THE EFFECT OF ADVERTISING AND SALES PROMOTION ON SALES VOLUME

THE EFFECT OF ADVERTISING AND SALES PROMOTION ON SALES VOLUME

A CASE STUDY OF NIGERIA BREWERIES PLC LOKOJA.

ABSTRACT

This research work is on the effect of advertising and sales promotion on sales volume. It is aimed to provide the opportunity of determining the effect of advertising and sales promotion in the affairs of Nigeria Breweries Plc. And by extension in that of the beer industry in Nigeria. Advertising and sales promotion are very important tools that the Nigeria beer industry can not do without because it is rock on which the industry operates. Advertising and sales promotion help to maintain market share, and build up preference within consumers thereby boosting consumers loyalty and patronage. Advertising and sales promotion as a concept can be defined as the activities used by marketer to communicate to consumers in order to influence and induce them to buy.

CHAPTER ONE

1.1  INTRODUCTION

This research work or study is going to provide the opportunity of determining the effect of advertising and sales promotion in the affairs of Nigeria Breweries Plc. And by extension in that of the bear industry in Nigeria.

Advertising and sales promotion are very important tools that the Nigeria beer industry can not do without because it is the source of their existence and bedrock on which the industry operates.

In a competitive marketing environment on which the industry operates, it is necessary to constantly tell the consumer on how one brand is different and better than others.

In a nutshell over the years a huge sum of money is allocated to advertising and sales promotion to enhance to volume of sales in the industry.

1.2 BACKGROUND OF THE STUDY

Advertising and sales promotion is a means of creating awareness of the existing of a product or services and its benefit as well as communicating these benefits/advantages to customers, with aim of persuading them to buy or use the product or services. Advertising and sales promotion as a concept can be defined as activities used by marketers to communicate to consumer. In other to influence and induce them to buy.

Advertising is one of the four (4) promotional mix elements that business enterprises used to promote sales most company’s in Nigeria operate in a rapidly changing and competitive market environment which requires that company’s innovate by developing new product and implementing strategies to increase in the sales volume of a company depend on the effectiveness of the advertising medium used by the company. The purpose of advertising is to create awareness of company goods and services which in turn leads to increase in the sales volume.

While sales promotion on the other hand is to motivate the consumer, especially at the point of purchase, sales, promotion also help to educate consumer or buyer on the goods or brand they want to buy, sales, promotion is about communication information about the product in recent time, modern marketing calls for the move of developing a good product, prizing and making, it available to target customers.

To effectively communicate to costumer, the company is advertising I became interested in the topic of these research work by the role that advertising and sale, promotion have perform in many organization. I discover that advertising and sales promotion are the tools that organization can used to succeed and expose in the world. In fact advertising and sales promotion is the bedrock of an organization it tell more on how the entire world.

I choose to carryout my research work in these field “advertising and sales promotion” because of the importance and the benefit that one can get from this work. This research work or study is going to provide the opportunity of determine the effect of advertising and sales promotion on the sales volume in the affairs of Nigeria Breweries Plc. And by extension in that of the beer industry.

The important thing to consider is that the Nigeria beer industry has become very competitive to the numbers of brands currently there are so many different brands of beer like malt and shout in Nigeria drinks markets. This market is such that consumer taste are very many and different, and maintenance of high product quality in the place of rising cost is very important.

1.3  STATEMENT OF THE PROBLEM

Advertising and sales promotion is a business process that has economic and political problem, it also has social implication which tend, to limit the effect on sales volume of the company. The problems faced by the company through advertising and sales promotion cannot once be attributed to the company’s operation alone but also the government, customer and the general public, based on their behaviours towards the products been offered by the company.

Firstly the consumer create a lot of problems to the sales volume of the company, hence there is need to continue to research on customers behavior so as to have a measurable and realistic result. Because the most important aim is to maximize profit.

Also competitive is another problem that the company has to content with, because of the free entry into the market of drinks, many competitors have entered the market, but there is a call for setting up of strategies in order to increase sales and performance and this can be achieved through the use of promotional mix which is believe to be the blood of the business. Day to day business failure also limit the advertising and sale promotion result, so business failure has to be analyzed. However, failure resist examination because we tend to pre-occupied with success. The mix or marketing variable, the product, prices, package, the public relation and the distribution determine the sale of a product. No element in the mix taken can be unique determinant of sales but advertising and sales promotion, it go along way to increase sales.

To maintain market share new and similar product are introduce to the market from time to time if competing company introduce these new products they constitute a threat to the share of the market enjoyed by existing company. It is for this reason and to maintain the loyalties of the customers, advertising and sales promotion is used to counterpart competition.

1.4  SIGNIFICANCE OF THE STUDY

The market effort to create awareness and selling of products to concentrate on building bad recognition image and loyalty, to increase sales volume of the company are associated by decline in economics activities of the country. This study is proved to established the need to incorporate dynamism in advertising and sales promotion activities. The study is of great advantage to the management of Nigeria breweries and other manufacturing companies in designing the frame work of effective advertising media and sales promotion to gain higher relative marketed share, to increase profitability even though it is difficult to quantify precisely to what extent one can increase demand to the point where economic of sales can be achieved. This theme is of immense importance to all market owning largely to it role in creating awareness for the existence of a product and creating market for the product.

Researchers have show that consumers loyalty alone cannot crate increase in sales but advertising and sales promotion because it increase “Top of the mind” awareness of the public therefore, this study provide another strategy for improving sales volume which is by advertising and sales promotion. It also assist companies in being innovative in their offering to customers thereby, improving sales and profitability.

1.5  PURPOSE OF THE STUDY

The purpose of the study are listed below:-

• To examine the effect of advertising and sales promotion as its affect the sales volume.
• To examine how advertising and sales promotion expand consumers awareness on particular product, therefore increasing the number of distribution outlet through promotion.
• To reinforce and attain the overall marketing objective (advertising, publicity, sales promotion, personal selling). Ad the important part each play as a tool of promotion.
• To help in setting promotional budget and division among the major promotional tools and sales volume by companies.
• To understand how firm organize the advertising and sales promotion.

  1.6  STATEMENT OF HYPOTHESIS

Hypothesis in a simple way can be explained to means the tentative statement given or made to guide investigation.

Hypothesis however, should be in a declarative sentence form and relate either generally or specifically to the topic.

The parameters to be used are represented as Ho and Hi. The Ho is referred to as the null hypothesis while Hi is the alternative hypothesis.

The null hypothesis is the hypothesis under test or the hypothesis being challenged.

It is important to emphasize that the researcher regard, the two hypothesis as actually exclusive which measure the decision to accept Ho has a corresponding to eject Hi, the hypothesis of this study are as follows:-

Ho: Advertising and sales promotion does not help       customers to create awareness.

Hi:   Advertising and sales promotion help customers to create awareness.

Ho: Advertising and sales promotion does not induce buyer  action.

Hi:   Advertising and sales promotion induce buyer action.

Ho:  The organization did not familiar with advertising and sales promotion.

Hi:   The organization familiar with advertising and     sales        promotion.

 1.7  SCOPE OF THE STUDY

The effect of advertising and sales promotion on the sales volume is volatile study. I have decided for my selves to a very specific and significant areas. This study will specifically discuss the objective of advertising, sales promotion, marketing mix and their techniques.

The study will equally elaborately discuss the effect of advertising and sales promotion on the sales volume.

Both primary and secondary source of information were employed. Primary sources include interviews and observations while secondary sources were from the data collected from the product department of Nigerian Breweries Plc Lokoja.

Finally, the study will also seek to understand the effect of advertising, sales promotion, and sales volume.

 1.8  LIMITATION OF THE STUDY

In the course of carrying out this research work, there are some various limitation encounter, some of them are listed below:

1.     Inadequate Information: It is not every information needed that were given by the questionnaire. The companies do not give some vital information to the researcher which are more important to the research project. Hence the project lack detail information on the activities of Nigeria Breweries Plc.

2.     Time: Time serves as a constraint to this research work because the time frame is very short.

3.     Inadequate fund: Inadequate fund is another constraint to this research work because of the economic hardship and cannot make this research work to be effective.

4.     language Barriers: This is one of the problem researcher are facing, when the respondent cannot respond to question that researcher is asking, it make the work of researcher to be difficult.

Adequate and up to date text books on the project topic is not easy to get.

1.9  DEFINITION OF THE KEY CONCEPT

The following key concepts, are defined to enable the readers of this project have a proper understating of the write up.

1.     ADVERTISING

From a purely marketing point of view, advertising has been seen as any paid form of non-personal presentation and promotion of ideas, goods and services, by an identified sponsor. There are some main element of this definitions which have special significance and they include:-

• “Paid Form” This serve to distinguish advertising from publicity.
• “Idea” Goods and services: This emphasis that marketing cover a wide spectrum of ideas.
• “Non Personal” This is meant to distinguish between advertising through mass media and personal selling.
• “Identified Sponsor: This distinguishes advertising from mere propaganda.

However, from communication point of view, advertising is seen as a form of paid mass communication intended to persuade, prospect, prefer abroad of certain goods and services or ideas to all other, in the same category and induce them to patronize thee goods and services or adopt the idea in considering these definition, it aimed at winning more consumers or expanding the market and sponsored by a particular identifiable party.

2.     SALES PROMOTION

Sales promotion covers those sales activities that supplement personal selling and advertising co-ordinate them, and help to make them more effective. It also include the content between the company and its contact between the company and consumer of it product for the purpose of maintaining consumer satisfaction.

3.     BANDING

This is establishing a product name wholly of a priority nature and usually in the register of patent.

4.     GOOD WILL

This is a part of the value of business enterprise reflecting consideration and image.

5.     MARKETING MIX

According to Kotler P. (2003) marketing mix is the combination of the controllable marketing element, including product, price, promotion and place that a firm used to get the desired level of sales in the target market.

6.     MARCHANDING

This includes all the activities directed towards selling goods once they reached the point of purchase, for example packing, display, price, special offer. Etc.

7.     OUTDOOR ADVERTISING

These are mainly poster and triangle advertising but includes illuminated.

8.     PERSONAL SELLING

This is the process of making oral commercial presentation during buyer, seller inter-view as face to face in the buses.

9.     POINT OF PURCHASE

This usually referred to as retail sales act let, that is the place which sales is made together with publicity material used there.

10.                        ADDITIONAL ACTIVITIES

These are major variable with which the marketing manger work in communicate information between seller and buyer with the view to changing attitude and behaviour toward a product and services.

11.                        PUBLIC RELATION

Public relation is the conscious effort to improve and maintain an organization relationship with public.

12.                        PUBLICITY

This is the non-personal stimulation of demand for a product or services or business unit or obtaining favourable presentation of it upon radio, television or stage that is paid for.

13.                        SELLER MARKET

This indicate excess demand over supply, there by creating market in balance and marketing shows effort less obligatory on the part supplier.

14.                        TRADE STIMULANTS

These are does items which are used to stimulate, increase or excite vita action by the market. E.g. wall-clock, openers, bag, T. shirt etc. all branded with the company or product name.

15.                        CORRELATION

This is the measure of the degree of relationship found to exist between two distinct, set of data.