HAWASSA UNIVERSITY
Collage of Business and Economics
Department of Marketing Management
ASSESMENT OF 4Ps MARKETING MIX STRATEGY’s PRACTICES IN CASE
OF FURRA COLLEGE IN YIRGALEM TOWN
A Research Proposal Submitted To Department Of Marketing Management
for the Partial Fulfillment of the Requirement of Bachelor of Arts (BA)
Degree in Marketing Management
By: Biruk Sisay
ID No: MMG/0034/09
Advisor: Binyam D (MBA) December, 2018
Yirgalem, Ethiopia
Acknowledgments
First and for most I would like to thank my almightily of God who made me a lead by life
till this moment. I will also thank my advisor INS Binyam (MBA) for his constructive and
professional help in doing this proposal in effectively and advisable manner. And also I will
thank my friends for every individual who share their contribution directly or indirectly to
my proposal
TABLE CONTENTS CONTENT
Acknowledgement………………………………………………………………….
Chapter one ………………………………………………………………
1. Introduction………………………………………………………………..
1, 1 Background of the study ……………………………………………….
1.2 Background of organization………………………………………….
1.3 Statement of problem………………………………………………………
1.4 Basic research question………………………………………………………
1.5 research objective ………………………………………………………………………
1.5.1 General objective ……………………………………………………………………..
1.5.2 Specific objective ……………………………………………………………………..
1.6 significance of the study……………………………………..................................
1.7 Scope of the study………………………………………………………………………
1.8 Limitation of the study………………………………………………………………….
1.9 Organization of the paper……………………………………………………………….
CHAPTER TWO …………………………………………………….................................
2 literature review………………………………………………………………………
2.1 marketing and marketing strategy its meaning ---------------------------------
2,2 marketing mix strategy ---------------------------------------------------------------
2, 3 product strategy ………………………………………………………………………..
2.3.1 Product mix strategy…………………………………………………………………..
2.3.2 Marketing through the product life cycle ………………………………………..
2.4 pricing strategy………………………………………………………………………….
2.4.1 Factors of be considered when setting price……………………………………....
2.4.2 Price bundling strategy ……………………………………………………………….
2.4.3 Pricing adjustment strategy………………………………………………………….
2.5 promotional strategy …………………………………………………………………….
2.5.1 Promotional mix ………………………………………………..............................
2.6 distribution strategy …………………………………………………………………….
2.6.1 Function of intermediaries…………………………………………………………….
2.6.2 Channel conflict ……………………………………………………………………….
Chapter Three……………………………………………………………………………………
3. Research methodology………………………………………………………………………..
3.1. Research Design ……………………………………………………………………
3.2. Target population………………………………………………………………….
3.3. Sampling size and Techniques………………………………………………………..
3.4. Types of data and source of data……………………………………………………….
3.5. Method of data collection…………………………………………………………….
3.6. Data analysis techniques …………………………………………………………..
Reference…………………………………………………………………………………
…
CHAPTER ONE
1. Introduction
1.1. Background of the study
During the 1990s many strategy guide lines were offered by consultant’s executives and
academics to guide business strategy formulation. These strategy paradigms propose arrange of
action including re arranging the corporation’s total quality management building distinctive
competencies re inventing the organization and strategy partnering. It is not feasible to review
were the various strategy concepts and methods that are available in many books, seminars and
consulting service (Cruvens, 2003).
Organizations have to use the best strategy in order to manage correctly. The mechanism by
which a long term relationship have develop between that organization have to and its customers
so that mutually beneficial exchangers will take place the heart of this relationship is what is
offered by a firm which must match with the needs and wants of its customers (Adrian and Cole,
1995).
Marketing is therefore the part of firm’s activity which seeks to create the best match between its
target customers need and wants to do so. The organization have focused on the marketing mix
elements This marketing management elements are grouped in to four variables known as 4ps
these are the product, Price, place and promotion (Kotler, 1996).
Marketing strategy is an overall companywide program for selecting a particular target market
and then satisfying consumers in that market through a careful blending of elements of marketing
mix product, distribution, promotion and price each of which is a subset of the overall marketing
strategy (Kurtz, 2010).
Marketing strategy is a marketing logic by which the business unit hopes to achieve its
marketing objective. It emphasizes on the development of marketing mix elements. Good
marketing have long be recognizes as important contributor to the survival and success of
organization designing the best marketing mix. Constitutes the companies tactical tools for
establishing strong position in the customers mind of the target market (Kotler, 1996).
1.2 Background of organization
This study focus on marketing strategy’s practices of furra college is belongs to in yirgalem city.
Furra institute of development studies and education is located in southern part of the country;
317 km south of Addis Ababa the capital city of Ethiopia and 42 km from Hawassa the capital
city of Sidama zone southern region. It is located on the edge of great Ethiopian rift valley along
international road running from Addis Ababa to Nairobi in Kenya. This company established in
1977. The college has six departments with 780 student population and 329 employees. The
institute is dedicated in human capital development specifically participatory training
dimension .the institute is financing. Furra institute has grown from sidama development
program institute in sidama supported by Ireland Aid area based program in 1996 G.C.
The institute is named after tenth century Sidama queen called ‘’FURRA’’reflecting the
importance of women in leadership.
DURING THE REIGN OF FURRA
- Women enjoyed emancipation during her days.
-she has severely dominated men.
-she dominated the leadership and men became her slaves.
-she was preaching women not to be oppressed by men.
1.3 Statement of the problem
It is natural that every business organization whether small or large private or government
domestic or international operate in a turbulent and uncertain environment in the context of
changing customer expectation. Technological discontinues increasing environmental
uncertainties.
Business managers have big challenges of making the right strategic choice and setting their
strategic priorities in order to allocate their resources to different functions in an efficient manner
for business success managers must develop new tools. New concept new strategy and the new
mind sets to cope with turbulent and tactic environment leading to discontinues change (Jain,
1997).
Marketing strategy influence the company ability to generate profits or to say in business. Not all
too often good product ideas and funded because of a poor marketing strategy. The FURRA
College does not have under taken enough promotional activities. Thus most people around have
no awareness about the product therefore wider potential customers that can be satisfied and
dwellers of this place were forced to consume cloths imported from abroad.
1.3.1 Basic Research Questions
1. What are the major problems regarding to marketing strategies practices?
2. How the marketing mix strategies are practiced by Furra College aligned with its mission
3. What are the attitudes of customers about the firms marketing strategy practices?
1.4 Research Objective
1.4.1 General Objective
The general objective of the study is to assess the 4ps of marketing mix strategy’s practices of
FURRA College in yirgalem town.
1.4.2 Specific Objective
To identify problems in countering the marketing strategies implementation of Furra
college.
To identify the company’s marketing mix strategy’s that was apple to the target market.
To examine the attitude of customer about the firms marketing strategy practice.
1.5 Significance of the study
The paper will be important for the company because it enable to know marketing mix elements
and marketing strategies. It also helps to the company to enhance its marketing mix strategies
practices increases sales volume of the company.
-It can be used for other researchers as a reference who will conduct on the related area.
-It is also very important for the researcher, since the researcher gets experience by conducting
this research.
-it will help to the researcher to develop ways of problem solving.
1.6 Scope of the study
The study will focus on assessment of 4ps of marketing mix strategies practice on Furra
college. The scope of this research is limited to Furra college only. Which do not include other
educational institutions around? The researcher is going to observe problems related with
assessment of 4ps marketing mix strategy’s practice in Furra college .Methodologically the
research will use descriptive research design to describe problem faced with the college This
research is conduct on southern Ethiopia ,SNNP regional state in Yirgalem town
1.8 Limitation of the study
While conducting this study the limitations that the researcher will face the challenges as,
- Budget constraint
-Luck of experience
-Limited information that will be given from the respondents
1.9 Organization of the paper
This paper will contain five chapter .The first chapter deals with the introduction that include
background of the study. Background of the organization, statement of the problem, objectives,
significance of the study. The second chapter deals with review related, literature review that
consists of definition and concept marketing strategy. The third chapter research methodology,
research design, target population, sampling techniques, types of data and source of data,
methods of data collection and data analysis techniques. The fourth chapter deals with data
analysis and interpretation .finally chapter five with conclusion and recommendation.
CHAPTER TWO
Literature review
2.1. Marketing and marketing strategy it’s manning
Marketing defined as a social and a managerial process by which an individuals and groups
obtain what they needs and wants through creating and exchanging products and value with
others. This definition can be examined by terms like need, want, and demand. product
relationship and market, Marketing is not only restricted to selling and advertising as it perceived
but is more than it advertising it identifies and satisfy customer need. It function revolve around
the wide variety and range of tasks and activities mostly termed as functions related to 4ps, I.e.
product, price, place and promotion marketing is.
A. Creating customer value and satisfaction are at the very heart of modern marketing
thinking and practice.
B. Very simple definition o f marketing is that it is the delivery of customer satisfaction at a
profit.
C. Sound marketing is critical to the success of every organization marketing can also be
defined as process of planning and execution the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives (Belch and Belch, 2003).
When we start marketing strategy the same term applies to the words “objective” and
strategy”. The marketing objectives are the aims. The goal to which the entire marketing
effort to the organization is directed. Marketing strategy therefore refers to the means by which
the marketing objectives will be achieved. The same short hand will also apply the marketing
objectives must begin with the world “To “and the marketing strategies with the world “by”
(Dave 1996).
According to me Donlad marketing strategies are the means by which marketing objectives will
be achieved and are generally concerned with the four major elements of the marketing mixes;
product, price protein and place (Makolm Mc Donald and Ian dunbar,2007).
In the world of kotler, marketing strategy is the marketing of logic by which the business unit
expects achieve its marketing objectives, marketing strategy objectives, marketing strategy
consists of marketing decisions on the business marketing expenditure. Marketing mix allocation
in relation to expected environmental and competitive conditions ( kotler, 2007).
2.2. Marketing mix strategies
The marketing mix was first developed by Mc carthy over 40 years ago. It was designed to
suggest threat you should have a balanced mix of marketing activities with in your marketing
planning. The planed mix of the controllable elements known as a “mix” because each ingredient
affects the other and the mix must over all be suitable to the target customer. The main four
elements of the marketing mix are described as “the 4ps”. Product, price, promotion and place
(Littler and Wilson. 1995).
2.3. Product strategy
Product strategy specifies market needs that may be served by different product offering. It is a
company’s product strategies, duly related to market straggles, which eventually come to
dominate overall strategy and the sprit company, product strategies deals with such matters as
number and diversify of products, product innovations. Product scope and product design. The
product aspects of marketing deal with the specification of the actual goods or services, and how
it related to the end users need and wants, the scope of product generally includes supporting
such as warranties, guarantees and support (www,wikpedia.org).
The prices is the amount a customer pays for the product, the price is very important as it
determiner the company profit and hence survival, Adjusting the price has a profound on the
marketing strategy and depending on the pries elasticity of the product often. It will affect the
demand and sales as will. Product decisions include aspects such as function. Appearance,
packaging, service warranty aspects such as function appearance, packaging, service warranty
and product strategy is perhaps the most important function of accompany. It must take in
account the capabilities in terms of engineering of production distribution (sales) existing in the
company or of time of delivery. It must get mate the competition (including new entrants)
probable moves to enter the same market (kotler, 2007).
Marketers identify a consumer need and then provide the proud or serve to fill that need. The
marketer’s job is tea pinpoint and understands existing needs expand up on them and identify
new ones. For examples because there are more singles and small families there days than in
years past marketing’s might see a need for products to be sold in smaller quantities and offered
in smaller packages. Let’s say your company has developed a new product that generates
enormous consumer demand your marketing department may ask you to find a way to speed up
the work full demand. Your marketing department may ask you to find a way to speed up the
work flow in order to crank out more products faster. A year after the product is introduced
however the market might be flooded with cheap imitation since one marketing strength is to
keep products price, competitive a marketer may then ask you to do a way to make the product
less expensively. This relationship works both ways.
There may be production and industrial engineers who may see a way to change the work
process that would create additional option for consumers. Those engineers will also be
instrumental in design and developments of products for which human factors and ergonomics
are important considerations may be there is room to add another product line, for instant that
produce X is still blue but new product is red product strategy by bull appeared some time erratic
and not coordinated socially during the periods where precuts line run indeapencly. However, it
has been dominated by very old tends rooted in the sales. Net work during the 1950’s defining
Bull’s market around the business applications and fighting against the sole IBM as competitor. (
Dave. 1996).
In essence the “product” refers to any think offered by a finn to provide customers satisfaction be
it tangible or intangible. It can be a single product, combination of products, a product service
combination or several related products and service. It a product is normally defined from the
perspective of the manufacture. It is also important to note two other points of view those of the
consumers and other relevant publics
There are four levels of products core tangible augmented and promised we begin with the
notion of the core proctor, which identifies what the consumers feel they are purchase the
product The core benefits derived when an over Wight 45 years old male purchases a $ 250 ten
speed bicycle is not transportation it is the hope for better health and improved conditioning in a
similar vim. That same individual may install a $16,000 swimming pool in his back yard. Not in
order to obtain exercise, but to reflect the status has desperately requires. Once the core product
hare was indicated the tangible product becomes important this tangibility is reelected primarily
in its quality levels features. Brand name laterally every product contains there compacts to a
greater or lesser degree. Unless the product is one of a kind (oil painting). The consumer will use
at least some of threes tangible e characteristics to evaluate alternatives and make choices. In
addition the importance of each will very across products situations and individual. At the next
level lies the augtmented product.
Every product is backed up by a host of supporting service, often buyer expects there services
and would reject the core tangible product if they were not available, Examples would be
restrooms and escalators elevators in the care of department store, and warranties and return
polices in the care of a lawn mower. It means that a Dow sales representative will visit troubles
framer after hours in order to solve a serious problem this extra services is an integral part of
the augmented product and a key to their success in award with many strongly competitors and
few unique products. The role of the augmented product is clearly increasing ( Burnett. 2008).
2.3.1. Product mix strategy
A product mix also called product assortments is the set of all products and items that a
particular marketer offers for sale. The product mix of an individual company can be described
in terms of width, length depth and consistence. The width refers how many different product
lines the company carries. The length refers to the total number of items in the mix. The depth of
a product mix refers to how many variants to each product are offered. The consistency of the
products mix refers to how closely relate the various product liners are in end use production
requirements distribution channels or some other way. These four product mix dimensions
permit the company to expand its business by
1. adding new product line thus widening its product mix
2. lengthening each product line
3. deepening the product mix by adding more variants and
4. Pursuing more product line consistency (Aaker and kotler ,1990).
2.3.2. Marketing through the product life cycle
In two days highly dynamic marketing environment a company’s marketing strategy
must change as the product, market and competitors change over time. Here we describe
the concept of the (PLC) and the changes that companies make as the product passes
though each stage of the life cycle. To say that a product has life cycle is to assert four
things (1) products have limited life (2) product sales pars though distinct stages with
different challenges, opportunities and problems for the seller (3) profits rise and fall at
different stages of the product life cycle (4) products require different marketing financial
manufacturing purchasing and human resource strategies in each stage most PLC curves
are port rayed as a bell shape as shown in the following figure (Lancaster, 2004).
Figure1: Sales profit life cycles (kotler, 2oo7).
A. marketing strategies: introduction stage
Because it takes time to roll out a new product and fill dealer pipelines, sales growth
tends to slow at this stage. there are several causes for the slow growth delays in the
expansion of production capacity, technical problems (working out the bugs) deals in
obtaining adequate distribution through retail outlets and customer reluctance to
change established behavior firms focus on their selling on those buyers who are the
readier to buy usually higher income groups prices tend to high because cost re high
due to relatively low output rater technological brumes in production and high
required margins to support the heavy promotional expenditures.
B. Marketing strategies growth stages
The growth stage is marked by as rapid is sales and attracted by the opportunities new
competitors enter with news product features and expanded distribution prices remain
where they are fall slightly depending on how feast demand increase companies
maintain or increase their promotional expenditures to meet competition and to cone
to educate the market. During this stage the firm uses several strategies to educate the
market. During this stage the firm user several strategies to sustain rapid market
growth as long as possible (1) improving product quality and adding new put features
and improved staying (2) adding new models and flanker product (3) entering new
market segment (4) increasing distribution coverage and entering new distribution
channels (5) shifting from product awareness advertising to product preference
advertising and (6) lowering prices to attract the next layer of price sensitive buyers.
C. Marketing strategies; maturity stage
At some pint the rate of sales growth will slow and the product will enter a stage of
relative maturing. This stage normally /as it’s longer than the previous stages and
poses formidable challenges to marketing management. Most products are in the
maturity stage of the life cycle and most marketing managers cope which the
problems of marketing the mature product.
Three strategies for the maturity stage are market modification product modification
and marketing mix modification.
D. Marketing Decline stage as sales and profit decline some firms with draw form the
market those remain may reduce the number of product they offer, they may with
draw from smaller market segment and weaker trade channels and they may cut their
promotion budget and reduce their prices further, in a study of company strategy
inducing industries the five possible decline strategy increasing the firm’s investment,
maintaining the firm’s investment level until the in certainties about the industry are
resolved. Decreasing the firm’s investment level the selectively by dropping UN
profitable customer groups while simultaneously strengthen the films investment in
lucrative niches. Harvesting them firm’s investment to recover cash quickly and
divesting the business quickly by disposing of its assets as advantageously as
possible.
2.4.1. Pricing strategies
Pricing has traditionally been considered as me too variables in marketing strategy
effective pricing are not an easy task even under the most favorable conditions. A
large number of internal and external variable must be studies systematically before
price can be set, for example the reactions of a competitor often standout as an
important consideration in developing pricing strategy (Tellis ,1986).
The price is the amount a customer pays for the product, the price is very important as
it determines the company profit and hence survival. Adjusting the price has
marketing strength and depending on the price elastics of the product it will affect the
demand and sales as well. The market should set a price that complements the offer
elements of the marketing mix. Price is one of the elements of marketing mix and it
affects demand and sales. Price is in many ways one of the most visible and for many
organization price is also potentially the most controllable and flexible elements of
the mix. It is also in many cases one of the mast important elements and together the
product. A key comment of an organizations marketing storage. As the same time
however it is generally acknowledged that pricing decisions are among the possible
most difficult that marketing managers are required to make. There are several
reasons for this the most significant of which is the nature and complexity of the
interaction that commonly exists between three groups consumers, competitors and
the distribution net work and the need that exits to take this interaction in to account.
When either setting or changing a price. And added complexity is that pricing
decisions often have to be made quickly and without testing but almost invariably
have a direct effect up on profit largely because of this many marketing managers
work to reduce the relative importance of price by for example giving friar greater
emphasis to the predicts distinctive values and to its image in order case, the racing
decisions is taken out to the hands of the marketing strategies by a combination of
market related factors prominent among these is the presence of a large and
aggressive competitor who inpriactices determines prices for the industry as a whole
and how. With it exception of just one or two small nice players all other
organizations are obliged to follow. The issue faced then by the strategies revolves
not around the question of what price to set but rather how to ensure that costs are
contained in of consumer choice. It is significance is further emphasized by the fact
that price is the only elements of the mix that grates revenue the others produce cost.
It is perhaps understandable therefore that many marketing strategies treat pricing
decision within extra degree of caution, which helps to explain why studies on both
sides of the setting prices & with price competition is one of the biggest problems of
faced by marketing manages.
The combination of these factors also goes some way towards explaining why it has
often been suggested that relatively few organizations handle pricing well and why a
series of mistakes are commonly are. The most common of these are hat
- Pricing decision is often too heavily biased towards cost structures and fails to
take sufficient account of either competitors or customers probable response
patterns.
- prices are often set independently of other mix element and without sufficiently
explicit account being taken off for example advertising strategies & market
positioning
- prices often do not vary sufficiently greatly between different segment of market
- Prices often reflect a defensive rather than an offensive posture.
Taken together these points suggest that pricing decisions then the risk of emerging largely as the
result of historical factors. Or expediency rather than of detailed strategic thinking the like
LaHood of this risk is Ruther increased by the often haphazhal way in which the focus of
responsibility for pricing is allocates.
Although writers on marketing have long argued that price is marketing variables a substantial
body of evidence exists to suggest that in may organization price is still seen to be the
responsibility to the finical department that finance staff gourd their possession of this with a
degree of jealously that makes it difficult for marketing to do little major than exert a minimal
include. This is of course, a stance to which we do not subscribe (Richard Wilson and Colin
Gilligan, 2005).
When setting price the marketer must be aware of customer perceived value for the product.
Three basic pricing strategies are market skimming pricing. Marketing penetration pricing and
neutral pricing. The reference value (Where the consumer refers to the price of competing
products/ and the differential value the consumer view of this produce attributes versus the
attributes of other products) must be taken in to account pricing decision should take in to
account profit margins & the probable response of competitors. Pricing includes not only the list
price. Btu also discount financing and other options such as lasting pricing strategies for products
or services encompass their main ways to improve profits. These are that the business owner can
cut costs or sell more or find more profit with a better pricing strategies in the down turn of
2008-2011 & since. When costs are likely already at their lowest and sales are hard to find
adopting a better pricing strategy is a key options stay viable. Merely raising price is not always
the answer especially in a poor economy. too many business have been lost because they paced
them salver out of the market place on the other hand too strongly does not fit all so adopting a
pricing strategy is a learning curve within studying the needs and the product is the physical
product it also refers to nay services or conveniences that are part of the offering (kotler 2003).
2.4.1. Factors of to be considered when setting prices
A company pricing decision are affected both by internal and external factors.
- Internal factors affecting pricing includes company’s marketing objectives
marketing mix strategy cost and organization.
- External factors affecting pricing includes nature of the market and demand
competition and other environmental factors (economy resellers, government)
(Tellis 1986).
2.4.2. Price bundling strategy
Bundling also called pricing refers to the inclusion of an extra margin (for support servicer) in
the price over and above the price of the product as such. This type of pricing strategy has been
popular with companies that lease rather than sell their products.
Under the bundle strategy not only are costs of hard ware and profit covered anticipated expense
for extra technical sales assistance design and engineering of the system concept soft ware and
applications to be used on the system training of personal and maintenance also include (Philip
& Garry 2007).
2.4.3 Pricing adjustment strategy
Companies usually adjust their basic price to account for varies customer’s difference and
changing situation. Some of the pricing adjustment strategy are discount and allowance pricing,
segmented pricing, psychological pricing, promotional pricing, value pricing, geographical
pricing and international pricing (kotler,2007)
2.5. Promotion strategy
Promotion strategies are concerned with the planning implementing and control of persuasive
communication with customers, modern marketing calls for more than developing a good
product, pricing, of attractively and making it accessible companies must also communicate with
present and potential stakeholders as well as the general public for most companies the question
is not whether to communicate but rather what to say, to whom, and how often.
2.3.5.1. Promotional mixes
Each promotional tool has its own unique characteristics and costs. These strategies may be
designed around advertising personal selling sales promotion and publicity.
A. Advertising strategy
Advertising is any paid from of non-personal presentation and promotion of ideas goods or
services by an identified sponsor advertising can reach geographically dispersed buyers
efficiently certain forms of advertising (TV advertising) typically require a large budget.
Whereas other forms (news paper advertising) can be done and small budget in developing
an advertising program successful firm’s start by identifying the target market and buyer
motives. Then they can make five critical decisions known as the fives.
Mission: What are the advertising objectives?
Money: How much can be spent?
Message: What message should be sent?
Media: What media should be used?
Measurement: how should be the results is evaluates.
B. Sales promotion strategy
Sales promotion a key ingredient in many marketing companies consist of adverse collection
of incentive tools, mostly short term, designed to stimulate trail or quicker or greater
purchase of particular products or services by consumers of the trade. Whereas Advertising
offers as reason to buy sales promotion offers an incentive to buy. Sales promotion includes
tools for consumer promotion (samples, coupons cash refund offers, prices off, premiums,
prizes patronage, rewarded free trails warranties ,fie in promotions cross promotions point of
purchase displays and demonstration ) and business and advertising and display allowances
and free goods a trade shows and conventions, contents for sales reps and specially
advertising sales promotion offer three distinctive benefits (1) communication (they gain
attention and usually provide information that may lead the consumer to the product..(2)
incentive (they incorporate some concession or inducement that gives value to the consumers
and (3) invitation (they include a distinct invitation to engage in the transaction now) sales
promotion can be used for short run effects such as dramatizing product offers and boosting
sales (Ranch hold and Guru, 2007).
C. public relations strategy
Not only must the company related constructively to customers suppliers and dealers but it
must also related to a large number of interested publics A public is any group that has an
actual or potential interest in or impact on a company’s ability to achieve its objectives.
Public relation involves a Varity of programs that are designed to promote or protect a
company’s image or its individual products. The wide company takes can Crete steps to
mange successful reactions with its key publics.
The appeal of public relations and publicity is based on three instinctive qualities (1) high
credibility (news stories and features are more authentic and credible than advertising) (2)
ability.
To catch buyers off guard (reach prospects who prefer to avoid sales people and
advertisements) and (3) dramatization the potential for dramatizing a company or products).
D. Personal selling strategy
Personal selling is a key element in promotion one of the four ps in marketing mixes,
personal selling has three distinctive qualities, (1) personal confrontation (it involves an
immediate and interactive relationship between two or more persons) (2) cultivation it
permits all kinds of relationships to spring up ranging from a matter of fact selling
relationship to a deep personal friendship and (3) response (it makes the buyers feel under
some obligation for having listened to the sales talk). Sales people perform one or more
of the following task prospecting, targeting communicating and selling approaching
service information. Allocating (plilip &Garry 2007). Personal selling is face to face
interaction with one or more prospective purchases for the purpose of malign presentation
answering questions and procuring orders.
2.3.6. Distribution strategies
Distribution strategies are concerned with the channels a firm may employ to make its goods and
services available to customers, decisions about marketing channels which help rousers deliver
goods and services to their target markets are among the most critical facing management
because the channels that are chosen intimately affect all of the other marketing decisions for
exempla the company pricing depends on whether it use adroit web presence discount merchants
of high quality, in addition. The firm’s sales force and advertised decisions depend on how much
training and motivation its dealers need.
Another reason why these decisions are so critical is that they involve relatively long term
commitments to other firms. In an when buyers and sellers a like seek speedier sales transaction
marketing channel technologies (including automated inventory and sore age system) and the
internet are addition valued by expediting the flow of physical goods ownership payment
information and promoting (Rayport and survoicka , 1994).
Types of utility distribution offers:
Time …when the customers want to purchase the product.
Place…when the customers what to purchase the product.
possession….facilitates customer ownership of the product
from… sometimes it changes have been made to the product in the distribution channel
Each channel member has different responsibilities within the overall structure on the
distribution of the system, mutual profit (success is obtained though cooperation.
The distribution system.
- Determines a product marketing presence and the buyers’ accessibility to the
product.
- Entail a long term commitment, easier to change other inspects of the marketing
mix.
2.3.6.1. Functions of intermediaries
The primary role of middle men is transform the assortment of products made by producers in
the assortments desired by consumers want brad assortments in small quantitative by narrow
predict mixes other functions of intermediates include. Assuming risk provide working capital by
paying for goods before they are sold information flow financial payment and title flow.
Negotiation contacts and promotion producer will use and intermediary when it believes that the
intermediary can performance the functions more economically and efficiently thing it can. “You
can laminate the middle man but you can’t eliminate their functions” down accepted maxim in
marketing (Littler and Wilson 1995).
2.3.6.2. Channel conflict
Channel members may disagree on the best methods to attain goals. When individual short run
goals are not compatible can occur between frisk at the same level or between firms at different
levels, wants to maximize profits and auto many channel members belong to different channel
system. Creating potential conflict producers may try to circumvent intermediates.
2.3.6.3. Types of channel of distribution
Channels for consumer products ice vertical dimensions determined by the number in the
channel.
Channel A:
Producer consumer Ice door to door purchases unsought products example Encyclopedias.
Techno local development is making the direct channel more common TV home shopping CDs
catalogs internet and www.
Channel B
Producer retailer consumer
Range retailers no discrepancy in quantity supplied and demanded popular for shopping,
products, clothing, Automobiles cost of transportation and inventory is high.
Channel C.
Producer Whole seller Retailer consumer
Smaller retailers, widely distributed products convenience products
Channel D
Producer agent Whole seller Retailer consumer
Mass distribution Ice processed food also when there are a number of small products etc, it may
be the most efficient distribution channels for consumer products and convenience products
(philp and Garry 2007).
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research design
Research design is the plan and structure of investigation so conceived as to obtain answers to
reach questions. The plan is the overall scheme or program of the research.
The study is considered as descriptive type of research design will be appealed and in order to
describe all existing in simple and understanding way. Summary statics or visual i.e. simple to
understand graphs because this type of study will be designed help to the researchers to deeply
assess 4ps of marketing mix strategies
3.2 Target population
The target population for this study is the student and employee of Furra College.
3.3 Sampling size and Techniques
This study will use probability sampling because the population is known. In addition to this the
researcher will use simple random sampling techniques.
Currently 329 employee and 780 students in Furra College. The researcher will use probability
simple random sampling method for employee and students Because the target population
of the study are homogeneous and among the advantages of simple random sampling method
each elements in the target population have equal chance of being selected to do a simple size.
Due to time and cost constraint the researcher will take 76 employee 88 students in the
organization. The researcher will use the following formula to calculate sample size from
employee and students by simple random sampling method of the organization [yemaea]
To calculate sample size from employee
Using 90% confidence and 0.1 sample error
n=N/1+N (e) 2
Where; N=total population
n=sample size
e=sample error
n=329/1+329(0.1)2
=76
To calculate sample size from students
n=780/1+780(0.1)2 = 88
In this case of probability sampling technique or simple random sampling, there is no zero
chance for each item in the population to be selected (David J Roland, 2005)
The researcher will use probabilistic sampling because when the target population is
homogeneous and well known there is probability that all population to become a respondent to
draw a sample using probabilistic sampling to differentiate those employee and students .Those
who are willing and to able to give the right and proper information for the study. And those of
many probabilistic sampling the researcher will select simple random sampling. Because in
simple random sampling method the target population will have equal chance (50%) in order to
reduce personal bias(error),it is simple it provide appropriate data to research and it requires
minimum knowledge of population observation the sample size.furra college currently manage
780 students and 329 employee. The sample frame of this study 88and 78 within the target
population students and employee, the researcher will use 90% confidential level and 1o% error
to this study, because doing research is getting the optimal solution for once problem this mean
not the final solution due to this expected same error to minimize the sample population and also
when the sample error is very small the error the research is high.
3.4 Types of Data and Source of data
This study will use both quantitative and qualitative data type .In addition to this the researcher
will use both primary and secondary data sources. The primary source includes questionnaires
(close ended and open ended questionnaires). The secondary data will includes books, internet
and documents factory report manual.
3.5 Methods of data collection
The research will be collected through primary data from customers or students using close
ended questionnaire. The secondary data will also be used from different reference books, and
written documents.
3.6 Data analysis techniques
After the data is collected and edited, the researcher will use tables to present the data and
analyzed through frequency and percentage.
3.7 BUDGET BREAKDOWN & TIME SCHEDULE
TIME SCHEDULE
Time Schedule is nothing but it shows the time required for each steps of Activity.
Then the researcher will proposed the following time activities.
Time schedule table
No Description Sep Oct Nov Dec January Feb March April May June
1 Design proposal
2 Literature
3 Proposal writing
4 Contact to my advisor
5 Data collection
6 Processing & analysis
7 Finalizing and
presentation
BUDGET BREAKDOWN
In this part the researcher will insure different cost for each activity as explained
below.
BUDGET COST TABEL
The following table shows allocation of budgeting study period
Description Unit Total Unit priceTotal cost
No A stationery materials Quantity Birr Cent Birr Cent
1 Paper packet 1 120 00 120 00
2 Pen Number 4 4 00 16 00
3 Pencil Number 1 1 00 1 00
4 Internet service Hour 10 12 00 120 00
5 Writing proposal Page 14 6 00 84 00
6 Writing the whole Research Page 50 5 00 250 00
7 Printing Page 50 2 00 100 00
8 Copy Page 100 1 00 100 00
9 C D – RW Number 1 20 00 20 00
10 Binding Number 3 30 00 90 00
11 Transport cost One way 6 10 00 60 00
Total cost 961 00
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Tedor Berhe, Head of Export marketing 2017
www.wikpeida.or.Aprile 5(2017) time of 2:30