CHAPTER ONE

Introduction

1.1 Background of Study

Business uses various promotional methods to communicate with individuals, groups, and organizations much like product, price, distribution and promotion make up the marketing mix. Promotion is one of the marking mix elements. Skinner (1990) defines promotion as the marking activities used to communicate to a target market, positive persuasive information about an organization, its products and its activities to directly or indirectly expedite changes.

Advertised product is standard and legitimate, because many people see advert for product, buyers know that purchasing the product will be publicly understood and accepted. Advertising permits the seller to repeat a message many times and it lets the buyer receive and compare the message to various competitors (Okigbo, 1996).

Skinner (1991) defines advertising as a paid form of non-personal communication about an organization, its products or its activities that are transmitted through a mass medium to a target audience. The mass medium could be Television, Radio’ Newspaper, Magazine, Direct mail, Sign on mass transit vehicles, Outdoor display, Handbills, Catalogues or Directories. Advertising gives markets the flexibility to reach an extremely large target audience or to focus on a small precisely defined segment of the population. Modern history of advertising came in the year 1450 when printing press was invented. Advertisers no longer had to produce copies of a sign by hand. The first printed advertisement in English language appeared in 1478. Whether you are walking to school, driving a car, listening to the radio or watching television, you can’t escape advertising. Advertising is unlike the direct communication between two people, which involves a give and take experience; it is a one-way exchange that is impersonal in format. To compensate, advertising must often make greater use of both rational emotional devices to have an effect.

If you market a product or a service, no matter what you sell, you are going to have to advertise; how successful you create your advertising directly affect your return on your investment. You can blanket your market or target your market; you can design usually, enticing to reach your market. No matter what the economy is like, you still

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need to advertise. Advertising therefore, is often thought of assuming to attach an image or some special consumers benefit to a brand, in an effort to distinguish it from its competitors in the mind of the consumer. To many people, advertising is a familiar term, but one which they don’t understand very well. Most often, they tend to think of it only as a selling technique; however it is more than that, often taking a variety of forms (Okigbo, 1996)

1.2 Statement of Problem

A touch of glamour and style could be added with the help of advertising agency and mass media through which the advertisement is passed through an agency and mass media through which the mass advertisement is passed on to the customer, but not before the advertising objective are determined by the advertiser. The advertising agency liaise between the firm who wishes to advertise its product or services and the media owners. The mass media are the vehicles, which advertisers use to pass the message to the prospective buyers. Without advertising of goods and services your products can never be known in the market and that could be harmful to the company and society at large. The research sought to answer the following research questions.

•   What are the consumer’s perceptions of advert on a competitive product?

•   What are the influences of advertising on purchasing decision of the consumer?.

•   In what can advertising be projected in other to achieve greater audience?

•   What are the methods that are inherent in the benefit and problems in advertising?

•    Why should the impact and effectiveness of advertising as one of the various promotional tools in product promotion be evaluated?

Therefore, the pursuits of the study include to examine the role of advertising on product promotion.

1.3 Objectives of the Study

The objectives of the study include:

i.                   To determine the effect of advertisement on brand turnover in the wine and spirit industry.

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ii.                 To know the extents to which advertisement has been able to reinforce confidence and loyalty of the consumer on brands in consolidated Breweries Plc.

iii.               To examine the extent to which advertisement has proven to be the best promotional tools employed by company in the wine and spirit industry.

iv.               To know the extent to which consumers of certain product perceive the other advert of similar products but different brand to their choice and their response to these product advert.

1.4      Research Questions

The following are the research questions:

a)                What effect does advertising have on the brand turn-over in the wine and spirit industry?

b)                To what extent has advertising been able to reinforce confidence and loyalty of the consumers on brands in Consolidated Breweries Plc?

c)                 To what extent has advertising proven to be the best promotional tool employed by company in the wine and spirit industry.

d)                To what extent do consumers of certain products perceive the other advert of similar products but different brand to their choice and their response to these products advert?

1.5      Formulation of Hypotheses

The statement of hypotheses of the variable determines the correlation between advertising and product promotion programme.

1.                 Ho: In spite of the rate at which news and improved product is created, advertising has not been successful in establishing brand loyalty.

Hi:      In spite of the rate at which new & improved product is created, advertising has been successful in establishing brand loyalty.

2.                 Ho:  Persuasive advertising does not and sales than informative advertising.

Hi:      Persuasive advertising aids sales than informative advertising.

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1.6     Significance of Study

Advertising is in odd position, its extreme protagonist claim it has extraordinary powers and it severest critics believe them. One can be bothered about how advertising fits the world in which we live? The answer to this is that advertising is business necessity, and our complex industrial and mercantile system cannot work without it.

For instance, hit on a new product ideal or a method for improving an existing product, money is raised to manufacturers and market the invention because the commercial success is not an absolute certainty, the manufacturers takes the product to market locally or regionally and the first thing to be done, is that advertise the product otherwise, how would people know about the product and where to buy it. Now manufacturers and advertisers use conventional media to promote the product before it becomes successful; the manufacturer wants to sell more of his goods to people. While all this is going on, another manufacturer has observed the success of the product and has decided to make similar item, to compete with the original reality of the situation is that as long as we have a competitive enterprise system in the country, advertising will always be necessary in business activities.

Most advertisement aim at promoting a particular brand or make of a product in a competitive market which often take an emotional instead of an informative tone; such advertising is generally known to work by persuasion.

Advertising permeates almost all facets of our everyday life. Whenever we see a newspaper, look at the magazine, listen to radio, watch television programme, open air mail, the chances are that we will be exposed to some form of advertising messages. These messages are called the advertisement and they are disseminated through one or more media sources e.g. newspaper, magazine, television, radio, billboards etc. The advertiser is a communicator, since he is communicating a message about a product or service to the consumer through clearly defined channels. This message could be informative, emotional, persuasive or a combination of all effectively reached at once, to inform them about the availability of a product or services. Since the objective of every company is to make as much as possible sales and profit, the long-run objective of advertising would be towards that goal by modifying the attitude and the product.

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The study is also justified when one looks at the prevailing condition under which consolidated Breweries Plc operate, condition of competitive product differentiate market information. Adulteration of its major brand still advertises its product.

1.7      Scope of the Study

The study conducted among graduates of marketing and business related courses and the Management Executive of Consolidated Breweries plc who will be the sample size. The study will also capture the products of consolidated Breweries Plc that have been advertised at one time or the other.

1.8      Limitation of the Study

The study is limited by both finance and time. Due to the above factors, the researcher could not go beyond the present study areas. Again, limited information and non co-operative attitude of some respondents did not quite bring out the defined best in this research. This, notwithstanding, however, the results of the findings were not affected.

1.9      Definition of Terms

Advertising: This is a non personal presentation of Visual or Oral message addressed to selected public (group of person) at a cost by an identified sponsor, for the purpose of informing and influencing them to buy a product or services or and to act or be involved to act favorably towards wears, persons, trademarks or institutional features. Promotion: This is any marketing effort made to inform or persuade actual or potential consumer of the merits of a given product or services for the purpose of inducing the customer either to consume or commence purchasing the firm’s product or services at some given period.