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THE ROLE OF ADVERTISING
ON THE PERFORMANCE OF SALES OF BEVERAGES IN NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 Background of
the Study
Advertising has become a part of our everyday life. However
we are seeing many advertisements in TV, newspaper, magazine, radio, Internet
etc. and we are affected by those advertisements consciously or unconsciously.
Advertising is fascinating and provocative. Advertising creates customer
awareness of the product and builds positive psychological associations that
can enhance the buyer satisfaction (Wanoff, 1997). Consumer’s interest is
provoked and sustained in the product. The purpose of advertising is to make
potential buyers respond more favourably to the firm’s offering. Advertising
provides information to customers creates and modifies their desires and
provides reasons for preferring a particular product. Captivating and
persuasive advertisements create wants through passive compulsion, which makes
the consumers to buy the product. Advertising creates demand, and thereby,
accelerates the growth in the gross domestic product. It also helps society by
improving competition, lowering prices, encouraging more product choices,
supporting the media and providing information. Advertising seems to go beyond
merely selling products or ideas and can shape social trends and attitudes in
powerful ways. However, advertising has been accused of harming society on the
ground that it creates an unnecessary hype for the products and also manifests
wants for superfluous products and services (Ammani, 2008)
The role of advertising in the sales of a Beverage Company in
Nigeria cannot be underestimated, therefore, advertising is defined “as a tool
which marketers use to communicate message to consumer, the general public and
special public such as voters, and to the carriers of the messages like
Televisions, Newspapers and magazines known as the media,. Unlike personal selling some sales promotion
and public relations techniques advertising are in impersonal means of
communication. It is an impersonal
promotion to groups and paid for by an identified sponsor.
Advertising has grown in recent times due to relative
increase in productivity and consequent changes in the uncontrollable marketing
environment where corresponding changes in technology, socio-cultural pattern,
economic venture and legal advancement also take place. It is not enough to produce and simply
anticipate that consumers would become aware of the particular product,
especially in a developing country like Nigeria. The producer has to engage in promotional
activities. Robin Peterson asserts that
advertising has played vital roles, which includes making consumers to be aware
of existence of new products in the market, services or idea and the continued existence
of old product that are already in the market.
It will not be easy for the members of the public to be aware of these
without advertising. It also informs and educates the people on how to make use
of that particular product or service
Advertising also informs people where to obtain goods and
services
It also improves the quality of goods and services. Lastly,
advertising makes consumers increase the volume of their purchase.
In essence, advertising is among the various devices that
designed to pull or push products through the market. And the resulted effect of the use of
advertising is an increase in the sales volume as compared to the past records
in which advertising were not used.
Thus, advertising can be seen as a form of promotion/communication mix
which greatly enhances the sales of a product.
1.2 Statement of
General Problem
Most organizations are facing problem with selecting
advertising as a medium to reach the consumer successfully. Selecting the right
media to target the right customer is an essential step in advertising.
Advertising plays a vital role in creating awareness, but many organizations
lack understand the demographic, psychographic, cultural, technical, economic
and political factors for choosing the right media.
Selecting the right offer at right time (for example
seasonable offer) is an important task to reach the consumer. So this study is
helpful to choose the right media and offer to attract the toothpaste buyers.
The following are some of the problems most organization face
in advertising their product.
1. High
Cost of the Adverts,
2. Lack
of understanding of the adverts by the consumers and
3.
Inability to pass the real adverts message to the target audience.
1.3 Objectives of the study
The objectives of the study are:
(i) To
examine the impact of advertising on the performance of sales of Beverages in
an organization.
(ii) To
also find out the extent to which advertising can help to differentiate
products of similar type in the market.
(iii) To find
out whether advertising brings inputs purchases.
1.4 Research
Questions
1. What
is the impact of advertising on the performance of sales of Beverages in an
organization?
2. What
is the extent to which advertising can help to differentiate products of
similar type in the market?
3. Does advertising bring inputs purchases?
1.5 Significance of
the study
The significance of this study is to know the roles of
advertising on the performance sales of Beverages in an organization.
The findings of this study will enhance knowledge and general
understanding of Beverage Company’s problem. It is hope that it will also serve
as useful secondary data source for other student of the department who might
research on related area in the future. The essence of the research is embedded
in the fact that a sound and effective advertising is longer optional but a
necessary perquisite for the long-term survival of a Beverage Company.
To the employers and employees of the various soft drinks
industry, some of the suggestion made in this write up will be of immense
benefit to them in terms of strategies development and increase in sales volume
and profitability through the various strategies that is suggested.
The significance of this study is to contribute immensely to
the long-term survival of a Beverage Company in our society. This study will
also allow old customer to have more interest and to appreciate the benefit
derived from that particular product.
1.6 Research
Hypothesis:
Ho: Advertising has
no significant impact on the performance of Sales of Beverage in Nigerian
Bottling Company, Kaduna.
Hi: Advertising has
significant impact on the performance of sales of Beverage in Nigerian Bottling
Company, Kaduna
1.7 Scope of the
study
This study is limited to only Nigerian Bottling Company. The
study will also cover the role of advertising, the strength of advertising, the
ethical argument on advertising. The category of staff to be concerned is
management and senior staff of the reference organization. The study will also
cover the period of 5 years from 2006 – 2011
1.8 Limitation of
the Study
The limitation may however include:
(i)
Financial constraint
(ii)
Lack of cooperation from respondents
(iii) Time
factor
In the process of undertaking this research work, the cost
involved in transporting, gathering data for processing information, and the
production of material is needed cannot be overemphasized.
Inadequate time is another factor owing to the fact that
officers of the company have little time to give me attention while others pay
no attention at all. There is also little time in gathering of data for this
project work.
The problem of secrecy on the part of organizations where
they hide out some fact which they believe are sensitive to there operation and
because of the fear they may have against competitors is also a constraint.
1.8 Definition of
Terms
1
Promotion: - Is all that which is associated with the stimulation,
inducing and persuading individuals or group of people towards a particular
act, ideas, information, an object or product.
2
Advertising: - this is any paid form of non-personal presentation of
information, ideas, goods and services by an identified sponsor.
3
Above-The-Line-Media:- it is advertising using conventional media such
as radio, television, newspapers, cinemas etc.
4
Below-The-Line-Media- advertising using other means other than the
conventional methods. E.g free gifts and material.
5 Appropriation:- this is the money
budgeted for advertising campaign.
6
Advertising Media:- this is used to refer to the channels used in
conveying the advertising message.
Advertisement:- this is used to refer to the message being
packaged and sent across to the customers or prospective customers
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