Republic of the Philippines

BILIRAN PROVINCE STATE UNIVERSITY

SCHOOL OF ARTS AND SCIENCES

PERCEIVED PROMOTIONAL MIXED

________________________________________

A Research Study
Presented to the BSBA Faculty of
A Case Study
Biliran Province State University
Naval, Biliran, Philippines

In Partial Fulfillment
of the Requirements for the Degree

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

________________________________________

Submitted By:

Estrada, Alaiza

Veruen, Sherry Mae J.

Peden, Mark Jason

INTRODUCTION

1.1 Background of the Study

Promotional mix is a combination of marketing methods including advertising,

sales, public relations and direct marketing to achieve a specific marketing goal. The

promotional mix is typically only part of a larger marketing mix. Nowadays, the many

promotional tactics used by business organization to survey in the modern business

market. Promotion mix is a blend of communications fools used by a firm to carry out

the promotion process and to communicate direct by with target markets. These

promotional mix tools include advertising, direct marketing, sales promotions, public

relations, and personal selling.

Promotion is exercise in information, persuasion and influence. So, the

purpose of promotion is to reach the targeted consumers and pervade them to buy.

Promotion is vital element of marketing mix. Brand equity is one of the most

important concepts in business practice as well as in academic research. This is

because success full brands can allow marketers to gain completive advantage

(lesser 1995) , including the opportunity for success full extensions, resilience

against competitors, promotional presorts and the ability to create barriers to

competitive entry (Farquhar, 1989) High level of brand equality increases consumer

satisfaction, repurchasing intent, and degree of loyalty Brand Equity has been

defined as “the differential effect of brand knowledge on consumer response to the

marketing of the brand” (Keller 1998). Brand equity is set of assets and liabilities

linked to a brand, its name and symbol that add to or subtract form the value

provided by a prouder or service so a firm and or that firm’s customers” Brand equity
consists of consists of four dimensions like brand loyalty, barns awareness,

perceived Quality and brand image (Asker 1991,1996).

A retailer or retail store is any business enterprise whose sales volume comes

primarily from retailing. Retail organization exhibits great variety and new forms keep

emerging. These are store retailers, and retail organizations. Consumers today can

shop for goods and services in a wide variety of stores. The best known type of

retailer is the department store. A retailer is at the end of the distributive channel.

Retailer provides goods and services to the ultimate consumer. Retailing is the set of

business activities that adds value to the products and services sold to the

consumer for their personal or family use. A retailer buys goods or products in large

quantities from manufacturers or importers, either directly or through a wholesaler,

and then sells smaller quantities to the end user. Retail establishment are often

called shops or stores. Retailers are at the end of the supply chain. Manufacturing

marketers see the process of retailing as a necessary part of their overall distribution

strategy. The term “retailer is also applied where services the needs of a large

number of individuals, such as a public utility, like electric power (Prasad Kotni

2016).

Research Objectives:

1. To determine the demographic profile of the respondents in terms of:

A. Age

B. Gender

C. Civil Status

D. Educational Attainment

E. Position
 2. To determine the perceived promotional mix of Retail Stores in Naval, Biliran

in terms of;

A. Product

B. Place

C. Price

D. Promotion

Theoretical Framework

This study is anchored on the promotional mix by different authors, the

combination of marketing communication techniques a business utilizes to reach and

sway its target audience is referred to as the perceived promotional mix. This

comprises direct marketing, personal selling, public relations, and sales promotion.

According to Kotler and Keller (2012), contend that for the perceived promotional mix

to be most successful, the demands and traits of the target market should be taken

into consideration should be adapted to the specific requirements and characteristics

of the desired market. Sales promotion is another important aspect of the perceived

promotional mix. Sales promotion is a short-term strategy used to encourage

consumer purchases. According to Kotler and Keller (2012), sales promotions can

take many forms, including coupons, discounts, and contests. Sales promotions are

frequently used to boost sales during slow periods or to clear out inventory.

Another important component of the perceived promotional mix is public

relations. The practice of managing the spread of information between an

organization and its publics is known as public relations. Public relations, according

to Cutlip, Center, and Broom (2000), can take many forms, including press releases,

media relations, and crisis management. Public relations is frequently used to create
and maintain a positive image for a business or product. And an important aspect of

the perceived promotional mix is personal selling. The process of communicating

with potential customers in order to persuade them to buy a product or service is

known as personal selling. Personal selling, according to Kotler and Keller (2012),

can take many forms, including face-to-face meetings, telemarketing, and direct mail.

Personal selling is frequently used to develop long-term relationships.

Promotional mix. The promotional mix refers to the combination of various

communication tools and techniques used by a business to promote its products or

services. It includes advertising, sales promotion, public relations, personal selling,

and direct marketing. (Kotler, P., & Keller, K. L. (2012). Marketing management.

Pearson.)

Product. A product is a tangible or intangible item that is created or

produced by a company or individual and is intended for sale or exchange. (Kotler,

P. & Keller, K. L. (2012). Marketing Management. Pearson Education)

Promotion. Promotion refers to the marketing efforts used to increase

awareness, interest, and sales of a product or service. It is an essential aspect of a

company's overall marketing strategy, and includes various tactics such as

advertising, sales promotions, public relations, and personal selling. (Kotler, P., &

Keller, K. L. (2016). Marketing management. Pearson.)

Retail Store. According to author Michael Levy in his book "Retail

Management: A Strategic Approach," a retail store is defined as "a business

establishment that sells merchandise directly to consumers, usually in a fixed

location."
 Price. The price is how much money consumers pay for your product. You

should consider taking time to come up with a price where the company makes a

profit but the cost is still attractive to the consumer.

Product. The product is the service or good that meets the customer’s

demand or need. You may revise this over the years to adapt to changes in the

market.

Place: Place entails knowing the best area in which to distribute your product.

This can include knowing the demographics and purchasing habits of the consumers

in that location.

Promotional Mix

Place
Product
Product

Retail Stores

Promotion Price

Fig. 1
Conceptual Framework

The figure below shows the relationship between dependent and independent

variables of this research. It shows that consumers purchasing decision is a

dependent variable as it depends upon the various sales promotion tools. On the

other hand advertising, sales promotion, public relations and direct marketing are

independent variables.

Dependent Independent

Advertising

Sales Promotion
Retail Store

Public Relations

Direct Marketing
Scope and Delimitation

This study aims to investigate the perceived effectiveness of the promotional

mix used by retail stores in Naval, Biliran. The research will specifically focus on the

different elements of the promotional mix, including advertising, sales promotion,

public relations, personal selling, and direct marketing, and how these elements are

perceived by customers in the area. The study will also examine the impact of these

promotions on customer purchasing behavior.

The choice of retail stores in Naval, Biliran as the research location was

based on the researchers' interest in understanding the promotional strategies of

local businesses in the area. The scope of the study is limited to retail stores within

the municipality of Naval, Biliran and excludes other types of businesses or those

located in other areas. The delimitations of the study include the use of self-reported

survey data and the focus on the perception of the customers rather than the actual

implementation of the promotional mix by the retail stores.

Significance of the Study

This study is conducted to provide information regarding the perceived

promotional mixed of Retail Stores in Naval, Biliran. This research would be

beneficial to the person which were involved in this study. They were the following;

Customer. This study will help their opinion and set standards that will lead to

the positive improvement of certain business. In order to progress their retail stores,
they can stating suggestions what they are going to pay attention and enhance

positive outcome to them.

Employees. This will help them to arrange good and services when it’s

necessary.

Government. This study will help them to stay informed and comply with

government regulations and policies in order to operate successfully

Investor. This study will help them to provide the financial resources that are

needed to start and grow retail stores. Additionally, they can provide valuable

insights and expertise that can help in terms of strategic decisions.

Retail Stores. This study will help the Retail Stores in Naval, Biliran the sales

promotion at the workplace to keep the business going.

Researchers. This research study is helpful to the researchers as they will

gained knowledge about promotional mix among employees in the workplace that

will be very essential when they start pursuing their careers.

Future Researchers. This research study will be helpful to future researchers

as it will serve as their reference in conducting the same study.

Advertising. It is a paid announcement, wherein the message is conveyed to

attract the customer and bring in attention towards the products through a medium.

Consumer Behavior. It is the study of how individual customers, groups or

organizations select, buy, use, and dispose ideas, goods, and services to satisfy

their needs and wants. It refers to the actions of the consumers in the marketplace

and the underlying motives for those actions.

Direct Marketing. It is a technique in which companies sell their products

directly to the customers by eliminating the middlemen.

Sales Promotion. Apart from advertising, another significant promotional tool

is sales promotion, which helps in improving the sales by influencing the potential

customer to buy the promoted product.

Public Relations. Every company wants to build and maintain an image in

front of the public, through various channels.

Promotional Mix. A promotional mix is a combination of marketing methods

including advertising, sales promotion, public relations and direct marketing to

achieve a specific marketing goal.

Perceived promotional mix refers to the combination of marketing

communication tools used by retail stores to reach and influence their target

audience. Advertising, sales promotion, public relations, personal selling, and direct

marketing are examples of these tools. The perceived promotional mix is an

important aspect of retail marketing because it helps to attract and retain customers,

create brand awareness, and drive sales. In this review of related literature, we will

look at the various components of retail stores' perceived promotional mix and their

effects on consumer behavior.

We'll also look at the strategies and best practices used by retailers to

implement an effective promotional mix. In order to be most effective, Kotler and

Keller (2012) emphasized the need for retail stores to tailor their promotional mix to

the specific needs and characteristics of their target market. Belch and Belch (2015)

discussed the role of advertising in raising brand awareness and distinguishing a

retail establishment from its competitors. Cutlip, Center, and Broom (2000)

emphasized the importance of public relations in establishing and maintaining a

positive image for a retail establishment.

These authors provide useful insights into the perceived promotional mix and

its impact on retail store success. According to Aaker and Joachimsthaler (2000), is

an important short-term tactic for stimulating consumer purchasing. Lauterborn

(1990) emphasized the significance of direct marketing in targeting specific market

segments. Finally, Kotler and Keller (2012) discussed personal selling as an

term relationships with customers.

Promotional Mix

Promotional mix refers to the various tools and techniques that a company

uses to promote its products or services to its target audience. The promotional mix

typically includes a combination of advertising, sales promotion, public relations,

personal selling, and direct marketing. Each of these elements serves a different

purpose and can be used in various combinations to achieve a company's marketing

goals.

One of the key differences between the elements of the promotional mix is

their intended audience. Advertising is designed to reach a large and diverse

audience, while personal selling is focused on one-on-one communication with

specific individuals or groups. Public relations, on the other hand, is focused on

building and maintaining relationships with a company's various publics, such as

customers, employees, and shareholders.

Product

Products are defined as tangible or intangible goods designed to meet the

needs or desires of consumers. These can range from tangible goods like clothing,

electronics, and food to services like transportation and consulting. Products can be

developed by a wide range of organizations, from small businesses to large

corporations.

Various authors have written about the idea of products and their significance

in the marketplace. Steven Haines, for example, defines a product in his book "The

Product Manager's Handbook" as "a bundle of features, benefits, and attributes that
are designed to meet the needs of a specific target market." He also emphasizes the

importance of understanding consumer needs and wants in order to create

successful products.

Place

The distribution and availability of a product or service to customers is

referred to as place in this context. Place is regarded as an important factor in the

success of a business in the retail industry. Researchers discovered that the location

of a retail store has a significant impact on sales, with businesses in high-traffic

areas or popular shopping districts faring better than those in less desirable areas

(Kotler & Keller, 2016).

Place is also considered an important factor in determining the value of a

property in the field of real estate. Researchers discovered that factors like proximity

to transportation, schools, and other amenities can have a significant impact on a

property's value (Zhang & Li, 2019). Furthermore, researchers have discussed the

concept of place branding, which refers to the process of establishing a positive

image and reputation for a location in order to attract residents, tourists, or

businesses. Scholars have recognized the value of place branding as a tool for

economic development, urban regeneration, and community development (Kotler,

Asplund, Rein, & Haider, 2002).

Promotion

The various marketing activities and tactics used to communicate with and

persuade potential customers to purchase a product or service are referred to as

promotion. Different authors have defined promotion in various ways in the literature.
 Kotler and Keller (2006) define promotion as the "communication link between

sellers and buyers for the purpose of influencing, informing, or persuading a potential

buyer's purchasing decision". They argue that promotion, along with product, price,

and place, is an important component of the marketing mix. Meanwhile, Armstrong

and Kotler (2008) define promotion as "the communication function of marketing that

is designed to inform, persuade, or remind target customers about a product or

service, or to create a favorable image for the company or brand." Promotion is

defined as a marketing communication function that is designed to inform, persuade,

or remind target customers about a product or service, or to create a favorable

image for the company or brand in "Principles of Marketing" by Philip Kotler and

Gary Armstrong (2017). They also argue that promotion is necessary for raising

awareness and interest in a product or service, as well as for developing long-term

customer relationships.

To summarize, promotion is a marketing communication function defined as

the communication link between sellers and buyers to influence, inform, or

persuading a potential buyer's purchasing decision, creating awareness and interest

in a product or service, and building long-term relationships with customers.

Retail Store

A retail store sells goods and services to customers for personal or household

use. A retail store is defined as "a shop or business that sells goods directly to the

public, typically in small quantities" by the Oxford English Dictionary. Retail stores

can take many forms, including brick-and-mortar shops, online stores, and vending

machines.
 Several studies have been conducted to investigate the characteristics of

retail stores and their influence on consumer behavior. Kim and Park (2015)

discovered, for example, that store atmosphere, including lighting, music, and layout,

can influence consumer perceptions of the store and their likelihood of making a

purchase. Kline and Rosenberg (1986) discovered that retail stores can also

influence consumer attitudes and behaviors.

Lau et al. (2006) have mentioned in his editorial that there are numerous

factors which influenced consumers brand loyalty towards a particular brand. The

factors are; product, place, price and promotion. These studies will significantly look

at product quality as a feature that influences brand loyalty.

The promotional mix is used to communicate with customers about brand

value and to build a relationship between the store and the shopper. Therefore, the

promotional mix is also called a marketing communication mix (Armstrong and

Kotler, 2009). The objective of a promotion is to build awareness, create interest,

evaluate information, create demand, build brand awareness and loyalty (Blattberg,

Briesch and Fox, 1995). All promotional efforts aim to increase sales. To encourage

the buyer and shopper to think of brands and products, the advertising and sales

promotion should influence customers directly, whereas publicity and public relations

influence sales indirectly. Most people would rather purchase something they like

(Alessandra, 2005). The interaction between people has become a critical element,

providing the necessary touch points for generating a memorable experience.

Experiential marketing creates an enjoyable experience and is entertaining for the

consumer (Srinivasan and Srivastave, 2010). Some product usage experience is

related to the multi-sensory, fantasy and emotive aspects of consumer behavior and

can be defined as “hedonic consumption” (Hirschman and Holbrook, 1982).

by rational and emotional touch points, it can make connections between sales

person and consumers. Hence, to increase consumers’ motivation and spend more

time in store, it is better to provide experience stimuli that meet consumers’ needs

and intelligence that makes them become immersed in their shopping ventures

(Srinivasan and Srivastave, 2010). In other words, the sales persons must have

awareness of consumers’ shopping habits and marketing trends to create enjoyable

atmosphere and entertaining experience to keep consumers coming back.

The chapter presents the research design, research locale, respondents,

sampling design, research instrument, data gathering procedure, scoring procedure,

and statistical treatment.

3.1 Research Design

This study will use the descriptive survey method through the aid of an adopted

questionnaire as the main instrument for data collection. The questionnaire is divided

into two parts. The first part will determine the profile of the respondents in terms of

Age, Sex or Gender and signature. The second part is the 5-point Likert Scale

consisting five questions on Advertising, Sales Promotion, Consumer Behavior,

Public Relations, and Direct Marketing.

3.2 Respondents of the Study

Aaker, D. A. 1991.”Managing brand equity”, New York: The Free Press

Aaker, D. A. 1996.”Measuring brand equity across products and markets”, California

Management Review, 38(3), pp.102–120

Agarwal, M.K., Rao, V.R., (1996), „An Empirical Comparison of Consumer-Based

Measures of Brand Equity“, Marketing Letters, 7(2):237-247.

Alessandra, T. (2005). Prospecting promotional strategies, Retrieved from

http://www.Assessmentbusinesscenter.com/.

Armstrong, G. & Kotler, P. (2009). Marketing An Introduction (9 th ed.). Pearson

Education, Inc.

By Indeed Editorial Team (2019). Marketing’s Promotional Mix: Definition and How

To Use II, Retrieved from https://www.indeed.com/career-advice/career-

development/marketing-promotional-mix.

Blattberg, R. C. & Neslin, S.A. (1989). Sales promotion: The long and the short of it.

Marketing Letters, 1(1): 81-97.

pp.24−33. Gupta S. 1988. “Impact of sales promotions on when, what, and how

much to buy”, J Mark Research 25, pp.342–55.

Keller, K.L., (1998), Strategic Brand Management: Building, Measuring, and

Managing Brand Equity, (New Jersey: Prentice Hall)

Konti, D. P., (2016). A Study on Customer Perception towards Retail Mix Strategies

of Hyderabad Retail Market.

Lau M.M., Chang, M.S., Moon, K., & Liu, W.S. (2006). The brand loyalty of

sportswear in Hong Kong, Journal of Textile and apparel. Technology and

Management, 5, 1-13.

Meyer, A. (2006). Are you experiential? Multi-channel Merchant, 12(8): 1-55.

Srinivasan, S. R. & Srivastava, R. K. (2010). Creating the futuristic retail experience

through experiential marketing: Is it possible? An exploratory study. Journal of Retail

& Leisure Property, 9, 193-199.

Cutlip, S. M., Center, A. H., & Broom, G. M. (2000). Effective Public Relations (8 th

ed.). Prentice Hall.

Kotler, P., & Keller, K. L. (2012). Marketing Management (14 th ed.). Pearson

Education.

Lauterborn, R. (1990). New Marketing Litany: Four Ps Passé. Advertising Age,

Kotler, P. (1997). Marketing Management: Analysis, Planning, Implementation and

Ries, A., & Trout, J. (1981). Positioning: The Battle for Your Mind. McGraw-Hill.
Public Relations Society of America. (n.d.). What is Public Relations? Retrieved from

https://www.prsa.org/about-us/what-is-public-relations

Rackham, N. (1988). SPIN Selling. McGraw-Hill.

Direct Marketing Association. (n.d.). What is Direct Marketing? Retrieved from

https://thedma.org/resources/what-is-direct-marketing/

Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.

Haines, S. (2008). The Product Manager's Handbook. McGraw-Hill Professional.

Levy, M. (2018). Retail Management: A Strategic Approach. Pearson.

Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.

Zhang, J., & Li, Y. (2019). The impact of location characteristics on property values:

Evidence from China. Journal of Real Estate Research, 41(2), 129-156.

Kotler, P., Asplund, J., Rein, I., & Haider, D. H. (2002). Place branding: creating a

strategic corporate image for locations. Place Branding and Public Diplomacy, 1(1),

9-26.

Armstrong, G., & Kotler, P. (2008). Marketing: An Introduction. Pearson Education.

Kotler, P., & Armstrong, G. (2017). Principles of Marketing. Pearson Education.

Kim, H., & Park, C. (2015). The influence of store atmosphere on consumer

behavior: An experimental study. Journal of Business Research, 68(2), 341-349.