The effects of advertisement on the sales volume of an enterprise product: case of Brasseries du Cameroun

ABSTRACT

Advertising is a vital marketing tool as well as it is a very powerful communication medium.

The basic objectives of any advertisement is to stimulate sales whether directly or indirectly.

Company’s continue to spend large sum of money on advertising which is one of the most important and visible marketing tool.

Advertisement has become and integral part of life that one cannot watch or imaging any event, news papers, magazines, or television series without advertising.

The question is has any brewery company attempted to assess the impact of his advertisement on the sale volume of its product? the purpose of this study was to examine the impact of advertisement on the sales volume of a company’s products in which Brasseries du Cameroun Bamenda branch was considered to be the case study.

This study was explorative in nature and in addition, try to make a quantitative assessment of advertising on the sales volume of a  company’s product.

The main research instruments used were questionnaires and secondary data. At the end of this research, Les Brasseries du Cameroun Bamenda branch attested the fact that advertising is effective in boasting the sales of its product.

CHAPTER ONE

BACKGROUND OF THE STUDY

Advertising has existed for many decades. It is one of the element promotional mix which has its ultimate function to set up channels of information and persuasion to sell goods and services or to promote an ideaA.

(Aaker D.A 1991). As an integral part of a social and economic systems and one of the rapidly growing industries, advertising determines G.D.P (Gross Domestic Product), of a country to a considerable extent (Daniels, 1995). Advertising is considered to be one of the marketing communication tools.

Communication is the process of giving or an exchange of information and the science of transmitting information as well  In the worlds complicated society;(smith 1993.)

Advertising has developed into a signified communication system which connects both consumers and business (Belch and Belch,1998).

Advertising communication can be conveyed through various mass media which include traditional mass media such as T.V, broadcasting, magazines and news papers( Belch and Belch, 1998).

In addition, internet industry has becomes a new medium for business and especially provides a new living space for the growth and development of enterprises.

    Many advertisements are designed to generate increase consumption of those products and services through the creation and reinforcement of brand image and brand loyalty for these purposes, advertising often contain both factual information and persuasive massages.

Some major media used to deliver these messages include T.V, Radio,Movies,Magazines and Internet.

    It might be easy to know how memorable an advert might be but it will be difficult to measure the sales and the impact of advertising might produce or to know how potential customers feel about the product or services of a company.

Companies in Cameroon today especially in the brewery industry are now in a very competitive environment than ever before and thus do everything to increase their market share through sales promotion, introduction of new services and advertisement.

In Cameroon, there is a wide range of drinks amongst the variety of brewery products found in the market.

There is no doubt that Cameroon is a large consumer of brewery product and firms of the brewery industry need to advertise their products in a more specialised manner to achieve their objectives.

This study relates to the role played by advertising in the sales of Brasseries du Cameroun’s product.

The products produced by Brasseries du Cameroun have almost the same method of production and packaging.

It would therefore been wish to distinguish a product and study the role played by advertisement to it.

1.2 PURPOSE OF THE STUDY

       The main objective of this research is to investigate the impact of advertisement on the sales volume of a company’s product which in this case is ‘’Brasseries du Cameroun’’ the Bamenda main branch.

The specific objectives of these researches are;

• To assess the relationship between advertisement and sales.

• To evaluate the result the company gets after each advertising campaign.

• To assess the type of advertising strategies that the company uses.

1.3 RESEARCH HYPOTHESIS

       Taking into consideration that we are studying the relationship that exist between advertisement and the sales volume of a company’s product the hypothesis will be as follows:

H0. Advertising has no impact on the sales volume of a company’s product.

H0. Advertising has an impact on the sales volume of a company’s product.

1.4 IMPORTANCE OF THE STUDY

     This study will serve as a new born idea to many brewery industries and advertisers to know when to use advertising as a communication mix tool.

     A research on this topic is also of great importance to advertising agencies media and supplies to be able to create, produce and manage advertising messages.

     Also, to enable advertisers to understand that advertising serves other social needs besides stimulating sales. It is observed that newspapers, magazines, radio, televisions and many web sites all receive their primary income from advertising.

1.5 SCOPE OF THE STUDY AND LIMITATION OF THE STUDY

To experience the reality of our study, we were given the opportunity to do internship for 30 days in ‘‘Brasseries Du Cameroun’’ Bamenda Branch for proper analysis and presentation of facts. This study was limited to two qualities of financial records that the first was to check the advertising expenditure of sales realized, and the second was to compare advertising expenditure to the number of customers. We shall see how each of these elements affects a firm’s decision making in terms of increasing advertising budget or reducing it. The research decision was experimental, and the sampling techniques applied was simple random sampling. The data collection techniques included questionnaires and document analysis and the quality control technique is randomization.