Impact of Advertising on the Sales and Consumption of Coca Cola
CHAPTER ONE
Objective of the study
The main objective of this study was the effect of advertising on sales volume of an organization, but for the successful completion of the study, the following sub-objectives were formulated:
- To examine the effect of advertizing on sales volume
- To investigate the relationship between advertizing and sales
- To investigate the role of advertizing in attaining profitability
- To investigate the cost of advertising to the organization
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
Adverting is only one element of the promotion mix, but it often considered prominent in the overall marketing mix design. Its high visibility and pervasiveness made it as an important social and encomia topic in Indian society.
Promotion may be defined as “the co-ordination of all seller initiated efforts to set up channels of information and persuasion to facilitate the scale of a good or service.” Promotion is most often intended to be a supporting component in a marketing mix. Promotion decision must be integrated and co-ordinate with the rest of the marketing mix, particularly product/brand decisions, so that it may effectively support an entire marketing mix strategy.
The promotion mix consists of four basic elements, they are:-
- Advertising
- Personal selling
- Sales promotion
- Publicity
(i)Advertising
It is the dissemination of information by non-personal means through paid media where the source is the sponsoring organization.
(ii)Personal selling
It is the dissemination of information by non-personal methods like face-to-face contacts between audience and employees of the sponsoring organization, the source of information is the sponsoring organization.
(iii) Sales promotion
It is the dissemination of information through a wide variety of activities other than personal selling, advertising and publicity which stimulate consumer purchasing and dealer effectiveness.
(iv) Publicity
It is the disseminating of information by personal or non-personal means and is not directly paid by the organization and the organization is not the source.
Origin and development of advertising
It has been wrongly assumed that the advertising function is of recent origin. Evidences suggest that the Romans practiced advertising; but the earliest indication of its use in this country dates back to the Middle Ages, when the use of the surname indicated a man’s occupation. The next stage in the evolution of advertising was the use of signs as a visual expression of the tradesman’s function and a means of locating the source of goods. This method is still in common use.
The seller in primitive times relied upon his loud voice to attract attention and inform consumers of the availability of his services. If there were many competitors, he relied upon his own personal magnetism to attract attention to his merchandise. Often it became necessary for him to resort to persuasion to pinpoint the advantages of his products. Thus, the seller was doing the complete promotion job himself. Development of retail stores, made the traders to be more concerned about attracting business. Informing customers of the availability of supplies was highly important. Some types of outside promotion were necessary. Signs on stores and in prominent places around the city and notices in printed matters were sometimes used.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter deals with the method used in collecting data required in carrying out this research work it explains the procedures that were followed and the instrument used in collecting data.
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
(i)Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment, the researcher has adopted the questionnaire method for this study.
(ii)Secondary source:
These are data from textbook Journal handset etc. they arise as by products of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information about the effect of advertising on sales volume of an organization in Nigeria 200 staff of Nigeria Bottling Company was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
DATA ANALYSIS
The data collected from the respondents were analyzed in tabular form with simple percentage for easy understanding.
A total of 133(one hundred and thirty three) questionnaires were distributed and 133 questionnaires were returned.
CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study the effect of advertising on sales volume of an organization.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the effect of advertizing on sales volume.
Summary
Advertising is a persuasive communication which attempted to change or reinforce one’s prior attitude and it is basically done not only to inform customers about products, rather it is a process which further influences and persuades customers to purchase. This study sought to establish the extent to which advertising affect the sales volume and the profitability of Nigeria bottling company. From the literature and data analyzed it is apparent that there exist a very strong relationship between advertizing and sales volume of the company, even though advertizing comes with a cost.
Conclusion
The study examined the effect of advertising on sales volume of an organization with emphasis on Nigeria Bottling Company From the data and information collected scientifically tested and analyzed in the course of the research the following conclusions can be deduced from the study that there is a significant relationship between marketing expenses and profitability of the firm. There is a significant relationship between turnover and marketing expenses of the firm. Also, there is a significant relationship between advertizing and profitability of the firm.
Recommendation
Based on the valid conclusions reached the following recommendations if implemented faithfully would assist in meeting the objectives set for the research. It will improve the advertising in Nigeria, such that; The advertising and personnel department should maintain an effective medium of advertising in consideration of cost and quality. There should proper advertising mechanism that will foster the reputation of the company as well as the products. Organizations should use the best medium of advertising that will create easy awareness of usage of products. Organization should ensure that ways of determining the profit generated via effective advertising.
Reference
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