ABSTRACT
This study examined “Effect of Advertising on sale Performance of B-Lux Paint in Umuahia, Abia State”. The study examined the various variable for sales performance (sales volume, profitability, marketshare). The study adopted the descriptive research design. Using questionnaire distributed to 80, management, Distributor and customers of B-lux paints Umuahia. The study adopted ANOVA analysis techniques in analyzing the primary data used for the study. It was discovered that advertising persuade customers to buy B-lux paint and advertising have positive and significant effect on sales volume, profitability and marketshare. It is recommended that B-lux paint should develop more effective advertising campaign to attract potential customers and reinforce brand loyalty to existing customers. The advertising message should use persuasive and reminder oriented.
TABLE OF CONTENT
TITLE PAGE
COVER PAGE - - - - - - - - - i
DECLARATION -- - - - - - - - ii
CERTIFICATION - - - - - - -- - iii
DEDICATION - - - - - -- - - - iv
ACKNOWLDGEMENT - - - - - - - - v
TABLE OF CONTENTS - - - -- - - - vi
LIST OF TABLES - - - - - - - - ix
ABSTRACT - - - - - - - - - x
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND TO THE STUDY - - -- -- - 1
1.2
Statement of the problem - - - - - - - 3
1.3
Objectives of the study - --- - - - - - 4
1.4
Research Questions - - - - --- - - 4
1.5
Research hypothesis - - - - - - - 5
1.6
Significance of study - - - - - - - 5
1.7
Scope of the study - - - - - - - - 6
1.8
Operation definition of
terms - - - - - - 7
1.9
Brief historical
background of B-Lux Paint Industry Ltd. - - 8
CHAPTER TWO
2.0 REVIEW OF
RELATED LITERATURE - - - - 9
2.1 Conceptual
framework - - - - - - - 9
2.2 Objectives
of advertising - - - - - - 15
2.3 Criteria
for setting advertising objectives - - - - 16
2.4 The
role of advertising - - - - - - - 16
2.5 Advertising
and consumer behavior - - - - - 17
2.6 Advertising
budget and appropriations - - - - 18
2.7 Evaluating Advertising Effectiveness on
corporate profit - - 20
2.8 Types of Advertising Media - - - - - - 21
2.9 Benefits of Advertising - - - - - - - 22
2.10 Theoretical
Framework - - - - --- - - 23
2.11 Empirical Theory - - - - - - - - 29
CHAPTER
THREE
3.0 RESEARCH METHODOLOGY - - - - - 32
3.1 Introduction
- - -- - - - - - 32
3.2 Research
Design -- - - - - - - - 32
3.3 Area
of Study - - - - - - - 33
3.4 Population
of the study - - - - - - - 34
3.5 Determination
of sample size - - - - - - 34
3.6 Data
collection - - - - -- - - - 35
3.7.1 Source of data - - - -- - - - - 35
3.7.2 Data types and sources - - - - - - - 35
3.7 Validity
- - - - - - - - - 36
3.8 The
reliability of the instrument - - - - - 36
3.9 Sampling
Techniques - - - - - - - 37
3.10 Method of Data Analysis - - - - - - 37
3.11 Model Specification - - -- - - - - 37
CHAPTER FOUR
4.0 DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
4.1
General Description -- - - - - - - - 38
4.2 Hypotheses
testing - - - - - - - - 44
CHAPTER
FIVE
5.0
SUMMARY, CONCLUSION AND RECOMMENDATION 47
5.1
SUMMARY - - - - - - - - 47
5.2
CONCLUSION - - - - - - - - 47
5.3
RECOMMENDATIONS - - - - - - - 48
REFERENCE
APPENDIX
QUESTIONNAIRE
LIST OF TABLES
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Table
4.1; Sex 38
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Table
4.2; Marital Status 39
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Table
4.3; Age Range 39
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Table
4.4; Occupation 40
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Table
4.5; Highest Qualification 40
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Table
4.6; Number of Children 41
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Table
4.7; Level in organization 41
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Table
4.8; Role in Organization 42
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Table
4.9; Promotional tool 42
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Table
4.10; Effect of Advertising 43
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Table 4.11; Influence on Market Share 43
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Table 4.12; Relationship between
Advertising and Profitability 44
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CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND TO STUDY
Advertising
as a concept, could be defined as any paid for of non-personal presentation and
promotion of ideas, goods and services by an identified sponsor. According to
the American Marketing Association (AMA) advertising is also a form of
communication through the media product services. Ideas, personalities or
organization paid for by an identified sponsor (Okunna 2002), in a more widely
accepted form, advertising is one of the marketing strategies and also a basic
element of the marketing communication and promotional strategy directed to
influence the consumer perception and patronage to product brands, especially
in the consumer market (Kotler, 2000). One of the major reasons for the
adoption of advertising in the consumer product marketing is not only to
communicate and create product awareness of the
product but also to induce purchase.
This
is to justify the philosophy behind the selling concept of marketing which
states that consumer can only purchase product if they are influenced and
motivated to buy the product (Kotler & Armstrong, 2006).
According
to advertising practitioner’s council of Nigeria, (APCON), advertising is form
of communication through the media about products, services or ideas, paid for
by an identified sponsor. There is no doubt that advertising has brought
prosperity to different countries of the world through different means with the
help of the agencies delegated with responsibility of regulating the practice
of advertising. Thus, for marketing of consumer product brand, otherwise the
consumer perception of the advertised product will invariably differ from the
unadvertised product brands (Kotler and Keller, 2003).
It
is through planned advertising, in relation with influence of other elements of
marketing communication that the market will open the “Black Box” by creating
the awareness of the product brand, not only for communicating the brand
availability, but also to motivate, modify the responsive chord buying behaviour
(Anyanwu, 2003). Therefore, adverting is defined as any form of non personal
communication through the mass media that is paid for by a firm, so as to
attract and influence customer patronage and buying behaviour (Roger, 2004).
1.2
Statement of the problem
Advertising
tries to identify the company, its products and its attributes. Advertising is
an indispensable tool in marketing of consumer goods and services.
The
advertisement of consumer product brand goes to a large extent to influence the
consumer perception of branded product against the perception of non-advertised
consumer product brands.
Taking
note of these attributes, the consumer perception map and the marketers
interpretation, observation of this perception in the advertising design are
constrained by some problems, some of these problems are discussed here in: the
cost of advertising, the media choice of the consumer behavior, are some of the
problems facing the effective designing of advertising message to influence the
consumer’s perception of the product brand. This is because of limited
resources which the marketing operations are competing for, and the dynamic
nature of the consumer buying pattern are not usually easy to be determine
(Anyanwu, 2003).
Despite
the fact that advertisement helps in creating positive perception about the
product. Some criticize advertising messages. Thus, majority of the people
perceive advertisement message as negative for the advertised product, owning
to the reason that a good number of them are deceptive and misleading (Kuma,
2000, Chanter & Rishi 2003).
1.3
Objective of the study
The
main objective of this research work is to examine the effect of advertising on
the sales performance in the B-lux Industry.
The
specific objectives of this study are as follows to:
1. examine
if advertising persuade consumers to buy B-lux paint company product.
2. determine
if advertising have positive effect on sales volume of B-lux Paint Company.
3. assess
if advertising influences market share of B-lux Paint Company
4. ascertain if advertising have a significant
relationship on profitability of B-lux Paint Company.
1.4
Research Questions
1. Does
advertising persuade consumers to buy B-lux company’s product?
2. Does
advertising have positive effect on sales volume of B-lux paint company?
3. To
what extent does advertising influences market share of B-lux Paint Company?
4. Does
advertising have significant relationship on profitability of B-lux Paint
Company?
1.5
Research hypotheses
Ho1:
Advertising does not persuade consumers
to buy B-lux paint company’s product
Ho2:
Advertising does not have positive effect on sales volume of B-lux paint
company
Ho3: There
is no significant relationship between advertising and market share of B-lux
paint company
Ho4:
There is no significant relationship between advertising and profitability.
1.6
Significance of study
The
essence of this study is to highlight the importance of advertising on consumer
product in our country. Since many companies do not engage in advertising
activities the findings of this research work will help firms appreciate the
need for advertising and its effect on sales.
This
research will be of great benefit to government, Academic community, consumers,
management of B-lux paint company. To government, they can benefit from
advertising in the area of income generation, when there is effective
advertising, like the company paying their tax, revenue, levies and also create
social amenities, like library, schools, hospital, pipe borne waters, a post
box etc
To
academic community, it will serve as a reference material to other researcher
who may carryout similar work in the nearest future.
- To
customers, when you achieve a smooth, advertising on B-lux paint the customers
will enjoy sales relationship.
- To
management of B-lux paint company, it will enable them strategize on the
effective means to advertise their products to consumers. It will also help
consumer of B-lux paint products to have products when and where they are
needed at the time they are needed.
- Advertising
effectiveness measurement is rated on ability of the message content and
features to influence the target audience to patronize and remain loyal to
corporate offer.
1.7
Scope of the study
This
study focus on the effect of advertising on the sales performance of the paint
industry which was carried out in Umuahia, Abia State. The study will be
limited to B-lux paint product industry, Umuahia. However, was chosen for easy
access for data collection by the researcher.
1.8
Operational definition of terms
Black
box is a process of creating awareness of about unknown product on a system
which there is no a prior information available.
Advertising;
According to American Marketing Association (AMA), advertising is any paid form
of non-personal presentation and promotion of ideas, goods and services by an
identified sponsor.
Sales;
Can be defined as competence of the buyer and seller to enter into a contract,
its is also mutual agreement on the terms of exchange. Like exchange of a
commodity or money as price of a goods or services.
Sales
is activity related to selling or the amount of goods or services sold in given
time period.
Performance;
Could be defined as the accomplishment of a given task measured against preset
of known standards of accuracy, completeness, cost and speed. In a contract,
performance is deemed to be the fulfillment of an obligation in a manner that
releases the performer from all liabilities under the contract.
Sales performance;
Is the practice of monitoring and
guiding personnel to improve their ability to sell products or services.
1.9
Brief historical background of B-Lux Paint
Industry Ltd.
The
B-lux Paint Industry Ltd is one of the biggest paint industry in Umuahia Abia
State, Nigeria. B-lux paints Nigeria limited is a private limited company
established in the year 2008 by Elder Chief Bright Nwaiwu. It commenced
business of paint production in the same year at its former location No. 4 Timber Road Umuahia Abia State. In the
year 2010, it was moved to No. 1 Okpara
Square Umuahia, which also serve as the Head Office. The factory is located at
Umuokwom Ohiya in Umuahia South Local Government Area of Abia State. The
industry has more than twenty (20) workers in its payroll.
The
main business of the company is purely manufacturing of various classes of
paints; like Emulsion, Texcoat, Satain, Gloss (oil paint), paints and host of
others.
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