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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Advertising is a tool which is used to communicate message to consumers, the general public and special people such as voters, and to the carriers of the message like televisions, newspapers and magazines known as the media, unlike personal selling, some sales promotion and public relation techniques, advertising is an impersonal means of communication. It is an impersonal promotion to groups and paid for identified sponsor.
It focuses upon groups of persons rather than upon individuals, this is because the sales volume cannot tailor advertising messages according to the peculiarities of individual consumer, but rather aim at the group for the rate of turn over moreover, the advertising feedback mechanism is not precise at personal selling, sales person are able to adopt their message to the unique needs interests and characteristics of individual prospects. An identified sponsor pays for advertising, each advertising message indicate who are the sponsors. However, this means of promotion is expensive unlike mere publicity which can be free.
Advertising has grown in recent times due to relative increase in productivity and consequent in the uncontrollable marketing environment where corresponding changes in technology, socio-cultural patterns economic ventures and legal advancement also take place. The target rate of return is important in order to determine the percentage of discount you want like use the volume oriented objective which include the rate and number of products that are sold for the product penetration in order to gain more consumers it is not enough to produce and simply anticipate what consumer would become aware of the product and your sales volume will increase especially in a developing country like Nigeria, the producer has to engage in promotional activities in order to asserts that advertising playas vital roles which include:
1. Making consumers to be aware of the existence of new products, services or ideas and the continued existence of older one. It will not be easy for member of the public to be aware of these without advertising.
It also informs and educates the people on how to make use of the product or services. It also informs people where to obtain goods and services. In essence advertising is among the various devices that designed to pull or push products through the market and the resultant effects of the se of advertising is an increase in the sales volume as compared to the past records in which advertising were not used. The advertising can be such as a form of promotional/communication mix, which greatly enhances the sales of product.
1.2 STATEMENT OF THE PROBLEM
The success of a production company depends mostly in the volume of sales it can make from its product. This in term depends on the extents to which it is able to make the public aware of the existence and quality of the products hence the necessity for advertisement inspire of the enormous cost of advertising.
Many organizations have no doubt spent so much money in order to generate public awareness on its product in the process of executing this enormous and unavailable function, the incidence of cost is transferred to the first consumers ho have to pay exorbitantly for the product. The main purpose of embarking on a research of this nature is to among other things determine the impact of advertising on the sakes volume of Indomie instant noodles.
1.3 OBJECTIVES OF THE STUDY
The purpose of the study is to investigate the impact of advertising on sales volume.
1. To examine effects of advertising a product with special reference to Nigeria Chicken Foods Industries Limited.
2. To determine the extents to which advertising helps differentiate products
3. To find out whether advertising leads to impulse purchase and increase the volume of sales
4. To determine how actual and potential buyers can be convinced of the superiority and benefit of the company product or service over chat of its competitors
1.4 SIGNIFICANCE OF THE STUDY
Without advertising consumers will be ignorant about the availability of product in our local shops, departmental stores and the manufacturers and sellers will not get adequate returns on their investment which may lead to slow down on national economy.
However, advertising should rather be viewed as improving the standard if living and that through advertising many of the accepted necessities of everyday life luxuries, yesterday and what many people regard today as completely received from this enjoyment may become acceptable condition of life an base for higher aspiration for tomorrow.
1.5 RESEARCH HYPOTHESIS
H0: That advertising does not have a positive impact on the sales volume of a company.
H1: That advertising has a positive impact on the sales volume of a company.
1.6 SCOPE OF THE STUDY
The scope of the study is focused on “The impact of advertising on the sale volume of Indomie instant noodles in Nigeria organization. The data and information required is restricted to the management and staff of Chicken Foods Industries Limited.
1.7 LIMITATION
During the course of this investigation the researcher encounter a lot of short coming in the design and execution of research which are:
1. Lack of adequate materials: The library which is suppose to be equipped with current and enough text books and journals lacks sufficient supply of all these.
2. Gathering of information from the various respondents this was also a constraining factor. This is due to the fact that most of them are located far apart.
3. Inaccessibility to some vital documents to retrieve some vital information from Indomie Instant Noodles Company (IINC).
1.8 DEFINITION OF TERMS
Identified Sponsor: They are individuals or companies solely recognized or sponsoring a programme.
Consumers: They are individuals that consume the product i.e. they are the buyers of Chicken Foods industries Limited makers of Indomie super packs, chicken junior etc.
Product: They are tangible items that you can see, feel, torch, simply pack, they are the end product obtained.
You either get what you want or your money back. T&C Apply
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