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THE IMPACT OF ADVERTISING ON CUSTOMER PATRONAGE

ABSTRACT

Advertising is an economic promoter with the attribute of persuasiveness. In formativeness has an important contribution to make in terms of increasing sales or demand for the services they rendered and hence increase profitability and also helps customers in making decisions or choice of demand or spend their income wisely. The researcher will have to analyze the impact of advertising on patronage with special attention on service industry. The researcher identify the effect which advertising have as regards to generating revenue for the service industry. This research work take into consideration the various advertising channels such as Television, Radio, Posters, Newspaper etc. and the ways in which consumers respond to them. In this research, personal interviews, questionnaire and documentary methods were used to gather the necessary information’s, which   were analyzed. A mean statistic was used to analyze the data collection, convenient analyses and tabulation. A total no of 20 respondents was used, also about for (20) questionnaires were given to staff of union bank for answers to be supplied by them. The researcher therefore try to put forward some suggestion that may be revealed and helpful to the industry after all the respondent and questionnaire were analyzed and recommendations were made as to know how advertisement can really increase patronage and better sales volume can be achieved in the service industry.

CHAPTER ONE

INTRODUCTION

1.0    BACKGROUND OF THE STUDY

Advertising is one of major ways in which sellers use in order to stimulate demand for goods and services; therefore, it is a communication function which likes customers with the producer. Kotler (1990:450) “Advertising is undertaking to increase campaign on sales, and this can be done only if the public have full knowledge of the product or service is aimed at customers”.

Advertising can also be any paid form of non-personnel presentation and promotion of ideas, good and services by an identified sponsor or an art of creating awareness of a specific goods and services available in the market (economy). One of the major objectives of advertisement is to facilitate the work of the salesman by stimulating the demand for the project or services.

Advertisement is carried out through Radio, Television, Magazines, Journals, Directory, Newspapers, Poster, Film show etc. whatever from the advertising takes, the fundamental principle is to deliver the message to the right audience at the right time and at the lowest possible cost, so as to achieve positive result (goals).

In early stage of industrialization the general public has no real sense of discrimination. The deciding factor in the purchase of an item or the others was containing price and not quality and the function of the goods or services, its ability, durability and suitability it was whatever cash they ever had in their pockets. The reason for this lack of discrimination was lack of the right kind of education. Producers also find it difficult to make their known; they only display it in shops or by showing it in the market place. People don’t really know that service is a form of product even though it is not tangible, that is it is not something that they can touch.

Advertising plays very important roles in the services industry because with proper advertisement it increase its patronage, it create on awareness that something is going on somewhere.

Advertising did not just start at this technological age, it started long time ago, it is an aci0ent practice that reflect back to the very beginning of recorded history where the Romans pointed walls to announce forth coming gladiatorial contest and the Phoenician morals as prominent rocks along trade routes extolling the wishes they said, predecessor or modern day outdoor advertising in pomp, were a well organized group of youth were praising politician and asking people to vote in his favour.

Another early form of advertising was the use of town crier. In Greek during the Golden age, town crier were paid to circulate information (forms of advertisement) throughout the street of Athens announcing to the citizen the sales of slave, cattle and other goods.

1.2    STATEMENT OF GENERAL PROBLEM

Although advertising can play an important role in the economic growth, some economic still ask the question such as, is money spent for advertising an undesirable allocation of society scarce resources? Or put in another way is advertising an economic waste?

Some critics of advertising believes so, some said that the millions of naira wasted on advertising could be used in establishing industries to give employment to the unemployed, others said that the money used to produce good and portable drinking water and other social amenities to the rural areas for a better standard of living for the people, yet other said such millions could be used to build rehabilitation centers for the disables or the privileges, build hospitals and providing drugs both in the rural and urban areas.

Some people argued that advertising has no important use to the economy, it should be noted that advertising expenditure in the United States are currently at 2% to 3% percent of their gross national product (GNP) Winter and Zeigher (1982, 12).

The traditional economic view that advertising is wasteful is based on assumption that customer already possess perfect information and can make their choice without advertising.

The assumption is not true in the real world, because there are a lot of people who spent much in seeking information about product or services daily this is because people do not have complete information and they seem to go after such information.

Another problem of advertising is that, the difficulty of its evaluation, it is very difficult to measure the effectiveness of advertising, the problem is the liability of identifying the possible result of any given advertisement or even an entire campaign. Except in the case of mail-order advertising, we cannot attribute a given unit of sale or services to any specific advertising or campaign.

And as a result of heavy amount been spend on advertising cost of production increase in effect higher prices is charge for a production of a commodity which is subsequently passed to consumers, thereby decrease their demand for the product.

The main issue here is or what not clears about advertising to many people is whether advertising has been doing its job affectively and that is the main concern of this write up.

Advertising research tries to clear this issue by measuring or attempting to measure advertising effectiveness and the same time improve its efficiency.

Advertising effectiveness refer to the degree by which an advertising campaign help to achieve overall marketing objectives. In other words, what we assume is that advertising has done related to the objectives for which it is carried out.

If the gap between what on advertising campaign has achieved and what was expected to achieve is narrow then we conclude that advertising campaign has been run several times, the conclusion will be that the campaign has been ineffective efficiency on the other hand is defined as the best possible use of the advertising budgeting and media mix in carryout and advertising campaign.

Another issue is that the amount of money allocated to advertising is the amount reasonable? If so what of the appropriateness of times all the above are, is what the write – up is out to find.

1.3    AIMS AND OBJECTIVES

One cannot start writing a project without something inducing her into such work, thus the writer intends to identify the impact of advertising on service on service industry and need to control the negative effect of the term advertisement. The study specifically attempts to achieve the following objectives;

i      To find out whether the amount spends on advertising is commensurate with the sales volume or profit realized.

ii     To examine banks or any service industry to consider other promotional strategies.

iii    To examine why service industry spent so much money on advertisement of their services, in order to bring the public to the awareness of their services e.g. UBN.

iv    To finding out the problem of advertising in service industry and also offer solution to those problems and also give on the steps to be taken for an effective product promotions.

1.4    SIGNIFICANCE OF STUDY

This is one of the most important aspects of the writer up to the researcher because he tries to state clearly the importance and benefits that is derived on advertising on service industry.

For example many industries nowadays advertise their products worldwide through internet which is globally, thus lead service industry competing in a single global village. As a result of good advertising, company will possible for service industry to increase their turnover.

This study will be significant because customer would acquire more knowledge and awareness on the impact of advertising on the service industry. Same time service industries would know the situation of the customers.

To the researcher, it serves as a pre-requisite for the award of PGD in Business Administration at Kaduna Polytechnic. The study would also expand the knowledge of the researcher. Finally, the study would also be useful as a reference material to students and future researcher.

1.5    RESEARCH QUESTIONS.

The following research questions have been developed in order to serve as basis for information collection.

1.6    SCOPE OF THE STUDY

The researcher would have wanted to carry out her research in all service industry but for more convenient data collection she has restricted herself to information obtainable at Union Bank of Nigeria Plc, and the customers of their services within Kaduna town only. The research work was undertaken to cover the impact of advertising on customer patronage in Union Bank of Nigeria Plc.

1.7    LIMITATION OF THE STUDY

Time availability for this study was short especially when one considers the content needed from the writer in respect to the study. The ups and downs of communications to the subject matter need a considerable and reasonable time.

In accessibility of record/information:  Another limitation to this research is the researcher’s failure to get all the necessary or required information or data. The unavailability of current and relevant data textbooks at the disposal of the researcher also narrowed the extent to which the research intends to review related literature.

Finally, other personal and domestic problems also constitute barriers for effective conduct of the research exercise.

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