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INTRODUCTION OF MARKETING

Marketing is a societal process that is needed to discern consumers’ want focusing on

a product/service to those want and to mould the consumers towards the
product/services marketing is fundamental to any business growth. The marketing
terms (marketers) have the task to create the consumer awareness of the
product/services their consumer demographics the business would not be able to
endure longevity.

Marketing tends to be seen as a creative industry, which includes advertising

distribution and selling. It is also concerned with anticipating the customer future
needs and wants often through market research.

Its specialist areas include:

Advertising and Branding

Direct Marketing

International Marketing

Public Relation

Communication

Strategic Management

Market Research

Event Organization

Database Management

Search Engine Marketing

Digital Marketing

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A market- focused or customer –focused, organization first determines what its

potential customer desire, and then builds the product or services. Marketing theory
and practice is justified in the belief that costumer use a product or service because
they have a need or because it provides a perceived benefit.

Two major factors of marketing are the recruitment of new customers (acquisition)
and the retention and expansion of relationships with existing costumers (base
management). Once a marketer has converted the prospective buyer, management
shifts the marketer to building a relationship, nurturing the links, the enhancing the
benefits that sold the buyer in the first place, and improving the product/services
continuously to protect the business form competitive encroachments.

For a marketing plan to be successful, the mix of the four ‘Ps’ must reflect the wants
and desire of the consumers in the target market. Trying to convince a market
segment to buy something they don’t want is extremely expensive and seldom
determines what consumers want and what they are willing to pay for it. Marketer’s
hope that has process will give them a sustainable competitive advantage. Marketing
management is the practical application of this process. The offer is also an important
addition to the 4P’s theory.

Within most organization the activities encroachment by the marketing function are
led by a Vice President or Director of marketing. A growing number of organizations,
especially large US companies, have a Chief Marketing Officer position, reporting to
the Chief Executive Officer.

The American Marketing Association (AMA) states “Marketing” is the process of

planning and executing the conception, pricing, promotion and distribution of ideas,
goods and services to create exchanges that satisfy individual and organizational
objectives.

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PROCESS OF MARKETING

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FEATURES OF MAREKTING

Needs and Wants:

All the marketing activities are carried out to fulfill this objective. A need can be
defined as sum total of all those items which are basic to human beings For example,
food, shelter, clothing, water etc. Culturally defined objects that are potential satisfiers
of needs are known as Wants. For example, basic need for water can take many forms
such as cold drink or lemon water or tea or coffee etc. These forms are known as
wants.

An organisation must identify the various needs of their customers and should
develop products and services that satisfy the same.

Creating a Market Offering:

Market offering means giving an offer for goods and services by describing its
features like shape, size, quality, uses etc. Suppose a computer is offered in a market;
its various features like different sizes and prices at which it is available, technologies
used, location of the shops at which it is available etc. are described. A good ‘market
offer’ is one which aims at complete consumers’ satisfaction.

3.  Customer Value:

The customer is willing to purchase the product or services only when its value is
satisfying their needs, in relation to its cost i.e. the product or service is providing
them maximum benefit. Therefore, the marketer’s job is to add some value to its
product so that it is preferred by the customers over the competitors’ product.

4. Exchange Mechanism

The process of marketing consists of exchange of goods and services for money or
money’s worth. This mechanism helps both buyers and sellers to get what they desire.
Exchange is defined as an essence of marketing. Products can be exchanged through
various middlemen at different levels of distribution.

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IMPORTANCE OF MARKETING

Marketing Creates Employment:

Marketing is complex mechanism involving many people in one form or the other.
The major marketing functions are buying, selling, financing, transport, warehousing,
risk bearing and standardisation, etc. In each such function different activities are
performed by a large number of individuals and bodies.

Marketing as a Source of Income and Revenue:

The performance of marketing function is all important, because it is the only way
through which the concern could generate revenue or income and bring in profits.
Buskirk has pointed out that, “Any activity connected with obtaining income is a
marketing action. It is all too easy for the accountant, engineer, etc., to operate under
the broad assumption that the Company will realise many dollars in total sales
volume.

(5) Marketing Acts as a Basis for Making Decisions:

A businessman is confronted with many problems in the form of what, how, when,
how much and for whom to produce? In the past problems was less on account of
local markets. There was a direct link between producer and consumer.

In modern times marketing has become a very complex and tedious task. Marketing
has emerged as new specialised activity along with production.

Marketing Acts as a Source of New Ideas:

The concept of marketing is a dynamic concept. It has changed altogether with the
passage of time. Such changes have far reaching effects on production and
distribution. With the rapid change in tastes and preference of people, marketing has
to come up with the same.

Marketing Is Helpful In Development Of An Economy:

Adam Smith has remarked that “nothing happens in our country until somebody sells
something”. Marketing is the kingpin that sets the economy revolving. The marketing
organisation, more scientifically organised, makes the economy strong and stable, the
lesser the stress on the marketing function, the weaker will be the economy.

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SCOPE OF MARKETING

Setting Marketing Goals:

The prime task of marketing manager is to set marketing goals and objectives. Clearly
and precisely defined objective can help marketing manager to direct marketing
efforts effectively. The goals and objective (whether strategic and operating, or short-
term and long-term) must be suitably communicated with the employees concern. As
far as possible, objectives should be expressed in the quantifiable terms.

Selecting Target Market:

Segmenting the total market and selecting the target market is a fundamental task of
marketing management. Modern marketing practice is based on the target market, and
not on the total market. Marketing manager cannot satisfy the needs and wants of
entire market. He must concentrate his efforts only on well-defined specific groups of
customers, known as the target market. All the marketing functions are directed to
cater needs and wants of the target market only. Based on company’s overall capacity,
the target market should be selected.

Formulating Suitable Marketing Organisation:

To implement marketing plan, a suitable organisation structure is essential. On the
basis of analysis of type of products, type of market, geographical concentration of
market, and many other relevant factors, appropriate organisation must be designed.
Various alternative structures are available, such as product organisation, geographic
organisation, functional organisation, matrix organisation, etc. Based upon
requirements, the appropriate structure should be prepared and modified as per needs.

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FUNCTIONS OF MARKETING

Research

One of the major functions of marketing is to conduct your research on your target
audience. Pay attention to buying trends and look for products that fulfill a current
need. For instance, apparel retailers need to stay on top of the upcoming season’s
trends to know what products to focus on in marketing campaigns. Market research
also requires checking out your other competitors. Find out what products they are
featuring and how successful their marketing campaigns have been in the past.

Packaging

Along with researching what the consumer wants, marketing involves packaging the
product or service in a way that appeals to your buyer. Logos and packaging materials
must all be designed with the customer in mind. Conduct market research to find the
prototypes that receive the most positive feedback from test markets. Another function
of marketing involves pricing your product at a rate where your business makes a
profit.

Transportation

An additional function of marketing is the transportation of goods. Once you have the
goods, you must have the ability to distribute them to consumers. Figure out shipping
and storage methods for inventory items. How you deliver your products has a direct
effect on marketing campaigns. For instance, you may advertise same-day shipping
on all in-stock orders.

Risk Assessment and Quality Control

Risk assessment and quality control will be another function of marketing for your
business. Risk assessment entails looking at the variables that could affect the sale of
your product or service. Quality control means looking at how your product stands up
against the competition. It also involves meeting standards for product grading in
applicable markets.

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MARKETING RESEARCH FLOW CHART & PROCESS

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COMPANY PROFILE

DMart is a one-stop supermarket chain that aims to offer customers a wide range of
basic home and personal products under one roof. Each DMart store stocks home
utility products - including food, toiletries, beauty products, garments, kitchenware,
bed and bath linen, home appliances and more - available at competitive prices that
our customers appreciate. Our core objective is to offer customers good products at
great value.

DMart was started by Mr. Radhakishan Damani and his family to address the growing
needs of the Indian family. From the launch of its first store in Powai in 2002, DMart
today has a well-established presence in 163 locations across Maharashtra, Gujarat,
Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, NCR, Tamil
Nadu, Punjab and Rajasthan. With our mission to be the lowest priced retailer in the
regions we operate, our business continues to grow with new locations planned in
more cities.

The supermarket chain of DMart stores is owned and operated by Avenue Supermarts
Ltd. (ASL). The company has its headquarters in Mumbai.

* The brands D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour,
etc are brands owned by ASL

MISSION

At DMart, we research, identify and make available new products and categories that suit
the everyday needs of the Indian family. Our mission is to provide the best value possible
for our customers, so that every rupee they spend on shopping with us gives them more
value for money than they would get anywhere else.

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OVERVIEW

DMart is a one-stop supermarket chain that aims to offer customers a wide

range of basic home and personal products under one roof. Each DMart store stocks
home utility products - including food, toiletries, beauty products, garments,
kitchenware, bed and bath linen, home appliances and more - available at competitive
prices that our customers appreciate. Our core objective is to offer customers good
products at great value.

DMart was started by Mr. Radhakishan Damani and his family to address the
growing needs of the Indian family. From the launch of its first store in Powai in
2002, DMart today has a well-established presence in 168 locations across
Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana,
Chhattisgarh, NCR, Tamil Nadu, Punjab and Rajasthan. With our mission to be the
lowest priced retailer in the regions we operate, our business continues to grow with
new locations planned in more cities.

The supermarket chain of DMart stores is owned and operated by Avenue

Supermarts Ltd. (ASL). The company has its headquarters in Mumbai.

* The brands D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch

Harbour, etc are brands owned by ASL

FOUNDERS

DMart is owned and operated by Avenue Supermarts Ltd. (ASL) – a company

founded by Mr. Radhakishan Damani. Mr. Radhakishan Damani is respected in the
business world as an astute investor in the Indian equity market, he has built a
company that constantly strives towards developing a deep understanding of customer
needs and satisfying them with the right products. A firm believer in core business
fundamentals and strong ethical values, Mr. Damani has built DMart into an efficient,
large and profitable retail chain that is highly respected by customers, partners and
employees alike.

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OUR MISSION

At DMart, we research, identify and make available new products and

categories that suit the everyday needs of the Indian family. Our mission is to provide
the best value possible for our customers, so that every rupee they spend on shopping
with us gives them more value for money than they would get anywhere else.

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RESEARCH STUDY
OVERVIEW OF THE TOPIC
SALES PROMOTION

Sales promotion is one level or type of marketing aimed either at the consumer or at
the distribution channel (in the form of sales-incentives). It is used to introduce new
product, clear out inventories, attract traffic, and to lift sales temporarily. It is more
closely associated with the marketing of products than of services. The American
Marketing Association (AMA), in its Web-based "Dictionary of Marketing Terms,"
defines sales promotion as "media and nonmedia marketing pressure applied for a
predetermined, limited period of time in order to stimulate trial, increase consumer
demand, or improve product availability." Business pundits and academic students of
business have developed almost fancifully sophisticated views of sales promotion. In
down-to-earth terms it is a way of lifting sales temporarily by appealing to economic
motives and impulse-buying behavior. The chief tools of sales promotion are
discounts ("sales"), distribution of samples and coupons, the holding of sweepstakes
and contests, special store displays, and offering premiums and rebates. All of these
techniques require some kind of communication. Thus sales promotion and
advertising are difficult to distinguish.

The need for promotion arises from the intensity of competition. Sellers must
somehow attract customers' attention. In the open markets of old (and farmers markets
of today), sellers did and do this by shouting, joking with customers, and sometimes
by holding up a squealing piglet for everyone to see. PriyaRaghubir and his coauthors,
writing in California Management Review, identify "three faces" of consumer
promotions: these are information, economic incentive, and emotional appeal.
Information may take the form of advertising the availability of something, incentives
are offered in the form of discounts, and emotional appeals are made by displays and,
of course, by the low price itself.

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Precisely because sales promotions must provide incentives—whether to the

distribution channel, the company's own sales people, or to the consumer—they cost
money by definition and must produce additional volume to pay for the expenditures.
A grand sale that clears out the inventory but, with added advertising costs factored in,
reduces margin too is—a failure. Sales promotions therefore must be carefully
calibrated to achieve the purpose. Holding promotions too frequently will habituate
customers to buy only when promotions are in effect. Avoiding promotions altogether
will let competitors draw customers away.

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PROMOTIONAL STRATEGIES

The promotion strategies of marketing is concerned with activities that are undertaken
to communicate with customers and distribution channels to enhance the sales of the
firm.
The promotional strategy aims at informing and persuading the customer to buy the
product and informing him about the merits of the products.
It refers to all the decisions related to promotion of sales of products and services. The
important decisions of promotion mix are selecting advertising media, selecting
promotional techniques, using publicity measures and public relations etc.
There are various tools and elements available for promotion. These are adopted by
firms to carry on its promotional activities. The marketer generally chooses a
combination of these promotional tools.
Following are the tools or elements of promotion. They are also called elements of
promotion mix:
1. Advertising
2. Sales promotion
3. Personal selling
4. Public relation

1. Advertising:

Advertisement can be defined as the “paid form of non-personal presentation and

promotion of idea, goods or services by an identified sponsor”.
It is an impersonal presentation where a standard or common message regarding the
merits, price and availability of product or service is given by the producer or
marketer. The advertisement builds pull effect as advertising tries to pull the product
by directly appealing to customer to buy it.
2. Sales Promotion:
Sales promotion refers to short term use of incentives or other promotional activities
that stimulate the customer to buy the product. Sales promotion techniques are very
useful because they bring:

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(a) Short and immediate effect on sale.

(b) Stock clearance is possible with sales promotion.
(c) Sales promotion techniques induce customers as well as distribution channels.
(d) Sales promotion techniques help to win over the competitor.
3. Personal Selling:
Personal selling means selling personally. This involves face to face interaction
between seller and buyer for the purpose of sale.
The personal selling does not mean getting the prospects to desire what seller wants
but the concept of personal selling is also based on customer satisfaction.

4. Public Relations:
Apart from four major elements of marketing mix, another important tool of
marketing is maintaining Public Relations. In simple words, a public relations means
maintaining public relations with public. By maintaining public relations, companies
create goodwill.
Public relations evaluate public attitudes; identify the policies and procedures of an
Organization with the public interest to earn public understanding and acceptance.
Public does not mean only customers, but it includes shareholders, suppliers,
intermediaries, customers etc. The firm’s success and achievement depends upon the
support of these parties for example, firm needs active support of middle men to
survive in market, it must have good relations with existing shareholders who provide
capital. The consumers’ group is the most important part of public as success of
business depends upon the support and demand of customers only.

Promotion Strategies

A successful product or service means nothing unless the benefit of such a

service can be communicated clearly to the target market. An organizations
promotional strategy can consist of several aspects as follows.

Advertising:  Is any non-personal paid form of communication using any form of

mass media.
Public relations: Involves developing positive relationships with the organization
media public. The art of good public relations is not only to obtain favorable publicity

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within the media, but it is also involves being able to handle successfully negative
attention.
Sales promotion: Commonly used to obtain an increase in sales short term. Could
involve using money off coupons or special offers.
Personal selling: Selling a product service one to one.
Direct Mail: Is the sending of publicity material to a named person within an
organization. There has been a massive growth in direct mail campaigns over the last
5 years. Spending on direct mail now amounts to £18 bn a year representing 11.8% of
advertising expenditure (Source: Royal Mail 2000).  Organizations can pay
thousands of pounds for databases, which contain names and addresses of potential
customers. 
Direct mail allows an organization to use their resources more effectively by allowing
them to send publicity material to a named person within their target segment. By
personalizing advertising, response rates increase thus increasing the chance of
improving sales. 
Listed below are links to organization who's business involves direct mail.

Message & Media Strategy

An effective communication campaign should comprise of a well thought out
message strategy. What message are you trying to put across to your target audience?
How will you deliver that message? Will it be through the appropriate use of
branding? Logos or slogan design?. The message should reinforce the benefit of the
product and should also help the company in developing the positioning strategy of
the product. Companies with effective message strategies include:
Media strategy refers to how the organization is going to deliver their
message. What aspects of the promotional mix will the company use to deliver their
message strategy. Where will they promote? Clearly the company must take into
account the readership and general behavior of their target audience before they select
their media strategy. What newspapers do their target market read? What TV
programmes do they Biscuit? Effective targeting of their media campaign could save
the company on valuable financial resources.

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Push & Pull Strategies

There are three types of sales promotion strategies:

 A push strategy
 A pull strategy or
 A combination of the two

A 'push' sales promotion strategy involves 'pushing' distributors and retailers to

sell your products and services to the consumer by offering various kinds of
promotions and personal selling efforts. What happens here is that a company
promotes their product/services to a reseller who in turn promotes it to another
reseller or to the consumer. The basic objective of this strategy is to persuade retailers,
wholesalers and distributors to carry your brand, give it shelf space, promote it by
advertising, and ultimately 'push' it forward to the consumer. Typical push sales
promotion strategies include; buy-back guarantees, free trials, contests, discounts, and
specialty advertising items.
A 'pull' sales promotion strategy focuses more on the consumer instead of the
reseller or distributor. This strategy involves getting the consumer to 'pull' or purchase
the product/services directly from the company itself. This strategy targets its
marketing efforts directly on the consumers with the hope that it will stimulate
interest and demand for the product. This pull strategy is often used when distributors
are reluctant to carry or distribute a product. Typical pull sales promotion strategies
include; samples, coupons, cash refunds or rebates, loyalty programs and rewards,
contests, sweepstakes, games, and point-of-purchase displays.
A 'combination' sales promotion strategy is just that; it is a combination of a push
and a pull strategy. It focuses both on the distributor as well as the consumers,
targeting both parties directly. It offers consumer incentives side by side with dealer
discounts.
Communication by the manufacturer is not only directed towards consumers
to create demand. A push strategy is where the manufacturer concentrates some of
their marketing effort on promoting their product to retailers to convince them to
stock the product. A combination of promotional mix strategies are used at this stage
aimed at the retailer including personal selling, and direct mail. The product is pushed
onto the retailer, hence the name. A pull strategy is based around the manufacturer

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promoting their product amongst the target market to create demand. Consumers pull
the product through the distribution channel forcing the wholesaler and retailer to
stock it, hence the name pull strategy. Organizations tend to use both push and pull
strategies to create demand from retailers and consumers

Communication Model
AIDA is a communication model, which can be used by firms to aid them in
selling their product or services. AIDA is an Acronym for Attention, Interest, Desire,
Action.. When a product is launched the first goal is to grab attention. Think, how
can an organization use it skills to do this? Use well-known personalities to sell
products? Once you grab attention how can you hold Interest, through promoting
features, clearly stating the benefit the product has to offer? The third stage is desire,
how can you make the product desirable to the consumer? By demonstrating it? The
final stage is the purchase action, if the company has been successful with its
strategy then the target customer should purchase the product.
Promotion through the Product life cycle
As products move through the four stages of the product lifecycle different
promotional strategies should be employed at these stages to ensure the healthy
success and life of the product .
Stages and promotion strategies employed.
Introduction
When a product is new the organizations objective will be to inform the target
audience of its entry. Television, radio, magazine, coupons etc may be used to push
the product through the introduction stage of the lifecycle. Push and Pull Strategies
will be used at this crucial stage.
Growth
As the product becomes accepted by the target market the organization at this stage of
the lifecycle the organization works on the strategy of further increasing brand
awareness to encourage loyalty.

Maturity
At this stage with increased competition the organization take persuasive tactics to
encourage the consumers to purchase their product over their rivals. Any differential

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advantage will be clearly communicated to the target audience to inform of their

benefit over their competitors.
Decline
As the product reaches the decline stage the organization will use the strategy of
reminding people of the product to slow the inevitable

FACTORS AFFECTUNG SALES PROMOTION

Type of product plays an important role in deciding on promotion mix. Product can be
categorized in terms of branded products, non-branded products, necessity products,
luxury products, new products, etc. All these types of products need different
promotional tools. For example, advertising is suitable for the branded and popular
products. Personal selling may be fit for non-branded products. Advertising, personal
selling, sales promotion and publicity – all four tools – are used for a newly launched
product to get a rapid consumer acceptance.

Use of Product:
Product may be industrial product, consumable and necessity product, or may be
luxurious product that affects selection of promotion tools and media. For example,
advertising and sales promotion techniques are widely used for consumer goods while
personal selling is used for industrial goods.

Complexity of Product:

Product complexity affects selection of promotional tools. Personal selling is more

effective for complex, technical, risky, and newly developed products as they need
personal explanation and observation. On the other end, advertising is more suitable
for simple and easy-handled products.

Purchase Quantity and Frequency:

Company should also consider purchase frequency and purchase quantity while
deciding on promotion mix. Generally, for frequently purchase product, advertising is
used, and for infrequently purchase product, personal selling and sales promotion are
preferred. Personal selling and advertising are used for heavy users and light users
respectively.

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Fund Available for Market Promotion:

Financial capacity of company is a vital factor affecting promotion mix. Advertising
through television, radio, newspapers and magazines is too costly to bear by
financially poor companies while personal selling and sales promotion are
comparatively cheaper tools. Even, the company may opt for publicity by highlighting
certain commercially significant events.

Type of Market:
Type of market or consumer characteristics determine the form of promotion mix.
Education, location, income, personality characteristics, knowledge, bargaining
capacity, profession, age, sex, etc., are the important factors that affect company’s
promotion strategy.

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PROBLEM DEFINITION

This is therefore the subject of attention about how the company is managing
to satisfy customer on a very large scale.
Proper Sale Promotion Strategy are most important in order to achieve best
result. Sale Promotion strategy implemented by the company may not be satisfactory.
This study will therefore explore the factors responsible for consumer satisfaction.
D.Mart provides the benefits of streamlined operations, enhanced administration &
control and improved profitability.

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OBJECTIVES OF THE STUDY

 To understand the impact of sales promotion on its sales volume.

 To find out the tool and techniques of sales promotion that is used in D-Mart.
 To identify the factors influencing to buy the product from D-Mart.
 To know the level of satisfaction to words the sales promotional activities
carried out by D-Mart.
 To identify the reason of dissatisfaction If any

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HYPOTHESIS
A hypothesis in a scientific context, is a testable statement about the
relationship between two or more variables or a proposed explanation for some
observed phenomenon. In a scientific experiment or study, the hypothesis is a brief
summation of the researcher's prediction of the study's findings, which may be
supported or not by the outcome. Hypothesis testing is the core of the scientific
method.

 Sale promotion strategies used by D. Mart are very effective and most of the
distributor and retailer are satisfied with strategy.

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SCOPE OF THE STUDY

 The study is limited to Nagpur.

 The study is limited to Sales Promotion of D.Mart.
 The study is limited to data of 2017-18
 The study is limited to data obtained from 50 customer.

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THEORETICAL PERCEPTION
Increased competition in the financial sector in general and in Finnish credit
card markets particular have made prices more transparent and thus increased the
competition with price. Also the fact that participants in the Finnish credit card
markets are not very different from one another has also contributed to the increased
price competition. Many credit card marketers are using value increasing promotion
method, namely price reductions by giving customers free annual fees. The method
has become so popular among credit card marketers and widely familiar among
consumers that market entry without free annual fee has become difficult. The current
situation is in accordance with what Peattie & Peattie (1993) claim about promotions
becoming so common that firms are almost obliged to follow or risk losing market
shares. Sales promotion tools and objectives were analyzed in Chapter 3. In general,
sales promotion is used to encourage immediate action among consumers. Value
adding and value increasing promotions are targeted with unique objectives to
potential users, competitor loyals, brand switchers and loyal customers. (Peattie &
Peattie 1993) Also the possible problems of value increasing sales promotion in the
context of financial services were identified and additional use of value adding
promotion is suggested. Intense competition in the credit card markets has made price
reductions almost imperative but surviving the competition requires more. One
promotional method to be used to stand out from competition could be the increased
use of value adding promotion. In the promotion of the company¥s credit card, value
adding deals such as the increased bonuses and sweepstakes are used in addition to
the value increasing price reductions.
The substantial body of literature on promotions is composed of three broad
streams of research. The first stream of research is concerned with the empirical
estimation of the effects of price promotion on aggregate market outcomes such as
sales, market share and brand switching (Appendix 1). This stream of research is
largely descriptive and seeks to measure the height of the promotional spike in sales
(Gupta, 1988), the promotional price elasticity (Guadgani and Little,1983; Kamakura
and Russell, 1989), and the post promotion average repeat purchase rate (Shoemaker
& Shoaf, 1977; Dodson et.al, 1978). The second stream of research seeks to identify
the promotion sensitive consumer in terms of demographics, psychographics and
purchase behavior (Appendix 1). This stream of research characterizes the promotion

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sensitive consumer in terms of variables such as income, household size, age and
gender. The third stream of research examines the psychological impact of promotions
on consumer behavior and decision-making. It uses psychological theories and
models to explain why consumers respond to promotions. In the current paper, the
theoretical approaches used to study consumers’ psychological response to
promotions are reviewed. The review indicates that the theoretical approaches have
had a single product focus in evaluating consumer response to promotions. The paper
proposes an alternative theoretical perspective to evaluate consumer response to
promotions from a multi product perspective. This perspective is used to study the
psychological processes leading to a positive cross product impact of a promotion (i.e.
increase in sale of regular priced products during a promotion).
Most of the theoretical research on promotions has concentrated on aspects of
price and its impact on consumer judgments. This is probably due to the fact that the
bulk of the research has focused on price promotions. Studies have examined the
impact of price promotions on consumers’ internal reference price (Lattin and
Bucklin, 1989; Kalwani and Yim, 1992) and the impact of comparative price
advertising1 on consumer perception of savings obtained from a price promotion
(Berkowitz and Walton, 1980; Urbany, Bearden and Weilbaker, 1988; Bearden,
Lictenstein and Teel, 1984). The theoretical approaches, which have been used to
study the price-related aspects of a promotion, include adaptation level theory and
assimilation contrast theory. Apart from these, other theoretical approaches used to
study consumer response to price promotions include attribution theory, transaction
utility theory, the attitude model and the elaboration likelihood model. Each of these
theoretical approaches is discussed in detail below.
Self perception theory: Researchers who have applied self perception theory to
price promotions have stated that a purchase in the presence of a strong promotion is
expected to lead the consumer to attribute purchase to an external cause (i.e. the
promotion) rather than an internal cause (i.e. liking for the product). This will lead to
discounting of a favorable brand attitude and repeat purchase probability will
diminish. Basically, self perception theory suggests a negative long term effect of
price promotions on consumer attitudes and behavior. Dodson, Tybout and Sternthal
(1978) examined different types of price promotions - media distributed coupons,
cents off marked packages and on/in-package coupons - and used self perception
theory to explain the results. The media distributed coupons had highest economic

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value and were expected to induce more switching than cents off and package
coupons. They hypothesized that since media coupons had high economic value,
consumers would attribute their purchase to the presence of the media coupon and this
would lead to lower repeat purchase probability. Since cents off deal and package
coupon offered lower economic value, purchase here was likely to be attributed to
internal factors and this would lead to higher repeat purchase probability.
Attribution to internal (liking for the brand) versus external (presence of a
promotion) factors would determine the repeat purchase probability for the brand. The
results of the study were in accordance with the hypotheses. Media distributed
coupons undermined repeat purchasing to the greatest extent followed by cents off
deals. Package coupons had the highest repeat purchase rate. Although Dodson et. al
(1978) applied self perception theory to interpret the results of their study, the panel
data used did not match requirements for causality to infer the conclusions. There are
competing explanations for the results found by the authors. The study did not
measure brand evaluations directly and it is not evident that consumers really made
the attributions suggested by the authors. An alternative explanation for lower repeat
rates after a price promotion was offered by Neslin and Shoemaker (1989). They
stated that lower repeat rates could be found after a price promotion even when
individual purchase probabilities remain the same before and after a price promotion.
This is because a price promotion temporarily attracts a disproportionate number of
households who under non-promotion circumstances have a very low probability of
buying the brand. Thus after a price promotion, the low purchase probabilities of
these ‘new consumers’ brings down the average repurchase rate. The authors stated
that consumers have a low level of involvement in everyday shopping situations. In
such low involvement situations, consumers are not motivated enough to make the
kind of attributions suggested by self-perception theory

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RESEARCH METHODOLOGY

Research methodology is a way to systematically show the research problem. It may

be understood as a science of studying how research is done scientifically. It is
necessary for the researcher to know not only the research methods but also the
methodology.

This Section includes the methodology which includes. The research design,
objectives of study, scope of study along with research methodology and limitations
of study etc.

RESEARCH DESIGN
A research design is the specification of methods and procedure for acquiring
the information needed. It is over – all operation patterns or framework of the project
that stipulates what information is to be collected from which source by what
procedure, it is also refers to the blue print of the research process.

SAMPLING :-
Sampling refers to the method of selecting a sample from a given universe with
a view to draw conclusions about that universe. A sample is a representative of the
universe selected for study.

SAMPLE SIZE :-

Large sample gives reliable result than small sample. However, it is not
feasible to target entire population or even a substantial portion to achieve a reliable
result. So, in this aspect selecting the sample to study is known as sample size. Hence,
for the project my sample size was 50.

SAMPLING TECHNIQUE:-
Random sampling technique was used in the survey conducted.

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TOOLS OF ANALYSIS:-
Data has been presented with the help of bar graph, pie charts, line graphs etc.

PLAN OF ANALYSIS:-
Tables were used for the analysis of the collected data. The data is also neatly
presented with the help of statistical tools such as graphs and pie charts. Percentages
and averages have also been used to represent data clearly and effectively.

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DATA COLLECTION :-

To fulfill the information need of the study. The data is collected from primary
as well as secondary sources-

A - PRIMARY DATA :-
I decided primary data collection method because our study nature does not
permit to apply observational method.

In survey approach we had selected a questionnaire method for taking a customer

view because it is feasible from the point of view of our subject & survey purpose.

B – SECONDARY DATA:-

It was collected from internal sources. The secondary data was collected on
the basis of organizational file, official records, news papers, magazines, management
books, preserved information in the company’s database and website of the company.

DATA COLLECTION INSTRUMENT DEVELOPMENT :-

The mode of collection of data will be based on Survey Method and Field
Activity. Primary data collection will base on personal interview. I have prepared the
questionnaire according to the necessity of the data to be collected.

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DATA INTERPRETATION & ANALYSIS

1) Which mall first comes to you mind, when you think about
purchasing products?

D’Mart 18 36
BigBazar 12 24
Both 8 16
Other 12 24
50 100

Series 1

40% 36%

35%

30%
24% 24%
25% Series 1

20% 16%

15%

10%

5%

0%
D’Mart BigBazar Both Other

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2) How frequently do you visit a store?

Daily 4 8
Weekly 7 14
Monthly 34 68
Yearly 5 10
50 100

Series 1
68%
70%

60%

50%
Series 1
40%

30%

20% 14%
8% 10%
10%

0%
Daily Weekly Monthly Yearly

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3) How much do you spend as monthly expense while shopping?

Below 1000 7 14
1000 – 2000 9 18
2000 – 5000 19 38
More than 5000 15 30
50 100

Series 1
38%
40%

35% 30%
30%

25% Series 1
18%
20%
14%
15%

10%

5%

0%
Below 1000 1000 – 2000 2000 – 5000 More than 5000

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4) Which offer do you like the most in D’Mart?

Buy – 1 Get – 1 free 24 48
Gift Voucher 11 22
Futune Card (6% 7 14
Discount)
Others 8 16
50 100

Series 1
48%
50%
45%
40%
35%
30% Series 1
22%
25%
20% 16%
14%
15%
10%
5%
0%
Below 1000 1000 – 2000 2000 – 5000 More than 5000

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5) Rank the facture that attracted please choose from below the factor
which attracted you Nerest while purchasing?

Offer 23 46
Service 7 14
Quality 10 20
Availability of product 10 20
50 100

Series 1

50% 46%

45%
40%
35%
30% Series 1

25% 20% 20%

20% 14%
15%
10%
5%
0%
Offer Service Quality Availability of product

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6) From which sources did you come to know about outlet?

T.V 1 2
Friend 11 22
Hoarding 4 8
Family 12 24
News Paper 5 10
Mouth Publicity 17 34
50 100

Series 1
34%
35%
30%
24%
25% 22%

20%
Series 1
15% 10%
8%
10%
5% 2%

0%
T.V d in
g ily er ity
ien rd m ap lic
Fr a Fa P b
Ho ws Pu
Ne th
ou
M

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7) How would you choose the product from the store?

Advertisement 6 12
Reference 5 10
Experience 4 8
Quality 15 30
Quantity 7 14
Service 13 26
50 100

Series 1
30%
30%
26%

25%

20%
Series 1
14%
15% 12%
10%
10% 8%

5%

0%
Advertisement Reference Experience Quality Quantity Service

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8) Main reason for coming to the store?

Value for money 6 12

Discount 37 74
Saving of time 3 6
Wide product range 4 8
available
50 100

Series 1
74%
80%
70%
60%
50%
40%
30% 12%
20% 6% 8% Series 1
10%
0%
ey t e e
un m bl
on sc
o f ti ia la
m
or Di go ea
v
e f iv n g
lu Sa ra
n
Va ct
odu
r
dep
i
W

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9) Advertisement affect your shopping behaviour?

Yes 21 42
No 29 58
50 100

Series 1

58%
60%

50% 42%

40% Series 1

30%

20%

10%

0%
Yes No

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10) Are you agree with the tag line of D’Mart Daily Discount, daily
Saving?

Yes 19 38
No 31 62
50 100

Series 1

70% 62%

60%

50% 38% Series 1

40%

30%

20%

10%

0%
Yes No

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11) Which section of the D’Mart store do you like the most?

Food Mart 21 42
Household 10 20
Kids 6 12
Home appliance 11 22
Kitchen appliance 2 4
50 100

Series 1
42%
45%
40%
35%
30%
22%
25% 20%
20% Series 1
12%
15%
10% 4%
5%
0%
t ld ds ce ce
ar ho Ki
M e l ian lian
od us pp ap
p
Fo Ho ea en
m
Ho ti ch
K

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12) How much distance do you have the store?

0 - 5km 6 12
5 – 10km 8 16
10 – 15km 15 30
More than 15km 23 46
50 100

Series 1

50% 46%

45%
40%
35% 30%
30% Series 1

25%
20% 16%
12%
15%
10%
5%
0%
0 - 5km 5 – 10km 10 – 15km More than 15km

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13) Are you happy with the of store?

Yes 36 72
No 14 28
50 100

Series 1

72%
80%
70%
60%
Series 1
50%
40% 28%
30%
20%
10%
0%
Yes No

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14) Would you like to make your purchase under unexpected offer?

Yes 32 64
No 18 36
50 100

Series 1

64%
70%

60%

50% Series 1
36%
40%

30%

20%

10%

0%
Yes No

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15) Are you satisfied with service provided by store?

Yes 40 80
No 10 20
50 100

Series 1
80%

80%
70%
60%
Series 1
50%
40%
30% 20%

20%
10%
0%
Yes No

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16) Are you happy with the parking facility provided?

Yes 38 76
No 12 24
50 100

Series 1

76%
80%
70%
60%
Series 1
50%
40%
24%
30%
20%
10%
0%
Yes No

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CONCLUSION

 The quality delivered by D-Mart is quite good.

 Its unique way of promoting its product really attracts the consumer.
 The promotional offers or the promotional discounts held by D-Mart on a
particular season or even in a festive season do attracts the consumer.
 The pricing of D-Mart is quite satisfactory and this season to the main reason
for the company rapid growth.
 D-Mart at present requires to review it marketing and distribution strategies
specially concentrating on retailers queries.
 It already is one of the most renowned household brand in the country.
 Hence all it needs to do is to take full advantage of this fact. If the company
works out it marketing strategies for its products thoughtfully and calculative
it will not be long before D-Mart becomes the market leader which it presently
is in all the sectors.
 From the findings it has been shown that it needs to increase the margin since
its push strategy mainly focuses on the retailer, who don’t want to product if
they do not have any extra benefits.
 Increase more advertisement about the product could prove to be more fruitful.

SUGGESTION

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 It could venture into corporate tie-ups at its various outlets.

 Undertaking products at par base but D-Mart should also concentrate in
various products to improve its brand image.
 Conduct some giveaway of the new product launched as an promotional basis
 Set up some mini outlets to go offline rather than only selling its product
through E-commerce.
 Company should also focus on the offline markets rather than concentrating
only on an E-commerce market.
 Whatever methods the company chooses to employ, interactive
communication should be given high priority.

BIBLIOGRAPHY

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BOOKS:
1. Marketing Management By Philip Kotler.
2. Marketing Management BySherlekar, Himalaya Publishing House.
3. Marketing Management: Czinkota, Cengage Learning.
4. Marketing Management: Text & Cases by Chandrashekar, McGraw Hill.

ANNEXURE

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Name :- _____________________________
Gender :- Male Female
Age :-
a) 18-20
b) 21-26
c) 26-30
d) 30 and Above
Occupation
a) Student
b) Employed
c) Self Employed
d) Others

1. How frequently do you visit a Store?

a) Daily
b) Weekly
c) Monthly
d) Yearly
2. How much do you spend as monthly expense while shopping?
a) Below 1000
b) 1000 - 2000
c) 2000 - 5000
d) More than 5000
3. Which offer do you like the most?
D’ Mart
a) Buy – 1 Get – 1 free
b) Gift Voucher
c) Futune Card (6% Discount)
d) Others
4. Rank the facture that attracted please choose from below the factor which
attracted you Nearest while purchasing?

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 CITY PREMIER COLLEGE

a) Offer
b) Service
c) Quality
d) Availability of product
5. From which sources did you come to know about outlet ()
a) T.V e) Friend
b) Hoarding f) Family
c) News Paper
d) Mouth Publicity
6. How would you choose the product from the Store?
a) Advertisement
b) Reference
c) Experience
d) Quality
e) Quantity
f) Service
7. Main reason for coming to the Store?
a) Value for money
b) Discount
c) Saving of time
d) Wide product range available
8. Advertisement affect your shopping behaviour?
a) Yes b) No
9. Are you agree with the tag line of D’Mart Daily Discount, Daily Saving!!!?
a) Yes b) No
10. Which section of the D’mart Store do you like the most?
a) food mart b) household
c) kids d) Home appliance
e) Kitchen appliance
11. how much distance do you have the store?
a) 0 – 5km
b) 5 – 10km
c) 10 – 15km
d) More than 15 km

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12. Are you happy with the of store?

a) yes b) No
13. Would you like to make your purchase under unexpected offer?
a) yes b) No
14. Are you satisfied with service provided by Store?
a) yes b) No
15. Are you happy with the parking facility provided?
a) yes b) No

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