Introduction of the Study

Advertising medium is the best way to communicate to the customers. Advertising styles
helps informs the customers about the brands available in the market and the variety of cars
being sold. It plays a very important role in todays age of competition to increase the sales rate
of a car company, advertising is one thing which has become a necessity for everybody in
todays day to day life be it the producer, the traders or the customer. Basically, the medium of
advertising has a very important role in the monthly sales rate report of a car company; this is the
only bridge that marketing strategy, way of introducing the brand and model of a car can
communicate with the customers in an artistic way of communicating with the customers
through this advertising medium.
Information dissemination through the advertising medium such television commercial,
bulletin board, newspaper ads, social networking ads, and poster flyers constitutes an important
and critical factor to the monthly sales report of a car company. More often than not, the
researchers perceives that the advertisement medium is to be a one way form of communication,
circulating information and form of advertising strategy through television commercial, bulletin
board, newspaper ads, social networking ads, and poster flyers but advertising medium requires
systematic collection, organization, and storage of information relevant to needs of the market or
customers.
Upon acknowledging this kind of problem, the researchers decided to conduct on how the
Car Company could communicate with the customers and what are the best advertisement
medium would constitute a high sales rate. The accomplishment of this study will also uncover
the true relationship between the advertisement medium and to the reported sales rate per month.

The result of the gathered data will prove whether the hypothesis of the study is feasible
or not. Countermeasure to improve the study routines of an individual will be done if the
evaluated data state that five stated advertisement medium is not a factors in the reported sales
rate per month.

Background of the Study

Metro Manila is the total urban area the least composed of different cities and the
surrounding urban fringe. The proper city of Manila is only one of the big cities of this urban
agglomeration. It is a highly industrialize and developing place that is why a lot of car company
birthed within the area.
The Study is applicable to the car company/branches. The purpose why we have come up
with this study is because of one very main reason; to know if there is a relationship between the
kind of advertising medium being used and the reported sales rate per month.

The Problem
To identify the correlation between the advertisement medium and the sales rate of car
companies is the main concern of this study; it focuses on the advertising mediums effectiveness
in advertising various cars in different medium and how it affects the sales of the company. In
this light, the researchers came up with a problem: Is the advertising medium affect the sales rate
of a company?

Significance of the Study

The significance of this study is to increase the level of social awareness of the
companies in advertising car products, promotions, and offers to the masses. With these,
marketing and sales managers can reach out effectively to the target people in advertising car
products. The advertising medium such as television commercial, newspaper ads, social
networking ads, posters and flyers, and billboards. Such wide selection of advertising medium, it
can be easier to reach the target potential customers. This research study would benefit the car
companies, especially the marketing and or sales department in identifying the most useful and
effective advertising tool, on how it affects their sales rate, and on how they will improve their
marketing strategies and enhance the way they market their products.

Scope of the study

The purpose of this study is determine if there is a relationship between advertising
medium and sales rate of various car brands company within Metro Manila. With the total of one
hundred (100) branches of various car brands in Metro Manila, the researcher chooses only fifty
percent (50%) of the total number of branches of every car brand within Metro Manila.
Marketing or Sales Supervisors will be covered as part of the respondents and they will be able
to answer the survey questionnaire prepared by the researcher.
The study covered the basic information of the respondents such as the name which is
optional, the work position, company name and the branch address. The first part of the survey is
a list of advertising medium wherein the respondent will select the advertisement medium that
theyve used in advertising their product. In addition, the respondent will choose how frequent

theyve used the indicated advertisement medium such as television commercials, newspaper
ads, social networking ads, posters or flyers and billboards.
The second part of the questionnaire is the Sales Rate where the respondent needs to
indicate the sales rate of actual delivered cars and actual car sold from the following months
beginning August 2014 up to July 2015 which totals of twelve (12) months. The study is limited
only on discussions pertaining to the advertising medium and sales rate of various car branches
within Metro Manila.
This study will not only help the researcher but it also assists Car companies to improve
how promote their products. Furthermore, there are only two major variables used in the study,
the advertising medium which is the independent variable (IV) and the sales rate is the dependent
variable (DV).

Independent Variable
The research studys independent variable presented is Advertising Medium,

it is

defined in Business Dictionary (2015) as any single advertising vehicle comprising advertising
media.
Car companies prefer promoting their ads by means of television commercial, newspaper
ads, social networking ads, poster and flyers and billboards. Nowadays, television advertisement
is most trends used nowadays. In that way people can easily know the information after it is flash
on television.
Television Commercial A television advertisement or variously call television commercial
is a span of television programming produced and paid for by an organization, which conveys a
message, typically to market a product or service. Advertising revenue provides a significant
portion of the funding for most privately owned television network (Wikipedia the Free
Encyclopedia, 2015).
Newspaper Ads Where the advertisement appears alongside regular editorial content. Display
ads are generally used by businesses and corporations towards promotion of their goods and
services and generally for larger budget clients (Wikipedia the Free Encyclopedia, 2015). Other
definition according to Small Business Encyclopedia (2015), print ads that run in local or
national, daily or weekly news publications.
Social Networking Ads - Also social media targeting is a group of terms that are used to
describe forms of online advertising that focus on social networking services. One of the major
benefits of this type of advertising is that advertisers can take advantage of the users'

demographic information and target their ads appropriately (Wikipedia the Free Encyclopedia,
2015).
Poster and Flyers Poster is any piece of printed paper designed to be attached to a wall or
vertical surface (Gosling, 1999). Flyer is a small handbill advertising an event or product.
Billboards - is a large outdoor advertising structure, typically found in high-traffic areas such as
alongside busy roads. Billboards present large advertisements to passing pedestrians and drivers.
Typically showing large, ostensibly witty slogans, and distinctive visuals, billboards are highly
visible in the top designated market areas (Wikipedia the Free Encyclopedia, 2015).

Dependent Variable
The dependent variable of the research study is sales rate According to Wikipedia the
Free Encyclopedia (2015), sales rate, other terms by hit rate refers to a metric or measure of
business performance traditionally associated with sales. Sales can be measured either as the sum
of dollars pursued or the number of deals pursued. Accurate calculation requires clear definition
of when a sales opportunity is firm enough to be included in the metric, as well as firm
disposition of the opportunity.
The hit rate may be measured for the whole sales force or by sales region, sales person or
product group. It may be used to benchmark the different sales periods and to benchmark the
effectiveness of the own sales force with other companies of the same sector. Due to the high
costs involved with making proposals the hit rate is a very useful tool especially for companies
in industrial marketing.

The Relationship between Advertising Medium and Sale rate.

According to Caves, et al (1980), there are two demands in the market for advertising,
and as a result two prices are established. In addition to consumer demands for advertising and
the price charged to consumer, there is the demand for advertising by individual firms and the
prices paid by them to the information media for carrying their message to consumer.
Advertising to the firm represents a productive input where the various media are competing
suppliers. The firms demands for these services are derived from the profit calculations of the
firms and, like other inputs are define by marginal revenue of advertising messages. Equilibrium,
the marginal cost of advertising.
Bootwala mentioned that advertising has no direct impact on the sales (2007). This is
because advertising together with many other factors affects the sales of the advertised product.
Sale are affected by factors such as expansion of the sales force, improved distribution, lessened
efforts on the part of the competitors, general improvements in the business conditions and so
on. Usually mere increase in sales is not a measure of the effectiveness of advertising.
Advertising may be a major factor, a contributing factor or had a little effect on the sales of the
product.
According to M. Trejan and R. Trejan (2009), advertising and sales promotions both are
important tools of promotion mix of a business organization. Effectiveness of ad-campaign can
be enhanced through sales promotions effort. If sales promotion and advertising program are

well coordinated, they can have significant effect on sales. Announcement of sales promotions
schemes. In advertisement-copy help to make it more eye-catching and helps to break mediaclutter. Even if there is many ad-copies in the media, the ad-copy giving information some salespromotions scheme, viz free gift, off season discount etc.
A recent study of Krishnamurthi, Narayan and Raj (1986) found that if the advertising
weight is doubled, effects on sales of a dominant brand will be observed almost immediately
with in purchased cycle. These results seem to indicate that the advertising/sales response
functions concave. However, these results may generalize only to situations in which there was
prior advertising and the advertised brand is the dominant brand.
According to Greunes et.al (2000) broadly the role of advertising expenses in an
economy can be classified under two heads. According to one school of thought, advertising
increases profits and reduces consumer welfare by creating spurious product differentiation and
barriers to entry. While the other school of thought focuses on the informative character of
advertising, which makes markets more competitive and reduces profits by informing the
customers about prices and quality.
According to Sundarsan (2007) advertising is a prominent feature of modern business
operations. One can encounter advertising messages, while watching TV, reading magazines,
listening to the radio, surfing the internet, or even simply while walking down the street, as
advertisement has a stimulating influence on purchasing behavior of the customer. This
mammoth surge of advertisements from every possible source is basically to fulfill the urge of
marketers to reach to a large number of people so that their product may receive optimum
exposure. The role of this mass mode of communication in creating brand loyalty, deterring entry

and consequently increasing sales revenue and profits of the organization and causing impact on
the business cycle has been emphasized at various points of time by different studies.
The independent variable of this research study is advertising medium such as television
commercial, newspaper advertisement, posters or flyers and billboards. While the dependent
variable is Sales Rate or the total cars sold per month vis--vis. The respondent must participate
to this research to know what is the most effective advertisement medium to be use on selling
cars and which oh the six independent variable are they commonly used.

RESEARCH PARADIGM
Independent Variable

Dependent Variable

I. Advertising Medium
A. Television Commercial
B. Newspaper Advertisement
C. Social Networking
Advertisement
D. Posters and Flyers
E. Billboards

SALES RATE

Research Hypothesis
There is a relationship between the advertising medium and sales rate.

OPERATIONAL DEFINITION
Independent Variable
Advertising medium is the act or practicing public attention to ones product, service,
needs, etc., such as the following:
Television Commercial - It is about relaying a specific social, political or sales pitch in a
limited amount of time, broadly ranging in between few seconds to several minutes. It is
produced and paid for by the organizations called advertiser or marketer and streamed from a
television network. The purpose is to generate demand for a product, service, idea or cause.
News Paper Advertisement - the advertisement appears alongside regular editorial content.
Display ads are generally used by businesses and corporations towards promotion of their goods and
services and are generally for larger budget clients.

Social Networking Advertisement - is a group of terms that are used to describe forms
of online advertising that focus on social networking services. One of the major benefits of this
type of advertising is that advertisers can take advantage of the users' demographic information
and target their ads appropriately.
Posters - A large, usually printed placard, bill, or announcement, often illustrated, that is
posted to advertise or publicize something.
Flyers - is a form of paper advertisement intended for wide distribution and typically
posted or distributed in a public place or through the mail.
Billboards - is a large outdoor advertising structure, typically found in high-traffic areas
such as alongside busy roads. It also present large advertisements to passing pedestrians and

drivers. Typically showing large, ostensibly witty slogans, and distinctive visuals, billboards are
highly visible in the top designated market areas.

Dependent Variable
Sales Rate - Calculated as previous inventory plus new merchandise minus the amount
of merchandise currently on hand. The result is expressed for a specified period. The rate of sale
can be calculated daily, monthly, quarterly or annually. Identity the amount of product sold for
each period. The sales rate can be calculated on a monthly basis. Review the sales rate formula.
To get the sales rate, subtract the previous month's sales from the current month's sales. Divide
by the previous month's sales, and then multiply the result by 100.

Research Method
The research method that they used in this study is descriptive research; it is used to
describe characteristics of a population or phenomenon being studied. The researchers used
descriptive research because they want to find out particular population of car brand branches
within Metro Manila.
Locale of the study

Source: Google Map

Figure 3.1. Metro Manila

Source: Google Image

Figure 3.2. Metro Manila
The research study was taken within Metro Manila. Metropolitan Manila commonly
known as Metro Manila, the National Capital Region (NCR) of the Philippines, is the seat of
government and the most populous region of the country which is composed of Manila, the
capital city of the country, Quezon City, the country's most populous city, the Municipality of
Pateros,

and

the

cities

Pias, Makati, Malabon, Mandaluyong, Marikina, Muntinlupa,

of Caloocan,
Navotas,

Las
Paraaque,

Pasay, Pasig, San Juan, Taguig, and Valenzuela.

Population and Sample
Metropolitan Manila commonly known as Metro Manila, the National Capital Region
(NCR) of the Philippines, is the seat of government and the most populous region of the country.

The prepared questionnaire was distributed to a random and we get the 50% of the total number
of car branches in Metro Manila as our respondent. The respondent should be the Marketing,
Sales Supervisor.

Source: Google Image

Figure 3.3. Metro Manila

Table 3.1. Car Branches in Metro Manila

Car Brands

Population of Branch

Chevrolet
Ford
Honda
Isuzu
Mitsubishi Motors Company
Suzuki
Toyota
Nissan Motor Corporation
Total
Source: Google

9
13
12
7
22
12
16
9
100

The car branches along Metro Manila has a total number of 100 branches. 9 branches from
Chevrolet, 13 branches from Ford, 12 branches from Honda, 7 branches from Isuzu, 22 branches
from Mitsubishi Motors Company, 12 branches from Suzuki, 16 branches from Toyota and 9
branches from Nissan Motor Corporation.
Table 3.2. Population of Car Branches
Car Brands

Population of Branch

Sample/Respondents 50%

Chevrolet

Ford

13

Honda

12

Isuzu

Mitsubishi Motors Company

22

11

Suzuki

12

Toyota

16

Nissan Motor Corporation

Total

100

50

Source: Google

The foregoing table shows that the total respondent is 50 and that is the 50% of the total
car branches in Metro Manila. 4 respondents from Chevrolet, 7 respondents from Ford, 6
respondents from Honda, 4 respondents from Isuzu, 11 respondents from Mitsubishi Motors
Company, 6 respondents from Suzuki, 8 respondents from Toyota and 4 respondents from Nissan
Motor Corporation.

Research Instrumentation
The researchers used a questionnaire as the principal instrument to gather data. The
Marketing or Sales Supervisor of the car branch must answer the survey form. On the first part of
questionnaire the respondent must indicate how they often use the following Advertisement
Medium (television commercial, newspaper advertisement, social networking, advertisement
Posters, flyers and billboards), in advertising products. The second part is the sales rate, where the
respondents must indicate the sales rate of the month the actual cars delivered and actual cars
sold.

Validation of the Instruments

The questionnaire was constructed with the ideas of the researchers and the research
adviser. The questionnaire was submitted to the research adviser for checking and validation. The

research adviser gives the corrections and suggestions. Revision was made on questionnaire and
validated by the research adviser.

Data Gathering Procedure

A. The researcher request for approval from the Vice President for Academic Affairs, Dr.
Melito A. Baccay to conduct a study with the various car retailers within Metro
Manila.
B. Upon written and verbal approval of the request, the researcher asked for permission
and appointment to perform a survey from the said retailers.
C. The researchers proceeded on the agreed schedule and conduct a survey from the
Sales or Marketing Manager.
D. The survey was created using sustainable questions modified from related research
and individual questions formed by the researcher.
E. The survey was compromised of series of questions, which were related to the
advertisement mediums being used and its monthly sales rate.
F. In the questionnaire, ordinal scale was used to determine if the respondent agreed or
disagreed in a statement.
G. After gathering all the data from the respondents, it was encoded and categorized
using Microsoft Excel software.

Data Processing and Statistical Treatment of Data

First, the researcher assigned the corresponding codes in response to the answer in the
questionnaire form. The assigned codes were meant to be in integer form for statistical purpose.
Second, the worksheet was formulated and it consists of 45 columns, each column represents an

equivalent variable in the questionnaire such as the advertisement medium, car retailers and its
sales rate. The subsequent rows were allocated for the answers per questionnaire form. Then, for
verification purposes and ease of encoding process, formulated worksheet was printed for use as
the format for preliminary tallying of data. In tallying, it is rest assured that the coding scheme
was followed. After tallying, the data were keyed into a computerized data entry system using
Microsoft Office Excel. Third, the computerized data were loaded into the Statistical Package for
the Social Sciences (SPSS).
Correlational analysis was done to examine whether the variable was associated with
another variable. The researchers used Pearson Product Moment Correlation otherwise known as
Pearson r was used to measure the data being entered in the SPSS. It will test the relationship of
the advertisement medium (IV) and sales rate (DV). Analyses of data were being guided by
means of formula.
The frequency of the each response will be determined on the number of the respondents
who will check in the particular item. The Demographic Profile of the respondents and its
Advertising Medium will be determined by using the following formula.
Pearsons product-moment correlation coefficient is used to measure linear association between
two variables. It will determine if there is correlation between the advertising medium and sales
rate of different car retailers.

Pearson Product Moment Correlation

r=

N ( XY ) ( X )( Y )

N ( X ) ( X ) N ( Y
2

) ( Y )2

Where:
N = number of samples
X = first variable
Y = second variable
The result of the computed relationship between the two respondents will be interpreted
according to Pearsons scale that varies from +1 to -1. It will base from the following values.
R = below .20

(extremely low relationship)

R = .20 to 39

(low relationship)

R = .40 to 59

(moderate relationship)

R = .60 to 79

(high relationship)

R = .80 to 1.0

(very high relationship)

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