THE EFFECT OF ADVERTISING ON SALES VOLUME OF AN ORGANIZATION

THE EFFECT OF ADVERTISING ON SALES VOLUME OF AN ORGANIZATION

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
Advertiser’s primary mission is to reach prospective customers and influence their awareness, attitudes and
buying behaviour. They spend a lot of money to keep individuals (markets) interested in their products. To
succeed, they need to understand what makes potential customers behave the way they do. The advertisers goals
is to get enough relevant market data to develop accurate profiles of buyers-to-find the common group (and
symbols) for communications this involves the study of consumers behaviour: the mental and emotional
processes and the physical activities of people who purchase and use goods and services to satisfy particular
needs and wants. Advertising is any paid form of non personal presentation and promotion of ideas, goods, or
services by an identified sponsor (Kotler and Armstrong, 2010). There are various forms of advertising like
informative advertising, persuasive advertising, comparison advertising, and reminder advertising. Informative
advertising is used to inform consumers about a new product, service or future or build primary demand. It
describes available products and services, corrects false impressions and builds the image of the company,
(Kotler, 2010).Advertising can be done through print media which includes news papers ,magazines ,brochures
,Audio media for example Radio, and visual media which includes billboards, and television (Kotler and
Armstrong 2010).
Sales performance describes the trend of collections in terms of revenue when comparing different periods (MC
Cathy, 1994). The sales may be in form of offering products or services to consumers. A service is any activity
or benefit that one party can offer to another that is essentially intangible and does not result in ownership of
anything (Kotler and Armstrong, 2010).Sales volume is the core interest of every organization and is based on
sales and profit .When volume goes up profits rises and management in organizations is made easier.

1.1.1 ORGANIZATIONAL PROFILE
The Nigerian Bottling Company Ltd is one of the biggest companies in the non-alcoholic beverage industry in
the country and is the sole franchise bottler of The Coca-Cola Company in Nigeria.
The Nigerian Bottling Company serves approximately 160 million people by producing and distributing a
unique portfolio of quality brands, bringing passion to marketplace implementation, and demonstrating
leadership in corporate social responsibility.
NBC Ltd started operations in Nigeria in 1951. Based in the city of Lagos, it operates 13 bottling plants across
the country. In addition, we channel products through 59 warehouses and distribution centres. The company
employ about 4,800 people and indirectly support the jobs of up to more than a million more in our value chain.
Nigerian Bottling Company aims to be customers’ most preferred supplier, and conduct programmes to support
more than 450,000 customers who sell their products to consumers.
The company is part of the Coca-Cola Hellenic Group , one of the largest bottlers of The Coca-Cola Company’s
products in the world, and the biggest in Europe. Coca-Cola Hellenic operations span 28 countries , serving
more than 570 million people. The company is headquartered in Athens and listed on the Athens, New York, and
London stock exchanges.

THE EFFECT OF ADVERTISING ON SALES VOLUME OF AN ORGANIZATION