INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Advertising is a tool which is used to communicate message to

consumers the general public and special people such as voters

and to the carriers of the messages like televisions newspapers and

magazines known as the media. Unlike personal selling some sales

promotion and public relation techniques advertising is an

impersonal means of communication. It is an impersonal promotion

to groups and paid for identified sponsor.

It focuses upon groups of persons rather than upon individuals. This

is because the sales volume cannot tailor advertising messages

according to the peculiarities of individual consumer but rather aim at

the group for the rate of turn over moreover the advertising feedback

mechanism is not as precise as personal selling sales person are

able to adapt their message to the unique needs interests and

characteristics of individual prospects. An identified sponsor pays for

advertising each advertising message indicates who are the

sponsors. However this means of promotion is expensive unlike

mere publicity which can be free.

Advertising has grown in recent times due to relative increase in

productivity and consequent changes in the uncontrollable marketing

environment where corresponding changes in technology

socio-cultural patterns economic ventures and legal advancement

also take place. The target rate of return is important in order to

determine the percentage of discount you want like use the volume

oriented objective which include the rate and number of products that

are sold for the product penetration in order to gain more consumers

it is not enough to produce and simply anticipate that consumers

would become aware of the product and your sales volume will

increase especially in a developing country like Nigeria the producer

has to engage in promotional activities in other to asserts that

advertising plays vital roles which include:

1. Making consumers to be aware of the existence of new

products services or ideas and the continued existence of older

ones. It will not be easy for members of the public to be aware

of these without advertising.

2. It also informs and educates the people on how to make use of

the product or services.

3. It also informs people where to obtain goods and services.

In essence advertising is among the various devices that designed to

pull or push products through the market and the resultant effects of

the use of advertising is an increase in the sales volume as compared

to the past records in which advertising were not used. The

advertising can be such as a form of promotional/communication mix

which greatly enhances the sales of a product.

1.2 STATEMENT OF THE PROBLEM

The success of a production company depends mostly on the volume

of sales it can make from its product. This in turn depends on the

extent to which it is able to make the public aware of the existence

and quality of the products hence the necessity for advertisement

inspite of the enormous cost of advertising.

Many organisations have no doubt spent so much money in order to

generate public awareness on its product. In the process of

executing this enormous and unavoidable function the incidence of

cost is transferred to the first consumers who have to pay exorbitantly

for the product. The main purpose of embarking on a research of this

nature is to among other things determine the impact of advertising

on the sales volume of beverages.

1.3 OBJECTIVES OF THE STUDY

The purpose of the study is to investigate the impact of advertising on

sales volume.

1. To examine effects of advertising a product with special

reference to Nigeria Bottling Company.

2. To determine the extents to which advertising helps to

differentiate products.

3. To find out whether advertising leads to impulse purchase and

increase the volume of sales.

4. To determine how actual and potential buyers can be convinced

of the superiority and benefit of the company product or service

over that of its competitors.

1.4 SIGNIFICANCE OF THE STUDY

Without advertising consumers will be ignorant about the availability

of product in our local shops departmental stores and the

manufacturers and sellers will not get adequate returns on their

investments which may lead to slow down in national economy.

However advertising should rather be viewed as improving the

standard of living and that through advertising many of the accepted

necessities of everyday life luxuries yesterday and what many

people regard today as completely received from this enjoyment may

become acceptable condition of life and base for higher aspiration for

tomorrow.

In conclusion advertising has remarkable influence that leads to

encourage stimulating and creating awareness in the minds of the

consumers to buy goods.

1.5 RESEARCH HYPOTHESIS

H

o

: That advertising does not have a positive impact on the sales

volume of a company.

H

1

: That advertising has a positive impact on the sales volume of a

company.

1.6 SCOPE OF THE STUDY

The scope of the study is focused on “the impact of advertising on the

sale volume of beverage in Nigeria Bottling Company. The data and

information required is restricted to the management and staff of

Nigeria Bottling Company.

1.7 LIMITATION OF THE STUDY

During the course of this investigation the researcher encounter a lot

of shortcoming in the design and execution of the research which are:

1. Lack of adequate reading materials. The library which is

suppose to be equipped with current and enough text books

and journals lacks sufficient supply of all these.

2. Gathering of information from the various respondents was also

a constraining factor. This is due to the fact that most of them

are located far apart.

3. Inaccessibility to some vital document to retrieve some vital

information from Nigeria Bottling Company (NBC).

1.8 DEFINITION OF TERMS

Identified Sponsor: They are individuals or companies solely

recognized for sponsoring a programme.

Consumers: They are individuals that consume the product i.e. they

are the buyers.

Nigerian Bottling Company: The Nigeria Bottling Company Plc

markers of Coca-Cola products i.e. Fanta Coke Sprite etc.

Product: They are tangible items that you can see feel touch

simply put they are the end products obtained from