The Effect of Media Advertisement on Sales of Consumer Goods in Some Selected Marketing Firms in Lagos
Chapter One
OBJECTIVES OF THE STUDY
The main objective of this study is to examine the effect of Advertising campaigns on sales of consumer goods. To achieve this, the following specific objectives shall be our guide.
- To determine the impact of media advertising enhances consumer’s patronage of consumer goods.
- To determine whether media advertising activities influenced consumer buying behavior and increased consumption patterns.
- To determine whether media advertisement enhances consumer loyalty.
CHAPTER TWO
LITERATURE REVIEW
Introduction
Advertising on the internet began in the middle of the past decade, when the first banner advertisements were placed in commercial websites (Zeff & Aronson 1999). Although there are several forms of internet advertising, such as banners, interstitials and pop-up windows, banner ads are the most prevalent. Banner ads have dominated web advertising and become the standard advertising format on the internet (Cho et al. 2001).
Banner advertisements are rectangular displays on a web page that serve as a lead-in to the visitor to find out more by clicking on the banner (Raman & Leckenby 1998). Clicking on the banner takes the visitor from the current web page to the advertiser’s web page. In this manner, banner ads are used as vehicles to bring prospective customers to a site, offering an automated link to the advertiser (Briggs & Hollis 1997; Bellizzi 2000). Clickable banner ads are believed to be the first gateway to entering the world of interactive electronic markets (Shamdasani et al. 2001).
A widely used measure for evaluating the effectiveness of banner advertising is the click-through rate–that is, the proportion of viewers who click on a banner to visit the advertiser’s website (Hanson 2000). It should be noted, however, that the advertising industry also uses alternative, well-established measures of banner success, such as acquisitions, branding and image change. The attraction of the click-through variable lies in its behavioural nature, its measurability, and the fact that it indicates immediate interest (Briggs & Hollis 1997). It is noteworthy that the pricing of internet advertising is often based on click-through rates because advertisers demand results-oriented pricing and question the pricing model of traditional media, which is based on mere impressions; rather, they insist on paying for direct response results (Hofacker & Murphy 1998; Cho et al. 2001). It has been suggested that there is an explicit shift in online advertising strategy that favours deriving behavioural response from selected target audiences over providing exposure to many audience groups (Yoon & Kim 2001). These trends increase the importance of a banner’s ability to induce direct responses and emphasise the problem of effective creative design and media planning (Shamdasani et al. 2001).
Tracking direct response results on the internet is simple since response information is electronically captured and reported through the ad serving process as well as by tracking visitors’ activity once they have reached a site. In this manner, direct response data offer a great opportunity to empirically establish ad effect relationships (Broussard 2000).
However, click-though rates vary owing to various and largely unknown factors related to design, execution and context of banner campaigns. Therefore, knowing about such determinants can help to improve campaign performance.
In the early days of the internet, it was suggested that creative characteristics and, in particular, animation, cryptic messages, and cliches such as ‘click now’ or ‘free’ tend to increase response rates (Hofacker & Murphy 1998). Now, the effectiveness of such simplistic methods of improving response rates is questionable, since over time the internet audience has gained considerable experience of banner ads. Perhaps more importantly, the impact of other design and media factors of the banner campaign remains empirically unexplored.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This is the heart of the study. The design of this research is to investigate the effect media advertisement on consumer buying behaviour. This study was carried out by following some logical steps that enhances the attainment of the research goals and explains the methodology employed in this research study. Also, effort was made to explain the research design, the characteristics of the studied population, sampling design and procedures, data collection instrument, administration of the data collection instrument and procedures for analyzing collected data.
Research Design
Research design is a blueprint or strategy that enables the researcher identifies relevant approach to adopt in gathering and analyzing data. Research design is a subsumed of research methodology. Hence, research design is a “member” of the group of scientific study of methods of research. Various experts in research had recognized three such methods (Asika 2004). Thus, in this research study, the survey research design was adopted.
The survey research design was employed in order to infer information about the characteristics of the population of interest and a representative sample of the population.
Characteristics of a Population
A population is made up of all conceivable elements, subjects or observation relating to a particular phenomenon of interest to the researcher. (Asika, 2004). Population is also an aggregation of all elements that share a common characteristic or characteristics. Synonyms of population are universe, census, set e.t.c. (Asika, 2004).
However, this study was carried out among the employees of Rosabel Communications and Vigeo Ltd., which serves as a representative of selected marketing firms.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
INTRODUCTION
The whole gamut of data collected through the administered questionnaires was subjected to detail analysis in this chapter descriptive statistics was used i.e. an analysis based on the use of figures and percentages with brief interpretation in analyzing the questionnaires. Also, hypotheses earlier formulated in chapter one was tested using some statistical tools.
A total of 100 copies of questionnaire were distributed and 85 copies were returned back. These represents a questionnaire return rate of (85%) and were used for the analysis.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
This chapter attempts to gives a brief focus on seeing the extent of which the advertising campaign has impacted on sales performance of the organization. It is then important for some recommendation and suggestions for further studies.
SUMMARY OF FINDINGS
The summary of the chapters will highlight the main point of this study. In chapter one, emphasis was made that to be able to increases sales, an organization must advertise its products and services. The chapter also stresses the purpose of this research, statement of research problems and the hypothesis that were tested.
In chapter two, effort was made to review some literature and bring out a concise definition of advertising.
The chapter three of his study discusses the process of data collection and the instrument used for the analyzing them.
Chapter four contains the analysis of data and their interpretations. Three hypotheses were tested in this chapter.
The first hypothesis stated that advertising improves sales performance. From its testing it was deduced that advertising does increase sales. The second hypothesis looked into the relationship that exists between its improvement of potential passenger’s enlightenment and awareness. The result shows that advertising is essential for the improvement of enlightenment and awareness in potential passengers.
The third hypothesis aimed at seeing the effect of advertising in customer loyalty. From the result of the testing it was deduced that advertising leads to customer’s loyalty.
CONCLUSION
From the analysis of the data collected it was found that there is a close relationship needs for advertising and corresponding sales performance.
From this study however it was found that advertising is a distinct factor that can increase sales performance of employees in the organizations.
Advertising also creates enlightenment and awareness of the organization products and services in potential passengers advertising is thus a powerful tool that enhances customer loyalty. Advertising in this study was seen to be problematic but serves to create a competitive advantage over other competitors. In identifying the suitable type of advertising media and the most effective, most of the employees felt contended to recommend the broadcast media that is the television and the radio, through which major coverage of their target audience was observed.
RECOMMENDATIONS
Considering the findings of the analysis and the policies of Guniness Nigeria Plc., towards advertising campaign one can say that the Guniness really believes in the advertising of its products and services so as to have an improvement in sales performance. But since the Guniness Nigeria Plc. used more of the broadcast media (radio and television) as its types of media advertising despite its success in it’s reaching out to the organizations targeted audience. This type of advertsing media is capital intensive its signals are usually cluttered and they are always transient i.e aired within a short time. I will recommend to a great extent that the organization should intensify efforts into the adoption of some other type of advertising media. For example some print media and some below-the line advertising media. Which are less capital intensive and give full details of the products and services of the organization.
The marketing department has been said to be the determinant of advertising campaigns in the organization and should be made to follow the advertising policies.
In the light of the above recommendation, the company will be able to attain its vision which is to be “A world class company with the spirit of Africa” in the brewery industry.
SUGGESTION FOR FURTHER STUDIES
Although a lot of research work has been done on this field, but this study is distinct because it has revealed among other things that lack of advertising could lead to poor sales performance.
The studies should also endeavor to include and consider the task environment (i.e management, traveling agencies, customers and other environment factors) in assessing the sales performance of the organization.
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