THE IMPACT OF ADVERTISING ON PERFORMANCE: A CASE STUDY OF NASCO MARKETING COMPANY, JOS
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TABLE OF CONTENTS
Table of contents
Chapter one: General introduction
- Back ground to the study
- Statement of problem
- Objective of the study
- Significance of the study
- Scope and limitation of the study
- Definition of terms used
- Historical background of the case study
Chapter two: literature review
- Research design
- Population of the study
- Sample size
- Questionnaire design and assumption
- Data collection instrument
Data presentation, analysis and interpretation
- Data presentation
- Data analysis
- Data interpretation
Summary, conclusion and recommendations
1.1 BACKGROUND OF THE STUDY
The impact of advertising in enhancing sales volume is the ultimate goal of advertising in order to increase the firm’s profitability. Advertising is the mass paid communication designed to impart information about an organization, brand or services to develop attitudes and awareness and to induce action beneficial to the advertiser generally through the sale or promotion of the product. Advertising is one of the major tools companies use to direct persuasive communication to target buyers and the public. It consists of non-personal forms of communication conducted through paid media under clear sponsorship. The spender included not any commercial firms but museums, fund raisers and various social-action organization seeking to advertise their causes to various target public (Kotler, 2009).
According to John Hobson (1958), advertising is a form of communication, the special nature advertising of this is that it is paid for by some interest party who stands to benefit from the communication of the message. More so, getting your name out to the public is the key to raising your sales volume. Pike (2008) asserts that marketers are now faced with escalating media costs, often in tandem with declining advertising budget, thus leading them to increased interest in below-the-line promotional opportunities. According to Kotler (2009), marketing is totally about customers, hence the core mission of marketers is to provide the solution to customers’ needs and wants by identifying and meeting them. There are four main factors on which marketing have been built up; these are four elements of the marketing mix: place, product, price and promotion. Advertising, as a component of the promotional mix further enhance creation of customers’ awareness towards organizational products and then the need to patronize such products if it meets the needs, expectation and satisfaction of the consumers (Belch & Belch, 2003).
According to Morden (1991), who is of the opinion that advertising is used to establish a basic awareness of the product or service in the mind of the potential customer and to build up knowledge about it. Kotler (2002) sees advertising as one of the four major tools companies use to direct persuasive communications to target buyers and public noting that it consists of non-personal forms of communication conducted through paid media under clear sponsorship. According to Kotler (2002), the purpose of advertising is to enhance prospects’ responses to the organization and its offering.
The contribution of sales marketing in the form of advertising in promoting product and service awareness among consumers cannot be over-stressed. Advertisement provides a platform for firms to create awareness about their products or services and how consumers can make the best out of such products. Olusegun (2006) opined that all advertisement must be honest and follow ethical standards and must not be perceived by the target consumer as lie; otherwise it can batter the image of a company and hinder it from building successful brands. Thus, for advertising to be effective, it must have an appeal, attract attention, command interest, inspire conviction and must provoke interest (Frank, 2005). In the same vein, Okeji (2008) posited that a good advert message should not be boring but rather reflect the lifecycle of the product. He concluded that advertising must be exposed in the right medium as this will enable organization to reach the right people with the right message. Against this backdrop of controversy, it became very pertinent to investigate the extent to which the advertising costs of manufacturing firms in Nigeria affect their sales revenue and profits.
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 newspapers ,magazines ,brochures ,Audio media for example Radio, and visual media which includes billboards, and television (Kotler and Armstrong 2010). Consequently, this study was conducted with the intent of establishing the extent to which the advertising of company’s products affect their sales revenue and performance.
1.2 STATEMENT OF THE PROBLEMS
Severally, some individuals find it so difficult to started business, especially in environment like Jos in some years ago, due to the lack of capital and some companies find it difficult to start with little capital they have, as the companies could not easily produce then future nearest, as a result of lack of capital, the companies now decide to go back source of their financial. Since such company is not a new business, people in the rural area may not be aware of their existence in which case there is no market for their product, and there is many competitive from that competing with them. In order to solve this problem, they go on aggressive marketing strategy like product, business advertising, sponsoring essays, donation handbook, organization lectures, seminars, in order to beat the competitive product. Despite the above problem Nasco Marketing Company in Jos has been able to survive till today and is one of the leading business in morels with many branches in the federation. This study therefore hopes to fill the gaps on the impact of advertising on performance in Nasco Marketing Company, Jos Nigeria.
1.3 OBJECTIVES OF THE STUDY
The main objective of the study is to determine the impact of advertising on sales performance in Nasco Marketing Company, Jos. The researcher intend to outline the following sub-objectives in the course of the study;
- To examine the critical role advertisement plays in an organization and to the consumers of Nasco Company products in Jos.
- To evaluate the effect of the advertising costs on the net profit of Nasco Marketing Company in Jos.
- To investigate the effects of advertisement on the patronage of new products of Nasco Marketing Company, Jos.
- To examine how customers are informed of new products by Nasco Marketing Company in Jos.
- To examine the effect of advertising on the ability of Nasco Marketing Company in Jos to educate customers of the benefits of new products
- To ascertain how advertising could change people’s culture to patronize new products.
1.4 Research Questions
In order to achieve the above objectives, the following research questions are proposed:
- What type of advertisement is used by your company?
- Does advertisement contributes to the achievement of organization’s goals?
- Does advertisement enhance the sales volume of the company?
- Through which media does Nasco Marketing Company advertise their product?
- Can Nasco Marketing Company, Jos survive without advertisement?
1.5 SIGNIFICANCE OF THE STUDY
It is expected that the findings in the project world have both the theoretical and practical usage of students of business administration, Nasco Marketing Company, Jos and the general public by helping them in the following ways.
1. Educate managers on effective advertisement process.
2. Advise marketing managers on various advertisement strategies that can be used to achieve their aims and objectives.
3. Produce awareness, persuade, influenced and remind the actual potential buyers about their products.
4. Enlightening marketing managers in such a way as to gain acceptance and approval of their plans.
1.6 SCOPE AND LIMITATION OF THE STUDY
Due to the broad nature or wideness of the topic “The impact of advertising on performance” the following areas have been focused for study. The researcher has chosen Nasco Marketing Company in Jos as a case study and looked into the impact of advertising in their marketing system which leads to their excellent performance and profitability of the company.
There are many problem encountered by the researcher in producing this research as learners mostly in the area of getting advertising textbook which may be use in carrying out this research; financial constant is another big problem to considered faced by the researcher in the producing of the project. The researcher also face some organization policy, because some of staff disclose some secret about the organization, additionally time factor, researcher face some conflicting programmes, such as project works and academic works, and attitude of the response when you get to the vital secret of the company, and the language barrier, some people will first ask about your tribe before answer your questions. Finally is lack of finance as a student.
1.7 HISTORICAL BACKGROUND OF NASCO COMPANY, JOS
NASCO Company started operations in 1963 with the establishment of a jute bag factory in the central city of Jos, Nigeria – the very first in sub-Saharan Africa. This was in response to the desire of the founding fathers of Nigeria on the eve of independence to meet the challenges for the effective bagging, storage and export of the large agricultural yields prevalent in the country. Investors from Europe, Asia and the Middle East were invited by the Federal Government to participate in the economic development of the new nation. An investment agreement was accordingly stipulated, paving the way for the formation of a company whose ambitious purpose was the development of industrial, agricultural, real estate and marine areas. Since then NASCO has been building a company whose values are deeply held – a commitment to people and communities, to quality and customer service, and to success in the marketplace and reinvestment in the business.
Successive generations have continued to grow the company and adapt the business as markets evolved, demonstrating the entrepreneurial flair and strength of purpose that is required for a business to survive half a century. Over this period, NASCO has achieved many milestones and contributed significantly to Nigeria’s rich agricultural and industrial heritage. With faith in the local economy, many new factories were established in diverse areas from food and household products to packaging materials and industrial chemicals. Today NASCO has become renowned for the quality of its products and for its ability to match product to demand.
1.8 DEFINITION OF RELEVANT TERMS
Some of the terms used in this study are as follows:
Media:- is a broadcasting instrument which make other people aware of a particular thing as a result of broadcasting , such as radio, television, space, magazine, newspaper etc.
Effectiveness: In management the term effectiveness means the ability to achieve the set goals and objectives.
Objectives: An objective may be defined as the end point which a firm directs its effort or resources. It represents specific results or resources. It represents specific results or targets to be achieved within a period of time.
Strategies: This could be defined as the method used in achieving goals and objectives at case.
Target: This is the set goals which an organization wants to achieve.
Persuade: This is the method used by the organization to manipulate the buyers to buy their products by influencing their decisions.
Sales volume: This is the total in a given period of time.
Innovation: In management, innovation means adopting new ideas in order to reach a set objectives.
Profitability: This is the monetary gain as result of total sales in an organization.
Advertising Agency: They are the organization whose business is to advertise for other companies. They fix and make the order through media houses or by using any other promotional tools the client and the agent have agreed up on.
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