relationship of advertising medium and sales rate of a car company

7/25/2019 Relationship of Advertising Medium and Sales Rate of a Car Company

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Introduction of the Study

Advertising medium is the best way to communicate to the customers. Advertising styles

helps informs the customers about the brands available in the market and the variety of cars

being sold. It plays a very important role in todays age of competition to increase the sales rate

of a car company, advertising is one thing which has become a necessity for everybody in

todays day to day life be it the producer, the traders or the customer. Basically, the medium of

advertising has a very important role in the monthly sales rate report of a car company; this is the

only bridge that marketing strategy, way of introducing the brand and model of a car can

communicate with the customers in an artistic way of communicating with the customers

through this advertising medium.

Information dissemination through the advertising medium such television commercial,

bulletin board, newspaper ads, social networking ads, and poster flyers constitutes an important

and critical factor to the monthly sales report of a car company. More often than not, the

researchers perceives that the advertisement medium is to be a one way form of communication,

circulating information and form of advertising strategy through television commercial, bulletin

board, newspaper ads, social networking ads, and poster flyers but advertising medium reuires

systematic collection, organi!ation, and storage of information relevant to needs of the market or

customers.

"pon acknowledging this kind of problem, the researchers decided to conduct on how the

#ar #ompany could communicate with the customers and what are the best advertisement

medium would constitute a high sales rate. $he accomplishment of this study will also uncover

the true relationship between the advertisement medium and to the reported sales rate per month.


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$he result of the gathered data will prove whether the hypothesis of the study is feasible

or not. #ountermeasure to improve the study routines of an individual will be done if the

evaluated data state that five stated advertisement medium is not a factors in the reported sales

rate per month.

Background of the Study

Metro % Manila is the total urban area the least composed of different cities and the

surrounding urban fringe. $he proper city of Manila is only one of the big cities of this urban

agglomeration. It is a highly industriali!e and developing place that is why a lot of car company

birthed within the area.

$he &tudy is applicable to the car company'branches. $he purpose why we have come up

with this study is because of one very main reason; to know if there is a relationship between the

kind of advertising medium being used and the reported sales rate per month.

The Problem

$o identify the correlation between the advertisement medium and the sales rate of car

companies is the main concern of this study; it focuses on the advertising mediums effectiveness

in advertising various cars in different medium and how it affects the sales of the company. In

this light, the researchers came up with a problem( Is the advertising medium affect the sales rate

of a company?


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Significance of the Study

$he significance of this study is to increase the level of social awareness of the

companies in advertising car products, promotions, and offers to the masses. )ith these,

marketing and sales managers can reach out effectively to the target people in advertising car

products. $he advertising medium such as television commercial, newspaper ads, social

networking ads, posters and flyers, and billboards. &uch wide selection of advertising medium, it

can be easier to reach the target potential customers. $his research study would benefit the car

companies, especially the marketing and or sales department in identifying the most useful and

effective advertising tool, on how it affects their sales rate, and on how they will improve their

marketing strategies and enhance the way they market their products.

Scope of the study

$he purpose of this study is determine if there is a relationship between advertising

medium and sales rate of various car brands company within Metro Manila. )ith the total of one

hundred *+- branches of various car brands in Metro Manila, the researcher chooses only fifty

percent */- of the total number of branches of every car brand within Metro Manila.

Marketing or &ales &upervisors will be covered as part of the respondents and they will be able

to answer the survey uestionnaire prepared by the researcher.

$he study covered the basic information of the respondents such as the name which is

optional, the work position, company name and the branch address. $he first part of the survey is

a list of advertising medium wherein the respondent will select the advertisement medium that

theyve used in advertising their product. In addition, the respondent will choose how freuent


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theyve used the indicated advertisement medium such as television commercials, newspaper

ads, social networking ads, posters or flyers and billboards.

$he second part of the uestionnaire is the &ales 0ate where the respondent needs to

indicate the sales rate of actual delivered cars and actual car sold from the following months

beginning August 1+2 up to 3uly 1+ which totals of twelve *+1- months. $he study is limited

only on discussions pertaining to the advertising medium and sales rate of various car branches

within Metro Manila.

$his study will not only help the researcher but it also assists #ar companies to improve

how promote their products. 4urthermore, there are only two ma5or variables used in the study,

the advertising medium which is the independent variable *I6- and the sales rate is the dependent

variable *76-.


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Independent Variable

$he research studys independent variable presented is 8Advertising Medium9, it is

defined in Business 7ictionary *1+- as any single advertising vehicle comprising advertising

media.

#ar companies prefer promoting their ads by means of television commercial, newspaper

ads, social networking ads, poster and flyers and billboards. :owadays, television advertisement

is most trends used nowadays. In that way people can easily know the information after it is flash

on television.

Television Commercial% A television advertisement or variously call 8television commercial9

is a span of television programming produced and paid for by an organi!ation, which conveys a

message, typically to market a product or service. Advertising revenue provides a significant

portion of the funding for most privately owned television network *)ikipedia the 4ree

ncyclopedia, 1+-.

Newspaper ds% )here the advertisement appears alongside regular editorial content. 7isplay

ads are generally used by businesses and corporations towards promotion of their goods and

services and generally for larger budget clients *)ikipedia the 4ree ncyclopedia, 1+-.


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demographic information and target their ads appropriately *)ikipedia the 4ree ncyclopedia,

1+-.

Poster and !lyers% ?oster is any piece of printed paper designed to be attached to a wall or

vertical surface *@osling, +-. 4lyer is a small handbill advertising an event or product.

Billboards= is a large outdoor advertisingstructure, typically found in high=traffic areas such as

alongside busy roads. Billboards present large advertisements to passing pedestrians and drivers.

$ypically showing large, ostensibly witty slogans,and distinctive visuals, billboards are highly

visible in the top designated market areas*)ikipedia the 4ree ncyclopedia, 1+-.

"ependent Variable

$he dependent variable of the research study is 8sales rate9 According to )ikipedia the

4ree ncyclopedia *1+-, sales rate, other terms by hit rate refers to a metric or measure of

business performance traditionally associated with sales. &ales can be measured either as the sum

of dollars pursued or the number of deals pursued. Accurate calculation reuires clear definition

of when a sales opportunity is firm enough to be included in the metric, as well as firm

disposition of the opportunity.

$he hit rate may be measured for the whole sales force or by sales region, sales person or

product group. It may be used to benchmark the different sales periods and to benchmarkthe

effectiveness of the own sales force with other companies of the same sector. 7ue to the high

costs involved with making proposals the hit rate is a very useful tool especially for companies

inindustrial marketing.
https://en.wikipedia.org/wiki/Out-of-home_advertisinghttps://en.wikipedia.org/wiki/Advertisinghttps://en.wikipedia.org/wiki/Sloganshttps://en.wikipedia.org/wiki/Designated_market_areahttps://en.wikipedia.org/wiki/Benchmarkinghttps://en.wikipedia.org/wiki/Industrial_marketinghttps://en.wikipedia.org/wiki/Out-of-home_advertisinghttps://en.wikipedia.org/wiki/Advertisinghttps://en.wikipedia.org/wiki/Sloganshttps://en.wikipedia.org/wiki/Designated_market_areahttps://en.wikipedia.org/wiki/Benchmarkinghttps://en.wikipedia.org/wiki/Industrial_marketing


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The #elationship between dvertising $edium and Sale rate%

According to #aves, et al *+-, there are two demands in the market for advertising,

and as a result two prices are established. In addition to consumer demands for advertising and

the price charged to consumer, there is the demand for advertising by individual firms and the

prices paid by them to the information media for carrying their message to consumer.

Advertising to the firm represents a productive input where the various media are competing

suppliers. $he firms demands for these services are derived from the profit calculations of the

firms and, like other inputs are define by marginal revenue of advertising messages. uilibrium,

the marginal cost of advertising.

Bootwala mentioned that advertising has no direct impact on the sales *1C-. $his is

because advertising together with many other factors affects the sales of the advertised product.

&ale are affected by factors such as eDpansion of the sales force, improved distribution, lessened

efforts on the part of the competitors, general improvements in the business conditions and so

on. "sually mere increase in sales is not a measure of the effectiveness of advertising.

Advertising may be a ma5or factor, a contributing factor or had a little effect on the sales of the

product.

According to M. $re5an and 0. $re5an *1-, advertising and sales promotions both are

important tools of promotion miD of a business organi!ation. ffectiveness of ad=campaign can

be enhanced through sales promotions effort. If sales promotion and advertising program are


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well coordinated, they can have significant effect on sales. Announcement of sales promotions

schemes. In advertisement=copy help to make it more eye=catching and helps to break media=

clutter. ven if there is many ad=copies in the media, the ad=copy giving information some sales=

promotions scheme, vi! free gift, off season discount etc.

A recent study of Erishnamurthi, :arayan and 0a5 *+F- found that if the advertising

weight is doubled, effects on sales of a dominant brand will be observed almost immediately

with in purchased cycle. $hese results seem to indicate that the advertising'sales response

functions concave. Gowever, these results may generali!e only to situations in which there was

prior advertising and the advertised brand is the dominant brand.

According to @reunes et.al *1- broadly the role of advertising eDpenses in an

economy can be classified under two heads. According to one school of thought, advertising

increases profits and reduces consumer welfare by creating spurious product differentiation and

barriers to entry. )hile the other school of thought focuses on the informative character of

advertising, which makes markets more competitive and reduces profits by informing the

customers about prices and uality.

According to &undarsan *1C- advertising is a prominent feature of modern business

operations.


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and conseuently increasing sales revenue and profits of the organi!ation and causing impact on

the business cycle has been emphasi!ed at various points of time by different studies.

$he independent variable of this research study is advertising medium such as television

commercial, newspaper advertisement, posters or flyers and billboards. )hile the dependent

variable is &ales 0ate or the total cars sold per month vis=H=vis. $he respondent must participate

to this research to know what is the most effective advertisement medium to be use on selling

cars and which oh the siD independent variable are they commonly used.

#&SC' P#"I($

Independent Variable "ependent Variable

#esearch 'ypothesis

$here is a relationship between the advertising medium and sales rate.

S)&S #T&

I% dvertising $edium

A. $elevision #ommercialB. :ewspaper Advertisement

#. &ocial :etworking

Advertisement

7. ?osters and 4lyersE. Billboards


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*PTI*N) "&!INITI*N

Independent Variable

Advertising medium is the act or practicing public attention to ones product, service,

needs, etc., such as the following(

Television Commercial= It is about relaying a specific social, political or sales pitch in a

limited amount of time, broadly ranging in between few seconds to several minutes. It is

produced and paid for by the organi!ations called advertiser or marketer and streamed from a

television network. $he purpose is to generate demand for a product, service, idea or cause.

News Paper dvertisement = the advertisement appears alongside regular editorial content.

7isplay ads are generally used by businesses and corporations towards promotion of their goods and

services and are generally for larger budget clients.

Social Networking dvertisement= is a group of terms that are used to describe forms

of online advertising that focus on social networking services. demographic information

and target their ads appropriately.

Posters + A large, usually printed placard, bill, or announcement, often illustrated, that is

posted to advertise or publici!e something.

!lyers= is a form of paper advertisement intended for wide distribution and typically

posted or distributed in a public place or through the mail.

Billboards = is a large outdoor advertising structure, typically found in high=traffic areas

such as alongside busy roads. It also present large advertisements to passing pedestrians and


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drivers. $ypically showing large, ostensibly witty slogans, and distinctive visuals, billboards are

highly visible in the top designated market areas.

"ependent Variable

Sales #ate= #alculated as previous inventory plus new merchandise minus the amount

of merchandise currently on hand. $he result is eDpressed for a specified period. $he rate of sale

can be calculated daily, monthly, uarterly or annually.Identity the amount of product sold for

each period. $he sales rate can be calculated on a monthly basis. 0eview the sales rate formula.

$o get the sales rate, subtract the previous month>s sales from the current month>s sales. 7ivide

by the previous month>s sales, and then multiply the result by +.


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#esearch $ethod

$he research method that they used in this study is descriptive research; it is used to

describe characteristics of apopulationor phenomenon being studied. $he researchers used

descriptive research because they want to find out particular population of car brand branches

within Metro Manila.

)ocale of the study

&ource( @oogle Map

!igure ,%-%Metro Manila
https://en.wikipedia.org/wiki/Statistical_populationhttps://en.wikipedia.org/wiki/Statistical_population


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&ource( @oogle Image

!igure ,%..Metro Manila

$he research study was taken within Metro Manila. Metropolitan Manila commonly

known as Metro Manila, the:ational #apital 0egion*:#0- of the ?hilippines, is the seat of

governmentand the most populousregionof the country which is composed ofManila, the

capital city of the country, ue!on #ity, the country>s most populous city, theMunicipality of

?ateros, and the cities of #aloocan, Jas

?iKas, Makati, Malabon, Mandaluyong,Marikina,Muntinlupa, :avotas, ?araKaue,

?asay, ?asig, &an 3uan, $aguig, and6alen!uela.

Population and Sample

Metropolitan Manila commonly known as Metro Manila, the :ational #apital 0egion

*:#0- of the ?hilippines, is the seat of government and the most populous region of the country.
https://en.wikipedia.org/wiki/National_Capital_Regionhttps://en.wikipedia.org/wiki/National_Capital_Regionhttps://en.wikipedia.org/wiki/Philippineshttps://en.wikipedia.org/wiki/Seat_of_governmenthttps://en.wikipedia.org/wiki/Seat_of_governmenthttps://en.wikipedia.org/wiki/Seat_of_governmenthttps://en.wikipedia.org/wiki/Regions_of_the_Philippineshttps://en.wikipedia.org/wiki/Regions_of_the_Philippineshttps://en.wikipedia.org/wiki/Regions_of_the_Philippineshttps://en.wikipedia.org/wiki/Manilahttps://en.wikipedia.org/wiki/Manilahttps://en.wikipedia.org/wiki/Quezon_Cityhttps://en.wikipedia.org/wiki/Pateros,_Metro_Manilahttps://en.wikipedia.org/wiki/Pateros,_Metro_Manilahttps://en.wikipedia.org/wiki/Pateros,_Metro_Manilahttps://en.wikipedia.org/wiki/Caloocanhttps://en.wikipedia.org/wiki/Las_Pi%C3%B1ashttps://en.wikipedia.org/wiki/Las_Pi%C3%B1ashttps://en.wikipedia.org/wiki/Makatihttps://en.wikipedia.org/wiki/Malabonhttps://en.wikipedia.org/wiki/Mandaluyonghttps://en.wikipedia.org/wiki/Mandaluyonghttps://en.wikipedia.org/wiki/Marikinahttps://en.wikipedia.org/wiki/Marikinahttps://en.wikipedia.org/wiki/Muntinlupahttps://en.wikipedia.org/wiki/Muntinlupahttps://en.wikipedia.org/wiki/Navotashttps://en.wikipedia.org/wiki/Navotashttps://en.wikipedia.org/wiki/Para%C3%B1aquehttps://en.wikipedia.org/wiki/Pasayhttps://en.wikipedia.org/wiki/Pasighttps://en.wikipedia.org/wiki/San_Juan,_Metro_Manilahttps://en.wikipedia.org/wiki/Taguighttps://en.wikipedia.org/wiki/Valenzuela,_Philippineshttps://en.wikipedia.org/wiki/Valenzuela,_Philippineshttps://en.wikipedia.org/wiki/National_Capital_Regionhttps://en.wikipedia.org/wiki/Philippineshttps://en.wikipedia.org/wiki/Seat_of_governmenthttps://en.wikipedia.org/wiki/Seat_of_governmenthttps://en.wikipedia.org/wiki/Regions_of_the_Philippineshttps://en.wikipedia.org/wiki/Manilahttps://en.wikipedia.org/wiki/Quezon_Cityhttps://en.wikipedia.org/wiki/Pateros,_Metro_Manilahttps://en.wikipedia.org/wiki/Pateros,_Metro_Manilahttps://en.wikipedia.org/wiki/Caloocanhttps://en.wikipedia.org/wiki/Las_Pi%C3%B1ashttps://en.wikipedia.org/wiki/Las_Pi%C3%B1ashttps://en.wikipedia.org/wiki/Makatihttps://en.wikipedia.org/wiki/Malabonhttps://en.wikipedia.org/wiki/Mandaluyonghttps://en.wikipedia.org/wiki/Marikinahttps://en.wikipedia.org/wiki/Muntinlupahttps://en.wikipedia.org/wiki/Navotashttps://en.wikipedia.org/wiki/Para%C3%B1aquehttps://en.wikipedia.org/wiki/Pasayhttps://en.wikipedia.org/wiki/Pasighttps://en.wikipedia.org/wiki/San_Juan,_Metro_Manilahttps://en.wikipedia.org/wiki/Taguighttps://en.wikipedia.org/wiki/Valenzuela,_Philippines


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$he prepared uestionnaire was distributed to a random and we get the / of the total number

of car branches in Metro Manila as our respondent. $he respondent should be the Marketing,

&ales &upervisor.

&ource( Google Image

!igure ,%,.Metro Manila


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Table ,%-% Car Branches in Metro Manila

Car Brands Population of BranchChevrolet

!ord +L

'onda +1

Isu/u C

$itsubishi $otors Company 11

Su/uki +1

Toyota +F

Nissan $otor Corporation

Total -00

&ource(Google

$he car branches along Metro Manila has a total number of + branches. branches from

#hevrolet, +L branches from 4ord, +1 branches from Gonda, C branches fromIsu!u, 11 branches

from Mitsubishi Motors #ompany, +1 branches from &u!uki, +F branches from $oyota and

branches from :issan Motor #orporation.

Table ,%..Population of Car Branches

Car Brands Population of Branch Sample1#espondents 203

Chevrolet 2

!ord +L C

'onda +1 F

Isu/u C 2

$itsubishi $otors Company 11 ++

Su/uki +1 F

Toyota +F

Nissan $otor Corporation 2

Total +


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&ource( @oogle

$he foregoing table shows that the total respondent is and that is the / of the total

car branches in Metro Manila. 2 respondents from #hevrolet, C respondents from 4ord, F

respondents from Gonda, 2 respondents from Isu!u, ++ respondents from Mitsubishi Motors

#ompany, F respondents from &u!uki, respondents from $oyota and 2 respondents from :issan

Motor #orporation.

#esearch Instrumentation

$he researchers used a uestionnaire as the principal instrument to gather data. $he

Marketing or &ales &upervisor of the car branch must answer the survey form.


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research adviser gives the corrections and suggestions. 0evision was made on uestionnaire and

validated by the research adviser.

"ata (athering Procedure

A. $he researcher reuest for approval from the 6ice ?resident for Academic Affairs, 7r.

Melito A. Baccay to conduct a study with the various car retailers within Metro

Manila.B. "pon written and verbal approval of the reuest, the researcher asked for permission

and appointment to perform a survey from the said retailers.#. $he researchers proceeded on the agreed schedule and conduct a survey from the

&ales or Marketing Manager.7. $he survey was created using sustainable uestions modified from related research

and individual uestions formed by the researcher.

. $he survey was compromised of series of uestions, which were related to the

advertisement mediums being used and its monthly sales rate.

4. In the uestionnaire, ordinal scale was used to determine if the respondent agreed or

disagreed in a statement.

@. After gathering all the data from the respondents, it was encoded and categori!ed

using Microsoft Dcel software.

"ata Processing and Statistical Treatment of "ata

4irst, the researcher assigned the corresponding codes in response to the answer in the

uestionnaire form. $he assigned codes were meant to be in integer form for statistical purpose.

&econd, the worksheet was formulated and it consists of 2 columns, each column represents an


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euivalent variable in the uestionnaire such as the advertisement medium, car retailers and its

sales rate. $he subseuent rows were allocated for the answers per uestionnaire form. $hen, for

verification purposes and ease of encoding process, formulated worksheet was printed for use as

the format for preliminary tallying of data. In tallying, it is rest assured that the coding scheme

was followed. After tallying, the data were keyed into a computeri!ed data entry system using

Microsoft


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r=N(XY)( X) (Y)

N(X2 ) (X)2N(Y2 ) (Y)2

)here(

N number of samples

4 first variable

5 second variable

$he result of the computed relationship between the two respondents will be interpreted

according to ?earsons scale that varies from N+ to =+. It will base from the following values.

0 below .1 *eDtremely low relationship-

0 .1 to L *low relationship-

0 .2 to *moderate relationship-

0 .F to C *high relationship-

0 . to +. *very high relationship-


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BIB)I*(#P'5

Adglit!.com *1+-. &lices from Advertising O 7igital )orld0etrieved from( http(''www.adglit!.com'1+'++'television=advertising=meaning'

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Bootwala et.al *1C- Advertising and &ales ?romotion

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Business 7ictionary *1+-. Advertising Medium0etrieved from( http(''www.businessdictionary.com'definition'advertising medium.html


#aves et. al *+- #


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Erishnamurthi, :arayan, and &.? 0a5 *+F-. %ournal of Marketing 'esearch,1L*:ovember-, LLC=2

Meriam )ebster An encyclopedia Britannica #ompany *1+-. 4lyer0etrieved from( http(''www.merriam=webster.com'dictionary'flyer


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&mall Business ncyclopedia *1+-. :ewspaper Advertising

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)ikipedia the 4ree ncyclopedia *1+-. &ocial :etwork Ads
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relationship of advertising medium and sales rate of a car company

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