ABSTRACT
This study examined the relationship between
radio advertising and business performance of breweries firms in Port Harcourt
metropolis. The study was guided by six specific objectives, six research
questions and six hypotheses. The study measured business performance
(dependent variable) by market share and profitability while radio live reads,
radio jingles and radio sponsorships were adopted as the dimensions of radio
advertising (independent variable). The study was anchored on Hierarchy of
Effects Theory. The study adopted survey
research design. The study made use of primary data and structured
questionnaire as the data collection instrument. The population of this study
consisted of all breweries firms in Port Harcourt metropolis. The sample size
consisted of one hundred and sixty-seven (167) employees and managers of the
five (5) selected breweries firms in Port Harcourt metropolis. The sample size
was determined by Taro Yamane formula. The study made use of simple random
sampling technique to select the respondents. Frequencies and simple
percentages were used to analyse the demographic data of the respondents and
other items of the questionnaire while Pearson Product Moment Correlation
(PPMC) was used to test the hypotheses. The findings of the study showed that:
radio live reads has a positive and significant relationship with market share
and profitability of breweries firms in Port Harcourt metropolis, radio jingles
has a positive and significant relationship with market share and profitability
of breweries firms in Port Harcourt metropolis while radio sponsorships also
has a positive and significant relationship with market share and profitability
of breweries firms in Port Harcourt metropolis. The study concluded that radio
advertising has a significant positive influence on business performance of
breweries firms in Port Harcourt metropolis. It was recommended among others
that breweries firms should intensify their efforts in making use of radio live
reads, radio jingles and radio sponsorships to promote their product
TABLE OF CONTENT
Title page ……………………………………………………………………….. i
Declaration…………………………………………………………………………. . ii
Certification………………………………………………………………..………… iii
Dedication……………………………………………………………………………. iv
Acknowledgement………………………………………………………………..….. v
Table of content……………………………………………………………………… vi
Abstract……………………………………..………………………………………. viii
CHAPTER ONE INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Research Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypotheses
1.6 Scope of the Study
1.7 Significance of the Study
1.8 Operational Definition of Terms
1.9 Organization of the Project Report
CHAPTER TWO LITERATURE REVIEW
2.1 Conceptual Clarifications
2.1.1 Concept of Advertising
2.1.2 Classifications of Advertising
2.1.3 Advertising Strategy
2.1.4 Concept Radio Advertising
2.1.5 Dimensions of Radio Advertising
2.1.6 Functions of Radio Advertising
2.1.7 Business Performance
2.1.8 Measures of Business Performance
2.1.9 Conceptual Framework
2.2 Related Theories
CHAPTER THREE RESEARCH METHODOLOGY
3.1 Research Design
3.2 Population of the Study
3.3 Sampling Procedure and Sample Size
3.4 Method of Data Collection
3.5 Measurement of Variables
3.6 Validity and Reliability of the Instrument
3.7 Method of Data Analysis
3.8 Limitations of the Study
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Analysis of Questionnaire
4.2 Analysis of Respondents Profile
4.3 Univariate Analysis
4.4 Bivariate Analysis (Hypotheses Testing)
4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendations
REFERENCES
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
In different areas of human endeavor, be it education, business, parenting, governance, warring or sports, there is always a competition going on as one group tries to perform better than the others. In the business world, especially in a capitalist economy, competition enjoys greater prominence as it forms the bedrock for the survival of a business organization (Obiora, 2018). Therefore, for a business to continue to exist and satisfy the purpose of the ownership, management, staff, society and other stakeholders, it must be able to survive the competition posed by other businesses with similar products and objectives. As businesses compete, they rely heavily on marketing to gain an edge over one another. Through marketing, an average business will be able to satisfy its customers through its products and services, satisfy its shareholders through profitability, satisfy management through increased sales and market share, satisfy staff through increased remuneration and job security etc. This ability has made marketing very vital and relevant in almost all endeavours of life be them profit or non profit making. One of the important components of marketing that most of the business organizations use is advertising (Obiora, 2018).
Advertising is an integral part of our social and economic systems. It has become a vital communication system for both consumers and business houses. The main objective of advertising is to prepare, promote and place messages to target audiences. Advertising, no doubt, is the fulcrum on which successful enterprise (especially in a free market and competitive economy) revolves. It can be conceived as a society's central nervous system. Advertising serves to communicate an idea to a large number of people in an attempt to convince them to take a certain action. It is a form of communication intended to persuade the audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or services (Amadi& Elijah, 2015). Advertising is the non-personal communication of marketing-related information in a target audience, usually paid for, in order to reach the specific objectives of the sponsor (Bennett, 2016). According to Olatunji (2018) advertising is a component of communication, media, and creative industries. It is a tool, not only for business promotion, but also a strategic weapon for advancing socio-economic changes and development in all ramifications. It is one of the agents of socialization, just like the family, educational, religious, political institutions, and other socializing influences including elements of the media. Advertising is a critical strand of the creative industries that provides education, entertainment, information and communications to lubricate and sustain other agents of socialization.
However, one major type of advertising that is commonly used by business organizations is radio advertising. According to Oladosu (2019) radio advertising is a form of marketing strategy that uses the radio – both traditional stations and satellite and internet radio - to promote a product or service. Radio advertising is buying of commercials to promote products or services. Advertisers pay commercial radio stations for airtime and, in exchange, the radio station broadcasts the advertiser’s commercial to its listening audience. Radio advertising has grown to become a big industry in Nigeria. Radio advertising is now very important in the economy of the nation, considering the fact that it serves as a source of information about goods and services and also persuades consumers to patronize the advertised goods and services, leading to improvement of business performance (Ndubuisi, 2014).
On the other hand, performance refers to the benefits emanating from shares and those from the functioning and operational activities of a firm or organisation (Rouf, 2012). Thus, business performance is the ability of an organization or a company to achieve organizational goals more effectively and efficiently. It involves all aspects which directly or indirectly affect and relate to the work of the employees. For performance to be effective, employers have to recognize the regiment desires and needs of the employees and how to make them work as a team in a diversified environment. Business performance can be measured using financial and non-financial indicators such as service delivery, market analysis, competitive advantage, sales growth, profitability, among others (Michael &Okolie-Osemene, 2017).
However, radio advertising has been found to influence consumer's buying trends and habits as well as business performance. According to Odunlami and Ofoegbu (2017) radio advertising is a vital tool for promoting organizational sales as it creates awareness, stimulates demand, encourages product trial, identifies prospects, retains loyal customer, combats competitive promotional efforts and reduces sales fluctuation. Furthermore, good radio advertising is said to create product awareness, helps in increasing the sales of the companies and consequently improves business performance. Being highly flexible tool, Oladosu (2019) further established that radio advertising that is promoted by effective communication can be used by firms to communicate with large number of potential buyers. It can also be used to communicate with people at the extreme (interior) parts of the environment. It is the most commonly used promotional element. The cost of reaching large number of people through radio advertising is very reasonable compared with other promotional elements. Aside from these, it can be used to communicate a particular targeted audience as it gives room for favourable relationship between the firms and its potential customers. That is, it creates good organizational image, promotes repeat purchase and contributes to organizational performance. Drawing from the foregoing, this study seeks to examine the influence of radio advertising on business performance of breweries firms in Port Harcourt metropolis.
1.2 Statement of the Research Problem
The quest to achieve organizational goals (especially profitability) in addition to coping with harsh business environment has covertly and overtly propelled some Nigerian firms into adopting some unethical advertising practices. These practices have been so pronounced that some Nigerian customers and clients have difficulty in developing brand loyalty for product and service in Nigeria. In addition, unethical advertising practices have affected the quality of Nigerian-made products and services. Furthermore, radio advertising copywriters employ various elements of communication such as sound or music, testimonials in order to share meaning with the consumers or audience. These elements are usually beautifully packed by the copywriters to create the desired impact and arouse the audience’s interest and possibly have them into action. Hence, most radio advertising in Nigeria lacks ethical standard and as a result, are alleged to misrepresent reality, by pushing its own values, artificial or false as they may be, as to what is good for consumers.
In addition, radio advertising is costly; often, its effects are uncertain, and sometimes it takes a while before it makes any impact on consumers’ buying behavior. It is for these reasons that many companies think it is appropriate, occasionally to reduce expenditures on radio advertising or to entirely eliminate it. On the other hand, some companies sometimes consider it unnecessary to advertise when their brands are already enjoying great success without advertising and this may eventually have a negative effect on their business performance.
However, there are vast researches conducted on the influence of advertisement on business performance in Nigeria. Based on the best knowledge of the researcher, there is no known published study conducted that exactly examined the influence of radio advertising on business performance of breweries firms in Port Harcourt metropolis. However, if there is any study at all on that, it cannot be the same with this present study due to the firms selected, data, proxies/measures of the variables and methodology used while the conclusions and recommendations may also not be the same. This creates a gap in knowledge which this study aims to fill. Hence, the point of departure in this study is to ascertain the influence of radio advertising on business performance of breweries firms in Port Harcourt metropolis.
1.3 Objectives of the Study
The main objective of this study is to ascertain the influence of radio advertising on business performance of breweries firms in Port Harcourt metropolis. Other specific objectives include:
To ascertain the influence of radio live reads on business performance of breweries firms in Port Harcourt metropolis.
To determine the influence of radio jingles on business performance of breweries firms in Port Harcourt metropolis.
To investigate the influence of radio sponsorships on business performance of breweries firms in Port Harcourt metropolis.
1.4 Research Questions
In a bid to actualize the above objectives, the following research questions are raised and will be answered in the course of this study:
To what extent does radio live reads influence business performance of breweries firms in Port Harcourt metropolis?
To what extent does radio jingles influence business performance of breweries firms in Port Harcourt metropolis?
To what extent does radio sponsorships influence business performance of breweries firms in Port Harcourt metropolis?
1.5 Research Hypotheses
In a bid to actualize the above objectives and answer the research questions raised, the following null hypotheses are formulated and will be tested in the course of this study:
H01: There is no significant relationship between radio live reads and business performance of breweries firms in Port Harcourt metropolis.
H02: There is no significant relationship between radio jingles and business performance of breweries firms in Port Harcourt metropolis.
H03: There is no significant relationship between radio sponsorships and business performance of breweries firms in Port Harcourt metropolis.
1.6 Scope of the Study
The scope considered in this study is the content scope, geographical scope, and unit of analysis.
Content Scope: This study centers on the influence of radio advertising on business performance of breweries firms in Port Harcourt metropolis. Specifically, the content scope of the study covers radio advertising and its dimensions (radio live reads, radio jingles, radio sponsorships and radio testimonials) as well as business performance and its measures (profitability and market share).
Geographical Scope: Geographically, the study focuses on breweries firms in Port Harcourt metropolis. 7-up Company Plc., Pabod Breweries Ltd, Cylora Investment Company Limited, Haastrup Industries, Plam Nectar Breweries Ltd.
Study Unit Scope: The unit of analysis for this study is at the organizational level. As a result, the study will make use of primary data and these data will be sourced employees and managers of breweries firms in Port Harcourt metropolis.
1.7 Significance of the Study
In practice, contemporary organizations have realized the importance of radio advertising to help organization’s management improve market share and overall business performance. Thus, a study of this nation is a step in the right direction and will be of great benefit to different groups and personnel in the following ways:
Academics: This study will contribute to the growing literature and existing body of knowledge by determining the influence of radio advertising on business performance of breweries firms in Port Harcourt metropolis.
Breweries Firms: This study will be of high significance to breweries firms in many respects. It will assist them on how to send highly impactful radio messages to their esteemed target audience/customers. The outcome of the study will also benefit these breweries firms on how to use radio advertising to build long-term client-customer relationships as well as how to secure wider segments of the market, increase their sales volume and thus increase their profit.
Management/Managers: The study will also enlighten management/managers of breweries firms and other firms on the best methods and means of radio advertising to use in order to promote their brands and increase their products acceptance in a highly competitive market environment.
Consumers/customers: The study will benefit consumers as the use of appropriate radio advertising will afford them with clear, credible and consistent messages. When consumers hear the same messages through radio advertising of different kinds), they (consumers) will be furnished with valuable information and as a result develop a strong faith in such messages.
Researchers and Students: Researchers and students who may wish to carryout similar studies will benefit using this study as it offers a reference for future research that might examine “influence of radio advertising on business performance of breweries firms in Port Harcourt metropolis” or related topics.
1.8 Operational Definition of Terms
The researcher defines the following terms to help for easy understanding of the study. Thus:
Advertising: This is the structured and composed non-personal communication of information, usually paid for and usually persuasive in nature, about products (goods, services or ideas) by identified sponsors through various media.
Business Performance: This is the ability of an organization or a company to achieve organizational goals more effectively and efficiently.
Radio Advertising: This is a form of marketing strategy that uses the radio – both traditional stations and satellite and internet radio - to promote a product or service.
Radio Jingles: These are short song or catchy musical refrains that promote a product or service in a radio spot.
Radio Live Read: A live read is when the radio personality/ DJ reads out advert live on air. Listeners are already familiar with the radio personality’s voice and they are more likely to engage with the advert.
Radio Sponsorships: These are an easy “next-level” advertising option that opens the door to a brand-new audience.
Radio Testimonial: This is an advertising method that highlights the end user's statement extolling the virtue of a product or brand.
1.9 Organization of the Project Report
The study will be organized into five chapters as follows:
Chapter one is introduction and covers it covers background of the study, statement of research problem, identifies the objectives of the study, research questions, research hypotheses, scope of the study, significance of the study and organization of the project report.
Chapter two review related literature on radio advertising and business performance. Thus, literature here will cover conceptual clarifications, review of related theories, review of empirical literature and theoretical framework.
Chapter three will highlight methodology. It will specifically discuss research design, population of the study, sample and sampling techniques, method of data collection, measurement of variables, validity and reliability of the research instrument, method of data analysis and limitations of the study.
Chapter four will center on data presentation, analysis and discussion of findings.
Finally, chapter five will provide the summary the major findings in this project report, conclusion and policy recommendations.
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