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CHAPTER-1

INTRODUCTION

1.1 Introduction to advertisement

The word advertising is derived from the Latin words "Ad" and 'Verto' where ad
means towards and verto means I turn. So the literal meaning of advertising is to
turn people's interest to specific things. Advertising is any paid form of non
personal communication by an identified sponsor about an organization, product,
service or ideas. Non-personal component means there is involvement of mass
media that can transmit message to the large group of individuals, often at the
same time and the paid aspect of this definition reflects the fact that the space or
time for the advertisement must be bought except in the public Service
Announcement. The medias may be indoor medias (Newspaper, journals, Radios,
TV, Films), outdoor medias((billboards, outdoor displays), direct media(Internet,
direct mail, gifts), display media(point of purchase display, showroom
exhibitions)

1.2 Introduction to sales promotion

Sales promotion consists of a diverse collection of incentive tools, mostly short


term, designed to stimulate quicker and / or greater purchase of particular
products/services by consumers or the trade. Sales Promotion is an important
method of promotion which supplements personal selling and advertising effects.
According to American Marketing Association "Sales promotion includes
marketing activities, other than personal selling, advertising such as displays,
shows and expositions, demonstrations and various non-recurring selling efforts
not in the ordinary routine." Sales promotion includes free samples, premium on
sales, sales and dealer incentives, contests, fair and exhibition public relations
activities etc. Sales promotion are those activities, other than advertising and
personal selling and stimulates market demand for products. The basic purpose is
to stimulate on the spot buying by prospective customers through short term
incentives. These incentives are essentially temporary and no-recurring in nature

1.3 Introduction to Micro Net Cyber and Automation Home

Micro Net Cyber and Automation Home (MNCAH) was established in


June 5, 2001 and it is situated in Hong Kong Bazaar, at Narayangarh, Chitwan. It
not only providing effective mass communication but also sells computer’s parts
and maintenance in cheap price. Every company, to survive in this cutting edge
competitiveness, has to use the techniques that will attract more and more
customers. Likely, Micro Net Cyber and Automation Home being no exception,
uses advertising and sales promotion, the most common tools companies use to
direct persuasive communication to target buyers and publics to maximize profit,
maximize distribution and for the existence of organization properly.. For
developing the program, Micro Net Cyber and Automation Home uses the five

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Ms decision (i.e. mission, money, message , media and measurement).Realizing
the importance of advertisement and sales promotion Micro Net Cyber and
Automation Home includes the sales promotion tools for consumer promotion i.e.
coupons, cash refund offer, price off, prize, warranties and demonstration. For the
advertisements it uses the local radios, newspaper and visual medias. Advertising
and sales promotion is one of the essential elements for promoting the business.
So, demand of advertising sales promotion is increasing day by day in the field of
commercial and merchandising sector.

Small businessman has to appreciate this technique to increase their


business. If he may provide good products at the reasonable price with attracting
package and effective advertisement, then it will be attract the large number of
customer. Otherwise the customers may be unknown about the product which
may result in less profit. Therefore, effective advertising and sales promotion
plays the significant role for establishing the relationship between producer and
customers. Thus, advertisement can creates new clients and keep sound
relationship between organizations and consumers. So advertisement is not only
expenditure but also company’s property for maximize the income. Therefore,
every small business as well as large business organization can use advertising
and sales promotion techniques to make reliable on time.

1.4 Scope of study:

Small business entrepreneurship has a different place and is regarded as the


important organization of any country. So as a student of business or management
one should acquire the knowledge of these fields as much as possible. To fulfill
this important necessity we decided to conduct a research in one of the business
organization and selected Micro Net Cyber and Automation Home being
impressed by its operational as well as technical progress.
The present scenario is heading towards globalization at unexpected rate. It’s very
tough to anticipate all the concern area for the study because we are restricted by
certain constraints i.e. lack of knowledge, enough resources, time and efforts. So,
I have only considered the study on marketing aspects of Micro Net Cyber and
Automation Home instead of financial area. I have limited or specify the area to
be studies i.e. only Narayangadh. The main intention or scope of study is to
expose the criteria of promoting sales and advertisement of MNCAH.

1.5 Purpose of study

First of all, I am introducing myself as a student of BBA. This study plays


the vital role in observing the real scenario of business world. To make myself
very talent and acquire the relevant information about the various factors, this
study will become the means.

In our society, there are living different classes of people who use different brand
of product on the basis of durability, quality, price and reliability. So, it is

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necessary to find out the cause. From this study, the producer, manufacturer,
whole seller and retailer may take some benefit to run the smooth functioning for
long-lasting. Thus, it indicates that it is not one time activities.

Similarly, the different advertisement agencies can take the benefit form this study while
to inform the people about the different types of products. As a result, they are easily
marketed in the market and also inform show much market shares are covered it.

Finally, consumer can take the decision to buy the product in different brands very easily.
They are never confused about the product and their service while using it. Thus, there
may be brand preference and also loyalty on the good products and services.
There are certain objectives behind to do any kinds of work. These are help to the
organization for achieving its goals. So, it is necessary to get the benefit. The main
purposes of the study are given below:

1. To evaluate and analyze the advertising and sales promotion of MNCAH.

2. To develop the practical knowledge and skill in process of collecting, analyzing,


and interpretation of data.

3. To gain the knowledge about the business activities for businessman and student.

4. To find out the causes of success in the organization.

5. To know whether sales is affected when alteration in advertising and promotion is


done.

6. To fulfill the partial requirement sectorial area for degree of Bachelor of Business
Administration 4th semester in the subject of fieldwork writing

1.6 Statement of Problem

The problem towards which our study is directed is influence of the advertising and sales
promotion on the sales and the market coverage of MNCAH . The study has concentrated
on giving answer to the questions of the following problems.

1. What is the purpose of MNCAH established?

2. What kind of tools and techniques are used for advertisement and sales
promotion?

3. How is the sales affected due to change in the form and amount of advertisement
and promotion?

4. Whether the techniques have been effective to cover the larger market or not?

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5. What are the product and services offered by the firm and the techniques used for
their effective selling?

So due to the change in the competition in local level and the survival of the fittest theory
working , has compelled the firms to use different techniques and tools like advertising
and sales promotion so that they will be accepted in any tough market and run
successfully.

1.7 Limitation of the study

Limitations are the constraints that hinders from achieving the goal to the fullest
potential. To analyze any subject matter there should be sufficient means and time so
source and time inefficiencies are important limitation of the study. The limitation under
which the research is prepared is as fallows.

I. The information are based on the information provided by the office members so
the figures may be actual or not.

II. It lacks the complete and reliable information about the schemes of promotion and
advertisement due to privacy limitation.

III. The figures presented are approximate as per provided by him due to the financial
privacy reasons.

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CHAPTER-2
LITERATURE REVIEW

Literature review is a process in which a synopsis of available literature on the


current subject is presented in a systematic manner. Advertisement and sales promotion
are basically the two important features used to promote the sale of the product.
2.1) Advertising
Advertising is an art used to familiarize public with the product by informing of
its description uses, its superiority over other brands, sources of its availability and price
etc. advertising is not only merely a propaganda but it is a paid form of communication.
The advertisers have to pay for the space and time used to communicate the message to
his customers. A basic responsibility of a marketing manager is to ensure that the
company’s message reach its potential customers. A main method by which companies
deliver their message to group of customers and, in fact, make there initial contacts with
most potential customers is through advertising. Advertising is a powerful tool which
individuals, business and non- business organizations use for informing persuading and
reminding their target audiences. Various authors have defined advertising in the
following ways:

“ Advertising has been defined as the dissemination of information concerning


an idea, services or products to compel action in accordance with the interest
of advertisers”. By, M. Banerjee.

“Advertising consists of all the activities involved in presenting to a group,


a non-personal, oral or visual, openly sponsored message regarding a product
or services, or idea”. By, Stanton.

Main objectives of advertisement:

1. To create a demand for new products by explaining it’s utility


2. To announce a new product or service
3. To increase its sales by attracting new customers and expand the market.
4. To create brand preferences
5. To assist the salesmen in their selling efforts
6. To enhance the goodwill of the firm
7. To neutralize the competitors advertising
8. To warn the customer against the imitation of the product.

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2.2) Sales promotion:

The main aim of any business is to earn maximum profit and this is possible only through
maximum sales. The maximum sales can be achieved by using various techniques of
sales promotion. Sales promotion includes those marketing activities, other then personal
selling, advertising and publicity, that stimulates consumers purchasing and dealers
effectiveness such as window display, shows and expositions, demonstrations etc. Sales
promotion is concerned with the creation, application and dissemination of materials and
techniques that supplement advertising and personal selling. Sales promotion makes use
of direct mail, catalogues, trade shows, sales contents, premiums, samples, window
display and other aids. Its purpose is to sell a certain brands and to make consumers more
eager to buy that brand. Personal selling and advertising do include prospects to make
their decisions. ‘Sales promotion provides an extra stimulus’.

According to various authors sales promotion can be defined as: -

“Sales promotion means any step that are taken for the purpose of obtaining an increased
sales” By, A. H. R. Delens

“Sales promotion as a tool of market promotion gives rise to increase in production usage
as well as expansion of market for a product or introduction of a new product” By, John.
L. Luickkand and William Lee Ziegler.

Objectives of sales promotion:

To influence the customer for purchasing the product or service instantly because the
sales promotion time is very limited and if the customer does not respond to it quickly,
they may lose the offer. It increases the sales directly by publicity through media that are
complementary to the press and poster advertising. Some of the objectives are:

1) To introduce new product

2) To attract new customers

3) To face the competition effectively

4) To maintain old customers

5) To improve public image of the firm

6) To popularize the brand name of the product

7) To induce customer to purchase more items

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CHAPTER-3
RESEARCH METHODOLOGY

Research methodology refers to the way of collecting, tabulating and analyzing the data
for research work. It helps in carrying out the entire research work in desired way. In
order to achieve the objectives of the study, the major contents of research methodology
include the following:

3.1 Research Design


Research design is a systematic search of a particular subject. It is the in-depth
study of a certain subject or area of investigation, which is supported by the collection,
compilation, presentation and interpretation of relevant and data. Such researches are
conducted to in order to analyze the current situation and draw relevant conclusions from
the findings within the norms of evaluation research. For the effective and more reliable
findings, the study is both explanatory and exploratory. This study tries to show the
relationship between the sales and advertisement & sales promotion.

3.2 Population Size and Sample Unit


The term population means all the members of any well defined class of people. Among
different advertising sources I took only four medias i.e. Fm medias, Visual medias,
Outdoor Board Painting and consumer promotion scheme. Likely to know the sales
figure I took six samples i.e. sell of monitor, keyboard, Cpu, Ups, laptop and
miscellaneous items. This covers the advertisements and sales that Micro Net Cyber and
Automation covers.

3.3 Nature and Source of Data


Data collection procedure depends upon the size of the organization, nature of the
information requirement and the objective of the study. Both primary as well as
secondary data are essential and collected for the effective study of the subject.
But for our study we need not to go for the secondary data as all the information
needed were given by the owner of the MNCAH. During the study, the data are of
primary type. Primary data are the original data, which are connected through
personal visits, questionnaire and brochures of the project. For the purpose of

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collection of primary data, a set of questionnaire was prepared and direct personal
interview was conducted. .

3.4 Data Analysis Tools and Techniques


The analysis of the data on activities of profit organizations can be done by using
various tools and techniques. The use of such tools and techniques depends upon the
depth and scope of the study. Simple statistical tools are used in the presentation of the
report. Some statistical tools with used are:
• Multiple Bar diagram
• Pie chart
• Trend Diagram
• Z- test
• Karl Pearson’s correlation coefficient

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CHAPTER-4
PRESENTATION AND ANALYSIS OF DATA

4.1 Presentation And Analysis of Data:


For preparing the field work report, first of all it is necessary to have the actual required
data for the attractive figure and diagram.
The figure obtain form the collected data do not give the special meaning unless
explanation is made. So, analysis of data and table is necessary for the meaningful study.
Thus the relevant data and figure need to be analyzed to give a meaning and to
maintain the sound relation between product and consumer.

Form the available data, the researcher could analyze the data by using statistical tools.
Among these statistical tools, test of hypothesis is very important for systematic study of
this organization. The available data are presented in the table, chart and graph. These are
collected form primary sources with of the proprietor of organization. From this purpose,
the researcher would like to use descriptive and statistical techniques. The table, bar
diagram, pie charts is presented by using analytical instrument.

4.1.1 Budget for advertisement and sales promotion at the fiscal year 2004 to 2009 AD

After determining the advertising objectives and its market coverage, Micro Net Cyber
and Automation Home proceeds to establish its advertising budget for every fiscal year.
The budget along with the distribution amounts are shown in following table for
advertising and sales promotion at the fiscal year 2004 to 2009 in different media. The
respective figure of data is given below table.
Table number 1:
Budget for advertisement and sales promotion

Year Fm Radios Visual Outdoor Consumer Total


Media Board Promotion Advertisement
Painting Scheme expenses
2004 50,000 20,000 20,000 35,000 1,25,000
2005 80,000 25,000 15,000 30,000 1,50,000
2006 81,000 28,000 26,000 40,000 1,75,000
2007 90,000 31,000 24,000 39,000 1,84,000
2008 1,05,000 35,000 29,000 45,000 2,14,000
2009 1,20,000 41,000 32,000 50,000 2,43,000

Total budget for advertisement of Micro Net Cyber & Automation Home in different
media allocated Rs. 90,000 and for sales promotion of Rs. 35,000 in the year 2004.
Similarly, budget for advertisement of Net Cyber & Automation Home indifferent media
allocated Rs. 1,93,000 and for sales promotion of Rs.50,000 at the last year 2009 AD.
Due to profit making organization, it is able to increase its sales in different region and

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also provides efficient service to its clients. As a result, it was able to earn large amount
of profit.
According to table no.1, MNCAH spent the total amount of Rs. 10,91,000 for advertising
and sales promotion in different media. The amount of Rs.5,26,000 is allocated for
different Fm radios,Rs1,80,000 for audio-visual media, 146000 for out door board
painting and Rs. 2,39,000 for consumer promotion scheme respectively at the fiscal year
2004 to 2009 AD. It can be shown in the bar diagram as below.
.

Figure 1; Bar Diagram showing the allocation of advertising


and sales promotion on different medias from 2004 to 2009

140,000
120,000
Fm Radios
Amount(Rs)

100,000
80,000 Visual Media
60,000 Outdoor Board Painting
40,000 Consumer Promotion Scheme
20,000
0
2004 2005 2006 2007 2008 2009
Year

4.1.2 Expected sales of MNCAH in Narayani and lumbini region as the fiscal year
2004 to 2009 A.D (amount in Rs.)
Table number 2

Year Monitor Keyboard Cpu Ups Laptop Miscellaneous Total


200 3,00,000 40,000 3,00,00 2,00,00 4,00,000 10,00,000
4 0 0 22,40,000
200 8,00,000 1,00,000 7,00,00 4,50,00 5,20,000 12,00,000
5 0 0 37,70,000
200 10,00,00 1,50,000 6,00,00 5,00,00 8,00,000 15,00,000
6 0 0 0 45,50,000
200 9,00,000 1,80,000 6,50000 3,75,00 10,00,00 13,00,000
7 0 0 44,05,000
200 11,00,00 20,000 7,00,00 4,00,00 12,00,00 18,00,000
8 0 0 0 0 54,00,000
200 12,00,00 3,00,000 9,00,00 7,00,00 16,50,00 17,50,000
9 0 0 0 0 65,00,000
Grand total 2,68,65,000

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Table no.2 shows the expected sales of computer parts in Narayani and Lumbini Region
over the six fiscal year of MNCAH. It has expected the sales of monitor of Rs 3,00,000,
keyboard of Rs 40,000, CPU of 3,00,000,UPS of Rs 2,00,000, Laptops of Rs 4,00,000
and Miscellaneous parts of Rs10,00,000 respectively at the year 2004.Likely, it has
projected the sales of monitor to amount Rs 12,00,000, of keyboard to amount Rs
3,00,000, of CPU to amount 9,00,000, of UPS to amount 7,00,000, of laptop to be
16,50,000 and amount of 17,50,000 of miscellaneous parts, in the fiscal year 2009.The
reason for keeping expected sales is to know the effect of the advertisement and sales
promotion on sales. It acts as the standard for comparison with the actual achievement. It
can be shown in the pie chart as fallow.

Figure2;Expected sales

Monitor
Keyboard
Cpu
Ups
Laptop
Miscellaneous

4.1.3 Actual Achievement of expected sales of MNCAH in Narayani and Lumbini


Region from 2004-2009
Table number 3
Year Monitor Keyboard Cpu Ups Laptop Miscellaneous Total
200 2,50,000 45,000 2,50,00 2,00,00 4,10,000 8,00,000 19,55,000
4 0 0
200 5,00,000 80,000 7,00,00 3,55,00 6,00,000 9,00,000 31,35,000
5 0 0
200 9,00,000 1,20,000 4,50,00 4,50,00 7,50,000 10,00,000 36,70,000
6 0 0
200 8,00,000 1,60,000 6,55,00 3,50,00 10,00,00 12,00,000 41,65,000
7 0 0 0
200 10,00,00 1,90,000 7,00,00 4,10,00 13,00,00 15,00,000 51,00,000
8 0 0 0 0
200 11,00,00 2,60,000 8,00,00 7,50,00 15,00,00 14,00,000 58,10,000
9 0 0 0 0

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Table no.3 shows that the actual achievement (sales) in computer parts in Narayani and
Lumbini Region at the six fiscal year of MNCAH. The sales amounted to Rs. 19,55,000
in the first year 2004,Rs 31,35,000 in the fiscal year 2005, Rs 36,70,000 in the fiscal year
2006,Rs 4165000 in the year 2007, Rs 51,00,000 in 2007 and the sales of 58,10,000 in
the last fiscal year 2009.The following pie chat shows the actual achievement of the
above presented table.

figure 3;Actual achievement of sales

Monitor
Keyboard
Cpu
Ups
Laptop
Miscellaneous

4.2 Profit Trend in last six years of MNCAH

Micro-net cyber automation home is running in profit form its establishment year
2001\2002. In spite of intense competition with other profit making organization, it is
able to earn the operating profit of Rs.40000. In the establishment year and went on in
the increasing trend up to Rs. 225000 in the year 2005\2006.
Table number 4
Profit Trend
Year Profit in (Rs) % increase in profit over 5
years
2004 50000 -
2005 80000 60
2006 120000 50
2007 150000 25
2008 168000 12
2009 230000 36.9

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Table no 4 shows the profit trend of MNCAH. It was able to earn the highest profit of Rs.
230,000 at end of the last fiscal year 2009 but increase in profit ratio was very much
fluctuating. In the year 2005profit was 60% whereas in 2006 it was 50%.It slides down to
25% in 2007 and became worst in 2008, just 12%.But regained the profit of 36.9% in the
fiscal year 2009.According to the owner the reason for such fluctuations was the political
insurgency, time and again strikes and bandas, donation demand by the rebel group and
increasing operating cost along with the increase in the cost of products resulting in low
profit margin.

Figure4;Profit trend

70
60
50
% change

40
30
20
10
0
2004 2005 2006 2007 2008 2009
Year

The trend above shows the fluctuation occurred in the profit in different years. In 2005 it
was 60%, in 2006 it dropped to 50% whereas in 2007 and 2008 it seriously dropped to
25% and 12%.But in the recent year 2009 it rose up to 36.9%The trend shows how the
firm has come along the different situations.

4.2.1 Calculation of percentage increase in profit over 5 years to MNCAH:


Formulae:
Percentage increase in profit per year:
=Amount of succeeding year-Amount of previous year ×100
Amount of previous year

For 2005: 80000-50000/50000*100=60%


For 2006: 120000-80000/80000*100=50%
For 2007: 150000-120000/120000*100=25%
For 2008: 168000-150000/150000*100=12%
For 2009: 230000-168000/168000*100=36.90%

We conclude that Micro-net cyber and automation home is running in profit from its year
2004\5. In spite of intense competition with other profit making organization, it was able

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to earn the operating profit of Rs. 50,000 in the year 2004 and went on in the increasing
trend up to Rs. 2, 30,000 in the year 2008/2009.

Thus, in this competitive market, MNCAH established as a small business by adopting


new advanced technology and by its reliable service to the customer. Due to these
technologies and techniques, it is able to allocate the large amount on advertising and
sales promotion. Therefore, advertising and sales promotion plays vital role in success of
small business.

4.3 Test of hypothesis:

The organization sells computer sets in two different regions (Narayani and Lumbini
region). The organization claims that the average sales per sales agent is 50 computers
sets per month with standard deviation of 10. As for an experiment 40 agents were sent
for 2 months experimenting sales on door to door sales program help of the expert ,
return to their program and their selling procedure was carefully monitored. At the end of
this period, the average sales of an agent were found to be 54 computer sets per month.
Can we conclude at 5% level of significance that there has been significant increase in
the average sales per agent per month?
In usual notations are conducted:
n=40, µ=50, ρ=10, X=54

1. Setup of hypothesis:

Null hypothesis Ho: µ=50 the average sales of computer sets per agent are not
significantly more than 50.
Alternative hypothesis H1: µ>50 the average sales of computer sets per agent
are significantly more than 50.

2. Test statistic:
X-µ
Z=
ρ / √n

= 54-50
10/√40

= -2.529

Zcal =2.529

3. Level of Significant: (one tailed);

α= 0.05
Zα= 1.645

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4. Critical value:
Zα= 1.645

The critical value of Z at 5% level of significance for one tail test is 1.645
from the table.

5. Decision:
Zcal > Ztab

So, H0 is rejected

H1 is accepted

Conclusion:
Since, the calculated value is greater than tabulated value. So null hypothesis can’t be
accepted and alternative hypothesis is true.

So, we can conclude form the above hypothesis test that there is a significant increase in
the average sales per agent per month than the organization’s claim of 50 Computer sets
per month per agent in two different regions

4.4 Karl Pearson’s correlation of coefficient

Karl Pearson’s correlation of coefficient is the mathematical method for measuring the
degree of association between the two variable say ‘X” and “Y”. the formulae for
calculating Karl Pearson’s correlation of coefficient is given below:

∑xy
r=
√∑ x2 × √∑y2
where x =X - X
y= Y - Y
Value of r is always between -1 and +1
+1 denotes the perfect positive correlation between two variables.
-1 denote the perfect negative correlation between the two variables.

We can calculate the correlation coefficient between sales and advertisement budget of
MNCAH as below.

Correlation between sales and advertisement budget in lakhs

Year Actual Advertisement x=(X- y=(Y- x2 y2 xy


sales(X) Budget(Y) X) Y)
2002 19.55 1.25 - -0.56 407.030 0.3136 11.298
20.17

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2003 31.35 1.50 -8.375 -0.31 70.140 0.0961 2.596
2004 36.70 1.75 -3.025 -0.06 9.150 0.0036 0.1815
2005 41.65 1.84 1.925 0.03 3.705 0.0009 0.0577
2006 51.00 2.14 11.27 0.33 127.125 0.1089 3.7207
5
2007 58.10 2.43 18.37 0.66 337.640 0.3844 11.3925
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Total ΣX=238.35 ΣY=10.91 Σx2=954.79 Σy2=0.9075 Σxy=29.2464

Where,

X=∑X/N
=238.35/6
=39.72

Y=∑Y/N
=10.91/6
=1.81

Now,
∑xy
r =
√∑ x2 × √∑y2

= 29.2464
√954.79 * √0.9075

= 0.9935

From the above coefficient correlation, r= 0.9935, which is nearest to +1. It can be
painstaking as high positive correlation indicates that the degree of correlation between
the actual sales and advertisement is high. This means as the advertisement budget
increases, sales will also increase accordingly. This shows how the advertisement affects
the sales of the firm .

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CHAPTER-5
SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY

Micro net cyber and automation home is a business organization which provides world
wide communication facility to the public. It is both profit making and service oriented
organization. From this research we can say that there are lots of benefits of the sales
promotion to the business organizations as well as producers. It sales the best computer
parts with effective counseling at the reasonable price to its clients. It has two target
markets where it allocates the large volume of amount in different medias for advertising
and sales promotion. Advertisement helps the customer to choose the right product in the
right time at the reasonable price. Advertisement provides the information to the people
about the product such as how to use the product, when to use, why to use, what benefits
are undertaken.. It also adopts these advance technologies for advertising and sales
promotion and also to run the business very smoothly.
We can also see that advertising and sales promotion techniques are very much
effective to increase the sales. The total budget of Rs. 10,91,000 has been allocated for
the advertising and sales promotion over the six fiscal years which seems to be thoughtful
investment from the sales achieved over that period. The profit trend in the organization
was very much fluctuating i.e. it was 60% in 2004 whereas in 2008 it declined to 12%
and in 2009 it rose to 36.9%.From the test of the hypothesis it is seen that the average
sales of the computer is greater than 50.Likely the correlation coefficient is positive
i.e.0.9935 which suggests that sales increases according to the increase in the
advertisement.

5.2 CONCLUSION

From the analysis of the collected data, we can say that MNCAH is profit making
organization even though the profit rate is fluctuating every year. From the period of its
establishment to till now it is running in profit despite the difficult situations in the
country. It has two main market, Narayani Region and Lumbini Region for selling the
products like monitor, UPS, keyboard and alike.
The major findings are as fallow.

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• Advertisement and sales promotion, though regarded as an expenditure, is a
powerful tool to win the faith of the public..
• Advertisement and sales promotion creates extra attention to the customers to
make purchase as the firm uses both audio and visual medium of the
advertisement and sales promotion. As a result customers are more loyal to the
firm.
• It directly affects the volume of the sales as we see above that increase in
advertisement and promotion has increased the sales.
• Without promotional tools it is very hard to attract the customers towards any
kind of product due to the fierce competition for price and greater market size.
• It makes a bond between consumer and product by providing relevant information
for the product such as how to use, what is the purpose, from where to get the
product and its advantages and disadvantages.
• In the process it was found out that the proprietor has positive attitude towards the
advertising and promotion and believed that it motivates the sales.

To conclude we can say that thee market competition is increasing so to be the market
leader the firm needs to understand the importance of the advertisement and sales
promotion. Such acts will impart the positive feelings of the consumers to the product
and services and the company rendering such product and services.

RECOMMENDATION

From the study it was found out that MNAC has to improve itself in several areas as it
has many shortcomings.
• MNAC only uses the local Medias for the advertisement due to which all level of
the target customers has not been covered. It should also focus in Lumbini region
through the advertisement in there.
• Broadcasting of the advertisement has not been proper so it should be made
regular and proper.
• In urban areas, electronic media is effective but in rural areas it should be done
through road dramas and special campaign.
• The firm should open the computer education center to its regular clients so that
they remain loyal and the firm may have extra income from that.
• The advertising should be creative that will attract more customers.
• Motivation to the sales forces should be done.

At last, I wish very success of MICRO NET CYBER AND AUTOMATION for future. I
hope that it will launch more products among the massive clients who will accept the
products with open heart.

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BIBLIOGRAPHY

Amatya, Surendra and Keshav,(2049 B.S), “Sales and Advertising


Management”,published by Deepa Amatya.

Kather,B.S (2056) “Advertising management” Himalayan publishing house.

Kottler, Philip (1997 A.D) “Marketing Management” analysis, planning, implementation


and control, Prentice hall of India Pvt.

Stanton, William J.(1994 A.D) “Fundamental of marketing” Mc Grew hill Book


Company Ltd.

Wolff, H.K and Panta, P.R (1975) “A Handbook for Social Science Research and Thesis
Writing” Katmandu: Research Division, Tribhuvan University.

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QUESTIONAIRES

Name of the Respondent: …….. Age:


Address: …………….. Sex:
The Questionnaires through which the primary data were collected are as fallow.

1. When is Micro Net Cyber established?

2. What is the main purpose of the firm?

3. What kind of products do MNCAH sell?


a. Monitor
b. Ups
c. Cpu
d. Laptops
e. Keyboard
f. Miscellaneous
g. All of them

4. What kinds of tools and techniques are used for advertisement by MNCAH?
a. Visual Media
b. Fm radios
c. Out Board Painting
d. Consumer Promotion Scheme
e. Combination of above all

5. Where is MNCAH located?

6. What are the allocated budget for the Advertisement and Sales Promotion in
different year under different tools and techniques?

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Year Fm Radios Visual Outdoor Consumer Total
Media Board Promotion Advertisement
Painting Scheme expenses
2004
2005
2006
2007
2008
2009

7. What were the expected sales on different headings of MNCAH as ticked


above?

Year Keyboard Laptops Monitor Cpu Miscellaneous Ups


2004
2005
2006
2007
2008
2009

8.What were the actual sales on different headings of MNCAH as ticked above?

Year Keyboard Laptops Monitor Cpu Miscellaneous Ups


2004
2005
2006
2007
2008
2009

9. What is the average sales of Computer per month?


a. 30
b. 45
c. 50
d. 55
10. Was the advertisement and the sales promotion useful for the business?
a. Yes
b. No

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