IMPACT OF ADVERTISING ON THE SALES OF A NEW PRODUCT
IMPACT OF ADVERTISING ON THE SALES OF A NEW PRODUCT
Advertising has not only become an integral part of our society and economic system, but has also grown over the years to assume tremendous proportions both as a business activity and as a social phenomenon. To place an order for the Complete Project Material, pay N5,000 to Then text the name of the Project topic, email address and your names to 08060565721.
Account Name – Chudi-Oji Chukwuka
Account No – 0044157183
To place an order for the Complete Project Material, pay N5,000 to
Then text the name of the Project topic, email address and your names to 08060565721.It has effected not only the business sector, but also the whole society. Advertising is a powerful marketing communication tool used by companies to fulfill the promotional task. It is an impersonal form of communication or presentation of goods, ideas, or services conducted through paid media under open or identified sponsorship. All about advertising is a sponsor sending a message, called advertisement through one or more mass media (radio, television, newspapers, and magazines) to reach large members of potential users or buyers of a product. By itself, advertising is a vital marketing tool that helps to sell goods, services, images and ideas through information and persuasion many Companies consider advertising a superior promotion tool to personal selling, sales promotion or publicity.
Advertising as a tool of marketing was defined by the American marketing association as “Any paid form of non-personal presentation and promotion of ideas, goods, and services by an identified sponsor”
According to Offiongodon A. M. (1991) Said advertising is a way of projecting values, ideas, expectation and so on to consumers. It is most effective as a reinforce of favourable attitudes, values and dispositions already held by consumers. Advertising has a high public mode of communication; its public nature confers a kind of legitimacy to the product and also suggests a standardized offering.
Besides, it is a persuasive medium that permits the seller to repeat a message of various competitors. It provides opportunities for dramatizing the Company and its products.
Advertising in Small organization is handled by a specialist in the sales department who from time to time consult the advertising agencies.
1.1 HISTORICAL BACKGROUND
The company “Nigeria Breweries plc (Lagos) is Nigeria pioneer firm. It was incorporated on the 16th of November, 1964 and commissioned its first Breweries plant in Lagos in 1969. The original founders of the company were UAC international limited and Heineken international companies. To this day UAC international limited and Heineken have acted as Commercial and technical adviser to Nigerian Breweries plc (Lagos), they provide facilities in line with distribution policy of extensive geographical spread, they built Breweries in various part of the country to ensure that its product are available in all part of the country.
The Company has five divisions operating jointly for the purpose of achieving its corporate objectives. These includes Technical finance, marketing, personnel and corporate affairs, each of the department is handled by an Executive director.
Nigeria Breweries plc Lagos has a wide variety of the products, including STAR lager beer which was the fist Nigerian beer, it came into the market in 1969, GULDER, the brown bottle came on stream in 1970, MALTINA, the first malt drink came up in 1976.
In March 1988, Nigeria Breweries plc recorded another, achievement by embarking on the export of GULDER in small bottles. LEGEND extra stout was introduced into the Nigerian market in June 1992.
1.2 OBJECTIVE OF THE STUDY
The objective of this project is to present how Nigeria Breweries plc Lagos benefits from advertising their new product
and among others:
- To examine advertising and its impact on the sales of new product.
- To understand the meaning of advertising and its objective.
- To stress the benefits of new product and how it pull customers towards patronizing a Company product.
- To know how advertising serves as a communication medium between the Company and prospects.
- To demonstrate how advertising can be used to correct product deficiency.
- To know how advertising can be used to project good corporate Image of a firm.
1.3 STATEMENT OF RESEARCH PROBLEM
This competitive era of marketing has made many marketing managers in different business organization, particularly in Nigeria Breweries Lagos branch to adopt the use of Advertising and other promotional tool in the sales of their product. Advertising has remain the major tool in giving information to the market on the introduction of the Companies new product, it creates awareness for a new product, generates the interest of the populace and spear-head the desired action. The relevant statement of the research work is the impact of advertising on the sales of a new product.
1.4 STATEMENT OF HYPOTHESIS
The Hypothesis to be tested in this work includes:
(1) H: Advertising is important in the introductory stage of a product life cycle.
H1: Advertising is not important in the introductory stage of a product life cycle.
(2) H: Advertising has a significant impact on pulling the customer towards patronizing a Company product.
H1: Advertising has no significant impact on pulling customers towards patronizing a Company product.
(3) H: Advertising serves as a communication medium between the Company and the prospects.
H1: Advertising does not serve as a communication medium between the Company and the prospects.
(4) H: Advertising can be used to correct product deficiency?
H1: Advertising can not be used to correct product deficiency.
1.5 SCOPE OF THE STUDY
The research work covers the impact of advertising on the
Sale of a new product “using Nigeria Breweries plc Lagos as a case study” and the product to be considered is “Legend extra stout”. This work goes further to highlight the meaning of advertising as a promotional tool, it also examine the new product life cycle and how it is design to pass through its development stages.
1.6 SIGNIFICANCES OF THE STUDY
This study successfully carried out and supervised will go along way to offer practitioners, experts, supermarkets and scholar in Marketing communication a lot of information on promotional decision as well as operation of the promotional tool (Advertising).
Apart from the above mentioned groups, marketing executives in various companies especially in consumer product organization will be provider an insight into the strength and weakness of Advertising.
Furthermore, this work by its objectives will not only assess the impact of advertising in the sales of a new product but also its application and uses generally.
Finally, research and promotional consultant, lack sufficient data and adequate literature in this area of study. This study when successfully carried out would be needed in this important area of marketing communication. Based on those important solution expected to be derived from this study, it becomes indisputable that the need for this study is important.
1.7 LIMITATION OF THE STUDY
There were some factors that hindered the researcher from attainting the peak of the research work proposal. Among these factors are:
(i) ATTITUDE OF RESPONDENTS: The respondents both Companies and individuals should great indifference in giving information about them selves and this was not encouraging while others gave wrong information for reasons best known to them. This reduces to a large extent the possibilities of eliminating bias.
(ii) COST: Due to the nature of this study that demands much cost than what the researcher could afford, the scope of the study was almost too narrowed to enable the researcher have a sample that could be effectively studied bearing in mind cost considerations and the financial resources available to me as a student.
(iii) TIME: The researcher is also time constrained as the time space at disposal to carry out the research is seriously affected by the intermittent closure of school.
(iv) LITERACY LEVEL: The literacy level of some of the respondents is a very discouraging one in carrying out researches of this sort. As a result, problems were encountered in the completion of the questionnaires as some were properly or wrongly failed.
1.8 DEFINITION OF TERMS
Some of the terms used by the researcher in the case of this research work are defined as follow:
(1) ADVERTISING: This is defined by the American marketing Association (AMA) as any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.
(2) ADVERTISMENT: This is the message itself.
(3) MESSAGE: This is defined as the set of meaning being sent and/or received by the audience.
(4) PRODUCT: According to Kotler Philip, a product can be defined “as any thing offered to a market for attention, acquisition or consumption”. It includes physical object, services, personalities, place, idea etc.
(5) ADVERTISING MEDIUM: This is defined as the channel through which the advertising messages are delivered to the target audience.
(6) ADVERTISING COPY: This refers to the words and pictures of illustration that make up the way they are laid out, it create a total impression.
(7) ADVERTISING LAYOUT: According to Charles Schewe and Rueben Smith (1980) the layout of advertisement is its overall structures the position assigned to the various elements of the copy and illustration.
(8) REACH: Momoh S. M. (1994) in his unpublished lecture note defined it as a term used to designate the number of different homes or individuals exposed to a given medium or combination of media over a period of time.
(9) THEME: This is referred to as the distinction message of the advert, which can be popularized into a jingo of song.
CHAPTER TWO-LITERATURE REVIEW
2.1 THE HISTORY AND GROWTH OF ADVERTISING IN NIGERIA
To appreciate the nature of advertising, a brief history of advertising will be reviewed. Advertising is often considered a recent phenomenon. It is true that modern advertising with its multimillion-naira budget and tremendous influence in the marketing process is in many ways a creation of the post- world war II business revolution says Russell etal (990 p. 33). However, the process of communicating a sales message is as old as human history “Advertising history is divided into three broad periods.”
(1) THE PRE-MARKETING ERA: From the start of product exchange in prehistoric times of the middle of the eightieth century, buyers and sellers communicated in very private ways. For most of these period “media” such as early tables town criers and tavern signs were best ways to advertise a product or a service. Only toward the end of this era was printing used.
(2) THE MASS COMMUNICATION ERA: From the mid 1700s to the early decades of this century, advertisers were increasingly able to reach large segments of the population, first with faster presses and later through broadcast media.
(3) THE RESEACH ERA: During the last 50 years, advertising have methodically improved the techniques of identifying and reaching narrowly target audience with messages prepared specifically for each group or individual modern communication technology has aided in this quest for the perfect administering campaign.
In Nigeria, a number of factors and developments have been identified as a major contributor to the revolutionalization of advertising in the country. They include the arrival of Daily Times in 1926 and the WNBS/WNTV in 1959, the nation’s independence, the civil war, the indigenization Decree and the formation of the Association of Advertising practitioners of Nigeria (APPN)
Furthermore, Moemeke (1997) traced the emergence of advertising in Nigeria to 1920 when the West African publicity limited was established in London, “advertising at this time was targeted at a limited audience of Europeans and generally illiterate Africans”.
The development of advertising in Nigeria was achieved on a tripod consisting of West African publicity now lintas limited, Western Nigeria Radio and Television (Radio-vision) and the Association of Advertising practitioner of Nigeria (AAPN). The arrival of the Daily Times in 1926 and the WNTV/WNBS in 1959/65 as earlier stated contributed a great deal to the development and practice of advertising in the country. These were the glorious years for advertising.
The 1990’s saw many other changes in advertising among them drop in trust qualify and level of integrity still lag behind the standard in the international community but the decline in standard had awakened every one to the need for more and better training. Advertising, according to John Wilmhursit (1985) “grew naturally out of the social economic and commercial development which took place at an early stage in our history”.
2.2 DEFINITION OF ADVERTISING
In defining Advertising, McCarthy (1982) defined advertising “As any paid form of non personal presentation of ideas, goods, or services by an identified it as: Any paid form of non-personal presentation of ideas, goods or services by an identified sponsor.
Baker (1979) defined it as “Any paid form of non-personal presentation of ideas, goods or services by an identified sponsor.
Joanna Kinsey (1988) defined advertising as any paid form of non-personal presentation of products, services or ideas place in one or more of the commercial available media by an identified sponsor. In Semenik and Bamossy (1993 p. 340) advertising was defined as the non-personal presentation of information to a large number of potential customers through the mass media.
To Watson Dunn etal (1990 p.9) advertising was defined as paid, non-personal communication through various mass media business firms, non profit organizations and individuals who are in some way identified in the message and who are to inform or persuade members of a particular audience.
Also to Douglas Foster (1989 p.135) advertising is the persuasive force that aims at changing customers attitudes and patterns of behavior to a product or service (by use of the mass Communication Media) in ways which would be favourable to the vendor.
Though advertising has different definition by different authors, all about advertising is a sponsor sending a message called advertisement, through one or more mass media (Radio, Television, Newspaper, etc.) to reach large numbers of potential users or buyers of a product. It helps to sale goods, services, images and ideas through information and persuasion.
2.3 OBJECTIVES AND QUALITIES OF ADVERTISING.
The ultimate purpose underlying all advertising is to increase awareness. Despite the problem inherent in measuring the effectiveness of advertising firms invest in advertising; it is realistic to state that firms invest in advertising expenditure in the expectation of an improvement in profitability and reputation of a brand examining the specific objective which may motivate a particular advertising Campaign, it is clear that an improvement in profit varies from primary to a very subsidizing motive.
Advertising objective can be stated as
- To build primary demand
- To introduce a price deal
- To inform consumer about product existence.
- To build brand recognition or brand preference.
- To inform about a new product availability.
- To create a reputation service reliability.
- To increase market share.
- To modify existing product appeals and buying motives.
- To build overall Company Image.
- To increase frequency of use of product.
- To reach new areas or new segment of population within existing areas.
- To effect immediate buying action.
- To develop overseas market.
Although the list presented above appear to be long, it is not even exhaustive, the objective that advertising must accomplish in a Company are many. According to Nwokoye N. G. (1980 p. 198) the objectives of advertising is to inform the target audience about the product or service and to create or stimulate demand for the product or service through persuasion.
2.4 FORMS OF ADVERTISING
According to Bona Chucks Ebue in his book “Marketing communication (p. 75) classified advertising according to its function the following ways:
1) PRODUCT ADVERTISING: The advertising informs the customer about the existence of the product and the benefits to be derived in using the product. The product advertising is at times called product reputation advertising because it is aimed at promoting the sales of brand new products.
2) INSTITUTIONAL ADVERTISING: This is a “good will” advertising designed to promote the firms overall quality, image or reputation. There is no bid for direct action to sell a specific product or service.
3) NATIONAL ADVERTISING: Advertising by manufacturers of consumer products in contrast with that done by retailers are called National advertising. The aim is to stimulate consumer demand for product by emphasizing the benefit to be derived from using the product.
4) RETAIL ADVERTISING: This is the advertising placed by a retailer it has a different goal from National advertising. A retailer is not interested in whether a specific product or brand is purchase but where the consumer makes the purchase.
5) LOCAL ADVERTISING: This concept describes the advertising sponsored by local business firms that are not necessarily retail establishment. They are manufactures of services that operate on the local level.
6) BUSINESS ADVERTISING: Advertising by manufacturers of industrial goods is called Business advertising. It is advertising to buyers who are producers, informing them about the products existence, and persuading and convincing them to make purchases.
2.5 MEDIA SELECTION
Media selection is determining the best medium or vehicle to deliver an advertising message to the means by which advertisers reach their target audience with advertising message. Before delving into the strategies for selecting available to the advertiser.
They include newspapers, magazines, radio, and television. Direct mail, out door advertising and a few other specially advertising outlets such as yellow pages, sky writing, calendars.
Advertisers must choose from among the available media those that best suit their promotional objectives. Any sound advertising Campaign must be based upon a thorough understanding of the various advertising media; media have some personalities and characteristics much like some product or firms. The major media types very in their Reach, frequency, and Impact (Green berg) 1972. T.V for example has more reach than magazine. Outdoor delivers much more frequency than magazines and a magazine has more impact than newspapers. In choosing from among all the media will depend on many considerations such as:
1) Target Audience Media Habit: The planning and implementation of the advertising programme reflect the media habit of the audience. Medical journal and health care magazines are the most effective median for reaching medical and Para medical professionals.
2) Product: Some products are advertised to best advantage with certain types of medium fashion are best shown in colour magazines, outdoor poster, bill boards and Television. Thus radio is not a good medium for these lines.
3) Message Requirements: Message that requires technical, complex information requires specialized print media such as journals, magazines or mailings. Broadcast media is usually poor for length messages.
4) Cost: Selection of media type depends on the cost of the media space or the maximum amount of money available for purchasing media space. It is important to consider cost in relation to:
(a) Absolute Cost: The amount of funds available.
(b) Relative Cost: The circulation or audience reaching capacity.
Absolute Cost is the fee for buying a certain amount of time and or space in a medium. It depends on the budget. Cost very according to size and quality of the audience, the time or space selected and the volume and frequency of placements. Relative cost is absolute cost balanced with circulation.
5) Objective of the Advertisement: Media choice is most successful when based upon clear-cut objectives. If the objectives of the advertising are to create general sales awareness of intending sales promotion often, the advertising Company will probable not use direct mail. Each media type will be reviewed for its capacity to deliver the particular objectives.
The cost and impact of each media must be periodically reexamined to check if they are consistent with the objectives of the campaign and also to determine what the advertiser is getting for the money spent on different media.
2.6 MEDIA SCHEDULING:
Media have a number of characteristics in common, but there are considerable variations in the credibility of individual media and in the extent of media choice certain media will be more suited to marketing objectives than others. Some are more appropriate for a product than others.
The media planner has to decide how much time or space to purchase as well as the frequency of exposure. The different common pattern of schedules in use today includes:
1) STEADY PULSE: This calls for a uniform spread of the advertising Campaign overtime, if it has been decided that thirteen insertions during a certain years, this method calls for one insertion every four weeks.
2) START UP PULSE: It is a schedule in which there is heavy advertising expenditure of the beginning of the Campaign and a tempering off cater. This is common in the introduction of a new product.
3) PERIODIC PULSE PATTERN: In this case heavy advertising is done at intervals.
4) PROMOTIONAL PATTERN: This is a media schedule designed to support some special promotion of the manufacturer.
5) ERRATIC PATTERN: This pattern is when advertising is spaced at irregular intervals.
6) SEASONAL PATHERN: This pattern involved seasonal buying pattern dictating heavy media used during the selling periods.
2.7 ADVERTISING AGENCY FUNCTION AND STRUCTURE The modern advertising agency has advanced along way from the space salesman of a century age, to the extent that some felt it would be more appropriate to call it a marketing agency with increasing competition advertising agents have extended the range of service available to clients and would be incorrect to assume that agency could substitute for the firms own marketing department. The function of the modern advertising agency is helping company to market and advertise its goods and services efficiently.
Advertising Agency is defined as “an organization which engages in business to serve the right people at the right time and in the right place”. Fryburger, Sandage and Rotzolt (1976: 506) see advertising agencies as specialists which create advertisement after an end product of complication problem solving process requiring consideration of all elements in the clients marketing mix. Infact most media organization in Nigeria today perform the function of advertising agencies. This situation has further been maintained because of the commercialization policy of the federal government regarding its ownership of mass media.
The operational structure of an advertising agency shows various positions that correspond with functions. However, an advertising agency is typically organized around the following department (A full service Agency).
i) Account Department
ii) Creative Department
iii) Media Department
iv) Research Department
v) Internal Control and other Services.
The chief executive controls the entire affairs of the organization. The media manager is responsible for planning and purchase negotiation with media owner. Creative director supervises copy writers who create the advertising copy. The creative function is the most important of all the copy writers, artist and director of graphic specialist are referred to as creative people.
However, the creative people don’t have monopoly on creativity because the account manager, media managers and researchers also work creatively, where as a writer may work exclusively on one account, creative director spread their attention over writers on several accounts. Sometimes a creative review board oversees the creative work on all accounts. A writer is often termed up with the artist and television produces in the creative department. Research manager investigates issues relating to their questions. The accounts executive manages the individual and collective accounts of clients.
2.8 NEW PRODUCT DEVELOPMENT.
Products owned by companies are like organisms which are born when they are developed and launched into the market, live when they are accepted by the market and finally die when they are rejected by the consumers in preference for other products.
Companies need to develop new products in order to satisfy their customers and maintain or increase their profitability and survival. It is important that companies should be innovative in product development in order to meet challenges in meeting consumer needs and competition from other producers. Old products are totally replaced or modified when developing new products. W. J Stanton believes there must be significant difference for an old product to be seen as new.
Aham Anyanwu defines product development as “Involving the process of anticipating the need of the market place and initiating action towards identification and production of product and services which will best satisfy such need.
Product development is full of risks since many new products fail upon being launched into the market. Poor market research or product management can be responsible factors for the failure of new products. Wrong anticipation of needs, transfer of product ideas into physical products, advertising, or pricing may also cause failures right from inception. Severe losses are incurred by companies when new products fail. Although certain stages in the process must be omitted, product development processes need to be flexible. According to Foxall (1981) there are essentially three stages for a new product development. These are:
1) The generation and evaluation of ideas for new product.
2) Market analysis in the context of corporate strategy.
3) Product creation and pre-launch testing on our part.
1) Generation of Ideas: This is the first stage and involves Ideas generation from market research, company employees including research and development department, management brainstorming and external sources to the company.
2) Ideas Screening: This involves sifting and checking through the ideas to reduce the number to few viable ideas. The ideas that warrant further study can then be further investigated. Care should be taken not to drop good ideas or to accept bad ones. In screening an idea, the company must consider the following:
(a) If the ideas are in line or consistent with the firm’s objectives, i.e. in line with company’s goals personality, goodwill etc.
(b) If the firm has the technical (e.g. equipment, manpower, etc.), financial and managerial ability to develop the product.
(c) If there really exist a large market for the product i.e. will it really be marketable?
3) Business Analysis: The firm analysis the product idea to ensure that the product is attractive with regards to its sales, cost and profitability.
4) Product development: This stage now involves the translation of the product ideas, which is a concept, into a physical product. The production, research and development, and marketing department work as a team to develop the physical product. This is aimed at ascertaining the feasibility or possibility of producing such product. It is also aimed at producing a small quantity which will be later used for market testing.
5) Test marketing: The Company here introduces limited qualities into the market. The aim of this exercise is to assess consumer reaction in terms of demand and acceptability of the product.
6) Commercialization: Once the results of test marketing are satisfactory, the Company then goes ahead to produce the goods in large quantities and market the product fully.
2.9 PRODUCT LIFE CYCLE
The product life is one of the most promising concepts to guide management in marking decision. This in essence product life cycle is the progress made by a successful product in terms of its sales from the market.
This is an important concept in marketing and simply put, it states that a new product must pass through certain period in its life time.
1) Introduction Stage: At this stage the sales and rate of growth of sales is low while high production and marketing coast are incurred. Low sales are mainly due to unawareness or reluctance by customers to change old brands and accept the new products. This attitude is known as customer inertia.
2) Growth Stage: Sales increases rapidly during this stage as more customers become aware and respond to marketing efforts. They buy more of the product at this stage profit also grows significantly.
3) Maturity Stage: Total sales continue growing but there is a slow down in rate of growth due to acceptance of product by most of the potential buyers. Sales growth tapers off and is said to reach the situation stage profits stabilize at this stage or start declining.
4) Decline Stage: The product starts to decline in sales and profit. The sales curve in the product life-cycle slopes rapidly.
The life cycle concept however is not a rigid description of products rather it is only a useful idealization that help us to know:
a) That product has limited life.
b) Products profit tends to follow a predictable course through the life cycle.
c) Product requires different marketing strategy in each stage.
2.10 CONSUMERS ADOPTION PROCESS
New product adoption is the decision-making activity of an individual through which the innovation is accepted. It is also the mental process through which an individual passes from first hearing about an innovation to final adoption. Individual become adopters when they make a decision to become regular users of a product.
According to Philip Kotler “they are six stages in the adoption process, these are:
1) Awareness Stage: The consumer become aware of the product but does not have any information about the product.
2) Interest Stage: The consumer becomes interested in the product and decides to seek information about the product.
3) Evaluation Stage: The consumer mentally measures the merits of acquiring the product. He decides whether it would make sense to try the new product.
4) Trial Stage: The consumer buys a sample or limited quantity to use on trial basis. This is aimed at improving his estimate of the values of the product.
5) Adoption: The consumer decides to use the product on a continuous basis.
6) The Post-Adoption Confirmation Stage: In this stage, the adopter continuous to seek assurance that he made the right decision to adopt the new product.
2.11 ADVERTISING IMPACT
Advertising wields a big influence on the success of a product in the market place. It is very important at the introductory stage of the product as innocent consumers need to be aware of the product. Infact advertising is important through out the life of a product, only that it assumes various degree of importance and theme during the different stages.
In the introductory stage advertising effort is on awareness that is making the consumer to become aware of the product and is convinced to try the product. Here the producer spend thousand or even millions of naira in advertising in order to let the consumer gain acceptance of the product.
Many claims have been made by the supporters of advertising as to effectiveness in increasing sales. But it is worthy to mention that many products still fail despite a good advertising campaign, a result of variables that affect the new quality, inadequate market analysis, lack of effective marketing effort higher cost than anticipated poor timing of introduction competitive strength and weakness and so on.
Advertising is also very important at both growth stages of a product and the maturity stage, only that it is not so as intensive as the introductory stage where it is needed to make an impact on sales. The reason why it is not as important in other stages of the product life cycle is that other promotional mix tools and marketing mix strategies can be manipulated and used to assist advertising for instance, using sales promotion tool during the maturity stage and engaging in some product modification strategy at the decline stage, to lengthen the life of the product.
However, it has been shown that time and again is a significant difference between impact effect and long-run effect. An intensive advertising campaign might lead to a sharp increase in sales. It is very probable that long-run sales will be higher than formerly but then the levels indicate by the initial impact of advertisement.
In conclusion, advertising will recline a position effect on sales, when consumers have favourable evaluation about its advertising message on the other hand will receive negative effect when consumers react unfavorably to the advertisement.2.12
THE EFFECTIVENESS OF ADVERTISING
The effectiveness of advertising in marketing consumer product in a market that is competitive cannot be over emphasize because of its ability to communicate, inform and also create awareness for the product or services of a company. Consequently, a situation where a lot of manufacturers are now producing product that are related brings competition into the market therefore a need to differentiate a manufactures product from that of other competitor by specifying in the advert the specific feature of the product that gives it an edge over other related product in the market.
A lot has been written on what constitute effective advertising some of the most recurrent question in this regard being “what is an effective advertising? And how can this effectiveness are evaluated?” These among a few others are category of questions which many advertisers would wish there are easy answer to.
Indeed one of the most enduring formal approaches to the measurement of advertising effectiveness is the DAGMAR model, developed by Russell Colley. DAGMAR stands for “Defining Advertising Goals for Measuring Advertising Result” According to Douglas the basic purpose of advertising is to build sales over a long period and to establish the product in its market that the sales gain is held when the campaign ends.
One the nature of the effectiveness of advertising Levitt in his work noted that “advertising, particularly corporate advertising improves organizations reputation and is of immense help to any type of organization”. Thus on the effectiveness of advertising in a long term image building. Gary in his study called ADVISOR observed advertising when combined with other promotion tools reduces costs greatly.
SUMMARY RECOMMENDATION AND CONCLUSION
The researcher after analyzing the data he got from the questionnaire distributed and tested, and the earlier stated hypothesis in the previous chapter, the findings and recommendation will then be stated in this chapter, and thereafter the researcher will draw his conclusion on the study “the impact of advertising the sales of a new product”
5.1 SUMMARY OF RESEARCH FINDING
This research work has analysed the impact of advertising on the sales of new product and the following findings were obtained:
(1) It was discovered that the Company advertise her products.
(2) The Company also set her advertising budget according to the limitation of their financial resources.
(3) It was also ascertained that the Company has different competing brands such as Guinness Stout and power Stout, Legend Extra Stout and Eagle Stout. Etc with Guinness Stout attracting more customers loyalty than others
(4) The research also reveal that the consumer prefer legend due to its price and quality, but not significantly taste or image.
(5) It was also discovered that advertising provide enough information and awareness of the product.
(6) The consumers equally received the Company’s advertisement through all available medium weekly and daily.
From the finding of this study the following recommendation will be found worthy.
(1) The Company should always set her advertising budget according to stage of product during their life cycle, competitions activities and national coverage and so on, instead of extending her advertising budget according to her financial limitation.
(2) The company should supplement her effort along with other promotional mix like personal selling, sales promotion and publicity in order to facilitate both pull and push promotional status among prospects.
(3) The taste of legend extra Stout should be improved by the company in order to attract more market share.
(4) Advertising should be carried out at regular interval in order to arouse customers satisfaction and interest.
Based upon these recommendations above, it will enable the company to anticipate market needs at a profit.
This research work was carried out to ascertain the impact of advertising on the sales of a new product using Nigerian Breweries Lagos as a case study.
The research study also emphasized how advertising form the major basis that the Company used at the introductory stage of the products life cycle, it also stressed that advertising has great impact towards pulling customers action to purchase the company’s products. Also advertising equally serves as a communication medium between the company and the prospects, it is also seen that the company can rely on advertising in terms of correcting product deficiency effectively.
However, the company should pay serious attention on advertising and enough money should be budgeted on advertising as it communicates the existence of a new product to the prospects. And the company should also use other promotional tool along side advertising like personal selling, sales promotion, publicity etc. to stimulate the buying action of the prospects.
IMPACT OF ADVERTISING ON THE SALES OF A NEW PRODUCT
To place an order for the Complete Project Material, pay N5,000 to
Account Name – Chudi-Oji Chukwuka
Account No – 0044157183
Then text the name of the Project topic, email address and your names to 08060565721.