ABSTRACT
This
research work examined the impact of advertisement on Sales volume of a
competitive product. The study measures the relationship between advertisement
and market share and the effect of advertisement on brandswitching. Data were
collected through structured questionnaire. A total of 100 respondents were
sampled representing 72.46%. Result revealed that there is a significant
relationship between advertisement and market share. It was also found that
advertisement has a significant effect with brandswitching. The research
recommends that advertisement should focus more on consumer retention.
TABLE OF CONTENT
Title
page i
Declaration
ii
Certification iii
Dedication
iv
Acknowledgement
v
Table
of content vi
List
of tables viii
Abstract ix
CHAPTER
ONE
INTRODUCTION
1.1 Background Of The Study 1
1.2 Statement Of The Problem 3
1.3 Objective Of The Study 3
1.4 Research
Question 4
1.5 Research
Hypothesis 4
1.6 Scope
and Coverage Of The Study 4
1.7 Limitation
Of The Study 5
1.8 Significance
Of The Study 5
1.9 Definition
Of Terms 6
CHAPTER
TWO
2.0 REVIEW OF RELATED LITERATURE
2.1 Nature Of Advertisement 8
2.2
Concept Of Advertising 9
2.2.1
The Marketing Point Of View 9
2.2.2
The Communication View Point 10
2.3 Scope Of Advertising 12
2.4
Advertising And Sales Relationship 14
2.5 The Role Of Advertising 17
2.6 Importance Of Advertising 20
2.6.1
Forms Of Advertising 21
2.7.1 Factors That Determine The Choice Of Media 24
2.8. Impact Of Advertising On The Company 25
2.8.1
Sales Volume 25
2.8.2 Delayed Response Advertising: 25
2.8.3
Sales Promotion 26
2.9
Purpose Of Advertising 26
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Introduction 30
3.2 Research Design 30
3.3 Area Of Study 30
3.4 Population Of The Study 31
3.5 Sources Of Data Collection 31
3.5.1 Primary Sources Of Data 31
3.5.2 Secondary Sources Data 32
3.6 Sample Size Determination 32
3.7 Sampling Technique 33
3.8 Instruments For Data Collection 33
3.9 Method Of Data Presentation And Analysis 33
1.10 Model
Specification 33
CHAPTER
FOUR
4.0 Data
Presentation, Interpretation And Analysis 34
CHAPTER
FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary 48
5.2 Conclusion 48
5.3 Recommendation 49
References 51
Appendix
53
Questionnaire 54
LIST OF TABLES
Table 4.1: Questionnaire Rate Of Return 34
Table 4.2: Sex
Of Respondent 35
Table 4.3: Age Of Respondents 36
Table 4.4: Marital Status 37
Table 4.5: Household Size 38
Table: 4.6: Occupation 39
Table 4.7: Education Qualification 40
Table 4.8: Consumer Assessment Of Advertising Effects
On Sales Volume 41
Table 4.9: Consumer Behavior On Deceptive
Advertisement 42
Table 4.10: Consumer Assessment Of Cultural Influence
And Effectiveness On Advertising. 43
Table 4.11: Consumer Assessment Of Promotional
Effectiveness. 44
Table:4. 12 Correlations 45
Table 4.13 Mind Share Analysis of Noodle Products 46
Table 4.14 Correlation Analysis 47
CHAPTER
ONE
INTRODUCTION
1.1 Background of the Study
Various
writers have viewed advertising from different perspectives. Good advertising
have a long-term, durable effect that builds goodwill between the firm and
customers. According to Bennet, (2006) “Advertising is any paid message
presented through various media, such as television, radio, magazines,
newspapers, or billboards by an identified source. Going by the definition
considered above, advertising is an indicator of growth, betterment and
perfection of the business environment. Not only does advertising mirror the
business environment, it also affects and gets affected by our style of life.
It is not at all surprising that advertising is one of the most closely
scrutinized of all business institutions. In today’s environment, advertisers
are closely examined by the target audience for whom the advertisement is meant
for in the society. Kazmi (2005). Modern advertising is largely a product of
the twenty first century. However, communication has been a part of selling
process ever since the exchange of goods between people started Kazmi (2005).
As
an element in the promotional mix, advertising has come to play a dominant role
in that it tend to reach a wooer audience more than any other promotional
element on a single splash or exposure Aham (2005). While advertising may have
several objectives, ultimately marketing and business executors want to know
how advertising has contributed to sales understanding and quantifying the
benefits of advertising is problem as old as advertising itself. The problem
stems from the many purposes advertising serves; building awareness of
products, creating brand equity and generating sales. There has been an
explosion in media alternative from the traditional standbys of television,
radio and prints. The choices within each medium have also expanded in an
attempt to reach more targeted audience. Television, for example, has burgeoned
from three primary networks to literally dozens of mainstream cable channels,
all capable of reaching large audiences with brand messages or product
promotions. It is one thing to know how memorable an advert might be or how
potential customers feels about a company or its products, but it quite another
to quantify the sales and profitability impact that advertising might produce.
Today,
companies are in a more competitive and faster-paced environment than were
before, accelerating the need to understand the consequences of their marketing
efforts. Marketers simply do not have the luxury any more to rest on their
laurels or to assess how a set of campaigns performed months after they have
been concluded. The market place is involving so rapidly in many cases that
knowing what’s working and what’s not almost as fast as it is happening has
great value. For these reasons, marketers have begun to seek now and effective
measurement tools to help them estimate the impacts of their advertising mostly
on sales volume.
1.2 Statement of the Problem
There
have been a believe that most advertisement in Nigeria context are deceptive
that it makes people buy what they never intended buying and buyers are also
misled by the information given in particular advert message, because of this
misconception given to advertising, people tend to believe it strongly and it
implies a reduction in the sales volume of the product.
All
these problems can be apprehended when the benefits of the products are made
known to the consumer. Now, the problem is how does an indomie noodle alert
their consumers of the emergence of a particular product in the market? Does
the firm inform consumer through advertisement or by other means? If by
advertising, does it have any impact on sales and profit level of the company
products?
1.3 Objective of the Study
The
broad objective of the study is to evaluate impact of advertising on the sales
volume while the specific objectives are to:
I.
Measure the relationship
between advertisement and market share
(Mind
share)
II.
Determine the effect of
advertisement on brand switching
III.
Analyze consumer's
reaction to deceptive advertisement
1.4 Research Question
The following research
questions will guide this work:
II.
Does advertisement have
any significant effect on market share?
III.
Does advertisement have
any effect on brand switching?
IV.
How does consumers react
to deceptive advertisement?
1.5 Research Hypothesis
Ho1 Advertisement does not have any significant effect on market share
(Mind share)
Ho2 Advertisement does not have any significant effect on brand
switching
Ho3 Deceptive
advertisement does not necessarily affect consumer behaviour
1.6 Scope and coverage of the Study
This work will shed light
on how advertising can really affect a consumer’s buying decision in growing
economy like that of Nigeria and how successful advertising can keep business
going even in the midst a tough competition. 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 consumer’s
on their acceptability of the product offering.
1.7 Limitation of the Study
This research study was
constrained by inadequate data and information, release of information and the
location of the company used as a case study. These factors may have somehow
limited the outcome of this research work.
This research work was
designed to examine the impact of advertising on the sales volume of a
competitive product but the data was restricted to the information collected
from the management and some consumers.
1.8 Significance of the Study
The study will help firm
understand the importance of advertising. It will also enable them structure
their adverts and brands to make them more appealing in order to improve sales
and lead to better performance. When firm start making more sales and profits
as a result of advertising, the economy will be boosted. The findings and
recommendation of this study will go a long way in helping firms to adopt good
advertising strategies.
It will also form a
background for future research on advertisement.
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 consumer’s behaviour towards a product or services.
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:This covers
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 product/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 place 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. Come product might not
satisfy their needs.
Sales: This is a process
of selling something such as a product, ideas or service. It also covers the
number of goods or service sold at a given point in time Arowomole (2001).
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