CHAPTER ONE

INTRODUCTION

1.1        Background to the Study

Advertising has become a powerful communication tool in passing message about the products and services to both customers and potential customers. When there is adequate awareness through advertising, high patronage will be achieved, which will result to an increase in sales volume, productivity and profit level of the organizations.

However, poor product communication to the final consumers could give competitors an edge in term of loyalty to brands, sales volume and high market share. Consequence of this has been the major setbacks for matured industries.

Contemporary strategic marketing practice calls for more than developing a good product or service, pricing it adequately, and making it available to target customers or clients. Organizations should also promote their products and services to present and potential customers and clients. Udel (1968) identified marketing promotions as the most important facet of marketing strategy leading to effectiveness. Advertising, an aspect of promotional strategy, has both an informative and persuasive role, and in this respect can alter customers'/clients' perceptions of a product or service. As Pickering (1976) suggests, advertising can increase brand loyalty, thereby decreasing price elasticity through increased differentiation. Bain (1956) posits that advertising can have a cumulative and long lasting effect on organisational and strategic performance.

 Akanbi and Adeyeye (2011) believe that advertising campaign cannot solely be responsible for recorded increase in sales. Other unrecognizable factors like higher income for potential customers, reduced problems of competitors, improved customer relation of distributors and retailers and other unnoticeable factors apart from the campaign may be responsible for the company’s improved sales (Akanbi and Adeyeye, 2011). Morden (1991) believes that advertising gives the knowledge about the product and create the idea in mind about it. Busari (2002) as cited in Adekoya (2011) says that advertisements can also be seen on the seats of grocery carts, on the wall of airport walkways, on the sides of buses, airplane and train. Advertisements are usually placed anywhere an audience can easily and/or frequently access visual and/or video. Akanbi and Adeyeye, (2011) discover that advertising as a subset of promotion mix has a significant effect on sales turnover. Adekoya (2011) finds that advertising influence consumer buying behavior, which means that it helps to increase sales turnover. It is on this premise that this research work wishes to examine the impact of advertising on organizational marketing turnover with special reference to consumer products of Paterson Zoconis Nigerian, Zaria branch.

1.2         Statement Of Problem

Often, when asked the non-price reason behind their choice for a particular brand of product over another, most consumers will readily shout “Quality”. However, one would accept this answer with a lot of ambivalence, given the fact that it is only on rare occasions that consumers would have what it takes to make an objective quality differentiation among alternative product brands. This category of consumers is highly informed and enlightened and their percentage is quite negligible in Nigeria.

Furthermore, quality status ascribed by consumers to certain product brands is not real but perceived. It is mostly a figment of their perception. It therefore follows that, those marketers who know how best to manipulate consumer perception and therefore better position their brand in the minds of the consumers will definitely emerge winners in the marketing warfare.

In the regulated consumer products industry in Nigeria, it may be expected that the issue of “better quality” should not arise. This is against the backdrop that the National Agency for Food and Drug Administration and Control (NAFDAC) has stipulated and is seriously enforcing both production and marketing standards for all producers of consumer products thereby making every brand of consumer products of equal purity and quality, yet most consumers of these products would readily pay a premium price or are price insensitive when it comes to the purchase of a particular brand. This gets one wondering, could it be that consumers in making choice are merely responding to the outcome of their perception which is a function of such attributes like brand name, mark, package, company-of-make etc. A point to note is the fact that most producers strongly believe that advertising also, has a very high influence on consumer’s choice (Ogbuji, 2008).

However, given the fact that many elements contribute to the buying decision of the consumers, one is not sure if these elements play equal role in influencing choice or if some play a higher role than others. This is the crux of the problem of this study. The study therefore, seeks to establish impacted advertising has on the promoting the sales of MTN products in Enugu Metropolis.

1.3  Research Question

This research intends to consider the question: 

1.      Does advertising have an impact on the sales promotion of the company products?

2.      To what extent does advertising affect the overall performance of the company products

1.4        Objectives of Study 

In a growing economy such as Nigeria, it is often very difficult to have a regular and consistent increase in the sales volume of a product because of the political and socio-economic instability in the country which directly affect the standard of living and the purchasing power of the consumers. 

This research is based on the drive to know the effect of advertising on the sales volume of MTN products in Enugu Metropolis, Nigeria and how this sales volume can keep the company going in business.

In order not to deviate from the original intention and motive, the following will therefore outline the objectives which this research work intends to achieve which are to: 

I.                 determine if advertising has any impact on the volume of sales for the consumer preference of a particular service or product.

II.              assess the extent to which an advertising programme reflects on the overall performance of the company’s products. 

III.           identify the major merits and demerits of advertising. 

In the light of the above, examining the impact of advertising on the promoting the sales products, using MTN, Enugu Metropolis as a case is therefore a significant undertaking.

1.5         Research Hypothesis 

For the purpose of this study, the hypothesis available is as stated;   

 Hypothesis 1 (Ho1): There is no significant relationship between advertising and organizational performance.

Hypothesis 2 (Ho2): There is no significant relationship between the extent of sales generated and advertising activities applied.

1.6         Significance Of The Study

An evaluation of the effectiveness of advertising on the promoting the sales products is of importance to any organization engaged in the production/promoting the sales products since it determines to a great extent the organization’s efficiency through increased sales.

The findings of this research will reveal the importance of advertising and is hoped to enhance better quality advertising programmes by MTN office and other companies involved in the business of marketing consumer products. 

Finally, the study will be significant to students and researchers since it will enlarge the existing literatures on the areas of effective advertising and sales.

1.7       Scope Of The Study

This study looks at the impact of tv advertising on the promoting the sales products of MTN product, Nigeria with focus on sales in Enugu branch and covers the period of  5years (2015 – 2019).   

1.8        Limitations Of The Study

This research study was constrained by several factors and these include inadequate finance, insufficient time, inadequate data and release of information. These factors may have somehow limited the outcome of this research work.

1.9       Definition Of Terms 

Advertising: This is any paid form of non-personal presentation of idea, goods or services by an identified sponsor. 

Advertising Agencies: These are usually independent business organizations comprised of creative and business personnel, who develop, prepare and place adverts for organizations so as to attract and influence consumers’ behaviour towards a product or service. 

Consumer: This is the person(s) to which the advertisement and products/services are directed.

Here they are also known as buyers of a company’s product. 

Outdoor Media: These cover the use of billboards, sign posts, posters, handbills, etc. in communicating the advertising message to the consumers. 

Electronic Media: These include radio, television, the internet, etc and can be either local or international. 

Market: This is usually the strategic location or place where the company’s consumer/buyers are situated or where they go to buy the products/services of their choice. The market place offers different products/services to different consumers. 

Producer: This is the organization or firm that provides a product or that delivers services for consumer consumption. 

Sales Volume: This is used to measure the amount, usually in cartoons/crates, etc, of the product being sold at a given point in time. This is commonly used as well with products but it could be as used within a service company. 

Transit Advertisement: A relatively minor volume of the advertisement placed in or on public buses, taxis, cars and other commercial vehicles.

Product: This can represent anything a consumer acquires or might acquire to meet a perceived need. The need not necessarily need to be satisfactory. Some product might not satisfy their needs. 

Sales: This is a process of selling something such as a product, ideas or services. It also covers the number of goods or services sold at a given point in time.

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