Chapter I

Introduction

For any business to be successful in today’s increasingly competitive

marketplace, it must provide a quality product that satisfies customer needs, offer
affordable price, and engage in wider distribution and back it up with effective
promotion strategy. Blattberg and Neslin (1990) define promotion as an action-
focused marketing event whose purpose is to have a direct impact on the behavior of
the firm’s customer.
Marketing is the driving force in the pharmaceutical industry as in other
industries. Consumers are exposed to thousands of marketing communication
messages every day. Organizations compete heavily for the attention and custom of
the consumer through their advertising. Marketing communication attempts to provide
information to the consumer about the organization’s products and service offerings.
The various methods of communicating with the consumer need to be in agreement to
deliver holistic and effective message that will satisfy both organizational and
consumer needs.
Promotion, the fourth P in the marketing mix, is now more commonly referred
to as marketing communications. Marketing communications can be defined as the
means by which firms attempt to inform, persuade, and remind customers directly or
indirectly about the products and products they sell. In a sense, marketing
communications represent the voice of the company and its products and are a means
by which it can establish a dialogue and build relationships with consumers.
Marketing communications are all about getting the word out about a company’s
products and services because customers cannot buy what they do not know about,
and, in the process, creating more of a two-way relationship with customers than was
typical of the more traditional notion of promotion. (Kotler and Keller, 2009)
A further conceptual iteration is the term promotions (IMC), which is the
coordination and integration of all marketing communication tools, avenues, and
sources within a company into a seamless program designed to maximize the
communication impact on consumers, businesses, and other constituencies of an
organization. (Dana-Nicoleta and Kenneth, 2007)

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 The objective of the marketing communication message is to persuade the
audience to purchase the product or service. Therefore, the consumer needs to be
receptive to the message and to be able to interpret it in such a way that the intent to
purchase is established (Koekemoer, 2004).
Promotions have been one of the most researched elements of the marketing
mix. There are still many interesting and challenging issues facing managers. The
growth of real-time, sales data coupled with accurate promotional histories opens the
future in which real-time on-line promotions becomes the norm. This leads to
opportunities for sales promotion researchers and practitioners to develop new
methods, tactics and strategies.
Several years ago, a global distributor embarked on an ambitious event-based
marketing campaign. In this campaign, the companies sponsored lavish dinners at
gourmet restaurants for community influencers. These were all high-touch
promotions, aimed at getting a focus group of consumers, and building general brand
awareness. But the company had no way to evaluate the effectiveness of this
spending. It wasn’t long before the company’s leaders realized that they needed a
more rigorous analysis of the return on their investment in this campaign. They finally
imposed this rigor by creating a database of event cost information and requiring a
simple breakeven analysis for any proposed event.
The results were eye-opening. It turned out that the breakeven cost of the
events varied widely. By helping the company’s marketers understand how much
volume each event would have to deliver to make financial sense, a basic business
case analysis allowed them to gauge their spending. As a result, about one-fifth of the
budget was reallocated away from events whose profitability was doubtful, and a 10
percent improvement in marketing effectiveness was captured.
As marketers move to a more varied, shifting mix of advertising and
promotion, they are coming face to face with the lack of insight they have historically
had about which media choices work well, why customers buy, and what returns will
be generated by their spending. This lack of insight did not matter very much when
marketers had no choice but to depend on television, radio, and print the traditional
mass-market media. Television’s gross ratings points (GRPs), which measure the
percentage of a target audience reached by a particular advertisement, didn’t explain
why particular ads or placements led to increased sales and others didn’t, but that
combination of mass media and metrics was the only game in town.

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 However, there has been an explosion of media vehicles, and data is much
more complete, granular, and evocative of consumer attitudes and willingness to
purchase products. It is possible to accurately quantify the return on marketing spend
(also known as marketing ROI). All that’s lacking is the sophistication needed to gain
insight from analytics, and the will to use that insight not just in the marketing
function, but in the company as a whole.
Pharmaceutical marketing is differed from other promotion types because of
its target customer type. All of the pharmaceutical distribution companies in Myanmar
target not only the end user but also the channel members such as intermediaries.
Therefore, the marketing communication strategies are mainly developed for the
intermediaries not for end users.
The operation and competition of pharmaceutical industry has change rapidly
over the past few years. International pharmaceutical companies are entering into
Myanmar to find business opportunities in the country. Myanmar’s pharmaceutical
market are being attractive for investors with relatively population of over 60 million
people. Official figures indicate a USD 100-120 million, but pharmaceutical
specialists put the figure at USD 400 million since data available is based on customs
value and not only on the actual sales volume, and figures not incorporated are the
illegal cross border trade and the under reporting of goods actually brought into the
Myanmar market (Myanmar Pharmaceutical Industry-Promising Growth, Anu Seth,
2016).
The medicine distribution companies in Myanmar now imported two types of
drugs in the market; over the counter (OTC) drugs and prescription drugs. Over-the-
counter (OTC) drugs are medicines sold directly to a consumer without a prescription
from a healthcare professional, as opposed to prescription drugs, which may only be
sold to consumers possessing a valid prescription and aliment that make continuous
medical supplies of paramount important.
Both types of medicine can be sold at the wholesale market in Myanmar as the
intermediaries of many medicine distribution companies since these companies have
been emerged. Myanmar government also issues the trading license to these
wholesale shops to sell medicine according to the permission of FDA regulations and
other trading regulations. Therefore, medicine wholesale market is an important
channel to emphasize from all of the medicine distribution companies in Myanmar.
This channel is vital not only to increase GDP and government income by trading

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medicines around the country but also to increase employment for basic workers by
operating nearly thousands of workers in each plaza.

1.1 Rationale of the Study

Marketing communications are the means by which firms attempt to inform,
persuade, and remind consumers directly or indirectly about the products and brands
they sell. In a sense, marketing communications represent the voice of the company
and its brands; they are a means by which the firm can establish a dialogue and build
relationships with consumers. The determination of the most appropriate, effective,
and influential marketing communication mix elements on the customer loyalty,
which achieve the strong, important, and useful indications for both decision makers,
and marketing planners of companies.
Many customers today feel there are fewer real product differences, so they
show less brand loyalty and become more price- and quality-sensitive in their search
for value, and less tolerant about undesired marketing. Moreover, there are available
many similar medicine from different countries origin in Myanmar market.
Some businesses use marketing communication mix to get customer
satisfaction and to catch up loyal customers in the market. Like these businesses, AA
Medical Products Limited tries to get more loyal customers in the market through
marketing communication mix. Nowadays, AA Medical Products Limited faces
competitions with many medical distribution companies in the market to maintain
loyal customers even the company gets more new customers. Therefore, AA Medical
Products Limited have to be observed its customer satisfaction which effect on
loyalty. Among the ways of becoming customer satisfaction, this study is aim to
examine the marketing communication mix of AA Medical Products Limited which
has the ability to reach the target customers and persuading them directly to become
loyal customers.
As an imported medicines distribution company, AA Medical Products
Limited operates marketing communication activities broadly to its targeted
customers. It is doing advertising on social media as well as in printed media and
advertisement can encourage consumers in order to use its service. The company hires
many qualified staffs to operate direct and personal selling as the traditional selling
method of medicine market. It is also build organizational goodwill by offering
sponsorship deal in some events.

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 The company has five major types of customers; doctors, pharmacies,
retailers, wholesalers, and government hospitals. The company distributed Over the
Counter (OTC) types of medicine and Generic types of medicine with many channels,
such as government hospital’s tender channel, private hospitals channel, doctors’
channel, pharmacies’ channel, retail and wholesale channel. AA Medical Products
Limited was established in 1996. Today, AA Medical has a wide distribution network
in Myanmar medical network and performs not only traditional marketing but also
digital marketing. Therefore, AA Medical distributes these medicines around the
whole Myanmar and makes different marketing communication activities according
to the channel type, distribution area, and medicine type.
This paper is aim to examine the company wide marketing communication
mix of AA Medical Products Limited for all types of medicines distributed. Although
these communication types and periods are different as products, same are used in
each channel. Then, this paper reported customer loyalty which is caused by
marketing communication mix of AA Medical Products Limited.

1.2 Objectives of the Study

The objectives of this study are:
1. To identify the marketing communication mix of AA Medical Products
Limited,
2. To examine the effects of marketing communication mix on customer
satisfaction, and
3. To analyse the effects of customer satisfaction on customer loyalty.

1.3 Scope and Method of the Study

This study mainly emphasized on the communication mix activities of AA
Medical Products Limited. Primary data was collected from personal interview with
marketing manager and sales team about their implementation of marketing
communication mix activities in AA Medical Products Limited. Customer satisfaction
data was gathered from 120 customers who purchased at least one year from AA
Medical Products Limited by using structured questionnaire. Customers were selected
by convenience sampling method. Descriptive research was conducted in October,
2018. Secondary data was obtained from annual reports and records of AA Medical

5
Products Limited. The collected data were analyzed by correlation and regression
method.

1.4 Organization of the Study

This study is organized by five chapters. Chapter (1) is the introduction which
presents rationale of the study, objectives of the study, scope and method of the study
and organization of the study. Chapter (2) focuses on theoretical background which
includes theories of marketing communication mix describing four types: personal
selling, sales promotion, internet marketing, events and sponsorship marketing, and
the theory of customer satisfaction and customer loyalty. Chapter (3) describes
marketing communication mix of AA Medical Products Limited. Chapter (4) presents
the analysis on marketing communication mix of AA Medical Products Limited.
Chapter (5) concludes the findings and discussions, recommendation and suggestions,
limitation and needs for the further research.

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 Chapter II
Theoretical Background

This chapter presents the theoretical background of marketing, marketing mix,

marketing communication mix and customer loyalty. Firstly, the marketing concept is
described and the role of communication is presented. Then, marketing
communication mix is described and the modes of marketing communication mix are
explained. Finally, the impact of customer loyalty on marketing communication mix
is discussed.

2.1 Marketing Concept

As companies change, so does their marketing organization. Marketing is no
longer a company department charged with a limited number of tasks—it is a
company-wide undertaking. It drives the company’s vision, mission, and strategic
planning. Marketing includes decisions like who the company wants as its customers,
which of their needs to satisfy, what products and services to offer, what prices to set,
what communications to send and receive, what channels of distribution to use, and
what partnerships to develop. Marketing succeeds only when all departments work
together to achieve goals. Therefore, marketing is of interest to everyone, whether
they are marketing goods, services, properties, persons, places, events, information,
ideas, or organizations.
Marketing is about identifying and meeting human and social needs. One of
the shortest good definitions of marketing is meeting needs profitably. (Kotler and
Keller, 2012) The American Marketing Association offers the following formal
definition: Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
The term “Marketing” is distinguished between the social and managerial
definitions. As the managerial definition, Marketing is the art and science of choosing

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target markets and getting, keeping and growing customers through creating,
delivering, and communicating superior customer value. The social definition that
serves as: Marketing is a societal process by which individuals and groups obtain
what they need and want through creating, offering, and freely exchanging products
and services of value with others.
In recent years, however, in the highly competitive marketplaces that are more
often happened, companies must always be moving forward with marketing
programs. Marketers must try to balance increased spending on search advertising,
social media, direct e-mail, and text/SMS marketing efforts with appropriate spending
on traditional marketing communications. “Marketing in an Age of Turbulence” can
offer some recommendations for adjusting to new marketing realities for business.
The marketing concept emerged in the middle of 1950 as a customer-centered,
sense-and-respond philosophy. The job is to find not the right customers for products,
but the right products for customers. The marketing concept holds that the key to
achieving organizational goals is being more effective than competitors in creating,
delivering, and communicating superior customer value to your target markets.
Modern marketing is aimed at creating long-term relationships with
consumers. The premise is that satisfied customers will keep returning to use the
organization’s offerings and will provide positive feedback to other people. For this
reason the American Marketing Association (AMA) revised the definition for
marketing to reflect the importance of customer relationships. According to the AMA,
marketing is a function in the organization and a system aimed at developing,
communicating and providing value to consumers. It should be focused on managing
customer relations in ways that will be beneficial to the organization and to its
stakeholders (Belch and Belch, 2007). Stakeholders include employees, distribution
channel members, customers, the media, government and several special-interest
groups (Clow and Baack, 2010).
This means that the organization will aim to reach certain objectives through a
well-constructed marketing strategy. Successfully implementing marketing strategies
requires a thorough understanding of the fundamentals of communication, as well as
careful consideration and integration of the different elements in the marketing mix.

2.2 Marketing Mix

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 In 1964, McCarthy classified various marketing activities into marketing-mix
tools of four broad kinds, which he called the four Ps of marketing: product, price,
place, and promotion.
Marketers classify products on the basis of durability, tangibility, and use
(consumer or industrial). Each type has an appropriate marketing-mix strategy.
According to Kotler and Keller (2012), these elements are included in product
definition; product variety, quality, design, features, brand name, packaging, sizes,
services, warranties, and returns.
Price is one of the ways marketers communicate with customers. Price is seen
as revenue oriented been the only marketing mix element that produces revenue.
Winkler (1995) defined price as the amount of money which is sacrificed to obtain
something. Price consists of list price, discounts, allowances, payment period, and
credit terms.
Place which is also called distribution, is consider to cover distributional
activities of organizations. Kotler (1976) indicates that distribution involves the
distribution channel, distribution coverage, outlet locations, inventory levels and
location. Channels, coverage, assortments, locations, inventory, and transport are also
included to describe place (Kotler and Keller, 2012).
Promotion is sending a persuasive message about a particular product to
customers. The sales promotion, advertising, sales force, public relations, and direct
marketing are described as promotion. Promotions are an integral part of the
marketing mix. In general, promotions tend to focus on how to attract the attention of
consumers and motivate them to take action or make a purchase. There are many
ways marketers can go about promoting a product or service, but it requires strategic
research into the target audience and where to find them.

2.3 Marketing Communication Mix

In 21st century, marketer’s job is one of the most difficult in all companies due
to the changes of global environment. These changes are taking place around the
world and effect not only to international business but also to domestic small
business. Modern marketing is emerged for developing a good product, pricing it
attractively, and making it available to target customers. Companies must also

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communicate with their customers, and what they communicate should not be left to
chance. (Armstrong et. al., 1996)
In the era of mass communications and emerging mobile technologies, an
organization must build an adequate mix of marketing communications, in order not
to drown in a sea of information. This will be made in a relation with the good
interaction of objects and forces, influencing the management outside the company,
and marketers’ ability to establish and maintain successful corporations with target
customers. Marketing communications of an organization is a complex of measures,
techniques and methods by which information about goods, services or brand of the
company reaches its users. Kotler and Keller (2012) define marketing
communications as the means by which firms attempt to inform, persuade, and remind
consumers directly or indirectly about the products and brands they sell.
In a sense, marketing communications represent the voice of the company and
its brands; they are a means by which the firm can establish a dialogue and build
relationships with consumers. By strengthening customer loyalty, marketing
communications can contribute to customer equity. Marketing communications also
work for consumers when they show how and why a product is used, by whom,
where, and when. Consumers can learn who makes the product and what the company
and brand stand for, and they can get an incentive for trial or use. Marketing
communications allow companies to link their brands to other people, places, events,
brands, experiences, feelings, and things. Therefore, marketing communications in
almost every medium and form have been on the rise, and some consumers feel they
are increasingly invasive.
According to Ross (2001) he defined promotion mix as a total marketing
communication program of a particular product. In order to ensure that organization
promotion strategies is well accepted and received by its consumers, the organization
should have a strong way of communication because good communication skills and
effective promotion is a tool for every organization to compete in the industry (Nor
Amira, 2013). The promotional element of the marketing mix is also referred to as the
marketing communication or promotional mix, and includes various communication
methods and activities aimed at the target consumer.
Various authors agree that the marketing communication mix includes the
elements of advertising, public relations, sales promotion, personal selling, direct
marketing, events and sponsorship marketing, as well as Internet/interactive

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marketing (Belch and Belch et. al., 2007). McCarthy (1998) determined the mix of
marketing communications as a specific combination of elements: advertising,
personal selling, sales promotion, public relations and direct marketing that
companies use to implement their targets for advertising and marketing. All
communication activities must be well prepared and conducted in good order through
comprehensive management.
According to Kotler and Keller (2012), the marketing communications mix
consists of eight major modes of communication: advertising, sales promotion, events
and experiences, public relations and publicity, direct marketing, interactive
marketing, word-of-mouth marketing, and personal selling.

2.3.1 Personal Selling

Personal selling, according to Jobber (2001), is the marketing task involving
face-to-face contact with a customer. Unlike advertising, promotion, sponsorship and
other forms of non-personal communication, personal selling permits a direct
interaction between buyer and seller.
This two-way communication means that the seller can identify the specific
needs and problems of the buyer and tailor the sales presentation in the light of this
knowledge. The particular concerns of the buyer can also be dealt with on a one-to-
one basis. However, the nature of the personal selling function is changing.
Organizations are reducing the size of their sales forces in the face of greater buyer
concentration, moves towards centralized buying, and recognition of the high costs of
maintaining a field sales team. The concentration of buying power into fewer hands
has also fuelled the move towards relationship management often through key
account selling. This involves the use of dedicated sales teams who service the
accounts of major buyers.
Personal selling is defined as a verbal communication and face-to-face
interaction with one or more of the potential buyers in order to provide the product or
service, or to answer questions, or to respond to requests or others (McCarthy and
Perreault, 2004). This promotional activity can be measured through: the level of
training and skills of sales staff, the style and appearance, the possibility of providing
information, capabilities in solving problems, displaying, verbal persuasion, and style
presentation, etc.

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 Although no one debates the importance of the sales force in marketing
programs, companies are sensitive to the high and rising costs of maintaining one,
including salaries, commissions, bonuses, travel expenses, and benefits. Not
surprisingly, companies are trying to increase sales force productivity through better
selection, training, supervision, motivation, and compensation. Personal selling is an
ancient art. Effective salespeople today have more than instinct, however. Companies
now spend hundreds of millions of dollars each year to train them in methods of
analysis and customer management and to transform them from passive order takers
into active order getters. Reps are taught the SPIN (situation, problem, implication,
need-payoff) method to build long-term relationships (Kotler and Keller, 2012).
2.3.2 Sales Promotion
There have been many definitions of sales promotion. According to John and
William (1986), the sales promotional marketing activities considered to be more
efficient than advertising publicity and personal selling. In addition to that other
researchers considered sales promotion as a direct inducement, proposing special
added value for goods to target salesperson, customers or resellers (William and
Ferrell, 1987). According to Joncos (1990) sales promotion is an effective way of
competitive retaliation rather than marketing activities.
Mercer (2002) defined promotion as it is a technique which mainly used by
marketer on a temporary basis to create an attractive goods or services to encourage
the customers to purchase goods or services in a specific time period by providing
more benefits. Belch and Belch (1996) defined sales promotions as direct
encouragements provide an additional stimulant for the products to be sold or
distributed in a short period of time.
Both Totten and Block (1994) and Kotler (2002) defined sales promotion as
any activity which obtained by the producers usually short term designed to
encourage quicker or greater amount trade retailer or wholesaler as well as influence
individual to buy the product. According to Perreault, Cannon and McCarthy (2006)
and Shimp (2003) sales promotion defined as a communicating information within
two parties, seller and potential buyers, which is obtained to effect customers
decisions.
According to Kotler and Keller (2012), sales promotion is a key ingredient in
marketing campaigns, consists of a collection of incentive tools, mostly short term,
designed to stimulate quicker or greater purchase of particular products or services by

12
consumers or the trade. Sales promotion includes tools for consumer promotion
(samples, coupons, cash refund offers, prices off, premiums, prizes, patronage
rewards, free trials, warranties, tie-in promotions, cross-promotions, point-of purchase
displays, and demonstrations), trade promotion (prices off, advertising and display
allowances, and free goods), and business and sales force promotion (trade shows and
conventions, contests for sales reps, and specialty advertising).

2.3.3 Internet Marketing

Powerful Internet and mobile technology have led to rapid increase of
companies’ forces to offer their products and build relationships with your customers
through social media, websites, mobile applications, e-commerce, online promotions,
etc. Creating an online presence and finding the most appropriate way to
communicate with the target audience is cost-effective, fast and reliable.
These are the main tools for creating effective marketing communication mix
of every business. Realizing this aspect of its activity the company should be aware of
the various legal and ethical issues related to marketing communications. Respect the
privacy of customers and adherence to social norms and government regulations
while building a powerful marketing communication mix contributes to the growth of
any organization.
The interconnectedness of globalization and rapid technological change is
inevitable. Fast technological improvements and the penetration of the internet
resulted in the rise of a global customer. Globalization therefore is an area, which
needs to be observed alongside other changes affecting communication. A global
customer uses the same technology whenever searching the web or listening to music
or making a transaction online. This means that companies need to rethink their
strategies and appear in the global market space in order to target all those who share
similar needs. This can also be categorized as the emergence of global segments.
Internet marketing is not a singular approach to raising interest and awareness
in a product. Because of the vast number of platforms the Internet creates, the field
encompasses several disciplines. It involves website, search engine, email, social
networking, blogging, and video content.

2.3.4 Events and Sponsorship Marketing

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 Sponsorship has been defined in the literature as an exchange between a
sponsor and a sponsored entity (also called property), whereby the sponsor invests in
cash and or in kind in a property in order to secure the rights to exploit the
commercial potential derived from its association with that property (Meenaghan,
1983). A comprehensive definition describes sponsorship as the provision of
resources (e.g., money, people, equipment) by an organization directly to an event,
cause, or activity in exchange for a direct association (link) to the event, cause or
activity (Sandler et al., 1997).
According to Kotler and Keller (2012), company-sponsored activities and
programs are designed to create daily or special brand-related interactions with
consumers, including sports, arts, entertainment, and cause events as well as less
formal activities. Many firms are creating their own events and experiences to create
consumer and media interest and involvement. The importance of sponsorship as a
marketing communications tool is well recognized and documented in the literature
and annual sponsorship spending worldwide has been growing rapidly. Since 2012,
the total global sponsorship spending has increased up to $57.3 billion.
Event sponsorship is one of the element of marketing communication mix.
Many authors describe it within advertising. Event sponsorship occurs with a
company pays to have a presence at a sports, entertainment, nonprofit or community
events. The sponsorship may include a mix of benefits including booth representation
during the event to hand out samples, gifts and literature, name mention during the
event and ad spots connected to the event.

2.3.5 Advertising
Advertising reaches geographically dispersed buyers. It can build up a long-
term image for a product or trigger quick sales. Certain forms of advertising such as
TV can require a large budget, whereas other forms such as newspaper do not. The
mere presence of advertising might have an effect on sales: Consumers might believe
a heavily advertised brand must offer good value (Kotler and Keller, 2012).
Advertising is any paid form of non-personal presentation and promotion of
ideas, goods, or services by an identified sponsor via print media (newspapers and
magazines), broadcast media (radio and television), network media (telephone, cable,
satellite, wireless), electronic media (audiotape, videotape, videodisk, CD-ROM, Web
page), and display media (billboards, signs, posters).

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2.3.6 Public Relations and Publicity
According to Belch and Belch (2007), Publicity refers to non-personal
communications regarding an organization, product, service, or idea not directly paid
for or run under identified sponsorship. It usually comes in the form of a news story,
editorial, or announcement about an organization and/or its products and services.
Like advertising, publicity involves non-personal communication to a mass audience,
but unlike advertising, publicity is not directly paid for by the company. The company
or organization attempts to get the media to cover or run a favorable story on a
product, service, cause, or event to affect awareness, knowledge, opinions, and/or
behavior. Techniques used to gain publicity include news releases, press conferences,
feature articles, photographs, films, and videotapes.
Public relations and publicity is a variety of programs directed internally to
employees of the company or externally to consumers, other firms, the government,
and media to promote or protect a company’s image or its individual product
communications (Kotler and Keller, 2012).

2.3.7 Direct Marketing

According to Kotler and Keller (2012), direct marketing is the use of
consumer-direct (CD) channels to reach and deliver goods and services to customers
without using marketing middlemen. Direct marketers can use a number of channels
to reach individual prospects and customers: direct mail, catalog marketing,
telemarketing, interactive TV, kiosks, websites, and mobile devices. They often seek a
measurable response, typically a customer order, through direct-order marketing.
Direct marketing has been a fast-growing avenue for serving customers, partly
in response to the high and increasing costs of reaching business markets through a
sales force. Sales produced through traditional direct marketing channels (catalogs,
direct mail, and telemarketing) have been growing rapidly, along with direct-mail
sales which include sales to the consumer market, B2B, and fund-raising by charitable
institutions.

2.3.8 Word-of-Mouth Marketing

Consumers use word of mouth to talk about dozens of brands each day, from
media and entertainment products such as movies, TV shows, and publications to

15
food products, travel services, and retail stores. Positive word of mouth sometimes
happens organically with little advertising, but it can also be managed and facilitated.
It is particularly effective for smaller businesses, with whom customers may feel a
more personal relationship. Many small businesses are investing in various forms of
social media at the expense of newspapers, radio, and Yellow Pages to get the word
out (Kotler and Keller, 2012).
Social media promotes the flow of word of mouth before delving into more
detail on how word of mouth is formed and travels. Social media are a means for
consumers to share text, images, audio, and video information with each other and
with companies and vice versa. Social media allow marketers to establish a public
voice and presence on the Web and reinforce other communication activities. Because
of their day-to-day immediacy, they can also encourage companies to stay innovative
and relevant.

2.4 Customer Satisfaction

Customers’ expectations result from their previous buying experiences,
friends’ and associates’ advice, and marketers’ and competitors’ information and
promises. If the marketer raises the expectations too high, the customer is more likely
to be disappointed but if the expectations are set too low by the marketer, the
customer I is not necessarily attracted and will not buy the product (Kotler, 2009).
Satisfaction describes the closeness between the expectations and the
perceived performance of the product. If the product’s performance does not meet the
customer’s expectations, the customer becomes disappointed. If it meets the
expectations, the customer is satisfied but if it exceeds expectations the customer is
delighted. These feelings of the customer define whether they will buy the product
again and if they will talk favorably or unfavorably about it with other people (Kotler,
2009).
Customer satisfaction is becoming an increasingly salient topic in many firms
and in academic research. One main rationale behind this interest is that customer
satisfaction is believed to be associated with fruitful customer behaviour from the
firm’s point of view. A number of empirical studies do in fact indicate that a link to
customer behaviour is at hand. For instance, a positive association has been observed
between customer satisfaction and loyalty and between customer satisfaction and the
propensity to recommend the supplier’s offer to other customers (Parasuraman, 1988).

16
2.5 Customer Loyalty
Customer loyalty is positively related to customer satisfaction as happy
customers consistently favor the brands that meet their needs. Loyal customers are
purchasing a firm’s products or services exclusively, and they are not willing to
switch their preferences over a competitive firm. In fact, customer loyalty is built
from the company to the customer. The more satisfied the customer, the more like to
do repeat business with a firm. Then, customer loyalty encourages customers to shop
particular brands regularly, to spend more money, to advertise the brand with a word-
of-mouth advertising and to have a positive shopping experience.
According to Shaw and Hamilton (1996), customer loyalty is the result of
consistently positive emotional experience, physical attribute-based satisfaction and
perceived value of an experience, which includes the product or services. To build
loyalty, customer experience management blends the physical, emotional and value
elements of an experience into one cohesive experience.
Retaining customers is less expensive than acquiring new ones, and customer
experience management is the most cost-effective way to drive customer satisfaction,
customer retention and customer loyalty. Loyal customers reduce costs associated
with consumer education and marketing, especially when they become net promoters
for the organization.

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2.6 Previous Research Studies on Marketing Communication Mix
Finding from previous study, regarding the effect of marketing communication
mix are described in the following Table (2.1).

Table (2.1) Previous Research Papers

No Author (Year) Independent Dependent Findings
Variables Variables
1 Thomas K. - Advertising - Customer Integrated marketing
Egwuonwu, - Direct Marketing Loyalty communications
James A - Sales Promotion (IMC) has a significant
Adeniran, - Public Relations positive effect on
Clara O. K. - Personal Selling customer loyalty.
Egwuonwu
(2017)

18
 2 F. Malibate - Advertisement - Customer Promotion mix has
Lugoye - Sales Promotion Satisfaction positive influence to
(2017) - Personal Selling - Customer Airtel’s customer
- Public Relations Loyalty satisfaction.
- Customer
Retention

3 Patrik Roupa - Advertising - Customer Communication mix

(2007) - Sales Promotion Satisfaction helps to improve the
- Personal Selling customer satisfaction
- Direct Marketing of Teilo Engineering
- Public Relations Limited because all of
the communication
mix have positive
relationship with
customer satisfaction.

According to “Integrated Marketing Communications and Customer Loyalty

in Nigeria’s Telecommunications Industry” by Thomas K. Egwuonwu et. al., (2017),
the integrated marketing communications (IMC) influenced customer loyalty at
varying degrees, ranging from high to weak extent.
According to “To Examine Promotional Mix Influence towards Customer’s
Satisfaction, Loyalty and Retention in Mobile Telecommunication: A Case of Airtel
Tanzania” by Focus Malibate Lugoye (2017), promotional mix had positive influence
to Airtel customers’ satisfaction. Customers were aware about promotions and the
majority of customers had been participating to various promotions of customers’
satisfaction, loyalty and retention.
According to “Communication Mix Analysis focused on customer’s
satisfaction Teilo Engineering Ltd.” by Patrik Roupa (2007), communication mix
helps to improve the customer satisfaction of Teilo Engineering Limited because all of
the communication mix factors have positive relationship with customer satisfaction.
Teilo Engineering wants to attract the markets of Central and Eastern Europe in the
next few years. Therefore, communication mix for satisfaction of customers will help
them to be successful in these markets.

19
2.7 Conceptual Framework of the Study
The framework for the study was modified from the empirical study described
in Figure (2.1). The Figure illustrates the marketing communication mix of AA
Medical Products Limited to maintain customer satisfaction and customer loyalty.

Figure (2.1) Marketing Communication Mix of AA Medical Products Limited

Independent Variables Dependent Variables

Marketing Communication Mix

Personal Selling

Customer
Sales Promotion
Satisfaction

Internet Marketing
Customer Loyalty
Events and Sponsorship
Marketing

20
Source: Own Compilation

According to Figure (2.1), it explains that factors of the marketing

communication mix activities of AA Medical Products Limited will affect the
customer satisfaction and then customer satisfaction will effect on customer loyalty.
The AA Medical Products Limited’s marketing communication mix activities are
personal selling, sales promotion, internet marketing, and events and sponsorships
marketing. This study proposes that the marketing communication mix of AA
Medical Products Limited, the effects of marketing communication mix on customer
satisfaction and the effects of customer satisfaction on customer loyalty have positive
and significant relationship. Marketing communication mix have positive effects on
customer satisfaction and customer satisfaction has positive effects on customer
loyalty.

Chapter III
Marketing Communication Mix of AA Medical Products Limited

This chapter aims to present marketing communication mix of AA Medical

Products Limited in Myanmar. There are three sections in this chapter. The first
section aims to present the organizational background and then services and products
provided by AA Medical Products Limited. The third section explores the marketing
communication mix of AA Medical Products Limited.

3.1 Profile of AA Medical Products Limited

AA Medical Products Limited is a private-owned business to serve and
provide genuine quality pharmaceutical, nutraceutical and essential products that are
required everywhere. AA Medical Products Limited was established at 1996 in
Myanmar. The AA Medical Products Limited owner and founder person is Dr. Zaw
Moe Khine who aims to better serve the healthcare requirements of the people of
Myanmar. AA Medical is the Myanmar's largest pharmaceutical distribution company
with branch offices throughout the country.

21
 AA Medical Products Limited is the authorized dealer or distributor of high
quality and reliable company among the leading companies in the areas of consumer
healthcare, pharmaceuticals, medical equipment and hospital care products
distribution companies in Myanmar. And World Food and Drug Administration
(FDA) recognized AA Medical as a famous pharmacy distribution company. In 1997,
Kalbe Farma Company limited was appointed AA Medical as their business partner in
Myanmar which company is the largest publicly listed pharmaceutical company in
Southeast Asia. In 2002, AA Medical was again appointed as a business partnership
with Zydus Cadila, one of the largest pharmaceutical companies in India. In 2004,
AA Medical began a business partnership with GlaxoSmithKline.
In 2012, AA Medical began a business partnership with Nipro, a world leading
manufacturer of Renal, Medical-Surgical and Interventional Radiology products. In
2014, AA Medical Products Limited was jointed a business partnership with Roche
Diagnostics, global pioneer in pharmaceuticals and diagnostics. In the same year, AA
Medical Products Limited was appointed as a business partner or authorized
distributor of nine medical products companies which are Unilab Co. Ltd, Roche Co.
Ltd, Pacific Co. Ltd, Psi Co. Ltd, Dae Hwa Pharm, Zuellig Pharma, Yuyu Pharma,
Korean Pharma Co. Ltd and Hanmiamn Co. Ltd which companies of pharmaceutical,
nutraceutical and essential products to distribute in Myanmar.
Today, AA Medical Products Limited opens 3 main offices and warehouses at
Yangon, Mandalay and Nay Pyi Taw. In addition, AA Medical Products Limited
opened the branch offices in Myintkyina, Mawlamyine, Taunggyi, Lashio, Magwe,
Sittwe, Kalay, Meik, Dawei and Pathein to provide for their customer. AA Medical
Products Limited has the wide distribution network which can reach to over 18,000
hospitals, clinics, pharmacies and drugs stores in Myanmar. Yangon and Mandalay
are the largest distribution areas of AA Medical Products Limited distribution
network to retail and wholesale pharmacy shops, private and public hospitals and
clinics. AA Medical Products Limited’s headquarter is located in Yangon.
AA Medical Products Limited has trained its workforce to be competent and
high performing employees with company vision and mission to meet more market
shares and competitive advantages within pharmacy industry. AA Medical Products
Limited was established vision statements as “To bring better healthcare to the people
of Myanmar, by being the country’s leading supplier and distributor of quality
medical products with international standards of safety”.

22
 AA Medical Products Limited established the following missions;
(1) The latest tested and proven medical products that meet international
standards of quality and safety.
(2) Efficient distribution and marketing services in accordance with good
distribution practices.
(3) Excellent customer support and staff development.
AA Medical Products Limited is organized with six main departments which
are Sales Department, Marketing Department, Finance & Account Department,
Admin Department, Operation Department and Warehouse Department. Under each
department, the functional staffs are operating their tasks in line with the organization
goals. AA Medical Products Limited is appointed with skill employees who are
professional and accountability on their duty and responsibility in each of departments
to meet organizational goal and objective. The organization structure AA Medical
Products Limited is shown in Figure (3.1).

23
 Figure (3.1) Organization Structure of AA Medical Products Limited

Chairman

Chief Executive
Officer (CEO)

Sales Marketing Finance Admin & HR Operation Warehouse

Department Department Department Department Department Department

National Sales Finance Operation Warehouse

Manager Manager
Manager Consultant1 Manager Consultant
)

Upper Lower
Assistant Chief
Myanmar Myanmar Executive Supervisor Manager
Manager Accountant
Team Team

Area Area
Stock Senior Senior
Sales Sales Supervisor Supervisor
Accountant Assistant Assistant
Manager Manager

Invoicing Junior Junior

Supervisor Supervisor Assistant Assistant
Accountant Assistant Assistant

Outstation Credit Warehouse

Sales Rep Sales Rep Receptionist Delivery
Assistant Controller Helper

Outstation Outstation
Sales Sales Cashier Housekeeper Driver Helper
Representative Representative

Cash
Security
Controller

Source: AA Medical Products Limited (July, 2018)

24
 The functions and duties of each department in AA Medical Products Limited
are generally described as following:

3.1.1 Sales Department

Sales Departments is an important department of AA Medical Products
Limited for building the customer relationship with retail and wholesale pharmacy
shop, private and public hospital, client and final consumer because the employees of
this department have to build effective business relationships. The main
responsibilities of this department are to promote pharmaceutical product sales
through effective interaction with health care professionals and organizations, to
increase the awareness and use of the company's pharmaceutical products. In addition,
developing sales strategies to approach potential customers and increasing sales,
organizing group events and conferences for sales promotion, taking sales orders from
customers and maintaining detailed records of all customer contacts are the main tasks
of Sales Department.

3.1.2 Marketing Department

Marketing Department is the most important part of AA Medical Products
Limited because this department can creates growing revenue, increasing market
share and contributing to company growth and profitability and guiding the future
course of a business and defining whether it will be a success or a failure. The main
responsibilities of employees in this department are able to research the market status,
to identify market opportunities and to gain a better understanding of customer needs,
to perform for organizing events, such as exhibitions, seminars, sales conferences or
customer hospitality events and to plan promotion programs on their company
distribution product. In addition, this department uses social media marketing
activities for advertising and communicating with customers.

3.1.3 Finance Department

To manage the financial affair of the organization smoothly, a well-
experienced financial consultant is appointed at the finance department. The
employees of this department are responsible for recording and reporting the cash
flows, both in and out, of a company. In addition, this department is keeping accurate
records for all daily transactions, preparing balance sheets, recording sale and

25
purchase invoices, preparing monthly, quarterly and annual financial reports and
reconciling bank statements.
3.1.4 Admin and Human Resources Department
In AA Medical Products Limited, an administration and human resources
managers was appointed to handle the employee affairs – benefits and to review
employee’s performance and upgrade the employment quality of employees. The
employees of this department need to monitor the operation activities of the staffs and
to assess their functional ability and capacities for their salary incensement, promotion
and reward. This department also needs to manage to be a safe working environment
for all employees and maintaining on company fixed assets.

3.1.5 Operation Department

AA Medical Products Limited’s operation department has to be performed to
build strong business relationship by addressing customer issues and complaints in a
timely manner. The employees of this department have already developed operations
systems by determining product handling and storage requirements for receiving
product, inventory management and shipping for customers and suppliers. And also,
this department has duties to prepare contracts and negotiates pricing with customer
when pharmacy distribution to the customer.

3.1.6 Warehouse Department

The warehouse department’s consultant of AA Medical Products Limited
manages overall warehouse performance and has responsible for the effective and
successful management of labor, productivity, quality control and safety measures as
established and set for the Warehouse Department. The employees of this department
has already developed warehouse systems by determining product handling and
storage requirements for receiving product, equipment utilization, inventory
management and shipping for customers.
The warehouses of AA Medical Products Limited are purpose-built for safety
storage and handling of medical products accordance with WHO standards, and
operated by staffs who are well-trained to run efficient and cost-effective operation.
According to the nature of medicine products, some are perishable and needed to hold
in cold stores throughout the entire logistics cycle to maintain their qualities. Then,

26
AA Medical ensures that all cold chain products are safely delivered to customers
within the acceptable storage temperature range.

3.2 Products Distributed by AA Medical Products Limited

The following table (3.1) shows the products’ brand names and manufacturing
company names.

Table (3.1) Products Distributed by AA Medical Products Limited

No Product Name Company Name
1 Preven C Unilab Co. Ltd
2 Feropac Hanmiamn Co. Ltd
3 Belafcap Zydus Cadila Co. Ltd
4 Aquatabs Roche Co. Ltd
5 BaB Hanmiamn Co. Ltd
6 BETACLOGE Cream Korean Pharma Co. Ltd
7 Daneuron Psi Co. Ltd
8 Hepalucky Unilab Co. Ltd
9 Mosaway Dae Hwa Pharm Co. Ltd
10 Musol Yuyu Pharma Co. Ltd
11 NEOPAC Cream Korean Pharma Co. Ltd
12 NITOZOL Cream Korean Pharma Co. Ltd
13 Ryalvita Roche Diagnostics Co. Ltd
14 SILKRON Cream Korean Pharma Co. Ltd
15 Top-Roll Korean Pharma Co. Ltd
16 Vivir Tab Korean Pharma Co. Ltd
17 VIVIR Cream Korean Pharma Co. Ltd
18 WOOD’S Peppermit Anitussive Kalbe Farma Co. Ltd
19 ACOZOL-G Cream Korean Pharma Co. Ltd
20 Oramin -G Korean Pharma Co. Ltd
21 Oramin -F Korean Pharma Co. Ltd
22 VitaHome Korean Pharma Co. Ltd
23 Fluza Pacific Co. Ltd
24 Daily Vitagin Pacific Co. Ltd

27
 25 Ginkgopan GlaxoSmithKlin Co. Ltd
26 Hepapac Zydus Cadila Co. Ltd
Source: AA Medical Products Limited (July, 2018)
According to the Table (3.1), AA Medical Products Limited is selling many
brands and many types of pharmacy. AA Medical has service continuous assessment
and monitoring of its existing quality systems, checking to ensure compliance to all
regulatory requirements for quality and safety at every stage of the manufacturing
process for customer.
AA Medical Products Limited is operating to distribute international-quality
medical products, comprehensive distribution solutions, and excellent customer
support. All of distribution products are being complied under international standards
of safety and quality, and imported from a network of trusted manufacturers in
Germany, India, Ireland, Indonesia, Japan, Korea, Philippine, United Kingdom,
Vietnam and the United States.

3.3 Marketing Communication Mix of AA Medical Products Limited

In this section, the study on the marketing communication mix activities of
AA Medical Products Limited is presented. Essentially for AA Medical Products
Limited’s marketing communication mix activities are required between the
customers and the business in order to increase the transactions or to maximize the
daily sales revenue. These activities aims to promote its business and products,
considering the dynamics of its target markets. AA Medical can get from the practices
of marketing communication mix by anticipating customer or client needs and
providing customer need to gain their customer satisfaction that lead to become
royalty customer on this organization. The marketing communication mix activities of
AA Medical Products Limited have many advantages for employer by performing
better personal selling, sale promotion, internet marketing and events and
sponsorships marketing for their customer. Therefore, these marketing
communication mix activities (better personal selling, sale promotion, internet
marketing and events and sponsorships marketing) are generally discussed as below.

3.3.1 Personal selling

28
 Personal selling activities of AA Medical Products Limited are operated with
five activities - prospects, approach, presentation, closes and follow-up for the
customer. These personal selling activities are person interaction to sell products and
services so that the organization firstly prepares qualify prospectus and flyer or
pamphlet to provide flexible message and effective sales for its customer. And, this
organization is needed to gather information and decide how to approach that used
customer survey and pharmacy market analyzed by salespeople. In addition, this
organization trains the employees to know detail information on products because
many customers have questions and concerns at this product of the sales process.
Thus, this organization has skilled salespeople, able to represent and promote their
company and products in the marketplace and can give clearly message specifically to
the customer, can demonstrate the product, can explain its operation or usage and
immediate feedback. The employees of AA Medical Products Limited can present to
obtain a purchase commitment from the sale presentation and can select the target
market and concentrate on the customers for minimum wastage time on their selling.
In addition, the organization always follow-ups to resolve any problems faced concern
with the quality and price of the product on their customer doubts and questions and
to ensure the customer’s satisfaction for future sales possibilities. Therefore, AA
Medical Products Limited’s sales and marketing staffs have skills to create long-term
relationship with existing customers and potential customers via personal selling.

3.3.2 Sales Promotion

There are many sales promotion activities at AA Medical Products Limited
included discounts, coupons (or) lucky draw, samplings, loyalty points, gifting and
bonus pack for the customer to obtain sales volume increasing. AA Medical Products
Limited prepares to provide products with discounted price depends on customer
credits repayment terms in which the company gives 5% discount for 3 months credits
purchasing customers, 2% discount for 6 months credit purchasing customer and 10%
discount for cash-down payment customer. And, the organization offers discounted
prices on some items by giving discount cards for the regular customer to attract loyal
customers, new customers to be loyal, and to cover the fluctuation of sale rates.
AA Medical Products Limited has seasonal promotion programs by offering
lucky draws and coupons (car, motorcycle, mobile phone, TV, travel package and

29
etc.) for the regular customers. These sale promotion activities such as lucky draw,
gifts and bonus packs for the customers are shown in Table (3.2).

Table (3.2) Luck Draw and Bonus Scheme of AA Medical Products Limited
Sale Promotion Activities
No Brand Name Promotion Season
Lucky Draw, Gift and Bonus Items
(Within 1 Year)
1 Daily Vitagin For All Products For Luck draw and coupons
2 Feropac April Car, Motor Cycle, Mobile Phone,
3 Fluza July TV, Travel package
4 Hepalucky October For Gift
5 Hepapac Phone Bill, Umbrella, T-shirt,
6 Oramin-F Calendar, Stationary, and other
7 Oramin-G Accessories.
8 Preven C Bonus Pack
9 Ryalvita Buy Two – Get One
10 Top-Roll (Within April)
11 VitaHome
Source: AA Medical Products Limited (July, 2018)

According to Table (3.2), AA Medical Products Limited have seasonally

promotion activities by offering lucky draws and coupons (for their regularly
customer not only for increasing sales but also for advertising purposely.
Furthermore, AA Medical Products Limited offers sampling for introduction the new
products to attract the old and new potential customers.
AA Medical Products Company Limited’s sale promotion scheme - cash
discount and loyalty point for its customers is shown in the following Table (3.3).

Table (3.3) Sale Promotion Scheme of AA Medical Products Limited

Customer Types of
No Cash Discount Loyalty Point
Group Pharmacy

30
 1 Hospitals, Cream, Soft Caps, 10 % Discount for 1 Point for above
Clinics and Liquids above 20 pkg 20 pkg
2 Retail / Cream, Soft Caps, 6 % Discount for 1 Point for above
Wholesale and Liquids above 20 pkg 20 pkg
Source: AA Medical Products Limited (July, 2018)
According to Table (3.3), AA Medical Products Limited performs the sales
promotion scheme with two groups. For hospitals and clinics, 10 % discount is given
because these customers always purchase with cash down. For retail/wholesale
pharmacy shops, AA Medical gives 6 % discount because these customers always
purchase with 3 or 6 months credit payment. As the Loyalty point, all types of
customers can get 1 Points equal with 2,000 Kyats refund. Therefore, AA Medical
Products Limited has performed many kinds of sales promotion activities to increase
customer satisfaction and loyalty intentionally to get the future profit gains.

3.3.3 Internet Marketing

AA Medical Products Limited’s internet marketing activities are included
websites/blogs, Facebook and email to communicate customers digitally and giving
information about its distribution pharmacy products. AA Medical Limited has used
company Website and Facebook so that customers can be seen company history and
product specific news in which the company aimed to inform, advertise and
communicate with current customers and potential customers. This organization has
created the online advertising status and videos with clear and easy understating
massage and Website/Facebook has shown the product available shops’ locations for
the customers. In addition, all product descriptions are written about their ingredients,
sizes, price as followed details with product pictures on AA Medical Limited’s
Website and Facebook pages. The customers of AA Medical can buy, order and
inquire for all of products available because of this organization performs widely
internet marketing activities with user-friendly website and website assurance (or)
information security for their customer. AA Medical mainly uses email for marketing
because it is a direct channel of communication between business and current and
potential customers. This organization always sends all product quotation via email to
customers. And any customers can be inquired the products’ medical usage,
instruction, and ordered, purchased, and made payment via email.

31
3.3.4 Events and Sponsorships Marketing
AA Medical Products Company Limited’s events and sponsorships marketing
activities are included education scholarship sponsorship, sports sponsorship and
events sponsorship for entertainment and festivals to increase its customers’
credibility, improve company’s image, and build prestige.
The following table (3.4) describes briefly about the sponsorship activities of
AA Medical Products Limited.

Table (3.4) Sponsorship Activities of AA Medical Products Limited

Sponsorships
No Location Durations Amount
Activities
1 Education University of Nursing in 4 years 200,000 Ks
Sponsorship Yangon and Mandalay per month
(For 20 students per year)
2 Singing Contest Channel 7 Estimate 6 100,000 Ks
Sponsorship MRTV-4 Months per week
MWD
(As a Main Sponsor)
3 Medical Trade Myanmar Event Parts Hall 2013 to 25,000,000
Shows (As a Co-Sponsor) 2018 Ks per year

4 Sports National Sports Festivals From 2000 30,000,000

Sponsorship (As a Co-Sponsor) to 2018 Ks per year
Source: AA Medical Products Limited (July, 2018)

According to Table (3.4), AA Medical Products Limited provides educational

scholarship for finical difficult students all around Myanmar in every year. In
addition, this organization always supports to sports activities such as Football Cups,
World Championship (Boxing), SEA Games (2013), National Students Sports
Festival, International Swimming Contest, Olympic Festivals, etc. By providing
financial, medical products and presents in these sports events, AA Medical aims to
get dramatic influence on public. AA Medical has also provided as an event
sponsorship at Myanmar Medical Trade Shows, International Export & Import Trade

32
Shows, Seminars of Myanmar Doctor’s Association, Traditional Festivals, and
Celebrities’ Music Shows as the promotional efforts. Moreover, this organization has
provided as a Main Sponsor at Television programs and some traditional festivals
(such as-air balloon festival, water festival and other religion festivals) to promote
their brands, logos and products by providing financial as a prize.
Chapter IV
Analysis on the Effects of Marketing Communication Mix in AA
Medical Products Limited

The responses and answers of demographic information, descriptive statistics,

reliability and correlation of the variables are presented in this chapter. The main
purpose of this chapter is to explore the relationship between marketing
communication mix activities and customer satisfaction and also customer loyalty of
AA Medical Products Limited. To analysis on the relationship between marketing
communication mix, customer satisfaction and customer loyalty of AA Medical
Products Limited, the required data is obtained through survey data. The data are
collected by using structured survey and in-depth questionnaires with customers of
AA Medical Products Limited. The questionnaire were organized by five scales
ranging from one to five; where 1 strongly disagree, 2 disagree, 3 neutral, 4 agree and
5 represents strongly agree. This collected data was analyzed by using SPSS 22 for
the reason of justifying the research objectives.

4.1 Demographic Profile of Respondents

In this study, profile of customers is measured with five items: gender, age,
education level, occupation and years of experience of the respondents. The study
involved 120 respondents. For each question, the most possible answer is provided to
respond and they can choice in relevant answer.

4.1.1 Gender of Respondents

Gender of respondents is classified into two groups such as male and female.
It can be seen in Table (4.1).

33
 Table (4.1) Gender of Respondents
No. Gender Number of Respondents Percentage
1 Male 70 58.33
2 Female 50 41.67
Total 120 100.00
Source: Survey Data (October, 2018)
According to Table (4.1), the percentage of the gender of the respondents is
found male respondents are 57.14 percent while female respondents are 42.85 percent
the survey. Therefore, male respondents are the major distribution of the sample.

4.1.2 Age of Respondents

Age of respondents can be divided into four groups; between 18 and 25 years,
between 26 and 39 years, between 40 and 55 years and 55 above. It can be seen in
Table (4.2).

Table (4.2) Age of Respondents

No. Age (Year) Number of Respondents Percentage
1 18 - 25 9 7.50
2 26 - 39 55 45.83
3 40 - 54 39 32.50
4 55 and above 17 14.17
Total 120 100.00
Source: Survey Data (October, 2018)

According to Table (4.2), 9 respondents (7.5 %) are between 18 and 25 years,

55 respondents (45.83%) are between 26 and 39 years, 39 respondents (32.5%) are
between 40 and 55 years and 17 respondents (14.17%) are 55 years and above. It is
found that there are more respondents who have between 26 and 39 years old.

4.1.3 Education Level of Respondents

Education level of respondents is classified into four groups. There are high
school level, graduate level, master degree and other. That can be seen in Table (4.3).

34
 Table (4.3) Education Level of Respondents

No. Education Level Number of Respondents Percentage

1 Graduated 101 84.17
2 Post Graduated 19 15.83
Total 120 100.00

Source: Survey Data (October, 2018)

According to Table (4.3), 101 respondents are graduated and 19 respondents

are post graduated. As percentage, 84.17 percent of respondents are graduated and
15.83 percent of respondents are post guarded. It can be deducted that most of the
respondents are graduated level.

4.1.4 Occupation of Respondents

Occupation of respondents can be classified into three groups; clinical,
pharmacists and hospitals. It is illustrated in Table (4.4).

Table (4.4) Occupation of Respondents

No. Occupation Number of Respondents Percentage
1 Clinical 38 31.67
2 Pharmacists 71 59.17
3 Hospitals 11 9.16
Total 120 100.00
Source: Survey Data (October, 2018)

As shown in Table (4.4), occupations of respondents are found that 38

respondents describing 31.67 percent are working their own clinical, 71 respondents
describing 59.17 percent are working pharmacists and 11 respondents describing 9.16
percent are working at private hospitals. It can be deducted that most of the
respondents are pharmacists.

4.1.5 Purchase Experience of Respondents

35
 Purchase experience of respondents is classified into five groups: less than 1
year of experiences, between 1 and 5 years of experiences, between 6 and 10 years of
experiences and above 10 years of experiences. It can be seen in Table (4.5).

Table (4.5) Purchase Experience of Respondents

No. Years of Experience Number of Respondents Percentage
1 1 year and 5years 47 39.17
2 6 years and 10 years 66 55.00
3 Above 10 years 7 5.83
Total 120 100.00
Source: Survey Data (October, 2018)
As shown in Table (4.5), service years of respondents in their relative business
is found that 47 respondents describing 39.17 percent are between 1 year and 5 years,
66 respondents describing 55 percent are between 6 years and 10 years and 10
respondents describing 83 percent are above10 years. It can be deducted that most of
the respondents are 6 years and 10 years concern with their working years.

4.2 Reliability Analysis of Variables

To measure the reliability of the instruments, Cronbach’s coefficient alpha
was calculated. This method has been recognized as an effective and widely-used
approach to determine the internal consistency of study instruments. Generally an
alpha value close to 1.0 indicates high internal consistency reliability, an alpha value
less than 0.6 is considered to be poor, values of 0.7 are considered acceptable and
values above 0.8 are deemed to be good (Sekaran, 2003).
In this study, the alpha value for each of the variable is described in following
Table (4.6).

Table (4.6) Reliability of the Variables

No. Variables Items Alpha
1 Personal Selling 7 0.881
2 Sale Promotion 7 0.838
3 Internet Marketing 7 0.747
4 Events and Sponsorships Marketing 7 0.863
5 Customer Satisfaction 8 0.755

36
 6 Customer Loyalty 8 0.727
Overall 6 0.845
Source: Survey Data (October, 2018)

In Table (4.6), the alpha values for all of variable - each of the independent
variables (personal selling, sale promotion, internet marketing an events and
sponsorships marketing) and dependent variable (customer satisfaction and customer
loyalty) are demonstrated a high level of reliability because all of the alpha values of
scale items are 0.70 and above. Therefore, scale items directed toward one dimension.
It can be concluded that scale items of questionnaires are consistent and reliable.
4.3 Analysis on Marketing Communication Mix of AA Medical Products
Limited
This section presents the analysis on marketing communication mix activities
of AA Medical Products Limited. Personal selling, sale promotion, internet marketing
and events and sponsorships marketing that are regarded as the independent variables
for customer satisfaction. The customer satisfaction variable is regarded both as the
independent variable and the dependent variable. The customer loyalty variable is
regarded as the dependent variable according to the conceptual framework of the
study. This study prepared structured questionnaire and asked to the customers of AA
Medical Products Limited – clinics, pharmacists, hospitals. These questions are based
on the five-point Likert Scale. (5 is strongly agreed, 4 is agreed, 3 is neural, 2 is
disagreed and 1 is strongly disagreed). According to Bowling (1997), the mean value
for Five Point Likert Scale items were interpreted as following:
The score among 1.00 - 1.80 means strongly disagree
The score among 1.81 - 2.60 means disagree
The score among 2.61 - 3.40 means neither agree nor disagree
The score among 3.41 - 4.20 means agree
The score among 4.21 - 5.00 means strongly agree

4.3.1 Customer Perception on Personal Selling

Customer perception on personal selling is measured with seven factors. The
mean and standard deviation values of these factors are shown in Table (4.7).

37
 Table (4.7) Customer Perception on Personal Selling
No Particular Mean SD
1 Skillful salesperson at presentation and promotion 3.65 0.682
2 Clear message and quick response 3.65 0.669
3 Good at finding potential buyer 3.64 0.731
4 Efficient skill in selecting target market 3.50 0.733
5 Easy solving any customer’s doubts 3.68 0.724
6 Good at suggestions for customers 3.69 0.696
7 Long-term relationship with customers 3.68 0.733
Overall Mean 3.64
Source: Survey Data (October, 2018)
According to the results Table (4.7), the overall mean value is 3.64 because
the customer acknowledges on personal selling activities of this organization. And the
customer believes these salespeople who can give clear message to the customer,
demonstrate the product, and explain its operation or usage of product and immediate
feedback to their customers.
According to the results, the factor for good at suggestion for customer mean
value is 3.69, the maximum mean value among seven factors of personal selling. This
result means that employees of AA Medical Products Limited can sell professionally
and practically the products with good suggestion. And salesperson of this
organization well knows the nature of product, clearly identify customer needs and
interests, and have enough knowledge and education for doing good personal selling
in this market.
The minimum mean value of personal selling is 3.75. This result shows that
the nature of medical distribution organization is always easy to find target market but
difficult to attract customer to buy products because most of the customers are
professional and experienced. So, salespeople are needed to explain details on their
products and take more time to get the trust of customers.

4.3.2 Customer Perception on Sales Promotion

Customer perception on sales promotion is measured with seven factors.
These are calculated and presented in Table (4.8).

Table (4.8) Customer Perception on Sales Promotion

38
 No Particular Mean SD
1 Discounted prices on some items by giving discount card 3.47 0.829
2 Quantity discounts for large amount purchase 3.79 0.634
3 Bonus package of two products for the price of one 3.63 0.647
4 Seasonal promotions with lucky draw coupons (mobile 3.56 0.754
phone, TV, Vacation Trip and etc.)
5 Free samples to introduce a new pharmacy 3.35 0.763
6 Reward programs with loyalty points and use that points 3.42 0.836
for money refund for next purchase
7 Gift (umbrella, prepaid card, T-shirt and etc.) for customer 3.63 0.647
Overall Mean 3.55
Source: Survey Data (October, 2018)
According to the Table (4.8), the overall mean value is 3.55 because this
organization always provides with various promotion activities which are lucky draw,
samplings, loyalty points, gifting and bonus pack for its customer. The maximum
mean value is 3.79 among seven factors of sale promotion. This result means that this
organization is well known among the customers because of its discount programs.
These discounts are intended to get the customer satisfaction, to retain the customer
loyalty and also to increase sale volumes due to reduce price for huge amount of
purchase.
The minimum mean value of customer perception on the organization is 3.35
at paying free samples to introduce a new pharmacy product for customer because this
organization are rare to launch or distribute new pharmacy products within one year.
Therefore, this organization cannot always pay free samples for its customer.

4.3.3 Customer Perception on Internet Marketing

Customer Perception on internet marketing is measured with seven factors as
shown in Table (4.9).

Table (4.9) Customer Perception on Internet Marketing

No Particular Mean SD
1. Purchasing, ordering and payment via Internet 3.80 0.603
2 All products’ detail information can be seen on Internet 3.63 0.810

39
 3 Products available shops location are seen on Internet 3.63 0.789
4 User-friendly Website, Website assurance/information 3.83 0.585
security for customers
5 Price information can easily be known on Internet 3.42 0.836
6 Easy connection via E-mail, Website, and Facebook to 3.83 0.575
know about medical usage and instruction
7 Online advertising and broadcasting online videos are 3.55 0.720
good and clearly messaged to customer
Overall Mean 3.67
Source: Survey Data (October, 2018)

According to Table (4.9), the overall mean value is 3.67. This result means
that customers recognize AA Medical’s websites/blogs, Facebook and email by
advertising and promotion purposes of products. The maximum mean value is 3.83 in
both factors of internet marketing activities of this organization because the website,
Facebook activities and e-mails of this organization are always well monitored to
communicate with customers. And user-friendly website and information security of
AA Medical Products Limited is most preferable among other internet marketing
activities.
The minimum mean value of customer perception on internet marketing is
3.42. This result means that this organization cannot show exactly all product prices
on the website because product prices are changeable daily as accordance with the
market nature.

4.3.4 Customer Perception on Events and Sponsorship Marketing

Customer Perception on Events and Sponsorship Marketing is measured with
seven items. The mean value and standard deviation for each statement is presented in
Table (4.10).

Table (4.10) Customer Perception on Events and Sponsorship Marketing

40
No Particular Mean SD
1 Sponsors at Traditional Festivals 3.63 0.810
2 Scholarship sponsors in education for students 3.63 0.789
3 Event sponsorship in Singing Contests, Music Shows, etc 3.83 0.585
4 Event sponsor for Television Shows, Radio Programs –
3.67 0.653
such as Theatre, Movies, Game Shows and others
5 Sport sponsorship concern with local sports programs,
3.68 0.624
running contest, walking events
6 Medical Trade Shows, Export/Import Trade Shows and
3.87 0.579
Literature Events
7 Sports sponsor for Football Cups, Boxing Champion
Cups, SEA Games Festivals, other National Game 3.83 0.575
Events and Olympic Day Festivals
Overall Mean 3.73

Source: Survey Data (October, 2018)

According to the results of Table (4.10), the overall mean value is 3.73 which
means that the customers agree on event and sponsorships marketing of AA Medical
Products Limited. This result also shows that customers recognize on scholarship
programs, sport and events sponsorship activities of AA Medical Products Limited.
The maximum mean value is 3.87 among seven factors of event and
sponsorship marketing. This result describes that this organization supports finance
and presents at Medical Trade Shows, Export/Import Trade Shows and Literature
seminars which can attract the awareness of customers on their brand with many
benefits. Because these trade shows can lead to get more social media intention, can
search more potential buyers, and can expand more positive word-of-mouth.
The minimum mean value of customer perception on events and sponsorship
is 3.63 in two factors. This means that this organization has fewer involvement in
traditional festivals and the scholarship program of this organization has limitation for
students. Because this organization rarely promotes its brands, logos and products at
traditional festival around Myanmar. And University of Nursing students can only get
the scholarship from this organization. Therefore, a few customers can be aware about
these sponsorship activities of AA Medical Products Limited.

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4.3.5 Summary of Customer Perception on Marketing Communication Mix of
AA Medical Products Limited
Customer perception on marketing communication mix of AA Medical
Products Limited is measured with four factors in this study. They are personal
selling, sale promotion, internet marketing and events and sponsorship marketing. The
mean and standard deviation values for each factor are presented in Table (4.11).

Table (4.11) Summary of Customer Perception on Marketing Communication

Mix

No Particular Mean Value

1 Personal Selling 3.64
2 Sale Promotion 3.55
3 Internet Marketing 3.67
4 Events and Sponsorship Marketing 3.73

Source: Survey Data (October, 2018)

According to the Table (4.11), events and sponsorship marketing factor has
the maximum mean value 3.73 among four variables of marketing communication
mix activities factors of this organization. This means that AA Medical Products
Limited is well known for its scholarship sponsorship, sport sponsorship and events
sponsorship for society and these sponsorship activities can be increased its customer
credibility, improved company’s image, and built prestige for its customers.
On the other hand, sales promotion has the minimum mean value 3.55 among
four variables of marketing communication mix of this organization. This means that
most of customers are clearly unaware AA Medical Products Limited for its sales
promotion than other marketing communication mix activities.

4.3.6 Analysis of Customer Perception on Customer Satisfaction

In this section was presented the customer perception on customer satisfaction
concern with marketing communication mix activities of AA Medical Products
Limited are measured with eight items. The mean and standard deviation values are
presented in Table (4.12).

Table (4.12) Customer Perception on Customer Satisfaction

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 No Particular Mean SD
1 Satisfy on salesperson’s presentation and demonstration 3.87 0.593
2 Satisfy on salesperson’s knowledge and skills 3.57 0.658
3 Satisfy on discounts, bonus plan, and credit payment 3.83 0.706
4 Satisfy on free samples, lucky draws and gifts 3.48 0.722
5 Satisfy on the buying of products from Internet with less
3.68 0.676
cost and time
6 Satisfy on all information of products shown in website
3.67 0.653
and Facebook
7 Satisfy events sponsorship programs at entertainments,
3.62 0.735
trade shows and festivals.
8 Satisfy the scholarship sponsors for financial difficult
3.32 0.767
university students
Overall Mean 3.63
Source: Survey Data (October, 2018)
According to the Table (4.12), the customer perception on satisfaction of the
overall mean values is 3.63. This means that customer satisfied on personal selling,
sale promotion, internet marketing and events and sponsorship marketing of AA
Medical Products Limited.
The maximum mean score level of customer perception on their satisfaction is
that sale person of this organization because mean value is 3.87. It means that this
organization has skillful employees to deal professionally and ethically with good
presentation, effective selling and complete advertising to satisfy customers.
On the other hand, the minimum mean value of customer satisfaction is 3.32
on the scholarship sponsors of this organization. This result shows that most of
customers prefer and satisfy to provide more promotion activities and to receive their
financial benefits than the organization’s sponsorship activities.

4.3.7 Analysis of Customer Perception on Customer Loyalty

In this section, the customer perception on their loyalty factors related with
marketing communication mix activities of AA Medical Products Limited are
measured with eight items. The mean and standard deviation values are presented in
Table (4.13).

43
 Table (4.13) Customer Perception on Customer Loyalty
No Particular Mean SD
1 Always buy because of good communication 3.88 0.616
2 Always say good about AA Medical’s products
3.60 0.715
because of salesperson’s good presentation
3 Always buy because of better discounts and samples 3.67 0.781
4 Always buy because of more special coupons, lucky
3.66 0.761
draws and loyalty points for regular customers
5 Always prefer its online communication 3.87 0.593
6 Always buy because of easier purchase from online 3.57 0.867
7 Always proudly buy because it gives scholarship 3.57 0.807
8 Always buy because of its sponsorship in events and
3.57 0.719
festivals are attractive
Overall Mean 3.67
Source: Survey Data (October, 2018)
According to the Table (4.13), the overall mean value of the customer
perception on customer loyalty is 3.67. This means that customer always firstly buy
the pharmacy product from this organization if there are products with same price and
quality in other company because personal selling, sale promotion, internet marketing
and events and sponsorship marketing activities of AA Medical Products are better
provided for the customers than other companies to become next time for repurchase
and become a loyal customer.
The maximum mean value is 3.88 in customer perception on loyalty. The
customers always purchase the products of AA Medical because the products of this
organization are better quality and reliable than other company. It means that the
customer of this organization always consider products’ quality and reliability than
price.
On the other hand, the minimum mean value is 3.57 in score level on customer
loyalty. The lowest mean values occur in three factors which are online purchase
activity and events and sponsorship activities. These results show that customers are
lower influenced on internet marketing and event and sponsorship marketing to
motivate their purchase decision and to become loyal customer than other factors.

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4.4 Analysis on the Relationship between Marketing Communication Mix
and Customer Satisfaction
After the reliability test and mean and standard deviation the correlation of the
marketing communication mix activities; personal selling, sale promotion, internet
marketing and events and sponsorships marketing were tested to show their
correlation with customer satisfaction. The results of the correlations of the measured
variables are shown in Table (4.14).
The correlation analysis is the statistical tool used to study the closeness of the
relationship between two or more variables. Correlation coefficient range is the
between +1 and -1 that +1 indicates the strongest positive correlation possible, and -1
indicates the strongest negative correlation possible. If the value of positive, it means
that one variable gets larger, other will also be larger. If value is negative, it means
that one variable gets larger, the other gets smaller.

Table (4.14) Correlation of Marketing Communication Mix and Customer

Satisfaction
No Description Person Correlation Coefficient P-value
1 Personal Selling 0.831** 0.000
2 Sale Promotion 0.432** 0.000
3 Internet Marketing 0.509** 0.000
4 Events and Sponsorship 0.546** 0.000
Source: Survey Data (October, 2018)
** Correlation is significant at the 0.01 level (2-tailed).
Dependent Variable: Customer Satisfaction

According to the results, the marketing communication mix factors; personal

selling, sale promotion, internet marketing and events and sponsorship have positive
correlation with the customer satisfaction factor at 0.01 level (2-tailed). The
correlation coefficient between personal selling and customer satisfaction is 0.625 at
the 0.01 level (2-tailed). This result shows that personal selling has strong positive
correlation to influence on customer satisfaction. The moderate correlation coefficient

45
between sale promotion and customer satisfaction is 0.432 at the 0.01 level (2-tailed).
Then, the correlation coefficient between internet marketing and customer satisfaction
has moderate positive relationship with it value is 0.509 at the 0.01 level. And also,
events and sponsorship marketing has the moderate positive correlation coefficient
with customer satisfaction is 0.546 at the 0.01 level.
According to the correlation analysis, the results show that the marketing
communication activities are widely operated by AA Medical Products Limited.
Therefore, the marketing communication activities are supported to gain the higher
level of the customer satisfaction for AA Medical Products Limited.

4.5 Analysis on the Relationship between Customer Satisfaction and

Customer Loyalty
In this section, the correlations of independent variables (customer
satisfaction) are tested to show their correlation with dependent variable (customer
loyalty). The results of the correlations of the measured variables are shown in Table
(4.15).

Table (4.15) Correlation of Customer Satisfaction and Customer Loyalty

No Description Person Correlation Coefficient P-value
1 Customer Satisfaction 0.577** 0.000
Source: Survey Data (October, 2018)
Dependent Variable: Customer Loyalty
** Correlation is significant at the 0.01 level (2-tailed)

According to Table (4.15), customer satisfaction factor has the positive

correlation with customer loyalty at 0.01 levels (2-tailed). The correlation coefficient
between customer satisfaction and customer loyalty is 0.577 at the 0.01 level (2-
tailed). This results show that AA Medical Products Limited has the strong customer
satisfaction factor and also this customer satisfaction factors can influence on
customer to become loyalty customer. The above value of positive correlations results
show that the customer loyalty is related with customer satisfaction of AA Medical
Products Limited. Therefore, the customer satisfaction factors are supported to gain
the customer loyalty for AA Medical Products Limited.

46
4.6 Analysis on the Effects of Marketing Communication Mix on Customer
Satisfaction
In multiple regression analysis, the model for simple linear regression is
extended to account for the relationship between the dependent variable and
independent variables. It is used to predict the value of a variable based on the value
of two or more other variables. In the multiple regression models, the dependent
variable is customer satisfaction while the independent variables are marketing
communication mix – personal selling, sale promotion, internet marketing and events
and sponsorship marketing in this study. The results of multiple regression analysis
are shown in Table (4.16).

Table (4.16) Multiple Regression Analysis on Customer Satisfaction

Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 0.091 0.158  
Personal Selling 0.558 0.031 0.723 18.287 0.000
Sales Promotion 0.158 0.038 0.198 4.148 0.000
Internet Marketing 0.091 0.074 0.098 1.238 0.218
Events and
Sponsorship 0.162 0.060 0.191 2.706 0.008
Marketing
R Square 0.840
Adjusted R2 0.834
Source: Survey Data (October, 2018)
P < 0.005
Dependent Variable: Customer Satisfaction

The Regression Model for the study as following;

47
Y= β0 + β1X1 + β2X2 + β3X3 + β4X4
The Estimated model for the Study:
Ŷ= b0 + b1 X1 + b2 X2 + b3 X3+ b4 X4

Where,
Ŷ = Customer Satisfaction
b0 = Constant (intersection)
b1 = Unstandardized Coefficients
X1 = Personal Selling
X2 = Sale Promotion
X3 = Internet Marketing
X4 = Events and Sponsorship Marketing

Customer Satisfaction = 0.091 + 0.558 Personal Selling+ 0.158 Sale Promotion +

0.162 Events and Sponsorship
According to the result, if the organization supports the marketing
communication activities, the amount of customer satisfaction is 0.091. One
additional unit of personal selling increases 0.558 in customer satisfaction because of
personal selling factor is essential factor to influence for customer satisfaction. One
additional unit increases in sale promotion will increase customer satisfaction by
0.158 units and vice versa because of sale promotion is essential factor to influence
for customer satisfaction. One additional unit increases in events and sponsorships
marketing will increase customer satisfaction by 0.162 units and vice versa because of
events and sponsorship marketing is an also essential factor to influence for employee
satisfaction. Therefore, personal selling, sale promotion and events and sponsorship
marketing factors are considered as the most important significant factor for this
organization to satisfy their customer. But, internet marketing factor does not support
the significant influence on customer satisfaction.
The result of multiple regression analysis provides that personal selling has
significant and positive impact on customer satisfaction with (b = 0.558, t = 18.287, p
< 0.05). And, the regression analysis results show that sale promotion and events and
sponsorship marketing are significantly related with customer satisfaction (b = 0.158,
t = 4.148, p < 0.05) and (b = 0.162, t = .060, p < 0.005) but internet marketing factor
does not support the significant relationship on customer satisfaction. Therefore,

48
personal selling, sale promotion and events and sponsorship marketing are considered
as the most important significant factor in this study.
The customers of AA Medical Products Limited are mostly satisfied at
personal selling, sale promotion and events and sponsorship marketing than internet
marketing factor. According to the above regression results, personal selling, sale
promotion and events and sponsorship factor in the marketing communication mix
activities factors to improve customer satisfaction at 0.05 significant levels but
internet marketing has no significant impact on customer satisfaction.

4.7 Analysis on the Effects of Customer Satisfaction on Customer Loyalty

In this section presents, the linear regression analysis was conducted to test the
relation between customer satisfaction and customer loyalty. The results are showed
in Table (4.17).

Table (4.17) Linear Regression Analysis on Customer Loyalty

Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 1.512 0.283  
Customer
0.595 0.078 0.577 7.674 0.000
Satisfaction
R Square 0.333
Adjusted R2 0.327
Source: Survey Data (October, 2018)
P<0.01
Dependent Variable: Customer Loyalty

The study estimates the following model:

Ŷ = a + ƅ1X1
Where,
Ŷ = Customer Loyalty
a = Constant (intersection)

49
 bi = Unstandardized Coefficients
X1 = Customer Satisfaction
Customer Satisfaction = 1.845 + 0.477 Customer Loyalty

Linear regression analysis is conducted with customer loyalty as the dependent

variable and customer satisfaction as the independent variable. The linear regression
result of customer satisfaction on customer loyalty is shown in Table (4.19). The
results of linear regression analysis provide that customer satisfaction has positive and
significant relationship with customer loyalty (b = 0.595, t = 7.674, p <0.05).
Therefore, customer satisfaction is essential and important to consider for
improvement of customer loyalty in this organization.
The final result of regression analysis is described in the following Figure
(4.1).

Figure (4.1) Conceptual Framework with Findings

Marketing Communication Mix

b = 0.558, t = 18.287, p< 0.05
Personal Selling b = 0.158, t = 4.148, p< 0.05
b = 0. 091, t = 1.238, p > 0.05 Customer
Sale Promotion b = 0.162, t = 0.060, p< 0.05 Satisfaction

Internet Marketing b = 0.595, t= 7.674, p<0.05

Events and Sponsorship

Marketing

Customer Loyalty

Significant
Not Significant

50
Source: Own Compilation

Figure (4.1) showed the final results of regression analysis of this study.
According to this result, three marketing communication mix activities (personal
selling, sale promotion, internet marketing and events and sponsorship) have the
significant relationship with customer satisfaction. This result indicates that customers
are more satisfied by performing personal selling, sale promotion and events and
sponsorship marketing because most of the customers favor to satisfy their needs
which are better quality, reliability, detail presentation, quick problem solving of sale
person from this organization. And, most of customers satisfy on discounts, coupons
(or) lucky draw, samplings, loyalty points, gifting and bonus pack provided by this
organization. Moreover, customers recognize on scholarship, sport sponsorship and
events sponsorship of this organization because this sponsorship program lead to
customer credibility and customer satisfaction about the marketing communication of
this organization.
Additional, this organization also focuses on internet marketing activities by
providing effective ways to improve their customer satisfaction. According to the
results, better providing marketing communication mix leads to get improvement of
customer satisfaction.
The result of this study reveals that customer satisfaction has the significant
relationship with customer loyalty. It is clearly shown that this organization
intentionally considers to get the customer satisfaction because this result can indicate
to lead more customer loyalty from more customer satisfaction. According to this
result, the customer loyalty is created by customer satisfaction. AA Medical Products
Limited establishes good marketing communication mix for its customers which leads
to improve customer satisfaction and increase customer loyalty.
Internet marketing has no significant impact on customer satisfaction. This
result shows that most of the customers do not consider the internet marketing of this
organization is to be satisfied because of poor technical support, late respond,
incomplete information, weak reliability, and bad internet connection. According to
the status of internet security and cyber law status in Myanmar, customers are not
reliable and trust on internet marketing absolutely. Therefore, internet marketing of
AA Medical Products Limited is difficult to influence on the customer satisfaction.

51
 Chapter V
Conclusion

This chapter is the conclusion which is discussed based on the results of the
statistical analysis. It consists of findings and discussions, suggestions and
recommendations, and limitations and needs for future research. This study analyzed
the effects of the marketing communication mix in AA Medical Products Limited.

5.1 Findings and Discussions

The objectives of this study are to identify the marketing communication mix
of AA Medical Products Limited, to examine the effects of marketing communication
mix on customer satisfaction and then to observe the effects of customer satisfaction
on customer loyalty.
As a pharmacy distribution company, AA Medical Products Limited broadly
operated the marketing communication activities to its customers for the purpose of
increasing customer’s satisfaction and maintaining loyal customers in long term.
Among the marketing communication mix activities, AA Medical mainly performed
personal selling, sales promotion, internet marketing, events and sponsorship
marketing in the market. For the personal selling, AA Medical hired and trained

52
skillful and professional employees to communicate customers in effective way.
Coupons, discount cards, credit payment, gifts, free samples, lucky draws, loyal
points, bonus package, and trips were made as the sales promotion by AA Medical
Products Limited. Internet marketing was becoming a popular promotion mix in
Myanmar therefore AA Medical Products Limited created its website, Facebook page,
emails, and other online social media advertising videos, posts, blogs to satisfy its
customers. AA Medical Products Limited’s sponsorship activities were especially
intend to national sports contests, entertainment events, traditional festivals and
educational supports.
According to the survey data, male respondents are more than female
respondent in gender group. The major age group of respondents is between 26 and
39 years. And the most of respondents are graduated. In this survey, the occupations
of respondents’ are mostly clinical. According to purchase experience of respondents,
the majority of respondents are between 6 and 10 year experience in pharmacy
industry.
According to the mean values analysis of marketing communication mix,
events and sponsorship marketing has the maximum mean value. It can be concluded
that AA Medical Products Limited can successfully support events and sponsorship
activities of the marketing communication activities. The events and sponsorship
marketing; education scholarship, event sponsorship and sport sponsorship can
increase customer credibility, improve company image and build prestige which can
lead to customer satisfaction.
In addition, sales promotion has the minimum mean value. It can be
concluded that AA Medical Products Limited’s sales promotion activities are not
attractive to get the customer awareness and recognition because professional doctors
and pharmacists are not care only on financial benefits to purchase the pharmacy.
Therefore, sales promotion of pharmaceutical companies are used mostly in a short
period to increase sales volume for retail/wholesale market.
According to the results of reliability test, all variables are reliable. The
correlation results shows that there is a positive relationship between marketing
communication mix and customer satisfaction and also positive relationship between
customer satisfaction and customer loyalty. Among the marketing communication
mix, personal selling has the strongest positive relationship with customer
satisfaction. This result shows that personal selling has many factors to influence on

53
customer satisfaction increased. The other marketing communication mix; sale
promotion, internet marketing and events and sponsorship marketing have moderate
positive correlation with customer satisfaction. In addition, customer satisfaction
factor has moderate positive relationship with customer loyalty. These results show
that more marketing communication are needed to provide by AA Medical Products
Limited to get more customer satisfaction. Then, customer satisfaction will gain the
numbers of the loyal customer for AA Medical Products Limited will also increase.
In addition, multiple regression analysis was used to test the effects of
marketing communication mix on customer satisfaction of AA Medical Products
Limited. The results show that personal selling, sale promotion and events and sport
sponsorship have significant effects on customer satisfaction. It is concluded that the
personal selling, sale promotion and events and sport sponsorship marketing of AA
Medical Products Limited are essential for achievement of customer satisfaction. This
means that marketing communication mix of this organization are effective and
satisfactory for its customers.
On the other hand, internet marketing is not significant factor to influence on
customer satisfaction. This means that most of the customers do not consider the
internet marketing of this organization is to be satisfied because of poor technical
support, late respond, incomplete information, weak reliability, and bad internet
connection. Then, customers always consider to support their needs with quick
feedback, face-to-face interaction, negotiation by oral presentation, and practical
demonstration about the products. Insufficient technicians for IT services of this
organization are difficult to support customers for absolute digital marketing platform.
Linear regression analysis results support the positive and significant
relationship between customer satisfaction and customer loyalty. By creating strong
customer satisfaction through the marketing communication mix, AA Medical
Products Limited gains the more customer loyalty. Thus, this result indicates that the
practices of marketing communication mix are significantly influent for AA Medical
Products Limited to uplift the customer satisfaction and customer loyalty which can
shape the future achievement in the Pharmacy Market in Myanmar.

5.2 Suggestions and Recommendations

The suggestions and recommendations of this study are aimed to advantages
of AA Medical Products Limited. This study helps the customers of AA Medical

54
Products Limited to realize whether the four marketing communication mix can effect
on customer satisfaction and also customer satisfaction can effect on customer loyalty.
This finding implies that gaining customer satisfaction and customer loyalty
depends on how well offer marketing communication mix by the organization and
which factors effect on customer satisfaction and encourage loyalty. It is suggested
that marketing communication mix plays a vital role to create customer satisfaction
and also the customer satisfaction is important to customer loyalty.
According to the mean value of marketing communication mix, it shows that
events and sponsorship marketing is the most satisfied for customer. Therefore, the
organization needs to provide and maintain its sponsorship activities to improve
customer satisfaction which can increase their loyalty.
As the result of multiple regression analysis, marketing communication mix of
AA Medical Limited (personal selling, sale promotion and events and sport
sponsorship) shows the significant positive relationship with customer satisfaction.
Among them, personal selling is the strongest factor to build the customer
satisfaction. Thus, AA Medical Products Limited should more focus on personal
selling, sale promotion and events and sponsorship marketing which are essentially
required marketing communication mix to effect on customer satisfaction and then
customer satisfaction leads to customer loyalty as a consequences.
AA Medical Products Limited should more focus on internet marketing
because it is not significantly related with customer satisfaction according to the result
of multiple regression analysis. Therefore, AA Medical Products Limited should more
create online social media advertising at famous celebrity web page, creating
attractive advertising with a few minute videos or massage to get more recognition
and review from customers. In addition, this organization more supported online
marketing with right time delivery, lower delivery charges, right price and product for
all nationwide customers. And also, this organization should be more manage on
their internet marketing to be safe and secured website, right information and up to
date inform concern with distribution products. Therefore, AA Medical Products
Limited should more technical, financial and manpower support in creating internet
marketing to gain more customer satisfaction in the future.
Furthermore, the result of linear regression analysis reveals that the positive
and significant relationship between customer satisfaction and customer loyalty. Thus,
the effective customer satisfaction factors should be provided to boost and maintain

55
customer loyalty. AA Medical Products Limited should provide customer care action,
respond customer request and problem, well build relationship with customer, provide
better quality and reliability products, and create good promotion plans for customer.
Therefore, AA Medical Limited should be evaluated and measured on the customer
concern with satisfaction of marketing communication factors.
Finally, AA Medical Limited should more considers customer satisfaction and
customer loyalty factors that are critical for long-term health and success of business.
Moreover, AA Medical Products Limited should more provides personal selling, sales
promotion, events and sponsorship marketing for increasing customer reliability and
credibility which lead to improve sales volume, satisfaction and loyalty. Thus, the
better manage on marketing communication mix activities of the organization can be
higher customer satisfaction and increased customer loyalty.

5.3 Limitations and Needs for Further Research

This study is mainly analyzed on the relationship between marketing
communication mix activities, customer satisfaction and customer loyalty in AA
Medical Products Limited at Yangon according to the available data. The data are
collected from customers of AA Medical Products Limited totally 120 customers
using convenience sampling methods. These studies focus AA Medical Products
Limited’s customers only in Yangon. There are some limitation of time, cost and data
in this study.
Further research should emphasize the limitations of this study to focus
additional factors that are not considered in this study to create the effects of
marketing communication mix activities, customer satisfaction and customer loyalty.
In further studies, alternative marketing communication mix activities, customer
buying decision, consumer awareness, brand loyalty theories should be applied. In
additional, the further research should be studied the effects of marketing
communication mix activities, customer satisfaction and customer loyalty in other
industries.

56