Analysis of the Effect of Distribution Costs and Promotional Costs on Sales Volume At PT. Prosperous In Kediri

Abstract

There are two kinds of distribution channels implemented by the company, namely: Producers – Agents – Retailers – Consumers. Meanwhile, there are three kinds of sales promotions carried out by the company, namely: Product guarantees by the company to consumers who buy goods in large quantities accompanied by delivery of goods. Sales discount costs by companies to consumers are 10% due to, among others, large purchases, subscriptions and purchases. on holidays. The company provides free product samples when the product enters a new consumer or new market. The results of the correlation analysis show that the relationship between distribution channel costs and sales is 0.861418, the relationship between sales promotion costs and sales is 0.807897. The results of the regression analysis show that the effect of distribution channel costs on sales is Y = 64.101.401 + 17.87523 (X1 ) and the effect of sales promotion costs on sales is Y = 18,462,480 + 23,91371 (X2). In carrying out distribution channel activities, companies must really see what stage they are at and what policies are appropriate for effective distribution channel implementation. In the implementation of sales promotion activities, companies must be able to choose which media are effective to use. In order to increase its sales volume, the company is expected to be willing to provide a special budget for the implementation of distribution channels and sales promotion.