CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Demographics and product attributes are the mostly widely used variables for segmenting the market, with demographic categories used to match segments with media profiles, mainly because most media described their audiences by demographics. Although recent research has identified new bases for segmentation, including lifestyles, benefits, etc., profiling of target audiences by the media has changed very little. Media reach and pricing continue to be based on the demographic characteristics of the targets, and thus demographics continue to play an influential role. However, although the demographic profile of consumers in many markets has changed considerably over time, research into demographic factors appears to have waned in favor of more ‘exotic’ variables (Kauhanen, 2005).
Kavassalis, , Ntina, Dimitris, Evangelos, Gregory, and Antonis (2003), in everyday experiences, customers are exposed to a variety of advertising appeals. These appeals are aimed at influencing the customer’s attitude towards a wide range of products and services. Through television, radio, and the Internet, they reach a large number of individuals who represent a wide range of cultural and ethnic backgrounds. But to what extent these appeals are able to influence consumers belonging to different demographic profiles is to be seen. Investigation of the literature identified some interesting imbalances. The majority of studies investigating demographic influences in advertising were found to focus on gender, and only a few considered other demographic variables
The need for increase in sales performance is one that is common and important to all business organizations. For a business to achieve this, its target market must be aware of the organizations products or services. This can only be achieved when an organization advertises (Leppäniemi and Heikki, 2005).
In this era of changing and ever so stiff competitive business environment it is generally believe that a business organization that doesn’t advertise is like a man winking in a dark room filled with other people. Only he knows what he is doing but others do not.
Organizations today face similar challenges – enhance price performance, increase satisfaction and retention, improve productivity and efficiency, while streamlining business process and driving bottom-line growth; all these are key to superior performance delivery.
The task of delivering outstanding performance has become more complex. Increasing, it involves the design of management structure and control systems that drive strategic change.
Capitalize on new opportunities and minimize risk-all without hindering the company’s flexibility and creativity. No longer is it enough for top executive with responsibility for performance and competitive positioning to explain past results. Now they must understand how to communicate, implement and control corporate and business-unit strategy with metric/dashboard to show result delivery and accomplishments in performance.
Organization whether big or small should therefore involve themselves in one form of Advertising or the other in order to enhance sales performance.
1.2 STATEMENT OF RESEARCH PROBLEM
It has always been a problem to ascertain whether or not advertising has any correlation or bearing with corporate performance. Also, most people wonder if the amount spent or budgeted on advertisement annually does directly translate to all that is required to say a company has performed.
The focus here will be to have series of corporate performance analysis in terms of top-line and bottom-line growth i.e Revenue and Profit matched against Advertisement cost over several years (minimum of 5 years). This could also be drilled down on various product brand performance during the same period as highlighted above. Corporate performance is vital to the organization continual existence.
Technological advancement in the economy has led to change of the taste of some passengers. The problem then arises of the need to enlighten the targeted market and make them aware of the current and advanced state of the products and services.
This study is thus an attempt to assess the impact or effect of media advertisement on sales of consumer goods.
1.3 OBJECTIVES OF THE STUDY
The main objectives of this study it to examine the effect of Advertising campaign on sales of consumer goods. To achieve this, the following specific objectives shall be our guide.
· To determine the impact of media advertising enhances consumer’s patronage of consumer’s goods.
· To determine whether media advertising activities influenced consumer buying behaviour and increase consumption pattern.
· To determine whether media advertisement enhances consumer’s loyalty.