The Impact Of Advertising On Business Profitability
This topic is a study on the Impact of Advertising on Business Profitability (A case study of PZ Plc Lokoja Branch). It is aimed at highlighting the strategies for increasing profits of the business through advertising. Primary data for this study was obtained through the use of questionnaire and was tested using the chi-square test statistic test. The work was summarized followed by find which related the firms can increase the level of patronage of their product through activities poor response finance and time were some of the construction the researcher faced in the conduct of the research. However, this work has shown that advertising is a tool for increasing patronage.
Advertising over the years has been an issue of discourse proponent of the dividends of advertising are of the view that advertising still remains the only motivational tool that function as other. However, oppose of this discourse argue that advertising has no justification relative to its cost implication and the time and effort pt to it.
In view of the above, the relevance and importance of advertising outweigh that argument put in place by those who oppose to it abounds for the reason why firms cannot discard this pivot of organization communication and promotion.
This research work comes in time to relay the important analysis and evaluate the use of advertising by modern firm irrespective of the opinions of opposition it goes to analysis how advertising unlike other promotion tool could adopt and create to change in environment factors using these charges as an opportunity hence, resulting to an unending and justifiable decision upon it.
1.1 Historical Background of Pz Nigeria Plc
Perterson Zochanic (PZ) Nigeria Plc is one of the longest surviving manufacture in Nigeria, the company engages in the manufacturing and marketing of product in Nigeria on December 4th 1948 as PB Nicholas and Company Limited, the first branch was established at Caliber and by 1912, the Nigeria branch was opened at Ibadan, Oshogbo, Ilorin, Kano and Lokoja at present the company in the federation in compliance with the Nigeria enterprise promotion decree of 1372 40% of the companies equity capital was sold to Nigeria citizens and institution this percentage was increase to 605 in 1978.
Spread over 40,000 individuals and institutions, Nigeria shareholders. The balance of 405 is currently held by Peterson Zochinics to 60% in 1978 merchandize and specializing in children ware and toys finishing fabrics and electrical appliances.
The Deport Service Department
Offers warehousing and delivery to local manufacturers this enabling them to maintain better stocks at all major centres of supply to their distributors. Of recent, the company has ventured into the mass production of cosmetics pharmaceutical and personal product e.g. toiletries and provisions, the company is fully committed to background integration and self sufficiency and has made local sourcing and development of raw materials.
The Technical Department
Specializes, through its branches and stores of approved dealers throughout the country. In the sales and servicing of a wide range of technical products including refrigerators (LEC, Thermacool and INDES II), Sewing machines, (NECHI and SPART) and water heater.
1.2 Statement of the Problem
In recent time are rather interested and focus on other communication and promotion tool than advertising sale promotion and publicity are been embraced by firms even industrial producers who used advert to aid personal selling one beginning to view advertising as a tool for second chance.
This perception most often not across form the cost implication of advertising relative to its long term results in most cases sale promotion, publicity and personal selling, they agreed give customers and immediate appeal incentives to buy on the other hand advertising form its objective (remaining enforcing persuasive and information.
This research goes to view the inseparable union between advertising and other communication tools to establish the benefits accruing from advertising so as to have a re-think of this myopic judgement.
1.3 Objectives of the Study
Advertising even as cost effective as it may seem its advantages and success strives on the reports of firms cannot be over emphasized. Firms in recent times have related most of these success stories to the dividends of advertising.
This research seeks to evaluate and analyze the reasons and background of this remarkable success. Paramount it seek to establish reason upon facts why advertising should be embraced by firms who wish to join in those stories.
The objectives of this research work focus upon establishing the different objectives of advertising at each stage of a firm product.
Establishing the short run and long run effect of advertising to its relatives and distinct objectives covering firms undutiful reason to include advertising budget and campaign in their strategies plans. Bringing to lime-light in the perception of customer on advertising.
1.4 Statement of Hypothesis
- Ho: Firm cannot increase her level of customer patronage through advertising.
- Hi: Firm can increase her level of customer patronage through advertisin.
1.5 Significant of the Study
The results and finding of this research work is geared towards putting advertising at the highest rank among communication tools. However, this study is to create and bring to light the great effect of advertising on customers and its subsequent function in firms growth.
It goes to relate the relationships and role of advertising plays in line with other tools. Thus, this study brings to lime light uncompromising effect and positions of advertising to firms who must survival in a competitive market of changing environment factors.
1.6 Scope of the Study
Business enterprises like PZ company are found in major part of the country therefore, it is difficult to carry PZ companies in the country at large. However, to ensure a more comprehensive and detailed research of the subject, it is necessary to focus the research study on a single company that is PZ Nigeria Plc at the end of this study on a single company that is PZ Nigeria Plc at the end of this study the entire company and other related organization will be able to know the view of the customers as related to the subject matter and adopt the necessary suggestion.
1.7 Limitations of the Study
In the process of carrying out the important academic assignment, a lot of problems and limitations were encountered. Some are lack of time, financial constraints communication barrier etc.
1.8 Definition of Key Terms
It is any form of personal paid and promotion of goods and services by identified sponsors. Advertising is a stream of a firm, it is propelling power of business. Advertising is also the tonic which makes business blossom for virtually nothing except mint earn makes money without money and public relation.
Marketing communication are the means by which firms attempt and brand they sell in a sense marketing communication represent the ‘’role’’ of the company and it brands and are a means by which it can establish a dialogue and build relationship with consumer.
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 consumer or the trade.
Publicity is information about new items or product and services newly product of its sponsor, the product must be commercially significant
This is a regular of a product brand firm or an organization.
This is an individual group organization that enjoys the utility in the product.
Summary, Conclusion and Recommendation
In this study, our focus was on the impact of advertising on business profitability using PZ Plc Lokoja branch as a case study. The study specifically seeks to evaluate and analyze the reasons and background of this remarkable success, paramount it seek to establish reason upon facts why advertising should be embraced by firms who wish to join in those stories, the objectives of this research work focus upon establishing the different objectives of advertising at each stage of a firm product, establishing the short run and long run effect of advertising to its relatives and distinct objectives covering firms undutiful reason to include advertising budget and campaign in their strategies plans and bringing to lime-light in the perception of customer on advertising. A total of 30 responses were validated from the enrolled participants where all respondent are drawn from staff in PZ advertising department.
Based on the finding of this study, the following conclusions were made:
- Firm can increase her level of customer patronage through advertising.
- Advertising should be embraced by firms because it can drive business growth, amplify your small business marketing, helps firms reach the right audience and converts potential customers into paying customers.
Based on the responses obtained, the researcher proffers the following recommendations:
- Top management should be involved in the continuous evaluation and monitoring of advertising to ensure that the goals and objectives set are achieved and appropriate corrective actions are taken in the event of deficiencies.
- The company should harmonize all departments so as to realize the goals and objectives of advertising as this study has shown that advertising expenditure has a negative weak impact on the profitability of business organization.
- Attention should be focused on the how to effectively marshal the advertising campaign plan to meet the need of customer and not just as an annual activities that must be carry out by marketing department.
- Advertising department should consider the effect of factors such as location, product and services features and other factors on the choice of advertising media to be selected.
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