A STUDY OF ADVERTISING STRATEGIES OF AMAECOM GLOBAL LTD., UYO
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Advertising has become a powerful communication tool in passing messages about the products and services to both customers and potential customers. When there is adequate awareness through advertising, high patronage will be achieved, which will result in increase in sales, productivity and product level of the organization.
Adamu (2000) however observes that poor product communication to the final consumers could give competitors an edge in terms of loyalty to brands, sales volume and high market share. Consequences of this has been the major setbacks for matured industries.
Akanbi and Adeyeye (2011) believe that advertising campaign alone cannot be responsible for recorded increase in its sales after campaign. Other unrecognizable factors like higher income for potential customers, reduction problems of competitors, improved customer relation of distributors and retailers and other unnoticeable factors apart from the campaign may be responsible for the company’s improved sales.
Morden (1991) believes that advertizing gives the knowledge about the product and create the idea in mind about it. Busari (2002) as cited in Adekoya (2011:13) says that:
Advertizing can also be seen on the seats of grocery carts, on the wall of airport walkways, on the sides of buses, airplane and train. Advertisements are usually placed anywhere an audience can easily and/or quickly access visual and/or video.
Edem (2000) says that advertizing as a subset of promotion mix has a significant effect on sales turnover. Adekoya (2011) adds that advertising influence consumer buying behaviours, which means it helps to increase sales turnover. It is on this premise that all advertisements are targeted towards ensuring potential customers patronage.
Nigerian consumers are becoming unsatisfied especially in the area of exposure to advertizing messages. This is largely due to their expectation of good value for the money spent.
Pike (2008) asserts that marketers are now faced with escalating media costs, often in tendem with declining advertizing budget, thus leading them to increased interest in below the line promotional opportunities.
According to Kotler (2009:118):
Marketing is totally about customers, hence the core mission of marketers is to provide the solution to customers needs and wants by identifying and meeting them. There are four main factors on which marketing have been built up: these are four elements of the marketing mix: place, product, price and promotion.
Advertising as a component of the promotional mix further enhances creation of customers’ awareness towards organizational products and then the need to patronize such products if it meets the needs, expectation and satisfaction of the consumers (Belch & Belch, 2003).
Advertising strategy denotes a campaign developed by a business to encourage potential customers to purchase a good or service. It is generally tailored to a target audience perceived to be most likely out of the population to purchase the product.
Advertising strategies include elements such as geographical location, perceived demographies of the audience, price points, special offers and what advertising media such as billboards, websites or television will also be used to present the product.
This research thus seeks to examine the strategies of advertising adopted by Amaecom Global Ltd., Uyo, indicating how it leads to growth and productivity.
1.2 Statement of Problem
Advertising is believed to have a central purpose of influencing customers’ purchasing decisions to favour an advertized product. This is actualized through a combination of persuasive and attracting messages. However, the success or failure of an advertizing message to a large extent, is dependent on strategies employed and media channel utilized.
Strategies of advertizing with responsive persuasion enhances product selection. It must possess attention catching potentials capable of drawing customers attention to products.
Eventhough advertising strategies propel sales, it must hover around effective media choice and understandable copy messages. It is therefore uncertain the strategies of advertizing that serve audience interest. This study in examining this trend raises the following questions: What strategies does Amaecom Global Ltd. employ in product advertizing?
1.3 Objectives of the Study
The objectives of the study were to:
- Ascertain the strategies of advertising employed by Amaecom Global Ltd.
- Determine the appropriateness of advertizing strategies used.
- Ascertain whether these strategies help in enhancing product sales.
- Outline channels of advertizing employed by Amaecom Global Ltd.
1.4 Research Questions
The following questions were raised in the research:
- What are the strategies of advertizing employed by Amaecom Global Ltd?
- To what extent are the strategies of advertizing used by Amaecom appropriate?
- Do these advertizing strategies promote product sales and patronage?
- What channels (media) are used in Advertizing Products at Amaecom Global Ltd.?
1.5 Significance of the Study
This study on the strategies of Advertising will enhance an understanding of how advertising works, its processes and strategies, as well as how it enhances product sales, especially at Amaecom Global Ltd.
Moreover, management of Amaecom Global will use the findings to know the level of patronage of it products. This will be possible considering its existing strategies in advertizing its products.
In another development, this study will provide more insight on how to place advertisement copy in order to attract potential customers. This is possible as the study outlines appropriate channels of advertizing and related strategies.
Above all, this study will add to collections of literature on advertising and also serve as a measure of secondary data collection.
1.6 Delimitation of the Study
This study delimits itself to the study of the advertizing strategies adopted by Amaecom Global Ltd., indicating how it promotes sales and patronage.
1.7 Limitations of the Study
Several factors limited the overall success of this research. The time allotted for this study was grossly inadequate and did not allow for effectiveness of the study.
Moreover, the researcher encountered challenges in gathering both secondary and primary data for the research. The respondents were mostly non-challant in responding to research questions inherent in questionnaire copies administered to them.
However, the above stated challenges were overcame with the researcher personally interacting with the respondents, to simplify the goals and objectives of the research as well as the importance of their responses.
1.8 Definition of Terms
The following terms were defined as used in the study.
- Advertising: This means any non-personal communication of goods and services using a known media of communication usually by an identified sponsor.
- Strategies: Strategies indicate patterns, processes, method or procedures of carrying out an assignment.
- Marketing: Marketing has to do with the use of persuasive communication messages to propel product sales.
- Patronage: This shows the degree of preference, or sales of goods or services.
1.9 History of Amaecom Global Ltd
Amaecom Global (Nig.) Ltd. was incorporated in 2004 as an indigenous company in Nigeria with the Corporate Affairs Commission to provide professional services to (personal) and corporate/business asset acquisition as well as alternative one.
The company has gained extensively/valuable experience in their chosen area of business and the challenges faced in developing third world countries.
The company is largely into acquisition of assets as well as financing of programme. The company was formed by Dr. Mariel Ofomata and has Mr. Ifiok Umana as Executive Chairman. Its corporate headquarter is at No. 18 Nyong Essien Street, Uyo.
