CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

In Recent times, the performance of any brand name in business depends largely and advertising which is mapped out of marketing strategy.

Advertising has not only become an integral part of our society and economic system but also grows over the year to assume tremendous proportions both as a business activity and a social phenomenon. It has affected not only the business sectors but also the whole society.

According to Offiong Odun (2004), advertising is a way of projecting value, ideas and expectation and so on to consumers. It is most effective as a rein forcer of favorable attitudes, value and disposition already held by consumers.

Advertising as defined by the America Marketing association, as any paid form of non-personal preservation or promotion of ideas, goods or services by an identified sponsor. Advertising comes in various forms, it involves the use of newspapers and magazines, television, radio, display of direct mail, billboard and so on. It is carried out to build up long term preference for a particular brand. It helps in creating awareness about a new product and reminding customers of existing goods and services.

Advertising is basically a means of promoting brand name or product. Advertising is promotion tools (a marketing mix) that enhance the performance of a particular brand product in the market. According to Olaunye (2002), promotion is a process of communicating that has the intention of delivery message about a brand from the marketers to potentials and correct consumer. Advertising has a high public mode of communication by informing customers the brand and also making them to know the new or existing brands of product in the market.  Besides, it is percisive mediums that permit the seller to repeat its message as many times as possible.

1.2     STATEMENT OF RESEARCH PROBLEM

Advertising is a marketing tool whose sale arm is to build preference for advertised brands or services. It has affected a brand performance. It informs subscribers about existing brands in the market. The relevance statement of the research work is to critically x – ray the effect of advertising on brands using Airtel Nigeria as a K-study.

1.3     OBJECTIVES OF THE STUDY

i         To ascertain if advertising of brand leads to increase in sales?

ii        To determine whether advertising increases the rate of production.

iii       To determine if advertising can improve on customers patronage and loyalty

iv       To know if advertising have a positive relationship with brand performance.

1.4     RESEARCH QUESTIONS

To effectively and efficiently carry out this study, the following research questions would be addressed:

1        Does advertising improve brands which lead to increase in sales?

2        Does advertising increase production in Airtel Nigeria?

3        Does advertising increase patronage and consumer loyalty?

4        Does advertising have any relationship with positive brand performance of Airtel Nigeria?

1.5     RESEARCH HYPOTHESES

i         Ho:    Advertising of brand does not lead to increase in sales

          Hi:     Advertising of brand lead to increase in sales.

ii        Ho:    Advertising does not determine increase in the rate of production.

          Hi:     Advertising determines increase in the rate of production.

iii       Ho:    Advertising does not increase patronage and consumer loyalty

          Hi:     Advertising increase patronage and consumer loyalty.

iv       Ho:    Advertising does not have any relationship with the positive effect of a                            brand performance of Airtel Nigeria

          Hi:     Advertising have a relationship with the positive effect on brand                                      performance of Airtel Nigeria.

1.6     SIGNIFICANCE OF THE STUDY

This study seeks to identify the role advertising plays in the achievement of Airtel Nigeria objectives. This study will basically serve as a guide to the company and individual by giving them (both the company (Airtel Nigeria) and the customers). Insight into how well planned and effectively advertising program can help to yeild a positive impact it would have on their brand performance and what to do next in case of low impact.

1.7     SCOPE OF THE STUDY

This study involves a review of advertising campaign program of Airtel Nigeria from 2014. The study will highlight the meaning of advertising as a promotional tool and also examine the impact of advertising on the brand performance. This study period is one year.

1.8     LIMITATIONS OF THE STUDY

In the course of camping out this research work, numerous problems were encountered, one of the problems was finance, being a student, and it was not easy for me. Financially.

Secondly, most of the company’s management staff and workers were not opportune to respond to me due to their engagement with the company’s activities. Hence3 the researcher suffered and wasted a lot of time waiting for their responses and at the end, some copies of the questionnaires were not returned.

Time constraint, while carrying out this research work, the researcher was subjected to a stipulated time limit within which the findings must be reported.

A study of this magnitude requires more time than that which was given to the researcher and this was a serious limitation on my side and the research work.

1.9     OPERATIONAL DEFINITION OF TERMS

Advertising: This is defined by the America Marketing Association as any paid form of non-personal presentation or promotion of ideas, good and services by an identified sponsor.

Advertisement: This is simple the message of copy. The brand bill itself for example is an advertising copy.

Brand: Is a name, symbol, sign or logo or a combination of items intended to identify the goods or services of the seller or group of sellers and to differentiate them from that of their competitors as the case of Airtel Nigeria.

Performance: It is the study of phenomenal.

Production: This is an act of producing, making or creating something.

Management: This is the act and science of using available resources like man power, money, material and machines to achieve organizational goals.

Promotion: it is an activity done in order to increase the sales of production or services.

Organization: An organization is a combination of people or individual effort working together in pursuit of certain common purposes known as organizational goals.

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