Impacts Of Advertisement On Sales Performance

Impacts Of Advertisement On Sales Performance

Abstract

This study is on the impact of advertisement on sales performance. The total population for the study is 200 staff of Guinness Nigeria Plc. 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 front human resource managers, marketers, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

Chapter One

Introduction

1.1 Background of the Study

Advertising is any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor (Kotler and Armstrong, 2010). There are various forms of advertising like informative advertising, persuasive advertising, comparison advertising, and reminder advertising. Informative advertising is used to inform consumers about a new product, service or future or build primary demand. It describes available products and services, corrects false impressions and builds the image of the company, (Kotler, 2010).Advertising can be done through print media which includes news papers ,magazines ,brochures ,Audio media for example Radio, and visual media which includes billboards, and television (Kotler and Armstrong 2010). Sales performance describes the trend of collections in terms of revenue when comparing different periods (MC Cathy, 1994). The sales may be in form of offering products or services to consumers. A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything (Kotler and Armstrong, 2010).Sales volume is the core interest of every organization and is based on sales and profit .When volume goes up profits rises and management in organizations is made easier.

Historical Profile of Guinness Nigeria Plc

The firm Guinness Nigeria Plc came into existence in year 1950 with the sole aim of importing and distributing Guinness stout from Dublin for eventual sales in Nigeria. Due to the success of the product in the country it gave rise to a decision to establish a small brewery in the year 1962. The foundation stone of Guinness was laid at Ikeja on the 31st January 1962, by Arthur Benjamin Francis Guinness now the Earl of Irish to which titles he succeeded on his grandfather’s death until 1967 in active services during the 2nd world war. Guinness Nigeria is a subsidiary of the prestigious Diageo Plc of the United Kingdom. The brewery was the first outside of Ireland and Great Britain. Other breweries have been opened over time – Benin City brewery in 1974 and Ogba brewery in 1982. Guinness Nigeria produces the following brands – Foreign Extra Stout (1962), Guinness Extra Smooth (2005) Malta Guinness (1990), Harp Lager Beer (1974), Gordon’s Spark (2001), Smirnoff Ice (2006), Satzenbrau (1995).Guinness Nigeria Plc is a company that believes in enriching its communities. This it has achieved by embarking on laudable Corporate Social Responsibility projects in several communities in Nigeria. These projects are Water of Life initiative, which currently provides potable water to over 500,000 Nigerians spread across several rural communities, from Northern to Southern Nigeria; scholarship and Guinness Eye Hospitals in three cities in Nigeria.Nigerian Guinness is said to be twice as strong as Irish Guinness. In the 1800s, the Irish brewed the Guinness twice as strong, due to a fear of evaporation on the long voyage to Nigeria. However, the alcohol did not evaporate, and to this day Nigerians brew their Guinness twice as strong.Guinness Nigeria limited became a public company In 1965 and was one of the first companies to be quoted in Nigeria stock exchange with shares being offered to Nigerian shareholders, 1200 Nigerian held 20% of the equity. In 1971, a decision was taken to build a new Brewery at Benin at a cost 12million to brewery larger beer, this was the biggest brewery ever built in Nigeria. The company believes that investment in the training and development of its staff are wise investments. This has resulted in the establishment of training centers in Benin and Lagos (Ikeja). Following the ban on importation of methods barely the company has conducted research into the use of maize and sorghum in place of malt in production of the different brands of beverages. In the Nigerian market, Harp lager beer gained a remarkable success alongside Guinness stout, due to its good quality too hence received a wide patronage and now known as Guinness Nigeria PLC. It was merely up to a decade of the brewery and marketing of harp that its brand loyalists started shifting their interest to the other hand. The complaint raised by Harp patronizes for gradually changing preference was as a result of the carelessness on the part of the brewers to eradicate particles discovered in the final product and these were major set-backs suffered by Guinness Harp.In the year 1995 a new product line “satzenbrau” was in the market and it received attention in Lagos and west Ibadan to be precise for now. In 1990 another product line “Malta Guinness”, was also in the market and it has received attention all over the country and outside the country. It indeed received acceptance and as such requires effective management system, to guide against the future of all lines of product carried out by Guinness Nigeria Plc. (www.Guinnessnigeria.com).

1.2 Statement of the Problem

Guinness Nigeria Plc carries out frequent advertising of their products to increase their sales volume, through taking part in charitable funds in Nigeria and even sponsoring sports .It advertises using radio, television and newspapers.Despite its efforts in advertising regularly the sales of Guinness Nigeria Plc have not improved to the desired targets. The sales in Guinness Nigeria Plc for the past four years have been declining

1.3 Objective of the Study

The purpose of the study was to establish the impacts of advertising on sales performance.

1. To examine the forms of advertising in Guinness Nigeria Plc.
2. To establish the level of sales performance in Guinness Nigeria Plc
3. To establish the relationship between advertising and sales in Guinness Nigeria Plc

1.4 Research Hypotheses

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

1. H0: there are no forms of advertising in Guinness Nigeria Plc.
   H1: there are forms of advertising in Guinness Nigeria Plc.
2. H02: there is no relationship between advertising and sales in Guinness Nigeria Plc
   H2: there is relationship between advertising and sales in Guinness Nigeria Plc

1.5 Significance of the Study

The findings of the study were expected to benefit the following.

The findings of the study were used as references for future research work.The results of the study are of surmountable information when drawing measures which would in turn lead to capture of substantial market share.The study can be the source of reference on how to revive and adopt and also follow the adverts according to the dynamic markets.

1.6 Scope and Limitation of the Study

Content scope

The study covered advertising as the independent variable and sales performance as the dependant variable.

Geographical scope

The study was centered at the Guinness Nigeria Plc because it is the headquarter of the industry where marketing plan is carried out, and it has large sales volume

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 an audio or visual form of marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.

Sales Performance:

Sales Performance. In a highly competitive environment, having an agile sales organization is your strongest asset. No function of an organization feels the impact of a rapidly changing market place quicker than sales. As conditions change, sellers need to adapt, act proactively, respond quickly to customer needs, and be

1.8 Organization of the Study

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

1. 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.
2. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
3. Chapter three deals on the research design and methodology adopted in the study.
4. Chapter four concentrate on the data collection and analysis and presentation of finding.
5. 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 impacts of advertisement on sales performance. 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 advertisement on sales performance

5.2 Summary

This study was on impacts of advertisement on sales performance. Three objectives were raised which included:To examine the forms of advertising in Guinness Nigeria Plc, to establish the level of sales performance in Guinness Nigeria Plc, to establish the relationship between advertising and sales in Guinness Nigeria Plc. 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 Guinness Nigeria Plc. 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 front human resource managers,marketers, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

5.3 Conclusion

In a study of consumer views on advertising carried out in 1974 by the American Association of Advertising Agency, more than half of the respondents described advertising as a channel of information from the manufacturer to the consumers. Some said it was a manipulation, propaganda and a misleading marketing instrument. While advertising can be seen as necessary for economic growth, it is not without social costs, it is increasingly invading public spaces, such as schools, hospitals, buses, etc, which some critics have argued is a form of consumer exploitation. However, the same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non-commercial issues such as AIDs, political ideology, etc. The most effective media are often very expensive; the inexpensive media may not reach your target market, thereby making it difficult for most organizations to run adverts. According to Ferguson (1974). “advertising increase barriers to entry and reduce competition as measured by increase in monopoly profit”. Moreover, according to Nickels et al (1999) advertising not only helps to maintain superior stand in the industry and profit maximization, it provides information about a products or services and also gives consumers free television and radio programmes. Giles (1997) sees advertising as non-personal communication directed at a target audience through various media in order to present and promote products, services and ideas. The cost of media space, time and advertisement production is borne by the sponsor or sponsors. Advertising gives a clear image for any product or service of a company which is a great asset. A well structured and continuous advertising might stand as one of those strategies to sustain a distinct market position. It could also help to identify strong market competitors. Advertising has taken Starcomms Plc far in their industry and built up a strong image for the company but recently, due to relent in their advertising effort, some little problems have been identified there. No matter how successful a product or service is for a company and regardless of the edge the company has in the industry, advertising is a must and should be a continuous activity

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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