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This research work is on the survey on the impact of advertising on select hotels profitability in Eket Urban. Among the objectives of this study is to find out whether the advertisement on hotel services and products actually leads to profit increase. This problem is necessary in view of the fact that some people do believe that hotel could go on with their businesses with or without advertising. Responds were randomly selected from Eket metropolis and the data they provided were analyze with simple percentage and the chi-square statistics techniques. The results obtained indicated that effective advertising is a necessary stimulant of profit maximization in hotel business. It also shows that the awareness level of hotel advertising by the public is badly low. The study was able to show that television remains the most potent medium of hotel advertising, closely following by radio. Finally, the results of the findings were analyzed with some recommendations proffered. The conclusion was also drawn based on the results of the findings.
1.1 Background to the Study
Previous to the era of industrial revolution, the pattern and method of salesmanship was both crude and cumbersome chiefly because the gap between the productive and consumption sectors of society was small and manageable.
However, with the present complication and sophistication among both the producers and consumers occasion by high level economic and technological developments, business are now reshaping, refocusing, repositioning and redirecting their operations and marketing strategies in order to face the obvious challenges posed by modern day marketing.
Every business concern has a major objective for which it was established but whatever may be the goal, the overriding force undoubtedly remains profit maximization. To accomplish the afforested, these businesses make conscious efforts to find out what their customers want, providing them, creating the needed awareness on the availability of these goods and service and offering them at the right place, time and cost. It is by so doing that such a business can assuredly claim greater percentage of the market share and at the center of the activities are the pivot, the stimulant, the propeller, and the sole of business called advertising.
Advertising, as one of the strongest promotional tools, remains a strong force in the hands of business entities. A popular saying has it that if you do not blow your trumpet, nobody is going to do that for you, only when you say, “Here I am” that people will actually know where you are. Advertising close this and more for organization especially the hotel business. It creates awareness and assists them in making the right choices. The following definitions and opinions by some authorities and schools of thought on the meaning and roles of advertising will perhaps give more insight into the concept.
According to Stanton (1982) advertising consists of all the activities in presenting to a group of non-personal oral or visual openly sponsored message regular regarding a product, services or idea. Jones (1955: 14) sees it this way. Advertising was probably coined in England in the early days of the print to turn the attention of voters. The American marketing Association (AMA) defies it as a paid form of non-personal presentation and promotion of ideas and services by an identified sponsor.
The Advertising age (1932) (an Ad- magazine) has a summer of the views of some professionals. In the field thus: Advertising is the printed, written, spoken or pictured representation of a person, product service or movement, openly sponsored by the advertiser and at his expense of the purpose of the influencing sales, use vote or endorsement.
Finally starch (1966: 2) defines as the paid form of mass communication designed to influence people to favour a product in order to induce them to buy it. From the foregoing definition and views, it can be seen that advertising has the purpose of:
v Creating awareness on the availability of a product users, vote, person idea etc,
v Educating the target user on the constituents of what is being advertised,
v Offering other service such as how to use the products, where to get it, and what the cost is etc.
v Inducing sales, and
v Ultimately of increasing and maximizing profit thereby enhancing the revenue base of the business which in this case is. These are only a tip of what advertising is capable of doing for hotel business as it does in other business operators.
1.2 Statement of Problem
Hoteliers market their goods and services to public in order to reap profit for future survival and growth of the business. Advertising as one of the variables of marketing communication mix helps in actualizing not only marketing objectives but also the overall corporate objectives of the organization.
It is however sad to note that some hotels especially in Eket urban hardly utilize or avail themselves of the unique opportunities offered by modern advertising media sum the television. It is therefore intention of this study to critically review the likely benefits hotel business will make in terms of profit maximization by availing themselves and using the communication.
1.3 Objectives of the Study
The objectives of this study is to:
1. Determined the general impact of hotel advertisements on the Eket residents
2. Determine the extent of consumer awareness of hotel advertising in Eket urban,
3. Examine the method and strategies of the advertisement of the media,
4. Identify what consumer patronage of these hotels are as a result of advertising, and
5. Make recommendations in line with our observation.
1.4 Research Questions
Does the impact of advertising lead to increase in profitability of hotel business? Are customers and the general public aware of hotel advertisement? To what extent do these adverts influence customer patronage or table hotel? What medium of advertising is most effective for hotel advertising?
1.5 Formulation of Hypothesis
H o: The extent of customer awareness of hotel advertisement is satisfactory
H1: The extent of customer awareness of hotel advertising is unsatisfactory
Ho: Advertising is responsible for profit maximization by hotels
H1: Advertising is not responsible for profit maximization by hotels
1.6 Significant of the Study
The study will be of importance to advertisers, hotel businesses, and the general public and communication students. It is anticipated that results from this study will help to evaluate and identify better ways of making hotel advertising and business operations more effective. It will additionally add to the existing body of knowledge of advertising and other related fields.
1.7 Delimitation of the Study
The study will cover only major hotels in Eket urban. Hotels outside the zone will not be studied so as to make for more realistic investigation.
1.8 Limitations of the Study
Time and money constraints constituted a serious burden in the wheel of progress of this study. How I-illiteracy, level and the culture of secrecy nearly hampered the success of the work. With all sense of humility the researcher lacked the requisite expert knowledge on data analysis, the high scientific equipment such as the computer which could have aided and speeded up the effectiveness analysis of collected data. Such aspects of the investigation were thus done manually.
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