The effect of advertising on sales volume of manufacturing organizations in Uganda

Abstract

This study examined the effect of advertising on sales volume of manufacturing organizations. The examined the effect of product oriented advertising on the sales volume, established the effect of competitive advertising on the sales volume and finally established the effect of reminder advertising on sales volume. This study was due to the fact that poor product communication to the final consumers could give competitors an edge in terms of loyalty to brands; sales volume and high market share and in addition not all advertisement are honest and follow ethical standards and hence the message is perceived by the target consumer lies since the advertised products do not appeal, attract attention, commands interest, inspire conviction and provoke interest in customers to make more purchase and boost sales volume. The study used a case study design and Coca Cola Company Namanve was ideal for the research. Population was the study was 56 and the sample size was 48 according to Krejcie and Morgan table although the actual respondents were 40. Qualitative and quantitative methods of data collection were used for data collection and analyzed using SPSS version 16. The study further noted that the use of product oriented advertising helps in identification of a product and differentiates them from others leading to increased sales. The findings revealed that organization uses competitive advertising to reach prospective customers and create awareness which changes their buying behavior. The study noted that through reminder advertising customers buying behavior is influenced especially after being reminded about the benefit of products. The study concludes that effectiveness of product oriented advertising influences perceived quality of products leading to increased market share, profitability and sales. The study concludes that carrying out an in depth competitive analysis has helped the organization to identify competitor’s strengths and weaknesses develop competitive strategies that boost sales. The study concludes that organization has achieved brand loyalty, sales volume, profit, market share and increased sales after reminding customers about price changes for their different brands, purchase terms, ordering and payment. The researcher recommends that the organization uses advertising to create market for the newly developed products. The study recommends that organization uses competitive advertising to reach prospective customers and create awareness. The researcher recommends that organization should continue to remind customers in order to increase brand loyalty, sales volume, profit, market share and increased sales