Abstract
Advertising is the blood of any organization; its activities cannot be underestimated for company who wishes to remain in a global competitive environment. This study examined evaluating advertising effectiveness on the sales volume of an organization with special reference to Champions Breweries Plc. Data were collected through structured questionnaire and other publications such as the news pappers magazine and published literatures. Sample size for the study was one hundred and thirty three participant and data were adequately analyzed and conclusions were arrived at and adequate recommendations were made.
CHAPTER ONE
INTRODUCTION
- Background of the study
Advertising has become a powerful communication tool in passing message about the products and services to both customers and potential customers. When there is adequate awareness through advertising, high patronage will be achieved, which will result to an increase in sales volume, productivity and profit level of the organizations. However, poor product communication to the final consumers could give competitors an edge in term of loyalty to brands, sales volume and high market share. Consequence of this has been the major setbacks for matured industries. Akanbi and Adeyeye (2011) believe that advertising campaign cannot solely responsible for recorded increase in its sales after campaign. Other unrecognizable factors like higher income for potential customers, reduction problems of competitors, improved customer relation of distributors and retailers and other unnoticeable factors apart from the campaign may be responsible for the company’s improved sales (Akanbi and Adeyeye, 2011). Morden (1991) believes that advertising gives the knowledge about the product and create the idea in mind about it.
Advertising is any paid form of non-personal communication about an organization or its product to a target audience through a mass/broadcast medium by an identified sponsor. It should be observed that for any promotional activity to be called advertisement it must be paid for. In the real sense, it is the method used by companies for creating awareness of their products, as well as making new products known to the new and potential consumers. This thesis however, centers on the impact of advertising on the sales volume of a product. This work will shed light on how advertising can really affect a consumer’s buying decisions in a growing economy like that of Nigeria and how successful advertising can keep businesses going even in the midst a tough competition. More so, advertising as a promotional tool also tends to remind, reassure and influence the decisions of the consumers because an advertisement itself enlightens, educates, and persuades consumers on their acceptability of the product offering. Advertisement in such a media as print (newspaper, magazines, billboards, flyers) or broadcast (radio, television) typically consist of pictures, headlines, information about the product and occasionally a response coupon. Advertising can be done through print media which includes news papers, magazines, brochures, Audio media for example radio and visual media which includes billboards and television (Kotler and Armstrong 2010). The essence of advertizing is hinged on increasing or improving sales performance which describes the trend of collections in terms of revenue when comparing different periods (MC Cathy, 1994). The sales may be in form of offering products or services to consumers. A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything (Kotler and Armstrong, 2010). Sales volume is the core interest of every organization and is based on sales and profit Busari, (2002) as cited in Adekoya,( 2011) says that advertisements can also be seen on the seats of grocery carts, on the wall of airport walkways, on the sides of buses, airplane and train. Advertisements are usually placed anywhere an audience can easily and/or frequently access visual and/or video. Akanbi and Adeyeye, (2011) discover that advertising as a subset of promotion mix has a significant effect on sales turnover. Adekoya (2011) finds that advertising influence consumer buying behavior, which means it helps to increase sales turnover. It is on this premise that this research work wishes to examine the impact of advertising on organizational sales turnover with special reference to Champions Breweries Plc
- STATEMENTS OF THE PROBLEM
Champions breweries carries out frequent advertising of their products to increase their sales volume, through taking part in charitable funds in Nigeria and even sponsoring sports. It advertises using radio, television and newspapers. Despite its efforts in advertising regularly the sales volume of champions breweries has not met the desired targets. It is on this note that the researcher intends to investigate the effect of advertising on sales volume of champions breweries plc.
- OBJECTIVE OF THE STUDY
The main objective of this study is to evaluate the effectiveness of advertising on sales volume. But for the successful completion of the study the researcher intends to achieve the following objectives;
- To evaluate the effectiveness of advertising on the sales volume of the organization
- To ascertain the relationship between sale volume and advertizing
- To ascertain the impact of advertizing on the profitability of the organization
- To ascertain the role of advertizing in attaining profitability
- SIGNIFICANCE OF THE STUDY
At the completion of the study, the findings will help the firms understand the importance of advertising, it will also enable them to structure their adverts and brands to make them more appealing in order to improve sales and lead to better performance. As this study gives a clear insight into how advertisement can influence consumer behaviour, many firms will be encouraged into using adverts to market their products. When firms start making more sales and profits as a result of advertising, the economy Nigeria will be boosted as more income from tax will be accrued to the government of Nigeria. The findings and recommendations of this study will go a long way in helping firms to adopt good advertising strategies and appealing brand designs to help get more consumers for their products and services.
- RESEARCH QUESTIONS
For the successful completion of the study, the following research questions were formulated by the researcher;
- How effective is advertising on sales volume?
- What is the relationship between advertizing and sales volume ?
- What is the impact of advertizing on the profitability of an organization?
- What is the role of advertizing in attaining profitability?
- RESEARCH HYPOTHESES
The following hypotheses are formulated to guide the researcher to completion of the study
H0: there is no significant relationship between advertizing and sales volume
H1: there is a significant relationship between advertising and sales volume
H02: advertizing has no significant impact on profitability
H2: advertizing has a significant impact on profitability.
- SCOPE OF THE STUDY
The scope of the study covers evaluating advertising effectiveness on sales volume of an organization, with emphasis on champion’s breweries. With emphasis on 2004 to 2011
- LIMITATION OF THE STUDY
During the cause of the study, the researcher encounters some limitation which limited the scope of the study; some of these limitations are stated below
(a)Availability of research material: The research material available to the researcher is insufficient thereby limiting the study.
(b)Time: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
(c)Finance: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover
1.9 DEFINITION OF TERMS
Advertising
This is any paid form of non-personal presentation of idea, goods or services by an identified sponsor.
Advertising Agencies
These are usually independent business organizations comprised of creative and business personnel, who develop, prepare and place adverts for organizations so as to attract and influence consumers’ behaviour towards a product or service.
Consumer
This is the person(s) to which the advertisement and products/services are directed. Here they are also known as buyers of a company’s product. Outdoor Media
These cover the use of billboards, sign posts, posters, handbills, etc. in communicating the advertising message to the consumers.
Electronic Media
These include radio, television, the internet, etc and can be either local or international.
Market
This is usually the strategic location or place where the company’s consumer/buyers are situated or where they go to buy the products/services of their choice. The market place offers different products/services to different consumers.
Producer
This is the organization or firm that provides a product or that delivers services for consumer consumption.
Sales Volume
This is used to measure the amount, usually in cartoons/crates, etc, of the product being sold at a given point in time. This is commonly used as well with products but it could be as used within a service company.
Transit Advertisement
A relatively minor volume of the advertisement placed in or on public buses, taxis, cars and other commercial vehicles.
Product
This can represent anything a consumer acquires or might acquire to meet a perceived need. The need not necessarily need to be satisfactory. Some product might not satisfy their needs.
Sales
This is a process of selling something such as a product, ideas or services. It also covers the number of goods or services sold at a given point in time. (Arowomole, 2001, 17-25)
1.10 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five deals with introduction, discussion of findings and chapter six covers summary, conclusion and also recommendations made of the study.
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