THE EFFECT OF MEDIA ADVERTISEMENT ON SALES OF CONSUMER GOODS IN SOME SELECTED MARKETING FIRMS IN LAGOS
TABLE OF CONTENTS
1.1 Background to the Study
1.2 Statement of Research Problem
1.3 Objectives of the Study
1.4 Research Questions
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Limitations of the Study
1.9 Operational Definitions
1.10 Plan of the Study
2.1 Sales Promotion
2.2 Objectives of Sales Promotion
2.3 Marketing Strategies
2.4 Approaches to Marketing Strategy
2.5 Marketing Strategies
2.6 The Marketing Mix Base Approach
2.7 Product Strategy
2.8 Promotional Strategy
2.9 Pricing Strategy
2.10 Product Life Cycle Base Approach
2.11 The Market Share Base Approach
2.12 Alternative Marketing Strategies towards Market Segments
2.13 Factors for Selecting a Marketing Strategy
2.13 Market Share
2.14 Reasons to Increase Market Share
2.15 Ways to Increase Market Share
2.16 Target Market Strategy
2.17 Summaries of Empirical Findings on the Significance of Marketing Strategies
3.2 Research Design
3.3 Restatement of Research Questions
3.4 Restatement of Hypotheses
3.5 Characteristics Of A Population
3.6 Sampling Design
3.7 Data Collection Instruments
3.8 Administration Of Data Collection Tool
3.9 Validity of the Research Instrument
3.10 Procedure for Analysing Collected Data
3.11 Limitations of the Research Methodology
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.2 Respondents Characteristics and Classification
4.3 Data Presentation And Analysis According To Research Questions
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings
5.4 Suggestion for Further Studies
1.1 BACKGROUND TO THE STUDY
Demographics and product attributes are the mostly widely used variables for segmenting the market, with demographic categories used to match segments with media profiles, mainly because most media described their audiences by demographics. Although recent research has identified new bases for segmentation, including lifestyles, benefits, etc., profiling of target audiences by the media has changed very little. Media reach and pricing continue to be based on the demographic characteristics of the targets, and thus demographics continue to play an influential role. However, although the demographic profile of consumers in many markets has changed considerably over time, research into demographic factors appears to have waned in favor of more 'exotic' variables (Kauhanen, 2005).
Kavassalis, , Ntina, Dimitris, Evangelos, Gregory, and Antonis (2003), in everyday experiences, customers are exposed to a variety of advertising appeals. These appeals are aimed at influencing the customer's attitude towards a wide range of products and services. Through television, radio, and the Internet, they reach a large number of individuals who represent a wide range of cultural and ethnic backgrounds. But to what extent these appeals are able to influence consumers belonging to different demographic profiles is to be seen. Investigation of the literature identified some interesting imbalances. The majority of studies investigating demographic influences in advertising were found to focus on gender, and only a few considered other demographic variables.
The need for increase in sales performance is one that is common and important to all business organizations. For a business to achieve this, its target market must be aware of the organizations products or services. This can only be achieved when an organization advertises (Leppäniemi and Heikki, 2005).
In this era of changing and ever so stiff competitive business environment it is generally believe that a business organization that doesn’t advertise is like a man winking in a dark room filled with other people. Only he knows what he is doing but others do not.
Organizations today face similar challenges – enhance price performance, increase satisfaction and retention, improve productivity and efficiency, while streamlining business process and driving bottom-line growth; all these are key to superior performance delivery.
The task of delivering outstanding performance has become more complex. Increasing, it involves the design of management structure and control systems that drive strategic change.
Capitalize on new opportunities and minimize risk-all without hindering the company’s flexibility and creativity. No longer is it enough for top executive with responsibility for performance and competitive positioning to explain past results. Now they must understand how to communicate, implement and control corporate and business-unit strategy with metric/dashboard to show result delivery and accomplishments in performance.
Organization whether big or small should therefore involve themselves in one form of Advertising or the other in order to enhance sales performance.
1.2 STATEMENT OF RESEARCH PROBLEM
It has always been a problem to ascertain whether or not advertising has any correlation or bearing with corporate performance. Also, most people wonder if the amount spent or budgeted on advertisement annually does directly translate to all that is required to say a company has performed.
The focus here will be to have series of corporate performance analysis in terms of top-line and bottom-line growth i.e Revenue and Profit matched against Advertisement cost over several years (minimum of 5 years). This could also be drilled down on various product brand performance during the same period as highlighted above. Corporate performance is vital to the organization continual existence.
Technological advancement in the economy has led to change of the taste of some passengers. The problem then arises of the need to enlighten the targeted market and make them aware of the current and advanced state of the products and services.
This study is thus an attempt to assess the impact or effect of media advertisement on sales of consumer goods.
1.3 OBJECTIVES OF THE STUDY
The main objectives of this study it to examine the effect of Advertising campaign on sales of consumer goods. To achieve this, the following specific objectives shall be our guide.
· To determine the impact of media advertising enhances consumer’s patronage of consumer’s goods.
· To determine whether media advertising activities influenced consumer buying behaviour and increase consumption pattern.
· To determine whether media advertisement enhances consumer’s loyalty.
1.4 RESEARCH QUESTIONS
In order to explore the objectives of the study these research questions were developed.
o Does media advertisement have effect on sales of consumer’s goods?
o To what extent does media advertisement enhances consumer’s patronage?
o Does media advertisementenhance customer loyalty?
The following hypothesis will be tested in the course of this study.
o There is no significant relationship between media advertisement and sales of consumer’s goods.
o Media advertisement does not enhance consumer’s patronage.
o There is no significant relationship between media advertising and customer loyalty.
1.6 SIGNIFICANCE OF THE STUDY
The study concentrates on the effect of media advertisement on the sales consumer goods in Lagos. The significance of the study are numerous, thus, some of the significance are discussed below:
The study provides knowledge to enables organizations understand the effectiveness of its media advertisement and allow users to participate in a rapidly changing world in which work and other activities are increasingly transformed and reshaping the workforce.
The study, it is hoped provides a searchlight to researchers as to the extent of the use of media advertisement in the marketing industry. The study examines the evolving relationship between media advert and marketing development with a view of highlighting the possible future trends that will occur in the marketing industry. Thus, the findings of this study contribute in no small measure to the existing literatures on the subject area. It also enhances further research that will go beyond the scope of this study.
This study proffers ways and means of building an effective media advertisement strategy as well as its role as a tool in enhancing organizational productivity in the marketing industry and the findings of the study will be used by the members of the society at large. They include investors, suppliers, policy/decision makers, distributors and other companies in the country. They are all interested on the quality and stability of media advert to make quality decision.
On the whole, it is hoped that this study and its findings will help is general, as a useful guide and aid in formulating and developing a good advertising campaign for a desired market. Besides, some of the suggested solution and recommendations will be found useful as they open up the nature of the markets complex and dynamics state.
1.7 SCOPE OF THE STUDY
The study only covers the effect of media advertisement on sales of consumer goods in some selected marketing firms in Lagos. This project study considers advertising experience on sales performance and how this has affected the corporate performance of the company.
1.8 LIMITATIONS OF THE STUDY
Every research study or under taking has its own limitation or shortcomings. There is no exemption in the case of this study. Thus, the level of accuracy in this study is proportional to the availability of information that the respondents gave. Also there is this uncertainty that information given is without bias. Hence, making the information gathered to have some element of errors which may affect the generalization of the findings of this study. However, it should be pointed out that this drawback is not peculiar to this study alone but to all other studies that use survey method. Also, the study is restricted to selected marketing firms in Lagos, thus, making the scope of the study to be narrow, hence this may rob the study of its generalization.
1.9 OPERATIONAL DEFINITIONS
Consumers: They are sometimes called user. They are also those individuals, organizations or part of organization, which use up or consume product and services.
Fixed Cost: Are incurred by the business at any level of output and they include equipment maintenance, rate, wages and general upkeep.
Manufacturer: The organization that produces the goods and services.
Market: It is all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want.
Marketing: It is the social managerial process through which individual and group create exchange product and values among themselves to satisfying their needs and wants.
Marketing mix: It is an influence on consumer behaviour, represents the combination of some marketing tools called four-Ps-price, product, place and promotion used to bring about a change in the behaviour of the market in a designed behaviour.
Promotion: It is any marketing activities that induces awareness of, and try to solicit support for buying and usage of a product or service that is being featured.
Advertising: It is a concept that differentiates advertising from advertisement because they are not the same.
Advertisement: It is a technique used by advertisers to reach their target audience.
Media: is a form of channels of communication through which advertising messages are conveyed.
Communication: It is a process which involves the sender sending message in such a way that the receivers translate it in the way the sender intended it.
1.10 PLAN OF THE STUDY
This research study is organized to be in five chapters.
Chapter One: This chapter, tagged “introduction”, dealt with the background of the study, the statement of the problem, the objectives of the study, research questions, hypotheses, scope of the study, significance, definition of terms and limitations.
Chapter Two: It deals with review of relevant literatures on the subject. In it, we shall take a look at the concept tagged “media advertisement and sales of consumer goods. The meaning of some terminology related to the subject will also be given. Also highlighted in the chapter is the role of technological innovation enhancement of customer service delivery.
Chapter Three: The third chapter of the study will contain research methodology. Research methodology simply stated the method that will be employed in carrying out the research. For simplicity, the chapter will be broken down into seven sub-heading, namely; restatement of research questions; restatement of the hypothesis, research design; sample design and procedure; data gathering instruments; procedure for administering the questionnaires; and constraints in administering the questionnaires.
Chapter four; This chapter, called “data presentation and analysis”, will statistically present data collected in a simplistic manner, using tables and simple percentage. Attempt shall also be made to analyses data so presented for our clearer understanding.
Chapter five: This last chapter of the project will present the summary of the finding of the research, conclusion drawn on it, and research recommendation.