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.
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
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.
- What are the amounts spent on advertising to commiserate with the sales volume of profit realized?
- Are there banks or any service industries to consider any other promotional strategies?
- How much money is involved in order to create awareness of the services produce by the organization?
- What are the problems faced in the application of advertisement on the steps to be taken for an effective service promotion?
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.