Impact Of Advertising On Brands Selection In Major Supermarkets In Lagos Metropolis

Project and Seminar Material for Marketing

Impact Of Advertising On Brands Selection In Major Supermarkets In Lagos Metropolis


Abstract


This study was carried out to the impact of advertising on brands selection in major supermarkets in Lagos Metropolis. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprise of staff of selected supermarkets in Lagos Metropolis. In determining the sample size, the researcher conveniently selected 70 respondents and all were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables. The result of the findings reveals that the dominance of advertisement influences consumers brand selection. The study also revealed that brand recall advertisement influences consumers brand selection. it was further discovered that stimulation advertisement influences consumers brand selection, and the necessity of advertisement influences consumers brand selection. Therefore, it is of the researcher’s opinion that manufacturing and other forms of business organizations should seek the service of a consultant who will exposes them to other essentials of advertising and who will also bring to their notice the most effective form of advertising campaign and the most suitable and effective systems of execution. This is necessary because advertising is one sector of a business organization that sustains the products competitiveness and patronage in the market.


Chapter One


Introduction

1.1 Background of the Study

The essence of being in business by any business outfits is to produce for sales and profits. In order to remain in business an organization must generate enough sales from its products to cover operating costs and post reasonable profits(Tellis, 2004). For many organizations, sales estimate is the starting point in budgeting or profit planning. It is so because it must be determined, in most cases, before production units could be arrived at while production units will in turn affect material purchases(Burnett, 2011).

However, taking decision on sales is the most difficult tasks facing many business executives. This is because it is difficult to predict, estimate or determine with accuracy, potential customers’ demands as they are uncontrollable factors external to an organization(McHugh, 2000). Considering, therefore, the importance of sales on business survival and the connection between customers and sales, it is expedient for organizations to engage in programmes that can influence consumers’ decision to purchase its products. This is where advertising and brand management are relevant. Advertising is a subset of promotion mix which is one of the 4ps in the marketing mix i.e product, price, place and promotion(Nazir, 2001). As a promotional strategy, advertising serve as a major tool in creating product awareness and condition the mind of a potential consumer to take eventual purchase decision. Consumers must be made aware of the uses and advantages of a product via advertising. This allows a product to be made accessible to individuals who desire it, which meets the advertiser’s requirements and increases sales.

Advertising, according to Cohen, is a corporate activity that uses creative approaches to create compelling communication through mass media that promotes ideas, commodities, and services in a way that is compatible with the advertiser’s goal, customer happiness, and the growth of social and economic welfare. Advertising and other types of promotional messages are used to sell products and services as well as persuade and influence consumers to purchase a certain product or brand. Advertisement is used to build up the product’s strong image in consumer’s mind. Advertising has become a vital issue and Kotler pointed out that appeal of advertising is the main idea of an advertisement, and to get the attention of the audience(Kotler, et al, 2005).

Advertising influences consumer and his decision making in a number of ways. It not only educated him about his problems or needs, provides required information and assists him in comparing the various alternatives and arriving at final decision(Malik, 1999). As it is a cyclical process, it also has impact over the post purchase behavior of the consumer. Often, the consumers are either not aware of their needs or are confused about their problems. To them, advertising provides clues; therefore advertising provides the consumer motives to purchase the advertised product.


1.2 Statement of the Study

Nowadays, practitioners and marketing experts believe that advertising has an influence on consumers, both in enhancing the recognition, improve preferences, encourage interest to try and then realize that interest into an action, as well as build relationships between users with the brand used (Lavidge, 2011). However, such beliefs are not supported by empirical facts, so that the new players who want to advertise their products find it very difficult to decide between using advertising as a communication tool to consumers or not(Johnson, 2003). Similarly, players who are used to advertising do not have a clear calculation on investment that has been done through advertising. Doubts and obscurity arise because of the cost needed for ad are not little (Oladosu, 2009). These conditions are demanding strong accountability and a more mature calculation, given the current media fragmentation occurs so strong that advertising budget is more expensive per unit viewers. Regardless of these perceived challenges, organizations who adopted advertising continuously have customers patronize their brands. In the light of the aforementioned, this study seek to ascertain the impact of advertisement on brand selection.


1.3 Objectives of the Study

The overall aim of this study is to critically examine the impact of advertising on brand selection. Hence, the study will be channeled to the following specific objectives;

  1. Determine whether the dominance of advertisement influences consumers brand selection.
  2. Determine whether brand recall advertisement influences consumers brand selection.
  3. Determine whether stimulation advertisement influences consumers brand selection.
  4. Determine whether necessity of advertisement influences consumers brand selection.

1.4 Research Question

This investigation will be guided by the following question;

  1. Does the dominance of advertisement influences consumers brand selection?
  2. Does brand recall advertisement influence consumers brand selection?
  3. Does stimulation advertisement influence consumers brand selection?
  4. Does the necessity of advertisement influence consumers brand selection?

1.5 Significance of the Study

The research is important for marketers to continuously understand consumer attitudes, by knowing the type of information on the brand owned by the consumer, the ability of consumer groups in information processing, and the ownership of motivation to process the information.

The need for prudent management of financial resources in an organization is of great concern. It’s amazing however; that at anytime an organization is going through some hard times financially, first thing that runs into the mind of the management staff is a cut-down on advertisement and promotion budget or eliminate them entirely as a step to ameliorate their predicament. This study therefore, has been designed in such a way as to aid organizational managers realize that measurement is very important in advertising. Therefore, before decisions are taken on whether to eliminate advertisement or cut-down the budgets, efforts must be made towards ascertaining the impact of such advertisement, hence; a call for checks and balances.

Additionally, subsequent researchers will use it as literature review. This means that, other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regards to the impact of advertising on brands selection in major supermarkets.


1.6 Scope of the Study

This study is structured to generally examine the impact of advertising on brands selection in major supermarkets in Lagos metropolis, with specific focus on necessity of advertisement, stimulation advertisement, brand recall advertisement, and dominance of advertisement. The respondents for this study will be obtained from selected supermarkets in Lagos Metropolis.


1.7 Limitation of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.


1.8 Definition of Terms

Advertising:

This is defined by the America Marketing Association as any paid form of non-personal presentation or promotion of ideas, good and services by an identified sponsor.

Advertisement:

This is simple the message of copy. The brand bill itself for example is an advertising copy.

Brand:

Is a name, symbol, sign or logo or a combination of items intended to identify the goods or services of the seller or group of sellers and to differentiate them from that of their competitors.

Brand Selection:

Brand selection is an important part of any retail merchandise mix. The importance of a brand to a retailer depends of course on the category of retailer and its market niche, among other things.


Chapter Five


Summary, Conclusion and Recommendation

5.1 Summary

In this study, our focus was on the impact of advertising on brands selection in major supermarkets in Lagos Metropolis. The study is was specifically carried out to determine whether the dominance of advertisement influences consumers brand selection, determine whether brand recall advertisement influences consumers brand selection, determine whether stimulation advertisement influences consumers brand selection, and determine whether necessity of advertisement influences consumers brand selection.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 70 responses were validated from the enrolled participants where all respondent were all staff of selected supermarkets in Lagos Metropolis.


5.2 Conclusion

Based on the findings of this study, the researcher concluded that;

  1. The dominance of advertisement influences consumers brand selection.
  2. Brand recall advertisement influences consumers brand selection.
  3. Stimulation advertisement influences consumers brand selection.
  4. The necessity of advertisement influences consumers brand selection.

5.3 Recommendations

Based on the responses obtained, the researcher proffers the following recommendations:

  1. Organizations should consider promotional schemes for retaining their customers, as consumers are ready to move on to other brands.
  2. Organizations should hire psychologists to help them with other decisions to make the consumer buy more.
  3. It is of the researcher’s opinion that manufacturing and other forms of business organizations should seek the service of a consultant who will exposes them to other essentials of advertising and who will also bring to their notice the most effective form of advertising campaign and the most suitable and effective systems of execution.

This is necessary because advertising is one sector of a business organization that sustains the products competitiveness and patronage in the market


Impact Of Advertising On Brands Selection In Major Supermarkets In Lagos Metropolis


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