THE IMPACT OF ADVERTISING ON THE PROFITABILITY OF A MANUFACTURING COMPANY (A CASE STUDY OF LEVER BROTHERS NIGERIA PLC, LAGOS)

ABSTRACT

 The impact of advertising in an emerging economy is a subject of controversy among businessmen, scholars and critics. Indeed diametrically opposed views are express on the subject matter. Some businessmen and scholars embrace advertising as a veritable engine of a growth while some critics condemn it as a tool for exploitation. The research emphasizes that advertising but strive towards profit maximization via more sales arising from information campaigns. Advertising can be regarded as a selling message published or transmitted in a information as newspaper, magazine, television, posters and host of other miscellaneous channels of mass communication. It makes it easy to sell goods product on large scale also make selling a chapter operation. Advertising equally has more power to persuade than the average individuals or some organization both in times of available reasons as access to the channel of mass communication. Lastly, the production or services advertised, the approach and the context of the advertisement often convince buyer towards purchasing that particular product or service.

CHAPTER ONE

 

1.0       INTRODUCTION

1.1       BACKGROUND OF THE STUDY

The importance advertising on a product of manufacturing company cannot be over emphasized. Advertising as old as human existence. It can be regarded as any paid for of non-personal communication which is directed to the customer or target audience through various media in order to present and promote products, services and ideas.

Also advertising is a branch of commence which is used to create awareness for a particular product and acceptability that brings about profit maximization to the manufacturing company.

Over the years, advertising has therefore become an accepted norms among manufacturer as a means of getting their customers acquitted with the existence a product or service at the lowest possible cost.

According to Agu (1990) explain that one of the strategies for consumption grows by advertising this bridging the gap between product and consumption of goods. The main objective of any manufacturing company is profitability through the sales of its products.

This shows that profitability can only be guaranteed by selling a desired sales volume. To achieve this, the manufacturer must communicate with their customers through advertising. They must advertising continuously in order to win the confidence and operation of trader and support of the customers. It is therefore imperative that advertisement is very expensive that but the absence of it can lead to organizational suicide.

 

1.2       STATEMENT O THE PROBLEM

This project is aimed at finding out and providing solution to the following:

  • The extent to which advertising has aided the profitability of manufacturing companies,
  • The most effective promotional tool that makes customer aware of particular product,
  • The problems faced by manufacturing companies in using a particular promotional mix,
  • Profit maximization and cost minimization of manufacturing companies are at cross road,
  • The acceptability of the product to the targeted customer.

All above will be examined with a view to providing appropriate solution.

 

1.3       OBJECTIVE OF THE STUDY

The primary purpose of this study is to examine the roles played by advertising in contributing to profitability. It will also be examine the promotional tools on the sales level of the organization.

Also another objective of this study is to examine the various types of advertising carried out by the company. The problems inherit in each of them and the appropriate solution to each problem.

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