THE IMPACT OF ADVERTISING ON SALES PERFORMANCE: A CASE OF

MUKWANO INDUSTRY
BY
LUNGAZO CONCEPTA
REG. NO. 07/K/2882/ET
A RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
RE!UIREMENTS FOR THE AWARD OF A DEGREE OF BACHELOR OF
COMMERCE OF MAKERERE UNIVERSITY.
"ULY 20##
DECLARATION
I hereby declare that this project is my original work and it has not been submitted in this
form or any other form to this or any other institution for examination purposes. Any
quotation made has been referenced accordingly.
Author
Signature Date. ..........
LUNGAZO CONCEPTA
i
APPROVAL
!his project has been submitted for examination with my appro"al as the #ni"ersity
candidate super"isor
Signature Date.....
MS. "AMIAH MAYAN"A
ii
DEDICATION
I wish to dedicate this project to my belo"ed son $l"is %ipkorir for his moti"ation&'r
(hilip kibet & my parents and my super"isor for the guidance she has accorded me. Abo"e
all I do thank almighty )od for his lo"e and grace.
iii
ACKNOWLEDGEMENT
I wish to thank the almighty )od for keeping me ali"e and pro"iding me with wisdom&
capacity and courage to go through the four year course successfully.
I appreciate and also humbled to gi"e my special thanks to my super"isor 's. *amiah
'ayanja. !hank you for your guidance& ad"ice and time you accorded to me during the
completion of this report.
Special thanks to my to +ose& Antoh& (hillip& ,ahito& Shikoh& Aggrey& ,ickie& !ony&
$mily and all those other friends and relati"es who supported me during the course.
)-D ./$SS 0-# A//
i"
TABLE OF CONTENTS
DECLARATION................................................................................................................I
APPROVAL.......................................................................................................................II
DEDICATION.................................................................................................................III
ACKNOWLEDGEMENT..............................................................................................IV
TABLE OF CONTENTS..................................................................................................V
LIST OF TABLES........................................................................................................VIII
ABSTRACT.....................................................................................................................I
CHAPTER ONE................................................................................................................#
1.1 BACK GROUND.........................................................................................................1
1.2 Statement of the problem...2
1.3 purpose of the study...3
1.4 5bjecti"es of the study...3
1.6 +esearch questions.3
1.7 SCOPE OF THE STUDY............................................................................................3
1.8 Significance of the study3
CHAPTER TWO: LITERATURE REVIEW.................................................................$
2.0 INTRODUCTION.......................................................................................................6
2.# ADVERTISING...........................................................................................................6
2.#.# ADVERTISING OB"ECTIVES..............................................................................7
2.#.2 FORMS OF ADVERTISING..................................................................................7
2.#.% ADVERTISING MEDIA..........................................................................................7
2.#.& STEPS IN CHOOSING AN ADVERTISING MEDIA.........................................8
2.#.$ STEPS TAKEN IN SETTING AN ADVERTISING BUDGET...........................9
"
2.2 SALES PERFORMANCE........................................................................................15
2.2.# SALES .....................................................................................................................11
2.2.2 SALES PROCESS..................................................................................................12
2.2.% EFFECTIVE SALES PROCESS..........................................................................13
2.2.& OUTCOMES OF SALES PROCESSES..............................................................13
2.2.$ THE OUTCOME OF THE SELLING PROCESS..............................................14
2.% RELATIONSHIP BETWEEN ADVERTISING AND SALES PERFORMANCE
...........................................................................................................................................16
2.& CONCLUSION..........................................................................................................18
CHAPTER THREE: METHODOLOGY.....................................................................#8
%.0 INTRODUCTION.....................................................................................................19
%.# RESEARCH DESIGN...............................................................................................19
%.2 SAMPLING DESIGN...............................................................................................19
%.2.# STUDYPOPULATION ........................................................................................19
%.2.2 SAMPLING SIZE...................................................................................................19
%.2.% SAMPLING METHOD..........................................................................................19
%.% DATA COLLECTION...............................................................................................1:
%.%.# DATA SOURCES....................................................................................................1:
%.%.2 DATA COLLECTION INSTRUMENTS.............................................................1:
%.& DATA PROCESSING' ANALYSIS AND PRESENTATION.................................1:
%.&.# DATA PRESENTATION........................................................................................25
%.$ LIMITATION OF THE STUDY..............................................................................25
CHAPTER FOUR:...PRESENTATION' ANALYSIS' AND INTERPRETATION OF
THE FINDINGS..............................................................................................................2#
"i
&.0 INTRODUCTION.....................................................................................................21
&.# DEMOGRAPHIC CHARACTERISTICS..............................................................21
&.2 FINDINGS ON THE FORMS OF ADVERTISING USED BY MUKWANO
INDUSTRY.......................................................................................................................24
&.% FINDINGS ON THE LEVEL OF SALES OF MUKWANO INDUSTRY...........35
&.& FINDINGS ON THE RELATIONSHIP BETWEEN ADVERTISING AND
SALES PERFORMANCE USING PEARSON CORRELATION.............................32
CHAPTER FIVE: SUMMARY' CONCLUSION AND RECCOMENDATION.......%&
$.0 INTRODUCTION.....................................................................................................34
$.# SUMMARY OF MA"OR FINDINGS......................................................................34
$.#.# FINDINGS ON THE FORMS OF ADVERTISING............................................34
$.#.2 FINDINGS ON THE LEVEL OF SALES IN MUKWANO INDUSTRY..........34
$.#.% FINDINGS ON THE RELATIONSHIP BETWEEN ADVERTISING AND
SALES...............................................................................................................................34
$.2 CONCLUSIONS........................................................................................................36
$.2.# FORMS OF ADVERTISING................................................................................36
$.2.2 ESTABLISHING THE LEVEL OF SALES FROM MUKWANO INDUSTRY
...........................................................................................................................................36
$.2.% RELATIONSHIP BETWEEN ADVERTISING AND SALES...........................36
$.% RECOMMENDATIONS...........................................................................................36
6.3.1 Areas for further research(((((((((((((((((((..((37
REFERENCES................................................................................................................%7
APPENDICES:RESEARCH !UESTIONAIRE..........................................................3:
"ii
LIST OF TABLES
!able 1; Annual report 255: to 2515...................................................................................2
!able 2; <umber of respondents........................................................................................21
!able 3; Age of respondents...............................................................................................21
!able 4; )ender..22
!able 6; /e"el of education...............................................................................................22
!able 7; 'arital status........................................................................................................23
!able 8; Department of respondents..................................................................................23
!able 9; <umber of years worked for the organi=ation.....................................................23
!able :; organi=ation ad"ertising all its products..............................................................24
!able 15; !ele"ision as a means of ad"ertising.................................................................24
!able 11; <ewspapers as a means of ad"ertising...............................................................26
!able 12; .rochures as a means of ad"ertising..................................................................26
!able 13; +adio as a means of ad"ertising........................................................................27
!able 14; maga=ines as a means of ad"ertising.................................................................27
!able 16; stickers as a means of ad"ertising......................................................................28
!able 17; workshops as a means of ad"ertising.................................................................28
!able 18; mobile ad"ertising as a means of ad"ertising....................................................29
!able 19; sponsoring e"ents as a means of ad"ertising.....................................................29
!able 1:; ad"erts reach the intended audience..................................................................2:
!able 25; 'ukwano is allowed to ad"ertise freely............................................................2:
!able 21; media used are accessible by the target market.................................................35
!able 22; !he le"el of sales has been increasing...............................................................35
!able 23; increasing sales "olume is e"ery ones responsibility.........................................31
!able 24; the le"el of sales "olume in 'ukwano is declining...........................................31
"iii
!able 26; increasing sales le"el is a challenge to all employees.......................................32
!able 27; !he analysis of the relationship between ad"ertising and sales "olume >?rom
!able 9 and !able 23@.........................................................................................................33
ix
ABSTRACT
!he study aimed at assessing the effect of ad"ertising on the performance of an
organi=ation& case study being 'ukwano industry in %ampala. !he study was mainly
looking at ad"ertising and performance of 'ukwano industry and if this was effecti"e to
the organi=ation
!he researcher used a cross sectional research design with both qualitati"e and
quantitati"e methods with a population study of 165people out of which a sample si=e of
45 employees was chosen .Stratified sampling design was used to di"ide the employees
into strata which were departments under which the employees worked &and they
included marketing &operational& production and supply departments .#sing simple
random sampling respondents were chosen from the different departments selected and
questionnaires distributed to the selected respondents from the four departments in the
industry. .oth the primary and secondary data was used during collection of data. Data
was collected by use of questioners and obser"ation method s and analy=ed in form of
tables.
?indings re"ealed that 'ukwano ad"ertises most of its products and it uses different
forms of ad"ertising and media& but the le"el of 'ukwanoAs sales was declining despite
of their frequent ad"ertisements. !here was a strong relationship of>rB 5.: 5@between
ad"ertising and sales performance.
!he industry should use most of the local languages commonly used in #ganda to win
customers from all tribes& use of e marketing to be adopted by the industry to reach most
of the people who can access the internet than listen to radios and tele"isions and also the
use celebrities in ad"ertising their products& and finally the researcher recommends the
use of other forms of ad"ertising for example sponsoring e"ents and also the use of
mobile phones to ad"ertise.
x
CHAPTER ONE
#.# BACK GROUND
Ad"ertising is any paid form of non personal presentation and promotion of ideas& goods&
or ser"ices by an identified sponsor >%otler and Armstrong& 2515@. !here are "arious
forms of ad"ertising like informati"e ad"ertising& persuasi"e ad"ertising& comparison
ad"ertising& and reminder ad"ertising. Informati"e ad"ertising is used to inform
consumers about a new product& ser"ice or future or build primary demand. It describes
a"ailable products and ser"ices& corrects false impressions and builds the image of the
company& >%otler& 2515@.Ad"ertising can be done through print media which includes
news papers &maga=ines &brochures &Audio media for example +adio& and "isual media
which includes billboards& and tele"ision >%otler and Armstrong 2515@.
Sales performance describes the trend of collections in terms of re"enue when comparing
different periods >'C Cathy& 1::4@. !he sales may be in form of offering products or
ser"ices to consumers. A ser"ice is any acti"ity or benefit that one party can offer to
another that is essentially intangible and does not result in ownership of anything >%otler
and Armstrong& 2515@.Sales "olume is the core interest of e"ery organi=ation and is based
on sales and profit .,hen "olume goes up profits rises and management in organi=ations
is made easier.
'ukwano is a manufacturing industry located in %ampala city along *inja road near
industrial area. It was established in 1:95 and it deals in the production of a "ariety of
beauty products for example smearing jelly& soaps& body lotions and creams. It also deals
with the other domestic products like cooking oils& be"erages and plastic containers.
'ukwano ad"ertises using "isual media for example the tele"ision and the Audio the
radio& print media for example the news papers. 'ukwano has launched a new detergent
powder to compete in $ast Africa common market through intensi"e ad"ertising
internationally Daily monitor April 2515& but there are some inefficiencies in the way
these organi=ation carries out its ad"ertisements for example 'ukwano ad"ertisements in
the "isual media is done in local language i.e. >luganda@ a language that can only be
understood by a few people in the country& making the ad"ertisement appealing only to a
1
group of people. !he ad"ertisements lacks the unique selling proposition in the
statements used to differentiate their products from competitors& they are done in the
same way as the competitors making it hard to differentiate its ads from others. .esides
their ad"ertisements donAt pro"ide room for further information about their products for
clarification >Daily 'onitor April 2515@
?or the past four years expected sales in 'ukwano ha"e differed from their actual sales
as shown in the table below whereby in the year 2558 there was a slight increment in ales
"olume and started declining from year 2559 to 255:
T)*+, #: A--.)+ /,01/2 2003 21 20#0
YEARS EPECTED SALES ACTUAL SALES
2558 255m 215m
2559 265m 255m
255: 235m 256m
2515 215m 1:9m
SOURCE4 A--.)+ /,01/2 2003 21 20#0
'ukwano expected 255m from sales in the year 2558 but the actual sales they had was
215m and in the year 2559 they expected 265m but they had 255m of sales& in the year
255: the industry expected to sale goods worth 235m but only managed to sale goods
worth 256m and lastly in the year 2515 they expected to get 215 out of the sales but they
recei"ed only 1:9m
#.2 STATEMENT OF THE PROBLEM
'ukwano carries out frequent ad"ertising of their products to increase their sales "olume&
through taking part in charitable funds in #ganda and e"en sponsoring sports .It
ad"ertises using radio& tele"ision and newspapers.
Despite its efforts in ad"ertising regularly the sales of 'ukwano industry ha"e not
impro"ed to the desired targets. !he sales in 'ukwano for the past four years ha"e been
declining.
#.% PURPOSE OF THE STUDY
2
!he purpose of the study was to establish the impacts of ad"ertising on sales
performance.
#.& OB"ECTIVES OF THE STUDY
1. !o examine the forms of ad"ertising in 'ukwano industry.
2. !o establish the le"el of sales performance in 'ukwano industry
3. !o establish the relationship between ad"ertising and sales in 'ukwano industry
#.$ RESEARCH !UESTIONS
1. ,hat are the forms of ad"ertising used by 'ukwano industryD
2. ,hat is the le"el of sales performance of 'ukwanoD
3. ,hat is the relationship between ad"ertising and sales performance in 'ukwano
industryD
#.5 SCOPE OF THE STUDY
C1-2,-2 6710,
!he study co"ered ad"ertising as the independent "ariable and sales performance as the
dependant "ariable.
G,18/)09:7)+ 6710,
!he study was centered at the 'ukwano industry in %ampala because it is the
headquarter of the industry where marketing plan is carried out& and it has large sales
"olume
T:;, 6710,
!he study looked at fi"e financial years back that is 2557 to 2515
#.7 SIGNIFICANCE OF THE STUDY
!he findings of the study were expected to benefit the following.
!he findings of the study were used as references for future research work.
!he results of the study are of surmountable information when drawing measures which
would in turn lead to capture of substantial market share.
!he study can be the source of reference on how to re"i"e and adopt and also follow the
ad"erts according to the dynamic markets.
3
CHAPTER TWO
LITERATURE REVIEW
2.0 I-2/1<.72:1-
!his chapter looks at ad"ertising as the independent "ariable& sales performance as the
dependent "ariable and the relationship between the two "ariables.
4
2.# A<=,/2:6:-8
Ad"ertising is any paid form of non personal presentation and promotion of ideas and
goods& or ser"ices by an identified sponsor >%otler and Arm strong 2515@ .although
ad"ertising is used mostly by commercial firms& it is also used by a wide range of
nonprofit organi=ations& professionals and social agencies that ad"ertise their causes to
"arious target publics >(hilip %otler and )arry Armstrong@.
Ad"ertising is a form of communication that typically attempts to persuade potential
customers to produce or to consume more of a particular brand of product or ser"ice
>www.wikipedia.orgwikiad"ertising@. 'any ad"ertisements are designed to generate
increased consumption of those product and ser"ice through the creation and
reinforcement of brand image and brand loyalty.
Ad"ertising is a non personal communication of information usually paid for and
persuasi"e in nature about products& ser"ices or new ideas by identified sponsors through
"arious media >Arens 1:97@.ad"ertising can also be defined as bringing a product or
ser"ice to the attention of potential and current customers. Ad"ertising is found on one
particular product or ser"ice. !hus an ad"ertising plan for one product might be "ery
different from the other product.
2.#.# A<=,/2:6:-8 1*>,72:=,6
!he o"erall ad"ertising objecti"e is to help build customer relationship by
communicating customer "alue to a specific target audience during a specific period of
time.
Identifying ad"ertising objecti"es is the first step taken in de"eloping an ad"ertising
program me. !hese objecti"es should be based on past decisions about the target market&
positioning& and marketing mix which define the job that ad"ertising must do in the total
marketing position.
6
2.#.2 F1/;6 1? )<=,/2:6:-8
According to %otler and Armstrong& there are "arious forms of ad"ertising that is
informati"e& persuasi"e and reminder ad"ertising. Informati"e ad"ertising is used to
inform the customers about a new product or feature and to build the image of the
company. >%otler and Armstrong& 1:::@.
(ersuasi"e ad"ertising is one used to build selecti"e demand for a brand by persuading
consumers that it offers the best quality for their money. It persuades a customer to accept
sales calls and to purchase now >some persuasi"e ad"ertising has become comparison
ad"ertising& in which a company directly or indirectly compares its brand with one or
more other brands.
+eminder ad"ertising is one used to keep consumers thinking about the product or
ser"ice .it is important for mature products or ser"ices. It reminds customers that the
products 'ay be needed in their near future& where to buy the product and maintaining
top of mind product awareness.
2.#.% A<=,/2:6:-8 ;,<:)
Ad"ertising may be done through "arious media like "isual& audio and print media. Eisual
media may include tele"ision& bill boards& posters& prices with company product name
and broachersA .print media may include newspapers& brochures& stickers& maga=ines&
business cards& new letters& and mobile "ehicles. Audio media includes radios.
-ther tools of ad"ertising may includeF infomercials& sponsoring e"ents& taking part in
trade shows& celebrity ad"ertising &email ad"ertising & placing corporate logos and the
side of boaster rockets and international space station& personal recommendations likeF
Gbring a friendH& G sell itH &mobile phone ad"erts like multi media messaging ser"ice
picture &"ideo messages ad"ergamer&2D barIcode and social network ad"ertising
>www.wikipedia& orgwiki& ad"ertising@
7
2.#.& S2,06 :- 79116:-8 )- )<=,/2:6:-8 ;,<:)
Armstrong specifies four major steps taken into consideration when choosing an
ad"ertising media& these are deciding on reach& frequency and impact of the medium
selected. +each is the percentage of people in the target market who are exposed to the ad
campaign. ?requency is the measure of how many times the a"erage person in the target
market is exposed to the message.
'edia impact is the qualitati"e "alue of message exposure through a gi"en medium for
example for products that need to be demonstrated& messages on tele"ision may ha"e a
great impact than those on radio since tele"ision has both sound and sight. In choosing
the type of media& the reach& frequency and impact of the major media types include
newspapers& tele"isions& direct mail& radios and maga=ines. 'edia choice is affected by
the media habits of target consumers that is& media that reaches target consumer
effecti"ely. <ature of products that is some of products and ser"ices are best ad"ertised
on tele"isions and color maga=ines.
!ypes of messages that is a major sale may require radio or tele"ision while a technical
sale requires maga=ines& and direct mailing or on line. Cost is another major factor in
media choice. !his looks at the total cost of using a medium ad the cost per ad"ert
exposure
Selecting specific media "ehicles with in each general media type such as specific
maga=ines& tele"isions & tele"ision shows or radio programmes &a company must consider
or complete the cost o"er thousand persons reached by a "ehicle& cost of producing
ad"erts for different media and also balance media cost measures against se"eral media
impact factors.
Deciding media timing is last step in choosing an ad"ertising media. !he company must
decide how to schedule the ad"ertising o"er the course of a year. Continuity or pulsing
patterns may be chosen. Continuity means scheduling the ad"erts e"enly within the gi"en
period while pulsing means scheduling ad"erts une"enly o"er a period of time.
8
2.#.$ S2,06 2)@,- :- 6,22:-8 )- )<=,/2:6:-8 *.<8,2
%otler and Armstrong further highlight the steps considered when setting the ad"ertising
budget .stage in product life cycle& new products typically need large ad"ertising budgets
to build awareness and to gain customer trail. 'ature brands usually require lower
budgets as a ratio to sales.
'arket share& high market share brands usually need more ad"ertising as a percentage of
sales than do low market share brands. .uilding the market or taking the share from
competitors requires larger ad"ertising spending than does simply maintaining current
share. Competition and clutter& in a market with many competitors and high ad"ertising
spending& a brand must be ad"ertised more hea"ily to be noticed abo"e the noise in the
market.
Ad"ertising frequencyF when many repetitions are needed to represent the brands
message to consumers& the ad"ertising budget must be larger.
(roduct differentiation .A brand that closely resembles other brands in its product class
requires hea"y ad"ertising to set it apart. ,hen the product differs greatly from
competitors& ad"ertising can be used to point out the differences to consumers.
According to Da"id et al 1:99& effecti"e ad"ertising decisions are aimed at supporting the
marketing strategy for a companyAs products and also influences purchase decision. !he
first step in creating effecti"e ad"ertisement messages is to decide what general messages
will be communicated to consumers. !his in"ol"es de"eloping an effecti"e message
strategy that begins with identifying customer benefits which can be used as ad"ertising
appeals. 0ou can then create a compelling idea or concept that brings the message
strategy to life in a distincti"e and memorable way. !his in turn guides the choice of
appeals to be used in an ad"ertising campaign.
Ad"ertising campaigns ha"e three main characteristicsF
M,)-:-8?.+& they should point out benefits that make the product more meaningful to the
customers.
9
B,+:,=)*+,& customers must belie"e that the product or ser"ice will deli"er the promised
targets.
D:62:-72:=,F be able to tell how the product is better that competing brands.
(ride and ?ewel 2557 suggest fi"e significant decisions to be considered when drawing
ad"ertising programmeF these include what media should be in"ol"edD
,hat message should be con"eyedD ,hat should be the companies o"erall ad"ertising
budgetD Jow does the firm know that the ad"ertising is achie"ing its objecti"esD
!he only reason for ad"ertising is to sell some thing that is product& ser"ice or e"en an
idea >,illiam *.s et al 1::9@.
Scheme and smith 1:95 insists that it is not enough to produce a good product& and you
do not make it& ad"ertising only makes it accessible to customers and stimulates
consumption and purchase.
Ad"ertisement also facilitates the introduction of a new product &expands the industry
sales and the company& supports personal selling& reaches people inaccessible by sales
force& & builds good will of the firm hence impro"ing its reputation and consequently sales
are impro"ed. Jowe"er ad"ertising is costly and may not be as persuasi"e as a
companyAs sales person.
'any companies used straight forward method in determining ad"ertising applications
like percentage of sales& standard expenditure per unit& the task method market share
relations between ad"ertising and sales re"enue since there are mainly other factors that
determine the sales re"enue of a company like price& perception towards the product
>kotler and Armstrong@.
2.2 S)+,6 0,/?1/;)-7,
Sales in business terms are the actual sales in money "alues& a company recei"es after
necessary collections are made from different sales channels of the original total
production put on the market >'c Cathy et al& 1::4@ .it is sales that stimulate production
:
in a company and consequently profits which are affected by "arious factors some of
which are controllable like quality and others are uncontrollable like competition and
general price changes.
Sales performance is an integrated frame work that enables organi=ations to plan and
model sales strategies and ensure timely execution of sales initiati"es while ensuring both
front line sales people and decisionsImarkers ha"e "isibility into performance . Sales
performance represents the next generation of best practices for sales. >'ichael D& 2557@.
Sales performance also refers to the total amount of firmAs out put sold to the market
especially on monthly or annually basis .this is affected by many factors including
customer relation ship& marketing management of the firm and sales force skills and
moti"ation and e"en the pricing of the goods and ser"ices >Amanda D.J 2552@
Sales re"enue is the total amount of money that the firm gets from the sale of all its goods
and ser"ices in a gi"en period of time. !his is usually six months or a year if a firm
produced only one product or ser"ice& the sales re"enue will be the price of the product
multiplied by the number of products sold. In the case of more than one product or
ser"ice the re"enue from each needs to be added together >wood& 1::7@.
!he figure for sales re"enue in profit and less account does not necessarily mean that the
firm has recei"ed all the money because although they may ha"e sold that quantity of the
product& they may still be owed some of the money as debtors @.aker 2551@.
Sales performance refers to consistent and satisfactory turn o"er of goods and ser"ices
produced and put on the market by an organi=ation or company. It is the sole economic
goal of companies to ha"e as much goods sold on the market. !his facilitates the rate of
goods turn o"er and consequently re"enue and increased production.
15
2.2.# S)+,6
According to stein >2557@ it is belie"ed that the right sales approach consists of sales
training that supports a companyAs sales methodology and related processes.
Designing or adopting sales methodology is critical& with out this methodology in place&
training is a tactical attempt to a larger problem. !he selling methodology must de
de"eloped based on the companyAs unique situation in their market& their customers & how
the customers buy &the complexity and price le"els of the products and ser"ices the
company offers &competiti"e pressures & reporting requirements &the participation partners
and the skill le"el of their current sales people >stein 2557@.
In the past years some organi=ations ha"e found that their sales process are becoming
more challenging while the performance of some of their sales professional who were
past stars are deteriorated. Selling complex products and ser"ices& "ersus selling
commodities has always been more difficult and sales professionals must ha"e different
skill sets >stein& 2557@
'ost companies recogni=e that the world and their buyers buying processes probably
ha"e changed fore"er. .ut some companies ha"e not recogni=ed the need to make change
in their sales force >stein 2557@.
In dealing with falling or declining sales& it is ad"isable to in"est in some short term
training to up grade the skills of sales and customer ser"ice staff. If you can not afford to
fire experience& train the staff you can afford. !his is an in"estment you can not afford to
miss. ?ind training that produces results tailored to get to your situation. It can be
seminars or distance learning that does not require time away from the property or the job
>"erret& 2554@.
According to Jardesty >2557@ & sales training programs encompass a "ariety of necessary
components &things like company policies & sales paper work& customer relationship
management &sales force automation orientation& sales processes &company ser"ices
11
&sales skill training and product features and benefits . stein 2557 further urges that & e"en
when companies do decide that sales training is a step in the right direction& they do not
always proceed forward for the right reasons in the right order &or in a way that results in
them& dri"ing more sales re"enue companies ha"e learned how to employ sales training
as a strategic tool.
!hose that are leaders in the industry& offering their stake holders maximum return on
their input are able to quickly adapt to changing market conditions. &are respected by their
customers &and pro"ide rock solid &consistent sale performance .the sales people that
work for those companies are moti"ated &stay at their jobs longer and are proud to help in
recruiting their friends who ha"e been successful selling for other companies. !his there
fore leads to impro"ed sales performance.
2.2.2 S)+,6 0/17,66
A sales process is a systematic approach in"ol"ing a series of steps that enables a sales
force to close more deals& increase margins and make more sales through referrals.
Acti"ely using and desire to become willing to implement a sales process could lead to
more sales. <ormally a sales process in"ol"es the following key stepsF prospecting
qualifying & proposal presentation& handling objections &closing sale and followIup for
repeat business Kreferrals >D"ora &2559@.
2.2.% E??,72:=, 6)+,6 0/17,66
An effecti"e sales process has elasticity to accommodate extraordinary situations. Is your
company prepared to meet a certain spike in demand for their products or ser"icesD
$ffecti"e sales processes stand the rigors of changing times and market conditions and
produce the best possible results in most circumstances. Companies ha"e to be flexible
and change with the changing en"ironment and different consumer needs so as to be able
to offer consumers what they need& when they need it.
An effecti"e sales process produces sales results with unerring precision as a
manufacturing unit produces finished products& it should there fore be e"aluated to gauge
12
performance of both the staff and organi=ation. !hus considers constant monitoring and
super"ision of organi=ational acti"ities.
A sales process can be "iewed as an integrated method where man power refers to the
sales force& the product or ser"ice is the raw material& strategy refers to sales plans and
methods& and technology refers to the latest communication and sales technologies.
2.2.& O.271;,6 1? 6)+,6 0/17,66,6
!he out come of a sales process can be explained by a series of steps that are systematic
and not hapha=ard. +andom acts produce random and uncertain results. In sales& random
acts can be used occasionally& but systematic and well defined best practices can assure
predictable results >"akratsas and Ambler@.
!he steps includeF predictable out comes& repeatable acti"ities& and tangible results.
(redictable out comes are desired and predictable through a series of action that could
lead to more sales and higher margins. +espectable acti"ities are the ones that ha"e to be
done o"er again by any sales person with in the organi=ation. !angible results are the out
comes that can be measured and compared. +ele"ancy for others that is a good sales
process may be cloned to suit other organi=ations and they may emulate a successful
sales process model. A group of companies may apply a particularly producti"e sales
process to all or some of its di"isions.
2.2.$ T9, 1.271;, 1? 29, 6,++:-8 0/17,66
Identifying and qualifying Fleads to take in to account only those prospects that truly ha"e
the potential to buy according to their importance & to assign the right resources to each of
them .successful sales people spend more time with their top re"enue producing accounts.
!his implies that the customer with the uniqueness of the product ser"ice and your
company& talk about the need of the customer and de"elop customi=ed "alue proportions
to sol"e their business use & con"ince the customer that your company is the one that can
take care of the need and non can do it better than you. Assessing the purchasing power
13
of each potential customer& large percentage off profit sales and forge strong bonds
between the company and customers through the sales staff.
)riffith >2551@ states that profitability of a business is the justification of good
performance. Je further says that& profits of a business are the end results of operations
and an indicator of good performance. !here fore& profit is a basic yardstick with which
the success of the business can be measured. It is a reward for enterprise inno"ation and
taking risks.
!he sole reason for setting up a business is creation of customer& not profit .profit is as a
result of coincidence during business operations. >Jampton& 2551@ contends that business
do not carry on their acti"ities solely with an eye of achie"ing the highest possible profits
but business ha"e placed a high "alue on the growth of sales and willing to accept lower
profits in order to gain the stability pro"ided by large sales.
2.% R,+)2:1-69:0 *,2A,,- )<=,/2:6:-8 )-< 6)+,6 0,/?1/;)-7,
!he essence of ad"ertising is to increase sales re"enue hence impro"ing sales
performance. >Da"id et al 1:99@. Ad"ertising combines with a host of other influences to
determine what contribution ad"ertising makes to the buyerAs purchase decision. !he
retailer john ,anamaker is said to ha"e remarked that he knew that only half of his
ad"ertising was effecti"e but he was unable to know which half it was.
It is through ad"ertising or other forms of promotion that brands in different market
segments can effecti"ely tell people in the market that a product is intended specially for
them. $ngel 1::1& mc )ann and +ussell& 1::9@.
!he significance of ad"ertising is to let customers know that an established brand is still
around and it has certain characteristics& uses and benefits. >(ride et al 1:9:@.
$ffecti"e ad"ertising can increase sales of ad"ertisers products& and by so doing increase
their profits. Ad"ertising pro"ides consumers and other prospects with information about
different products that are a"ailable to them. !his enables consumers to compare and
14
choose between the products and encourages competition. Competition encourages
companies to be more price and quality conscious so as to retain customers and clients
>Cambridge international college training manual& 2555@.
!he decision to ad"ertise implies a decision to compete in a new and aggressi"e way with
in the market. !his means the pro"ider will no longer rely too solely upon personal sales
man ship to gain distribution. Instead he implies his readiness to and intention of
speaking directly to consumers in abroad countries. !he decision to ad"ertise also helps
the marketer to expand his share in the market. Ad"ertisement helps in de"elopment and
expansion of the market and the consumer acceptance of the product.
Dunn 1:79 points out that the market needs and conditions are changingF there fore there
is need for creati"ity in selling. !his will show the company what to produce so as to
satisfy the needs of the users. ,hen companies produce such a commodity and they
ad"ertise& there is an automatic high response in consumption. !hus showing the
relationship between ad"ertising and sales performance.
(enchman 1::2 found out that ad"ertising has a greater potential of building awareness
of people hence obtaining a high preference in the market share because a big percentage
of the population has one or more of the mass medium such as radios and tele"ision. !his
fact introduces the ad"ertised company to many people. If the ad"ertising is satisfying it
will lead to increase in "olume of sales.
(ride ? et al >1:9:@ obser"es that ad"ertising often stimulates demand thus stimulating
sales. ?or ad"ertising to ha"e a direct relationship with sales re"enue& the entire market
mix must be "iewed by the customer as the right one. >$ngel et al 1::1& mc Cathy and
per"eault& 1:99@.
)ordon >1::3@ states that companies ad"ertise in order to compete in a new and
aggressi"e way with in the marker& to increase their market share through increased
customer & utili=e the low cost way of teaching customers to create marketing approaches.
16
Da"id et al >1:99@ recogni=es that many scholars ha"e heard different "iews on the effect
of ad"ertising on sales performance .howe"er most of them agree that effecti"e
ad"ertising will e"entually increase re"enue.
*efikins >1::5@ has stated that in a competiti"e society there is not only competition
between ri"al ad"ertisers but choice between their ri"al products and ser"ices. Also
people forget "ery easily and there fore the biggest ad"ertiser in the world will get
bankrupt "ery easily if he stopped ad"ertising.
Companies ad"ertise to create familiarity with or of a product& which helps to create
confidence in it. If a product is simply made a"ailable& it is important to inform people of
its existence.
2.& C1-7+.6:1-
A great deal of research into relationship between sales response and ad"ertising
indicated that it is a function with decreasing returns. !hat is with more and more input&
one gets less and less out put. !his function rises slowly at first and then more rapidly
before le"eling off. .ecause most ad"ertising campaigns must o"ercome a substantial
inertia in the market. As the impact of repeated messages and resulting consumer learning
attracts a large group of consumers& and sales per unit increase rapidly.
As time passes& returns to ad"ertising diminish because demand has& to a large extent
been satisfied and more ad"ertising input is necessary to con"ert a prospect in to a
consumer.
In general this response function has been found to exhibit decreasing returns as
ad"ertising expenditure is increased.

17
CHAPTER THREE
METHODOLOGY
%.0 I-2/1<.72:1-
!his chapter looked at the +esearch design& population study& sampling design& data
collection methods& data analysis and the limitations likely to be experienced during the
study.
%.# R,6,)/79 D,6:8-
!he researcher used a cross sectional research design with both qualitati"e and
quantitati"e methods .!he design was appropriate in in"estigating the empirical and
theoretical relationship between the "ariables.
%.2 S);0+:-8 D,6:8-
%.2.# S2.<B 010.+)2:1-
!he research comprised of the $mployees of 'ukwano industry drawn from a population
of 165 people because they were expected to pro"ide rele"ant information to the problem
under study.
18
%.2.2 S);0+:-8 6:C,
!he sample si=e used was 45 respondents and was determined according to the %rejcie
and 'organ >1:85@ where the sample si=e was determined basing on confidence le"el
needed from the selected population under study.
%.2.% S);0+:-8 ;,291<
!he research used stratified random sampling to di"ide the employees into different
departments under which they worked which included operational& supply& production
and marketing departments. Simple random sampling method was used to select
respondents from the selected departments in the industry& where by from the marketing
department 17 employees were chosen& from production we had 9 respontends& from
supply department 9 responds were chosen and finally 9 respondents were selected from
production department.
%.% D)2) C1++,72:1-
%.%.# D)2) 61./7,6
P/:;)/B <)2)
!his data was obtained from the source. !his was used where one required specific
information which does not exist elsewhere or in another form or when the topic was
being researched on for the first time. !he researcher collected primary data through
going to the field.
S,71-<)/B <)2)
Secondary data was the one obtained from sources which already exist about organi=ation
and had been used before& for example information from journals& books and internet.
!he researcher collected information from both external and internal sources.
%.%.2 D)2) 71++,72:1- :-62/.;,-26
!.,62:1--):/,6
!hese are self administered questions that are both structured and semi structured
formali=ed questions used in the sur"ey to collect information which is later analy=ed
to pro"ide results necessary for sol"ing a gi"en research problem .!he research used self
19
administered questionnaires . !hese allowed respondents to choose from alternati"e that
were pro"ided by the researcher.
O*6,/=)2:1-
!his is a systematic "iewing coupled with consideration of the seen phenomenon as they
occur in nature with regard to cause and effect mutual relationship. !he researcher used
this instrument to obser"e the attitudes of respondents towards the topic being researched
on.
%.& D)2) 0/17,66:-8 )-)+B6:6 )-< 0/,6,-2)2:1-
!his was done using frequency tables. !his helped to summari=e data into tables using a
descripti"e statistics such as percentages.
%.&.# D)2) 0/,6,-2)2:1-
!his was done using $xcel computer package .!his helped to summari=e data into tables
and also to find out the relationship between the two "ariablesF that is ad"ertising and
sales.
%.$ L:;:2)2:1- 1? 29, 62.<B.
1. !he researcher found difficulties in collecting data because some of the
respondents were not cooperati"e and willing to gi"e out the information the
researcher needed.
2. Attitude was studied from the "iew point of the employees& thus did not re"eal the
exact consumer attitude.
3. !he researcher had tough time in collecting information about the sales
performance because the information was "alued confidential and therefore they
were not willing to disclose the information.
1:
CHAPTER FOUR
PRESENTATION' ANALYSIS' AND INTERPRETATION OF THE FINDINGS
&.0 I-2/1<.72:1-
!his chapter focuses on the presentation and discussion of findings on the relation ship
between ad"ertising and sales performance. It is based on demographic and objecti"es of
the research which includes examining the forms of ad"ertising& establishing the le"el of
sales and relationship between ad"ertising and sales performance. It is to be presented in
form of tables of percentages and frequencies.
!he information in this chapter was obtained mainly using questionnaires .45
questionnaires were issued out but only 32were filled as in the table below.
T)*+, 2: N.;*,/ 1? /,601-<,-26
D,2):+6 F/,D.,-7B P,/7,-2)8,
+esponses 32 95
<on response 9 25
!otal 45 155
Source; primary Data
25
?rom !able 2; 95L responds and 25 L did not respond top the questionnaires. !his
shows a good turn up of the respondents despite the fact that they were scattered around
the industry.
&.# D,;18/)09:7 79)/)72,/:62:76
T)*+, %: A8, 1? /,601-<,-26
A8, F/,D.,-7B P,/7,-2)8,
65I6: 4 12.6
45I4: 7 19.9
35I3: 15 31
25I2: 12 38.6
!otal 32 155
Source; primary data.
?rom table 2& 38.6L of respondents were between the age of 25I2:& 31L were between
35 I3:& 19.9L were between 45I4:& and 12.6 L were between 65 I6:.
!his shows that most of the respondents were mature people.
T)*+, &: G,-<,/
G,-<,/ F/,D.,-7B P,/7,-2)8,
?emale 12 38.6
'ale 25 72.6
!otal 32 155
Source; primary Data
?rom table 3& 72.6L of the respondents were male while 38.6L were female. !his shows
that research was not gender balanced.
T)*+, $: L,=,+ 1? ,<.7)2:1-
L,=,+ 1? ,<.7)2:1- F/,D.,-7B P,/7,-2)8,
'aster 4 12.6
Degree 17 65
Diploma 15 31
- and A le"el 2 7
(rimary 5 5
!otal 32 155
Source; primary Data.
21
?rom table 4& 65L of respondents were degree holders& 12.6L were mastersA holders and
7L were - and A le"el certificate holders. !his implies that most of the employees were
qualified.
T)*+, 5: M)/:2)+ 62)2.6
D,2):+6 F/,D.,-7B P,/7,-2)8,
'arried 18 63
Separated 2 7.3
Single 15 31.3
,idowed 3 :.3
!otal 32 155.5
Source; primary Data.
?rom table 6& 65L of the respondents were married& 31.3L were single& :.3L were
widowed and 7.3L were separated.
T)*+, 7: D,0)/2;,-2 1? /,601-<,-26
D,2):+6 F/,D.,-7B P,/7,-2)8,
'anagement 2 7.3
'arketing 17 65
-thers 14 43.9
!otal 32 155.5
?rom table 7& 65 L of the respondentsA were from the marketing department& 43L were
from other department and 7.3L were form management department.
T)*+, 8: N.;*,/ 1? B,)/6 A1/@,< ?1/ 29, 1/8)-:C)2:1-
0ear ?requency (ercentage
-"er 15 years 17 65
6I 15 years 4 12.6
1I6 years : 29
/ess than a year 3 :.4
22
!otal 32 155.5
Source; primary data.
?rom table 8& 65 L of the respondents ha"e been in the industry for o"er 15 years& 29L
ha"e worked between 6I15 years& and :.4L ha"e worked in the industry for less than a
year. !his implies that the industry retains its employees.
&.2 F:-<:-86 1- 29, ?1/;6 1? )<=,/2:6:-8 .6,< *B M.@A)-1 :-<.62/B
T)*+, 3: 1/8)-:C)2:1- )<=,/2:6,6 )++ :26 0/1<.726
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 16 47.:
Agree 16 47.:
<ot sure 2 7.3
Disagree 5 5
Strongly disagree 5 5
!otal 32 155.5
Source; primary Data.
?rom !able 9& 47.:L of respondents agreed that industry ad"ertises all its products.
47.:L of them strongly agreed& 7.3L were not sure& and none of the respondents
Disagreed. !his implies that 'ukwano industry carries out ad"ertising on all its products.
T)*+, #0: T,+,=:6:1- )6 ) ;,)-6 1? )<=,/2:6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 21 76.7
Agree 15 31.3
<ot sure 1 3
Disagree 5 5
Strongly agree 5 5
!otal 32 155.5
Source; primary Data.
23
?rom table :& 76.7L of the respondents strongly agreed that tele"ision is a means of
ad"ertising used by 'ukwano& 31.3L agreed& and 3L were not sure. !his indicates that
'ukwano uses tele"ision as a means of ad"ertising.
T)*+, ##: N,A60)0,/6 )6 ) ;,)-6 1? )<=,/2:6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 12 38.6
Agree 14 38.6
<ot sure 7 5
Disagree 5 5
Strongly agree 5 5
!otal 32 155.5
Source; primary Data.
?rom table 15& 43.9L agreed that newspapers were used as a means of ad"ertising& 38.6L
strongly agreed& 19.9L were not sure. !his implies that 'ukwano uses <ewspapers as a
form of ad"ertising.
T)*+, #2: B/179./,6 )6 ) ;,)-6 1? )<=,/2:6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 25 31.6
Agree 12 38.6
<ot sure 9 26
Disagree 5 7.3
Strongly agree 5 5
!otal 32 155.5
Source; primary Data.
?rom !able 11& 38.6L of respondents agreed that the industry used brochures as a means
of ad"ertising& 31.3L strongly agreed& 26L were not sure& 7.3L Disagreed. !his implies
that .rochures are used by 'ukwano to ad"ertise products.
24
T)*+, #%: R)<:1 )6 ) ;,)-6 1? )<=,/2:6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 25 72.6
Agree 12 38.6
<ot sure 5 5
Disagree 5 5
Strongly agree 5 5
!otal 32 155.5
Source; primary Data.
?rom table 12& 72.6L of the respondents strongly agrees that +adio is used as a means of
ad"ertising& 38.6L agreed& non disagreed nor were not sure. !his implies that the radio is
one of the means of ad"ertising by 'ukwano industry.
T)*+, #&: ;)8)C:-,6 )6 ) ;,)-6 1? )<=,/2:6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 8 21.:
Agree : 29
<ot sure 14 43.9
Disagree 5 5
Strongly agree 2 7.3
!otal 32 155.5
SourceF primary data
?rom table 13& 43.9Lof respondents were not sure whether maga=ines were used to
ad"ertise in the company& 29L agreed& 21.:L strongly agreed and 7.3L strongly
disagreed. !his implies that maga=ines are means of ad"ertising used by 'ukwano but
not commonly used.
T)*+, #$: 62:7@,/6 )6 ) ;,)-6 1? )<=,/2:6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 3 :.4
Agree 9 26
<ot sure 16 47.:
Disagree 7 19.9
Strongly agree 5 5
!otal 32 155.5
SourceF primary Data;
26
?rom table 14& 47.:L of the respondents were not sure whether stickers were used as a
means of ad"ertising. 26L agreed& 19.9L disagreed and :.4L strongly agreed. !his
indicates that stickers are used on a "ery small le"el as a means of ad"ertising.
T)*+, #5: A1/@69106 )6 ) ;,)-6 1? )<=,/2:6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 2 7.3
Agree 4 12.6
<ot sure 17 65
Disagree 7 19.9
Strongly agree 5 12.6
!otal 32 155.5
Source; primary Data.
?rom table 16& 65L of the respondents were not sure whether workshops was used by the
industry to ad"ertise& 19.9L Disagreed& 12.6L Agreed& 12.6L strongly disagreed and
7.3Lstrongly agreed. !his implies 'ukwano industry does not use workshops as a means
of ad"ertising.
T)*+, #7: ;1*:+, )<=,/2:6:-8 )6 ) ;,)-6 1? )<=,/2:6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 2 7.3
Agree 4 12.6
<ot sure 16 47.:
Disagree 6 16.7
Strongly agree 7 19.9
!otal 32 155.5
Source; primary data.
?rom table 17& 47.:L of the respondents were not sure whether the industry ad"ertised
using mobile phones& 19.9 Lstrongly disagreed& 16.7L Disagreed& 12.6L agreed and
7.3L strongly agreed. !his implies that mobile ad"ertising is not commonly used.
27
T)*+, #8: 601-61/:-8 ,=,-26 )6 ) ;,)-6 1? )<=,/2:6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 12 38.6
Agree 19 67.3
<ot sure 2 7.3
Disagree 5 5
Strongly agree 5 5
!otal 32 155.5
Source; primary Data.
?rom table 18& 67.3L of the respondents agreed that sponsoring of e"ents is used by
industry to ad"ertise& 38.6L strongly agreed& 7.3L were not sure& none disagreed nor
strongly disagreed.
T)*+, #3: )<=,/26 /,)79 29, :-2,-<,< ).<:,-7,
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 6 16.7
Agree 19 67.3
<ot sure : 29.1
Disagree 5 5
Strongly agree 5 5
!otal 32 155.5
Source; primary Data.
?rom table 19& 67.3L of the respondents agreed that ad"erts of the company reach the
intended audience& 29.1L were not sure. 16.7L strongly agreed and none disagreed nor
strongly disagreed. !his implies that ad"ertisements reach intended audience.
T)*+, 20: M.@A)-1 :6 )++1A,< 21 )<=,/2:6, ?/,,+B
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 9 26
Agree 14 43.9
<ot sure 15 31.3
Disagree 5 5
28
Strongly agree 5 5
!otal 32 155.5
Source; primary Data.
?rom table 1:& 43.9L of the respondents agreed that 31.3 were no sure& 26L strongly
agreed and none disagreed nor strongly disagreed. !his implies that the organi=ation is
allowed to ad"ertise freely and it can ad"ertise any where.
T)*+, 2#: ;,<:) .6,< )/, )77,66:*+, *B 29, 2)/8,2 ;)/@,2
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree : 29
Agree 16 47.:
<ot sure 9 26
Disagree 5 5
Strongly agree 5 5
!otal 32 155.5
Source; primary data.
?rom table 25& 47.:L of the respondents agreed that media used to ad"ertise are
accessible by the target market &29L strongly agreed& 26L were not sure&. !his implies
that the industry uses right media to ad"ertise.
&.% F:-<:-86 1- 29, +,=,+ 1? 6)+,6 1? M.@A)-1 :-<.62/B.
T)*+, 22: T9, +,=,+ 1? 6)+,6 9)6 *,,- :-7/,)6:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 4 12.6
Agree 9 26
<ot sure 6 16.7
Disagree 16 47.:
Strongly agree 5 5
!otal 32 155.5
Source; primary Data
29
?rom table 21& 47.:L of the respondents disagreed that the sales were increasing in
'ukwano& 26L agreed& 16.7L were not sure& 12.6L strongly agreed. !his implies the
sales are not increasing.
T)*+, 2%: :-7/,)6:-8 6)+,6 =1+.;, :6 ,=,/B 1-,6 /,601-6:*:+:2B
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 4 12.6
Agree 6 16.7
<ot sure 3 :.4
Disagree 12 38.6
Strongly agree 9 26
!otal 32 155.5
Source; primary Data.
?rom table 22& 38.6L of respondents disagreed that increasing sales re"enue was not
e"ery workerAs responsibility. 26L strongly disagreed& 13.7L agreed& 12.6 L strongly
agreed. !his implies increasing "olume of sales was for particular workers.
T)*+, 2&: 29, +,=,+ 1? 6)+,6 =1+.;, :- M.@A)-1 :6 <,7+:-:-8
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree : 29
Agree 12 38.6
<ot sure 4 12.6
Disagree 4 12.6
Strongly agree 3 :.4
!otal 32 155.5
Source; primary data.
?rom table 23& 38.6L of respondents agreed that the sales "olume is declining& 29L
strongly agreed& 12.6Lwere not sure& 12.6L Disagreed and :.4L strongly disagreed. !his
implies that sales re"enue is declining.
2:
T)*+, 2$: :-7/,)6:-8 6)+,6 +,=,+ :6 ) 79)++,-8, 21 )++ ,;0+1B,,6
D,2):+6 F/,D.,-7B P,/7,-2)8,
Strongly agree 4 12.6
Agree 6 16.7
<ot sure 3 :.4
Disagree 11 34.4
Strongly agree : 29
!otal 32 155.5
Source; primary Data.
?rom table 24& 34.4L of the respondents disagree on increasing sales le"el in 'ukwano
being a challenge to all employees. 29L strongly disagreed& 16.7L agreed and 12.6L
strongly agreed. !his implies that increasing sales "olume possess challenge to a few
employees in the industry.
&.& F:-<:-86 1- 29, /,+)2:1-69:0 *,2A,,- )<=,/2:6:-8 )-< 6)+,6 0,/?1/;)-7, .6:-8
P,)/61- 71//,+)2:1-
!his section focuses on establishing the relationship that exists between ad"ertising of
products and sales performance. It looks at ad"ertising as independent "ariable while
sales performance is a dependent "ariable. !he selections tested to select the relationship
are the respondents. (erception relating to ad"ertising in the company table : and their
perceptions on how ad"ertising increases the number of products bought. >!able 24@.!he
findings of the section are summari=ed in the following table.
!he (earsonAs rank correlation co efficiency is pro"ided in the following formula.
r B n Mxy IMxMy
nMxNI >Mx@ N n MyNI>My@N
,here
r K (earsonAs correlation co efficiency and
nI ?requency.
T)*+, 25: T9, )-)+B6:6 1? 29, /,+)2:1-69:0 *,2A,,- )<=,/2:6:-8 )-< 6)+,6 =1+.;,
35
r B 32>323@ I32>32@
32 >14629I1524@ > 32x277I464@

B 15337I1524
>13554@ >9569@
B :312
1565:9329
B :312
15261.86
r B 5.:
CHAPTER FIVE
SUMMARY OF FINDINGS CONCLUSION' RECCOMENDATION
$.0 INTRODUCTION
!his chapter summaries the field disco"eries& draws completion and recommendations
and ends with areas of further research. !he objecti"e of the research were examining the
31
S7)+, A<=,/2:6:-8 EFG
ET)*+, 3G
S)+,6
0,/?1/;)-7,EBG
ET)*+, 2&G
B FH BH
Strongly
agree
16 : 136 226 91
Agree 16 12 195 226 144
<ot sure 2 4 9 4 17
Disagree 5 4 5 5 17
Strongly
disagree
5 3 5 5 :
IEFG %2 IEBG %2 IEFBG %2% IEFHG&$& IEBHG255
forms of ad"ertising used by 'ukwano industry & establishing the le"el of sales of
'ukwano industry and finding the relationship between ad"ertising and sales
performance.
$.# SUMMARY OF MA"OR FINDINGS
$.#.# F:-<:-86 1- 29, ?1/;6 1? )<=,/2:6:-8
!he forms of ad"ertising used by the industry are tele"ision& radios& maga=ines&
brochures& newspapers& stickers and posters. 'ost of these forms are interrelated although
some like radios and tele"isions are more used than the others.!he findings re"ealed that
the industry uses tele"ision in ad"ertising than other forms It was also found out that
'ukwano ad"erti=es through all media types which included "isual& audio and print
media .
$.#.2 F:-<:-86 1- 29, +,=,+ 1? 6)+,6 1? M.@A)-1 :-<.62/B
?rom the findings it was established that the le"el of sales is declining by the decline
sales re"enue. !his was due to failure to in"ol"e the public and use of ad"ertising media
that is not accessible by most #gandans. ?ailure of the industryAs ad"erts reaching the
intended audience was also seen to be major cause of decline in the sales "olume.
$.#.% F:-<:-86 1- 29, /,+)2:1-69:0 *,2A,,- )<=,/2:6:-8 )-< 6)+,6
?rom chapter four& it was established that there is a strong relationship between
ad"ertising and sales. !his is supported by a Opositi"e relationship established by (earson
correlation >5.:@ together with the positi"e responses from the questionnaires.
$.2 CONCLUSIONS
$.2.# F1/;6 1? )<=,/2:6:-8
?rom the finding of the study& it is e"ident that there are "arious forms of ad"ertisements
used by the organi=ation. .ut according to the responses there are some forms which are
mostly used than others &this includes radios and tele"isions. !hese ha"e helped the
organi=ation to raise awareness about the existence of "arious types of products produced
by the company.
32
$.2.2 E62)*+:69:-8 29, +,=,+ 1? 6)+,6 ?/1; M.@A)-1 :-<.62/B
!he le"el of sales in 'ukwano is declining as indicated in table number 23 where by
38.8L of the respondents agreed that the sales le"el in 'ukwano is declining. In the year
2558 the industry recorded the highest sales "olume but as the years went on the sales
started declining.
$.2.% R,+)2:1-69:0 *,2A,,- )<=,/2:6:-8 )-< 6)+,6
!he relationship between ad"ertising and sales is "ery strong. !his is shown by person
correlation analysis>rB5.:@ supported by the responses from the questionnaires.
,here most of the respondents agreed that the media used reach the intended audience.
$.% RECOMMENDATIONS
'ukwano industry should use other forms of ad"erting like sponsoring e"ents and use of
mobile phone ad"ertising. !his will increase awareness about the "arious products
produced by the industry.
!he industry should choose the most effecti"e media for ad"ertising. A media that is
affordable by many people for example radios.
!he industry should use different common local languages used in the country so that
e"ery indi"idual can get the messages from the ad"erts.
$Imarketing should also be used to reach most the people who spend time on the internet
and ha"e no timer to listen to radios or watch tele"isions.
!he industry should also use celebrities in the country to help them ad"ertise their
products for this can attract big crowds from which potential customers can be found.
$.%.2 S.88,62,< )/,)6 ?1/ ?./29,/ /,6,)/79.
33
Due to limited time& this research is not conclusi"e as such. It is therefore important that
further research be carried out on he following.
1. $mployees moti"ation and sales performance
2. $ffects of eImarketing on sales "olume
3. Impacts of employees training on sales
REFERENCES
Arm strong& ' >1:::@ Juman resource management practice& > 8
th
edition@ ./ondon
kogan.
Dunban& D&s >1:79@ !he politics of the economics of ad"ertising& journal of ad"ertising
research foundation.
,ood& ? >1::4@ .usiness accounting 1 /ondon.
)ilson & C and .eckam& J >1:99@ F Ad"ertising 2
nd
edition
34
*efkins& ? >1::5@ F Introduction to marketing & ad"ertising and public relations> third
edition@ 'acmillan education ltd.
%otler ( and Armstrong&) >2555@ F principles of marketing >12
th
edition@. prentice Jall of
India.
%otler & (& >1:99@ F marketing management prentice hall international inc.
/ester &* D>1::3@ F writing research papers . a complete guide >8
th
edition@.<ew 0ork &
<0& Jarper Collins college.
Internet
www.mukwano.co.ug.
www.wikipedia.orgwikiad"ertising.
Sakaran & # >2555@ +esearch methods for business >first edition@
Eakratsas .i Ambler ). >1:::@ F sales performance management>3
rd
edition@ (rentice hall
international inc.
(ride & ? et all >1:9:@ F marketing concept and strategies >sixth edition @ .oston Joughon
miffin company.
36
APPENDICES
RESEARCH !UESTIONAIRE
Dear sir madam&
I am a student of 'akerere #ni"ersity carrying out a research on the effect of ad"ertising
on sales performance as part of the requirement for the fulfillment of the award of a
degree of .achelor of commerce of 'akerere #ni"ersity. I therefore humbly request you
to spare some of your time and fill in this questionnaire. (lease be assured that all
information you gi"e here will be strictly for academic purposes and will be treated with
great confidentiality.
!hank you for your time.
SECTION A
R,601-<,-2J6 *)7@8/1.-< :-?1/;)2:1-.
In each section& tick in the box or fill in your response in the space pro"ided as
appropriate.
1. Age of respondent.
Abo"e 75 6:I65 4:I45 3:I35 2:I25
2. )ender
'ale ?emale
37
3. /e"el of education
(JD 'asters
Degree
.achelor
Degree
Diploma A and -
le"el
(rimary
le"el
4. 'arital status
'arried Separated Di"orced ,idowed Single
6. Department

7. <umber of years worked with 'ukwano industry.

-"er 15 years 6I15 years 1I6 years /ess than a year
SECTION B:
FORMS OF ADVERTISING IN MUKWANO INDUSTRY
1. 'ukwano industry ad"ertises all its products.
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
2. !he organi=ation uses the following forms of ad"ertising.
?orms of
ad"ertising
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
!ele"ision
(osters
<ewspapers
'aga=ines
.ill boards
38
<ew letters
.rochures
Stickers
+adio
)i"ing pri=es with
company product
name
.usiness cards
3. Any other forms of ad"ertising used by the organi=ation.
?orms of ad"ertising Strongly
agree
Agree <ot
sure
Disagree Strongly
disagree
,orkshops
'obile ad"ertising
Sponsoring e"ent
4. Ad"erts of the 'ukwano industry meet the intended audience.
Strongly
agree
Agree <ot sure Disagree Strongly
agree
6. 'ukwano industry is allowed to ad"ertise freely.
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
7. 'edia used are accessible by the target market
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
SALES PERFORMANCE
1. !he le"el of sales in 'ukwano has been increasing.
Strongly Agree <ot sure Disagree Strongly
39
agree disagree
2. Increasing le"el of sales in 'ukwano is e"ery ones responsibility.
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
3. !he le"el of sales in 'ukwano is declining.
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
4. Increasing sales "olume in 'ukwano is a challenge to all employees.
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
SECTION C:
RELATIONSHIP BETWEEN ADVERTING AND SALES PERFORMANCE
1. Ad"ertising helps in increasing the number of customer in 'ukwano industry.
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
2. !he number of customers in the industry can be increased by sponsoring e"ents.
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
3. .uilding awareness about 'ukwano industry can increase the number of
customers.
3:
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
4. Ad"ertising shows different kinds of products a"ailable for customers.
Strongly
agree
Agree <ot sure Disagree Strongly
disagree
45