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CHAPTER 1
Introduction
Most of the business owners main objective is to
create and produce satisfied customers who will
continuously patronize their product. Products with high
quality and fashion trending.
Fashion is custom and style that is prevailing mostly
in dress or behaviour. Most of the time fashion is used to
express life and wants in a given time and place. It is
also used to unite those of a social class and segregates
them from the others.According to Cumming (2004) as cited
by Jandonero et al.(2014) trend style influencesbehaviour
and lifestyle of a person. Itis a quicksilver mode of
creativity for many people in diverting their attention.
Fashionable items are mostly seen from celebrities, high
society and supermodels.
According to CyntiaDurcain, a form of imitation and so
of social equalization, but paradoxically, in changing
nonstop, it differentiate one time from another and one
stratum for another is the so called Fashion.Fashion is a
state of mind, unites those of a social class, and
segregates them from the others, a spirit and an extension
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of ones self. Most of all fashion is almost being
comfortable with you, translating self-esteem into a
persons style
A Boutique, according to Lidell&Scott, 2011, is a
small version of shopping outlet for fashionable clothes
and jewelleries appropriate for the occasion. The word
boutique is French for shop via Latin from the Greek
storehouse.
As being on the fashion industry or business,
Mikaelsen, 2011 states that Boutique owner must have a
fashion and insider whose job requires insights to learn
trends and this will also help to encourage customer to
promote the product to the public. And boutique must know
proper promotion to attract potential customers.
A marketing strategy is a marketing logic which the
business unit hopes to achieve its marketing objectives,
(Kotler, Armstrong,Saunders and Wong,1999). It is the broad
principles by which the business units expects to achieve
its marketing objectives. Consist of basic decision and
total marketing expenditure, marketing mix and marketing
allocation(Kotler 1990).
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Marketing strategy is the overall plan for choosing a
target and succeeding within it through
product,pricing,distribution and promotional choices (Bovee
and thill,1992)
Ingram and Laforge, 1995, describe marketing strategy
which consists of selecting a target market and developing
a marketing mix to satisfy the market needs.
In the view (Berkowitz,Kering,Haertley and Rubelius,
1997) a marketing strategy is the means by which a
marketing goal is to be achieved usually characterized by a
specified target market and a marketing program to reach
it.
According to Wyosocki, 2001 marketing is the
identification of customers wants and needs and adding
value to the products and services that satisfy those wants
and need, at a profit.
In the 21stcentury integrated marketing communication
is dominant that means a harmonized adoption of different
promotional tools for convincing customers with the most
effective methods possible(Jozsa et al.2005)The general
trend is that companies spend more money on below on the
line communication(BTL) and sales promotion than the
advertising (above the line communication) .The
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international literature concerning sales promotion is very
rich since a lot of books (Lummins& Mullin 2002,
Blattberg&Neshin 1990, Schuttz et 1998)were published on
how traders and manufacturers can design effective
campaigns. Most of the studies concentrating on fast moving
consumer goods(FMCG) and investigating the planning and
implementing stages on sales promotion techniques aimed at
consumers and initiated by the manufactures or retailers.
Another popular direction of sales promotion literature is
the investigation of customer behaviour namely how
effective and cognitivephases (Laroche et al. 2001&2003).
Statement of the Problem:
This study aims to determine the importance of
marketing strategies of selected fashion boutiques in
Urdaneta City specifically suits to the following
questions:
1.What is the profile of the respondents in terms of:
A. Manager-Respondents Profile
a) Age;
b) Gender;
c) Civil status;
d) Highest educational attainment; and
e) Trainings and Seminars Attended?
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B.Client-Respondents Profile
a) Age;
b) Gender;
c) Civil Status; and
d) Highest Educational Attainment?
C. Business Profile
a).Type of business organization;
b) Initial capital;
c) Number of employees;
d)Years of operation;
e) Location; and
f) Average monthly sales?
2.What are the degree of importance of marketing
strategies practices by fashion boutiques in terms of:
a. Promotions;
b. Product;
c. Place; and
d. Price?
3. What is the significant relationship between managers
and customers in the Marketing Strategies of selected
Fashion Boutique in Urdaneta City?
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Research Hypothesis
There is a significance relationship between the
managers and customers in Marketing Strategies of selected
Fashion Boutiques in Urdaneta City.
Scope and Delimitation
This study will focused on the marketing strategies of
fashion boutiques. It aims to determine the profile of the
manager respondents in terms of age, sex, civil status,
highest educational attainment, numbers of seminars and
trainings attended and the profile of the client
respondents interms of age, sex,civil status, and highest
educational attainment. In terms of business profile it
aims to find out the firms initial capital ,number of
employees, number of years of operation, type of business
organization , average and monthly sales and location .It
also aims to determine the marketing strategies practice by
fashion boutiques in terms of promotion, product, place,
price and this study is undertaken in Urdaneta City.
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Significance of the Study:
The present study will benefit the following groups:
Fashion Boutique Owners,thestudy will serve as their guide
in formulating strategic promotional strategies that will
surely catch the attention of their loyal as well as future
customers.
Future Entrepreneurs, the study could provide right
attainments in promoting their products and services.
Clients, this study will benefits the client once the
identified strategies had been given due attention by the
fashion boutiques.
Future Researchers, this study will provide future
reference and serve as a guide in conducting their study.
For Students, this study will inform them about the
different marketing strategies of fashion boutique in
Urdaneta City it can be their reference fo their school
works in their business subjects.
For marketing Profession, the study will serve as their
guide in order to improve more about the marketing
strategies and effectiveness.
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Definition of terms:
For better understanding of this research the
following terms had been defined orally and operationally.
Sales Promotion refers to the marketing information about
the product and brand.
Sales Promotion Strategies refers to the information and
dissemination, pricing and billing and products and
services provided by the fashion boutiques.
Fashion,refers to a popular style or practiced offered by
the fashion boutiques
Fashion Boutiques, it refers to the stores or boutiques who
offerclothing, footwear, accessories, and make-up.
Manager-respondents,these refer to the owners of the
fashion boutiques who are knowledgeable about the profile
and activities of the business.
Client-respondents, these are the respondents who are
directly related such as parents, teens, professionals etc.
Marketing is the identification of customers wants and
needs to be able to satisfy them.
Marketing Strategy,It is the broad principles by which the
business units expects to achieve its marketing objectives.
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Theoretical framework
This study is based on two theories: 4Ps theory of
marketing mix and Product Life Cycle Theory.
Marketing Mixs 4Ps of Marketing is a theory proposed
by Jerome McCarthy on 1960 which has since been used by
marketers throughout the world. It is use to organize all
aspect of the marketing plan around the habits, desires and
psychology of the target market. The theory of 4Ps stands
for the first P the product, and takes into account its
design, features and competitors. The second P, price, is a
factor that can be adjust to manage demand to determined
profit margin and to drive market share. Promotion is the
third P. it seeks to find which media to engage in order to
make the right people aware of the products benefits and
which slogans, tag lines and logos will resonate with the
target market. Place, the fourth P, determines where and
how potential customers can access the product. This theory
is related to this study because marketing strategy is
based on improving business product quality, pricing,
promotional tools being use and the place of the business.
Product life Cycle Theory is an economic theory that
was developed by Raymond Vernon. This theory asserts that
marketing strategies must evolve along with a product from
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inception through obsolescence. Early in a products life
business owners or managers should tailor their marketing
mix to spark interest and educated potential customers.
During the growth phase, the efforts shift to secure a
wider audience by building brand loyalty, a stable supply
chain and additional distribution channels as defences
against competitors enter the market. As the market for the
products matures, weaker players are driven out and there
is little differentiation among competitors. Marketers
should again shift to attempts to steal market share from
other produces through incentives to distribution channels,
such as cooperation advertising in store promotions and
volume discounts. This theory is related to this study
because in any business theres always a product life cycle
that is needed to monitor for continuous strategic
improvement.
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Paradigm of the Study:
Figure 2
Conception Framework
Conceptual Framework:
The figure 2 shows the marketing strategies of selected
fashion boutiques in Urdaneta City as perceived by managers
and customers on the aspects of promotion,product,place and
price.
Marketing Strategies of
selected fashion
boutiques as perceived
by the managers;
a. Promotion
b. Product
c. Place
d. Price
Marketing Strategies of
selected fashion boutiques
as perceived by the
customers;
a. Promotion
b. Product
c. Place
d. Price
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Review of the Related Literature and Studies
This chapter deals with the related literature and studies
which are related to advertising and promotional techniques
of business firms. It will help readers to better
understand the study because important details about
marketing strategies are discussed in this chapter.
Related Literature:
Foreign:
According to Colby and Alkon (1991)cited by
Jandoneroetal. ,that promotion objectives are to
communicate the information , position products and control
the sales volume. They also pointed out that the use of
free samples; free trial of items and giving freebies could
contribute in the successful promotion of these products in
the establishments.
Proper use of promotional mix could result in the success
of the firms. Product availability involves getting the
attention of customers and increasing the potential of
buying process of the customer (Ehmke and Lusk, 2000)
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It is very important for a marketer or a business
owner to learn the concept of the advertising in order to
capture the interest of an individual with regard to the
companys products or services. The advertising message can
be seen in any place that is use to carry and display the
information about the companys offered services or product
(BrenKent 2008)
Then owner of the firm should produce integrated
marketing communication for an effective promotion. A firm
who produced new products may inform the consumer about
their offerings and discussed its benefits to their
potential customer (Perreault,Jr. William &Mccarthy, 2005)
cited by Jandonero 2014.
Promotions get harder as more companies clamour
to grab the customers increasingly divided attention
.Firms must communicate that they are good, credible, and
reliable in making their product (Kotler and Keller 2010)
cited by Jandonero et al.
Marketing managers use price-oriented promotions
such as coupons, rebates and price discounts to increase
sales and market share, entice trial and encourage brand
switching. Non-price promotions such as sweepstakes
,frequent user clots and premiums add excitement and value
to brand and may encourage brand loyalty(e.gaaker 1991
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;Shea ,1996)In addition , consumers like promotions. They
provide utilitarian benefits such as monetary savings,
added value, increased quality and convenience as well as
hedonic benefits such as entertainment, exploration and
self-expression (Chandon,Laurent and Wansink 1997)
Local:
Sales promotion is a marketing tool that gives price to
increase the product usage as an expansion of markets for
product or to introduce a new product(Mandoza, 2003) as
cited by Jandonero,et al. 2014
According to Republic Act 7394, sales promotion
means techniques intended for broad consumer participation
which contain promises of gain such as product, security
service or winning in contest game, tournament and other
similar competition which involve determination of winner/s
and which utilize mass media or other widespread media of
information.It also means techniques purely intended to
increase the sales, patronage and/or goodwill of a product.
According to Duncan 2002, the traditional
marketing mix consist of 4 Ps (product, price, place,
promotion) calls the four Cs or the new marketing mix.
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It has been established in literature that only
consumers with repeat purchases are profitable (Nagar,
2009) it is not every repeat purchase that is connected to
consumers commitment of a brand. However, consumers
commitment is important for a repeat purchase. Therefore,
business operators need to develop marketing programs that
will not only reinforce customers commitment but also
encourage repeat purchase.
Sales Promotion is marketing and communication
activities that change the price/value of a product or
service perceive by the target, thereby (1. Generating
immediate sales and 2.Altering long term brand value.
(Robinson 1998)
Related Studies:
Foreign:
Although anintegralcomponent of many marketing
communications strategies, relatively has been written all-
out the management of consumer sales promotions.Exploresa
framework that examines the relative and importance of key
factors on manager useof two consumer promotional tools;
coupons and lucky draws.The results show that brand
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managers use trade and consumer sales promotion more
extensively than media advertising but do not consider
sales promotion to be more effective in meeting objectives.
The current sample of Singaporean supermarkets managers
heavily favours price-oriented over non-price promotions.
Concludes that managerial use of sales promotions is
influenced primarily competition and short-term pressures.
The findings provide tentative support for the proposed
framework. (Chun Wah,Lee, April 2002)
In the study of Kola and Akinyele (2010) cited by
Jandonero et al.(2014) stated that advertising is effective
in providing information, creating awareness, and
generating interest of consumer towards the companys
offerings.
Generally it can be ascertained that only a few studies
aimed at the analysis of sales promotion technique in a
higher involvement product category and there is not such a
comprehensive study that would analyse the problem from
thedemand and supply side at the same time .(Keller
Veronika, March 2010)
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Local:
In extending knowledge in promotion mix is
generally considered to be more operative and informative
to the business foundation. It supported and looks forward
on what is the main concept of the provided information for
the business offerings. (Revillos, 2006) as cited by
Jandonero.
The study of Caniedo et al. (2003) had found out
that proper knowledge in promotional tools is of great help
in achieving the marketing objectives which leads to the
increase of costumers, and the loosening of tight
competition. It is also recommended that industry business
should give attention in informing their target market
about products innovating unique and different designs and
promoting products and services.
According to the study of Pascual (2007) as cited
by Robiso et al. (2012), managerial skills and knowledge in
promotion are needed for successful management of small
enterprises.
Meanwhile in the study of Domingo et al. (2012),
as cited by Jandonero, has a significantly related to the
personal profile of the owner which involve that male or
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female, young or matured are looking for something new in
promotion.
According to the study of Belen et al. (2007) as
cited in the study of Capales et al. (2013), most promotion
concerns were included in purchasing contracts to reduce
cost. It aims to minimize the cost of management but at the
same time, to offer customers the complete range of product
requested.
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Chapter II
RESEARCH METHODOLOGY
This chapter presents the methods that the researcher
was used in this study. These include the research design,
research instruments and their validation procedures, data
gathering procedures, and the statistical treatment of
data.
Research Design
The descriptive and quantitative research design was
used in this study since it involves recording,
interpretation, and analysis of conditions that exist. It
describes and deals on the knowledge of the owners in their
marketing strategies of fashion products to the customers
in Urdaneta City.
Subjects of the Study and Sampling Scheme
The subjects of this study were the fashion boutique
owners in Urdaneta City. According to Business Permit
Licensing Office, there were 25 registered fashion boutique
owners in Urdaneta City. Upon getting the list, the
researchers asked the permission to conduct the study
Marketing Strategies of Selected Fashion Boutique in
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UrdanetaCity.The researchers was used the purposive
sampling method which shows that the data gathered were
enough to prove the respondents knowledge in Marketing
Strategies.
Respondent of the study
Respondents Manager Customer/Clients
Selected fashion
boutiques
1.Girl Shoppe
2.Abeka
3.Rosett
4.Fashion Ville
5.Oxygen
6.Ninety nine point nine
7.Ditas
8.Value Best
9.Pay for Less
10.Bizzare
11.Kamiseta
12.Mossimo
13.Bopshop
14.NIKI fashion wear andaccessories
15.Mendrez Boutique
15 70
Statistical Treatment of Data
The gathered data were tallied, analysed, and
interpreted in accordance with the problems posted in the
study. The following were the statistical tools used to
answer the specific problems of the study.
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Problem number 1 described the profile of the manager-
respondents in terms of a. personal profile: a1.sex,
a2.age, a3.civil status, a4.highest educational attainment,
and a.5 number of trainings and seminars attended; b.
personal profile of client respondents: b1.age, b2.sex,
b3.civil status, b4.Highest educational attainment and c.
profile of the business in terms of: c1.initial capital,
c2.number of employees, c3.years in operation, c4.type of
business organization, c5.average monthly sales, and c.6
location.
To answer the problem number 0ne (1) Percentage was
used as a statistical treatment.
Formula: Percentage (%) =f/N x 100
Where: f - stands for the frequency of responses
N Number of respondents
Problem number two (2) described the marketing strategies
practice by fashion boutiques in terms of; a. product, b.
price, c. place,d.promotion
To answer the problem number two (2)Weighted Meanwas used
as a statistical treatment.
Formula: WM = TWF/N
Where: WM weighted mean
TWF total weighted frequency
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N Number of respondents
Mean Values Descriptive Values
4.21-5.0 = Always practiced
3.41-4.20 = Often practiced
2.61-3.40 = Sometimes practiced
1.81-2.60 = Seldom practiced
1.0-1.80 = Never practiced
The number problem three (3) it described the significant
relationshipbetween managers and customers in marketing
strategies of selected fashion boutiques in Urdaneta City.
To answer the problem number 3, Pearson product-moment
coefficient of correlation was used as a statistical
treatment.
Formula:
r=nxy (x)(y)
ny- (y)nx- (x)
Where:
r Coefficient of correlation
X and y scores
N Number of respondents
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LEGEND:
Mean Values Descriptive Equivalent
0.91-1.00 Very high relationship
0.71-0.90 High relationship
0.41-0.70 Moderate relationship
0.21-0.40 Low relationship
0-0.20 Slight relationship