CHAPTER ONE
1.0
INTRODUCTION
In our contemporary world,
advertising serves as one of the media vehicle through which any organization
or potential buyers of goods and services and to form direct communication of
persuasion nature to existing customers or the generality of the populate. In
communication system (through whatever means can deliver its message to
recipient or receiver in a way and manner that the receiver will receive and
perceive the message.
The word advertising is derived from
the Latin word advertisers and meaning it turn literally, it means to turn
people’s attention to specific thing”.
Nothing definite can be said to how ad is the method of advertisement.
It was originally used to warn public against something either drive or attract
the public from something bad or good. It is presumed that the first
advertisement was sometime in the form of stenciled. Inscription which were found
on earthen bricks prepared by the Babylonians above three thousand years before
Christ.
In the olden days, the advertisements
were more passive and extremely limited in scope. The earliest forms where
signboards and writing on the walls of prominent buildings. The art of printing
further aided in the technique of advertising through hand bills magazines and
newspapers pamphlets and hand book.
In a free or capitalist economics,
promotions play an important rule. This is
creating awareness for new product. This fact has been established by
marketing experts. As a tool, promotion can be used for not only creating
product awareness but also in estimating demand through a variety of
techniques. The techniques are advertising, personal selling, publicity and sales
promotion. Firms can use any of these or
a combination of one or more to achieve their promotional goals, depending on
the nature of the product, the firm financial strength etc.
Due to springing up of noodles
manufacturing industries in recent years, with existing of the imperfect
competition and different brands in the noodle market there is the need for
effective advertising strategy which will not only informs and persuade, but
also remind the customers to maintain the brand.
In the present day competitive
environment in our business set up especially in noodles industries in Nigeria,
it is absolutely imperative for the strategy resembles and immeasurable
investment to the organization in which a return is expected. The Indomie manufacturing
company should find it necessary to design advertising campaign in such a way
that will attract the attention of customers invariably this will end and the
strength of its product line and sales.
This research is therefore intended
to analysis the extent to which DUFIL marketing company limited is using
advertising strategy in the sale of its new product in the face of its competitors
offering the same noodles, it also intended to highlight any constructive
alternative or suggestion for overcoming any advertising bottle neck that might
arises.
1.2 STATEMENT OF PROBLEM.
The basic problem for research is to
justify the effectiveness or impact of advertising to adopt make sales
especially during the introductory stage and why is it that during introductory
stage of the product life cycle a new product dies not reaching the growth or
maturity stage. What method(s) of advertising are to and whether those methods
are actually effective enough to achieve the desired goals.
Over the years, many organization in
Nigeria seems to believe that once goods or services are produced, there is
ready market for such goods and services.
As they do not seem to recognize or appreciate the place or role of
advertising towards achievement of their organizational profit or sales objectives.
1.3 OBJECTIVES OF THE STUDY.
In the kind of adventure, there must
be a study to ascertain its success. If that is a general and acceptance
principle the researcher also has some reasons in going into the study under
consideration. In view of fact, this study is carried to achieve the following
objectives.
1. To examine the significant of
advertisement as it effects the development introduction and growth of new
product in the market place
2. To access the degree of the effect of
advertising on new product performance in comprise with competitive product in
the market place.
3. To determine the degree of
association that exist between the advertising expenditure, and the annual
turnover/profit.
1.3. SIGNIFICANT OF THE STUDY.
This project will be of importance to
the (DUFIL)company limited in adopting a more effective way of advertising to
take care of uncertainly in the future which is likely to occur in the industry
especially in marketing new product entrance. The finding of the study will
also be of immense benefit to other companies who may wish to carry out further
research work on how advertising can be used when a new product is introduce
into the market. The finding will be useful to the marketing department of
Kaduna polytechnic who may be interested in researching further into advertising
new product or services in Nigeria and final year student in particular who
will graduate and go into business word to face problem in the advertising
system of the organizations, the student may find themselves.
1.4 SCOPE OF STUDY
The study is concern with
advertising as a promotional tool for marketing
New product a case study of the DUFIL
manufacturing company in the advertisement of noodles manufactured by DUFIL and
would in addition be limited to the company’s area of operation due to the financial
and time constraints
1.5 LIMITATIONOF THE STUDY
The
scope of the research is limited by factors inherent in our environment such as
finance, time and attitude of respondents. The limitation encountered in the
course of the investigation are listed below.
It is evidently clear that things
are very difficult in Nigeria these days. This problem becomes more apparent
due to the high cost of transportation, a considerable increase in price of
writing, typing and binding material at the time of writing this project due to
the devaluation of Naira.
The researcher had struggle in
between lecture period and data collection. As a result of this, some places
which were to be visited were abandoned.
The attitude of some consumers or
customers who could not, fill the questionnaire correctly and even some did not
return the questionnaire at all. Also attitude of the administrative marketing
manager of DUFIL towards answering questions. There was the suspicion that
information revealed could be used to the detriment of the company, or could be
revealed to competitors despite the assurance from the researcher that all
information provided will be treated with utmost secrecy.
1.6 STATEMENT OF HYPOTHESIS
For the purpose of this study the following hypothesis have
been formulated
H0: Advertising is insignificant in the new product development
and sales process especially in DUFIL
H1: Advertising is significant in the new product development
and marketing process especially in DUFIL
1.7 DEFINATION OF TERMS.
1.
Marketing the management process responsible for identifying,
anticipating and satisfying customers requirement profitable.
2.
Product. Product is anything that can be offered to market for attention,
acquisition or consumption, it includes physical objects, services,
personalities, places, organization and ideas.
3.
Proportional tool. is are the various methods pf proportion that a
company can adopt. Such as advertising, personal selling, sales promotion,
public elations and publicity.
4.
Advertising this is a form of paid public announcement intended to
promote the sale of commodity or services or to bring about some other effects
desired by adviser. It is essentially a form of communication through such
diverse media as handbills, newspapers, letters and radio television broadcast.
5.
Market share is a firm percentage of the industry’s total sales.
6.
Invocation a new approach or concept in the, production cycle frequency
involving the use of invention practiced task.
7.
Product life cycle. Is an attempt to recognize district stages in the
sales history of the marketing of a product that begins with commercialization
and end with, removal from the market?
8.
Modification Any adjustment of an existing product settle and color or
model any product improvement or brand change.
9.
Media mass communication channel through which a message is passed across
to the audience for example, television, radio, magazine etc.
10.
Personal selling. The process of making oral commercial representation
during buying or selling interview or services.
11.
Marketing strategy. This is the
marketing logic by which the business units expect to achieve the marketing
objectives.
12.
Sales promotion. It has been destined as a short term incentive to
encourage purchase or sales of product or services.