The Effect Of Advertising On Sales Volume In A Manufacturing Industry

Project and Seminar Material for Marketing

The Effect Of Advertising On Sales Volume In A Manufacturing Industry


Chapter One


1.0 Introduction

1.1 Background of the Study

The focus of this study is to investigate “the effect of advertising on sale volumes in a manufacturing industry” ( a case study of Zartech foods Maya)

The word advertising originated from Latin word advertise, which means to turn to. The dictionary meaning of the term is “to give public notice or to announce publicity”. Advertising may be defined as the process of buying sponsor-identifies media space or time in order to promote a product or an idea. The American marketing association, Chicago, has defined advertising as “any form of non-personal presentation or promotion of ideas, goods or services, by an identified sponsor. “what advertising is? Advertising is a mass communication of information intended to persuade buyers to buy products with a view to maximizing a company’s profits.

Advertisement entails more than mere information on what one has or what one is offering to the public in form of good and services, it is forms of marketing strategies which has done one of its functions a promotion sales (marketing mix) that is 4ps of marketing, which are production, price, place and promotion. It create awareness. In most cases, advertising tells the public the quality of the goods and services thereby making it possible to receive a level of trust.

Advertisement of goods already in existence makes them popular in the market.

Today in Nigeria, advertisement is granted to be very competitive in all aspect of human life and is given a separate department in large organizations. The advertising manager has the task of designing an alternatives and a very colourful advertising strategy that will arrest the attention of the public. The advertising manager chooses the mass media that will read the target market best. Due to the advertisement that Zartech foods out Gala, the general public tends to patronize Gala product because the trust is there that the one with the inscription “Zartech Gala is the one.

Through this advertisement, the general public is able to know that Zartech Gala is not the same as other’s Galas, which looks like Zartech Gala.

Sometimes, advertisement makes it possible for the public to know the names and address of manufactures of the goods and services so that anyone who has comment or want to make a special request can do so without much vigour.

The above and various other purpose which advertisement serves have made it an indispensable concept in the world of business management together with other three promotion tools (personal selling, publicity and sale promotion) a company can go places and sky remain its limit.


1.2 Statement of the Problem

Inspite of the tight definition of sales promotion as an essential means of creating awareness of the product existence and characteristics and also the positive, psychological associations that can enhance the buyer satisfaction which add to the real value of the company’s offering, little attention is being given to it by many business sectors in the country and they rarely promote their sales to the fullest. Many firms pay little attention to sales promotion since they feel they can sell their product with little or no promotional activities. Likewise, many firms could not afford the huge cost of the promotional programmes, would entail and despite the effects of sales promotion, there had been insufficient research and decision modeling devoted to it. In addition, there is an established negative perception of many firms as regards the cost of business promotion especially those whose benefits are not early and immediately reached. Also, adequate records of sales and promotional cost are always neglected and some sales promotion programmes are introduced at the wrong time, which will therefore hinder the level of sales and profitability of the firm and thereby render sales promotions less important in the community and the country as a whole.


1.3 Objective of the Study

The objectives of the study are;

  1. To examine the relationship between sales volume and promotion tools
  2. To investigate if consumers really benefit in sales promotion
  3. To examine if promotion tools influence consumer purchase behaviour
  4. To determine if advertising is the most effective promotion tool to increase sales volume
  5. To find out if Promotion tools have significant effect on sales volume
  6. To identify the implications of defective sales promotion in an organization
  7. To examine the main factors that affect sales promotion?

1.4 Research Hypotheses

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

  1. H0: there is no relationship between sales volume and promotion tools
    H1: there is relationship between sales volume and promotion tools
  2. H02: there are no main factors that affect sales promotion
    H2: there are main factors that affect sales promotion

1.5 Significance of the Study

It is a fact that sales promotion has a great impact in business organization. This study therefore intends to determine to a great extent the impact of sales promotion in business organization. Because of the important role of sales promotion, this study will therefore make a useful improvement upon the performance of business and how their level of sales and profitability can be improved. This project will be of immense value to future researcher who might intend to carry out a research on this particular topic. It will also help to highlight how individual who may set up their own business in future to carry out their business in an effective way.


1.6 Scope and Limitation of the Study

The scope of the study covers effect of advertising on sales volume in a manufacturing industry. The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.


1.7 Definition of Terms

Advertising:

Advertising is a marketing tactic involving paying for space to promote a product, service, or cause. The actual promotional messages are called advertisements, or ads for short. The goal of advertising is to reach people most likely to be willing to pay for a company’s products or services and entice them to buy.

Sale Volume:

The quantity or number of products sold or services provided by a company in a particular period of time: higher/lower/total sales volume(s) boost/increase sales volume sales volume grows/increases/falls Annual sales volume increased

Manufacturing Industry:

Manufacturing industry refers to those industries which involve in the manufacturing and processing of items and indulge in either creation of new commodities or in value addition.


1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five


Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain effect of advertising on sales volume in a manufacturing industry

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 challenges of effect of advertising on sales volume in a manufacturing industry


5.2 Summary

This study was on effect of advertising on sales volume in a manufacturing industry. seven objectives were raised which included: To examine the relationship between sales volume and promotion tools, to investigate if consumers really benefit in sales promotion, to examine if promotion tools influence consumer purchase behavior, to determine if advertising is the most effective promotion tool to increase sales volume, to find out if Promotion tools have significant effect on sales volume, to identify the implications of defective sales promotion in an organization, to examine the main factors that affect sales promotion. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of selected manufacturing industries in Abuja. The researcher used questionnaires as the instrument for the data collection.

Descriptive Survey research design was adopted for this study. A total of 133 respondents made up managers, human resource managers, supervisorsand junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies.


5.3 Conclusion

This research shows the effect of sales promotion dimensions on sales volume. The result shows that all sales promotion dimensions are independently and jointly predict sales volume. This implies that premiums, bonus, have significant effect on sales volume.


5.4 Recommendation

It is recommended the marketing managers to develop and formulate different advert that will please the needs of the consumers since your competitors have similar advertising messages. The marketing managers must be trained in order to have the current knowledge and skills to handle the adverts and also to ensure that product information is being emphasized so as to enlighten the customers.


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