THE EFFECT OF ADVERTISING ON THE SALES OF CONSUMER GOODS

1.0 Introduction

1.1 Background of the Study

In every modern society, advertising play a vital role in influencing the economy and social-cultural attitudes of people. In present day society, where consumers are gradually transforming from emotional buyers to rational ones, advertising is becoming not only a necessity but also an important and significant integral part of business promotion in our society.

According to Cathering Calty, (1969), advertising is said to be any paid form of non personal presentation and promotion of idea, goods or services by an identified sponsor. Frank, Jefkins, (1973. p.23) is of the view that, advertising present the most persuasive possible selling message to the right prospects for the product or service at the lowest possible cost. To back this claim, John Wright and Co. (1980), explained that is usually cost considerably to make a personal call on a house wife or business executives than to deliver a message by means of communication media to the same house wife or business executives.

Advertising involves such media as magazines and newspaper space, radio and television, outdoor display (such as posters, signs, skywriting), direct mail, novelties (March boxes, blotters, calendars); catalogues, directories and references, programmes and menus and circulars. It can be carried out for such diverse purchases as long-term build-up of the company name (institutional advertising), long-term build-up of a particular brand (brand advertising), information dissemination about a sale, service or client (classified advertising, announcement of a special sale, sales advertising), and so on.

Because of many forms and uses of advertising, it is hard to advance all-embracing generalizations about its distinctive qualities as a component of the promotional mix. Yet the following qualities can be noted, especially when it comes to brand and institutional advertising. Public presentation: Advertising, unlike personal selling, is a highly public means of communication. Its public nature confers a kind of legitimacy to the product and also suggest a standardized offering.

Because, many people receive the message, buyers know that their motives for purchasing the product will be publicly understood. Persuasiveness: Advertising is a persuasive medium that permits the seller to repeat his messages many times. It also allows the buyers to receive and compare the message of various competitors.

Owing to the growth of competition in the manufacturing industry mostly in consumer goods, there is need for organizations like Unilever to differentiate her products from competitors and this can only be achieved through effective advertising. Advertising capitalizes on superior performance benefit or special qualities of a product brand to persuade prospective customers.

Advertising is necessary for both manufacturers of and dealers of new product, and manufacturers of and dealers of existing products.

Short Historical Background of Unilever Nigeria Plc

The company first came into existence in Nigeria in 1923 when it was incorporated as a private company under the name Liver Brother Limited. In 1924, the name was change to the West Africa Soap Company Limited and was later changed to Liver Brothers Nigeria Limited in 1955. in compliance with the company and allied matters decree 1990, the company substituted the word “Limited” in its name with PLC to become Liver Brother Nigeria PLC, and the name was changed again to Unilever Nigeria PLC which it still bears till today.

In accordance with the Nigeria Enterprises promotion Acts of 1972 and 1977, 60 per cent of the Company's equity has been sold to Nigeria citizens and institution numbering 33,402 while remaining forty per cent is held by Unilever Overseas Holding, Lipton Tea Company Limited and Chesoborough ‚¬” ponds international limited.

Unilever Nigeria PLC entered into foods, drinks and personal product business by its merger with Lipton Nigeria Limited in July, 1985 and Chesoborough product industries Limited in December 1988.

Unilever Nigeria PLC must therefore know the effect of advertising on the sale of their consumer goods in order to ensure great success in the competitive market which is the aim of this research.

1.2 Statement of the Problem

There are many views and opinions about the role advertising plays in marketing of product. Some view advertisement as an inducement to buy products while others see it as misleading in purchase of product that someone do not intend to buy.

Also increased competition in the industry has imposed a lot of problems to the company in terms of advertising media. For example, 15 companies fighting over advert space of 1 or 2 television station.

Another outstanding problem is low performance and productivity of advert messages form the company to the public. The advert perform below expectation and couple with the high cost of placing it on radio, television and billboards. All these impose a problem to the company.

Another problem is the choice of media and irregular power supply. The choice of media to use in order to reach the target audience has always been a problem to the company, considering the fact that our country cannot boast of 24 hours power supply.

1.3 Aim and Objectives of the Study

The aim of the study is to identify the effects of advertisement on the sales of consumers goods.

Specifically, the research objectives is expected to examine the following in order to achieve the above stated aim:

1. To know the extent to which advertising affect the purchase of consumer goods.
2. To determine how consumers make choice among various brands of products.
3. To determine the extent advertising can be used to educate consumers on the use of a product.
4. To determine the effect of advertising on brand switching.

1.4 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Does Advertising affect the purchase of consumer goods?
• Do consumers make choice among various brands of products?
• Does money spent on advertising has a positive effect on the purchase of consumer's goods through increase in sales?
• Does advertising affect the purchase of consumer goods?
• Does advertising educate consumers on the use of product?

1.5 Statement of Hypotheses

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypotheses One

• H0: Advertising does not affect the purchase of consumer goods.
• H1: Advertising affects the purchase of consumer goods.

Hypotheses Two

• H0: Consumers do not make choice among various brands of products.
• H1: Consumers make choice among various brands of products.

Hypotheses Three

• H0: Advertising cannot be used to educate consumers on the use of products.
• H1: Advertising can be used to educate consumers on the use of products.

Hypotheses Four

• H0: Advertising has no effect on brand switching.
• H1: Advertising has effect on brand switching.

1.6 Significance of the Study

Unilever Nigeria PLC will gain from this study in the sense that the researcher will identify or find out the impact or effect of advertising on the sale of their products and the best media to use for advert.

Firms within the industry have an opportunity to gain from the research as they may be confronted with a similar problem.

Generally, the business world stands to benefit from the research.

Finally, this study will help future researchers on this topic which would serve as a guide or leeway to ride on.

1.6 Scope of the Study

The scope of this study covered Aba where Unilever Plc has a branch. This study was also limited to this area because of high cost involved. The researcher therefore further assured that what obtains in one area could also be applicable to another area.

1.7 Limitation of the Study

During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:

1. Time Constraint:

   The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.

2. Financial Constraint:

   Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

3. Initial Cooperation Delay from Respondents:

   A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.

I.8 Definition of Terms

Advertising:

This is a promotional tool used by the advertiser to reach the target; Sale, Consumer, and Goods.

Target Market:

Is a well defined set of customers whose need the company plans to satisfy

Marketing Segment:

Is the systematic design; collection of analysis and reporting of data to finding relevant influence to a specific marketing situation facing the company.

Product:

Is any thing that can be offered to a market for attention, acquisition and consumption that might satisfy a need.

Services:

An intangible benefit that one party can offer to another without result in the ownership of anything

Slogan:

Striking and easily remembered phrase in advertisement.