Impact Of Advertising And Promotional Strategies On Organisation

Project and Seminar Material for Business Administration and Management BAM

Abstract

The broad objectives of the study is to examine the impact of advertising and sales promotional strategies in organizationg using Ibedmore Resources Limited in Uyo Metropolis as case study. The study adopted a survey research design and with the aid of convenient sampling techniques, thirty-six (36) participants who are staff in Ibedmore Resources Limited in Uyo Metropolis were selected for the study. Well structure questionnaire which provided answer to the research questions was issued to the participant. A total of 30 responses were received and validated for the study. Data was analyzed using simple percentage presented in frequencies and tables. Hypothesis was tested using Chi-Square statistical package for social science(SPSS).Findings of the study reveals that there is significant relationship between advertising and promotional strategies and organization product and services. More so, adverting and promotional strategies have enhance customers patronage in Ibedmore. The study therefore recommend that Ibedmore Resource limited should engage always in more promotional mix strategies and advertising of their products and services. More so, t sales promotion in Ibedmore Resource limited should be made creative to consumers especially during social adverts which will in turn would enhance and boost sales revenue.

Chapter One

1.0 Introduction

Advertising consist of all the activities in presenting to a group. A non personnel, oral or visual, openly sponsored message regarding the products, services or ideas this messages are spread through one or more media and is paid for by an identified sponsor. First there is a significant difference between advertising and advertisement.

Advertisement is the message itself while advertising is a powerful communication force and it is an essential marketing tool helping to sell goofs, services, images and idea through the channel of information and persuasion.

According to Kolter (1998) “advertising is any paid form of –non personnel presentation and promotion of idea, goods and services, by an identified sponsor” advertising is aim at selling goods, services, create demands, families the public with the use of the product, prepare the way for the salemen, create goodwill, introduce new style and customs.

Advertising is part of the marketing mix, but it can be use by an individual such as an entainer, or by non commercial organisation not engaged in marketing, such as hospital advertising for staff.

Advertising is one of the four major tools companies use to direct persuasive communication to target buyers and public. It consist of non-personnel forms of communication conducted through paid media under clear sponsorship. Although advertising is primarily a private enterprise marketing tools it is used in the countries of the world including socialists countries, it works not only on behalf of specific goods and services, but also assumes certain characteristic which are less directly connected to selling.

However, the potency of advertising as an economic catalysts in its persuasive and informative attributes awake (2000) state “that advertising can ever create market where no market exist, such is advertising. Its influence encourages consumers to any thing they do not need or into buying something not in their own interest.

According to Perreavult (1999) “Sales promotion refers to those promotion activities other than advertising, publicity and personal selling that stimulate interest, trial or purchase by final customers or other sin the channel, this can involve use of sample, sign, catalogs novelties and circulars.

According to kotler (2002) “Sales promotion, a key ingredient in marketing campaigns, consist of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular product or services by consumers or the trade.

Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy, sales promotion includes tools for consumer promotion (samples, cash refund offer, prices off, premiums, prizes, patronage, free trials warranties, in promotion, cross promotion, point-of purchase displays, and demonstrations trade promotion (prices off, advertising and display allowances, and free goods, and business and sales-force promotion (trade shows and convention. Contests for sales representatives and specifically advertising).

Sales promotion tools is difference in their specific objectives. A free sample stimulates consumer trial, whereas a free management advisory services aim at cementing a long-term relationship with a retailer.

1.2 Research Problem

The study examines the impact of advertising and promotional strategies in an organisation. The customers or consumers lack of adequate information about product, no effective communication of the usefulness of the product that can not satisfy consumer needs and wants. Nevertheless, the lever of consumer’s awareness is poor in Ibedmore Resources as a higher number of consumer lack knowledge and understanding about the actual message that may be communicated to them through advertising. This has influenced the consumers in purchasing product or goods. This is the problem.

1.3 Purpose of the Study

The objectives of the study are

To know whether advertising and promotional strategies really influence consumers of goods and services in Ibedmore Resources.
To find out how other variables have influenced consumer purchase of goods and services
To determine the best media of advertising for products of goods and services in Ibedmore Resources
To find out what should constitute a strict behaviour to the take-off promotional activity in Ibedmore Resources.

1.4 The Significance of the Study

The significance of the study are as follows:

The inherent problem of advertising and promotional strategies of goods and services will be identified for solution.
This study will also help student as well as other researcher in the field as a reference material
Lastly, this study will be beneficial to the educators and consumers on the adequate use of advertising and promotional strategies by the researcher.

1.5 Research Questions

What are the roles of advertising and promotional strategies in the marketing of organisation goods and services in Ibedmore Resources Ltd.
How does advertising and promotional strategies enhance customers patronage in Ibedmore
How does advertising and promotional strategies impact on its productivity and services
What affect Ibedmore competitive advantage.

1.6 Hypothesis

Ho: There is no significant relationship between advertising and promotional strategies and organisation products and services
Hi: There is significant relationship between advertising and promotional strategies and organisation product and services
Ho: Advertising and promotional strategies have not enhance customers patronage in Ibedmore.
Hi: Adverting and promotional strategies have enhance customers patronage in Ibedmore.

1.7 Objectives of the Study

To know the role advertising and promotional strategies in the marketing of organisational goods and services in Ibedmore Resources.
To know how advertising and promotional strategies enhance customers patronage in the organisation.
To know how advertising and promotional strategies impact on its productivity and services.

1.8 Delimitation / Scope of the Study

Delimitation/scope is mainly concerned with the impact of product advertising in achieving organisation goals. And the cope of the study is within Uyo metropolis of which Ibedmore Resources Limited was used as a case study. Other relevant issues are beyond the geographical coverage of the areas of study which may be logically.

Product advertising falls into three categories, pioneering, competitive reminder advertising. Pioneering advertising tries to develop selective demand for a product specific brand and reminder advertising tries the product name before the public. Perhaps, the sense of the product, the formal product the present the secondary attribute of the product which include the brand name, the packaging, quality and style of the production.

These reinforce the basic expectators of the product. The formal product has secondary benefit to a consumer apart from intrinsic benefit derived from the cove product, the formal has secondary or psychological benefit.

On the contrary, advertisement increases sales, makes mass production and consequently lower feasible in addition, it builds up an image for a product, these, adding a psychological attribute to a product, thereby increasing the satisfaction.

1.9 Definition of terms and Acronyms

Advertising:

Is the flow or process of communication to a clearly defined achieve information about the product in such as way that the audience will be encouraged to take action to buy.

Sales Promotion:

Sales promotion can be defined as a broad label that applies special kinds of sales accelerating activity not necessarily classed as advertising and direct selling.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

The broad objectives of the study is to examine the impact of advertising and sales promotional strategies in organization using Ibedmore Resources Limited in Uyo Metropolis as case study. The study discussed whether advertising and promotional strategies really influence consumers of goods and services in Ibedmore Resources. It find out how other variables have influenced consumer purchase of goods and services. It determined the best media of advertising for products of goods and services in Ibedmore Resources.

The study adopted a survey research design and with the aid of convenient sampling techniques, thirty-six (36) participants who are staff in Ibedmore Resources Limited in Uyo Metropolis were selected for the study. Well structure questionnaire which provided answer to the research questions was issued to the participant. A total of 30 responses were received and validated for the study. Data was analyzed using simple percentage presented in frequencies and tables. Hypothesis was tested using Chi-Square statistical package for social science(SPSS).

5.2 Conclusion

Promotional strategy is crucial for every business for it to survive the current economic turbulent and environmental challenges. On the hand Advertising is a system of communicating a sponsored message to a potential audience about the existence of a particular product, good or service. Thus, advertising communicates the features, quality and uses of the new product to the consumers. Advertising informs customers of the existence of a new product. Advertising informed customers because it is a form of non personal communication of information usually paid for and usually persuasive in nature about products, goods and services, or ideas by identified sponsors through various media. Sales promotion strategy that contributed to higher performance in the company are product giveaway, special sales, price off and branded promotional gift.

Findings of the study reveals that:

There is significant relationship between advertising and promotional strategies and organization product and services.
Adverting and promotional strategies have enhance customers patronage in Ibedmore.
It encourages off season buying size unit
It builds customers loyalty to brand
It is used to attract and retain customer hence long term relationships and growth in terms of productivity

5.3 Recommendation

Based on the responses obtained, the researcher proffers recommends that:

Ibedmore should engage always in more promotional mix strategies and advertising of their products and services.
That sales promotion should be made creative to consumers especially during social adverts which will in turn would enhance and boost sales revenue.
Business organization should see the need of evaluating every programme of advertising in order to know its contributions to the fulfillment of the firm’s objectives and if those adverts pull patronage to them as expected.
That organization should set up more and effective sales promotion department with experience staff with the view of developing more promotional strategies in line with the company’s objectives.
Sales promotions budget should always be adequate in organizations which would also give sales representatives and consumers alike performance to participate.
That there should be enhanced and computerized distribution system, this strategy create performance and proficiency on field managers and supervisors monitoring sales on consumers and complaint.

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