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IMPACT OF ADVERTISING ON SALES PERFORMANCE OF A BREWERY COMPANY

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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, 2020). 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, 2020). Advertising can be done through print media which includes newspapers, magazines, brochures, Audio media for example Radio, and visual media which includes billboards, and television (Kotler and Armstrong 2020).

Advertising is a tool of marketing for communicating ideas and information about goods and services to an identified group, which employs paid space or time in the media or uses another communication vehicle to carry its message. It openly identifies the advertiser and his relationship to the sales effort (Wanoff, 2017)

 

Advertising is also any paid form of non-personal communication about an organisation, product, or ideas by an identified sponsor (George and Michael, 2017), 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, 2020).

Sales performance describes the trend of collections in terms of revenue when comparing different periods (MC Cathy, 2012). 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, 2020). 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.

This research work however, centers on the impact of advertising on the sales performance of a manufacturing company. This work will shed light on how advertising can really affect a consumer’s buying decisions in a growing economy like that of Nigeria and how successful advertising can keep businesses going even in the midst a tough competition.  

More so, advertising as a promotional tool also tends to remind, reassure and influence the decisions of the consumers because an advertisement itself enlightens, educates, and persuades consumers on their acceptability of the product offering. Advertisement in such a media as print (newspaper, magazines, billboards, flyers) or broadcast (radio, television) typically consist of pictures, headlines, information about the product and occasionally a response coupon. Broadcast advertisement on the other hand consists of an audio or video narrative that can range from 15 seconds spots to longer segments known as infomercials, which generally last 30 to 60 minutes. (Busari 2012).

Advertisements can also be seen on the seats of grocery carts, on the wall of airport walkways, on the sides of buses, airplane and train. Advertisements are usually placed anywhere an audience can easily and/or frequently an access visual and/or video. (Busari 2012)

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor (Kotler and Armstrong, 2020). 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, 2020). Advertising can be done through print media which includes newspapers ,magazines ,brochures ,Audio media for example Radio, and visual media which includes billboards, and television (Kotler and Armstrong 2020).

1.2 Statement of the problem

Marketing problems often have far reached effects on any company and if neglected can cause a great threat to the continued existence of the company, especially in the area of advertising as an aspect of corporate communication (Giles 2015).

Nigeria breweries plc carries frequent advertising of its products with the objective of increasing its sales performance through taking part in the charitable funds in Nigeria and sponsoring sports. The company also advertises using, Radio, Television, and Newspapers. Despite its effort of advertising regularly, according to the preliminary interview with the marketing staff of Nigeria breweries plc had no formal assessment of the effect of advertising on sales performance. In addition sales of the company was not as targeted, there are some questions whether advertising affects sales performance. Furthermore, the marketing environment is becoming very competitive, many companies in the brewery industry also advertise to attract customers, today’s customers are more Knowledgeable, and this is more challenging for Nigeria breweries plc. This work deals with informative, persuasive and reminder as the knowledge gap on effective application of advertising to a products or services offered by the company. Withal, most of these researchers carried their works out outside Enugu State, thus there is location gap in relation with this work.

Another problem facing some firms is how to design an advert strategy that will yield increase in sales.

1.3 Objectives of the study

The main objective of this research is to assess the impact of advertising on sales performance of Nigeria Breweries plc, Enugu state.

Specifically, the study had the following objectives:

  1. To find out the extent to which informative advertising affects sales.
  2. To examine the relationship between reminder advertising and sales Performance.
  3. To determine how persuasive advertising influences sales performance on Nigeria breweries plc.

1.4 Research Questions

The study was guided by the following questions:

  1. To what extent does informative advertising affect sales?
  2. What is the relationship between reminder advertising and sales Performance?
  3. How does persuasive advertising influence sales Performance in Nigeria breweries plc, Enugu?

1.5 Significance of the Study

The study expects to yield a number of desirable benefits, the most essential of which is contribution to existing knowledge.

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