Private Limited Company, a Registered Partnership Firm or a Limited
Liability Partnership
 Should have an annual turnover not exceeding Rs. 100 crores for any of the financial years
since its incorporation
 Working towards innovation, development or improvement of products or processes or
services
 It is a scalable business model with a high potential of employment generation or wealth
creation
 Also, such entity is not formed by splitting up, or reconstruction, of a business already in
existence.”
(Source: https://www.startupindia.gov.in/content/sih/en/startup-scheme.html)

3. ENTREPRENEUR
“The term entrepreneur is derived from the French word ‘entrependre’ which means to
Undertake.” “Entrepreneurs are ambitious to achieve success in their undertaking along with the
potentials of a leader, resource allocator, manager, innovator, risk taker, decision maker, etc. and
most significant is to enact all of these qualities into the venture” (Das Dilip Ch., 2014).

4. MARKETING PROMOTION IN STARTUP

Marketing forms one of the fundamental pillars for fulfilment of objectives and
organizational success. Entrepreneurs are not typically marketing experts. “As such, the
vocabulary and foundations of formal marketing theory are often unfamiliar to them”.
“Marketing has been seen as one of the greatest problems faced by start-ups and new ventures in
their operations, but at the same time, one of the most important and essential business activities
for growth and survival.”

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 Startups are important for economic growth of a nation. “They provide new jobs, open up
opportunities for upward social mobility, foster economic flexibility, act as suppliers of goods
and services for other organizations and contribute to competition and economic efficiency”. But
besides this, Startup “face tremendous challenges to transform their venture into profit making
venture”. “A big marketing concern faced by startups is that their products or services are new
and unproven but the toughest challenge is to select the appropriate blend of promotional mix
activities”.
“A Startup venture has to adopt promotional blend strategies which will entice and
maintain consumer base, consequently long time relationships and boom in terms of
productiveness”. Startup Entrepreneurs have limited marketing budget and resources. To sustain
and remain in competition, and dynamical buyers needs and wants, startup entrepreneurs they
have to adopt diverse marketing promotion strategy both verbal and visual, to educate and
persuade the target customers about the product, service, brand along with “a toolkit of new and
unorthodox marketing practices to help emerging firms gain a foothold in crowded markets”.
The basic purpose of marketing promotion aims at increased awareness, creating interest
that results in generating sales and ultimately create brand loyalty. “Marketing promotion is
employed by the marketers to attract target customers to purchase more or further plan to
purchase”.

5. RESEARCH PROBLEM:

The first step in research is to define the problem. The research problem must take “into
account the purpose of the study, the relevant background information, what information is
needed, and how it will be used in decision making”. “Once the problem has been precisely
defined, the research can be designed and conducted properly”.

While “Startup received much attention in research due to its rapid development and its
popularity”, there are a few research in developing countries like India and there is a paucity of
research more specifically in the domain of marketing promotion. The majority of Startups and
new ventures are facing problems with respect to marketing promotion of their products/ services
which is affecting their sales for growth and survival. The reasons could be attributed to poor

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market information, limited budgetary provision for promotion, inappropriate promotional
measures.

6. RESEARCH QUESTIONS

Although the review of literature revealed the studies conducted on marketing promotion
strategies in different organizations/ sector, yet there are very few studies focused on startup
enterprises particularly in India. However, none of the studies has empirically analysed
marketing promotional strategies of Startup enterprises in Indian Context. This gap in the
existing literature calls for a study to examine whether the marketing promotional strategies are
influencing the sales performance. “This study was motivated by two reasons: the lack of
consistent evidence due to mixed results in previous literature and the scarcity of research in
Indian context”. Therefore, this research has attempted to answers the following research
questions.
 What are the various marketing promotion mix strategies employed by Startup entrepreneurs
in the limited budget?
 What is the effectiveness of marketing promotion mix strategies adopted by Startup
entrepreneurs in order to influence/ persuade target audience?
 To what extent does marketing promotion mix strategies influencing the sales performance of
the Startups?

7. OBJECTIVES OF THE STUDY:

1. To study the marketing promotion strategies of Startup entrepreneurs in Palghar District of

Maharashtra.
2. To analyse the working efficiency of marketing promotion strategies of Startup entrepreneurs
in Palghar District of Maharashtra.
3. To examine the impact of marketing promotion strategies on sales performance of Startup
entrepreneurs in Palghar District of Maharashtra.
4. To suggest measures for improvement in marketing promotion strategies of Startup
entrepreneurs in Palghar District of Maharashtra.

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8. Hypothesis of the Study:
Researcher has framed the following hypothesis by considering the objectives of the
study.
Hypothesis No. 1:
H0: There is no significant difference in the perception of respondents regarding marketing
promotion strategies with respect to (a) types of startups; (b) business affiliation of
entrepreneurs; (c) gender group of entrepreneurs; (d) age of entrepreneurs; and (e)
educational qualifications of entrepreneurs.

H1: There is significant difference in the perception of respondents regarding marketing

promotion strategies with respect to (a) types of startups; (b) business affiliation of
entrepreneurs; (c) gender group of entrepreneurs; (d) age of entrepreneurs; and (e)
educational qualifications of entrepreneurs.

Hypothesis No. 2:
H0: There is no significant difference in the perception of respondents regarding working
efficiency of marketing promotion strategies with respect to (a) types of startups; (b)
business affiliation of entrepreneurs; (c) gender group of entrepreneurs; (d) age of
entrepreneurs; and (e) educational qualifications of entrepreneurs.

H1: There is significant difference in the perception of respondents regarding working

efficiency of marketing promotion strategies with respect to (a) types of startups; (b)
business affiliation of entrepreneurs; (c) gender group of entrepreneurs; (d) age of
entrepreneurs; and (e) educational qualifications of entrepreneurs.

Hypothesis No. 3:
H0: There is no significant impact of marketing promotion strategies on sales performance.
H1: There is significant impact of marketing promotion strategies on sales performance.

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9. REVIEW OF LITERATURE

A review of literature eliminates oversight and inadvertent reproduction of preceding research.

Here, the researcher highlighted the review of research works carried out by various researchers
related to the marketing promotion strategies employed by ventures/ entrepreneurs at
international and national.

For clear and easy understanding, the review of literature is presented in the following
subheading

Marketing Promotion Strategies

Doyle (1986) studied the relationship between marketing strategies and the market share. He
pointed out that if a venture wants to increase their market share in such a tough competitive
environment then it should focus on developing a sound marketing strategy considering the role
of “four P's of marketing mix i.e. Product, Price, Place, and Promotion”.

Kanu A. (2019) in his study investigated the impact of marketing management practices on the
performance of SMEs in Sierra Leone. He concluded that “relationship between marketing
management practices and SMEs performance are statistically significant”.

Advertising

Baidya M. et. al., (2014) in their study examined the “role of advertising in the middle of sales-
price relationship of two entrepreneur brands in India”. They revealed that
“entrepreneurs/managers should allocate more funds to advertising and at the same time should
charge a higher price point in order to increase revenue”.

Henrik Virtanen et al., (2016) in their study investigated the startups social media marketing
activities. “The study aimed to measure the effects of these practices on creating and increasing
awareness of the company’s business and gaining followers for the company’s Instagram

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account and they revealed that Instagram marketing (social media marketing) have positive
effects on creating and increasing awareness of the company’s business brand equity”.

Sales Promotion

Faitira Manuere et. al., (2018) in their research examined the influence of sales promotion on
organizational performance and sales volume. The study revealed that “sales promotion affects
organizational performance and sales volume of the organization and they further revealed that
effective and efficient sales promotion campaign should be used to arouse consumer’s interest to
make repeated purchases”.

Publicity and Public Relations

Sukhmani, et. al., (2012) found that public relations were considered as the most important
element of promotion mix which increased sales of the company “followed by sales promotions,
direct marketing, advertising and personal selling”. The reasons giving by the consumers for
their preference of a particular promotional element of the promotion mix was its helpfulness in
making final purchase decision.

Direct marketing

Mukorombindo (2014) conducted a study on “impact of direct marketing on sales performance

at seed potato cooperative”. The findings showed that there was a “weak relationship between
direct marketing, and sales performance because of lack of formal marketing plan, lack of
customer data base lack of market budget and poor communication, he further revealed that the
company should use several direct marketing strategies”.

Promotion Effectiveness

Umesha et al., (2019) in their study examined the effectiveness of “promotion strategies of
shopping malls and how these strategies are contributing to enhance sales performance in
Karnataka”. The study revealed that “effective promotion strategies contribute to bring more
awareness about the products offered by shopping malls and to boost the sales by attracting the
customers and they further recapitulated that ten chosen indicators of promotion strategies are
working better in enhancing customer satisfaction and sales performance”.

Marketing Promotion and Sales Performance

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Karam et. al., (2018) examined “the effect of marketing strategy on organisation performance in
Iraq”. The study revealed that the “independent variables (Marketing Strategy, Service Strategy,
Pricing Strategy, Promotions Strategy, Place Strategy, After Sales Service Strategy, Higher
Education Marketing Strategies, and Social Media Marketing Strategies) were significant joint
predictors of business performance in term of profitability, market share, return on investment,
and expansion”.

Kenu A.Z. (2019) in his research examined the effect of marketing strategy on business
performance in Ethiopia. The correlation analysis revealed that product, price and promotion
strategies are “significantly and positively related with performance of enterprises”. The
independent variables explained approx. 30% of variation in performance of SMEs. The study
recommended to “SMEs to produce innovative (new design, feature, varieties) products, charge
affordable prices and disseminate tailored promotion”.

Marketing Related Problems

Kanchana R.S. (2013) in their study examined the problems and challenges faced by new
entrepreneurs in India. Their study revealed that the most important challenges faced by new
entrepreneurs include raising capital for Startup, inadequate finance, inefficient working capital
management, dealing with competition, inadequate market research and knowledge,
inappropriate marketing activities. They concluded that “it is necessary to overcome these
challenges in order to conduct an efficient business”.

Masa'deh et. al., (2018) in their research investigated the “effects of promotional mix in terms
of advertisement, website and direct sale on job performance” in Middle East. The study
revealed that “there is a significant impact of hotels advertisement and hotels direct sale on hotel
performance”.

10. RESEARCH GAP:

The literature reviewed in this chapter indicate that research has been done in the area of
marketing promotion mix of SMEs, MSMEs, new venture, MNCs, etc. and its impact on sales
performance. There are evidences of previous studies being carried out on marketing mix as well
as promotion mix techniques and its effectiveness on different categories both in Indian and

10
international context, but there are no literatures available on Startups in Indian context. The
researcher found that there is no research indicating marketing promotion techniques practiced
by the Startups entrepreneurs of Maharashtra. On the basis of review of literatures, the researcher
has identified certain gaps related to marketing promotion strategies of small and new ventures,
such as inadequate market research, inappropriate promotional mix, inability to predict/ forecast
market demand and supply by entrepreneurs, budgetary constraint for marketing promotion,
absence of forward linkages, unable to compete with bigger brands.

OR

In accordance with of review of literatures, the following research gaps are identified related to
marketing promotion strategies of startups

 Inadequate Market Research

 Poor Marketing Promotion Strategies
 Unable to predict/ forecast market demand and supply
 Absence of Forward Linkages
 Unable to compete with bigger brands

11. RESEARCH METHODOLOGY:

 Research Design
“A research design includes an outline of what the researcher will do from the hypothesis and
its operational implication to the final analysis of the data”.
Descriptive Research design is applied in the research. “Descriptive research is used when
the problem is structured i.e. it gives answers to who, where, what, how and when of a
phenomenon under the study”. “It is used to make clear the distinctiveness of a population or
an observed fact” (Ghauri et. al., 2005).

 Population and Sampling

The research has undertaken in Palghar District of Maharashtra and sample was taken as
startups registered and incubated in the Palghar District of Maharashtra during (2018 - 2022).

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 Sampling Technique
Stratified random sampling method was applied for the research to select the type of startups
and the respondents. The decision of the stratification was taken on the basis of types of
startups (Manufacturing, Service, and Trading) 50 percent from each category. The startup
entrepreneur’s respondents from these categories were selected for the study. Thus, in all,
246 valid samples “were selected for the purpose of the present study”.
1.1 Table: Sample size
Sr. No. Category Population Sample size
1 Manufacturing 139 70
2 Service 247 124
3 Trading 103 52
Total 489 246
(Source: https://msins.in/ up to December 2021)

 Sample Size Determination by Formula

Wayne W. Daniel Formula for sample size calculation

n = 215
The researcher has taken total 246 valid samples for the study which is more than the
required sample (n =215) calculated by Wayne W. Daniel Formula for sample size
determination.

 Sources of Data Collection:

Primary data and secondary data had been used for the study.
 Primary Data:

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 Utilizing the information from literature, questionnaire was prepared. Primary data were
collected directly from the respondents
 Secondary Data:
Secondary data were collected from sources like research papers, thesis, books,
newspapers, various reports, URLs, and magazines.

 Period of the Study:

The study covers a period of 5 years from 2018 to 2022.

 Statistical tool and technique:

Both qualitative and quantitative data will be analyzed in the backdrop of the research
objectives. Quantitative data will be tabulated and statistically analyzed using SPSS software.
Qualitative data will be interpreted based on information collected from the respondents.
Descriptive statistics, graphic presentation, tables, charts, t-test, ANOVA will be applied on
variable as per the requirement.

12. SIGNIFICANCE OF THE STUDY

The relationship between marketing promotion strategies and sales performance needed
further investigation for Startups survival. The present study explores marketing promotion
strategies employed by Startup entrepreneurs of Maharashtra and its influence on sales
performance. In a highly competitive small business marketplace, Startup entrepreneurs
encounter new marketing challenges to promote and define their market positions. Many Startup
entrepreneurs “often fail to implement marketing promotion strategies to stimulate and promote”
the growth of their venture or sometimes leads to death of venture. The study will guide the
Startup entrepreneurs “in choosing the most suitable marketing promotion strategy for the
specific products or services to reach their target customers in limited resources”.

“However, enough research and for that matter literature do not exist on this particular
subject and this study area”. “Therefore, this work will add to the little that exists which will
serve as a relevant source of reference to future researchers of related topics”. “More
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importantly, the study has discovered other areas which need further exploration by interested
researchers. Owing to this, Startup entrepreneurs, marketing managers, researchers and policy
makers can benefit substantially from the findings, conclusion and recommendation of this study
as it will provide a basis for future research in the area of marketing promotion strategies of
Startups”.

13. NEED OF THE STUDY

Startups are important for economic growth of a nation. They provide “new jobs, open up
opportunities for upward social mobility, foster economic flexibility, act as suppliers of goods
and services for other organizations, contribute to competition and economic efficiency”. But
besides this, Startups “face tremendous challenges to transform their venture into profit making
venture”. “A big marketing concern faced by startups is that their products or services are new
and unproven”. An effective marketing promotion will enhance the “Startup prospects for
survival during its first year of operation, and will greatly facilitate the flow of sales revenues
needed to assure the new venture's continuing existence into its second year, its third year, and so
on”. “The absence of such continuing streams of sales revenues will result in the decline and
eventual death of the new venture”.

The Startup entrepreneurs are facing challenge of resources constrain, competing against
larger, better known, and more resourceful companies. Entrepreneurs have limited marketing
budgets, but the toughest “challenge is to select the appropriate mix of promotional activities”.
This calls for this study how Startup entrepreneurs has to adapt and use effective marketing
promotion strategies within the constraints of limited resources which will influence their sales
performance.

14. SCOPE OF THE STUDY

The study covers the following scopes:

 The study covers the startups registered and incubated in the state of Maharashtra during
(2018 - 2022).
 The study only covers various Marketing Promotion activities employed by startups for
enhancing their sales performance.

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15. Limitations of the study

An attempt has been made in the research to study the marketing promotion strategies of Startup
entrepreneurs of Rajasthan. The study is confined to following limitations.
 The study is limited to 246 respondents (Startup ventures – Startup entrepreneurs) of
Maharashtra.
 Answer to the questionnaire depends upon the beliefs and prejudices of respondents.
 It was assumed that respondents are true and honest in expressing their views and have filled
the questionnaire honestly and without any bias.
 This study was also confined by the fact that there was no previous study done exactly on the
same theme. Thus, we cannot test our results against previous studies/ benchmarks.

16. Tentative Chapter Scheme:

 Chapter 1: Introduction.
 Chapter 2: Review of Literature.
 Chapter 3: Research Methodology.
 Chapter 4: An Overview of theoretical framework.
 Chapter 5: Data analysis and Interpretation.
 Chapter 6: Summary of the Findings, Recommendations and Conclusion.
In addition, the bibliography will be given in the appendix.

REFERENCES
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BOOKS:
1. C.R. Kothari, 2004, Research Methodology, New age international Publications.
2. R. Panneerselvam, 2008, Research Methodology, Prentice Hall on of India Pvt. Ltd
3. Dr. Kapoor D.R & Ms. Saigal Puja, 2014 Research Methodology (Methods & techniques),
Regal Publications.
4. Ahuja Ram 2008, Research Method, Rawat Publications.

NEWSPAPERS:
1. The Times of India.
2. The Economics Times

WEBSITE:
 https://www.mahaswayam.gov.in/
 https://msins.in/

Research Scholar

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