THE EFFECTIVENESS OF ADVERTISING ON ORGANIZATIONS PROFIT MAXIMIZATION

CHAPTER ONE

1.0       INTRODUCTION

1.1       BACKGROUND TO THE STUDY

Before the era of industrial revolution, the pattern and method of salesmanship was crude and cumbersome. This limited organizations market share as well as profit. Advertising is a powerful communication force and vital marketing tool which helps to sell goods, services, ideas and images through channels of information and persuasion.

The effectiveness of advertising is seen in its nature which is persuasive. As a part of marketing mix which can be used to persuade whole sellers and distributors of products to collect stock and to persuade consumers to buy the products. Advertising has many benefits which accrue to the advertiser which is the organization, the environment and ultimately the society at large.

As a promotional tool, advertising remains a strong force in the hands of business entities. A popular saying has it that if you don’t blow your trumpet, nobody will do it for you. This and many more are what advertising does for business organisation. It creates awareness of, packages the product, service, idea, etc and presents it to the intended consumers while at the same time guiding them in making the right choice.  

The following definitions and opinions of some authorities and schools of thought on the meaning of advertising will perhaps grant more insight into the concept. According to the advertising age an advertising magazine the views of some professionals in the field are summarized thus: “Advertising is the printed, written, spoken or pictured representation of a person, product, service or movement openly sponsored by the advertiser and at his expense, for the purpose of influencing sales use, vote endorsement.

Statton, (2002) sees advertising as consisting of all the activities in presenting to a group, of non-personal oral or visual openly sponsored message regarding a product, service or idea.

The American Marketing Association (AMA) defines it as any form of non-personal presentation and promotion of ideas or service by an identified sponsor requiring on mass medium.

Finally Starch, (2006) sufficiently defines advertisement as: the paid form of mass communication designed to influence people to favour a product in order to induce them to buy it. From the definitions and views above one can begin to see that advertising has the following and more purposes for business organizations.

  1. To create awareness of the availability of products services, persons, idea etc.
  2. To educate the target consumers on the constituents of what is being advertised.
  3. To offer additional services such as how to use the product, where to get it and at what cost
  4. To induce sales
  5. Ultimately to increase and maximize profit thereby enhancing the revenue base of the organization.

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