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INTRODUCTION
NO.

1.1 What is Marketing 13

1.2 Purpose of Marketing. 13

1.3 Why Marketing is Important. 14

1.3.1 Reasons why Marketing is essential for any Business. 14


CHAPTER 1.
1.4 Types of Marketing. 16

1.5 Net Profit 19

1.6 How is Net Profit Calculated?? 19

1.7 Significance of Net Profit 20

1.8 Example of Calculation of the Net Profit. 21

1.9 Net Profit vs Gross Profit. 22

OBJECTIVE OF THE STUDY.

2.1 Need for the study. 23


CHAPTER 2.
2.2 Scope of the Study. 23

2.3 Objective Of the Study. 24

DATA ANALYSIS

3 (A).1 Method of Collecting Data.

3 (A).1.1 Primary Data 25

3 (A).1.2 Secondary Data 31


CHAPTER 3(A).
3 (A).2 Data taken into Study. 35

Types of Statistical Methods used to draw


3 (A).3 conclusions. 36

3 (A).3.1 Descriptive Statistics 36

3 (A).3.2 Inferential Statistics 37


3 (A).4 Regresssion Analysis 38

ANALYSIS.
CHAPTER 3(B).
3(B).1 Regression 40

CONCLUSION.

4.1 Anova Table 42


CHAPTER 4.
4.2 Model Summary 42

4.3 Coefficients 42

CHAPTER 5. REFERENCES.
44
CHAPTER 1.

INTRODUCTION

What is Marketing.

Marketing alludes to any activities a company takes to draw in a gathering of people to the
company's item or administrations through high-quality messaging. Marketing points to convey
standalone value for prospects and buyers through substance, with the long-term objective of
illustrating item value, fortifying brand dependability, and eventually expanding sales. (Forsey, 2022)

Marketing is the action, set of community, and forms for making, communicating, conveying, and
trading offerings that have value for purchaser, clients, accomplices, and society at large. (Strategy,
Marketing? and Effectiveness, 2022)

Purpose of Marketing.

Marketing is the method of getting individuals curious about your company's item or benefit. This
happens through market exploration, reasoning, and understanding your perfect customer's
interface. Marketing relates to all angles of a trade, counting item improvement, dispersion
strategies, deals, and promoting.

Why Marketing is Important.

Marketing is critical since it permits you to share your items and administrations with a specialty
gathering of people deliberately. It makes a difference you tell, appear, and demonstrate to
individuals how marvelous your business is and how you'll be able offer assistance them. You'll be
able moreover teach individuals on subjects related to your business, counting how to fathom
common issues and which arrangements are best.

Reasons why Marketing is essential for any Business.

 It discloses what you can provide to them.


 It helps to Identify your Target Customers.

 It helps your Target customers to get to recognize you.

 It enables people to Confide in your business.

 It Facilitate your Business.

 It discloses what you can provide to them: The essential reason of marketing is to urge the
word out about your business: who you're and what items or administrations you offer.
Create brand mindfulness, offer assistance individuals get it your commerce in-depth, and
keep steadfast clients upbeat so they tell their companions and keep coming back for more.

 It helps to Identify your Target Customers: Marketing isn’t Just for your customers’ eyes and
ears. You'll moreover pick up profitable understanding into who your target gathering of
people is.

o Get to a put where you profoundly get it their wants, needs, and issues. Figure out
how you'll reach them where they are and interface with them in significant ways.
Concurring to Forbes, buyers will spend almost 48% more whereas shopping online if
they have a personalized experience.

o Knowing your target audience well will assist you improve all of your marketing
endeavors so you'll be able dodge squandering your budget by getting before the off-
base dang individuals.

 It helps your Target customers to get to recognize you: Share your brand story with potential
clients. Make it individual. Let them get to know who you’re, why your business begun within
the to begin with put, and what you accept. Making your business relatable will enable
people to put through candidly together with your story.

o People need to bolster businesses they accept in. So be true by sharing your
individual, relatable story inventively. And you’ll before long construct a exquisite
taking after of steadfast supporters and evangelists.

 It enables people to Confide in your business: Building believe with customers, rather like
any relationship, takes time and exertion. You would like to demonstrate that your little
commerce is sound, moral, ethical, veritable, and socially dependable. A whopping 81% of
individuals, after all, buy from brands they trust.

o You don’t win the “trustworthy” status on a impulse. You've got to be deliberateness
when shaping your promoting messages and communicating with people.

o Consider executing social obligation hones, like guaranteeing your items are morally
sourced. Or receive a respectable social cause, such as giving a rate of your income
to charity. Individuals will adore you for it and select to purchase from you over
competitors.

 It Facilitate your Business: Building your notoriety through viable marketing will normally
lead to development and expanded income for your trade. In case your offerings are as great
as you depict them, you’ll construct a steadfast base of clients who will spread the word for
you! Did you know that unused clients find 85% of businesses through word-of-mouth
marketing? It’s fundamentally the leading.

Types of Marketing.

 Influencer Marketing.

 Relationship Marketing.

 Viral Marketing.

 Green Marketing.

 Keyword Marketing.

 Guerilla Marketing.

 Outbound Marketing.

o Internet Marketing.

o Blog Marketing.

o Social Media Marketing.

 Search Engine Marketing

 Video Marketing.

 Inbound Marketing.

 Search Engine Optimization. (SEO)

 Content Marketing.

 Influencer Marketing: Concurring to the Affiliation of National Advertisers (ANA), influencer


marketing centers on leveraging people who have impact over potential buyers and situating
showcasing exercises around these people to drive a brand message to the bigger market. In
influencer marketing, instead of promoting specifically to a expansive bunch of shoppers, a
brand motivates or compensates influencers (which can incorporate celebrities, content
makers, customer advocates, and representatives) to urge the word out on their sake.

 Relationship Marketing: Agreeing to the Association of National Advertisers (ANA),


relationship marketing alludes to techniques and strategies for portioning customers to
construct loyalty. Relationship marketing leverages database promoting, behavioral
publicizing and analytics to target buyers absolutely and make dependability programs.

 Viral Marketing: Viral marketing may be a promoting marvel that encourages and empowers
individuals to pass along a marketing message. Nicknamed “viral” since the number of
people uncovered to a message imitates the method of passing a infection or disease from
one individual to another.

 Green Marketing: Green marketing alludes to the improvement and promoting of items that
are assumed to be ecologically secure (i.e., outlined to play down negative impacts on the
physical environment or to progress its quality). This term may moreover be utilized to depict
endeavors to deliver, advance, bundle, and reclaim products in a way that's touchy or
responsive to environmental concerns.

 Keyword Marketing: Keyword marketing includes putting a promoting message before


clients based on the particular catchphrases and expressions they are utilizing to search. A
key advantage of this strategy is that it gives marketers the capacity to reach the correct
individuals with the proper message at the correct time. For numerous marketers, keyword
marketing comes about within the placement of an advertisement when certain
catchphrases are entered. Note that in SEO, this term alludes to accomplishing beat
arrangement within the look comes about themselves. (Strategy, Marketing? & Effectiveness,
2022)

 Guerilla Marketing: Guerilla marketing depicts an offbeat and imaginative promoting


methodology planning to urge greatest results from minimal resources.

 Outbound Marketing: Outbound marketing could be a more up to date term for


conventional showcasing coined when the term inbound showcasing came into prevalent
utilize. In outbound showcasing, the advertiser starts contact with the client through
strategies such as TV, radio and advanced show publicizing. It is regularly utilized to impact
shopper mindfulness and inclination for a brand.

o Internet Marketing: Inspired by an Excedrin item campaign that took place online,
the exceptionally thought of having a nearness on the web for trade reasons could
be a sort of marketing in and of itself.

o Blog Marketing: Blogs are no longer exclusive to the individual writer. Brands
presently distribute blogs to type in almost their industry and support the intrigued
of potential clients who browse the web for data.

o Social Media Marketing: Businesses can utilize Facebook, Instagram, Twitter,


LinkedIn, and comparable social systems to make impressions on their group of
onlookers over time.

 Search Engine Marketing: This sort of marketing could be a bit diverse than SEO, which is
portrayed over. Businesses can presently pay a search engine to put joins on pages of its list
that get tall introduction to their group of onlookers. (It's a concept called "pay-per-click")

 Video Marketing: Whereas there were once fair commercials, marketers presently put cash
into making and distributing all sorts of recordings that engage and teach their center
customers.
 Inbound Marketing: Inbound marketing is marketing in which clients start contact with the
advertiser in reaction to different strategies utilized to pick up their consideration. These
strategies incorporate e-mail showcasing, event marketing, content marketing and web
design. One reason of inbound showcasing, which incorporates content marketing, is to set
up the commerce as a source for important data and arrangements to issues, subsequently
cultivating client believe and devotion.

 Search Engine Optimization. (SEO): Search engine optimization (SEO) is the method of
creating a marketing/technical arrange to improve perceivability inside one or more look
engines. Ordinarily, this comprises of two elements. On a specialized side, SEO refers to
guaranteeing that web site can be ordered legitimately by the major search engines and
incorporates the utilize of the correct keywords, content, code, and links. On the promoting
side, SEO refers to the method of focusing on particular keywords where the location ought
to “win” in looks. This could be done by altering website to score well within the algorithms
search engines utilize to decide rank, or by acquiring placement with individual keywords.
Frequently, SEO programs are a mix of a few components and techniques (Strategy,
Marketing? & Effectiveness, 2022).

 Content Marketing: Content marketing could be a strategy of making and dispersing


important, significant and steady content to draw in and obtain a clearly characterized
audience—with the objective of driving productive client action. According to the
Association of National Advertisers (ANA), content marketing involves various methods to tell
the brand story. Increasingly marketers are evolving their publicizing to content
marketing/storytelling to make more stickiness and enthusiastic holding with the customer.

Net Profit

A company's net profit is additionally known as its net income, net earnings or bottom line. It speaks
to the monetary standing of a company after all its costs have been paid off from its add up to
revenue.

Notably, it accounts for all money related exchanges of a firm other than tax installment. On the
premise of this principal concept, commerce proprietors can dodge miscounts and create sound
financial strategies.

Typically, net profit within the balance sheet is enlisted at the financial statement's bottom line.

How is Net Profit Calculated??

As said before, it appears the sales sum after these taking after are deducted from the company's
add up to revenue.

• Operating cost

• Tax

• Interest

• Preferred stock dividends


Notably, add up to income is portrayed as the whole sales minus discounts and refunds. On the other
hand, operational costs and overhead costs too incorporate the fetched of offering and conveying
the product

The net profit equation is communicated as –

Net Profit = Total Income - Total Expenses

To calculate Net profit of a company, its total costs are deducted from the total income it produces.

Significance of Net Profit

Besides showing the victory of a business venture, it too unveils the firm's capacity to reimburse
obligation and reinvest. Other than that, net profit demonstrates valuable in these ways -

1. For the proprietors: It makes a difference to compute the tax sum that has to be paid.

2. For banks: Leasers allude to the net salary of a company to gage their repayment capability some
time recently endorsing a loan.

3. For competitors: Business counterparts of a restricted company can get to points of interest
approximately the net profit to pick up more understanding into their benefit and proficiency.

4. For financial specialists and shareholders: They judge the revenue-generating capacity of a firm
based on its net profit. A firm with maintainable it incorporates a superior scope of drawing in
potential speculators and shareholders.

Since it is deemed valuable for the development of a firm, trade proprietors are continuously
attempting to make strides it. Expanding deals volume and lessening overhead costs are among the
demonstrated ways of upgrading the net Profit of an organization.
Example of Calculation of the Net Profit.

Income statement of XYZ Private Limited.

PARTICULARS AMOUNT

TOTAL REVENUE 25,00,000.

COST OF GOODS SOLD (3,50,000)

GROSS PROFIT 21,50,000.

TOTAL OPERATING EXPENSE (6,50,000)

OPERATING PROFIT 15,00,000

INTEREST EXPENSE (1,00,000)

TAX EXPENSE (6,00,000)

NET INCOME 8,00,000.


Net Profit vs Gross Profit.

Both net profit and gross profit have a critical part in monetary bookkeeping and are closely related
to each other. Together, they are mindful for deciding and keeping up precise budgetary records of a
company.

For occurrence, both net and gross profit offer assistance to dissect the monetary wellbeing of a
firm. Subsequently, it is basic for company proprietors to get it them and their point of contrasts.

To start with, commerce proprietors and speculators must be clear around the meaning of gross
profit and net profit.

For occurrence, gross profit is the benefit remaining with a company after its coordinate costs have
been deducted from its net deals. Too, gross profit serves as a brief appraise of a firm's income and
makes a difference to lower extra fetched.

On the other hand, excess profit cleared out with the company after paying off the charges, interests
and working charges fall beneath the domain of net benefit. It too comes in convenient for dissecting
a company's sustainable benefit by supporting the calculation of net profit margin.

("What is Net Profit? - Importance, Formula and Example Calculation", 2022)

CHAPTER 2.

OBJECTIVE OF THE STUDY.

Need for the study.

The need for the study arises in discovering whether the expenditure the Companies are incurring as
a Marketing Budget does have a positive impact on the Overall profitability of a company. And
whether if it has a positive Impact on the overall profitability of a company furthermore, how much
in terms of percentage it has an Impact on the profit of the Companies. We hereby used the data
which is purely collected form the financial statements of the companies and we are taken into study
the Fortune TOP 100 Companies as they are the Market leader and if the Marketing Budget formula
working for them it has to be working for the new entrants and for the Small Companies too and
they can easily compete against these giants.
Scope of the Study.

The scope of the study is very limited because of the following points highlighted below:

 To determine the relationship between the Profit of the Company and the Marketing Budget
only NET PROFIT is taken into account.

 Some Companies Income Statement included the ADMIN and the Other expenditure like
SELLING expenditure in the Marketing expenditure so it hampers the overall quality of the
data as we can’t segregate Both of these expenditures.

 Only FORTUNE TOP 100 companies are taken into account and out of that only 25 are taken
into consideration and the Study doesn’t cover whether the Marketing Budget and the
Sector in which these Companies are operating have a Positive relationship.

 The marketing strategy and the marketing channel these companies are using are taken into
consideration as these variable does have a Significant Impact on the Profit of the company.

Objective Of the Study.

 To determine whether there is a relationship between the Marketing Budget and the
Profit of the Company.

 To find out if that relationship is Positive or the Negative.

 If there is a Positive relationship to find out how much extent in terms of percentage it
has effect on the profit of the company.

 To discover what are the various Marketing activity a firm can engage in.

 To understand the difference between the Net profit and the Gross Profit.
CHAPTER 3 (A).

DATA ANALYSIS.

RESEARCH METHODOLOGY.

METHOD OF COLLECTING DATA.

There is two ways to collect the data which are as follows:

 Primary data

 Secondary data

Primary data

Primary data: Primary data could be a sort of information that's collected by analysts
straightforwardly from fundamental sources through interviews, surveys, experiments, etc.

Primary data are ordinarily collected from the source—where the information initially begins from
and are respected as the finest kind of information in research.

The sources of primary data are ordinarily chosen and custom fitted particularly to meet the
requests or prerequisites of specific research. Too, before choosing a data collection source, things
just like the point of the research and target populace got to be recognized.

Methods of collecting the Primary Data.

 Interviews

 Surveys

 Observation

 Focus Groups

 Experiments

Interviews: An interview could be a strategy of information collection that involves two bunches of
individuals, where the primary bunch is the questioner (the researcher(s) inquiring questions and
collecting information) and the interviewee (the subject or respondent that's being inquired
questions). The questions and reactions amid a meet may be oral or verbal as the case may be.
Interviews can be carried out in 2 ways, specifically; in-person interviews and telephonic interviews.
An in-person meet requires a questioner or a gather of questioners to inquire questions from the
interviewee in a face-to-face mold.

It can be coordinate or circuitous, organized or structure, centred or unfocused, etc. A few of the
tools utilized in carrying out in-person interviews incorporate a scratch pad or recording gadget to
require note of the conversation—very imperative due to human distracted nature.

On the other hand, telephonic interviews are carried out over the phone through conventional voice
calls or video calls. The 2 parties included may choose to utilize video calls like Skype to carry out
interviews. A versatile phone, Portable workstation, Tablet, or desktop computer with an online
association is required for this.

Pros

 Detailed data can be collected.

 Non-response and reaction predisposition can be detected.

 The tests can be controlled.

Cons

 The Time taken is longer as compare to any other method

 It requires high budget

 The questioner may be one-sided.

Surveys: Surveys and questionnaires are 2 comparable instruments utilized in collecting essential
information. They are a bunch of questions written or composed down and sent to the test of ponder
to provide responses.

After giving the specified reactions, the study is given back to the analyst to record. It is fitting to
conduct a pilot think about where the surveys are filled by specialists and implied to survey the
shortcoming of the questions or procedures used.

There are 2 primary sorts of overviews utilized for information collection, specifically; online and
offline overviews. Online overviews are carried out utilizing internet-enabled gadgets like portable
phones, PCs, Tablets, etc.

They can be shared with respondents through mail, websites, or social media. Offline surveys, on
the other hand, don't require an online connection for them to be carried out.

The most common sort of offline study may be a paper-based survey. However, there are moreover
offline studies like Formplus that can be filled with a versatile gadget without get to a web
connection.
Pros

 Respondents have satisfactory time to deliver responses.

 It is free from the predisposition of the interviewer.

 They are less costly as compared to interviews.

Cons

 A tall rate of non-response bigotry.

 It is resolute and can't be changed.

 It could be a moderate handle.

Observation: The observation method is generally utilized in ponders related to behavioral science.
The analyst Utilize observation as a logical instrument and strategy of information collection.
Observation as a information collection device is as a rule methodically arranged and subjected to
checks and controls.

There are diverse approaches to the observation method—structured or unstructured, controlled or


uncontrolled, and member, non-participant, or disguised approach.

The organized and unstructured approach is characterized by cautious definition of subjects of


observation, style of eyewitness, conditions, and determination of information. An observation
prepare that fulfills this is said to be organized and vice versa.

A controlled and uncontrolled approach means whether the inquire about took put in a normal
setting or agreeing to some pre-arranged plans. In case an observation is worn out a normal setting,
it is uncontrolled but gets to be controlled on the off chance that wiped out a laboratory.

Sometime recently utilizing a modern instructor, scholarly teach in some cases inquire for a test
instructing lesson to test the teacher's capacity. The evaluator joins the course and watches the
educating, making him or her a participant.

The assessment may moreover choose to watch from exterior the course, getting to be a non-
participant. An evaluator may moreover be inquired to remain in course and mask as a understudy,
to carry out a disguised observation.

Pros
 The information is ordinarily objective.

 Data isn't influenced by past or future occasions.

Cons

 The data is limited.

 It is costly.

Focused Groups: Focus Groups are gathering of 2 or more individuals with comparable
characteristics or who have common characteristics. They look for open-ended considerations and
commitments from participants.

A center group could be a essential source of information collection since the information is
collected straightforwardly from the member. It is commonly utilized for market research, where a
bunch of market buyers locks in in a dialog with a inquire about moderator.

It is marginally comparative to interviews, but this includes discourses and intelligent instead of
questions and answers. Focus groups are less formal and the members are the ones who do most of
the talking, with arbitrators there to supervise the method.

Pros

 It brings about a low cost compared to interviews. Typically, since the questioner does not
get to examine with each member personally.

 The time taken is less too.

Cons

 Response predisposition could be a problem in this case since a member may be subjective
to what individuals will think approximately sharing a true opinion.

 Group thoughts does not clearly reflect person conclusions.


Experiments: An experiment could be a organized consider where the analysts endeavor to get it the
causes, impacts, and forms included in a specific process. This information collection strategy is more
often than not controlled by the analyst, who decides which subject is utilized, how they are
grouped, and the treatment they receive.

During the first stage of the experiment, the analyst chooses the subject which can be considered.
Hence, a few activities are carried out on these subjects, whereas the essential information
comprising of the activities and responses are recorded by the researcher.

After which they will be analyzed and a conclusion will be drawn from the result of the examination.
In spite of the fact that experiments can be utilized to gather distinctive sorts of essential
information, it is for the most part utilized for information collection within the research facility.

Pros

 It is usually specific since the information recorded are the outcome of a process.

 Non-response predisposition is annihilated.

Cons

 Inaccurate information may be recorded due to human fallacy.

 It is costly in nature.

Secondary data
Secondary data: Secondary data is the information that has as of now been collected through
essential sources and made promptly accessible for analysts to utilize for their possess investigate. It
could be a sort of data that has as of now been collected within the past.

An analyst may have collected the information for a specific extend, at that point made it accessible
to be utilized by another analyst. The information may too have been collected for common utilize
with no particular investigate reason like within the case of the national census.

Data classified as secondary for specific investigate may be said to be essential for another research.
Typically, the case when information is being reused, making it essential information for the primary
inquire about and secondary information for the moment investigate it is being utilized for.

Methods of collecting the Secondary Data.

 Books

 Published Sources

 Unpublished Personal Sources

 Journal

 Newspapers

 Websites

 Blogs

 Diaries

 Government Records

Books: Books are one of the foremost conventional ways of collecting information. Nowadays, there
are books available for all subjects you'll be able think of. When carrying out research, all you've got
to do is search for a book on the subject being researched, at that point select from the accessible
store of books in that zone. Books, when carefully chosen are an accurate source of accurate
information and can be valuable in creating a literature review.

Published Sources: There are an assortment of published sources accessible for distinctive research
themes. The realness of the information produced from these sources depends majorly on the
author and distributing company.

Published sources may be printed or electronic as the case may be. They may be paid or free
depending on the author and distributing company's choice.

Unpublished Personal Sources: This may not be promptly accessible and effortlessly available
compared to the distributed sources. They as it were ended up available in the event that the analyst
offers with another analyst who isn't permitted to share it with a third party.
For illustration, the product management team of an organization may require information on client
input to survey what clients think around their item and enhancement suggestions. They will have to
be collect the information from the customer service department, which essentially collected the
information to facilitate client service.

Journal: Journals are steadily getting to be more critical than books these days when information
collection is concerned. This is often since journals are upgraded frequently with unused
distributions on a occasional premise, subsequently giving to date information.

Also, journals are ordinarily more particular when it comes to inquire about. For illustration, ready to
have a diary on, "Secondary information collection for quantitative information" whereas a book will
essentially be titled, "Secondary data collection".

Newspapers: In most cases, the data passed through a newspaper is ordinarily exceptionally
dependable. Consequently, making it one of the foremost true sources of collecting secondary data.

The kind of information commonly shared in daily papers is as a rule more political, financial, and
instructive than scientific. Hence, newspapers may not be the leading source for scientific
information collection.

Websites: The data shared on websites is generally not directed and as such may not be trusted
compared to other sources. In any case, there are a few controlled websites that as it were share
accurate information and can be trusted by researchers. Most of these websites are more often than
not government websites or private organizations that are paid, information collectors.

Blogs: Blogs are one of the foremost common online sources for information and may indeed be less
accurate than websites. These days, essentially everybody possesses a web journal, and a parcel of
individuals utilize these blogs to drive activity to their site or make cash through paid ads. Therefore,
they cannot continuously be trusted. For case, a blogger may compose great things almost a item
since he or she was paid to do so by the producer indeed in spite of the fact that these things are not
genuine.

Diaries: They are individual records and as such seldom utilized for information collection by
researchers. Too, journals are ordinarily individual, but for these days when individuals presently
share open journals containing particular occasions in their life. A common illustration of typically
Anne Frank's journal which contained an exact record of the Nazi wars.

Government Records: Government records are a really vital and accurate source of secondary
information. They contain data valuable in promoting, administration, humanities, and social science
research. Some of these records incorporate; census information, wellbeing records, instruction
established records, etc. They are as a rule collected to help legitimate arranging, allotment of
reserves, and prioritizing of ventures.

Data Taken into Study.


SECONDARY DATA.

WEBSITES.

In this Research Secondary data Method is used to collect the information about the financial
statement of the company and in those websites of various companies and various third-party
websites are used to collect the financial statement of the company and being in more specific
Income statement is taken into consideration to get information about the selling and marketing
expenditures of the company.

Types of Statistical Methods used to draw conclusions.

 Descriptive Statistics

 Inferential Statistics

Descriptive Statistics

Descriptive Statistics: Utilize descriptive statistics to summarize and chart the information for a
bunch that you simply select. This handle permits you to get it that particular set of observations.

Descriptive insights depict a test. That’s lovely clear. You simply take a bunch that you’re fascinated
by, record information almost the bunch individuals, and after that use summary measurements and
charts to display the group properties. With expressive insights, there's no vulnerability since you're
portraying as it were the individuals or things that you just really degree. You’re not attempting to
induce properties around a bigger populace.

The process includes taking a possibly expansive number of information focuses within the test and
reducing them down to many significant outline values and charts. This method permits us to pick up
more experiences and visualize the information than basically pouring through push upon push of
crude numbers!

Methods used in Descriptive Statistics

 Central tendency

 Dispersion

 Skewness

Inferential Statistics

Inferential Statistics: Inferential statistics takes information from a test and makes deductions around
the bigger populace from which the test was drawn. Since the objective of inferential insights is to
draw conclusions from a test and generalize them to a populace, we got to have certainty that our
test precisely reflects the populace. This prerequisite influences our process. At a wide level, we must
do the following:

o Define the populace we are studying.

o Draw an agent test from that population.

o Use examinations that join the sampling error.

We don’t get to choose a helpful bunch. Instep, irregular examining permits us to have confidence
that the test speaks to the populace. This prepare may be a essential strategy for getting samples
that mirrors the populace on normal. Random sampling produces statistics, such as the mean, that
don't tend to be as well high or as well low. Employing a random test, ready to generalize from the
test to the broader populace. Tragically, gathering a really random sample can be a complicated
process.

Methods used in Inferential Statistics

 Hypothesis tests
 Confidence intervals

 Regression analysis

Inferential Statistics.

Regression analysis.

Regression analysis is used to determine the relationship between the Dependent variable and the
independent variable. Here the Dependent variable is the Profit of the Organization and the
Independent variable is the Marketing Budget of the Organization. And also, both the variable that is
Profit of the company and the Marketing budget of the company are Quantitative in nature.

Regression is carried out to understand the following things which are as follows:

 How strong is the relationship between the Marketing budget and the Profit of
the Organization?

 Does the change in Marketing Budget brings a significant change in the


Profitability of the company?

CHAPTER 3 (B).
ANALYSIS.

SR NAME OF THE MARKETING BUDGET NET INCOME OF THE COMPANY 2020


NO. COMPANY (million dollars) (million dollars)

1 CISCO SYSTEMS, INC 9,169 11,214

2 salesforce.com, inc. 7,930 126

3 AMAZON.COM, INC 22,008 21,331

4 APPLE INC. 19,916 57,411

5 Alphabet 17,946 40,269

TOYOTA INDUSTRIES
6 3,314 1,305
CORPORATIONS

7 Chevron 4,213 -5,561

8 Samsung electronics 47,714 22,370

9 Phillips 66 1,446 (3,714)

GENERAL MOTORS
10 7,038 6,321
COMPANY

11 Daimler -11,058 4,009

GENERAL ELECTRIC
12 12,621 5,546
COMPANY

13 Ford Motor Company 10,193 -1,276

McKesson
14 -9,182 1,120
CORPORATION

15 Siemens AG -12,210 4,760

16 JPMorgan Chase & Co. 2,476 29,131

Bank of America
17 1,701 17,894
Corporation

Costco Wholesale
18 16,332 4,002
Corporation

19 Citigroup Inc. 1,217 11,047

THE PROCTER &


20 19,994 13,027
GAMBLE COMPANY

SONY GROUP
21 15,02,625 5,82,191
CORPORATION

22 HYUNDAI MOTOR 5,455 577


COMPANY AND ITS
SUBSIDIARIES

23 Microsoft Corporation 19,598 44,281

24 Unilever plc 12,673 6,073

25 AMAZON.COM, INC. 22,008 21,331

Regression

Notes

Output Created 14-APR-2022 13:28:13

Comments

Input Active Dataset DataSet1

Filter <none>

Weight <none>

Split File <none>

N of Rows in Working Data 25


File

Missing Value Handling Definition of Missing User-defined missing values


are treated as missing.

Cases Used Statistics are based on


cases with no missing
values for any variable
used.
Syntax REGRESSION

/MISSING LISTWISE

/STATISTICS COEFF OUTS R


ANOVA

/CRITERIA=PIN(.05)
POUT(.10)

/NOORIGIN

/DEPENDENT PROFIT

/METHOD=ENTER
MARKETING.

Resources Processor Time 00:00:00.00

Elapsed Time 00:00:00.01

Memory Required 2400 bytes

Additional Memory 0 bytes


Required for Residual Plots

[DataSet1]

Variables Entered/Removeda

Variables Variables
Model Entered Removed Method

1 MARKETINGb . Enter

a. Dependent Variable: PROFIT

b. All requested variables entered.

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate

1 .992a .985 .984 14467.256

a. Predictors: (Constant), MARKETING

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 312193976537. 1 312193976537. 1491.599 .000b


101 101

Residual 4813934584.89 23 209301503.691


8

Total 317007911122. 24
000

a. Dependent Variable: PROFIT

b. Predictors: (Constant), MARKETING

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 9303.794 2973.621 3.129 .005

MARKETING .382 .010 .992 38.621 .000

a. Dependent Variable: PROFIT


CHAPTER 4.

Conclusions.

ANOVA TABLE.

The value we are getting in the ANOVA TABLE for the significance level is .000 which means this is
less than 0.05 that means our predictor that is MARKETING BUDGET is significant variable to
determine the PROFIT OF THE COMPANIES.

F (1,23) = 1491.599, P = 0.00

(1,23) represents the degree of freedom.

1491.599 is the F value

P represents the significance value.

MODEL SUMMARY.

If we look at the adjusted r square and multiplied it by 100 in terms of percentage, we get how much
the variance in the depended variable can be explain by the independent variable.

In our case .984 x 100 = 98.4 % which means the variance in the PROFIT OF THE COMPANIES is 98.4
% affected by the MARKETING BUDGET of the Companies.

COEFFICIENTS.

If we look at our coefficients table and in that if we look at the unstandardized coefficients and look
for the beta column, we discover that our slope is .382 and our constant is 9303.794, so our equation
of the line becomes

Y = 0.382 x + 9303.794.

And hereby, we conclude that the change in MARKETING BUDGET does have a Significant impact
on the overall PROFITABILITY OF THE COMPANY from the above results.
CHAPTER 5.

REFERENCES.

https://www.ama.org/the-definition-of-marketing-what-is-marketing/

https://blog.hubspot.com/marketing/what-is-marketing
SR NO. NAME OF THE COMPANY MARKETING BUDGET (million dollars) GROSS PROFIT OF THE COMPANY 2020 (million dollars)
1 CISCO SYSTEMS, INC 9,169 11,214
2 salesforce.com, inc. 7,930 126
3 AMAZON.COM,INC 22008 21331
4 APPLE INC. 19,916 57,411
5 Alphabet 17,946 40,269
6 TOYOTA INDUSTRIES CORPORATIONS 3314 1305
7 Chevron 4,213 -5,561
8 samsung electronics 47714 22370
9 Phillips 66 1,446 -3,714
10 GENERAL MOTORS COMPANY 7,038 6,321
11 daimler -11,058 4,009
12 GENERAL ELECTRIC COMPANY 12,621 5,546
13 Ford Motor Company 10,193 -1,276
14 McKESSON CORPORATION -9,182 1,120
15 Siemens AG -12210 4760
16 JPMorgan Chase & Co. 2,476 29,131
17 Bank of America Corporation 1,701 17,894
18 Costco Wholesale Corporation 16,332 4,002
19 Citigroup Inc. 1,217 11,047
20 THE PROCTER & GAMBLE COMPANY 19,994 13,027
21 SONY GROUP CORPORATION 15,02,625 582,191
HYUNDAI MOTOR COMPANY AND ITS
22 5455 577
SUBSIDIARIES
23 Microsoft Corporation 19,598 44,281
24 Unilever plc 12,673 6,073
25 AMAZON.COM, INC. 22,008 21,331
MARKETING PROFIT
9169 11214
7930 126
22008 21331
19916 57411
17946 40269
3314 1305
4213 -5561
47714 22370
1446 -3,714
7038 6321
-11058 4009
12621 5,546
10193 -1276
-9182 1120
-12210 4760
2476 29131
1701 17894
16332 4002
1217 11047
19,994 13027
1502625 582,191
5455 577
19598 44281
12673 6073
22008 21331

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