CHAPTER 1 INTRODUCTION AND RESEARCH METHODOLOGY

Transcription

1 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 Data Required Data Source Instruments and scales Sampling Data Analysis 1.9 Period of Study 1.10 Pilot Testing 1.11 Limitation of Study 1.12 Chapterisation 1.13 Conclusion

2 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 Shivaji University,Kolhapur Page 1

3 design and overall plan of the present study. It is concerned with the setting of study sampling techniques, data collection techniques 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 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 Shivaji University,Kolhapur Page 2

4 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 Shivaji University,Kolhapur Page 3

5 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 Shivaji University,Kolhapur Page 4

6 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. Shivaji University,Kolhapur Page 5

7 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. Shivaji University,Kolhapur Page 6

8 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 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 Shivaji University,Kolhapur Page 7

9 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 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 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 e = Assumed error 10% Shivaji University,Kolhapur Page 8

10 The sample calculated per district of readers and distributors are to be 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 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 Readers Newspaper Distributors Advertising Clients Advertising Agencies Total 1 Satara Kolhapur Pune Total 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 Period of Study: Shivaji University,Kolhapur Page 9

11 Study was conducted during 2012 to 2015 and data from samples were collected from June 2013 to December Beside this the secondary data was collected for ten years from 2004 to 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. Cronbach's Alpha N of Items Shivaji University,Kolhapur Page 10

12 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 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 with eleven items. Cronbach's Alpha N of Items 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. Cronbach's Alpha N of Items The Cronbach s Alpha counts to be 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. Cronbach's Alpha N of Items The final eighteen items retained with Cronbach s Alpha to collect final data. The wording of few statements was modified to avoid biased understanding of sample respondents. Shivaji University,Kolhapur Page 11

13 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 Cronbach's Alpha N of Items 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 Cronbach's Alpha N of Items 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 Cronbach's Alpha N of Items Shivaji University,Kolhapur Page 12

14 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. Cronbach's Alpha N of Items The reliability found to be 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. Cronbach's Alpha N of Items After deleting the said variable the reliability measured to be The rest thirteen items were carried forward as it is for final data collection 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. Shivaji University,Kolhapur Page 13

15 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 only 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 Chapter 2 Chapter 3 Chapter 4 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. Review of literature and conceptual framework This chapter deals with the review of literature related to the selected study topic. 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. 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 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- Shivaji University,Kolhapur Page 14

16 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. Shivaji University,Kolhapur Page 15