CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The impact of advertising for businesses and brands in the 21

st

century has

become imperatively permanent and therefore cannot be overemphasized.

Advertising it is generally believed dates back as old as man himself

and thus has been present in his economic and socio-political life before recorded

civilization began.

Sapso (1975 p. 9) opined; “there is little doubt among trade men and

merchants to make good their waves has had on existence almost as long as the

customs of buying and selling and it is but natural to suppose that advertisement

in some shape or form have existed not only from time immemorial but almost

for all time”.

Anyone living and working in any modern day society today is directly or

indirectly under the influence of advertising as businesses (domestic and trans-

national) have tapped and ceaselessly benefited from the visibly roboust

economic rewards that accrue steady sensible communicative persuasive and

convincing advertising whether through the media (electronic and print) or

through marketing drives from personal relations the fundamental imitative has

always been getting goods products and services through to the largest and

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smallest demography of consumers at optimum costs with maximum profitable

benefits.

Unique products and service delivery alone this days as enterpreneually

standard and convincing to customers as they might seem has been proven not

enough for the ever evolving “consumer service provider” traffic especially in

advanced and developing countries like Nigeria where radio and television

viewership and listernership has astronomically enlarged respectively.

The hospitality industry hotels to be precise need not lag behind the

blazing and beneficial trends of advertising.

The (Hotels) have employed intensive ways to get their product and

services known to not only their steadfast local customers but also to visitors and

whomever is in need of such as the need arises. These string of advertising drives

are geared towards appetizing the perchant of the consumers and are

systematically funded by the company depending on the strengthen of its

financial muscle. Most often determined by the annual budget allocation to

advertisement.

In Enugu the Coal City the hotel industry is undoubled by one of the

most influencial non-civil service business employing over an average of 20

workers in the state with a population of less than 4 million people. Hotelling is a

good and tangible employer of labour fuelling up to a staggering 10% of the

state economy according to trade invest Nigeria (2011).

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These figures point to the importance of this hospitality industry in the

state so getting across to the 4 million people through advertisement in the

electronic media should have a chain or feedback effect on the financial figures

of any good hotel in an ideal location with an array of modern facilities and a

good management.

Top Rank Hotels a three block hotel located at No 1 Hill View

Independence Layout at the popular Enugu State Broadcasting Services (ESBS)

Junction is a well finished edifice that stands conspicuously apart when it comes

to Independence Layout. As a three star hotel employing more than 50 staff

managers inclusive it boasts of state of the art decor contemporary style

bedrooms complimentary wireless high speed internet access. Fitness room

constant power supply swimming pools with 216 well appointed and furnished

rooms and suites suitable of all tastes and budgets.

Conventionally a hotel generates profits from lodging budgets hosting

events in Halls like conferences social gatherings food and beverage services

and incurses expenses from maintenance work cost of running enquires for

electricity due to the epileptic power supply.

The Nigeria television Authority National network connecting Nigerians

and popularly held as the larges television network in Africa located a stone

throw from the hotel is an added advantage as advertising on the station will

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generally enhance the spread needed for greater patronage not only locally but

across Nigeria. A business Oasis for any seven-eastern investment.

1.2 Statement of the Problem

The essence of this research project is to establish and examine the correlation

between Top Rank Hotels profitability and the publicity given to the hotel from

the Nigerian Television Authority (NTA channel channel 8).

As a business organization in Enugu state Top Rank Hotels Limited

annual profit indices are supposed to be an outcome of many economic social

and human forces.

Advertising from the introduction has been proven to enhance patronage

so all things being equal; the problem here would be what impact does a standard

level of publicity on N.T.A have on the general profitability of Top Rank Hotels

bearing in mind the reach and customer base of the station.

Thus the project work main challenge is to determine the impact of Top

Rank Hotels profitability through advert in N.T.A. Enugu.

1.3 Objectives of the Study

The study have the following objectives:

1. To access the gain the hotel stands to obtain from aggressive advertising.

2. To find out how the hotel budget for advertisement

3. To find out how NTA Enugu charge for advertising.

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1.4 Research Question

1. What is the overall gain to Top Rank Hotels from aggressive

advertisement?

2. To what extent does the hotel budget for advertisement?

3. In what way does N.T.A Enugu charge for advertising?

1.5 Scope of the Study

This project research work is all about the market viability of product and

services rendered by the organization Top Rank Hotels; the managerial prudence

and administrative master strokes of budgeting for advertisement avoiding over

expenditure on them nature and class of the advertisement timing and on the end

point. The impact of this advertisement is entirely of the business profitability

and relevance.

The researcher domain stems from the use of advertising as a tool for

publicity and passage of information from the hotel to its customers (old and

new) who from the stretch of viewers on N.T.A Enugu channel 8.4. It also reflect

on the effect of this information passed to customers at home and on the – go

regarding patronage of the service and subsequently the attendant profitability

there in.

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1.6 Significance of the Study

It is a widely accepted notion that advertising in forms the consumers about the

quality and availability of product and services offered and rendered by the

organization in this case Top Rank Hotels this act of publicity has been either

overated or underated based on its after effect on such trends or brands and

businesses. Thus this research tends to bring about a correct and more

understandable dynamic between what is advertised who advertises who views

what is advertised and so on.

The research is expected to develop and enhance effectiveness in the

advertising drives of privet companies especially hotels in the state and the

nation in general.

It will be of immense benefit to both scholars and business operators by

identifying the lapses inherent in the process of taking the news of a new service

or product from the producer to the consumer.

1.7 Operational definition of Significant Terms

a. Advertising: This is the non-personal communication of a message from

a producer to the customers persuading convincing about a product or

service usually through paid for commercial or billboards.

b. Tens-National: This refers to any business that has an effect across more

than one country world famous brands like coca –cola.

c. Impact: A strong effect or impression

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d. Apathy: A feeling of having no interest in something.

e. Profitability: Is the primary goal of all business ventures.

f. Hotels: A usually large house or building where travelers holiday makers

etc may receive food lodging etc in return for payment.

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