The Effect Of Advertising On A Company’s Product

Project and Seminar Material for Marketing

The Effect Of Advertising On A Company’s Product


The purpose of the project, Effect of Advertising on a Company’s Product. The aim of the project is to explicate more light on the usefulness of advertising on a company’s product. In the process of preparing this project resort has been made to primary source of data collection furthermore questionnaires were administered in the organizational approached for data from the study it was observed among others that the company’s under study does not use. In conclusion was recommended that advertising is important discovered that most company are rarely involved in a advertising done by the producing companies of such goods.

Chapter One


1.1 Background to the Study

Advertising can be define as a process of calling the attention of the public (audience) to a particular product service or an idea in promotion which encompassed the activities of preparing sales displays, trade fares, training seminars and working free sample, all these are for effective marketing advertising which is the oral or written words, illustration and picture that convey the intention and message of advertising.

Nigeria is branded as a developing nation by implication in all its areas of human endeavors which is yet to experience development which has not got to an appreciable level of economic process and sustainability. However, the commercial sector of Nigeria economy which is by all means of the most vast and varied characteristics which contributes in small way to the level of growth, of the economy and general development experienced so far.

Advertising strategies increases volume of sales of manufacturing consumers product, have been made important in growth of the commercial sector because of the growing sophistication of the mass media and general awareness of the population. Consumers goods manufactures and distribution alike are in the ocean of advertising, making all necessary efforts to sell their goods to the population perhaps this is why manufactures and distributors alike are found using such business strategies like loffery branding premium bonuses and contest sponsoring of programmes etc to popularize their product for regular patronages. Perhaps, attempt will be made to provide answer to this nagging question from the main area of this research.

1.2 Statement of the Problem

The effect of depression in economic activities on most companies is that of sales drop in some cases there are no sales for a long period of time which leads to closure or liquidation of such companies. Since consumers are either unaware of the company’s product offering or home developed a strong habitual behaviour on the use of a particular product thereby leading to the death of close substitute in the market place. The significance of advertising then becomes unavailable.

Therefore, the problem present on this work is to find out:

  1. How often is Advertising used as a marketing tool
  2. How advertising may attract marginal customers or consumers.
  3. How effective is advertising when used as a marketing strategy
  4. To access the level of satisfaction from the marketing activities being carried out in Nigeria.
  5. The role of advertising on the marketing product.

1.3 Research Question

  1. Is advertising seen as a tool for motivation of consumers /customers taste
  2. How frequent is advertising used as a marketing tool?
  3. Are companies in Nigeria using advertising as a marketing strategy?
  4. Does advertising facilitate the introduction of a new product in the market?

1.4 Objective of the Study

In consideration of the problem that have been identified the objective of the study include:

  1. To find out how advertising contributes to the sales performance of a companies
  2. To determine possible ways of inducing consumers through advertising.
  3. Advertising to create awareness of a new product and to enhance sales volume of the company.
  4. To examine the effectiveness of advertising on marketing activities and make recommendation where necessary.

1.5 Test of Hypotheses

  1. Advertising is not an important promotional strategy employed in creating awareness about a company product.
  2. That advertising budget does not affect the consumption patterns of the advertising product.
  3. That the message content have effect on a rational buyer’s decision.

1.6 Scope of the Study

This study is not an attempt to claim that advertising is the only marketing strategy that can be used by company to increase their sales volume. The study is only geared towards the successful application of sales promotion by consumer oriented organization as a way forward of achieving their companies goal and objectives. The study for reasons of limited resources and time constraints will be carried out using the staff of Coca-Cola Bottling company plc in Benin and consumer in Ugbowo Uniben campus as case study.

1.7 Significance of the Study

Advertising is very important to the development of business organization in particular and the general economic development of given nation. The role of advertising in an organization will enhance the effective management of business organization and better coordination and control by the organs of government responsible for organizing the commercial sector.

Advertising serves as short term incentive out for new product. New entrepreneur may actually use this to test market acceptance of the new product. The project is important to retail business organization especially an organization that want to increase their sales create awareness and persuade consumer to buy products and for regular patronage.

1.8 Limitation of the Study

As common with most research of this nature conducted in Nigeria time constraints and the lack of adequate finance resource and logistics posed some limitation to this research.

Respondent bias and lack of interest by the staff and some consumers who claimed to have always provide assistance and answer to questionnaire previously administered to them by various researchers without being provided with the result of such studies this pose a great deal of limitation worthy of mentioning here. In spite of the above short comings, the study was an eye opener to the benefit of advertising to consumer oriented organization.

1.9 Operational Definition of Terms


According to America Marketing Association (AMA) which says advertising is any paid form of non-personal representation and promotion of goods and services or ideas by identified sponsor.


A product is anything that can be offered to a market for attention and that might satisfy a want or a need.


The amount of money charge for a service or product.


The geographical environment through which the targeted customers are reached.


This involves communicating with the customers about the product been presented. It involves a complex communication system with various public such as the consumers and middlemen.

Sales Promotion:

These are marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness. These activities include displays shows exhibitions, demonstrations and other extra ordinary selling efforts.

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