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