IMPACT OF NIGERIAN TELEVISION AUTHORITY (NTA) ENUGU COMMERCIALS ON CONSUMER DEMAND FOR MALTA GUINNESS

CHAPTER ONE

INTRODUCTION

1.1 Background of Study

Advertising is one of the most common strategies used to direct persuasive communication to target buyers and public. Achumba and Osuagwu (1994) quote the American Marketing Association (AMA) as defining advertising as any paid form of non-personal presentation.

Advertising on television offers a number of benefits to businesses by incorporating sound, images and movement to make the whole package interesting for consumers.

Advertising on television is the ability to communicate with a very large audience. Most companies adopt various marketing approaches in a bid to maintain or increase profit margins, market shares or sales volume of their product or services.

Television commercials have always been able to appeal to multiple senses through its combination of text, images, sound and motion.

Television is a powerful advertising medium, it relies on both sound and visual effects. These effects can be used in combination to catch the attention of the audience and then reinforce their retention rate by repeating message using both audio and video.

The role of a good commercial includes creation of awareness, generation of favourable attitude and preference in consumers mind for the demand of the particular brand.

Hence, a good commercial is one that is capable of attracting attention, making consumers develop interest, making them desire to buy the product and use the product. Television reaches a large variety of individuals with different backgrounds which makes it cost efficient for advertisers to reach a mass audience.

A well created television commercial draws the audience to watch it. According to a study by Ball state university, the average individual watches television for more than 4 ½ hours a day. This is more time than individuals spend listening to the radio or reading the newspaper, this increases the visibility of television commercials.

Commercial also known as advertising is a specialized form of communication because in order to satisfy the market function it has to influence the choice of the consumers.

Commercial is one of the most efficient tools that manufacturing companies utilize to create more demand for their products on account of its capacity to reach a large number of people at a relatively short time cost.

Radio advertisers can only appeal to one of the senses of their listeners (hearing). Television on the other hand can take advantage of both the senses of hearing and of vision by appealing to both senses.

A sale price can be spoken during the television commercial then reinforced with a graphic on the television, using a high quality graphic can make it easier for the customers to remember a product than just hearing about it.

To achieve optimum and lasting results all relevant marketing elements should be effectively coordinated with commercial.

The importance of commercial as a marketing promotional activity is to promote product and service flow through appropriate channels, to act as a catalyst in acquainting the consumer with options by which wants may be satisfied.

Television commercial is still the most persuasive and powerful tool for reaching consumers, television commercial has tremendous effect on consumers just by repetition and exposure of catchy jingles and slogans.

Commercial can be classified into:

(A) Print media.

(B) Electronic media.

The print media include: newspapers, magazines, outdoor posters, bill boards, journals and novelties etc. The electronic media include: radio, television, internet etc.

Demand for product is created through effective commercial. A product with good qualities, pricing strategies and packaging, but not properly advertised will die a premature death.

One of the biggest advantages of using television is the fact that it provides a lasting image in the memories of the consumers through its visual effect.

Television commercial has intimate approach due to which it becomes more appealing and attracts the attention and interest of people, as it combines elements such as: sight, sound and motion.

Television breaks the barrier of illiteracy as due to its combination of sight, sound and motion, understanding the message becomes easier, whereas with the print media like newspapers and magazines, readers have to put a lot of efforts on reading and understanding the message which may not be possible for illiterates.

1:2 Statement of the Problem

Commercial is like any other promotional techniques. It informs, persuades and reminds. It can change the consumers’ beliefs, attitudes, image and behaviour, but for commercial to be effective enough and successful on any level, enormous expenditure and other tasking duties are required.

The task of this study is therefore to know how has NTA Enugu commercials on Malta Guinness has helped in increasing the demand for Malta Guinness.

1:3 Objectives of the Study

The objectives of the study were as follow:

1) To determine the perception of consumers’ towards NTA Enugu commercials for Malta Guinness.

2) To examine if the consumers of Malta Guinness have reacted positively towards NTA Enugu commercial.

3) To determine if NTA Enugu commercials has impacted on consumers of Malta Guinness.

1:4 Research Questions

1) What is the perception of consumers’ towards NTA Enugu commercials on Malta Guinness?

2) To what extent have consumers’ of Malta Guinness reacted positively towards NTA Enugu commercial?

3) What is the impact of NTA Enugu commercial on consumers’ of Malta Guinness?

1:5 Research Hypotheses

H1: Consumers have shown positive reaction towards NTA Enugu commercials on Malta Guinness.

1:6 Scope and the Limitation of Study

This research is restricted to the specific issue of impact of NTA Enugu commercials on consumers’ demand for Malta Guinness in Enugu.

The reason for the restriction is because of limited time available for the submission of the project, and the cost implications in covering the geographical areas outside Enugu state.

1:7 Significance of Study

Manufacturers in Nigeria set aside a huge part of their budget for promotional activities on commercials. The reason for doing this is to make sure that their companies achieve the target profit through increase in turnover.

This study shows the impact of commercial on consumer demands for products, and will enable manufacturers know the effect of the huge sum spent on commercial has on the demand for their product.

The study is also important as it shows how commercials can be used as a marketing strategy to re-introduce a product which has already reached its declining life span.

1:8 Operational Definitions of Significant Terms

Impact: is the powerful effect that something has on somebody or something.

Commercial: is a sponsored advertisement on radio or television. It is a paid advertisement on television or radio; it is a public promotion of some products or services. A television commercial is presented in form of a short documentary.

Consumer demand: a consumer is someone who can make the decision whether or not to purchase an item at the store and someone who can be influenced by marketing and advertisements.

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