The effect of advertising on sales performance

Abstract

The focus of this study is on the effect advertisement has on a company’s sales, specifically on MTN’s products. Consumers are faced with an array of products most of which differ in brand names. As other telecom companies like Airtel advertise more, MTN is not lying/ barking down. The result is the protracted advert war that now dominates both the electronic and print media. Therefore, this study has been carried out to establish the effect advertisement has on a Company’s sales. The study also offers a look on the advertising methods, their merits and drawbacks and the way consumers perceive them. Interview schedule and questionnaires were the instruments used in collecting data. The study was mainly conducted in Company premises and on a very small cross section of randomly selected respondents as an entire city would not be covered because of limited funds and time. Incase of consumers, the main questions were about usage patterns and advertising preference. On the side of employees, questions were on advertising tools used, expenditure and sale trends (2010-2013). The hypothesis under test was if advertising activities used were appropriate, and had any significant effect on sales (2010-2013) and if they could still be utilized in future. The researcher recommends that further research be carried out in the future to supplement on this so that any knowledge gap on the topic is thoroughly closed.