Effect of advertising on sales performance in profit making organizations; Case study: Tamu cooking oil

Abstract

This paper seeks to examine the effect of advertising on the sales performance in a profit making organization. The sales performance of an organization is an important aspect in the community because it‟s through sales activity that the community receives services. Many organizations are being formed and this has increased the need for proper advertising of the products as a means to improve on the quality of services offered to the community. While there are many organizations that have good advertising methods, a large number still seem to have inadequate advertising systems, this gives a gap on the efficiency especially of the sales performance allocation by the organizations. The study examines the effect of advertising on sales performance in profit making organizations taking a case of Tamu cooking oil. The study used empirical data acquired through questionnaires, review of the existing documents and interview with the company management, different departments such as marketing and distribution and support staff. The data was analysed both qualitatively and quantitatively to assess the effect of advertising on sales performance in profit making organizations. The findings of the study show that the main challenges to effective advertising on the sales performance in profit making organizations were lack of adequate capital, poor inventory management, lack of integrity and lack of participatory budgeting. The analysis showed a strong correlation between advertising and the sales performance in profit making organizations.