Influences Of Advertising On Business Organisation A Case Study Of Diamond Bank, Enugu

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ABSTRACT 

The study examined the effects of advertisement on the success of an organisation using Diamond bank adverts as a study. The objectives behind the study were to find out various advertising strategies employed by Diamond bank to reach its numerous customers, ascertain how effective these advertising strategies are, to ascertain the extent to which these advertisements of Diamond bank have contributed to the patronage of their service in Nigeria and to identify other areas these advertisements have improved in the organisation. A total number of sixty (60) questionnaires were administered to Staff members of diamond banks in Enugu state and a total of fifty two 52 were retrieved were surveyed. The finding of the study revealed that all respondents agree that diamond bank engage in various advertising strategies to reach their numerous audience. Respondents also agree that television advert is the major the advertising media strategy of the bank. The finding of the study also revealed that the various advertising strategy used by diamond bank is very effective toward achieving its objective. The study disclosed that most of the respondents indicated that the various advertisement of diamond bank has improved the area of expansion of the bank system. Also the finding revealed that the various advertisement contribute to the patronage level of the bank and this is to a great extent. It concludes that advertisement is a veritable tool for achieving the objectives of a business organisation. It thus recommends that Banks should pay more attention on their advertising strategies in other to gain more customers.

 

TABLE OF CONTENTS

Title page                                                                                                                                i

Approval page                                                                                                                         ii

Dedication                                                                                                                              iii

Acknowledgements                                                                                                                iv

Table of contents                                                                                                                    v

Abstract                                                                                                                                  viii

CHAPTER ONE: Introduction

1.1       Background to the study                                                                                            1

1.2       Statement of Problem                                                                                                 3

1.3       Objectives of study                                                                                                     4

1.4       Research Questions                                                                                                     4

1.5       Significance of the study                                                                                            5

1.6       Scope of study                                                                                                                        5

1.7       Operational definition of terms                                                                                  5         

CHAPTER TWO: Literature Review

2.0       Introduction                                                                                                                7

2.1       Conceptual Review                                                                                                     7

2.2       Digital Advertising                                                                                                     15

2.3       Physical Advertising                                                                                                   16

2.4       Importance of Advertising                                                                                         19

2.5       Brief history of television in Nigeria                                                                          22

2.6       Diamond Bank                                                                                                            27

2.7       Empirical review                                                                                                         29

2.8       Theoretical Framework                                                                                               31

CHAPTER THREE: Research Methodology                                                                    35

3.0       Introduction                                                                                                                35

3.1       Research Design                                                                                                         35

3.2       Population of study                                                                                                    35

3.3       Sampling size and sampling technique                                                                       35

3.4       Data collection instrument                                                                                          36

3.5       Data analysis                                                                                                               36

3.6       Validity of Instrument                                                                                                            36

3.7       Reliability of Instrument                                                                                             37

CHAPTER FOUR: Presentation and Analysis of data                                                    39

4.1       Data presentation of core research questions                                                              41

4.2       Discussion of findings                                                                                                44       

CHAPTER FIVE: Summary, Conclusion and Recommendations                                  47

5.1       Introduction                                                                                                                47

5.1       Summary of findings                                                                                                  47

5.2       Conclusion                                                                                                                  49

5.3       Recommendations                                                                                                      49

References                                                                                                                              50

Appendix I                                                                                                                              53

Appendix II                                                                                                                            54

 

CHAPTER ONE

INTRODUCTION

    1. Background to the Study

 Every business organization that is determined to succeed has to adopt an effective system for the promotion, distribution and sales of its services or product. Advertising is of three general means in term of communication. We read it and/or watch it, and there are almost countless means of delivery with sales message.

Advertising is a form of mass communication with the public. It is usually one sided i.e. from the company to the buyer/potential user of the product. It is a form of communication that typically attempts to persuade the potential customers to purchase or consume more of a particular brand of product/services. As rightly defined by Bovee (1995), "advertising is 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."

Advertising an important tool of communication is use to promote commercial goods and services, it can also be used to inform, educate and motivate the public about non-commercial issues such as AIDS, Don't drink and drive, Polio, Save water, electricity, animals and trees etc. "Advertising justifies its existence when used in the public interest - it is much too powerful tool to use solely for commercial purposes” Baron (2004).

Advertising is most effective with products that can be differentiated from similar products based on consumer accepted quality difference. Tom Egelhoff (2006) has classified advertising in 6 types, i.e. for company image, name brands, advertising service instead of a product, business-to-business advertising, co-op advertising and public service advertising. Television, Radio, Cinema, Magazine, Journal, Newspaper, Video Game, Internet, Billboard, Transit Cards, Sandwich Board, Skywriting are the different mediums used to deliver the message. The companies choose the method according to the cost, budget, target audiences and their response. However, word of mouth advertising/ personal recommendations is an unpaid form of advertising which can provide good exposure at minimum cost.

Although Television advertising is very important for a business to succeed, it can also be very expensive. In its first year, a company might spend as much as half of its sales on advertising programs. Business success doesn’t happen by accident; it requires careful thought and planning Chris Joseph(2013).

The heart of your business success lies in its advertisement. Most aspect of your business depend on successful advertisement Without advertisement, your business may offer the best products services in your industry, but none of your potential customers would know about it. (Kristie Lorette (2005)

Winston(2007) in his own view report that industries, which advertise heavily, tend to have higher profits rate than low advertiser, so that study will also show how sales is affected by Advertising because of the long term effect it has on sales.

Television advertising has long term effect on sales. Television advertising in short hold out the promises of greater and speed up return that would occur without it. Television advertising stimulate economic growth by acquainting the consumers with value of products widen the market for these products, pushes forward their acceptance by the consumer and encourage the investment and entrepreneurship necessary for innovation.

So Television advertising has a long term effect on consumer because of the informational aspect of the message and the persuasive, aspect as well, which will now serves as a reference point for the consumer when they want to act through buying of the product being advertised. It is most effective as a reinforcing of favourable attitudes, values and disposition already held by consumer.

Television Advertising is a very powerful institution and has been the target of considerable criticism regarding its social and economic impact. Critics always argue that television advertising is deceptive and untruthful; that it is often offensive, irritating, or in poor taste; and that is exploits certain groups, such as children. Many people believe, television advertising should be informative only and television advertising should not use subjective claims, puffery, embellishment, or persuasive techniques. Organization clearly understood that effective and efficient communication is inevitable for their success.

Television Advertising is any paid form of non-personal communication about an organization or its product to a target audience by an identified sponsor. It should be observed that for any promotional activity to be called advertisement it must be paid for.

In the real sense, it is the method used by companies for creating awareness of their products, as well as making new products known to the new and potential consumers.

This study however, centres on the effect of advertising on the success of an organization. This work shed light on how television advertising can really affect a consumer’s buying decisions in a growing economy like that of Nigeria and how successful television advertising can keep an organisation  going even in the midst a tough competition.

 

1.2       Statement of Problem

Adverting is a critical factor as long as the success of an organization is concerned. This is because adverting makes an organization to stand out as well as increase visibility and profit Alonge (2001).

In Nigeria today the success of organizations has been tagged to be a product of the use of celebrities, good public relations as well as marketing. The effect of adverting in these cannot be over emphasized as it has led to tremendous profitability in organizations.

Scholars have previously attempted to find out the effect of celebrity endorsement in the success of an organization, others have researched upon public relations as a tool of organizational objectives achievement. This study however seeks to find the effect of advertisement on the success of an organization using Diamond Bank adverts as a study.

1.3       Objectives of study

The aim of this study is to:

  1. To find out various advertising strategies employed by Diamond bank to reach its numerous customers.
  2. To ascertain how effective these advertising strategies are.
  3. To ascertain the extent to which these advertisements of Diamond bank have contributed to the patronage of their service in Nigeria.
  4. To identify other areas these advertisements have improved in the organisation.
    1. Research Questions

The following below are the research questions for this study;

  1. What are the various advertising strategies employed by Diamond bank to reach its numerous customers?
  2. How effective are these advertising strategies?
  3. What is the extent to which these advertisements of Diamond bank have contributed to the patronage of their service in Nigeria?
  4. What are the other areas these advertisements have improved in the organisation?

1.5       Significance of study

This study will discover the influence of adverts on organization success. It will help network communication organisation know the essence of advertising as long as their success is concerned. It will also serve as guideline for further researchers both in communication and marketing as well as students to know how to utilize advertising in the achievement of organizational goals. It will help to expose prospective professionals on the various strategies use by organisation to achieve success on a long or short run. 

1.6       Scope of study

This study will cover television adverts in Diamond bank with a view of discovering the influence of the adverts to the organizational success. The study will be limited to various diamond banks in Enugu state, in southeastern Nigeria, created in 1991, based on the limited time attached to the study.

1.7       Operational definition of terms       

Influence: the result or impact of Diamond bank adverts on its audience use of advertising in Diamond adverts

Advertisement: a communication solicitation designed to sell diamond bank services relayed on television.

Organisation: Diamond bank

Business: a firm that engage in the buying and selling of goods and services for the purposes of national development and profit making

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