Impact of Advertising on Sales Performance of a Brewery Company
CHAPTER ONE
Objectives of the study
The main objective of this research is to assess the impact of advertising on sales performance of Nigeria breweries plc, Enugu state.
Specifically, the study had the following objectives:
- To find out the extent to which informative advertising affects sales.
- To examine the relationship between reminder advertising and sales Performance.
- To determine on how persuasive advertising influences sales performance on Nigeria breweries plc.
CHAPTER TWO
LITERATURE REVIEW
This chapter provides an insight to readers about the theoretical view of the topic under study. In
Line with the objective of the study the chapter covers topic related to Informative, Persuasive
Reminder, advertising and sales performance. In addition, this chapter includes different issues Regarding advertising and the conceptual framework, the study is presented at the end of this chapter.
Conceptual review
The Concept of Advertising
The meaning of advertising cannot be definite as it means different things to different people depending on their perceptions of what it is. According to Kotler (2019), advertising is any non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertiser includes not only business firms but also museums, charitable organizations and government agencies that direct messages to target public. Advertising can also be defined as any paid non-personal communication about an organization, products, services or ideas by an identified sponsor (Bennet, 2016). Advertising is any paid message presented through various media, such as television, radio, magazine, newspapers or billboards by an identified source.
Scholars such as Sandage and Rotzoll (2002) have argued that advertising is a cost- effective way to disseminate messages, for instance to build brand preference for a product or to educate people about government policies or to avoid consumption of hard drugs. Companies embark upon advertising not only to sell their products, promote their goods, but also to create efficient defense to curtail competitors‟ moves. Frank (2015) saw advertising with the aim to persuade people to buy. Modern advertising is a product of the twentieth century; however, communication has been a part of the selling process ever since the exchange of goods between people started (Kazimi, 2015). Modern commercial advertising is the persuasive force that aims at changing customer’s behaviors. This is important because consumer wants and needs change as their economic positions improve and as they pass through different stages. It is therefore desirable for advertisers to assess the impact of advertisement on their products‟ performance from time to time (Kotler, 2019).
Shimp (2017) in corroborating Richards and Curran (2002) defined advertising as a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future. A broad variety of rational motives can be used as the source for advertising appeals such as convenience, economy, health, sensory benefits, quality, performance, comfort, reliability, durability, efficiency, efficacy etc; all of these are to stimulate the consumer to patronize a product (Duncan,2002).
According to Giles (1974) as cited in Adewale (2014) advertising is a non-personal communication directed at target audience through various media in order to present and promote products, services and ideas. Hancock and Holloway (2002) stated that advertising are those marketing activities other than personal selling, publicity and public relations that stimulate consumer purchasing and dealers’ effectiveness, such as displays, shows and exhibitions, demonstrations and various non-recurrent selling efforts not in ordinary routine. Wright (2019) defined advertising as a short-term incentive to the traders or consumers to induce the purchase of a product. Engel (2019) stated that advertising informs customers about a product and also sells the product.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter describes research design and methodology, Target population, sample size determination, method of data collection, ethical consideration, and data analysis. The study focus to assess the effect of advertising on sales performance of Nigeria breweries plc based on the opinion of the company’s marketing and sales department staffs.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND FINDINGS
Introduction
In this chapter, the researcher analyzed, interpreted and presented the data that was obtained from the findings. The said information was collected through questionnaires, interview, documentary source and observation and were coded, tallied, tabulated and converted into frequencies. The information is presented in figures, charts and discussed after its presentation as shown below.
CHAPTER FIVE
SUMMARY, CONCLUSIONS, RECOMMENDATIONS AND POLICY IMPLICATIONS
Introduction
This Chapter addresses the summary, conclusion and recommendation of the Study in relation to the objectives outlined in Chapter 1and its highlights the policy implication of the work.
Summary of findings
The role of advertising on the sales volume of a product is very important because often times consumers’ decisions as regards what to buy is motivated by what has been Seen heard of or practically used. Advertising helps in that; it carries the message everywhere to a scattered target Audience that the advertiser or producer could not have reached it at once so easily. It was gathered from the responses of the respondents who filled the questionnaire that the organization is unrelenting in its efforts to ensure effective advertising programs for their various services and products. In the mind of the consumers, the company was also using advertising strategies suitable for the company as well as the market in which it exists. More so, the findings reveal that the advertising position of a product or service is strong in the mind of the consumer in order to encourage repeated purchase of the product, so that the competitors will not have an edge over them. This also creates brand loyalty and product differentiation. According to various sources, the experience and state of mind of the person subjected to advertising may determine the impact that advertising has on him/her. In an effort to improve messaging and to gain the audience’s attention, advertisers create branding and moments that will resonate with target markets and motivate the audience to purchase the advertised product or service.
Conclusions
Nowadays, the advertising has become one of the main hurdles in the development of the Nigeria breweries plc. The organization has to spend it is a major portion of its revenue to serve the advertising expenses. . It is assumed that advertising can help the organizations to meet their objectives easily. Nigeria breweries plc has relied much on advertising to improve their sales and profitability. Moreover, the study had found out that the informative advertising had much influence on sales at Nigeria breweries plc. Not only informative advertising but also remainder and persuasive advertising have positive effect on the performance of sales. Reminder advertising has taken Nigeria breweries plc far in their industry and built up a strong relationship to the company sales, due to relent in their brand image build effort. Even though Nigeria breweries plc has been well performing in which the advertising rate increased concurrently with the revenue collection but no matter how successful the sales for accompany is and regardless of the edge the company has in the industry to sharpen the performance availability of informative advertising, building brand name towards advertising is a must and should be continuous very potential activity.
Recommendations
Based on the findings and the conclusion reached in this study, the following recommendations were made:
- The management should emphasize on advertising as an important and strategic policy aimed at increasing sales revenues of the firms while formulating creative advertising entrepreneurial marketing strategies relating to sales revenue and profitability promotion policy. This could be achieved through the commitment of more financial resources and the enhancement of advertisement budgets from time to time in tandem with economic realities.
- We recommended that there is the cogent need for the management to review their existing advertising policy on their products so that multiple approaches could be used in a cost effective manner to reach out to target consumers and by implication increase sales revenues for the firms.
- Other factors which are crucial to increase sales revenue and profitability such as sales promotion, personal selling and publicity etc. which are important should be considered while formulating promotion policy for the firms.
- Finally, management should use the right medium of advertising so that the message would reach the target consumers with the right products. By doing so, a large number of consumers would be reached. This could help to increase the patronage of the buyers leading to improving the sales revenue of the companies in Nigeria.
Policy implications
In order to find some policy implications for this study, Nigeria breweries plc should provide the Following: The Nigeria breweries plc should pay more attention to the advertising profile and particularly for its Items of expenditure. It should try to the best in implementing the advertising Expenditure to proper and productive programmers that will accommodate sound and Strong advertising policies for the betterment of the whole nation. Importantly, the Nigeria breweries plc should establish, maintain and manage a credible database. The database should provide Timely, accurate and comprehensive information to requisite the customers for informing, reminding and pursued to them. Moreover, the Nigeria breweries plc should establish a transparency, ethical and up to date advertising Message to cater for all types of customers so as o improve a sales more and more in the Organization. Finally, the Nigeria breweries plc should provide a policy framework that is credibly creating an environment that will induce customers’ confidence for both local and Foreign to purchase with the said company.
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