APPRAISAL OF EFFECTIVE ADVERTISING IN INCREASING SALES OF COSMETICS
Chapter one
INTRODUCTION
1.1 Background of the Study
Advertising is defined as any paid non-personal presentation and promotion of ideas, goods, or services by a known sponsor (Kotler 2000).
Advertising is one of the most commonly used promotional tools by organisations. It represents the various communicational mix used to inform and persuade people about a product that a firm directs towards its target market, channel organisations, and the general public (Graw 1982:319).
The most aggressive marketing instrument used over the years in PETALS cosmetics company in Enugu is marketing promotion and advertising, though they do include other promotional tools
but they are not as effective as the ones mentioned above. Of all the promotional tools, advertising appears to have higher recognition than the others.
Experience has revealed that Enugu cosmetic firms (PETALS) always spend between 805 and 65% of their promotional budget on advertising. Despite the fact that the corporation has invested heavily in this advertising tool,
it does not appear to be concerned. This approach creates the perception that the impacts of advertising on sales and profit are particularly positive.
It does not appear, however, that the cosmetic company (PETALS) in Enugu state has time to investigate the relationship between promotional efforts and sales and earnings.
It is also possible that the company’s management does not recognise the importance of establishing this relationship or does not know how to do it. In reality, Simon (1970:871) believes that “it is likely that manufacturers take the ability to measure the effects of advertising and lack methods of calculating its run valves.”
The failure to measure the impact of advertising on cosmetic sales is not unique to PETALS Cosmetics Company in Enugu. It is a challenge shared by all manufacturers in Enugu state. Advertising appears to have a bandwagon effect in industry,
with every company jumping on board because others are doing it, but none of them taking the time to assess the consequences on sales, profit, or even goodwill. This appears to be understandable given that all cosmetic companies sell.
With their goods priced nearly identically, they are forced to rely heavily on advertising to outperform their competitors. In view of the aforementioned, the researcher has decided to investigate the effects of advertising on cosmetics sales and profits, using PETALS cosmetics as a case study.
It is important to note, however, that PETALS cosmetics company manages not only product advertising, but also institutional advertising. According to Stanton (1981:414),
product advertising is a means by which an advertiser informs and stimulates the market for a product over a longer period of time, with the goal of achieving a long firm effect.
Institutional advertising, on the other hand, is intended to instill a positive attitude towards the seller and foster goodwill rather than to sell a specific product or service. Its long-term goal is to raise and sustain consumer awareness of the company and its products, rather than to increase daily sales.
The company that manufactures the items or services. This makes it clear that when we advertise, our goal is not simply to raise sales in the short term, but also to present the company as a decent one with products worth buying.1. To what extent are advertising campaigns effective?
2. To what extent does it help to the growth and development of the business?
3. Does it affect people’s attitudes?
4. Does it cause patronage shifts from existing to new customers?
5. Does it lead to increased sales?
As a result, manufacturers of various cosmetics turned to advertising to assist boost their market shares, and PETALS did not back down, despite its lending position in the sector.
PETALS Cosmetic Company is the leading cosmetics marketer, selling over 2 million cartons every day. This statistic is increasing on a daily basis as the company’s expansion programme expands its capacity.
In an effort by the company to achieve her desired expansion programme, seven operational cosmetics significantly hampered its achievement of the goals, but with the expatriate assistance of the various plants to success song with the introduction of yet another new brand or type of cosmetics (Black Current) into the market.