Advertising is one of the marketing strategies used to bring and increase awareness of a certain product being offered by a business to the customers with the main aim of creating interest among the public in the product. Once the public becomes aware of the product, they become interested and thereafter sought to buy the product. This is very crucial for the company for it goes a long way in increasing the sales of the business or the producer of the product (Hill & Jones, 2014). This research proposal will critically look at the significance and role of advertising in increasing the sales of a company and bringing about the eventual growth of a business in the field.
Advertising a product of a business entity helps in maintaining the loyalty of the customers to the brand being advertised because, consumption of most goods happens on the basis of a simple philosophy of out of site out of mind (Bloemer & De Ruyter, 1998). Advertising the product helps in reminding the customers of the product and indicating the value and significance compared to any other alternatives (Nasir, 2015) and therefore, the customers feel that their brand is still string and the best alternative hence sticking to it and this ensures the brand loyalty.
This research topic is significant especially in the current situation where many businesses start but are unable to grow to the expectations of the starters of the business due to low sales which lead to stagnation of the operations of the business organization. This research will enable many small scale business people and entities to find ways of achieving upward mobility and experiencing great profits due to growth of their businesses. This research study is very critical because it will act as an eye opener to many business people who are seeking to get to the business world but are afraid of failing and incurring losses. It is important to explore this area so as to make sure that the risk of total loss due to business failure is reduced hence leading to economic growth which is good for the development and advancement of any nation in the contemporary world.
The research aims and objectives
The aims and objectives of the research will be as follows:
- To explore the impact of advertising in increasing the sales from the advertised product
- To investigate the relationship between public awareness of the product and the amount of sales from a business product
- To investigate the relationship between the customer loyalty and growth of a business entity
- To identify the various marketing strategies that can raise the sales of a product and bring about growth of the business entity
- To indentify the best way of advertising so as to attract attention of the public towards a product.
- To evaluate the importance of advertising in creating awareness and brand loyalty
The above aims and objectives of the research will be achieved partly thorough sorting the answers to the following research questions:
- Does advertising increase the sales of the product being advertised?
- Do you think advertising will increase customer loyalty to the brand being advertised?
- What is the relationship between public awareness of a product and amount of sales a business gets from the product?
- Which advertisement method do you feel comfortable with?
- What is the connection between brand loyalty and the growth of the business entity producing the brand in question?
- Which advertisement strategy is likely to increase your chances of buying the advertised product?
- What is the probability that you will buy a product that you have never seen being advertised or being used by another person?
- What do you think brings about increased sales of a product sold by a business entity?
- How did you gain loyalty to the brand of product that you use daily?
- If you were a business person, how would you ensure that the loyalty of the customers is maintained?
By sorting the answers to the questions above, this research will be able to provide an insight to many business people on how to stimulate business growth through advertising their products. The business entities will therefore realize growth and expansion and help their owners to evade the risk of business failure which brings about serious losses.
Studies and observation of the marketing trends and growth of various businesses in the society clearly indicate that advertisement is a very important aspect of marketing that increases the sales from a product and loyalty of customers to the business products. People are likely to spend on a product that they have seen being advertised either in the market, the media or any other channel (Banks, Pelsmaker & Okazaki, 2015). The studies have shown that the probability of a customer buying a product that he or she has never seen being advertised is extremely low. This is due to the fact that customers are always cautious whenever they spend on a certain product and therefore they only spend their money on product that they have seen being advertised and therefore know and understand very well how they function and their significance. For this reason, advertised products are likely to be bought by many customers as compared to those products which have not being advertised.
Increase in sales is very crucial in ensuring the growth of any business because amount of sales determine the profit margins and this means that how many sales a business makes determines its well being. The more sales a business makes from the products it sales, the more profits it gets and hence the more likely it is for that business to grow and expand (Solomon, Duke & Nizan, 2009). Therefore it is very important for any business, especially those operating on small scale, to strive and make sure that their efforts are geared towards increasing the sales of the products being traded. Increasing the sales can be greatly achieved through advertising because it increases the scope of the market for the product of the business.
Many customers fail to buy certain products on simple account of not knowing them or not having heard about them. According to Assmus, Farley & Lehmann (1984), advertising is the only way that creates better awareness to the public of the product and hence creating interest among the public in the product. When this interest is created, the customers buy the product more often and the result of this is usually an increase in the sales which goes a long way in ensuring high profits for the business entity and hence presenting a good avenue for the expansion of the business. Every business owner starts his or her business with an aim of making profits. The profits are the only sure way that a business can use expand and make sure that it increases its scope in terms of products and operations. Therefore, advertising is very crucial since it just ensures the increase in sales thus bringing about profits for the business.
It is imperative for every business to advertise its products so as to win and maintain the trust of its customers in its products (Hill & Jones, 2014). Customer loyalty is very crucial in ensuring the growth of a business. When a business is assured of the buyers of its products, the risk of losing by incurring big losses is reduced. This therefore enables the business stakeholders to make heavy investments in the business and this enables the business to grow. However, it is crucial that advertisement strategies used by the company take to consideration the current trends in the market. This is crucial in making sure that the changes in the society are taken to consideration and the products of the business are not obsolete. When the customers are clearly aware of the business keeping abreast with the changes in the market where the customers are, they are more likely to stick to the products of that business and prefer them over the alternatives available in the market.
Apart from putting to consideration the market trends and the general changes in the society, the advertising strategies should also be appropriate to the particular market segment being targeted. This will help in making sure that the products are only advertised to the appropriate people in the market being targeted. This is very important in making sure the business remains within the framework of the law and regulations of the environment in which it operates. Working within the law and the provisions of the regulations of the land ensures that the values and beliefs of the customers being targeted are taken to consideration (Bowen & Chen, 2001) and this helps in maintaining the loyalty of the customers to the product. The maintained loyalty of the customers to the products ensures that the business continues getting regular outcomes in terms of sales which are very crucial in maintaining the profits of the business and hence providing a great opportunity for growth of the business and eventual expansion.
According to Nasir (2015), it is very critical in making sure that the products being sold by a business get going in the market. Advertising a product helps to sway other customers who might be using other products rather than those being sold by its competitors. When products are advertised, such customers get to know that there is actually an alternative to the product that they use in the market. The eventual effect is that the business will have more customers buying its products since the customers will definitely want to try out something new in the market. This will increase the sales and eventually enable the business to earn profits.
Finally, it is important to advertise because advertisement communicates the new changes and improvements (Baghestani, 1991) that have been done to the product and this helps to maintain the customers who would otherwise abandon the products if at all they are not well informed on the improvements that have been done and the changes that are being done to the product. Advertisement therefore ensures that the loyal customers are kept aware of the changes and this gives them confidence in the product and the business selling the product. This ensures that the profits remain high and therefore presenting a nice opportunity for business growth and expansion. Advertisement is therefore very important in increasing the sales and also maintaining the customer loyalty to the business products being traded.
Research Design and Methodology
This research can be classified as exploratory because it seeks to explore the role of advertisement of products in increasing the sales from the products and also in ensuring and maintaining the customer loyalty to the business products (Banks, Pelsmaker & Okazaki, 2015). The literature review has shown clearly that advertisement is very important to any business in determining the success and growth of a business through increasing sales and maintaining customer loyalty to the products of the business. The research will therefore dwell on exploring the relationship between advertisement and increment in sales and loyalty among the customers on the product being sold.
Data collection methods
In trying to achieve the objectives of the research study, I will employ the following methods of collecting data on my topic of study:
Questionnaires will be very important in my research study. I plan to use questionnaires in collecting information from the customers in various market places and also from various business owners especially those operating under small scale business. The questionnaires will be printed and circulated to the customers in...
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