Sample of IM Project

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Abstract

The purpose of this project paper is to provide better understanding on how promotion is used in the

business sectors in various areas. In order to reach this purpose, we were using secondary data from types of journals

and also including the world annual export in womens and girls outwears. We also figured out that sales promotion

is a significant tool to generate sales as well as to improve the relationships between particulars parties that were

involving in the market.

We used shift- share analysis, analyzing procedure and hypothesis development, the finding indicate that

shows the promotion plays the significant role in increasing the numbers of the exports and as well as a tool to

indicate the customers brand loyalty, due to the aggressive the strategy of the promotion a business may defeat the

existing brand in the market. Moreover, due to the advance changes in technology, the company will easily know

what people demand for and how they prefer the product. The company also can perform the international

advertising greatly because they have good awareness on the differences of every culture globally. Therefore, this is

tantamount for a company to have knowledge and information in promotion strategies and goals before advertising

their goods and services.

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Introduction

Brief Introduction

Manufacturers use promotion to induce the trade (wholesalers and retailers) consumers to buy a brand and

to encourage the manufacturers sales force to sell it aggressively. Retailers use promotional intensives to encouragedesired behaviors from their consumers. Promotion involves intensives (price discount or rewards) that are designed

to encourage rate customers or end-user consumers to purchase a particular brand sooner, more frequently, in larger

quantities or to engage in some other behavior that will benefit the manufacturer or retailer that offers the promotion.

Exports refer to selling goods and services produced in home country to other markets. An export of a good

occurs when there is a change of ownership from a resident to a non-resident; this does not necessarily imply that

the good in question physically crosses the frontier. However, in specific cases national accounts impute changes of

ownership even though in legal terms no change of ownership takes place. Export of services consists of all services

rendered by residents to non-residents. In national accounts any direct purchases by non-residents in the economic

territory of a country are recorded as exports of services; therefore all expenditure by foreign tourists in the

economic territory of a country is considered as part of the exports of services of that country.

Background of the study

Promotion is used to communicate with customers with respect to product offerings. It is one of the key 4Ps

in the marketing mix and as such has a key role to play in market success. Promotion is concerned with ensuring that

customers are aware of the products that the organization makes available to those customers. Promotion also can be

a tool to measure the performance of export growth and one of the successes of export growth is inseparable from

the good promotion. If the performance of promotion is good, it will affect to the increasing rate of export in a

particular country. This study is conducted to correlate export growth and promotion management.

Problem statement

Observing the fact and reality that product promotion are varies accordingly to cultural diversity, trade

barriers, linguistic limitations, and media limitations. Laws that control comparative advertising vary from country

to country. Language is one of the major barriers to effective communication through advertising. Same with

knowledge of cultural diversity must encompass the total advertising project.

Objective of the study

Performance of women outwears in terms of promotion and export growth. Performance of export growth

related with promotion. Other than that, the objective of this study also to know the promotion management in

international marketing. Furthermore, needs in increasing for sophisticated advertising strategies are crucial in

todays challenging market. The requirement to standardize the advertising theme and customization.

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Significance of the study

Rate of export growth in certain country will significantly affecting the promotion, perhaps with such

assumption we may considered a country with higher rate of export growth is potentially targeted for a market

expansion. However, with the differences in geography and culture types have different primary function of a

product. For example, the producer will not get more profit when they sell winter clothes in Southeast Asia.

Literature Review

Title: Determinants of internet advertising effectiveness: an empirical study (George Baltas, 2003)

Advertising on the internet began in the middle of the past decade, when the first banner advertisements

were placed in commercial websites. There are several forms of internet advertising, such as banners, interstitials

and pop-up windows, banner ads are the most prevalent. Banner ads have dominated web advertising and become

the standard advertising format on the internet. The pricing of internet advertising is often based on click through

rate because advertisers demand result-oriented pricing and question the pricing model of traditional media, which is

based on more impressions rather than they insist on paying for direct response results. It has been suggested that

there is an explicit shift in online advertising strategy that favors deriving behavioral response from selected target

audiences over providing exposure to many audience groups.

In the early days of internet advertising, stereotypical phrases or words were used as a means to induce

consumer response. In the light of the present empirical evidence, it seems that such approaches are not effective.

But the most people and, in particular internet users have become expert, skeptical processors of advertisements.

The old attention-generating tools seem to be less effective at the present stage of internet development. The creative

characteristics of effective banners are a larger size, short massages, few frames, and absence of company logos. It

can be seen that the more relevant the massage, the better the chance that the banner will grab the viewers attention

and stimulate response.

Title: Evaluating advertising effects on brand perceptions: incorporating prior knowledge (2005)

One strategy of advertising campaigns is to focus on a central theme with the objective of developing

specific perceptions about brand. Advertising effectiveness is assessed through examining the specific link between

the brand and the perception of excellent service. The aim is to ascertain whether or shifting advertising efforts have

made a difference in establishing, reinforcing or shifting these perceptions. Brand perceptions are important because

they are said to influence consideration and evaluation.

There are factors aside from advertising activity that influence a respondents propensity to give linking a

brand to an attribute which are if the respondent uses the brand and the degree to which the attribute is considered to

contribute to category membership. Marketing activities are undertaken with the goal of changing or reinforcing the

consumer mindset in some way. This includes thoughts, feelings, experiences, images, perceptions, beliefs, and

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attitudes towards a brand. The five dimensions as being important measures of the consumer mindset are brand

awareness, brand associations, brand attitude, attachment, and activity. The value of a brand, and the effectiveness

of marketing activities undertaken to affect the consumer mindset about a brand, is therefore often measured by

evaluating changes in perceptual responses on advertised attributes

Title: Will eChannel additions increase the financial performance of the firm? (Julian ming- sung Cheng 2006)

The emergence of the World Wide Web (WWW) has forced a large number of firms, both in B2B and B2C

environments. The purpose of adding eChannels to their existing channel systems is to increase and sustain their

competitive advantage, and to eventually enhance their financial performance. However, addition of an eChannel

system into existing channel systems can be met with opportunities as well as threats. Therefore, the use of

eChannel addition could potentially undermine the firms financial performance. In spite of the uncertainty

surrounding the financial performance of eChannel addition, countless firms have rushed to build eChannels to

access millions of potential online customers directly.

From the research, the academics and managers approved that eChannel addition announcement will

increase a firms financial performance. This effect allows managers to make wiser decisions to get involved in

eCommerce. Although eChannel addition has been proven to be perceived profitable, it would be noted that channel

tasks/functions through physical channels or through eChannels should be carefully configured. That is, firms

should be cautious about the transfer of channel tasks from traditional physical channels to eChannels. Therefore, it

is important for managers to design eChannel strategies with caution, not only to introduce eChannels to their

channel portfolio, but also to think carefully about the most appropriate way to dispersing channel tasks online and

offline.

Title: I want to buy the advertised product only! (Sweta Chaturvedi Thota & Abhijit Biswas, 2009)

Cross-promotion is rampant across several industries such as credit cards and banking. For example, it is

common for credit card companies to target consumers with persistent offers of additional services for existing

cards, such as payment protection or antitheft offers. When consumers engage in goal-directed decision making and

are exposed to information that may not be diagnostic or relevant in nature and content, they may elicit the negative

emotion of irritation because of their wasted time and the futility of the cognitive effort in processing the

information. Accordingly, the marketers use the concept of information irrelevancy as a theoretical explanation for

the negative effects of additional product offers.

From a managerial point of view, advertisers or marketers involved in cross-promotions should consider

consumers findings disturbing and problematic. Consumers findings are important especially because advertisers

and salespeople often attempt to increase their overall sales by offering additional products that might not be related

to the focal product, thus increasing the likelihood of a negative response from the consumer. Companies and

advertisers must be cautious in exposing consumers to additional information in the form of offers of additional

products, especially when such information is not relevant to the consumer in the context of the focal brand.

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Title: Promotion and marketing communications in the information marketplace (Jennifer Rowley, 2003)

This journal enlighten promotion as a tool of communication which effective to promote the product or

services to customer. Promotion has a key role to play in market success. Promotion is concerned with ensuring that

customers are aware of the products that the organization makes available to those customers. More specifically, the

objectives of any promotional strategy will be drawn from an appropriate mixture of the following roles of

promotion to increase sales; maintain or improve market share; create or improve brand recognition; create a

favorable climate for future sales; inform and educate the market; create a competitive advantage, relative to

competitors products or market position; improve promotional efficiency. This journal also elaborate the tools in

the promotional mix, which are advertising, direct marketing, sales promotion, Public relations and publicity,

personal selling, and sponsorship.

Title: Sales promotion a missed opportunity for services marketers? (Ken Peattie & Sue Peattie)

The author of this journal give explanation about the key challenge for marketers seeking to gain

competitive advantage through promotions is to choose a promotional tool which is suitable for the brand that they

manage and the market within which it exists, and to execute the promotion flawlessly. There are several aspects of

competitions which make them particularly suitable for use by service marketers, they are Differentiation

opportunities, Link-up opportunities, Point of sale opportunities, Quality cue appeal, Demand smoothing and

Consumer interaction. According to the author, competitions are certainly effective in attracting consumers. The

attractiveness of a competition has been linked to five factors, which are, the cost of entering, the monetary value of

the prizes, the number of prizes and the perceived probability of winning, the pleasures of gambling (or perhaps

more accurately of competing), and the desire to occupy leisure time.

Title: Putting Strategy into Promotion Mix Strategy(Thomas A. Petit & Martha R. McEnally, 2007)

This topic stress on how marketing mix used in promoting the product or services. The promotion mix is

the combination of personal selling, advertising, and sales promotion used to achieve marketing objective. Personal

selling, advertising, and sales promotion make up the company's promotion mix, a subset of its marketing mix. The

author describes the model which helps for determining the marketing mix. It consists of five steps: Define the

problem and set objectives, Appraise the overall situation, Determine tasks and identify means, Identify alternative

promotion mixes and Estimate the expected results. Marketing managers with responsibility for marketing strategy

should be the ones who define the promotion objectives for two reasons: The promotion mix should be related to

other elements in the marketing plan. It must be consistent and integrated with product, place, and price

considerations. And the promotion mix must balance long term with short-term objectives. Many promotion mixes

sacrifice long-term objectives that lead to development of a strong.

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Title: Consumer evaluations of sales promotion: the effect on brand choice (Begona Alvarez Alvarez and

Rodolfo Vazquez Casielles, 2004)

The journal look closely into consumer buying behavior influencing by price, reference prices, losses and

gains and loyalty. Special attention is given to the influence that sales promotion actions developed by

manufacturers and distributors have on the brand choice process. Sales promotion techniques are intended to have a

direct impact on buying behavior. The implementation of an adequate sales promotion may guarantee an increase in

sales in a short period of time. Therefore sales promotion actions must be properly planned, organized and integrated

into the establishments marketing plan. The author stated that promotions provoke two reactions in people. The first

is an increase in consumption, i.e. more quantity of a product is acquired. The second is storage of the product for

the future, i.e. the consumer acts anticipating his purchases. It is necessary to highlight that the use of sales

promotions to encourage brand and product purchase and consumption has to be sufficient. However it is necessary

to stay alert, as the opposite effect could be provoked on certain occasions.

Title: The Effect of Sales Promotion on Post-Promotion Brand Preference: A Meta Analysis. ( Devon

DelVecchio, David H.Henard, and Traci H. Freling 2006)

Sales promotions are relatively less attention has been devoted to investigating the consequences of sales

promotions for brand preference after the promotions has ended. The benefit of sales promotions is that they induce

choice. This benefit may be offset by undermining preference for the brand when it is no longer promoted. Despite

the fact that sales promotions have long been employed in marketing practice and researched academically, a clear

understanding of the impact of sales on post- promotion brand preference continues to evade brand managers and

marketing scholars alike. In addition to that, sales promotions do not affect post-promotion brand preference,

however depending upon characteristic of the sales promotion and the promoted product, promotions can either

increase or decrease preference for a brand

Title: Innovative Sales Promotion Techniques among Hong Kong Advertisers a content analysis (Kim-Shyan

Fam, Lin Yang, Geoffrey Tanakinjal.2008)

This study content analyzes all the sales promotion related advertisements that appeared in a major Hong

Kong newspaper. The alliance between the promotion techniques and the environment is important and underlines

the importance a company should place on its environment. As marketing environment has affected promotions

trends, this study provides marketing practitioners with a new perspective that would encourage them to strategically

manage the sales promotion with the consideration of the environmental dynamics along with the time line. People

are spending less and paying more attention to sales promotion, to meet the change in consumer buying behavior,

advertisers may increased the usage of price pack and premium goods techniques. Not only has that, in order to

encourage consumers to visit the establishments, most advertisers also increased the usage of point of purchase

techniques.

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Title: Demographics in Sales Promotion Proneness: A Socio-Cultural Approach (Kyoung- Nan kwon, Yoo Jin

Kwon 2007)

We investigate the impact of demographics (i.e., income, education, and gender) on promotion proneness

and provide socio cultural explanations why certain demographic groups are more promotion prone. Shopping is a

domain where consumers accumulate their expertise and skills. To be deal prone requires not only the motivation for

monetary savings but also the legitimate possession of human capital in shopping including cognitive abilities,

information, and shopping experience and skills. The positive effects of education and income on the use of coupons

and rebates are discussed along with the influence of gender and psychographics such as shopping enjoyment and

psychological gender congruency.

Title: The informative and persuasive components of pharmaceutical promotion- An argument for why the two

can coexist. (Michel Rod and Sarena Sounders 2009)

In this work the authors objective is to review the literature on pharmaceutical promotion. They also

examine the traditional methods used to promote pharmaceutical products and ask the question. If the objective of

promotion is to inform, persuade and remind the customer about why people should consider a particular product or

brand, why is the promotion of pharmaceutical products so contentious? They draw upon the results of an

exploratory case study that examined healthcare practitioner and pharmaceutical sales representative attitudes

towards pharmaceutical promotion, and conclude with some thoughts on how information-based and persuasion-

based pharmaceutical promotion can coexist.

Title: Sales Promotion Preferences: A Demographic Analysis (Michael J. Dotson, 2002)

Those who are the least targeted by marketers with mainstream sales promotions are the most likely to take

advantage of them. Through more judicious media placement, retail demographic analysis and carefully placed and

designed point-of-purchase incentives, markets could more closely relate these sales promotion tools to more

specialized demographic segments. More research is necessary to understand the motivations and reasons behind

these differences in deal proneness. Also, it is possible that different demographic segments would respond

differently to alternate design features, tie-ins, and other aspects of sales promotion incentives. Considering the rapid

growth in the use of sales promotion versus traditional advertising, more effective targeting of disparate

demographic segments represents a logical next step.

Title: Sales Promotion in a B2B Setting (Bobby Andersson & Amam Hailemariam, 2007)

The purpose of this thesis is to provide a better understanding on how sales promotion is used in B2B

setting. In order to reach this purpose, research questions focusing on the objectives of sales promotion, as well as

which sales promotion tools that were used were stated. Based on these research questions, a review of the relevant

literature was conducted, resulting in a conceptual framework, which was used to guide this studys data collection

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A qualitative case study approach was used using interviewing. The findings indicate that, although the

individual objectives of the tools can be different they can still be used overall to lead to the same overall goal. It

was also found that the focus is not always on using sales promotion tools to generate sales, but to improve

relationships. As for the tools used, it was found that there are commonly used sales promotional tools in B2B

settings. More specifically, gift giving can be deemed inappropriate in certain contexts and should be used carefully.

Title: Long-Term Impact of Sales Promotion on Brand Image (Danijela Mandic, 2006)

The implementation of an adequate sales promotion may guarantee an increase in the short-term sales

figures. This justifies the tendency of corporations to invest large portions of their budget into sales promotion. A

sale promotion that attracted some new users can have positive after-effects if the new users repeatedly repurchase

later. Study showed that price-related promotions do not have any effect on brand performance, either in terms of

sales or repeat purchase.

This is due to the fact that promotions influence existing customers in the first place, with some rare

expectations. This is a concern for companies, whose main objective it is to target new customers or gain more long-

term profit, as new customers might only take advantage of the promotion and then go back to their preferred brand.

Also, even when the existing customers are targeted and the response is satisfying, these consumers price

sensitivity may be enhanced, causing difficulties in the long run.

Title: The Influence of Sales Promotion on Consumer Behavior in Financial Services (Oskari Lindholm, 2008)

This research studies about how sales promotion influences consumer credit card behavior by examining

credit card purchase before, during and after the promotional periods. It aims to reveal whether or not the

promotions have increased the purchase activity and whether the purchase frequencies remained after the end of

promotional period. Severe competition in the credit card markets and present economic situation make it an

interesting and current topic.

Multiple market entries from different credit card marketers and strong existing participants create a wide

collection of credit cards for consumers to choose from. As a result consumers may have multiple cards in their

wallet which creates the challenge of how to be the card on top of the wallet. The assigning company has tackled

this problem by positioning itself as a daily payment method. The main feature in communicating the position to

consumers is the unique loyalty program, which rewards consumers for credit card purchases. Communication with

consumers is also reinforced using different sales promotion activities, which aim at promoting the benefits of the

loyalty program.

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Title: Optimal Pricing and advertising strategy for introducing a new business product with threat of

competitive entry (Mark C Gupta, Anthony Di Benedetto,2005)

The problem of optimal joint pricing and advertising decision making for a new product facing potentialcompetitive entry has received inadequate attention. The problem of optimal pricing of new products in different

market s structures, for example proposed a model of pricing for a monopolist, deriving optimal price through time

using optimal control methods. The issues of optimal advertising for new products, such as, different dynamic

advertising patterns, comparing constant advertising against pulsing advertising through time. Other than that is

advertising strategy for a new product situation. Beside that the problem of determining optimal pricing and

advertising for a new products in the face of competitive entry so as to maximize total pre and post entry profits is

important to marketing practitioners and is also relevant in the areas of business policy and competitive economics.

It is particularly relevant to the marketing practitioners in the B2B sectors, for example selling of computer software

vaporware. There are two characteristics of pricing and advertising at the time of launching 1) price skimming and

2) penetration price strategy supported by a more modest promotional campaign. The skimming and penetration

alternatives, give rise to profit streams that differ not only in magnitude but also in their life pattern. In order to gain

their market share, the marketers should push out competing supplier.

The optimal price and advertisement frontier was developed so as to maximize the total discounted profits

over the entire period, under the assumption that the firms market share is a non decreasing function of

advertisement and non increasing function of product pricing. The current research investigate the impact of

industry maturity on optimal price and advertising policy and also to determine firms demographics other than firm

size have contingent effects on optimal pricing and advertising decisions. Other firm demographics, such as scopeeconomics that also reduce total manufactured cost, may also impact optimal pricing or advertising decisions.

Title: Advertising Standardization in the Asia Pacific Region: What Stands In the Way? (Alan T.Shao and

David S.Waller, 2007)

This empirical study examined U.S. advertising agencies' practices in the Asia Pacific Region to decide

whether they were following Theodore Levitt's advice to promote products and services the same way everywhere.

His insistence for global markets and standardized consumer products is enticing since it potentially leads to the

simplification of a company's marketing programmed, a reduction in costs and increases in margins. But marketers

have continued to debate which method of marketing is optimal standardization, adaptation or customization.

Based on the opinion from another researcher such as Britt, he suggested that methodologies and

conceptual frameworks needed improvement before meaningful research on cultural and psychological aspects of

international advertising could be performed. He concluded that whether products and services could be

standardized depended on consumption patterns, psychological characteristics, and generalized cultural criteria.

Another suggestion comes from Dunn he suggested that, the best approach to European markets was to preserve

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"some covert multinationalism in the campaign but to add a deft touch that is distinctively. French or British or

Italian .".So,its better for U.S advertising agencies in the Asian Pacific Region in order to use the benefits of

standardization while paying attention to local differences. While marketers have substantial power over many of

the factors that influence their market effectiveness uncontrollable or environmental factors must be recognized by

managers and considered in all aspects of their marketing strategies.Legal restrictions and cultural sensitivities are

the leading environmental impediments for advertising agencies operating in the Asia Pacific Region.

Title: Customers Behavioral Responses to Sales Promotion (Nelson Oly Ndubisi, 2005)

According to Shimp (2003), sales promotion refers to any incentive used by a manufacturer to induce the

trade (wholesalers, retailers, or other channel members) and/or consumers to buy a brand and to encourage the sales

force to aggressively sell it. Sales promotion is more short-term oriented and capable of influencing behavior. Tot

ten & Block (1994) stated that the term sales promotion refers to many kinds of selling incentives and techniques in

tended to produce immediate or short-term sales effects. Typical sales promotion includes coupons, samples, in pack

premiums, price-offs, displays, and so on. Sales promotional tools, when used strategically in various industries.

Sales promotional tools, when used strategically in various industries not only increase brand awareness, but also

encourage consumers to try new products. So, there is a significant positive relationship between coupon, price

discount, free sample bonus pack, and in-store display, and product trial.

According to the trial and repeat model by Thomas (1993), it is generally assumed that of all potential

buyers in a given time period, only those who are aware of the new product could potentially try it (trial), and only

those who try it could potentially buy it again (repeat). Thomas also argued that the magnitude of planned

distribution and promotion expenditures (advertising, sales promotions, sales force, and so on) could affect initial

trial of the brand.

Title: The effects of regulatory focus and tie strength on word-of-mouth behavior. (Cindy M.Y. Chung, 2008)

WOM communication has been defined as informal, person-to-person communication

between a perceived non-commercial communicator and a receiver regarding a brand,

product, organization or a service (Harrison-Walker, 2001). WOM recipients benefit from

WOM because information obtained in such communication helps them with product/service

evaluation, decision-making and reduction of risk related to purchases (Bansal and Voyer,

2000; Ho and Chung, 2007; Murray, 1991).

The focuses of WOM are divided into two promotion focus and prevention focus. A

promotion-focused individual perceives his/her goals as hopes and aspirations, and is sensitive

to positive outcomes (Aaker and Lee, 2001). Aprevention-focused individual instead perceives

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his/her goals as duties and obligations, and is sensitive to negative outcomes. The tendency is

to avoid mismatches to his/her goals with vigilance or caution (Liberman et al., 2001).

Tie strength is generally determined by the extent of time, emotional closeness,

intimacy and reciprocity of the relationship (Frenzen and Davis, 1990). It can be dichotomizedinto strong tie and weak tie. Examples of strong ties are family members and close friends;

examples of weak ties are acquaintances and strangers. Promotion-focused individual is

concerned about hopes and aspirations, and he/she is motivated to think about hitting positive

outcomes. To achieve these goals, the individual often adopts eager strategies. Applying this

to the WOM context, it is conceivable that a promotion-focused WOM giver is eager to give

WOM to both strong ties and weak ties. When talking to a strong tie, the promotion-focused

WOM giver may be eager to give a great deal of WOM that is beneficial to the recipient. When

talking to a weak tie, the promotion-focused WOM giver may be eager to volunteer a great

deal of WOM for self-enhancement purpose.

Research Methodology

Shift share analysis measures the growth of individual markets relative to all members of a chosen group.

The shift-share method is used as a technique for identifying export opportunities. This method requires

measurement on a variable of interest at the initial period and terminal period of analysis. An expected growth figure

is calculated based on the average growth of all markets studied. Each markets expected growth is compared with

its actual growth. The difference and the net shift is positive for market that gain share over the period, and negative

for countrys losing market share. The magnitude of the gain or loss represents the difference between that marketsactual performance and the performance it would have had if its growth rate had been equal to the average growth of

the entire market. Here, we calculate shift share analysis based on statistical data of women outwear in France.

Actual Change

The actual change for each market in Women Outwear is calculated to identify the absolute growth value.

The actual change of the growth variable in a given market is simply the difference in values from one time period

to another. Let Vj,t represents the values of the export for market j at the end of the terminal time period t, and Vj

be the actual change in market j over the specified period of time. Therefore,

1,, = tjtjj VVV

Country INITIAL TERMINAL

2003 2004 2005 2006 Vj,t-1 Vj,t Vj

CHINA

1110

3

1283

3 15711

1874

8 23936 34459 10523

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TURKEY 2274 2665 2816 3278 4939 6094 1155

INDIA 1893 2019 3324 3111 3912 6435 2523

SPAIN 1069 1286 1411 1743 2355 3154 799

THAILAND 576 654 636 572 1230 1208 -22

KOREA 598 578 371 273 1176 644 -532

HONGKONG 5893 6294 7074 7397 12187 14471 2284

INDONESIA 1160 1265 1347 1468 2425 2815 390

MEXICO 1448 1718 1592 1034 3166 2626 -540

BELGIUM 1170 1202 1328 1433 2372 2761 389

57698 74667 16969

H1: From the data above, we can conclude that the total export for the market of woman outwearing in Thailand,

Korea and Mexico were declined. Whereas the export of the other countries were increased significantly over the

years. The declining of the markets export due to the total of their actual change is less than zero. China is the

country which has the highest actual change, while Mexico is the country with the lowest actual change.

Total Growth Rate

The total value of growth variable for all markets K at the end of the initial time period is equal to the sum

of the values for each of the individual markets, that is Vj,t-1. Similarly, the total value of the growth variable for

all markets at the end of the terminal time period is Vj,t. The growth rate for all markets K, is equal to the ratio of

the total value in the terminal time period to the corresponding value in the initial time period.

=

==

m

j

tj

m

j

tj

V

V

K

1

1,

1

,


2003 2004 2005 2006 Vj,t-1 Vj,t k

CHINA

1110

3

1283

3 15711

1874

8 23936 34459 1.44

TURKEY 2274 2665 2816 3278 4939 6094 1.234

INDIA 1893 2019 3324 3111 3912 6435 1.645

SPAIN 1069 1286 1411 1743 2355 3154 1.339

THAILAND 576 654 636 572 1230 1208 0.982

KOREA 598 578 371 273 1176 644 0.548

HONGKONG 5893 6294 7074 7397 12187 14471 1.187

INDONESIA 1160 1265 1347 1468 2425 2815 1.161

MEXICO 1448 1718 1592 1034 3166 2626 0.829

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BELGIUM 1170 1202 1328 1433 2372 2761 1.164

57698 74667 1.2941

H2: The country which has the highest growth rate is India and the lowest is Korea. The total growth rate will

impact to the expected value and expected change. The greater the growth rate means the greater the expected value

and the expected change.

Expected Value

If a given market has grown at the rate achieved for all markets, the expected value of the growth valuable at the end

of the terminal time period, E(Vj,t), is the product of the actual value of this market at the end of the initial time

period and the rate of change for all markets. To get this, multiply the value between the initial time period (Vj,t-1)

and growth rate for all market (K). That is,

( ( 1,, = tjtj VKVE

Country 2003 2004 Vj,t-1 k E(Vj,t)

CHINA

1110

3 12833

2393

6 1.44 34459

TURKEY 2274 2665 4939 1.234 6094

INDIA 1893 2019 3912 1.645 6435

SPAIN 1069 1286 2355 1.339 3154

THAILAND 576 654 1230 0.982 1208

KOREA 598 578 1176 0.548 644

HONGKONG 5893 6294

1218

7 1.187 14471

INDONESIA 1160 1265 2425 1.161 2815

MEXICO 1448 1718 3166 0.829 2626

BELGIUM 1170 1202 2372 1.164 2761

H3: Expected value depends on the growth rate and the value of the export for market of womans outwearing in

2003 and 2004. The expected value can determine the target of the sales in the following years. The higher expected

value means the higher the producer expect for their sales of the product. In the table above, China is the highest

expected value rather than the other countries.

Expected Change

Expected change in the value of a growth variable for a particular market in a given time period is the

difference between the expected value and actual value for the market at the end of the initial time period. Let

E(Vj) represents the expected change. Thus,

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1,, = tjtjj VVEVE

( )11, = KV tj

Country 2003 2004 Vj,t-1 k k-1 E(Vj)

CHINA

1110

3 12833

2393

6 1.44 0.43963 10522.98368

TURKEY 2274 2665 4939 1.234 0.23385 1154.98515

INDIA 1893 2019 3912 1.645 0.64494 2523.00528

SPAIN 1069 1286 2355 1.339 0.33928 799.0044

THAILAND 576 654 1230 0.982 -0.0179 -22.017

KOREA 598 578 1176 0.548 -0.4524 -532.0224

HONGKONG 5893 6294

1218

7 1.187 0.18741 2283.96567

INDONESIA 1160 1265 2425 1.161 0.16082 389.9885

MEXICO 1448 1718 3166 0.829 -0.171 -540.1196

BELGIUM 1170 1202 2372 1.164 0.164 389.008

1.294

1 1.52911 16968.75818

H4: From the data, the growth rate of China is 1.44, and the initial value is 23936, and the expected change of China

is 10522.98368. Compared to the other country, the expected change of China is the highest. It shows that the

market experienced in China established well.

Net Shift

The difference between the actual change and the expected change of a given market is the net shift. This difference

is denoted as Nj. Thus,

jjj VEVN =


2003 2004 2005 2006 Vj,t-1 Vj,t Vj E(Vj) Nj

CHINA 11103 12833 15711 18748 23936 34459 10523

10522.9836

8 0.01632

TURKEY 2274 2665 2816 3278 4939 6094 1155 1154.98515 0.01485

INDIA 1893 2019 3324 3111 3912 6435 2523 2523.00528 -0.00528

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SPAIN 1069 1286 1411 1743 2355 3154 799 799.0044 -0.0044

THAILAND 576 654 636 572 1230 1208 -22 -22.017 0.017

KOREA 598 578 371 273 1176 644 -532 -532.0224 0.0224

HONGKONG 5893 6294 7074 7397 12187 14471 2284 2283.96567 0.03433

INDONESIA 1160 1265 1347 1468 2425 2815 390 389.9885 0.0115

MEXICO 1448 1718 1592 1034 3166 2626 -540 -540.1196 0.1196

BELGIUM 1170 1202 1328 1433 2372 2761 389 389.008 -0.008

H5: The sum of the net shift values for all market should be zero or close to zero. Since the result show that Nj close

to zero, means that the womans outwearing markets growth increases by greater amount then it would increase the

total market rate. Thus a ratio between the actual and expected change will be a suitable measure.

Total Absolute Net Shift

The sum of the positive net shift or the sum of the negative net shift S represents the total absolute net

shift. That is,

( )[ ]

=

+==

=p

j

j

m

j

jj

N

VEV

S1

1

2


2003 2004 2005 2006 Vj,t-1 Vj,t Vj E(Vj,t)

[Vj-

E(Vj)]

CHINA 11103 12833 15711 18748

2393

6 34459 10523 10522.98368 0.01632

TURKEY 2274 2665 2816 3278 4939 6094 1155 1154.98515 0.01485

INDIA 1893 2019 3324 3111 3912 6435 2523 2523.00528 -0.00528

SPAIN 1069 1286 1411 1743 2355 3154 799 799.0044 -0.0044

THAILAND 576 654 636 572 1230 1208 -22 -22.017 0.017

KOREA 598 578 371 273 1176 644 -532 -532.0224 0.0224

HONGKONG 5893 6294 7074 7397

1218

7 14471 2284 2283.96567 0.03433

INDONESIA 1160 1265 1347 1468 2425 2815 390 389.9885 0.0115

MEXICO 1448 1718 1592 1034 3166 2626 -540 -540.1196 0.1196

BELGIUM 1170 1202 1328 1433 2372 2761 389 389.008 -0.008

[Vj-

E(Vj,t)] 0.24182

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( )[ ]

=

+==

=p

j

j

m

j

jj

N

VEV

S1

1

2

= 0.24182 = 0.12091

2

H6: The data shows that India, Spain, and Belgium have negative net shift while the others have positive net shift.

And for the total absolute net shift equal to 0.12091.

Percentage Net Shift

The relative gain or loss in the value of a growth variable for a particular market j, in a given time period is

defined as the percentage net shift Pj.

Therefore,

( )%100S

NP

j

j =

Country Nj S Nj/S P

CHINA 0.01632

0.1209

1 0.134976 13.4976 %

TURKEY 0.01485

0.1209

1 0.122819 12.2819 %

INDIA -0.00528

0.1209

1 -0.043669 -4.3669 %

SPAIN -0.0044

0.1209

1 -0.03639 -3.639 %

THAILAND 0.017

0.1209

1 0.1406 14.06 %

KOREA 0.0224

0.1209

1 0.18526 18.526 %

HONGKONG 0.03433

0.1209

1 0.028393 2.8393 %

INDONESIA 0.0115

0.1209

1 0.095112 9.5112 %

MEXICO 0.1196

0.1209

1 0.98917 98.917 %

BELGIUM -0.008

0.1209

1 -0.06616 -6.616 %

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H7: From the table above, Mexico has the highest percentage net shift with 98.917 % and Belgium is the lowest

percentage net shift with -6.616 %.

Analyzing result and discussion

Based on the research methodology above, we used shift share analysis to analyze the data that we have

been collected through secondary resources which is industry annual export rate reports. In shift share analysis, we

have calculated the actual change of growth rate for each country, total value of growth, expected value, expected

change, net shift, total absolute net shift and lastly the percentage of net shift.

As mentioned above, we chose 10 different countries and analyze their differences in terms of export

change in women and girls outwear industry. We found out that the market in Thailand, Korea, and Indonesia were

declined, whereas, the export of the other countries was increased significantly over the years. Subsequent to that,

we also calculated the total growth rate for all markets at the end of the initial time period and also for the terminal

time period and we concluded that India is the country which has the highest growth rate compared to other

countries. On the other hand, Korea is the lowest country. This can be define as the greater the growth rate that a

particular country possessed the greater the expected value and expected change the country has. Moreover, we also

calculated the net shift value for all markets and the results were zero. Since the result show that Nj is equivalent to

zero which means womens outwearing markets growth increases by greater amount than it would increase the total

market rate.

In addition, based on the result that we have found, promotion has significant role in order to push up the

particular goods and services in markets. To some extent, a very good strategy of promotion can defeat the brand

name. For example, if one new product that are quite unknown due to the good promotion strategy, it will defeat the

well known brand product. In our research based on these 10 countries, we found that those countries that have

Country Vj,t-1 Vj,t Vj k E(Vj,t) E(Vj) Nj S P

CHINA 23936 34459 10523 1.44 34459 10522.9837 0.01632 0.12091 13.50%

TURKEY 4939 6094 1155 1.234 6094 1154.98515 0.01485 0.12091 12.28%

INDIA 3912 6435 2523 1.645 6435 2523.00528

-

0.00528 0.12091 -4.37%

SPAIN 2355 3154 799 1.339 3154 799.0044 -0.0044 0.12091 -3.64%

THAILAND 1230 1208 -22 0.982 1208 -22.017 0.017 0.12091 14.06%KOREA 1176 644 -532 0.548 644 -532.0224 0.0224 0.12091 18.53%

HONGKONG 12187 14471 2284 1.187 14471 2283.96567 0.03433 0.12091 2.84%

INDONESIA 2425 2815 390 1.161 2815 389.9885 0.0115 0.12091 9.51%

MEXICO 3166 2626 -540 0.829 2626 -540.1196 0.1196 0.12091 98.92%

BELGIUM 2372 2761 389 1.164 2761 389.008 -0.008 0.12091 -6.62%

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positive actual change in their export have good promotion strategy which can increase the demand for their product

outside the country.

On the other hand, countries such as China have relatively high numbers in export and less in import. Thisis because people all around the world are influenced by the promotion strategy made by China. People are

demanding more on China product because they are offering the products with lower price than other countries

have. Thus, we can see that promotion means a great accelerator to achieve high demand from the consumer.

Conclusion

To wrap up this project, we can use the SMART (specific, measurable, attainable, reliable, and timeline) in

the promotion strategy. Hence, we can clearly say that, a good promotion should have specific strategy to promoteproducts and services. Goes hand in hand with specific strategy of promotion is measureable. The promotion should

be measureable by the companies so that it will not over costing. In addition to that, the promotion of goods and

services should be attainable by the consumers. If the company has really good promotion but the consumers cannot

get their product easily it will troubled the strategy of the promotion as well. The product should be reliable and has

timeline so that consumers who consume it will grab the satisfaction and trustworthy by using the particular product.

Thus due to advances changes in technology, type of promotions are also changing. The factors likewise

linguistic limitation, cultural diversity and government policies which are uncontrollable and controllable

mechanisms might influence consumers purchasing power. Some of the users are really particular in linguistic

matter. Giving this circumstance companies should be capable to use demanded languages that the consumers ask

for. Last but not least, cultural diversity is also give significant implication on sales promotion. This effect resulted

on the different way for companies to advertize their products, i.e. either using the traditional media or electronic

media. Vis--vis with cultural diversity, a particular group of consumers influence either by electronic or traditional

media, such as billboards, newspapers and etc. Pertinent to this project paper out group chose to analyze the number

of exports in womens and girls outwears in 10 chosen countries. Based on the data analysis, we can sum up that

those countries with higher number of export are doing an aggressive and salutary sales promotion to capture bigger

amount of consumers in particular area.

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Documents

Sample of IM Project