Effects of Marketing Mix On Sales Performance (BSM 340 Assignment)
Effects of Marketing Mix On Sales Performance (BSM 340 Assignment)
Effects of Marketing Mix On Sales Performance (BSM 340 Assignment)
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TABLE OF CONTENTS
1.0 INTRODUCTION.........................................................................................................3
1.1 Background of the study...........................................................................................3
1.2 Problem statement...................................................................................................5
1.3 Research objectives.................................................................................................5
1.4 Research hypotheses...............................................................................................6
1.5 Significance of the study..........................................................................................6
1.4 Scope.......................................................................................................................7
1.5 Definition of key terms..............................................................................................7
2.0 LITERATURE REVIEW...............................................................................................7
2.1 Studies on the relationship between product and sales performance.....................8
2.2 Studies on the relationship between price and sales performance.........................9
2.3 Studies on the relationship between place and sales performance......................10
2.4 Studies on the relationship between promotion and sales performance...............11
2.5 Theoretical framework- The 4P theory of marketing..............................................12
2.6 Conceptual framework...........................................................................................13
3.0 METHODOLOGY......................................................................................................13
3.1 Research Design....................................................................................................13
3.2 Research population..............................................................................................14
3.3 Sample size............................................................................................................14
3.4 Sampling technique................................................................................................14
3.5 Data collection techniques.....................................................................................14
3.6 Data analysis..........................................................................................................15
3.7 Ethical considerations............................................................................................15
WORKPLAN....................................................................................................................16
REFERENCES................................................................................................................17
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1.0 INTRODUCTION
A research proposal's background section explains the study's purpose, the research
objectives, the research hypotheses, the study's scope, the study's importance, and the
definition of key terminology, as well as other important information.
Firms use marketing to promote their products and services (Fuerderer, Herrmann and
Wuebker, 2013). Marketers utilize the marketing mix to advertise their products and
services. It's no secret that financial services are becoming increasingly important. The
importance of marketing strategies in an organization's long-term performance is
highlighted by Green, Whitten, and Inman (2014). This means that the marketing goals
should be defined as well as measurable.
It has the following benefits according to Mullins, Walker and Boyd (2012). Both
methods are employed. First and foremost, it helps employees understand where the
organization is headed and what they are expected to accomplish. If you want to know
how successful your business is, you can use this information to do that too! In addition,
it will assist encourage the personnel, both leaders and their teams, and reward them at
the end of the project when it is finished (Fuerderer et al, 2013).
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hampered the growth of many companies (Rodriguez, Peterson and Vijaykumar, 2012).
So has it been with Trade King's newly launched product 'Chibwantu'.
Since its quick expansion, Trade Kings has become a group of companies that are
managed and supervised by a singular organization, the Trade Kings Group of
Companies. In addition to Trade Kings-South Africa and Original Trade Kings Limited,
the current list of firms includes Yoyol Foods Limited, Universal Mining & Chemical
Industries Limited (UMCIL), Swiss Bake, and Trade Kings-South Africa (Chuungu,
2015). Before, Trade Kings Limited was responsible for these companies as a collective
whole. Since its inception, Trade Kings Limited has extended its product line from a
single product, Boom detergent paste, to several. Over time, the group's product line
has grown to encompass more than 300 items. African lollipops are made by Trade
Kings Group, the continent's largest lollipops maker. About 6,000 individuals currently
work for the company that was founded with just 20 employees (Chuungu, 2015). With
the acquisition of significant control in big tree and dairy gold, the group has expanded
its portfolio. Dairy Gold's Ama Sip Sip Chibwantu and Vatra, a water brand launched in
July 2020, are both produced by these subsidiaries.
Trade kings has been enjoying a comfortable market share dominance for quite some
time now in Zambia’s domestic market due to limited competition. The company’s
marketing strategy has positioned it firmly to withstand any competition from foreign
multinational corporations. The strategy that is used focuses mainly on strong
advertising and extensive distribution network from the plants to wholesale customers
as well as export markets. However, this strategy may not be effective for all products in
trade kings’ group. This is evident in the loss of sales for the new product (Chibwantu)
that was recently launched. Whereas one can speculate that the fall in sales can be
attributed to the effects of the Covid 19 pandemic, it would be prudent to request for
empirical evidence on which an informed decision can be made as to what is the major
contributing factor to the unprecedented downfall in sales turnover. On this background,
this study seeks to analyze the factors causing low sales turnover of the Chibwantu
product by adopting the 4Ps of marketing as the study variables.
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1.2 Problem statement
An effective marketing strategy is critical to achieving corporate targets. Due to
increased rivalry in the marketplace, many organizations fail to fulfill their objectives
while others change their marketing approach as a result (Renart, 2007). Several
businesses have begun to examine how they can improve their retail services in order
to achieve their unit and company-wide goals. In order to differentiate and add value to
their products, they are working on developing coherent strategies.
Globally, various research projects have been carried out on newly launched products
and the results have shown that at least one attribute in the marketing mix has an
impact on sales. If you look at the research done by Keramati, Ardalan and Ashtiani
(2012), they identified a link between marketing mix and sales success in the context of
Iranian steel private enterprises. Similarly, Bintu's (2017) research on the influence of
marketing mix strategy on the performance of small-scale firms in Maiduguri
Metropolitan, Borno State, Nigeria came to this conclusion. According to a study by
Saguti (2015), marketing mix has an impact on sales promotion because product
features, such as perceived quality and packaging, influence product consumption.
Dwelling on the findings of these few studies, it becomes apparent that the performance
of new product sales may be a result of variations in the marketing mix, not the product
itself.
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2. To evaluate the relationship between product and sales performance of
Chibwantu
3. To evaluate the relationship between price and sales performance of Chibwantu
4. To evaluate the relationship between place and sales performance of Chibwantu
5. To evaluate the relationship between promotion and sales performance of
Chibwantu
Ho: There is a positive relationship between price and sales performance of Chibwantu
Ha: There is a negative relationship between price and sales performance of Chibwantu
Ho: There is a positive relationship between place and sales performance of Chibwantu
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that is causing the sales to fall. Further, the study will act as a feedback tool that will
provide management with the first hand customer feedback about the product and what
can be done to enhance customer satisfaction. It will also inform management whether
the investment in the product is commercially feasible in the long term so that other
necessary remedies such as value engineering could be made.
1.4 Scope
The study borders on one specific product from the Trade Kings Group namely
Chibwantu. This beverage is produced by a subsidiary named Dairy gold and is sold
under the umbrella of the trade kings’ group. Only data relating to this particular product
will be considered in this study. Further, data will collect from Lusaka district.
Product: Product is anything that is supplied to the market as a result of satisfying the
wants or needs of customers (Kotler and Armstrong, 2013).
Price: According to Kotler and Armstrong, cost is the sum of all values that buyers give
up in return for a product or a service (2008).
Place: A company's location and number of stores are determined by the convenience
of the customers (Kanoga, 2016).
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which the study will be anchored is also briefly discussed from which a conceptual
model to show the interactions of the theoretical variables of the study is developed.
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An organization's performance improved significantly as a result of branding. According
to research It was observed that brand loyalty, awareness, and image have a large
positive impact on profitability; however brand quality has a negative impact on
profitability (Kim, Kim, and Jeong, 2003).
The technique of penetration pricing is used by companies to price their products and
services cheaper than the typical price of those items and services, according to Matan
(2016). Using this kind of marketing, a company can achieve market acceptance, grow
its market share, or deter new competitors from entering the market. It is difficult for
corporations to raise a product's price if they are using a very low pricing, say Marn,
Roegner, and Zawada, because they are missing out on possible revenues and giving
the impression that the product is of low quality (2003). Cheap products and services
make it harder for new products to achieve market share because of their low price
point (Golder and Tellis, 2004).
It was shown that temporary retail price reductions improve sales in another study by
Martnez et al. Nelson and Chiew looked into the influence of the fear of losing face in
customers' behavioral responses to sales promotions as well in 2005. There is a
correlation between product testing and price reductions as well as free samples, bonus
packs, and in-store displays according to the study's results. Students at a university
were studied by Osman, Chan, and Foon (2011) to see how sales promotions affected
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their buying behavior. A total of 150 people took part in the study. There was a
systematic random sampling that was employed. In order to collect data, self-
administered questionnaires were utilized. As a result of the study, there was a
significant correlation between attitudes toward coupons for price discounts and buying
behavior.
Businesses based in urban regions earn larger returns than those located in rural areas,
according to Heck, Rowe, and Owen (1995). Bradley (2000) reminds out that geography
has a critical impact in the survival of an organization. Small and Medium-Sized
Technology Enterprises (SMEsTE) in Europe have been investigated by Edidiju (2015)
for their innovation and performance. A positive correlation was observed between a
company's performance and its geographic proximity. The relationship between
business location and client loyalty was examined in a study by Eze, Benedic and Juliet
(2015). Based on a survey, this study was carried out. One hundred people were
surveyed. To obtain the data, structured questionnaires were used. However, the
results showed that the business's location had an impact on its success in a major way
Customer loyalty is influenced by a company's proximity to its customers, according to
the study's conclusion.
As part of their investigation, Egle and Maciejewska (2012) focused on the physical look
of the service cape. An emotionally pleasing supermarket environment has an impact
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on customer purchasing decisions according to Ballantine, Jack, and Parsons (2010)
who studied the effects of atmosphere cues on shopping experiences. According to
research, customers' interest is increased when music is played at a moderate volume
with well-spaced sound sources.
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had the biggest impact on sales volume. Direct marketing had the smallest impact on
sales volume.
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2.6 Conceptual framework
Product
Price
Sales
Target customer
Performance
Place
Promotion
3.0 METHODOLOGY
This section discusses the study's research methodology. It provides an overview of the
study design, population and sample size, sampling strategies, data collection and data
analysis that were employed in the research.
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3.2 Research population
"Population" refers to the total set of relevant units or elements studied by researchers,
according to Mugenda & Mugenda (2003). The study's intended audience includes the
customers that consume Chibwantu and middle level managers at trade kings. There
are currently 20 employees serving in various middle management portfolios from
production supervisor, sales assistant, finance assistant and marketing assistant
(www.tradekings.co.zm). The population of consumers however will be premised on
Zambia’s adult financially inclusive population which is in formal employment as this will
represent consumers who have financial capacity to consume. According to the 2020
FinScope report, the formal financial inclusion rate increased to 61.3% in 2020
compared to 38.2% in 2015 of the adult population. Further, the report found that the
adult population in Zambia is 9.5 million. Of this population, 5.8235 million is financially
inclusive and this is the target population of the study.
N 5,823,500
n= = =399.99 400 respondents
[ 1+ N ( e ) ] [ 1+5,823,500 ( 0.05 )2 ]
2
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distributed to consumers while interviews will be conducted with the middle
management staff from various departments of the company.
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WORKPLAN
Nov- Dec-
Activity/Time frame Sep-21 Oct-21 21 21
Proposal presentation
Company consent
Development of research instruments
Recruitment of respondents
Distribution of research instruments
Retrieval of research instruments
Data coding and analysis
Compilation of research findings
Presentation of research findings to
management
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