IMPACT OF ADVERTISING ON SALES PERFORMANCE IN THE SOFT DRINK INDUSTRY
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IMPACT OF ADVERTISING ON SALES PERFORMANCE IN THE SOFT DRINK INDUSTRY
ABSTRACT
This project objectively examines and assesses the effects of advertising on sales success. It explains what sales performance is and displays the relationship between the two factors, namely advertising and sales performance.
The project covers all aspects of advertising, sales performance, and target markets.
It also x-rays the market so that the reader understands the impact of advertising on sales.
The historical background of Nigerian Bottling Company is discussed in Chapter One, while Chapter Two comprises a literature review that provides additional insight into what advertising entails.
A research study was conducted, and the methods utilised to acquire data/information are detailed in Chapter 3.
The result, data analysis, is found in Chapter 4. Finally, five explicitly state the conclusions and recommendations, as well as proposals for future studies.Chapter one
INTRODUCTION
1.1 Background of the Study
When there is a lack of awareness about a product, its mere existence does not translate into consumer satisfaction. Advertising helps to raise awareness. In marketing, the fundamental truth is that a product does not sell itself.
A product created to fulfil the needs of purchasers cannot be successful, even at a reasonable price, unless proper information is provided, which can only be obtained through advertising.
The term “advertising” refers to any paid, non-personal presentation of ideas, commodities, or services by an identified sponsor or sponsors (Philip Kotler, 2001). Advertising may have been employed by different persons in various contexts.
Telser L.G. (2003) defines marketing as the process of selling items. Advertising technicians perceive it as a means of communication, which is why Ogivy (1963), known to as the father of advertising, stated, “I do not regard advertising as an entertainment or any art form, but as a medium of information”.
In general, advertising was employed to characterise a key component of the promotion mix. Even when the right product at the best price is offered in all the right places via the most efficient distribution method, there is usually a problem.
People who want to buy the product must be informed about it. Prospective consumers must learn about the product’s unique features, fulfilling characteristics, and availability.
Many authors have characterised advertising in numerous ways, each with his or her unique interpretation of the subject. However, everyone is stating the same thing in different ways. Advertising is critical in the soft drinks business due to its size and competitive nature.
An effective advertisement raises awareness, generates a positive attitude, and performance in the minds of customers towards a product and the purchase. An advertisement must be issued, received, and interpreted before it can be acted on by the target market.
Critics believe that advertising deceives people, particularly through the use of terms like better and best. Critics also contend that check dico for correctness is dishonest because its advertisements contain deceptive claims. At this point, it is critical to consider how advertising affects an organization’s sales turnover.
Advertising has evolved into an important strategy for building brand equity and improving an organization’s sales volume. It should be mentioned that authors such as Kotler J.P. (2006) and Cole A.A. (1997) define and consider marketing as the identification of human needs and wants, followed by how those requirements can be met efficiently.
Dr. Doghuje (1988), formal managing director Linitas as (Nigerian’s pioneer Perspective), stated that “advertising is a marketing tool whose sales goal is to build preferences for superior brands or services.”
In his work, Jefkins (1982) defined advertising as “the means of marketing known in order to buy, sell goods or services”. It is critical to emphasise one aspect of this definition: “in order to sell”. Some people try to discriminate between informative and persuasive advertising, yet there are only two aspects of how advertising works.
From the advertiser’s perspective, there is little to gain by informing; if he is unable to persuade and attempts to persuade without informing, this is the pinnacle of poor advertising.
The Advertising Practitioners Council of Nigeria (APCON), established by decree 55 of 1995, which determines who the advertising practioners in Nigeria are and what standards of knowledge and skill must be attained by persons seeking to become registered as members of the advertising profession in Nigeria,
among other things, defined advertising as a form of communication through media about products, services, or ideas paid for by an identified sponsor.
Welbacher defines it as “It is consist of media messages paid for and signed by a firm or institution that wishes to increase the probability that those reached by these messages will behave, satisfied or provided” .
The marketing notion is a corporate theory that asserts that customer happiness is the economic and social rationale for the company’s existence.
The common saying “if you do say you are here, nobody will know you are there” must be closely followed by the soft drinks businesses because consumers today have more options and are better informed and organised about company flavour,
quality, and quantity. As a result, every business-conscious soft drink sector must prioritise promotion in order to improve the organization’s sales volume.
1.2 Statement of Problems
The study tries to uncover the following issues, as mentioned in the terms of questions:
(a) Does advertising play an essential role in generating sales turnover in terms of both quantity and money?
(b) Do clients actually patronise the company based on its advertisements?
(c) How will the turnovers vary with different levels of advertising expenditure?
(d) Whether or not the company’s advertising channels are ineffective?
(e) How do advertisements influence people’s beliefs and attitudes?
1.3 The Purpose of Study
The objective of this study is to be particular about how it conducts its advertising efforts. That is, appraise the company so that:
(i) Identify the advertising aspects that are widely used in the soft drink business.
(ii) To show the relationship between advertising expenses and profitability.
(iii) Identify more effective advertising tools.
(iv) Assess the extent to which advertising influences consumer purchasing behaviours.
(v) Determine the influence of advertising on the company’s turnover at a certain point in time.
(vi) To assist management in determining the most effective manner of advertising for the company’s goods.
1.4 Significance of the Study
The study’s value lies in its ability to identify the impact of advertising on organisational turnover. The study would be extremely beneficial to the management of the Nigeria Bottling Company,
as well as any individual or group of people who wish to conduct research on the same or a related topic in the future. It will also assist consumers in marketing their buying decisions, as readers will gain a better understanding of why people are loyal to their preferences.
1.5 RESEARCH QUESTION.
The researcher supplied answers to the following questions based on responses from Nigeria Bottling Company Plc and customers:
(i) What is the impact of advertising on turnover?
(ii) How does advertising affect the company’s sales turnover?
(iii) To what extent will advertising affect the company’s turnover?
(iv) Has advertising met its goals for firm turnover during the last five (5) years?
(v) What factors influence the level of advertising expenditure in your company?
(vi) Does the company use the appropriate medium when carrying out its advertising campaign?
(vii) Do the company’s advertising strategies have a favourable effect on its turnover?
1.6 Research Hypothesis
Hypothesis I.
HO: Advertising does not affect a company’s turnover.
H1: Advertising impacts a company’s turnover.
Hypothesis II.
HO: Turnover does not alter between degrees of advertising.
H1: Turnover fluctuates with varying amounts of advertising.
Hypothesis III.
HO: The choice of the appropriate media does not affect the company’s turnover.
H1: The selection of the appropriate medium determines the company’s turnover.
Hypothesis IV
HO: The choice of advertising media has no significant effect on overall success.
HO: The choice of advertising media name influences overall success.
1.7 Scope of the Study
This study discusses:
(i) The Nigeria Bottling Company Plc marketing department’s promotional efforts.
(ii) The advertising media utilised by the company.
(iii) How Nigeria Bottling Company’s advertising affects sales volume.
(iv) The advertising method used by the company.
(v) The target demographic for the company’s advertisements.
1.8 Limitations of the Study
The research study is focused on the impact of advertising on sales turnover in the soft drink sector, as well as how advertising may help create a company’s image and introduce new products. However, the study will focus on Nigeria Bottling Company for the following reasons:
(i) The expense of doing the research and the time restrictions for contacting respondents.
(ii) Inaccessibility of an executive concern or their inability to deliver adequate responses.
(iii) One respondent was uncooperative in completing out the questionnaires as necessary.
1.9 Definition of Terms
(i) TARGET MARKET: The target market refers to individuals or groups of people, as well as organisations, who require a specific product.
(ii) SALES VOLUME: This refers to an individual or organization’s sales stated quantitatively in physical or volume terms during a specific period of time, typically one fiscal year.
(iii) ADVERTISING MEDIA: This is the route or medium via which information about a product is communicated to the intended audience. Examples include television and radio (electronic media), as well as newspapers, magazines, and journals (print media).
(iv) ADVERTISERS: This refers to the identified sponsor, which is the individual or organisation that pays for advertising.
(v) ADVERTISING: It is defined as any non-personal presentation of goods, services, or ideas by an identifiable sponsor.
(vi) ELECTRONIC MEDIA: Electronic media includes both radio and television, which are primarily electronized to transmit information, i.e. advertisements.
(vii) PRINT MEDIA: Print media includes newspapers, magazines, and journals that print achievements in dailies.
(viii) TURNOVER: Turnover includes sales revenue. The quantity of money taken by a company over a specific period of time.
(ix) PRODUCT: A product is a good, concept, method, information, object, or service that is the end result of a process that is intended to be sold in the market to meet consumer demands.
(x) MARKETING: Marketing is described as the management process of identifying, anticipating, and meeting client needs in an efficient and effective manner.
1.10 HISTORICAL BACKGROUND OF THE COMPANY
Coca-Cola was created on May 8, 1816, by Dr John Styln Penberto, a chemist in Atlanta, Georgia, United States. Frank M. Robbinson and Dr. Perb gave the name Coca-Cola
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