IMPACT OF ADVERTISING IN SALES VOLUME OF ORGANIZATIONS: A CASE STUDY OF PAVIC PAINTS LIMITED UYO

IMPACT OF ADVERTISING IN SALES VOLUME OF ORGANIZATIONS: A CASE STUDY OF PAVIC PAINTS LIMITED UYO

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ABSTRACT

The major purpose of this research project was to show how advertisement is effective tool in sale volume in Pavic Paint Limited. Information came through the administration of questionnaire and secondary sources such as related books, magazines, internet and government official etc. Eighty six copies of questionnaire were distributed but sixty (60) responses were fit for statistical analysis. The data collected was analyzed using simple percentage and chi-square statistic. Findings revealed that there is significant relationship between advertising and sales volume. Based on the above findings, it is recommended that sponsorship of programmes on television should be carried out as a means of promoting the corporate image of the company.


CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

In an attempt to achieve overall goal of an organization, the organization must effectively manage the elements of the marketing mix. Thus, the marketing mix used must be such that will best contribute to the achievement of the organization. The success of her products in the market place in terms of sales and profits would therefore depend on the effectiveness of the marketing mix adopted.

In this respect, effective communication to the potential consumers, creating awareness as to the existence of the products and benefits to be derived from its usage are of vital importance.      

       Advertising plays a leading role in an organization’s success because it helps to inform and persuade prospective consumers. Organizations use advertisements to alter or change attitude and behaviour of their consumers for effective sales turnover. Organizations must do more than make good products. They must inform consumers about the products’ benefit and carefully position products in consumer minds. To do this they must skillfully use the mass-promotion tool of advertising, which is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.

       Advertising, as a marketing activity plays a very important role to businesses, consumers and governments. Advertising is undertaken in order to build a farvourable  response from targeted markets. Usually the meeting of the consumer and the brand is through advertising, sale is only an aspect of the expected response. Each individual has his own perception about either a company or its product, government agencies or other individuals. Advertising, therefore helps to shape such perceptions by creating awareness, providing information about the institution or individual or products, arousing interest, producing favourable attitudes and helping the buyer to make a purchase of either the idea about an individual or institution, or a product.

       Advertising performs also the three promotional functions of informing, persuading and reminding. The first job of advertising whatever is the objective of such an organization is to inform prospects about the goods and services, their uses and benefits. Apart from new products any amendments to existing products should be communicated to potential buyers. After informing, they must be persuaded to buy the products by explaining to them that purchase will lead to satisfaction of their needs. It is also the role of advertising to remind present and potential buyers of the availability of the product in the market. Marketers should strive to create a favoruable position for their products since their products are competing with other company’s products. Advertising communication adds value to a product, and influences the perception of consumers about products. Hence, some products are viewed or described as elegant, stylish, masculine, power-plus or prestigious. The importance of this is enormous. First, it results in the sale of the product at a given price. Secondly, the advertising helps to reduce the impact of price on the buyer’s decision. Thirdly, the problem of cognitive dissonance is either completely eliminated or reduced considerably.

       Advertising plays another major role in governance. It is used both as informative and persuasive tools for the promotion of government plans. Government positions in most cases are made known to the masses through mass promotion, which includes advertising.

       Advertising can play a role in both consumer awareness and knowledge about brand attributes or benefits. The consumer is learning more, such learning plays a role in product enquire, trial, purchase, or loyalty. A basic fact of life in marketing is that a product cannot sell itself and there cannot be high sales turnover made without the effectiveness of advertising. Even a product that is designed to meet buyer’s desires at an affordable price will not be successful unless adequate information about its availability and benefits are provided.

1.2  STATEMENT OF THE PROBLEM

       The success of an organization’s product depends on the effectiveness of its marketing mix. Consumers have every right to be adequately informed about any product of their choice in order for the organization to make maximum profit on sales of its product. Advertising is a process of setting an idea about a brand into a consumer’s mind, an idea which will move him or her towards purchases.           

       The idea must move the consumer rationally or emotionally. This may generate a new belief or feeling, or it may reinforce an existing one. The start of a relationship, the initial impression created by an advertisement can be the deciding factor in projecting a favorable attitude towards a brand, subsequent purchasing will confirm the impression.

       The extent to which a consumer interprets an advertisement determines the effectiveness of advertising. An advertisement must be received and interpreted before it can be acted upon. Organizations use advertisement to alter or change attitude and behaviour of the consumers for patronage. The problem statement of this study is what is the relationship between advertising and volume of sales in pavic paints limited?

       Considering the social setup or the background of the country as well as individual attitude towards advertising, an organization needs to know whether the benefits of advertising are commensurate with the cost. When a business prices a product, it will need to know how much the product costs to produce, the anticipated sales of the product and how much profit that business would like to make selling the product. Considering these factors allow the business to calculate a reasonable and realistic price for the product.

       An organization must also determine whether an advertisement justifies its purpose of being placed in a newspaper, television or radio. And the organization has to determine whether increase in sales volume is really dependent on advertising. The two variables in this research work are:-

       Independent variables    -      Advertising

       Dependent variables      -      sales volume                     

1.3  OBJECTIVES OF THE STUDY

       The objective of the study are as follows:-

1.          To examine the impact of advertising on the sales volume of Pavic Paints Ltd.

2.          To examine how advertising is used to achieve the goals of a company.

3.          To assess whether advertisements are effective in terms of change in consumer attitude in increase in sales volume.

4.          To assess whether there is an increase in sales volume as a result of constant advertising.

5.          To identify the types of advertisement used by the company

1.4  RESEARCH QUESTIONS

The following research questions will be asked

1.          Does Pavic Paints Company engage in advertising?

2.          What are the types of advertising media used by Pavic Paint Ltd?

3.          What are the advertising strategies employed by the company?

4.          What are the advertising objectives of Pavic Paints Ltd?

5.          Do these advertising strategies really increase sales volume?

1.5  RESEARCH HYPOTHESIS        

Ho:  Increase in the volume of sales of pavic paints is not influenced by the level of advertising.

Ho:  Advertising strategies of “pavic paints” have no contribution to its sales success.

1.6  SCOPE AND LIMITATIONS OF THE STUDY

       The study of this work will examined the relationship between effective advertisement and the sales volume, and the impact of government policies on the sales. The study will be focused on the impact of advertising on sales volume due to lack of money, physical capacity, limited time and resources. Pavic paints was chosen as a case study and the questionnaire studies may be limited by the instrument itself, unwillingness of the respondent to provide information and their truthfulness in answering questions.

1.7  DEFINITION OF TERMS

Advertising – Any paid form of non-personal and promotion of ideal, goods, or services by an identified sponsor.

Sales – The total amount of goods sold by a company.

Sponsor – One that pays for advertisement, it could be individual, organization, institution, large manufacturing organization etc. 

Marketing mix – The set of controllable tactical marketing tools- products, price, place and promotion that the firm blends to produce the response it wants in the target market.

Advertising specialty – useful article imprinted with an advertisers name, given as a gift to consumers.

Target markets – A set of buyers sharing common needs or characteristics that the company decides to serves.

Advertiser – An individual or organization engaged in advertising business or activities.

Target consumers – An individuals or organization who are in need of various products or services. They could be as households, families, students and producing organizations.

Product – Is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, events, persons, places, organizations, and ideas.    

1.8  ORGANIZATION OF THE STUDY

       This input is organized into five (5) major chapters. Chapter one is introduction, statement of the problem, objectives of the study, research questions, research hypothesis, scope and limitations of the study, organizations of the study and definitions of terms.

       Chapter two deals with the review of relevant literature.

Chapter three comprises of design of the study.

Chapter four concentrates on the presentation, analysis and interpretation of all the relevant data collected for the research purpose while, chapter five deals with the summary, conclusion and recommendations.



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