IMPACT OF ADVERTISEMENT ON THE SALES OF AN ORGANIZATION’S PRODUCT AND SERVICES (A CASE STUDY OF NIGERIA BOTTLING COMPANY (NBC) ADO EKITI, EKITI STATE DEPOT)
The impact of advertising on the sales of an organization’s products and services cannot be overemphasized; having noticed the incessant problems faced by Nigeria Bottling Company (NBC) Ado-Ekiti. In the recent times including and introducing its product to the market or the targeted audience such problems has been figured out to be insufficient, inadequate and poor advertisement techniques about a product in the market, therefore due to the survey and research work carried out at the regular interview, it was observed that there is no budget for advertisement which has severally coursed or create a vacuum between the Nigeria Bottling Company and the market. Such vacuums has been traced to be low patronage, low sales turnover and a rate of turnover which has affected the overall income of the company. It’s therefore recommended that the Nigeria Bottling Company has it may be show complement its advertising with other promotional tools to affect better sales of the product and services. On this note the advertising on the sales of an organizations products and services should be carried out at a regular time to ensure customers satisfaction, good sales note and to arouse customers interest towards purchasing the product. The objective is to determine which of the identified advertising strategy is most effective of all the possible application. Finally, base on the result of the researcher study, one rightly say advertising has a positive impact for continuous patronage, attention should be paid to product modification such as packaging, branding sizes, color etc. in order to make the product attractive and appealing to customers.
TABLE OF CONTENT
Title Page i
Table of Contents vi
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of the Study 3
1.4 Significance of the Study 4
1.5 Research Questions 4
1.7Limitation of the Study 6
1.8 Definition of Term 6
2.1 Advertising 8
2.2 Basic Concept of Advertising 11
2.3 The Nature and Importance of Advertising 12
2.4 Types of Advertisement 13
2.5 Objectives of Advertising 15
2.6 Measuring the Effectiveness of Advertising 15
2.7 Advertising Media 16
2.8 Advantages and Disadvantages of Advertising 17
2.8.1 Advantages of Advertising 17
2.2.8 Disadvantages of Advertising 18
2.9 A Review of Nigerian Bottling Company Plc 19
3.1 Research Design 22
3.2 Population and Sampling Selection 23
3.3 Source of Data Collection 23
3.3.1 Primary Sources of Data 23
3.3.2 Secondary Sources of Data 24
3.4 Method of Gathering Data 24
3.5 Methods of Data Analysis 25
3.6 Procedure for Collection of Data 25
3.7 Problems of Data Collection 26
4.0 Presentation of Data, Analysis and Interpretation of Data 27
4.1 Presentation and Analysis of Data 27
4.2 Questionnaire Analysis 27
4.3 Interpretation of Data 38
5.0 findings Recommendation and Conclusion 40
5.1 Summary of Findings 40
5.2 Implication of the Study 41
5.3 Recommendation 42
5.4 Conclusion 43
1.1 BACKGROUND OF THE STUDY
Advertising is an essential activities used by most organizations in their desire to increase sales and overall profit of the company. The developments of a product as well as its pricing and distribution are not only important factors that contribute to how a product sales, other factor that contribute to its sales include adequate advertising and sales promotion. Advertising is a communication process that informs the consumers about the product, for seller to have improved sales, buyer have to be informed about the product, persuading them to buy the product.
The aims of advertising as a sales strategy is to bring existing and potential customers from different environment or relatively to know the awareness of the company product to a state of high awareness vis-à-vis desirability for the product. The choice of advertising objectives should be based on analysis of the current sales situation. This is in order to ascertain either to undertake the info in meeting advertising, persuasive advertising, comparism advertising or reminder advertising.
1.2 STATEMENT OF THE PROBLEM
This research work is intended to find out the impact of advertising on sales of an organization’s product and services. It highlights various reasons responsible for certain attractive attention among are:
i. Why has advertising become an important tool to promote and increase the total level of sales of consumer goods in some industry?
ii. What is the essential major proposal concerning the responses that provide the best measure of advertising effectiveness?
iii. Why is the ultimate purpose of advertising is to get people to purchase the advertised products?
1.3 OBJECTIVES OF THE STUDY
The major objectives of this study are to examine the impact of advertisement on the sales of an organizations products and services while the specific objectives are:
i. Determine which of the identified advertising strategy is most effective of all the possible application.
ii. Determine the efficiency of the advertising strategy used by organization to maximize their market share opportunities.
iii. Identify the various component of promotion element of the marketing mix adopted by the industry
iv. Access and present the extent to which advertisement techniques has been able to contribute to the attainment of an organization objective with emphases to Nigeria Bottling Company.
v. Analysis the ways in which these techniques can be used for the purpose of achieving organizational goals and objective.
1.4 SIGNIFICANCE OF THE STUDY
The study will identify the various roles played by advertising in the sales of an organization product and services, which an organization can apply in the market of its product. These roles are highlighted below:
i. It determines whether advertising is improving and encouraging sales in an organization.
ii. It will help the company to be able to achieve its aims by using advertising tools.
iii. It will enlighten the entrepreneur the purpose which advertising play in achieving their objective.
1.5 RESEARCH QUESTIONS
In carrying out this study, the following research question will be answered:
i. What benefit has the organization or management will derived from the advertising?
ii. Does it stimulate demand for specific brand?
iii. Does advertisement techniques improve the effectiveness or the sale turnover?
iv. What are the factors responsible for poor sales turnover in the Nigeria Bottling Company?
v. What are the benefits that advertisement has to offer the company?
The purpose of this research work is to test the hypothesis whether or not that advertising will have impact on the sales of an organization’s product and services
Ho: There is no positive relationship between advertising and increase in sales
Hi: There is positive relationship between advertising and increase in sales.
1.7 LIMITATION OF THE STUDY
In carrying out this study the major limitation and constraints of the study is finance constraint that is the cost involved in carry out the research study. The cost includes, cost of transportation, cost of typesetting and printing etc. the unavailability of material is another limitation to the research study. In fact, for travelling to a long distance to get the material needed but the constraint mentioned above cannot bridge the gap.
1.8 DEFINITION OF TERM
i. Advertising: Any paid form of non-personal presentation and promotion of ideas of goods and services by an identify sponsor.
ii. Brand Advertising: This is a form of advertising that focus on increasing the sales share of a brand towards attracting the attention of consumer’s of a rival brand to buy the company products.
iii. Publicity: This is an unpaid form of promotion appearing in the mass media.
iv. Product Advertising: A form of advertising that aims at stimulating demand for a products category.
v. Advertising Medium: This is the channel through which the advertising messages are delivered to the target audience for example, radio satiation, television station, media print etc.
vi. Target Audience: This group of people or segment of the market who may receive the advertising message delivered by a medium.
vii. Theme: This theme of advertising is the essential message that advertiser wishes to communicate.
viii. Frequency: This number of time of an advertising message is delivered with a set of time..