IMPROVING ORGANIZATIONS PROFITABILITY THROUGH EFFECTIVE ADVERTISING                                                                

CHAPTER ONE

BACK GROUND OF STUDY

INTRODUCTION:

Prior to the era of industrial revolution, the pattern and method of salesmanship was both crude and cumbersome chiefly because the gap between the productive and consumption sectors of society was small and manageable.  However, with the present complication and sophistication among both the producers and consumers occasion by high level economic and technological developments, businesses are now reshaping, refocusing repositioning and redirecting their operations and marketing strategies in order to face the obvious challenges posed by modern day marketing.

          Every business concern has a major objective for which it  was established but whatever may be the goal, the overriding force undoubtedly remains profit  maximization.

          To accomplish the afforested, these businesses make conscious efforts of finding out what their customers want,  providing them, creating  the needed awareness on the availability of these goods and services  and offering them  at the right place, time and cost.  It is by so doing that such a business can assuredly claim greater percentage of the market share and at the center  of the these activities is the pivot, the stimulant , the propeller, the sole of business called advertising.

          Advertising as one of the strongest promotional tool remains a strong force in the hands of business entities.  A popular saying has it that if you do not blow your trumpet, nobody is going to do that for only when you say, “here I am “, that people will actually know where you are.  Advertising does this  and more for organization especially the hotel business. It creates especially awareness, packages, the product, services etc and presents it to the intended consumer and assists him in making the right choices.

          The following definitions and opinions by some authorities and schools of thought on the meaning and roles of  advertising will perhaps give more insight into the concept.

          According to Stanton W.H

          Advertising consists of all the activities in presenting to a group  of non-personal oral, or visual openly  sponsored message regularly regarding a product, services or idea.

Jones (1955:14) sees it this way:

Advertising was probably coined in England in the early  days of the print to turn  the attention of voters

The American Marketing  Association (AMA) defies it as:

          A paid form of non-personal presentation and promotion of ideas and services by an identified sponsor. The Advertising Age (1932) (an Ad magazine) has a summary of the  views of some professionals

          In the field thus:

Advertising is the printed, written, spoken or pictured representation of a person, product service or movement, openly sponsored by the advertiser and at his expense, for the purpose of influencing sales, use, vote or endorsement.

          Finally Starch (1966:2) Succinctly defines as the paid form of mass communication designed to influence people to farvour   a product in order  to induce them to buy it.

From the foregoing definitions and views  we begin to see that advertising has the following more purpose for business, especially the hotel entities.

1)       To create  awareness  on the availability of a  product, user, vote, person, idea etc

2)       To  educate the target user on the constituents of what  is being advertised.

3)       To offer other services such as how to use the products, where to get  it, what  the cost is etc.

4)       To induces sale

5)       Ultimately, to increase and maximize  profit thereby  enhancing the revenue base of the business- hotel.  These (above) are only a tip of the  Ice –berg  on what advertising is capable of doing for hotel business.

STATEMENT OF PROBLEM

Hotel business market  their goods and services to both internal and external publics in order to reap profit for future  survival   and growth of the business.  Advertising as one of the variables of the marketing communication mix helps in actualizing not only marketing objectives  but  also the overall corporate objectives of the  organization.

It is however  sad to note that some hotels especially in Enugu urban hardly utilize or  avail themselves of the unique services offered by modern advertising .  in some cases,  it is hard to identify the location of these hotels, what  they offer, their modus operandi and  the likes.   To such (these hotels), the minimal revenue acuring  to the business is enough.  Therefore , to involve advertising is  to  in cure  unnecessary cost.  They ignorantly consider  advertising a cohessal waste of time and resources.  This indeed is a sad commentary!  

The unavoidable consequence are:-

v  These hotels remain perpetually hidden and unknown

v  They end up  operating below their  capacities

v  Business yields continually decrease over the year.

v  Some end up paying the supreme  sacrifice of untimely demise and …………………………

It is therefore the  intention of this study to critically review the likely benefits hotel business will make in terms of profit maximization by availing themselves and using the  communication.

OBJECTIVES OF STUDY

          The prime  objective of this study is to find out  the effectiveness of advertising  in profit  maximization  of hotel business in Enugu metropolis.

          Additionally, the study will also aim at the following:

To determine the general impact of advertising  on consumers.

To determine the extent  of  consumer awareness of hotel advertising

To identify what consumer patronage of these hotels are as a result of advertising.

To make recommendations in line with our observations.

RESEARCH QUESTIONS

          Does effective advertising  lead to increase in profit of hotel businesses in Enugu Urban?

Are customers and the general public aware of hotel advertisement?

To what extent do these adverts influence customer patronage or table hotels?

What medium of advertising is most effective for hotel advertisement?

1.5     FORMULATION OF HYPOTHESIS

Ho:    The extent of customer awareness of hotel advertisement is satisfactory

H1:    The extent of customer awareness of hotel advertising is unsatisfactory

Ho:    Advertising is responsible  for  profit maximization by hotels

H1:    Advertising is not responsible for profit maximization by hotels.
1.6     SIGNIFICANCE OF THE STUDY

          The study  will be of importance to advertisers, hotel businesses and the general public.

It  is anticipated that results from this study will help to  evaluate and identify better ways of making hotel advertising and business operations more effective. 

          It will additionally add to the existing body of knowledge of advertising and other related fields.

SCOPE OF STUDY

The study will cover only  major hotels in Enugu Urban Hotels outside this zone will not be studied so as to make for more realistic investigation.

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