IMPACT OF ADVERTISEMENT ON CONSUMABLE GOODS

(A Case Study of Cadbury Nigeria Plc)

CHAPTERONE

INTRODUCTION

1.1      BACKGROUNDTOTHESTUDY

Communication is needed to reach markets at a reasonable cost. Advertising is just one of the tools for reaching markets. It may be too costly and time consuming to try to do marketing job with salesmen alone; in such situations, advertising may be preferred.

Advertising consists of all the activities involved in presenting to a group a non-personal, oral or visual, openly sponsored message regarding a product, service or idea. This message, called an advertisement, is disseminated through one or more media and is provided for by an identified sponsor.

There is a significant difference between advertising and an advertisement. The advertisement is simply the message itself. Advertising is a process; it is a program or a series of activities necessary to prepared the message and get it to the intended market or audience. Another point is that the public, market or audience knows who is behind the advertising because the sponsor is openly identified in the advertisement itself. Also, the sponsor make payment to the media, which carry the message. These two considerations differentiate advertising from propaganda and publicity. Advertising consists of non-person (or one way) forms of communication conducted through paid media under clear sponsorship.

Advertisers include commercial firms but fundraisers, museums, government and various social action organizations (NGOs) seeking to advertise their causes or program to various target publics, audiences or market.

Advertising media include magazines and newspapers; radio and television, outdoor display (posters, billboards, signs) direct mail, novelties (pens, calendar), catalogues; directories ad circular among others.

Advertising has many purposes, which include long-term building up of the organization’s corporate image (i.e. institutional advertising), information dissemination about a sale, service, or event (classified advertising), announcement of a special sale (promotional advertising) and advocacy of a particular cause (advocacy advertising), among others.

1.2      STATEMENT OF THE PROBLEM

The problems of this research study will be stated in question forms which are:

(a)         Why do companies use advertising?

(b)        To what extent has companies achieve its marketing performance objectives through the used of advertising.

(c)         Why is it that advertising strategy raised best among the other(s) marketing mix communication?

1.3      OBJECTIVES OF THE STUDY

The objectives of this research study include the following:

(a)         To determine whether advertising in form the market about new product or service.

(b)        To ascertain whether advertising build up long term product brand.

(c)         To determine whether advertising does remind customer/clients where to buy the products/services

1.4      RESEARCH QUESTIONS

Research questions are minute or specific advertising dimensions of the ‘statement of problem’ broad questions, the relevant research questions are:

(a)         Does advertising inform the market about new product/service

(b)        Does advertising build up long term product brand

(c)         Does advertising remind customers/clients where to buy the products/services?

1.5      RESEARCH HYPOTHESIS

Hypotheses are tentative answer to research questions. The tentative answers to the research question above are:

Ho:   Null Hypothesis

H1:   Alternative Hypothesis

Ho: Advertising does not inform the market about new product/service.

H1:   Advertising inform the market about new product/service

a.    Ho: Advertising does not build up long term product brand.

H1: Advertising build up long term product brand.

b.      Ho: Advertising does not remind customers/clients where to buy the products/services.

H1: Advertising reminds customers/clients where to buy the products/services.

1.6      SCOPE OF THE STUDY

This research study is strictly within the frame of the stated objective. This research was designed to absolutely analyze and examine the impact of advertising in Nigerian Breweries industry and LagosState will be used as area of study.

1.7      SIGNIFICANCE OF THE STUDY

This research study is likely to be useful to Nigerian business organization to appreciate the importance of advertising so as to enhance their organizational performance. Most importantly, it will show the power value of advertising as an importantly element in communicating company product to the market.

1.8      OPERATIONAL DEFINITION OF TERMS

This research work is carried out at NigerianBreweriesCompanyLagosState. This is done because this is where the necessary data concerning the company can be received.  The constraints encountered doing these research studies are:

(a)       Time constraint which are relatively small in collecting date and information.

(b)      Financial constraints.

(c)       Unavailability of the necessary material for the effective smoothness of the research work.