Description
What constitutes a small business varies widely around the world. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships.
Research Project on Small Business Product Promotion
Executive Summary
The purpose of this investigation was to conduct, analyse and interpret research on behalf of a local business, in this case on behalf of local Lochaber business, ABC Organisation, which has been in operation since 1997, and to make recommendations based on those findings.
The sponsoring organisation recognised the need for a rethink of their own promotional practices, and this research report investigated the theory behind the practice of small business product/service promotion and the sponsor’s own product promotions efforts. Initially this relied on the evaluation of secondary sources such as journals and text books, and then used a quantitative primary data approach using a structured questionnairebased survey to gather data from existing clients of the business. The research took place over the winter from January to April 20XX with the main outcome being to identify and propose effective product/service promotion techniques that could be used by a small business such as this one to attract new customers and at the same time retain existing ones.
This report provided the sponsor with a clearer understanding of its promotional standing. The main findings were that the provision of a number of new services had gone unnoticed by customers; that the tracking of campaign effectiveness was essential; that customers were only loyal so long as all their hair & beauty requirements were being met; and that their promotional activities were not achieving the expected outcomes.
Based on the findings of both secondary and primary research recommendations were made to the sponsor on how best to proceed with future promotional activity. In order to improve promotional effectiveness, increase product and service awareness, and ultimately improve profitability the main priority was the development of a plan of action – identifying the need for all components of the promotional mix to work towards goals and objectives clearly defined by the organisation in order to maximise their effectiveness.
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Specifically this will require them to gear promotional activities towards stimulating sales by increasing awareness amongst both new and existing customers encouraging first-time and repeat purchases. Proposed promotional activities include the promotion of products and services on the sponsor’s refurbished website, the improvement of current local magazine advertorial promotions, as well as the establishment of a Facebook and/or Twitter as an effective tool for the promotion of product and service offerings.
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Contents Page
Section
Page
Executive Summary 1. Introduction 2. Methodology 3. Literature Review 4. (Initial) Data Analysis and Presentation 5. Critical Interpretation of Data 6. Conclusions 7. Recommendations References
i 1 2 4 7 10 13 14 16
Figures Figure 4.1 – How long have you been visiting ABC Organisation? Figure 4.2 – Do you visit other hair & beauty establishments in the Lochaber area? Figure 4.3 – How likely would you be to purchase hair & beauty products online? Figure 4.4 – How likely would you be to purchase hair & beauty services online? Figure 4.5 – Which of the following ABC Organisation products/services are you aware of? Figure 4.6 – Rating of promotional tools in terms of influence on overall purchasing decisions? Figure 5.1 – Product knowledge vs. length of patronage Figure 5.2 – Product knowledge of those who do remember reading about ABC Organisation in the IMAG 11 Figure 5.3 – Product knowledge of those who do not remember reading about ABC Organisation in the IMAG Figure 5.4 – Product knowledge of customers whose needs are not fully met by ABC Organisation 11 12 7 7 8 8 9 9 10
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Appendices Appendix A – REC1a Research Ethics Form Appendix B – ABC Organisation Questionnaire Appendix C – Frequency Tables Appendix D – Cross Tabulations
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1. 1.1
Introduction Overview
The project sponsor, ABC Organisation has been in operation since 19XX. The business has diversified over the years from offering hair and beauty products/services, to now offering ancillary services such as hypnotherapy and teeth whitening. This local business hopes to grow through the provision of these additional offerings, however their current challenge and reason for the commissioning of this research project is the undertaking of efficient and effective product promotion in order to increase product and service awareness. 1.2 Justification
Characteristic of many small businesses, the sponsor has invested a substantial amount of time and money in setting up these additional service and product offerings, but due to poor promotions planning have failed to attract the desired response. Despite a strong client base and prime location, the provision of services such as teeth whitening and hypnotherapy has gone largely unnoticed by both new and existing customers. 1.3 Aim and Objectives
The overall purpose of this research report is to establish effective product promotion techniques that can be used by small businesses to both attract new customers and retain existing ones. In order to meet the overall research aim, the specific research objectives were to: ? ? ? ? identify common product promotion mistakes made by small businesses identify effective techniques for small business product promotion evaluate the sponsors current promotional efforts by surveying new and existing customers to recommend to the sponsor the way forward in terms of product promotions practice
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2.
Methodology
The overall research aim was the evaluation of the promotion mix as a tool for customer acquisition and retention. Secondary research involved a review of relevant literature, while primary research was conducted through a quantitative study into customer perceptions of promotion. As both Kumar (2005) and The University of Maryland (2006) explain, secondary research involves the use of existing data which has come about as a result of previous research and is therefore subject to validity and reliability issues. Secondary sources such as textbooks, reference materials, newspapers, web resources and journals such as The Journal of Consumer Marketing and Business Horizons were consulted in line with secondary research objectives (Saunders, Lewis and Thornhill 2007), which were to establish common mistakes made by small businesses when conducting promotions, and to identify and evaluate effective promotional techniques. Primary research was conducted in line with the ‘UHI Code of Practice for Research Involving Human Participants’ (Appendix A) and in line with the overall research aim and objectives which were to evaluate the sponsor’s current promotional efforts in the eyes of their existing and new customers, while at the same time identifying to the sponsor the way forward in terms of effective promotional planning. Following pilot testing a structured quantitative questionnaire-based survey (Appendix B) was administered to respondents; the questionnaire was pre-printed, consisted of closed questions such as dichotomous, multiple choice and ordinal scale questions for ease of analysis and was administered to respondents in a controlled environment over a one week period. A self-administered questionnaire was chosen over other approaches such as interviews, focus groups and consumer panels, due to ease of analysis and the structure of the information gathering process (Blumberg, Cooper and Schindler 2005). The survey was based on a convenience (non-probability) sample of 70 new and existing ABC Organisation customers. As Saunders, Lewis and Thornhill (2007) identify, a convenience sample involves simply selecting participants on the basis of convenience, accessibility, and expediency until the sample size has been reached for research purposes it is assumed that the sample population was representative of the population as a whole and was devised based on historical revenue data: for example with an average of 7.5% of weekly business taking place on a Monday, 7.5% of respondents were chosen to participate in the research based conveniently on their presence in the establishment on the day.
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The survey consisted of 22 data and statistical analysis questions with the purpose of gaining the respondents’ views on promotion, evaluating the sponsor’s current promotional efforts and identifying other areas of statistical interest to the organisation. Following the completion of all surveys, the pre-coded research data was analysed using the SPSS statistical analysis software. Results were presented graphically using frequency tables and histograms, while correlations of various results were tested and analysed using ANOVA (analysis of variance) techniques such as Spearman’s Rank Correlation which identifies links between independent variables (Ott and Longnecker 2010), a detailed analysis of the results of this study are included in the ‘critical interpretation of data’ section.
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3.
Literature Review
Promotion refers to the process of communicating with consumers, in an attempt to influence a favourable purchasing decision (Institute of Sales Promotion 2010). As Vignali (2001) suggests promotion is one of the core components of the marketing mix and as a result has a major impact on market success. The Chartered Institute of Marketing (2009) look at promotion in terms of the promotional mix – described as a set of techniques available to a business in order to facilitate the effective communication of product or service benefits to existing and prospective customers. Jobber (2001) and Baker (2003) identify advertising, personal selling, public relations, direct marketing and sales promotion as core components of the promotional mix together with in more recent years the internet and online promotion. Blythe (2001) emphasises the importance of the word ‘mix’ when developing a promotional strategy, proposing that a successful and efficient campaign will be made up of several if not all components of the promotional mix all working towards common aims and objectives, which as Fill (2006), Blythe and Rowley (1998) identify could be in the short-term, to drive sales or counter the promotional efforts of competitors, or in the long run to maintain or improve market share. Marketing practitioners commonly distinguish between ‘above’ or ‘below’ the line promotion, with advertising lying above and all other components lying below. Baker explains that short-term promotional objectives are achieved below the line, while long-term brand building requires extensive and costly action above-the-line. The promotional mix involves a mixture of promotional techniques, the composition of which Longenecker (2009) and Mercer (1996) advise is determined by aspects such as the geographical character of the target market and the characteristics or complexity of the product/service offering itself. In order to be effective the small business owner must identify the optimal mix of promotional techniques that will reach the target market, and then allocate financial resources accordingly. Advertising is arguably one of the most effective promotional techniques, with its objective being to evoke a purchasing decision or to at least generate product enquiries, through non-personal communication through a paidfor mass medium (Brassington and Pettitt 2006). Kotler et al. (2008) believe personal selling, although the most costly to use, the most effective promotional tool, citing its ability to foster relationships between sales personnel and consumers as unique and effective. With its role of promoting goodwill between a business and its stakeholders, public relations as a component of the promotional mix should not be overlooked (O’Guinn, Allen and Semenik 2009). Jobber identifies the role of direct marketing in promotion, describing how tools such as direct mail and door-to-door leafleting aim to acquire and retain consumers by communicating with them not through an intermediary but directly. Unlike other forms of marketing communication, an immediate response is usually warranted allowing the effectiveness of the campaign to be quickly and efficiently assessed.
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Sales promotions on the other hand are marketing communications efforts that affect the price/value relationship of a product/service offering, and thereby generate immediate sales and have a substantial impact on brand value (Schultz, Robinson and Petrison 1998). Kurtz, Mackenzie and Snow (2009) outline the basic aim of sales promotion as being the encouragement of current customers through rewards to make a repurchase, increasing sales of complementary products and at the same time attracting consumer attention. Business Link (2009) and Fill (2006) explain the growth of the use of the internet for sales promotional efforts, with research finding online promotions to achieve on average three to five times more responses than direct mail, through the use of ecoupons, SMS promotions and viral campaigns. Chaston (2000) goes as far as describing the internet and its role in the promotional mix as a small business owners ‘dream’, unable to identify any other promotiona l technique as effective - a promotional platform where a business can communicate with customers anywhere around the world at anytime of the day, and at the same time have the ability to instantly communicate changes of price or product offering through inexpensive messages to all consumers simultaneously. Along with this, the emergences of online social media networks have made mass communication between business and consumer accessible to all businesses, so much so that social media is argued to be a hybrid element of the promotional mix (Mangold and Faulds 2009). The promotional efforts of many small businesses including the project sponsor fall short of requirement through committing common promotional mistakes. A haphazard promotions strategy is probably the most common mistake, while underestimating the costs involved in promotion or relying entirely on paid advertisements can seriously affect the outcome of a campaign (Sugars 2006). Failing to track the effectiveness of a promotional activity and communicating an ambiguous promotional message is according to McMurtry (2003) the most costly promotional mistake. McMurtry outlines several other reasons for promotions failing, stating that failed promotions are generally: egocentric; overreaching; void of ownership; and budget-oriented. Roylance (2006) and Bangs (2002) confirm that there is no point undertaking promotional activity unless the promotional objectives are clearly identified, the message tested and a means for establishment of success identified, both advise of the difficulty of undoing these mistakes. Business Gateway (2009) and Brassington and Pettitt (2006) emphasise the importance of effective promotions planning, explaining how developing an efficient and effective, fully integrated and consistent approach helps turn customer interest into sales. With small business generally characterised by limited financial means, making poor promotional decisions carries with it substantial financial risk (Chaston and Mangles 2002). A point shared by Kurtz, Mackenzie and Snow (2009) and Lam et al (2001) who agree that the effectiveness of all promotional activities must be measured and evaluated in order to fully benefit from the promotional investment made.
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Successful promotion is generally accepted to come about following several key steps; Lake (2010), Petit and McEnally (1985), and Dunne and Lusch (2008) all outline between them a five to seven step process for the development of an effective promotional campaign; starting with the assessment of marketing communication opportunities and the determination of promotional objectives, before leading to aspects relating to the promotional message itself and finally progressing to the determination of the campaigns effectiveness. Barrow et al. (2008) and Shimp (2007) confirm that this latter element must be carried out if the desired outcomes are to be achieved. The issue of campaign effectiveness is one the project sponsor is keen to address through the primary research, which will seek to evaluate the use of the business’s current promotional mix in order to ascertain its effectiveness as both a tool for customer retention and new product promotion.
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4.
(Initial) Data Analysis and Presentation
An initial analysis of the data obtained from the primary research (questionnaire-based survey) was conducted using SPSS with individual results being presented using frequency tables (Appendix C). The initial findings offered some interesting insight into the effectiveness of the sponsor’s current promotional efforts and are detailed below. Figure 4.1 How long have you been visiting ABC Organisation?
0 -3 months 4 -7 months 8 - 11 months 12 months and over
It is interesting to note that although 80% of respondents had been visiting ABC Organisation for over 8 months and would therefore be expected to have a good knowledge of the business and its product/service offerings nearly half looked to other establishments in order to meet all their hair and beauty requirements, while over 60% of respondents confessed to purchasing hair and beauty products from other establishments. Figure 4.2 Do you visit other hair & beauty establishments in the Lochaber area?
56 54 52 50 48 46 44 42 40 yes no
In response to the questions on consumer shopping habits, the majority of respondents who on average did most of their day-to-day purchasing offline indicated a lack of interest in the online provision of hair and beauty products/services with most respondents (48.6% for products and 68.6% for services) indicating that they would be very unlikely to purchase hair and beauty online, it is also interesting to note that 82.9% of respondents had never
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visited the sponsors website and after being made aware of the sites existence 45.7% of respondents indicated they still had no interest in visiting. Figure 4.3 How likely would you be to purchase hair & beauty products online?
50 40 30 20 10 0
Figure 4.4 How likely would you be to purchase hair & beauty services online?
70 60 50 40 30 20 10 0
Further evaluating the promotional efforts of the sponsor, the respondents were tested on their knowledge of products and services offered by the business. The results were surprising to the sponsor as a large amount of information on products and services is available on the sponsor’s website as well as within their monthly IMAG magazine advertorial. Of the 68.6% of respondents who read the IMAG magazine only 66.7% remembered reading the advertorial which is an important promotional source for the business. Looking at the results presented in figure 4.5 it is clear to see a major issue for the business is the creation of product awareness as many of the businesses products and services have gone largely unnoticed by customers.
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Figure 4.5 Which of the following ABC Organisation products/services are you aware of?
Hypnotherapy Teeth Whitening Bridal Hair Dermalogica Facials Micro-dermabrasion St Tropez Tanning 0 20 40 60 80 100 Yes No
In order to identify to the sponsor the way forward in terms of effective product promotion respondents were asked to rate various promotional tools in terms of their influence on purchasing decisions. The results presented below identify free samples and product vouchers as the most effective ways to influence a purchase decision. Figure 4.6 Rating of promotional tools in terms of influence on overall purchasing decisions?
50 45 40 35 30 25 20 15 10 5 0
no influence at all little influence neutral some influence a substantial influence
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5.
Critical Interpretation of Data
The initial analysis of research data was followed by further analysis seeking to identify important relationships between results such as the testing of whether customers who had been visiting ABC Organisation for longer knew more about their products and services. The results below reveal how the provision of some products and services are noticed by some customers more than others - while 94.3% of respondents did not know about the provision of hypnotherapy 77.1% of respondents did know about Dermalogica facials. Looking at the cross tabulations (Appendix D) and using Pearson’s Chi Squared test it is established that there is no direct correlation between the two variables i.e. the customers product knowledge is not influenced significantly by their length of patronage but rather by other aspects such as the promotion of the products/services themselves. Figure 5.1 Product knowledge vs. length of patronage
Teeth Hypnotherap Whitening y Bridal Hair No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) 0.0 20.0 40.0 60.0 80.0 12 months and over 8 - 11 months 4 -7 months 0-3 months
St Tropez MicroDermalogica Tanning dermabrasion Facials
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Further evaluating the sponsor’s product promotions efforts, the level of influence of the sponsors website and advertorials in the local Fort William advertiser the IMAG are investigated. With 82.9% of respondents never having visited the website its influence on overall customer product knowledge and purchasing was deemed to be self explanatory and was not analysed. With 51.4% of respondents having read the IMAG and remembered reading the ABC Organisation advertorial it was expected that product/service knowledge amongst these individuals would be high, however looking at the results below it is interesting to note that the respondents who did not remember reading the IMAG advertorial had more product knowledge than those who did remember reading it, identifying an issue with the effectiveness of this promotional technique.
Figure 5.2 Product knowledge of those who do remember reading about ABC Organisation in the IMAG
70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) St Tropez Tanning MicroDermalogica dermabrasion Facials Bridal Hair Teeth Whitening Hypnotherapy
Figure 5.3 Product knowledge of those who do not remember reading about ABC Organisation in the IMAG
30.0 25.0 20.0 15.0 10.0 5.0 0.0 Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) St Tropez Tanning MicroDermalogica dermabrasion Facials Bridal Hair Teeth Whitening Hypnotherapy
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An analysis was conducted in order to establish the relationship between salon loyalty and product/service knowledge i.e. if those who knew about the products and services offered still visited other establishments or if customers look to other establishments believing that ABC Organisation do not meet all their requirements. The results indicate that many customers who looked to other establishments were unaware of the provision of services such as micro-dermabrasion, bridal hair, hypnotherapy and even to an extent St Tropez tanning. Figure 5.4 Product knowledge of customers whose needs are not fully met by ABC Organisation
40.0 30.0 20.0 10.0 0.0 Yes No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) St Tropez Tanning (%) No (%) Micro-dermabrasion Dermalogica Facials Bridal Hair
Yes (%)
No (%)
Yes (%)
No (%)
Teeth Whitening Hypnotherapy
The findings of the primary research are supported by the review of secondary literature which states how in order for a product promotions campaign to be effective the optimal mix of techniques must be identified. A haphazard, unplanned approach to product promotion will not have the desired outcome. The internet is identified as a small business product promotions ‘dream’, however in order for it to be a successful medium for product promotion the business’s online presence needs to be promoted in order to achieve a click through rate of any significance.
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6.
Conclusion
An investigation into the theory of product promotion was conducted with the basic goal of identifying common promotional mistakes and identifying the effectiveness of promotional techniques at the business’s disposal. The main findings of the secondary research are summarised below: ? ? ? ? Roylance (2006) and Bangs (2002) state there is no point undertaking unplanned, haphazard, untracked promotional activities (p5, para 2) McMurtry (2003) finds failing to track promotional effectiveness a common and costly mistake (p5, para 2) Blythe (2001) emphasizes how components of promotional campaign must work towards common aims and objectives (p4, para 1) Kurtz, Mackenzie and Snow (2009) outline the encouragement of existing customers to make a repurchase and the influencing of new customers to make an initial purchase as the basic aim of sales promotion (p5, para 1) Through primary research the sponsors’ promotional efforts were evaluated in terms of their effectiveness as a tool for the acquisition and retention of customers. The main findings of the primary research are summarised below: ? ? ? ? ? ? ? 60% of respondents were not loyal customers (p7, para 2) 48.6% of respondents indicated they would not purchase products online, 68.6% indicated they would not purchase services online (p7, para 3) 58% of respondents had never visited the sponsors website, 45.7% said they had no interest in ever visiting (p7, para 3) major issue for business is product awareness as provision of some products/services have gone unnoticed e.g. 94.3% of respondents unaware of hypnotherapy service (p10, para 1) free samples/vouchers identified as most influential promotional tools (p9, para 1) effectiveness of IMAG questioned as readers had less product knowledge than non-readers (p11, para 1) customers who frequented other establishments were unaware of provision of services such as microdermabrasion, St Tropez tanning, and hypnotherapy – indicating a loss of potential revenue to competitors (p12, para 2) The findings of this report provide the sponsor with a clearer understanding of its current promotional situation allowing them to make improvements in terms of promotional effectiveness.
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7.
Recommendations
Drawing on the findings of both secondary and primary research the following recommendations are made to the sponsor. By putting these recommendations into practice the promotional efforts of the sponsor will start to become more integrated and effective in terms of cost minimisation, product and service awareness building, and profit making. 7.1 Recommendation One
The main priority is the development of a plan of action in terms of future promotional activity. All components of the promotional campaign must work towards a clearly defined set of goals and objectives and must be properly targeted in order to ensure maximum effectiveness with regards to customer acquisition and retention. 7.2 Recommendation Two
The next issue for the company to address is that of potential loss of business to competitors, the knowledge that customers, unaware of the full range of products/services offered are looking to competitors to fulfil some of their hair & beauty requirements demonstrates the current lack of promotional effectiveness. Promotional activities must be geared towards stimulating sales by increasing awareness amongst both new and existing customers. 7.3 Recommendation Three
The organisation is currently performing a refurbishment of its website in order to increase its functionality as a business tool and its effectiveness as a promotional tool. A priority with regards to the promotion of products/service online is the effective targeting of customers, remembering that 45.7% of respondents said they had no interest in ever visiting the website. Customers need to be made more aware of the website for it to be effective, thus the website must be promoted at every opportunity. The website offers the business an opportunity for cross promotion with local businesses such as hotels and B+B’s or even with suppliers. 7.4 Recommendation Four
The IMAG advertorial is a good form of product promotion, however as a priority it’s following needs to be extended and its effectiveness tracked. Copies of the advertorial could be e-mailed to customers as well as being placed on the business’s website. A money-off voucher /promotional code should be placed within the advertorial enticing customers to act on the promotional message; this would also allow the sponsor to track promotional effectiveness.
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7.5
Recommendation Five
The establishment of a Facebook/Twitter page could also be useful as it would provide customers with a platform for word-of-mouth referral, while providing the business with the opportunity to gain invaluable customer feedback as well as allowing the business to communicate promotions more effectively and efficiently.
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References
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Kotler, P., Armstrong, G., Wong, V., and Saunders, J. (2008) 5th Edn. Principles of Marketing. Essex: Pearson Education Limited. Kumar, R. (2005) Research Methodology: A Step-by-Step Guide for Beginners. London: SAGE Publications Ltd. Kurtz, D.L., MacKenzie, H.F., and Snow, K. (2009) Contemporary Marketing. Mason: South-Western Cengage Learning Lake, L. (2010) 7 Steps to Planning a Productive and Successful Promotional Campaign. [online] available from <http://marketing.about.com/od/positioning/a/promocampaign.htm> [7 February 2010] Lam, S.Y., Vandenbosch, M., Hulland, J. And Pearce, M. (2001) ‘Evaluating Promotions in Shopping Environments: Decomposing Sales Response into Attraction, Conversion, and Spending Effects’, Marketing Science, 20 (2), PP. 194-215 JSTOR [online] available from <http://www.jstor.org.eor.uhi.ac.uk/stable/3181636?&Search=yes&term=product&term=evaluating&term=promotion &term=promotions&term=effects&term=mix&list=hide&searchUri=%2Faction%2FdoAdvancedSearch%3Fq0%3Dpr oduct%2Bpromotion%26f0%3Dall%26c0%3DAND%26q1%3Dthe%2Bpromotions%2Bmix%26f1%3Dall%26c1%3 DAND%26q2%3Devaluating%2Bthe%2Beffects%2Bof%2Bproduct%2Bpromotion%26f2%3Dall%26c2%3DAND% 26q3%3D%26f3%3Dall%26wc%3Don%26sd%3D2000%26ed%3D2010%26la%3Deng%26jo%3D%26Search%3D Search&item=4&ttl=100&returnArticleService=showArticle> [10 February 2010] Longenecker, J.G. (2009) Small Business Management: Launching and Managing New Ventures. Florence: Cengage Learning Inc Mangold, W.G. and Faulds, D.J. (2009) ‘Social media: The new hybrid element of the promotion mix’, Business Horizons, 52 (4), PP. 357-365 EconPapers [online] available from <http://econpapers.repec.org/article/eeebushor/v_3a52_3ay_3a2009_3ai_3a4_3ap_3a357-365.htm> [13 February 2010] McMurtry, J.M. (2003) Big Business Marketing for Small Business Budgets. New York: McGraw-Hill. Mercer, D. (1996) 2nd Edn. Marketing. Oxford: Blackwell Publishers Inc. O’Guinn, T.C., Allen, C.T, and Semenik, R.J. (2009) Advertising and Integrated Brand Promotion. Mason: SouthWestern Cengage Learning
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Ott, R.L. and Longnecker, M. (2010) 6th Edn. An Introduction to Statistical Methods and Data Analysis. Belmont: Brooks/Cole Petit, A.T and McEnally, M.R. (1985) ‘Putting Strategy into Promotion Mix Decisions’, Journal of Consumer Marketing, 2 (1), PP. 41-47. Emerald Insight [online] available from <http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/Emer aldFullTextArticle/Pdf/0770020104.pdf> [1 March 2010] Roylance, D. (2006) Purchasing Performance: Measuring, Marketing, and Selling the Purchasing Function. Hampshire: Gower Publishing Limited Rowley, J. (1998) ‘Promotion and Marketing Communications in the Information Marketplace’, Library Review, 47 (8) PP. 383 – 387. Emerald Insight [online] available from <http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=B4439D4C56BB47EF107BBC33146A3508 ?contentType=Article&contentId=859538> [28 February 2010] Saunders, M., Lewis, P., and Thornhill, A. (2007) 4th Edn. Research Methods for Business Students. England: Pearson Education Limited Shimp, T.A. (2007) Advertising Promotion, and Other Aspects of Integrated Marketing Communications. Mason: South-Western Cengage Learning Sugars, B.J. (2006) Instant Promotions. New York: McGraw-Hill The Chartered Institute of Marketing (2009) How to Achieve an Effective Promotional Mix. [online] available from <http://www.cim.co.uk/filestore/resources/10minguides/promotionalmix.pdf> [14 November 2009] The University of Maryland (2006) Primary, Secondary and Tertiary Sources. [online] available from <http://www.lib.umd.edu/guides/primary-sources.html> [10 March 2010] Vignali, C. (2001) ‘Kellogg’s – Internationalisation Versus Globalisation of the Marketing Mix’, British Food Journal, 103 (2) PP. 112 – 130. Emerald Insight [online] available from <http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=38D814B8C7BA7AF3B021B4AB5AD5353 6?contentType=Article&contentId=870578> [18 March 2010]
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Appendices
Section
Page
Appendix A – REC1a Research Ethics Form
i
Appendix B – ABC Organisation Questionnaire
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Appendix C – Frequency Tables
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Appendix D – Cross Tabulations
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REC1a - Application for Ethical Approval - UHI Student Projects All undergraduate, taught postgraduate and research students registered on any UHI programme undertaking a research project involving human participants must have their research approved by their project supervisor prior to undertaking any form of fieldwork or data collection exercise. The Research Ethics Committee largely delegates responsibility for ethical approval to the student’s project supervisors, whom are responsible for exercising appropriate professional judgement in this review. Before completing this form (REC1a), please read the UHI Code of Practice for Research Involving Human Participants. The checklist overleaf has been designed to identify any potential ethical issues in the research. Once completed, submit the form to your project supervisor for ethical approval. If ethical issues are identified, applicants will be need to complete the REC2a form and submit this through their supervisor to the Research Ethics Committee for scrutiny. Further information on the research ethics policy and approval process is located on the UHI website at www.uhi.ac.uk/research.ethics ----------------------------------------------------------------Name of Student (applicant) REMOVED FOR ANONYMITY Status Undergraduate (Undergrad/Postgrad/Research) Email address: REMOVED FOR ANONYMITY Contact Address REMOVED FOR ANONYMITY Telephone number: Project Title REMOVED FOR ANONYMITY
An Investigation into Effective Small Business Product Promotion Module Name and Number Research Skills + Project – UN108427 To be completed by Project Supervisor Name of Supervisor Sandra Chache Supervisor’s Email address [email protected] Yes Yes Yes Yes Yes The student has read the UHI Code of Practice The topic merits further research The student has the skills to carry out the research The participant information sheet or leaflet is appropriate The procedures for recruitment and obtaining informed consent are appropriate Project Supervisor’s Comments - ‘Approved’ I am satisfied that this candidate will encounter minimum risk related to the primary research approach identified. The primary research methodology involves a quantitative approach, using a structured questionnaire, which will be applied on a personal basis to clients of the business. There is a small chance that some participants in the survey may fall into the category of those who are elderly, disabled, or those with incapacity; there is a chance that some respondents will be members of an ethnic minority, living or working within the area; there is a chance that, for some respondents, the English language may not be their first language. However I believe this does not constitute a risk that needs to be managed under the auspices of the Research Ethics Committee.
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Research Ethics Checklist Please answer each question by circling either YES or NO No 1 Will the study involve participants who are particularly vulnerable or unable to give informed consent (e.g. children, students, people with learning disabilities, etc.)? Will the study involve participants under the age of 16? Will any of the participants be elderly, disabled, or those with incapacity? Will any of the participants be members of ethnic minorities? Will any of the interviews or questioning of participants be conducted in a language other than the respondent ‘s first language? Will the study require the co-operation of a gatekeeper for initial access to the groups or individuals to be recruited? (e.g. school students, members of self-help group, residents of nursing home) Will it be necessary for participants to take part in the study without their knowledge/consent at the time? (e.g. covert observation of people in non-public places) Will the study involve discussion of topics, which the participants would find sensitive (e.g. sexual activity, own drug use)? Are drugs, placebos or other substances (e.g. food substances, vitamins) to be administered to the study participants? Will the study involve invasive, intrusive or potentially harmful procedures? Will blood or tissue samples be obtained from participants? Is pain or more than mild discomfort likely to result from the study? Could the study induce psychological stress or anxiety, or cause harm or negative consequences beyond the risks encountered in everyday life? Will the study involve prolonged or repetitive testing? Will financial inducements (other than reasonable expenses and compensation for time) be offered to participants? Will the study involve recruitment of patients or staff through the NHS? No Yes Possibly for survey Yes Possibly for survey Yes possibly for survey Yes – the business owner No No No No No No No No No No
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
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If you answered NO to all 16 questions, the signed and completed form should be submitted to the UHI Research Ethics Officer for their records. All students should retain a copy of the form and submit it with their research report or dissertation (bound in at the beginning). Work that is submitted without this form will be returned unassessed.
If you answered YES to any of the questions, you will need to complete a REC2a and describe more fully how you plan to deal with the potentially ethical issues identified in questions 1 to 16 above. This does not mean the research will necessarily be disallowed, but the proposal will need to be approved by the UHI Research Ethics Committee before research can commence? If you answered YES to question 16, you will also need to comply with NHS guidelines that can be found at www.corec.org.uk.
NOTE: If in doubt, always forward your proposal to the Research Ethics Committee. Any significant change in the question, design or conduct over the course of the research should be notified to the Project Supervisor who may require a new application for ethical approval.
Signed: REMOVED FOR ANONYMITY (Student Investigator) 16.11.20xx
Signed: Sandra Chache (Project Supervisor) 14.12.20xx
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Please take 5 minutes to complete this survey which forms part of a research project commissioned by Inverness College as part of the BA (Hons) Business and Management programme.
Place a cross (?) in the relevant box.
Q1
How long have you been visiting ABC Organisation?
0 – 3 months 8 – 11 months 4 – 7 months 12 months and over
Q2
On average how frequently do you visit ABC Organisation?
Less than once a month About once a month About twice a month About three times a month More than three times a month
Q3 Q4 Q5
Do you visit other hair & beauty
Yes No
establishments in the Lochaber area?
Do you purchase hair & beauty products from other establishments?
Yes No
Thinking about your general purchases over the last 3 months which of the following products or services have you bought?
Insurance Gifts Home Decor Entertainment DIY Other Groceries Travel
Q6
Thinking about your general purchases over the last 3 months which of the following products/services have you bought online?
Insurance Gifts Home Decor Entertainment DIY Other Groceries Travel
Q7
How likely would you be to purchase hair & beauty products online?
Very likely Somewhat likely Neither likely/unlikely Somewhat unlikely Very unlikely
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Q8
How likely would you be to purchase hair & beauty services online?
Very likely Somewhat likely Neither likely/unlikely Somewhat unlikely Very unlikely
Q9
How many times in the past 3 months have you visited the ABC Organisation website?
1x 4x 2x 5x 3x More
I have never visited
Q10
Thinking about your answer to Q9, what was/would be your main reasons for visiting the ABC Organisation website?(?) all that apply
Product/service information Product purchase Appointment booking Price comparison I would not visit the site
(skip to Q12)
Q11
Thinking about your answer to Q10, what effect would price promotion have on your decision to buy hair & beauty products online?
Very likely to buy Somewhat likely to buy Neither likely/unlikely Somewhat unlikely to buy Highly unlikely to buy
Q12 Q13
Do you, or have you ever read the IMAG magazine?
Yes No
Do you remember reading the editorial offering hair and beauty advice, located in the IMAG magazine?
Yes No
Q14
Which of the following ABC Organisation products/services are you aware of?
St Tropez Tanning Micro-dermabrasion Dermalogica Facials Bridal Hair
Teeth Whitening
Hypnotherapy
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Q15
How did you first learn about teeth whitening at ABC Organisation?
online @ www.bodycareandhairworks.com in store poster conversation with store employee word of mouth had not heard about it until today
Q16
Rate the following promotional tools in terms of how much influence they have on your overall purchasing decisions? (with 1 being no influence at all, and 5 being a substantial influence)
A special offer leaflet drop to your home 1 1 2 3 4 5 An e-mail newsletter promoting products/services 1 2 3 4 5 1 2 2 3 3 4 4 5 5
An invitation to a product launch event A promotional advertisement in a local magazine 1 2 3 4 5
A voucher offering a discount on products/service 1
A free sample with purchase
1
2
3
4
5
Q17 Q18
Are you
Male Female
What is your age?
18 to 49 50 to 64 65 to 74 75 to 84 85 and over
Q19 Q20 Q21
Do you have regular access to the internet?
Yes No (skip to Q21)
Do you access the internet from
Home
Work
Both
How much do you spend a month on hair + beauty products?
£25 and under £151 to £200 £26 to £50 £201 to £250 £51 to £75 £251 to £300 £76 to £100 £101 to £150 £301 and over
Q22
How much do you spend a month on hair + beauty services?
£25 and under £151 to £200 £26 to £50 £201 to £250 £51 to £75 £251 to £300 £76 to £100 £101 to £150 £301 and over
THANK YOU FOR YOUR TIME AND FOR TAKING PART IN THIS SURVEY.
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ALL RESULTS ARE STRICTLY CONFIDENTIAL AND ARE FOR RESEARCH PURPOSES ONLY.
FREQUENCY TABLES
Q1 How long have you been visiting ABC Organisation?
0 – 3 months 4 – 7 months 8 – 11 months 12 months and over TOTAL Frequency 8 6 4 52 70 Percent 11.4 8.6 5.7 74.3 100
Q2
On average how frequently do you visit ABC Organisation?
Less than once a month About once a month About twice a month More than three times a month TOTAL Frequency 38 24 6 2 70 Percent 54.3 34.4 8.6 2.9 100
Q3
Do you visit other hair & beauty establishments in the Lochaber area?
Yes No TOTAL Frequency 32 38 70 Percent 45.7 54.3 100
Q4
Do you purchase hair & beauty products from other establishments?
Yes No TOTAL Frequency 44 26 70 Percent 62.9 37.1 100
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Q5
Thinking about you general purchases over the last 3 months which of the following products or services have you bought?
Frequency Insurance Yes No Total Entertainment Yes No Total Yes No Total DIY Yes No Total Yes No Total Travel Yes No Total Yes No Total Other Yes No Total 24 46 70 58 12 70 10 60 70 62 8 70 26 44 70 16 54 70 14 56 70 34.3 65.7 100 82.9 17.1 100 14.3 85.7 100 88.6 11.4 100 37.1 62.9 100 22.9 77.1 100 20 80 100 18 52 70 25.7 74.3 100 Percent
Gifts
Groceries
Home Decor
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Q6
Thinking about your general purchase over the last 3 months which of the following products/services have you bought online?
Frequency Insurance Yes No Total Yes No Total Gifts Yes No Total Yes No Total Groceries Yes No Total Yes No Total Home Decor Yes No Total Yes No Total 8 62 70 12 58 70 32 38 70 2 68 70 6 64 70 16 54 70 2 68 70 14 56 70 Percent 11.4 88.6 100 17.1 82.9 100 45.7 54.3 100 2.9 97.1 100 8.6 91.4 100 22.9 77.1 100 2.9 97.1 100 20 80 100
Entertainment
DIY
Travel
Other
Q7
How likely would you be to purchase hair & beauty products online?
Very likely Somewhat likely Neither likely/unlikely Somewhat unlikely Very unlikely TOTAL Frequency 10 8 10 8 34 70 Percent 14.3 11.4 14.3 11.4 48.6 100
Q8
How likely would you be to purchase hair & beauty services online?
Very likely Somewhat likely Neither likely/unlikely Somewhat unlikely Very unlikely TOTAL Frequency 2 10 6 4 48 70 Percent 2.9 14.3 8.6 5.7 68.6 100
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Q9
How many times in the past 3 months have you visited the ABC Organisation website?
1x 2x 3x 4x I have never visited TOTAL Frequency 2 2 6 2 58 70 Percent 2.9 2.9 8.6 2.9 82.9 100
Q10
Thinking about your answer to Q9, what was/would be your main reasons for visiting the ABC Organisation website? (?) all that apply
Frequency Product/service information Yes No Total Yes No Total Appointment booking Yes No Total Yes No Total I would not visit the site Yes No Total 30 40 70 10 60 70 28 42 70 10 60 70 32 38 70 Percent 42.9 57.1 100 14.3 85.7 100 40 60 100 14.3 85.7 100 45.7 54.3 100
Product purchase
Price comparison
Q11
Thinking about your answer to Q10, what effect would price promotion have on your decision to buy hair & beauty products online?
Very likely to buy Somewhat likely to buy Neither likely/unlikely to buy Somewhat unlikely to buy Total Missing System TOTAL Frequency 8 10 18 2 38 32 70 Percent 11.4 14.3 25.7 2.9 54.3 45.7 100
Q12
Do you, or have you ever read the IMAG magazine?
Yes No TOTAL Frequency 48 22 70 Percent 68.6 31.4 100
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Q13
Do you remember reading the editorial offering hair and beauty advice, located in the IMAG magazine?
Yes No Total Missing System TOTAL Frequency 36 18 54 16 70 Percent 51.4 25.7 77.1 22.9 100
Q14
Which of the following ABC Organisation products/services are you aware of?
Frequency St Tropez Tanning Yes No Total Micro-dermabrasion Yes No Total Yes No Total Bridal Hair Yes No Total Yes No Total Yes No Total 44 26 70 14 56 70 54 16 70 24 46 70 46 24 70 4 66 70 62.9 37.1 100 20 80 100 77.1 22.9 100 34.3 65.7 100 65.7 34.3 100 5.7 94.3 100 Percent
Dermalogica Facials
Teeth Whitening
Hypnotherapy
Q15
How did you first learn about teeth whitening at ABC Organisation?
In store poster Conversation with store employee Word of mouth Had not heard about it until today TOTAL Frequency 24 16 6 24 70 Percent 34.3 22.9 8.6 34.3 100
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Q16
Rate the following promotional tools in terms of how much influence they have on your overall purchasing decisions?
Frequency A special offer leaflet drop to your home No influence at all Little influence Neutral Some influence A substantial influence Total An e-mail newsletter promoting products/services No influence at all Little influence Neutral Some influence A substantial influence Total An invitation to a product launch event No influence at all Little influence Neutral Some influence A substantial influence Total A voucher offering a discount on products/service No influence at all Little influence Neutral Some influence A substantial influence Total A promotional advertisement in a local magazine No influence at all Little influence Neutral Some influence A substantial influence Total A free sample with purchase No influence at all Little influence Neutral Some influence A substantial influence Total 20 14 26 4 6 70 20 12 20 14 4 70 16 16 22 8 8 70 4 20 24 22 70 14 4 22 20 10 70 4 4 18 14 30 70 28.6 20 37.1 5.7 8.6 100 28.6 17.1 28.6 20 5.7 100 22.9 22.9 31.4 11.4 11.4 100 5.7 28.6 34.3 31.4 100 20 5.7 31.4 28.6 14.3 100 5.7 5.7 25.7 20 42.9 100 Percent
Q17
Are you?
Female TOTAL Frequency 70 70 Percent 100 100
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Q18
What is your age? Frequency
18 to 49 50 to 64 65 to 74 75 to 84 TOTAL 34 22 12 2 70
Percent
48.6 31.4 17.1 2.9 100
Q19
Do you have regular access to the internet?
Yes No TOTAL Frequency 62 8 70 Percent 88.6 11.4 100
Q20
Do you access the internet from
Home Work Both Total Missing System TOTAL Frequency 46 2 14 62 8 70 Percent 65.7 2.9 20 88.6 11.4 100
Q21
How much do you spend a month on hair + beauty products?
£25 and under £26 to £50 £51 to £75 £101 to £15 TOTAL Frequency 42 12 14 2 70 Percent 60 17.1 20 2.9 100
Q22
How much do you spend a month on hair + beauty services?
£25 and under £26 to £50 £51 to £75 £76 to £100 £101 to £150 TOTAL Frequency 20 26 20 2 2 70 Percent 28.6 37.1 28.6 2.9 2.9 100
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CROSS TABULATIONS 1. Product Knowledge vs. Length of Patronage
St Tropez Tanning
Yes (%) 0-3 months 4 -7 months 8 - 11 months 12 months and over Total 5.7 2.9 2.9 51.4 62.9 No (%) 5.7 5.7 2.9 22.9 37.1
Micro-dermabrasion
Yes (%) 0.0 0.0 0.0 20.0 20.0 No (%) 11.4 8.6 5.7 54.3 80.0
Dermalogica Facials
Yes (%) 8.6 8.6 5.7 54.3 77.1 No (%) 2.9 0.0 0.0 20.0 22.9
Bridal Hair
Yes (%) 0.0 0.0 5.7 28.6 34.3 No (%) 11.4 8.6 0.0 45.7 65.7
Teeth Whitening
Yes (%) 8.6 2.9 2.9 45.7 60.0 No (%) 2.9 5.7 2.9 28.6 40.0
Hypnotherapy
Yes (%) 0.0 0.0 0.0 5.7 5.7 No (%) 11.4 8.6 5.7 68.6 94.3
2. ABC Organisation IMAG Advertorials
St Tropez Tanning
Yes (%) Yes No Total 3. 29.6 25.9 55.6 No (%) 37.0 7.4 44.4
Micro-dermabrasion Dermalogica Facials
Yes (%) 3.7 14.8 18.5 No (%) 63.0 18.5 81.5 Yes (%) 48.1 25.9 74.1 No (%) 18.5 7.4 25.9
Bridal Hair
Yes (%) 14.8 18.5 33.3 No (%) 51.9 14.8 66.7
Teeth Whitening
Yes (%) 25.9 22.2 48.1 No (%) 40.7 11.1 51.9
Hypnotherapy
Yes (%) 0.0 7.4 7.4 No (%) 66.7 25.9 92.6
Product knowledge of customers whose needs are not fully met by ABC Organisation
St Tropez Tanning
Yes (%) Yes No Total 28.6 34.3 62.9 No (%) 17.1 20.0 37.1
Micro-dermabrasion Dermalogica Facials
Yes (%) 11.4 8.6 20.0 No (%) 34.3 45.7 80.0 Yes (%) 31.4 45.7 77.1 No (%) 14.3 8.6 22.9
Bridal Hair
Yes (%) 14.3 20.0 34.3 No (%) 31.4 34.3 65.7
Teeth Whitening
Yes (%) 31.4 28.6 60.0 No (%) 14.3 25.7 40.0
Hypnotherapy
Yes (%) 5.7 0.0 5.7 No (%) 40.0 54.3 94.3
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doc_294340362.docx
What constitutes a small business varies widely around the world. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships.
Research Project on Small Business Product Promotion
Executive Summary
The purpose of this investigation was to conduct, analyse and interpret research on behalf of a local business, in this case on behalf of local Lochaber business, ABC Organisation, which has been in operation since 1997, and to make recommendations based on those findings.
The sponsoring organisation recognised the need for a rethink of their own promotional practices, and this research report investigated the theory behind the practice of small business product/service promotion and the sponsor’s own product promotions efforts. Initially this relied on the evaluation of secondary sources such as journals and text books, and then used a quantitative primary data approach using a structured questionnairebased survey to gather data from existing clients of the business. The research took place over the winter from January to April 20XX with the main outcome being to identify and propose effective product/service promotion techniques that could be used by a small business such as this one to attract new customers and at the same time retain existing ones.
This report provided the sponsor with a clearer understanding of its promotional standing. The main findings were that the provision of a number of new services had gone unnoticed by customers; that the tracking of campaign effectiveness was essential; that customers were only loyal so long as all their hair & beauty requirements were being met; and that their promotional activities were not achieving the expected outcomes.
Based on the findings of both secondary and primary research recommendations were made to the sponsor on how best to proceed with future promotional activity. In order to improve promotional effectiveness, increase product and service awareness, and ultimately improve profitability the main priority was the development of a plan of action – identifying the need for all components of the promotional mix to work towards goals and objectives clearly defined by the organisation in order to maximise their effectiveness.
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Specifically this will require them to gear promotional activities towards stimulating sales by increasing awareness amongst both new and existing customers encouraging first-time and repeat purchases. Proposed promotional activities include the promotion of products and services on the sponsor’s refurbished website, the improvement of current local magazine advertorial promotions, as well as the establishment of a Facebook and/or Twitter as an effective tool for the promotion of product and service offerings.
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Contents Page
Section
Page
Executive Summary 1. Introduction 2. Methodology 3. Literature Review 4. (Initial) Data Analysis and Presentation 5. Critical Interpretation of Data 6. Conclusions 7. Recommendations References
i 1 2 4 7 10 13 14 16
Figures Figure 4.1 – How long have you been visiting ABC Organisation? Figure 4.2 – Do you visit other hair & beauty establishments in the Lochaber area? Figure 4.3 – How likely would you be to purchase hair & beauty products online? Figure 4.4 – How likely would you be to purchase hair & beauty services online? Figure 4.5 – Which of the following ABC Organisation products/services are you aware of? Figure 4.6 – Rating of promotional tools in terms of influence on overall purchasing decisions? Figure 5.1 – Product knowledge vs. length of patronage Figure 5.2 – Product knowledge of those who do remember reading about ABC Organisation in the IMAG 11 Figure 5.3 – Product knowledge of those who do not remember reading about ABC Organisation in the IMAG Figure 5.4 – Product knowledge of customers whose needs are not fully met by ABC Organisation 11 12 7 7 8 8 9 9 10
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Appendices Appendix A – REC1a Research Ethics Form Appendix B – ABC Organisation Questionnaire Appendix C – Frequency Tables Appendix D – Cross Tabulations
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1. 1.1
Introduction Overview
The project sponsor, ABC Organisation has been in operation since 19XX. The business has diversified over the years from offering hair and beauty products/services, to now offering ancillary services such as hypnotherapy and teeth whitening. This local business hopes to grow through the provision of these additional offerings, however their current challenge and reason for the commissioning of this research project is the undertaking of efficient and effective product promotion in order to increase product and service awareness. 1.2 Justification
Characteristic of many small businesses, the sponsor has invested a substantial amount of time and money in setting up these additional service and product offerings, but due to poor promotions planning have failed to attract the desired response. Despite a strong client base and prime location, the provision of services such as teeth whitening and hypnotherapy has gone largely unnoticed by both new and existing customers. 1.3 Aim and Objectives
The overall purpose of this research report is to establish effective product promotion techniques that can be used by small businesses to both attract new customers and retain existing ones. In order to meet the overall research aim, the specific research objectives were to: ? ? ? ? identify common product promotion mistakes made by small businesses identify effective techniques for small business product promotion evaluate the sponsors current promotional efforts by surveying new and existing customers to recommend to the sponsor the way forward in terms of product promotions practice
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2.
Methodology
The overall research aim was the evaluation of the promotion mix as a tool for customer acquisition and retention. Secondary research involved a review of relevant literature, while primary research was conducted through a quantitative study into customer perceptions of promotion. As both Kumar (2005) and The University of Maryland (2006) explain, secondary research involves the use of existing data which has come about as a result of previous research and is therefore subject to validity and reliability issues. Secondary sources such as textbooks, reference materials, newspapers, web resources and journals such as The Journal of Consumer Marketing and Business Horizons were consulted in line with secondary research objectives (Saunders, Lewis and Thornhill 2007), which were to establish common mistakes made by small businesses when conducting promotions, and to identify and evaluate effective promotional techniques. Primary research was conducted in line with the ‘UHI Code of Practice for Research Involving Human Participants’ (Appendix A) and in line with the overall research aim and objectives which were to evaluate the sponsor’s current promotional efforts in the eyes of their existing and new customers, while at the same time identifying to the sponsor the way forward in terms of effective promotional planning. Following pilot testing a structured quantitative questionnaire-based survey (Appendix B) was administered to respondents; the questionnaire was pre-printed, consisted of closed questions such as dichotomous, multiple choice and ordinal scale questions for ease of analysis and was administered to respondents in a controlled environment over a one week period. A self-administered questionnaire was chosen over other approaches such as interviews, focus groups and consumer panels, due to ease of analysis and the structure of the information gathering process (Blumberg, Cooper and Schindler 2005). The survey was based on a convenience (non-probability) sample of 70 new and existing ABC Organisation customers. As Saunders, Lewis and Thornhill (2007) identify, a convenience sample involves simply selecting participants on the basis of convenience, accessibility, and expediency until the sample size has been reached for research purposes it is assumed that the sample population was representative of the population as a whole and was devised based on historical revenue data: for example with an average of 7.5% of weekly business taking place on a Monday, 7.5% of respondents were chosen to participate in the research based conveniently on their presence in the establishment on the day.
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The survey consisted of 22 data and statistical analysis questions with the purpose of gaining the respondents’ views on promotion, evaluating the sponsor’s current promotional efforts and identifying other areas of statistical interest to the organisation. Following the completion of all surveys, the pre-coded research data was analysed using the SPSS statistical analysis software. Results were presented graphically using frequency tables and histograms, while correlations of various results were tested and analysed using ANOVA (analysis of variance) techniques such as Spearman’s Rank Correlation which identifies links between independent variables (Ott and Longnecker 2010), a detailed analysis of the results of this study are included in the ‘critical interpretation of data’ section.
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3.
Literature Review
Promotion refers to the process of communicating with consumers, in an attempt to influence a favourable purchasing decision (Institute of Sales Promotion 2010). As Vignali (2001) suggests promotion is one of the core components of the marketing mix and as a result has a major impact on market success. The Chartered Institute of Marketing (2009) look at promotion in terms of the promotional mix – described as a set of techniques available to a business in order to facilitate the effective communication of product or service benefits to existing and prospective customers. Jobber (2001) and Baker (2003) identify advertising, personal selling, public relations, direct marketing and sales promotion as core components of the promotional mix together with in more recent years the internet and online promotion. Blythe (2001) emphasises the importance of the word ‘mix’ when developing a promotional strategy, proposing that a successful and efficient campaign will be made up of several if not all components of the promotional mix all working towards common aims and objectives, which as Fill (2006), Blythe and Rowley (1998) identify could be in the short-term, to drive sales or counter the promotional efforts of competitors, or in the long run to maintain or improve market share. Marketing practitioners commonly distinguish between ‘above’ or ‘below’ the line promotion, with advertising lying above and all other components lying below. Baker explains that short-term promotional objectives are achieved below the line, while long-term brand building requires extensive and costly action above-the-line. The promotional mix involves a mixture of promotional techniques, the composition of which Longenecker (2009) and Mercer (1996) advise is determined by aspects such as the geographical character of the target market and the characteristics or complexity of the product/service offering itself. In order to be effective the small business owner must identify the optimal mix of promotional techniques that will reach the target market, and then allocate financial resources accordingly. Advertising is arguably one of the most effective promotional techniques, with its objective being to evoke a purchasing decision or to at least generate product enquiries, through non-personal communication through a paidfor mass medium (Brassington and Pettitt 2006). Kotler et al. (2008) believe personal selling, although the most costly to use, the most effective promotional tool, citing its ability to foster relationships between sales personnel and consumers as unique and effective. With its role of promoting goodwill between a business and its stakeholders, public relations as a component of the promotional mix should not be overlooked (O’Guinn, Allen and Semenik 2009). Jobber identifies the role of direct marketing in promotion, describing how tools such as direct mail and door-to-door leafleting aim to acquire and retain consumers by communicating with them not through an intermediary but directly. Unlike other forms of marketing communication, an immediate response is usually warranted allowing the effectiveness of the campaign to be quickly and efficiently assessed.
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Sales promotions on the other hand are marketing communications efforts that affect the price/value relationship of a product/service offering, and thereby generate immediate sales and have a substantial impact on brand value (Schultz, Robinson and Petrison 1998). Kurtz, Mackenzie and Snow (2009) outline the basic aim of sales promotion as being the encouragement of current customers through rewards to make a repurchase, increasing sales of complementary products and at the same time attracting consumer attention. Business Link (2009) and Fill (2006) explain the growth of the use of the internet for sales promotional efforts, with research finding online promotions to achieve on average three to five times more responses than direct mail, through the use of ecoupons, SMS promotions and viral campaigns. Chaston (2000) goes as far as describing the internet and its role in the promotional mix as a small business owners ‘dream’, unable to identify any other promotiona l technique as effective - a promotional platform where a business can communicate with customers anywhere around the world at anytime of the day, and at the same time have the ability to instantly communicate changes of price or product offering through inexpensive messages to all consumers simultaneously. Along with this, the emergences of online social media networks have made mass communication between business and consumer accessible to all businesses, so much so that social media is argued to be a hybrid element of the promotional mix (Mangold and Faulds 2009). The promotional efforts of many small businesses including the project sponsor fall short of requirement through committing common promotional mistakes. A haphazard promotions strategy is probably the most common mistake, while underestimating the costs involved in promotion or relying entirely on paid advertisements can seriously affect the outcome of a campaign (Sugars 2006). Failing to track the effectiveness of a promotional activity and communicating an ambiguous promotional message is according to McMurtry (2003) the most costly promotional mistake. McMurtry outlines several other reasons for promotions failing, stating that failed promotions are generally: egocentric; overreaching; void of ownership; and budget-oriented. Roylance (2006) and Bangs (2002) confirm that there is no point undertaking promotional activity unless the promotional objectives are clearly identified, the message tested and a means for establishment of success identified, both advise of the difficulty of undoing these mistakes. Business Gateway (2009) and Brassington and Pettitt (2006) emphasise the importance of effective promotions planning, explaining how developing an efficient and effective, fully integrated and consistent approach helps turn customer interest into sales. With small business generally characterised by limited financial means, making poor promotional decisions carries with it substantial financial risk (Chaston and Mangles 2002). A point shared by Kurtz, Mackenzie and Snow (2009) and Lam et al (2001) who agree that the effectiveness of all promotional activities must be measured and evaluated in order to fully benefit from the promotional investment made.
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Successful promotion is generally accepted to come about following several key steps; Lake (2010), Petit and McEnally (1985), and Dunne and Lusch (2008) all outline between them a five to seven step process for the development of an effective promotional campaign; starting with the assessment of marketing communication opportunities and the determination of promotional objectives, before leading to aspects relating to the promotional message itself and finally progressing to the determination of the campaigns effectiveness. Barrow et al. (2008) and Shimp (2007) confirm that this latter element must be carried out if the desired outcomes are to be achieved. The issue of campaign effectiveness is one the project sponsor is keen to address through the primary research, which will seek to evaluate the use of the business’s current promotional mix in order to ascertain its effectiveness as both a tool for customer retention and new product promotion.
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4.
(Initial) Data Analysis and Presentation
An initial analysis of the data obtained from the primary research (questionnaire-based survey) was conducted using SPSS with individual results being presented using frequency tables (Appendix C). The initial findings offered some interesting insight into the effectiveness of the sponsor’s current promotional efforts and are detailed below. Figure 4.1 How long have you been visiting ABC Organisation?
0 -3 months 4 -7 months 8 - 11 months 12 months and over
It is interesting to note that although 80% of respondents had been visiting ABC Organisation for over 8 months and would therefore be expected to have a good knowledge of the business and its product/service offerings nearly half looked to other establishments in order to meet all their hair and beauty requirements, while over 60% of respondents confessed to purchasing hair and beauty products from other establishments. Figure 4.2 Do you visit other hair & beauty establishments in the Lochaber area?
56 54 52 50 48 46 44 42 40 yes no
In response to the questions on consumer shopping habits, the majority of respondents who on average did most of their day-to-day purchasing offline indicated a lack of interest in the online provision of hair and beauty products/services with most respondents (48.6% for products and 68.6% for services) indicating that they would be very unlikely to purchase hair and beauty online, it is also interesting to note that 82.9% of respondents had never
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visited the sponsors website and after being made aware of the sites existence 45.7% of respondents indicated they still had no interest in visiting. Figure 4.3 How likely would you be to purchase hair & beauty products online?
50 40 30 20 10 0
Figure 4.4 How likely would you be to purchase hair & beauty services online?
70 60 50 40 30 20 10 0
Further evaluating the promotional efforts of the sponsor, the respondents were tested on their knowledge of products and services offered by the business. The results were surprising to the sponsor as a large amount of information on products and services is available on the sponsor’s website as well as within their monthly IMAG magazine advertorial. Of the 68.6% of respondents who read the IMAG magazine only 66.7% remembered reading the advertorial which is an important promotional source for the business. Looking at the results presented in figure 4.5 it is clear to see a major issue for the business is the creation of product awareness as many of the businesses products and services have gone largely unnoticed by customers.
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Figure 4.5 Which of the following ABC Organisation products/services are you aware of?
Hypnotherapy Teeth Whitening Bridal Hair Dermalogica Facials Micro-dermabrasion St Tropez Tanning 0 20 40 60 80 100 Yes No
In order to identify to the sponsor the way forward in terms of effective product promotion respondents were asked to rate various promotional tools in terms of their influence on purchasing decisions. The results presented below identify free samples and product vouchers as the most effective ways to influence a purchase decision. Figure 4.6 Rating of promotional tools in terms of influence on overall purchasing decisions?
50 45 40 35 30 25 20 15 10 5 0
no influence at all little influence neutral some influence a substantial influence
14
5.
Critical Interpretation of Data
The initial analysis of research data was followed by further analysis seeking to identify important relationships between results such as the testing of whether customers who had been visiting ABC Organisation for longer knew more about their products and services. The results below reveal how the provision of some products and services are noticed by some customers more than others - while 94.3% of respondents did not know about the provision of hypnotherapy 77.1% of respondents did know about Dermalogica facials. Looking at the cross tabulations (Appendix D) and using Pearson’s Chi Squared test it is established that there is no direct correlation between the two variables i.e. the customers product knowledge is not influenced significantly by their length of patronage but rather by other aspects such as the promotion of the products/services themselves. Figure 5.1 Product knowledge vs. length of patronage
Teeth Hypnotherap Whitening y Bridal Hair No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) 0.0 20.0 40.0 60.0 80.0 12 months and over 8 - 11 months 4 -7 months 0-3 months
St Tropez MicroDermalogica Tanning dermabrasion Facials
15
Further evaluating the sponsor’s product promotions efforts, the level of influence of the sponsors website and advertorials in the local Fort William advertiser the IMAG are investigated. With 82.9% of respondents never having visited the website its influence on overall customer product knowledge and purchasing was deemed to be self explanatory and was not analysed. With 51.4% of respondents having read the IMAG and remembered reading the ABC Organisation advertorial it was expected that product/service knowledge amongst these individuals would be high, however looking at the results below it is interesting to note that the respondents who did not remember reading the IMAG advertorial had more product knowledge than those who did remember reading it, identifying an issue with the effectiveness of this promotional technique.
Figure 5.2 Product knowledge of those who do remember reading about ABC Organisation in the IMAG
70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) St Tropez Tanning MicroDermalogica dermabrasion Facials Bridal Hair Teeth Whitening Hypnotherapy
Figure 5.3 Product knowledge of those who do not remember reading about ABC Organisation in the IMAG
30.0 25.0 20.0 15.0 10.0 5.0 0.0 Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) No (%) St Tropez Tanning MicroDermalogica dermabrasion Facials Bridal Hair Teeth Whitening Hypnotherapy
16
An analysis was conducted in order to establish the relationship between salon loyalty and product/service knowledge i.e. if those who knew about the products and services offered still visited other establishments or if customers look to other establishments believing that ABC Organisation do not meet all their requirements. The results indicate that many customers who looked to other establishments were unaware of the provision of services such as micro-dermabrasion, bridal hair, hypnotherapy and even to an extent St Tropez tanning. Figure 5.4 Product knowledge of customers whose needs are not fully met by ABC Organisation
40.0 30.0 20.0 10.0 0.0 Yes No (%) Yes (%) No (%) Yes (%) No (%) Yes (%) St Tropez Tanning (%) No (%) Micro-dermabrasion Dermalogica Facials Bridal Hair
Yes (%)
No (%)
Yes (%)
No (%)
Teeth Whitening Hypnotherapy
The findings of the primary research are supported by the review of secondary literature which states how in order for a product promotions campaign to be effective the optimal mix of techniques must be identified. A haphazard, unplanned approach to product promotion will not have the desired outcome. The internet is identified as a small business product promotions ‘dream’, however in order for it to be a successful medium for product promotion the business’s online presence needs to be promoted in order to achieve a click through rate of any significance.
17
6.
Conclusion
An investigation into the theory of product promotion was conducted with the basic goal of identifying common promotional mistakes and identifying the effectiveness of promotional techniques at the business’s disposal. The main findings of the secondary research are summarised below: ? ? ? ? Roylance (2006) and Bangs (2002) state there is no point undertaking unplanned, haphazard, untracked promotional activities (p5, para 2) McMurtry (2003) finds failing to track promotional effectiveness a common and costly mistake (p5, para 2) Blythe (2001) emphasizes how components of promotional campaign must work towards common aims and objectives (p4, para 1) Kurtz, Mackenzie and Snow (2009) outline the encouragement of existing customers to make a repurchase and the influencing of new customers to make an initial purchase as the basic aim of sales promotion (p5, para 1) Through primary research the sponsors’ promotional efforts were evaluated in terms of their effectiveness as a tool for the acquisition and retention of customers. The main findings of the primary research are summarised below: ? ? ? ? ? ? ? 60% of respondents were not loyal customers (p7, para 2) 48.6% of respondents indicated they would not purchase products online, 68.6% indicated they would not purchase services online (p7, para 3) 58% of respondents had never visited the sponsors website, 45.7% said they had no interest in ever visiting (p7, para 3) major issue for business is product awareness as provision of some products/services have gone unnoticed e.g. 94.3% of respondents unaware of hypnotherapy service (p10, para 1) free samples/vouchers identified as most influential promotional tools (p9, para 1) effectiveness of IMAG questioned as readers had less product knowledge than non-readers (p11, para 1) customers who frequented other establishments were unaware of provision of services such as microdermabrasion, St Tropez tanning, and hypnotherapy – indicating a loss of potential revenue to competitors (p12, para 2) The findings of this report provide the sponsor with a clearer understanding of its current promotional situation allowing them to make improvements in terms of promotional effectiveness.
18
7.
Recommendations
Drawing on the findings of both secondary and primary research the following recommendations are made to the sponsor. By putting these recommendations into practice the promotional efforts of the sponsor will start to become more integrated and effective in terms of cost minimisation, product and service awareness building, and profit making. 7.1 Recommendation One
The main priority is the development of a plan of action in terms of future promotional activity. All components of the promotional campaign must work towards a clearly defined set of goals and objectives and must be properly targeted in order to ensure maximum effectiveness with regards to customer acquisition and retention. 7.2 Recommendation Two
The next issue for the company to address is that of potential loss of business to competitors, the knowledge that customers, unaware of the full range of products/services offered are looking to competitors to fulfil some of their hair & beauty requirements demonstrates the current lack of promotional effectiveness. Promotional activities must be geared towards stimulating sales by increasing awareness amongst both new and existing customers. 7.3 Recommendation Three
The organisation is currently performing a refurbishment of its website in order to increase its functionality as a business tool and its effectiveness as a promotional tool. A priority with regards to the promotion of products/service online is the effective targeting of customers, remembering that 45.7% of respondents said they had no interest in ever visiting the website. Customers need to be made more aware of the website for it to be effective, thus the website must be promoted at every opportunity. The website offers the business an opportunity for cross promotion with local businesses such as hotels and B+B’s or even with suppliers. 7.4 Recommendation Four
The IMAG advertorial is a good form of product promotion, however as a priority it’s following needs to be extended and its effectiveness tracked. Copies of the advertorial could be e-mailed to customers as well as being placed on the business’s website. A money-off voucher /promotional code should be placed within the advertorial enticing customers to act on the promotional message; this would also allow the sponsor to track promotional effectiveness.
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7.5
Recommendation Five
The establishment of a Facebook/Twitter page could also be useful as it would provide customers with a platform for word-of-mouth referral, while providing the business with the opportunity to gain invaluable customer feedback as well as allowing the business to communicate promotions more effectively and efficiently.
20
References
Baker, M.J (2003) 5th Edn. The Marketing Book. Oxford: Butterworth-Heinemann Bangs D.H, (2002) 6th Edn. The Market Planning Guide: Creating a Plan to Successfully Market Your Business, Product, Product, or Service. Chicago: Dearborn Trade Publishing Barrow, C., Barrow, P., Brown, and Robert (2008) The Business Plan Workbook. Kogan Page [online] available from <http://lib.myilibrary.com/Browse/open.asp?ID=138638&loc=158> [10 February 2010] Blumberg, B., Cooper, D.R. and Schindler, P.S. (2005) 2nd Edn. Business Research Methods. Berkshire: McGrawHill Education Blythe, J. (2001) 2nd Edn. Essentials of Marketing. Essex: Pearson Education Limited Brassington, F., and Pettitt, S. (2006) 4th Edn. Principles of Marketing. Essex: Pearson Education Limited. Business Gateway (2009) Sales & Marketing: The Basics. [online] available from <http://www.bgateway.com/bdotg/action/layer?site=202&topicId=1074299808> [17 October 2009] Business Link (2009) Generate Business from Your E-marketing Plan. [online] available from <http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075390452> [17 October 2009] Chaston, I. (2000) Entrepreneurial Marketing – Competing by Challenging Convention. Hampshire: Macmillan Press Ltd. Chaston, I., and Mangles, T. (2002) Small Business Marketing Management. New York: Palgrave Dunne, P.M, and Lusch R.F, (2008) Retailing. 6th edn. Mason: Thomson Higher Education Fill, C. (2006) 4th Edn. Marketing Communications: Engagements, Strategies and Practice. Essex: Pearson Education Institute of Sales Promotion (2010) Your First Job in Marketing. [online] available from <http://www.isp.org.uk/education.php?pid=63> [17 February 2010] Jobber, D. (2001) Principles & Practice of Marketing. Berkshire: McGraw-Hill Publishing Company
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Kotler, P., Armstrong, G., Wong, V., and Saunders, J. (2008) 5th Edn. Principles of Marketing. Essex: Pearson Education Limited. Kumar, R. (2005) Research Methodology: A Step-by-Step Guide for Beginners. London: SAGE Publications Ltd. Kurtz, D.L., MacKenzie, H.F., and Snow, K. (2009) Contemporary Marketing. Mason: South-Western Cengage Learning Lake, L. (2010) 7 Steps to Planning a Productive and Successful Promotional Campaign. [online] available from <http://marketing.about.com/od/positioning/a/promocampaign.htm> [7 February 2010] Lam, S.Y., Vandenbosch, M., Hulland, J. And Pearce, M. (2001) ‘Evaluating Promotions in Shopping Environments: Decomposing Sales Response into Attraction, Conversion, and Spending Effects’, Marketing Science, 20 (2), PP. 194-215 JSTOR [online] available from <http://www.jstor.org.eor.uhi.ac.uk/stable/3181636?&Search=yes&term=product&term=evaluating&term=promotion &term=promotions&term=effects&term=mix&list=hide&searchUri=%2Faction%2FdoAdvancedSearch%3Fq0%3Dpr oduct%2Bpromotion%26f0%3Dall%26c0%3DAND%26q1%3Dthe%2Bpromotions%2Bmix%26f1%3Dall%26c1%3 DAND%26q2%3Devaluating%2Bthe%2Beffects%2Bof%2Bproduct%2Bpromotion%26f2%3Dall%26c2%3DAND% 26q3%3D%26f3%3Dall%26wc%3Don%26sd%3D2000%26ed%3D2010%26la%3Deng%26jo%3D%26Search%3D Search&item=4&ttl=100&returnArticleService=showArticle> [10 February 2010] Longenecker, J.G. (2009) Small Business Management: Launching and Managing New Ventures. Florence: Cengage Learning Inc Mangold, W.G. and Faulds, D.J. (2009) ‘Social media: The new hybrid element of the promotion mix’, Business Horizons, 52 (4), PP. 357-365 EconPapers [online] available from <http://econpapers.repec.org/article/eeebushor/v_3a52_3ay_3a2009_3ai_3a4_3ap_3a357-365.htm> [13 February 2010] McMurtry, J.M. (2003) Big Business Marketing for Small Business Budgets. New York: McGraw-Hill. Mercer, D. (1996) 2nd Edn. Marketing. Oxford: Blackwell Publishers Inc. O’Guinn, T.C., Allen, C.T, and Semenik, R.J. (2009) Advertising and Integrated Brand Promotion. Mason: SouthWestern Cengage Learning
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Ott, R.L. and Longnecker, M. (2010) 6th Edn. An Introduction to Statistical Methods and Data Analysis. Belmont: Brooks/Cole Petit, A.T and McEnally, M.R. (1985) ‘Putting Strategy into Promotion Mix Decisions’, Journal of Consumer Marketing, 2 (1), PP. 41-47. Emerald Insight [online] available from <http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/Emer aldFullTextArticle/Pdf/0770020104.pdf> [1 March 2010] Roylance, D. (2006) Purchasing Performance: Measuring, Marketing, and Selling the Purchasing Function. Hampshire: Gower Publishing Limited Rowley, J. (1998) ‘Promotion and Marketing Communications in the Information Marketplace’, Library Review, 47 (8) PP. 383 – 387. Emerald Insight [online] available from <http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=B4439D4C56BB47EF107BBC33146A3508 ?contentType=Article&contentId=859538> [28 February 2010] Saunders, M., Lewis, P., and Thornhill, A. (2007) 4th Edn. Research Methods for Business Students. England: Pearson Education Limited Shimp, T.A. (2007) Advertising Promotion, and Other Aspects of Integrated Marketing Communications. Mason: South-Western Cengage Learning Sugars, B.J. (2006) Instant Promotions. New York: McGraw-Hill The Chartered Institute of Marketing (2009) How to Achieve an Effective Promotional Mix. [online] available from <http://www.cim.co.uk/filestore/resources/10minguides/promotionalmix.pdf> [14 November 2009] The University of Maryland (2006) Primary, Secondary and Tertiary Sources. [online] available from <http://www.lib.umd.edu/guides/primary-sources.html> [10 March 2010] Vignali, C. (2001) ‘Kellogg’s – Internationalisation Versus Globalisation of the Marketing Mix’, British Food Journal, 103 (2) PP. 112 – 130. Emerald Insight [online] available from <http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=38D814B8C7BA7AF3B021B4AB5AD5353 6?contentType=Article&contentId=870578> [18 March 2010]
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Appendices
Section
Page
Appendix A – REC1a Research Ethics Form
i
Appendix B – ABC Organisation Questionnaire
iii
Appendix C – Frequency Tables
v
Appendix D – Cross Tabulations
x
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REC1a - Application for Ethical Approval - UHI Student Projects All undergraduate, taught postgraduate and research students registered on any UHI programme undertaking a research project involving human participants must have their research approved by their project supervisor prior to undertaking any form of fieldwork or data collection exercise. The Research Ethics Committee largely delegates responsibility for ethical approval to the student’s project supervisors, whom are responsible for exercising appropriate professional judgement in this review. Before completing this form (REC1a), please read the UHI Code of Practice for Research Involving Human Participants. The checklist overleaf has been designed to identify any potential ethical issues in the research. Once completed, submit the form to your project supervisor for ethical approval. If ethical issues are identified, applicants will be need to complete the REC2a form and submit this through their supervisor to the Research Ethics Committee for scrutiny. Further information on the research ethics policy and approval process is located on the UHI website at www.uhi.ac.uk/research.ethics ----------------------------------------------------------------Name of Student (applicant) REMOVED FOR ANONYMITY Status Undergraduate (Undergrad/Postgrad/Research) Email address: REMOVED FOR ANONYMITY Contact Address REMOVED FOR ANONYMITY Telephone number: Project Title REMOVED FOR ANONYMITY
An Investigation into Effective Small Business Product Promotion Module Name and Number Research Skills + Project – UN108427 To be completed by Project Supervisor Name of Supervisor Sandra Chache Supervisor’s Email address [email protected] Yes Yes Yes Yes Yes The student has read the UHI Code of Practice The topic merits further research The student has the skills to carry out the research The participant information sheet or leaflet is appropriate The procedures for recruitment and obtaining informed consent are appropriate Project Supervisor’s Comments - ‘Approved’ I am satisfied that this candidate will encounter minimum risk related to the primary research approach identified. The primary research methodology involves a quantitative approach, using a structured questionnaire, which will be applied on a personal basis to clients of the business. There is a small chance that some participants in the survey may fall into the category of those who are elderly, disabled, or those with incapacity; there is a chance that some respondents will be members of an ethnic minority, living or working within the area; there is a chance that, for some respondents, the English language may not be their first language. However I believe this does not constitute a risk that needs to be managed under the auspices of the Research Ethics Committee.
25
Research Ethics Checklist Please answer each question by circling either YES or NO No 1 Will the study involve participants who are particularly vulnerable or unable to give informed consent (e.g. children, students, people with learning disabilities, etc.)? Will the study involve participants under the age of 16? Will any of the participants be elderly, disabled, or those with incapacity? Will any of the participants be members of ethnic minorities? Will any of the interviews or questioning of participants be conducted in a language other than the respondent ‘s first language? Will the study require the co-operation of a gatekeeper for initial access to the groups or individuals to be recruited? (e.g. school students, members of self-help group, residents of nursing home) Will it be necessary for participants to take part in the study without their knowledge/consent at the time? (e.g. covert observation of people in non-public places) Will the study involve discussion of topics, which the participants would find sensitive (e.g. sexual activity, own drug use)? Are drugs, placebos or other substances (e.g. food substances, vitamins) to be administered to the study participants? Will the study involve invasive, intrusive or potentially harmful procedures? Will blood or tissue samples be obtained from participants? Is pain or more than mild discomfort likely to result from the study? Could the study induce psychological stress or anxiety, or cause harm or negative consequences beyond the risks encountered in everyday life? Will the study involve prolonged or repetitive testing? Will financial inducements (other than reasonable expenses and compensation for time) be offered to participants? Will the study involve recruitment of patients or staff through the NHS? No Yes Possibly for survey Yes Possibly for survey Yes possibly for survey Yes – the business owner No No No No No No No No No No
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
26
If you answered NO to all 16 questions, the signed and completed form should be submitted to the UHI Research Ethics Officer for their records. All students should retain a copy of the form and submit it with their research report or dissertation (bound in at the beginning). Work that is submitted without this form will be returned unassessed.
If you answered YES to any of the questions, you will need to complete a REC2a and describe more fully how you plan to deal with the potentially ethical issues identified in questions 1 to 16 above. This does not mean the research will necessarily be disallowed, but the proposal will need to be approved by the UHI Research Ethics Committee before research can commence? If you answered YES to question 16, you will also need to comply with NHS guidelines that can be found at www.corec.org.uk.
NOTE: If in doubt, always forward your proposal to the Research Ethics Committee. Any significant change in the question, design or conduct over the course of the research should be notified to the Project Supervisor who may require a new application for ethical approval.
Signed: REMOVED FOR ANONYMITY (Student Investigator) 16.11.20xx
Signed: Sandra Chache (Project Supervisor) 14.12.20xx
27
Please take 5 minutes to complete this survey which forms part of a research project commissioned by Inverness College as part of the BA (Hons) Business and Management programme.
Place a cross (?) in the relevant box.
Q1
How long have you been visiting ABC Organisation?
0 – 3 months 8 – 11 months 4 – 7 months 12 months and over
Q2
On average how frequently do you visit ABC Organisation?
Less than once a month About once a month About twice a month About three times a month More than three times a month
Q3 Q4 Q5
Do you visit other hair & beauty
Yes No
establishments in the Lochaber area?
Do you purchase hair & beauty products from other establishments?
Yes No
Thinking about your general purchases over the last 3 months which of the following products or services have you bought?
Insurance Gifts Home Decor Entertainment DIY Other Groceries Travel
Q6
Thinking about your general purchases over the last 3 months which of the following products/services have you bought online?
Insurance Gifts Home Decor Entertainment DIY Other Groceries Travel
Q7
How likely would you be to purchase hair & beauty products online?
Very likely Somewhat likely Neither likely/unlikely Somewhat unlikely Very unlikely
28
Q8
How likely would you be to purchase hair & beauty services online?
Very likely Somewhat likely Neither likely/unlikely Somewhat unlikely Very unlikely
Q9
How many times in the past 3 months have you visited the ABC Organisation website?
1x 4x 2x 5x 3x More
I have never visited
Q10
Thinking about your answer to Q9, what was/would be your main reasons for visiting the ABC Organisation website?(?) all that apply
Product/service information Product purchase Appointment booking Price comparison I would not visit the site
(skip to Q12)
Q11
Thinking about your answer to Q10, what effect would price promotion have on your decision to buy hair & beauty products online?
Very likely to buy Somewhat likely to buy Neither likely/unlikely Somewhat unlikely to buy Highly unlikely to buy
Q12 Q13
Do you, or have you ever read the IMAG magazine?
Yes No
Do you remember reading the editorial offering hair and beauty advice, located in the IMAG magazine?
Yes No
Q14
Which of the following ABC Organisation products/services are you aware of?
St Tropez Tanning Micro-dermabrasion Dermalogica Facials Bridal Hair
Teeth Whitening
Hypnotherapy
29
Q15
How did you first learn about teeth whitening at ABC Organisation?
online @ www.bodycareandhairworks.com in store poster conversation with store employee word of mouth had not heard about it until today
Q16
Rate the following promotional tools in terms of how much influence they have on your overall purchasing decisions? (with 1 being no influence at all, and 5 being a substantial influence)
A special offer leaflet drop to your home 1 1 2 3 4 5 An e-mail newsletter promoting products/services 1 2 3 4 5 1 2 2 3 3 4 4 5 5
An invitation to a product launch event A promotional advertisement in a local magazine 1 2 3 4 5
A voucher offering a discount on products/service 1
A free sample with purchase
1
2
3
4
5
Q17 Q18
Are you
Male Female
What is your age?
18 to 49 50 to 64 65 to 74 75 to 84 85 and over
Q19 Q20 Q21
Do you have regular access to the internet?
Yes No (skip to Q21)
Do you access the internet from
Home
Work
Both
How much do you spend a month on hair + beauty products?
£25 and under £151 to £200 £26 to £50 £201 to £250 £51 to £75 £251 to £300 £76 to £100 £101 to £150 £301 and over
Q22
How much do you spend a month on hair + beauty services?
£25 and under £151 to £200 £26 to £50 £201 to £250 £51 to £75 £251 to £300 £76 to £100 £101 to £150 £301 and over
THANK YOU FOR YOUR TIME AND FOR TAKING PART IN THIS SURVEY.
30
ALL RESULTS ARE STRICTLY CONFIDENTIAL AND ARE FOR RESEARCH PURPOSES ONLY.
FREQUENCY TABLES
Q1 How long have you been visiting ABC Organisation?
0 – 3 months 4 – 7 months 8 – 11 months 12 months and over TOTAL Frequency 8 6 4 52 70 Percent 11.4 8.6 5.7 74.3 100
Q2
On average how frequently do you visit ABC Organisation?
Less than once a month About once a month About twice a month More than three times a month TOTAL Frequency 38 24 6 2 70 Percent 54.3 34.4 8.6 2.9 100
Q3
Do you visit other hair & beauty establishments in the Lochaber area?
Yes No TOTAL Frequency 32 38 70 Percent 45.7 54.3 100
Q4
Do you purchase hair & beauty products from other establishments?
Yes No TOTAL Frequency 44 26 70 Percent 62.9 37.1 100
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Q5
Thinking about you general purchases over the last 3 months which of the following products or services have you bought?
Frequency Insurance Yes No Total Entertainment Yes No Total Yes No Total DIY Yes No Total Yes No Total Travel Yes No Total Yes No Total Other Yes No Total 24 46 70 58 12 70 10 60 70 62 8 70 26 44 70 16 54 70 14 56 70 34.3 65.7 100 82.9 17.1 100 14.3 85.7 100 88.6 11.4 100 37.1 62.9 100 22.9 77.1 100 20 80 100 18 52 70 25.7 74.3 100 Percent
Gifts
Groceries
Home Decor
32
Q6
Thinking about your general purchase over the last 3 months which of the following products/services have you bought online?
Frequency Insurance Yes No Total Yes No Total Gifts Yes No Total Yes No Total Groceries Yes No Total Yes No Total Home Decor Yes No Total Yes No Total 8 62 70 12 58 70 32 38 70 2 68 70 6 64 70 16 54 70 2 68 70 14 56 70 Percent 11.4 88.6 100 17.1 82.9 100 45.7 54.3 100 2.9 97.1 100 8.6 91.4 100 22.9 77.1 100 2.9 97.1 100 20 80 100
Entertainment
DIY
Travel
Other
Q7
How likely would you be to purchase hair & beauty products online?
Very likely Somewhat likely Neither likely/unlikely Somewhat unlikely Very unlikely TOTAL Frequency 10 8 10 8 34 70 Percent 14.3 11.4 14.3 11.4 48.6 100
Q8
How likely would you be to purchase hair & beauty services online?
Very likely Somewhat likely Neither likely/unlikely Somewhat unlikely Very unlikely TOTAL Frequency 2 10 6 4 48 70 Percent 2.9 14.3 8.6 5.7 68.6 100
33
Q9
How many times in the past 3 months have you visited the ABC Organisation website?
1x 2x 3x 4x I have never visited TOTAL Frequency 2 2 6 2 58 70 Percent 2.9 2.9 8.6 2.9 82.9 100
Q10
Thinking about your answer to Q9, what was/would be your main reasons for visiting the ABC Organisation website? (?) all that apply
Frequency Product/service information Yes No Total Yes No Total Appointment booking Yes No Total Yes No Total I would not visit the site Yes No Total 30 40 70 10 60 70 28 42 70 10 60 70 32 38 70 Percent 42.9 57.1 100 14.3 85.7 100 40 60 100 14.3 85.7 100 45.7 54.3 100
Product purchase
Price comparison
Q11
Thinking about your answer to Q10, what effect would price promotion have on your decision to buy hair & beauty products online?
Very likely to buy Somewhat likely to buy Neither likely/unlikely to buy Somewhat unlikely to buy Total Missing System TOTAL Frequency 8 10 18 2 38 32 70 Percent 11.4 14.3 25.7 2.9 54.3 45.7 100
Q12
Do you, or have you ever read the IMAG magazine?
Yes No TOTAL Frequency 48 22 70 Percent 68.6 31.4 100
34
Q13
Do you remember reading the editorial offering hair and beauty advice, located in the IMAG magazine?
Yes No Total Missing System TOTAL Frequency 36 18 54 16 70 Percent 51.4 25.7 77.1 22.9 100
Q14
Which of the following ABC Organisation products/services are you aware of?
Frequency St Tropez Tanning Yes No Total Micro-dermabrasion Yes No Total Yes No Total Bridal Hair Yes No Total Yes No Total Yes No Total 44 26 70 14 56 70 54 16 70 24 46 70 46 24 70 4 66 70 62.9 37.1 100 20 80 100 77.1 22.9 100 34.3 65.7 100 65.7 34.3 100 5.7 94.3 100 Percent
Dermalogica Facials
Teeth Whitening
Hypnotherapy
Q15
How did you first learn about teeth whitening at ABC Organisation?
In store poster Conversation with store employee Word of mouth Had not heard about it until today TOTAL Frequency 24 16 6 24 70 Percent 34.3 22.9 8.6 34.3 100
35
Q16
Rate the following promotional tools in terms of how much influence they have on your overall purchasing decisions?
Frequency A special offer leaflet drop to your home No influence at all Little influence Neutral Some influence A substantial influence Total An e-mail newsletter promoting products/services No influence at all Little influence Neutral Some influence A substantial influence Total An invitation to a product launch event No influence at all Little influence Neutral Some influence A substantial influence Total A voucher offering a discount on products/service No influence at all Little influence Neutral Some influence A substantial influence Total A promotional advertisement in a local magazine No influence at all Little influence Neutral Some influence A substantial influence Total A free sample with purchase No influence at all Little influence Neutral Some influence A substantial influence Total 20 14 26 4 6 70 20 12 20 14 4 70 16 16 22 8 8 70 4 20 24 22 70 14 4 22 20 10 70 4 4 18 14 30 70 28.6 20 37.1 5.7 8.6 100 28.6 17.1 28.6 20 5.7 100 22.9 22.9 31.4 11.4 11.4 100 5.7 28.6 34.3 31.4 100 20 5.7 31.4 28.6 14.3 100 5.7 5.7 25.7 20 42.9 100 Percent
Q17
Are you?
Female TOTAL Frequency 70 70 Percent 100 100
36
Q18
What is your age? Frequency
18 to 49 50 to 64 65 to 74 75 to 84 TOTAL 34 22 12 2 70
Percent
48.6 31.4 17.1 2.9 100
Q19
Do you have regular access to the internet?
Yes No TOTAL Frequency 62 8 70 Percent 88.6 11.4 100
Q20
Do you access the internet from
Home Work Both Total Missing System TOTAL Frequency 46 2 14 62 8 70 Percent 65.7 2.9 20 88.6 11.4 100
Q21
How much do you spend a month on hair + beauty products?
£25 and under £26 to £50 £51 to £75 £101 to £15 TOTAL Frequency 42 12 14 2 70 Percent 60 17.1 20 2.9 100
Q22
How much do you spend a month on hair + beauty services?
£25 and under £26 to £50 £51 to £75 £76 to £100 £101 to £150 TOTAL Frequency 20 26 20 2 2 70 Percent 28.6 37.1 28.6 2.9 2.9 100
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CROSS TABULATIONS 1. Product Knowledge vs. Length of Patronage
St Tropez Tanning
Yes (%) 0-3 months 4 -7 months 8 - 11 months 12 months and over Total 5.7 2.9 2.9 51.4 62.9 No (%) 5.7 5.7 2.9 22.9 37.1
Micro-dermabrasion
Yes (%) 0.0 0.0 0.0 20.0 20.0 No (%) 11.4 8.6 5.7 54.3 80.0
Dermalogica Facials
Yes (%) 8.6 8.6 5.7 54.3 77.1 No (%) 2.9 0.0 0.0 20.0 22.9
Bridal Hair
Yes (%) 0.0 0.0 5.7 28.6 34.3 No (%) 11.4 8.6 0.0 45.7 65.7
Teeth Whitening
Yes (%) 8.6 2.9 2.9 45.7 60.0 No (%) 2.9 5.7 2.9 28.6 40.0
Hypnotherapy
Yes (%) 0.0 0.0 0.0 5.7 5.7 No (%) 11.4 8.6 5.7 68.6 94.3
2. ABC Organisation IMAG Advertorials
St Tropez Tanning
Yes (%) Yes No Total 3. 29.6 25.9 55.6 No (%) 37.0 7.4 44.4
Micro-dermabrasion Dermalogica Facials
Yes (%) 3.7 14.8 18.5 No (%) 63.0 18.5 81.5 Yes (%) 48.1 25.9 74.1 No (%) 18.5 7.4 25.9
Bridal Hair
Yes (%) 14.8 18.5 33.3 No (%) 51.9 14.8 66.7
Teeth Whitening
Yes (%) 25.9 22.2 48.1 No (%) 40.7 11.1 51.9
Hypnotherapy
Yes (%) 0.0 7.4 7.4 No (%) 66.7 25.9 92.6
Product knowledge of customers whose needs are not fully met by ABC Organisation
St Tropez Tanning
Yes (%) Yes No Total 28.6 34.3 62.9 No (%) 17.1 20.0 37.1
Micro-dermabrasion Dermalogica Facials
Yes (%) 11.4 8.6 20.0 No (%) 34.3 45.7 80.0 Yes (%) 31.4 45.7 77.1 No (%) 14.3 8.6 22.9
Bridal Hair
Yes (%) 14.3 20.0 34.3 No (%) 31.4 34.3 65.7
Teeth Whitening
Yes (%) 31.4 28.6 60.0 No (%) 14.3 25.7 40.0
Hypnotherapy
Yes (%) 5.7 0.0 5.7 No (%) 40.0 54.3 94.3
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