The Effect of Advertising on the Sales of Toothpastes

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Advertising of brands of toothpaste in Nigeria media reveal that there are many brands currently in the market. They also show that there is serious competition in the toothpaste sub-sector of the economy.

A quick scan of two daily newspaper revealed that the following are currently competiting for shares of the toothpaste market in Nigeria.

v Macleans and aquafresh toothpastes manufactured by GloxoSmith-Kline Nigeria Plc Lagos.

v Closeup toothpaste manufactured by Unilever Nigeria Plc Lagos

v Dabur toothpaste manufactured by African Consumer Care Limited Lagos

v Clenol toothpaste manufactured by chemical and Allied Plc Lagos

v Flourish toothpaste manufactured by PZ Nigeria Plc, Lagos

v My toothpaste manufactured by Daraju Industry Limited Lagos

v Simile toothpaste manufactured by Pharma care industries limited, Lagos

v Maxtouch toothpaste manufactured by Indent Cosmetics (India) PVT Limited India.

v MAXAM toothpaste manufactured by shanghai white cat shareholding company limited, China

v Dent’o’clean toothpaste manufactured by Doyin Industries Limited Lagos

The toothpaste that was well recognized years back was Macleans. And it was the product which the consumer throughout the country regarded as the best. Even when other toothpastes came into existence. Some illiterate people were still calling them macleans. But because of the constraints different competitions, close-up toothpaste had taken the place of Macleans in the market.

Given this high level of advertising competition there is need now to examine their effects on the sales of the numerous brands in the market.

1.2 OBJECTIVE OF STUDY

The objectives of study are as follows:

i. To determine the influence of advertising on consumer’s perception.

ii. To show the effect of education of the audience on advertising.

iii. To determine the effect of advertising on profit made by organization.

iv. To enumerate the extent of the effect of advertising on competition.

v. To show the effect of advertising on corporate goals and objective.

1.3 STATEMENT OF PROBLEM

There are various factors that influence consumer decision to buy a product but a significant factors, that differentiate a brand of product from the others is the advertising as various companies advert their product differently, when one consider that advert industry sale amount, one will discover that advertising cost often exceed all other marketing costs and in some instance, constitute the major element of total cost.

The research attempt to find out the effect advertising has on the consumers buying behaviours of Glaxo Smithkline Nigeria Plc Lagos considering the rising cost of advertising due to high cost of advert materials processes and designs.

1.4 RESEARCH QUESTION/HYPOTHESES

1. Did Glaxo Smithkline engage in advertising?

2. what kind of advertisement was the company employed sales of its products

3. were the adverts seen/heard by consumers of toothpaste

4. did the adverts influence the purchases or abstinence

Hypotheses II

Null hypothesis there is no significant relationship between advertising and the consumer’s performance

Alternative hypothesis there is significant relationship between advertising and the consumer’s performance

1.5 SIGNIFICANCE OF THE STUDY

1. The methodology of an advert using should be clear and understanding to the consumers

2. Organizing lecture, seminar symposia etc to bring awareness of the product to the consumers

3. Formulate effective method to carryout the research problem on the product

4. Make sure that very consumers are familiar with the product i.e. both urban and rural area and outside world.

1.6 SCOPE AND LIMITATION OF THE STUDY

This research will be limited to the impact of advertising on the sales of toothpaste in Glaxo Smithkline Nigeria Plc, Lagos.

The finding may not be generalized to all companies producing similar product in Nigeria.

1.7 DEFINITION OF TERMS

Effect: An outcome or a result or a change produced by an action.

Sales: Means the sales of goods in which the company normally deals and which were bought with the prime intention of resale.

Advertising: Any paid inform of non-personal communication and promotion ideas goods or service by an identified sponsor.

Toothpaste: This is the paste used on a brush for cleaning the teeth.

Attitude: An enduring disposition favourable toward some objective.

Product: A bundle of attributes either tangible or intangible offered by firm

Awareness advertising: Advertising where primary purpose is to create and maintain brand awareness.

Market: An aggregate of people who as individual organization have needs for product to services and have the ability, willingness and authority to purchase such product or services from organization offering them.

Perception: Step there (3) in the information process sequence in which meaning is assigned to stimuli received through the senses

Price: The amount the customer pays for goods and services

REFERENCES

Adesina S. (2002) “Some Aspects of Management Nigeria” E.L. Nigeria Limited.

Mullins M.J. (1998), “Management and Organization Behaviour Pitman Publishing, Third Edition.

Gregor (1960), “The Human side of Enterprise” McGraw-Hill New York Publishing.

Gullet R & Hick 1981 “Organization theory and Behaviour” Publishing McGraw Hill London.

Yalokwu P.O. (2002), “Management Concept and Techniques” Peak Publishing.