Does a Firm’s Marketing Strategy influence its sales?
Abstract
Research methods refers to a systematic and organized process that attempts to investigate a
particular problem encountered or experienced in a work setting that requires a solution. It
consists of a series of steps that are formulated, designed and executed with the sole goal of
finding the solution to the issues raised by the management. Identifying the problem in an
organization is the first step in research methods. Information is gathered, analyzed and factors
connected with the problem determined. The problem is solved after taking the necessary
measures to correct the problem.
Research on a firm’s marketing strategy and its influence on sales will involve the processes of
enquiry, definition, investigation, examination and finally experimentation of the strategies
currently being used by the company and the performance of the sales department. The processes
are systematic, diligent, critical, objective, and logical. The research question is on the influence
of the marketing strategy on the sales of the company. Are the marketing strategies yielding any
positive results? What are these strategies and what are their relationship with the sales and the
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turnover? To identify the problematic issues on strategy formulation and implementation, gather
the relevant data, analyze them and reach and draw a conclusion from the information obtained
to decide and make the decision needed to select the best strategy decision.
The research is very important because the result would finally be a discovery that will assist
the manager to deal with the challenges facing him. The manager will be able to make a good
decision on which strategy to adopt and the justification behind the decision taken. Gathering the
relevant information, critically analyzing the data in ways that facilitate decision making and
implementation of the right decisions and courses of action all help in understanding the
problems facing the sales department (Sekaram and Bougle, 2009)
Aims
Marketing strategy research involves the evaluation of several marketing strategies and their
influence on sales. The aim of a marketing strategy is to create a demand for the product among
the potential clients who will eventually be attracted by the product or service. The marketer
believes that the strong demand created will pull item, product or service by compelling the
marketing intermediaries to accommodate it through the marketing channels.
Objectives
a) The objective of the marketing research strategy is to provide the required information that
guides and facilitates the managers to make well informed decisions that solves the problem
effectively. The source of the information provided could be the results of a careful and well
researched data that have been analyzed and adequately cross checked with other researchers in
the same field or from other sources such as company archives or other reliable sources. Data
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can be summarily quantified such as the data collected through structured questions or the data
can be qualitative i.e. data gathered through questions answered in specific interviews or from
responses obtained from open questions such as those ones in a questionnaire or from direct
observation. b) The research is for a specific and definite purpose, to formulate and apply an
effective business strategy that is capable of producing positive results and growth. c) Another
objective of the marketing research is to provide a suitable and viable alternative for an effective
and final decision.
Research outline
The following marketing strategies will be evaluated vis-à-vis their relationship with sales.
Promotional strategy
Is one of the functions that involve informing, persuading or influencing the decisions of the
customer. Its major objective is to develop and promote a product’s primary demand. Different
companies have varied promotional strategies. Some use these strategies to expand in their
different markets while others use them to reach selected and particular markets. Most
promotional strategies goals are to provide the basic necessary information about the product and
to differentiate in order to increase its sales, its value and to stabilize its overall market. (Bradley,
2010)
Pushing Strategy
The pushing strategy involves other forms of increasing sales other than advertising,
personal selling or public relations through one time or occasional selling. Initially sales
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promotion was a supplement to a company’s sales efforts or advertising process, but it has
become part of the promotional mix for most firms. The pushing strategy is an approach that’s
sales oriented. The product or service is marketed by the wholesalers and the retailers in the
marketing process or channels. These particular products like the carbonated drinks are often
marketed by the sales personnel who carry them during their promotional activities and their
benefits explained to the targeted audience. They offer special discounts and promotional
materials like T-shirts, hand bags, caps and other attractive gifts to increase their sales. Examples
are the branded Pepsi T-shirts and their caps which are usually trendy and well designed to
attract potential consumers. www.pepsistuff.com
Methodology
The collection of data will target top marketing executives of at least fifty companies that are
listed on the New York Stock Exchange or the London Stock exchange. Each one will be
contacted through the phone to establish their willingness to take part in the sturdy and those
who respond positively, a questionnaire will be sent out to them. Each questionnaire will contain
several questions that will require information on the strategies currently being used by the
companies and the changes that have been made in the last five years together with the relevant
sale summaries for the respective financial periods. (Booms and Bitner, 1981) The application of
probability will be limited hence the approach of non probability will be applied when analyzing
the values.
The questionnaire is easy and convenient to use as it can be sent digitally by email as I preferred
or manually by post which will take a considerable amount of time. To check the relationship
between the strategies adopted and the sales volume, correlation can be applied.
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The strategies to be evaluated are documented on business journals and marketing books. The
authors of the books on marketing strategies are Booms & Bitner (1981) while the marketing
research methods I will make a lot of references on the work of Sekaram & Bougle (2009). The
other information that I will use will be obtained from the questionnaires that have been
completed by the respondents.
Limitations
The major limitation will entail the confirmation of the data having in mind that the information
gathered is a self report data which may include some bias on the part of the respondent and it
may also involve a deliberate attempt to mislead the general consensus on some strategies in an
effort to hoodwink their competitors on the effectiveness of some strategies. This bias can be
eliminated by comparing several strategies that have similar effect on sales with their respective
sales from different companies in order to weed out any misleading information on their success
and effectiveness.
Ethical issues
The questionnaires will be developed in accordance with the TPB methods that are
recommended for such exercises. (Ajzen, 1991) For example the phone calls to the respective
heads of marketing sections are to be made in respect to their positions in the company and in
their official capacity as the marketing executives to avoid unethical company issues that may
lead to legal redress.
Sample Size
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The collection of data will target top marketing executives of at least fifty companies that are
listed on the New York Stock Exchange or the London Stock exchange. (N = 50) Each one will
be contacted through the phone to establish their willingness to take part in the sturdy and those
who respond positively, a questionnaire will be sent out to them. Each questionnaire will contain
several questions that will require information on the strategies currently being used by the
companies and the changes that have been made in the last five years together with the relevant
sale summaries for the respective financial periods. The total questions will not exceed thirty
questions. (Booms and Bitner, 1981)
Sampling technique
The sampling technique to be applied will be random sampling technique. The participants will
be selected randomly from the top companies in the New York’s Stock exchange and the London
stock exchange. Each will contribute 25 companies. This is a non probability evaluation.
Data Analysis
This will involve the use of excel spread sheets or other approved software’s that can be utilized
to analyze the data. These are like the SPSS data description and analysis soft ware any other
applicable software in the market. Bar charts and line graphs will also be used to illustrate certain
areas of growth and productivity in the sales volume.
To evaluate the correlation research findings a test of statistical significance should be carried
out. The alpha (0.05) can be used to test the results. However, correlation is the best statistical
inference for the data.
Conclusion
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Finally the final decision to develop a products marketing strategy takes place after the research
has taken place and the product can be successfully positioned and the potential customers have
been identified together with their needs and the requirements of the target group. A distinctive,
creative and well branded advertising generates impressive results that ensure successfully
marketing and promotional strategies. But to make the product more appealing to the customers
or the target group then the adverts designers have to be constantly referring to the customers to
tailor according the strategies according to their needs and tastes.
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Reference
Ajzen, I. (1991). The theory of planned behavior, Organizational Behavior and Human
Decision Processes, 50(2), 179-211
Bradley, N. (2010) Marketing Research. Tools and Techniques. Oxford University Press,
Oxford,
Booms, B.H. and Bitner, M.J. (1981) ‘Marketing Strategies and Organizational
Structures for Service Firms’ in J.H. Donnelly and W.R. George (Eds) Marketing of
Services, AMA Proceedings Series, Chicago, p.48
Sekaram, U., Bougle, R. (2009) Research Methods for Business; A Skill Building Approach, 5 th
Edition. West Sussex, UK. John Wiley & sons.
