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Business enterprises are generally thought to play a crucial role in driving economic growth in both developing and developed countries (Beck, Kunt and Ross, 2003).Thus, it remains unequivocally crucial to understand the categories of contribution of businesses at a local level and its impact on overall economic growth. They are regarded as efficient and prolific job creators; their increased development accelerates the achievement of wider economic andsocio-economic objectives such as poverty alleviation. Today’s dynamic business environment is continuously changing because of globalization, regulatory changes, increasing intensity of competition, increasingly demanding customers, new information technology, and mergers and acquisitions (Wing et al., 2006). This has resulted in markets that can be characterized as increasingly turbulent and volatile and has caused many organizations to seek competitive capabilities that enable them to exceed customers‟ expectations and enhance market and financial performance.

Notwithstanding the recognition of the potential roles the businesses play, there exist a number of bottlenecks that affect their ability to realize their full potential. Observations have shown that there is a rapid turn-over of enterprises to an extent that for every 100 new enterprises starting in a year; 60 close down within the year and that of those that survive

(40%) are more than two years old and 66% less than six years old (Yesin, 2006). Lack of managerial skills, equipment and technology, regulatory issues, access to international markets, unfair competitiveness, etc are all factors that hamper their development but most distinctively financial constraints (Kotler, 2005). The role of finance has been viewed as a critical element for the development of SMEs. This issue stems from the initial capital which in most likely cases is sourced from informal savings and loan associations which are unpredictable; to broader financial obstacles that extend to efficient and effective marketing.

As will be evident in this study, businesses require marketing initiatives for their sustainability and growth in the ever-growing and competitive business environment. In particular, the question and relevance of advertising, an element of promotion will garner more examination. 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 stimulating sales.

Karen (2006) rightly saw adverting as only one element of the promotion mix, but it often considered prominent in the overall marketing mix design. Its high visibility and pervasiveness made it as an important social and encomia topic in the society. Firms are increasingly adopting advertising in order to reduce costs, increase market share and sales, and build solid customer relations. When competition is keen and the consumers are faced with brand choice in the market, it becomes imperative for the retailers to understand the major factors that can attract the attention of buyers to their outlets. These then form the basis for advertising in order to increase the sales and ultimately the performance of the outlet.

Advertising is any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor (Kotler and Armstrong, 2010). There are various forms of advertising like informative advertising, persuasive advertising, comparison advertising, and reminder advertising. Informative advertising is used to inform consumers about a new product, service or future or build primary demand. It describes available products and services, corrects false impressions and builds the image of the company, (Kotler, 2010).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).

Dunn et al. (2008) viewed advertising from its functional perspectives, hence they define it as a paid, non-personal communication through various media by business firms, non-profit organization, and individuals who are in some way identified in the advertising message and who hope to inform or persuade members of a particular audience. Advertising is the non-personal communication of marketing-related information in a target audience, usually paid for by in order to reach the specific objectives of the sponsor.

With the rapid advancement in the computer industry, many companies have made the Internet as part of their advertising media mix to take advantage of the online technologies (Calisir, 2003).The Internet has become a popular advertising platform because marketers found that the Internet possess greater flexibility and control over the advertising materials(Aghbor, 2011). Since the Internet can be used as an efficient marketing communication tool, both scholars and practitioners are interested in understanding how to take full advantage and maximizing the value of this communication medium(Rodgers and Thorson, 2000). He further said that Consumers have been largely exposed to the traditional advertising forms as the main media used by advertisers to provide information. However, over the years marketing strategies have evolved with technology leading to the internet creating unprecedented opportunities for digital marketers to connect with customers to create an immersive connected digital environment, influence and drive purchases, fuel new growth and create new market share.

Advertisements are a kind of persuasive communication that offers product information to every(2007) noted that the purpose of advertising is to create awareness of the advertised product and provide information that will assist the consumer to make purchase decision, the relevance of advertising as a promotional strategy, therefore, depends on its ability to influence consumer not only to purchase but to continue to repurchase and eventually develop-brand loyalty. In a complete study of marketing and promotional activities, advertising usually plays the most important role. Therefore, the advertising effect has become a key issue.

Newman (2004) pointed out in his study that advertising appeal is the theme of an advertisement. To make the audience receive a necessary message, advertisers have to put some driving power into the message. This driving power is appeal. Every advertising appeal represents an attraction, which arouses consumers’ desires.

What kind of advertising appeal design can attract consumers more easily and effectively? To highlight a commodity image, many companies invite famous stars to be their product spokespersons. It is easier for consumers to identify with celebrities. Expert spokespersons help present product differences more effectively by combining their rich professional knowledge with reasonably persuasive appeals. The right choice of advertising spokesman is a critical element in successful advertising. Does an advertising spokesperson influence consumers’ attitudes or enhance purchase intentions? Thus, advertising attitudes create a certain influential power on purchase intentions.

Advertising may influence consumers in many different ways, but the primary goal of advertising is to increase the probability that consumers exposed to an advertisement will behave or believe as the advertiser wishes (Stafford and Stafford, 2003). Thus, the ultimate objective of advertising strategies is to sell things persuasively and creatively. Advertising is used by commercial firms trying to sell products and services; by politicians and political interest groups to sell ideas or persuade voters by not-for-profit organizations to raise funds, solicit volunteers, or influence the actions of viewers; and by governments seeking to encourage or discourage particular activities, such a wearing seatbelts, participating in the census, or ceasing to smoke. The forms that advertising takes and the media in which advertisements appear are as varied as the advertisers themselves and the messages that they wish to deliver (Schmidt and Spreng 2000).

Advertising is an indicator of the 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. It is obvious that no business (private and public owned) can survive without advertising as it serves as a greater tool to make the prospective customers aware of the usefulness of the product and more so to bring them to the point of purchase. It is on this background the researcher sets to explore in this research work the impact of advertising on business growth and development in Taraba State


Advertising, as is evident from research- is an expensive endeavour in any business.. The advertising budget of an average business is as less as3% of their quarterly turnover (Steve McKee, 2010: Bloomberg Business week). This is as a result of the great role advertising plays in facilitating business growth and profitability. Thisstudy seeks to define and answer the question of how much the growth and development of businesses is affected by advertising or lack of it.

The objective of all businesses is to make profits and improve their organization overall performance by increasing its sales at remunerative prices. Advertising plays a vital role in marketing it serves multidimensional communication needs of society. The pursuit of advertising and innovation by the companies is to increase the market share and overall performance; however the extent to which advertising influences the performance of the companies raises speculation. It is as a result of the uncertainty on the extent to which advertising influences performance that the study seek to determine the influence of advertising on organizational performance of companies.

Businesses in Taraba State mostly face decline in productivity and profitability which have forced many of these businesses to liquidate. This can be attributed to lack of exposure to the usefulness of advertisement, the methods of advertising that suits the nature of their businesses as well as skilled marketing personnel to carry out effective advertising. This study therefore seeks to determine the impact of advertising on the business growth and development; does advertising influence the growth and development of businesses?


The general objective of this study was to explore the impact of advertising on business growth and development in Taraba State. Other specific objectives are:

1.      To find out the roles of advertising plays in facilitating business growth and development.

2.      To find out the factors hindering effective advertising for businesses in Taraba state.

3.      To discuss the different advertising strategies and methods for businesses in Taraba state.


1.      What are the roles of advertising in facilitating business growth and development?

2.      What are the factors hindering effective advertising for businesses in Taraba state?

3.      What are the different advertising strategies and methods for businesses in Taraba state?


: Advertising does not play any role in business growth and development.

: Lack of skilled advertising personnel is not a hindrance to effective advertising for businesses in Taraba state.

: The use of Radio is not the most frequently used advertising strategy for businesses in Taraba state.


The findings of the study will be of great value as it depicts the usage of advertisement by the business enterprises and its influence on growth and development. The findings of the study seeks to confirm that organizations try to fit in with the norm by pursuing advertising that validates them as part of the organizational field. It would provide a reference point as well as recommendations on the areas the management of the companies can improve on in order to be competitive in the market. It will also arm business enterprises with adequate knowledge about advertising methods effective for their line of trade.

The study would also be of benefit to prospective investors in any industry in Taraba state as it would provide an understanding of the influence that advertising have on the growth of the company. This research will be useful to those organizations that manufacture products branded and positioned to enhance market penetration and justify increased usage of the claims or look for alternative ways of enhancing consumer purchase decisions.

This study will benefit the practitioners and academicians both in the private and in public sector by having contributed to the existing body of knowledge in the area of advertising. Academicians may use findings for further research, while practitioners may apply lessons in planning and implementing future strategies in order to market the company.


The study is focused on Diamond bank, Jalingo. It is limited to the impact of advertising on business growth and development in Taraba state. Although the research has reached its aims, there were some unavoidable limitations which are:

Data constraint: this constraint is related to the delay in obtaining information, the high cost of materials and the inability of respondents to provide information at the relevant time.

Time constraint: This is a major constraint as the survey of the bank customers and employees needed to carry out a successful research is limited to time. However, the surveyed respondents should be taken as a fair representation of what is obtainable.

Financial constraint: this is another limitation which is cost-related. The financial resources needed for the conduct of the research was not so sufficient relating to the fact that the researcher is not an income earner. This posed a great limitation.


1.      Business: an organisation or economic system where goods and services are exchanged for monetary or non-monetary benefits.

2.      Advertising: This is any form of communication geared towards creating awareness to individuals about a particular product or organisation with the aim of bringing them to the point of purchase.

3.      Growth: This is an increase in size, weight, quantity, quality or content of a particular thing. It is a state of expansion.

4.      Marketing: The process of getting the product of a company to its end users from product development through the final sale and purchase support.

5.      Entrepreneur: This is an individual who can take an idea which may be a product or service, having the adequate skill to set it up, possesses the courage to take extreme risk in order to turn that concept into a reality.

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