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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Advertising is one of the strategic devices for gaining acceptance for and monitoring an institution or organization in a competitive environment. According to Bel-Molokwu (2002) stated that, the word advertising is derived from a latin word known as ‘Advertere’ which means to draw attention. He further explained that advertising is perhaps better done for viewing its application- what it does, rather than what it is and how it does.

Bovee, 1992 P.7 define advertising as the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media. Meanwhile, Advance Learners English Dictionary defined advertising as the act of telling the publics about a product or services in order to encourage people to buy and to use it.

Advertising as being persuasive is primarily designed to convince the target audience of a certain product to change their attitude towards a product and to create a permanent awareness in the memory of an average consumer.

1.2 STATEMENT OF THE PROBLEM

The problem to be solved by this research work is broken down into the following statement.

1.          Lack of awareness on the part of customer about the existence of the product.

2.          Low sales volumes on the company’s market share.

3.          Negative effect of the company towards the profit maximization.

4.          Inadequate or poor maintenance of company’s image.

5.          Inadequate dissemination of information to the prospective customer.

6.          Lack of regular purchase by the customers.

1.3 PURPOSE OF THE STUDY

1.          To determine the level of awareness of new product in the market as a result of the firms advertising of the new product.

2.          To ascertain the level of advertisement in increasing the sale’s volume of the company’s product.

3.          To show if advertising have a positive effect on the profit of indomie instant noodles.

4.          To determine if advertising help in establishing and maintaining the company’s image.

5.          To determine whether advertising is an efficient source of information to prospective consumer.

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