Beruflich Dokumente
Kultur Dokumente
BY
ASMAJAFAR
DEPARTMENT OF ECONOMICS
DECLARATION
I hereby declare that this project is my original work and it has not been submitted in this form or any other form to this or any other institution for examination purposes. Any quotation made has been referenced accordingly.
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ABSTRACT
The study aimed at assessing the effect of advertising on the performance of an organization, case study being Mukwano industry in Kampala. The study was mainly looking at advertising and performance of Mukwano industry and if this was effective to the organization The researcher used a cross sectional research design with both qualitative and quantitative methods with a population study of 150people out of which a sample size of 40 employees was chosen .Stratified sampling design was used to divide the employees into strata which were departments under which the employees worked ,and they included marketing ,operational, production and supply departments .Using simple random sampling respondents were chosen from the different departments selected and questionnaires distributed to the selected respondents from the four departments in the industry. Both the primary and secondary data was used during collection of data. Data was collected by use of questioners and observation method s and analyzed in form of tables. Findings revealed that Mukwano advertises most of its products and it uses different forms of advertising and media, but the level of Mukwanos sales was declining despite of their frequent advertisements. There was a strong relationship of(r= 0.9 0)between advertising and sales performance.
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION CHAPTER 2: LITERATURE REVIEW CHAPTER 3: RESEARCH METHOLOGY CHAPTER 4: RESULTS CHAPTER 5: CONCLUSION CHAPTER 6: RECOMMENDATION REFERENCES
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INTRODUCTION
1.1 BACK GROUND 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). Mukwano advertises using visual media for example the television and the Audio the radio, print media for example the newspapers. Mukwano has launched a new detergent powder to compete in East Africa common market through intensive advertising internationally Daily monitor April 2010, but there are some inefficiencies in the way these organization carries out its advertisements for example Mukwano advertisements in the visual media is done in local language i.e. (luganda) a language that can only be understood by a few people in the country, making the advertisement appealing only to a group of people. The advertisements lacks the unique selling proposition in the statements used to differentiate their products from competitors, they are done in the same way as the competitors making it hard to differentiate its ads from others. Besides their advertisements dont provide room for further information about their product for clarification (Daily Monitor April 2010)
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Mukwano carries out frequent advertising of their products to increase their sales volume, through taking part in charitable funds in Uganda and even sponsoring sports .It advertises using radio, television and newspapers. Despite its efforts in advertising regularly the sales of Mukwano industry have not
improved to the desired targets. The sales in Mukwano for the past four years have been declining.
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Time scope The study looked at five financial years back that is 2006 to 2010
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LITERATURE REVIEW
Advertising is any paid form of non-personal presentation and promotion of ideas and goods, or services by an identified sponsor (Kotler and Arm strong 2010) .although advertising is used mostly by commercial firms, it is also used by a wide range of nonprofit organizations, professionals and social agencies that advertise their causes to various target publics (Philip Kotler and Garry Armstrong). Advertising is a non-personal communication of information usually paid for and persuasive in nature about products, services or new ideas by identified sponsors through various media (Arens 1986).
Forms of advertising
There are various forms of advertising that is informative, persuasive and reminder advertising. Informative advertising is used to inform the customers about a new product or feature and to build the image of the company. (Kotler and Armstrong, 1999).
Advertising media
Advertising may be done through various media like visual, audio and print media. Visual media may include television, bill boards, posters, prices with company product name and broachers .print media may include newspapers, brochures, stickers, magazines, business cards, new letters, and mobile vehicles. Audio media includes radios.
Advertising media
Advertising may be done through various media like visual, audio and print media. Visual media may include television, bill boards, posters, prices with company product name and
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broachers .print media may include newspapers, brochures, stickers, magazines, business cards, new letters, and mobile vehicles. Audio media includes radios. Deciding media timing is last step in choosing an advertising media. The company must decide how to schedule the advertising over the course of a year. Continuity or pulsing patterns may be chosen. Continuity means scheduling the adverts evenly within the given period while pulsing means Steps taken in setting an advertising budget Kotler and Armstrong further highlight the steps considered when setting the advertising budget .stage in product life cycle, new products typically need large advertising budgets to build awareness and to gain customer trail. Mature brands usually require lower budgets as a ratio to sales. According to David et al 1988, effective advertising decisions are aimed at supporting the marketing strategy for a companys products and also influences purchase decision. The first step in creating effective advertisement messages is to decide what general messages will be communicated to consumers. This involves developing an effective message strategy that begins with identifying customer benefits which can be used as advertising appeals. You can then create a compelling idea or concept that brings the message strategy to life in a distinctive and memorable way. This in turn guides the choice of appeals to be used in an advertising campaign. Advertising campaigns have three main characteristics; Meaningful, they should point out benefits that make the product more meaningful to the customers. Believable, customers must believe that the product or service will deliver the promised targets. Distinctive; be able to tell how the product is better than competing brands
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The only reason for advertising is to sell something that is product, service or even an idea (William J.s et al 1998). Many companies used straight forward method in determining advertising applications like percentage of sales, standard expenditure per unit, the task method / market share relations between advertising and sales revenue since there are mainly other factors that determine the sales revenue of a company like price, perception towards the product (kotler and Armstrong).
Sales performance
Sales performance is an integrated frame work that enables organizations to plan and model sales strategies and ensure timely execution of sales initiatives while ensuring both front line sales people and decisions-markers have visibility into performance . Sales performance represents the next generation of best practices for sales. (Michael D, 2006). Sales performance also refers to the total amount of firms output sold to the market especially on monthly or annually basis .this is affected by many factors including customer relationship, marketing management of the firm and sales force skills and motivation and even the pricing of the goods and Sales revenue is the total amount of money that the firm gets from the sale of all its goods and services in a given period of time. This is usually six months or a year if a firm produced only one product or service, the sales revenue will be the price of the product multiplied by the number of products sold. In the case of more than one product or service the revenue from each needs to be added together (wood, 1996). The sales revenue in profit and less account does not necessarily mean that the firm has received all the money because although they may have sold that quantity of the product, they may still be owed some of the money as debtors ( Baker 2001)
Sales
It is believed that the right sales approach consists of sales training that supports a companys sales methodology and related processes. (stein 2006)
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In the past years some organizations have found that their sales process are becoming more challenging while the performance of some of their sales professional who were past stars are deteriorated. Selling complex products and services, versus selling commodities has always been more difficult and sales professionals must have different skill sets (stein, 2006) In dealing with falling or declining sales, it is advisable to invest in some short term training to upgrade the skills of sales and customer service staff. If you cannot afford to fire experience, train the staff you can afford. This is an investment you cannot afford to miss. Find training that produces results tailored to get to your situation. It can be seminars or distance learning that does not require time away from the property or the job (verret, 2004). Sales training programs encompass a variety of necessary components, things like company policies, sales paper work, customer relationship management, sales force automation orientation, sales processes, company services, sales skill training and product features and benefits. stein 2006 further urges that , even when companies do decide that sales training is a step in the right direction, they do not always proceed forward for the right reasons in the right order ,or in a way that results in them, driving more sales revenue companies have learned how to employ sales training as a strategic tool.( Hardesty 2006)
Sales process
A sales process is a systematic approach involving a series of steps that enables a sales force to close more deals, increase margins and make more sales through referrals. Actively using and desire to become willing to implement a sales process could lead to more sales. Normally a sales process involves the following key steps; prospecting qualifying , proposal /presentation, handling objections ,closing sale and follow-up for repeat business referrals (Dvora ,2008).
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The outcome of a sales process can be explained by a series of steps that are systematic and not haphazard. Random acts produce random and uncertain results. In sales, random acts can be used occasionally, but systematic and well defined best practices can assure predictable results (vakratsas and Ambler). Profitability of a business is the justification of good performance. He further says that, profits of a business are the end results of operations and an indicator of good performance. Therefore, profit is a basic yardstick with which the success of the business can be measured. It is a reward for enterprise innovation and taking risks.( Griffith 2001)
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Sampling Design
Study population
The research comprised of the Employees of Mukwano industry drawn from a population of
150 people because they were expected to provide relevant information to the problem under study. Sampling size According to Krejki and Morgan (1970), the sample size used was 40 respondents and was determined where the sample size was determined basing on confidence level needed from the selected population under study. Sampling method The research used stratified random sampling to divide the employees into different departments under which they worked which included operational, supply, production and marketing departments. Simple random sampling method was used to select respondents
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from the selected departments in the industry, where by from the marketing department 16 employees were chosen, from production we had 8 respondents, from supply department 8 responds were chosen and finally 8 respondents were selected from production department.
SOURCE OF DATA
Primary data This data was obtained from the source. This was used where one required specific information which does not exist elsewhere or in another form or when the topic was being researched on for the first time. The researcher collected primary data through going to the field. Secondary data Secondary data was the one obtained from sources which already exist about organization and had been used before, for example information from journals, books and internet. The researcher collected information.
Data presentation
This was done using Excel computer package .This helped to summarize data into tables and also to find out the relationship between the two variables; that is advertising and sales from both external and internal sources.
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1.
The researcher found difficulties in collecting data because some of the respondents
were not cooperative and willing to give out the information the researcher needed. 2. Attitude was studied from the view point of the employees, thus did not reveal the
exact consumer attitude. 3. The researcher had tough time in collecting information about the sales performance
because the information was valued confidential and therefore they were not willing to disclose the information.
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RECOMMENDATION
Mukwano industry should use other forms of adverting like sponsoring events and use of mobile phone advertising. This will increase awareness about the various products produced by the industry. The industry should choose the most effective media for advertising. A media that is affordable by many people for example radios. The industry should use different common local languages used in the country so that every individual can get the messages from the adverts. E-marketing should also be used to reach most the people who spend time on the internet and have no timer to listen to radios or watch televisions. The industry should also use celebrities in the country to help them advertise their products for this can attract big crowds from which potential customers can be found.
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REFERENCES
[Arm strong, M (1999)]\ Human resource management practice. [Dunban, D,s (1968)]\ The politics of the economics of advertising. journal of advertising research foundation. [Wood, F (1994)]\ Business accounting. [Gilson , C and Beckam, H (1988)]\ Advertising 2nd edition Jefkins, F (1990) ; Introduction to marketing , advertising and public relations( third edition) Macmillan education ltd. Kotler P and Armstrong,G (2000) ; principles of marketing (12th edition). prentice Hall of India. Kotler , P, (1988) ; marketing management prentice hall international inc. Lester ,J D(1993) ; writing research papers . a complete guide (7th edition).New York , NY, Harper Collins college. Internet www.mukwano.co.ug. www.wikipedia.org/wiki/advertising. Sakaran , U (2000) Research methods for business (first edition) Vakratsas .i Ambler G. (1999) ; sales performance management(3rd edition) Prentice hall international inc. Pride , F et all (1989) ; marketing concept and strategies (sixth edition ) Boston Houghton miffing company.
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