Effects Of Advertisement On The Success Of Small Scale Business

CHAPTER ONE

INTRODUCTION

1.1 Background Information

Concept of Advertisement has not only become an integral part of our society as economic system, but has also grown over the years to assume tremendous proportions both as a business activity and as a social phenomenon.

This has affected not only the business sector, but also the whole society. Advertisingisapowerful 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 of identified sponsorship. All about advertising is a sponsor sending a message called advertisement through one or more mass media (radio, television, newspaper, and magazines) to reach large member of potential users or buyers of a product by itself, advertizing is a vital marketing tool that helps to sell goods, services, images and ideas through information and persuasion, many 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”. Efosa, (2017).Said advertising 15 a way of projecting values, ideas, expectation andso on to consumers. It is most effective as a reinforce of favourableattitudes, values and disposition already held by consumers. Advertising has a high public communication, its public nature confers a kind of legitimacy to the product and also suggests a standardízed offering.

Besides, it 1s a persuasive medium that permits seller to repeat a message of competitors. It provides opportunities for dramatizing the company and its products. Advertising in small organization is handed by a specialist in the sales department who from time to time consult the advertising agencies. Over past 15 years in the Nigerian market, Du fil Group has had a remarkable impact on the Nigerian culinary andscape. The company’s product, Indomie Instant Noddles which appeals to several demographic group has grown to become a household name across the country ( Olatunji 2015)

Advertisement is anything that draws good attention towards these things. It is usually designed by an advertising agency for a sponsor or brand and made public by various media. Advertising plays an important role in our everyday life. It mainly determines the image and way of life and it has an impact on our thinking as well as on the attitude towards ourselves and the world around us. Advertising shows us ready forms of behavior in a certain situation. It determines what is good and what is bad. We buy what people say or “advise”. I chose this topic because it is very relevant today and it is interesting by its complexity and psychological essence.

Everyone, even without realizing it, is influenced by advertising. We do not notice how it affects us. We have become slaves of scientific and technical progress, and advertising uses that skillfully. The pressure of advertisement is growing every day. A significant amount of money I5 spent on advertising campaigns bringing to the companies multi-billion profits.

Moreover, it is a “product of the first necessity” for any enterprise, aimed at a commercial success, and it is becoming more and more expensive (Adetola 2014).

Advertising is directly linked to politics. It determines not only the toothpaste, but also the choice of political candidate. In the end it determines the path of political development of the country and the politics itself. This advertising is very important in our society.

Small and medium enterprises (SMEs) are generally thought to play a crucial driving economic growth in both development and developed countries (Beck, Nuuand Ross, 2013). Thus, it remains unequivocally crucial to understand the categories of contribution of small businesses at a local level and its impact on overall economic growth. Kenya a developing nation for instance still has a poor statistical base the small businesses but there can be little doubt about the relative significance these small enterprises have towards its economy. Small and medium enterprises (Si have been described as efficient and prolific job creators and the seeds of big businesses; their increased development accelerates the achievement of Wider economic and socio-economic objectives such as poverty alleviation.

Notwithstanding the recognition of the potential roles the SMEs play, there exist a number of bottlenecks that affect their ability to realize their full potential.Observations have shown that there is a rapid turn-over of enterprises in Kenya toan extent that for every 100 new enterprises starting in a year; 60 close down within the vear and that of those that survive (40%) are more than two years old and 66% less than six years old (Kenya 1998, 1999). Lack of managerial skills, equipment and technology, regulatory Issues, access to international markets, unfair competitiveness, etc are all factors that hamper their development hut mo. distinctively financial constraints (Anneler and delbel, 2017). The role of finance has been viewed as a critical element ror the development of SMEs Thie: S from the initial capital which in most likely cases is sourced fr

tal which in most likely cases is sourced from informal savings and loan associations which are unpredictable; to broader f anpredictable; to broader financial obstacles that extend to efficient and effective marketing. As will be evident in this study,  require marketing initiatives for their sustainability and growth in the ever-growing and competitive business environment. In particular, the question and relevance or advertising, an element of promotion will garner more examination

1.2 Statement of Problem

The prevailing paradigm in consumer research conceives of the consumer as someone who is information-centered. This model defines the consumer as someone constantly seeking out and manipulating information in order to make choices between consumer goods and services. , Advertising helps to make consumers aware ofa product and aims to build preference for that product over its competitors.If advertising succeeds in those two tasks, consumers will choose the advertisedproduct when they make their next purchase. It is as a result of this, this study examines effects of advertisement on the success of selected small scale business in Mainland Local Government Area of Lagos State.

1.3 Purpose of the Study

The following purposes helps to guide the study:

• To determine the level of awareness of new product in the market as a result of the firms advertising of the new product.
• To ascertain the level of advertisement in increasing the sale’s volume of the company’s product.
• To show if advertising have a positive effect on the success of small scalebusiness in Mainland Local Government
• To determine if advertising help in establishing and maintaining the company’s image.
• To determine whether advertising is an efficient source of information to prospective consumer
• To show how advertising encourage regular purchase

1.4 Research of Questions

1. Does advertising have significance impact on customer awareness of new product?
2. To what extent has advertising increase the sales volume of the company’s product?

• Does advertising has a positive effect on the profit of small scale business?

1. Does advertising help in establishing and maintaining company’s image?
2. Is advertising an efficient source of information to prospective consumer of small scale business?
3. Does advertising encourage regular purchase on products?

1.5 Significance of the Study

The following are the significance of advertising on a new product;

It will help the management of indomie instant noodles to discover failure in their advertising techniques and steps on how to make improvement on them.

The study will help the management to know how best or the best way through which improvement in advertising could be achieved.

The study will unveil the failure and problem that industries do encountered  from its competitors.

The study will reveal measures which the industry will embark on, so as to ascertain thecompetitors industry and also to know how it satisfies consumers.

Will create awareness on the part of choice of the product in line with the consumers needs.

1.6 Scope of the Study

The work therefore did not consider other variables under promotion mix. However, in view of limited resources time and other constraints, emphasis will be placed on advertising on the success of small scale business in Main Land Local Government of Lagos State.

1.7Operational Definition of Terms

Some of the terms used by the researcher in the case of this research work are defined

as follows:

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.

Product: According to Kotler Philip, a product can be defined “as anything offered to a market for attention, acquisition or consumption”. It includes physical object,services, personalities, place, idea etc.

Target Market: This is the segment a firm choose to pursue.

Competition: This Is a situation in which people or organization compete with other for something that is not everyone can have.

Marketing: This is a social process by which individual and groups obtain want they need and want through creating, offering and freely exchanging product and service by value with others.

Customer: This is a person that used a product being either or given to someone for use.

Management: This is the preparing, directing, planning, organizing people and material in order to attain business objectives