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EXAMINING OF PROMOTION MIX SITUATION AND RELATIONSHIP BETWEEN PROMOTION MIX FACTORS WITH CUSTOMER ACQUISITION IN
THE BANK Mohammadbagher Gorji1
Department of Management, Aliabad Katoul Branch, Islamic AzadUniversity, Aliabad Katoul, Iran, E-mail: [email protected]
Sayyed Mohammad Bagheri Ph.D Samira Heydari
Executive master of Business Administration
ABSTRACT- The objective of the current paper is to examine promotion mix existing
situation and relationship between each promotion mix factors with Customer Acquisition in the bank. Methodology is functional objectively and is of measurable or correlation kind. The examining society consists of 115 people of employees and 410 people of customers that were selected by simple random sampling method. Collecting data method consists of three questionnaires. The first is to determine promotion mix existing situation. The second is to examine the relationship between promotion mix factors with Customer Acquisition (CA) and the third is to determine the rate of Customer Acquisition. Questionnaires currency has been confirmed in content and resistant method using of Cronbach index method and with resistance of 0/893 , 0/894 , and 0/924 ,respectively. For data analysis has been used of Pearson correlation and also factorial analysis. The founding’s of this research showed that there is a relationship between promotion mix components (advertising, sales promotion, personal selling, and public relation). With Customer Acquisition (CA) .Promotion mix existing situation is in the form of advertising, selling, sale promotion, public relation.
KeyWords: advertising, personal selling, sales promotion, public relation, Customer
Acquisition
INTRODUCTION
In during years, the number of competitors increased with growing retail selling market. Promotion is often an usable strategy for companies that keeps a competitive advantage. The main four tools which are often used in a market include: sales promotion and public
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retention (Hsu et al,2009 ). since 1960 , marketing often has been reflexes axial from the point of customer , and its importance has changed from short time trades to long time trades with its customers . In fact, marketing should appear as an investment which leads to increase in acceptance and Customers Acquisition and sales promotion.
Many studies emphasizes on advantages Customer Acquisition. Gapt a et al showed that one percent improvement on Customer Acquisition rapids five percent in company value and similarly Richald and Saver showed increasing five percent in Customer Acquisition increase from %25 to %85 company profitability (Hidalgo et al , 2008). According mentioned documents using of a suitable promotion mix is a method of Customer Acquisition in each organization such as banks. Regarding to the effect of promotion mix factors (advertising , sale promotion , personal selling , public relation ) for Customer Acquisition , so designed question in the current paper is that are there any relationship between promotion mix with Customer Acquisition in the bank?
PROMOTION MIX
Promotion is a set of actions which the organization do to establish relation with required parts in required market and their influence for better place of productions and services and thus plays an very important role in politics promotion and company marketing methods like relation with customers , introduction of new productions , transformation and change of customers , speakers opinion with respect to the company and its commercial name ( Raghubir , 1999 ). In other words, promotion is a communicative means in marketing mix that includes the following factors in the form of promotion mix.
THE FIRST FACTOR : ADVERTISING
Advertising is very kind of impersonal relations about an organization , goods , service , and or opinion that a special employer has spent money for its crossing of a mass media and for its achieving to a large group of speakers. Advertising reduces obstacles between customers and agency (Blech, 2001 ; Lopez et al , 2002) . Advertising is one of the most communicative tools for the people who want to sell a production or want to serve somebody. (scutaru , 2010)
THE SECOND FACTOR : SALES PROMOTION
Bolt Berg (1990) has defined sales promotion in this manner : an activity that focuses on marketing events and its objective is that to effect consumers directly (Srinivasan , Anderson , 1998) . A relatively practical definition of sales promotion is :
Marketing activities that usually is special to period of time , place , or group of customers that promotes a direct response of a customer or marketing mediator via giving additional advantages (Peattie , 1995 ) .Also , sales promotion means a set of different and often short- time motivator tools use in order to promote commercial consumers or buyers to buy goods or services more rapidly (Neslin , 2002; Gupta , 1998) . This tool is attractive for managers who continues the results to increase sale in short time .(Neslin ,2002)
263 THE THIRD FACTOR : PUBLIC RELATION
Katlip (1971) defines public relation in his popular book which is called “effective public relation” like: pubic relation is a programmed effort for influence in public opinion via acceptable work and action and bilateralism. Muryarti states that public relation means an impersonal promotion of request one production, service or commercial unit via publication of important and positive commercial news in organizations without the company pay certain money and includes creating of desired relations with different societies that work in company , via getting a good reputation , establishment a suitable general metal image or solve the unsuitable problems , gossips , traditions , and events (Moriartty , 2001 ).
THE FOURTH FACTOR : PERSONAL SELLING
Personal sellers include of establishment effective relationship between the required customers with giving information about production , service , opinion , and the like of these to potential buyers for selling production and service .(Glezer , Weiss , 1993) in spite of other components promotion (advertising , public relation , and sales promotion ) . Personal selling creates profitability for economics directly (Bubjevic , 2011).Selling force is an executive arm of organizations in Customer Acquisition and selling of goods service. All efforts of different units are summarized in the result and action of selling force (Holmez , Srivastaca , 2002) .
CUSTOMRER ACQUISITION (CA)
Customer Acquisition (CA) refers to success of company in achievement profitable new customers . Morover , with changes Customer Retention achievement new customers is very important in marketing activities. Subject of Customer Retention refers to company success in existing Customer Retention .With the appearance of relational marketing , care of marketing has changed from achieving new customers to existing Customer Retention . Customer Satisfaction (CS) is a general evaluation of customer about production or service test . Customers Satisfaction is a cleavage between customer expectations and perceived action of production . The objective of management activities of with customer is to satisfy customers demands . Customer Loyalty (CL) that can develope management of relationship with customer (Oztaysi et al , 2011) . In fact , Customer Loyalty has a relationship with Customer Customer Acquisition From the point of suppliers , loyal customer service is the main way for profitability . Customer Retention refers to whether customer wants to continue business with service suppliers or he/she wants to buy repeated commercial mark? Customer Loyalty is defined as Customer Acquisition or background for repeat buy of this company . In fact , Customer Loyalty has a strong relationship with
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Customer Acquisition. From the point of suppliers , Customer Loyalty service is the main way for profitability. Other studies show that satisfaction affects Customer Retention . Satisfaction is generally an important determinative factor about repeat selling and positive speech relation and Customer Loyalty . Satisfied customers return to buy more and tell other persons to test their and this results to strong comparative situation and consequently higher share and profit in market (Kim & Kwon , 2012).
AND RESEARCH HYPOTHESISES
The main objective of performance current research plan is examining and determining relationship between mix factor and Customer Acquisition in Keshavarzi Bank of Golestan Province and also determining a existing promotion mix model for Keshavarzi Bank of Golestan Province as is inferred of its topic . Thus , for achieving this main objective , the following objective is continued :
1- Examining and determining the relationship between advertizing and Customer Acquisition in Keshavarzi Bank of Golestan Province .
2- Examining and determining the relationship between sales promotion and Customer Acquisition in Keshavarzi Bank of Golestan Province .
3- Examining and determining the relationship between public relation and Customer Acquisition in Keshavarzi Bank of Golestan Province.
4- Examining and determining the relationship between personal selling and Customer Acquisition in Keshavarzi Bank of Golestan Province .
For examining research objectives have been presented four hypothesizes as follows: 1- There is a relationship between advertising and Customer Acquisition in Keshavarzi
Bank.
2- There is a relationship between sales promotion and Customer Acquisition in Keshavarzi Bank .
3- There is a relationship between public relationship and Customer Acquisition in Keshavarzi Bank .
4- There is a relationship between public relation and Customer Acquisition in Keshavarzi Bank .
METHODOLOGY
The current methodology is of measurable and correlation an Is functional objectively . The current society includes of all Keshavarzi Bank employees of Golestan Province in Iran that consists of 185 people and ban customers are 410 people . Data collection tools include of 3 questionnaires , the one is for determining promotion mix situation , another is for determining the relationship between promotion mix factors with Customer Acquisition and the third is for determining Customer Satisfaction from bank action that have been adjusted based on Likert Spectre .
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Tools currency with continent method and their resistance been determined by Kronbakh Alfa index method that has been confirmed with the index of 0/893 , 0/894 , and 0/924 , respectively .
For data analysis has been used of Statistical methods like Pearson correlation index , and factorial analysis method .
RESEARCH FOUNDATIONS
First , promotion mix existing situation is examined . For this case has been used of factorial analysis method which the results have been presented in Tables 1 and 2 . In factorial analysis method , each factor that has high change percent is more effective and acts as a factor with better degree that the results of this method has been presented in Certain Amount Table and Percentage of data covering and effective factor determining Table
which is as follow :
Table 1: Table of Certain Measurements , data content percent and promotion mix existing situation.
Initial Eigenvalues Extraction Sum of Squared Loadings
Rotation sums of Squared Loadings
Component Total Variance Cumulative Total Variance Cumulative Total Variance Cumulative
1 2 3 4 2.818 .472 .415 .296 70.441 11.794 10.376 7.388 70.441 82.236 92.612 100.000 2.818 .472 .415 .296 70.441 11.794 10.376 7.388 70.441 82.236 92.612 100.000 1.033 1.026 1.007 .933 25.832 25.662 25.180 23.326 25.832 51.494 76.674 100.000
The results of Table 1 shows that the first factor is designed with %70 content as the most effective factors and other factors lie in 11 , 10 , and 7 percent content in other degrees , respectively .
Thus , for determining how these factors which one of questionable variable , have effective factor determining Table as follows :
Table 2: the effective factor determining table of promotion mix existing situation . component 1 2 3 4 Advertising .914 .223 .239 .238 Sales promotion .230 .903 .242 .271 Public relation .281 .314 .323 .848 Personal selling .255 .251 .887 .290
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With regard to the results of Table 2 , in each column of questionable factor is discussed to its variable which in this manner.
The first factor is advertising , the second factor is sales promotion , the third factor is personal selling and the final factor is public relation .
Finally , for testing research hypotheses , first by using of Kolmogorov-Smirnov z has been engaged in which the results have been presented in Table 3 .
Table 3: the results of normal data test
Customer acquisition N
Normal Parametersa Mean Std.Deviation
Most Extreme Differences Absolute Positive Negetive Kolmogorov-Smirnov z
Asymp . Sig ( 2-tailed)
430 3.1677 .49839 .047 .047 -.047 .984 .287
With regard to amount of sig is higher than error level of α=0/05 , (0/287 ≥ 0/05 ) so , research data have been distributed normally .
In order to research hypotheses testing has been used of Pearson correlation index testing which the results have been shown in Table 4 .
Table 4 : Pearson Correlation Test
advertising Sales promotion Public relation Personal selling Customer Acquisition Pearson correlation Sig.(2-taied) N .355٭٭ .000 430 .317٭٭ .000 430 .331٭٭ .000 430 .315٭٭ .000 430
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With regard to the results of Table 4 , because amount sig is less than error level α=0/05 , so research hypotheses have been confirmed . It means that there is a relationship between each factor advertising , sales promotion , public relation and personal selling with Customer Acquisition . Also , be positive index number in both steps shows that this effect is in a positive direction (the more rate of advertising , sales promotion , public relation , public relation , and personal selling , the more Customer Acquisition ) .
CONCLUSION
In this paper , engaged in presentation of achieved results of examining the
relationship between promotion mix with Customer Acquisition in the bank .With regard to achieved results of correlation indexes hypotheses and conformation of four hypotheses can conclude that there is a relationship between promotion mix factors (advertising , sales promotion , personal selling , and public relation ) and Customer Acquisition in the bank . It means that using of promotion mix factors for increasing Customer Acquisition can play an important role , thus it is suggested to bank management for establishment intensive competitive place that in region focuses on each promotion mix factors and with teaching and suitable planning in these factors satisfy and acquire customer and thus reinforce bank competitive advantage . Also , research results in determining promotion mix existing situation showed that among promotion mix factors , the most effect of Customer Acquisition has had the first advertising with the rate of 0/914 percent , then sales promotion with the rate of 0/903 , personal selling with the rate of 0/887, and public relation with the rate of 0/848. Thus , with regard to achieved results , promotion mix existing include advertising , sales promotion , personal selling , and public relation .
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