Effects Of Advertising on Sales Volume, A Case Study of Zain Limited, Nairobi Kenya.

ABSTRACT The study was to establish the effects of advertising on sales volume it was guided by a number of objectives which were; to examine the features of a good advertisement. to determine factors affecting sales volume and to determine ways to improve sales. With telecommunication networks being so many, Zain limited had to explore the market and come up with advertisement better than those of the competitors to help them survive in the competitive market. The study focused on zain limited, Nairobi, Kenya to determine the advertisement that Zain can use because they were faced with the problem to increase on its sales volume due to Safaricom who are their top competitor. Data was collected on such information using interviewing, observation and questionnaire. Interviewing was done by the use of face-to-face conversation; the number of respondents who participated such as top management, employees of Zain and both customers of zain and safaricom was made up by stratified random technique which totaled to 25 people. The findings of the study shows that, there are a number of effects of advertising on sales, that is, consumers awareness, it gives favorable images which help in generating brand loyalty and help in new product launch. Also sales volume was affected by factors like; careful market segmentation, the perception of the product, brand in the mind of the customers and market situation like competition, price position among others. From the findings sales volume can be improved by; building customer and brand loyalty, by use of aggressive advertising, by stressing unique features of the product, by creating goodwill for the product, brand or company and by motivation of the customers. XI From the research findings there were the following recommendations, that there is need for Zain limited to use an effective advertisement that could attract more customers for example their advert should be in local language that is familiar to the consumer. Also consumers should be motivated and given a chance to give a suggestion on the advert they prefer, Market segmentation is also important whereby the marketing department should invest more in sport branding, the company should have good advert that is: creative and innovative. In addition, there should be customers loyalty-they should provide all the information that the customers need in there phone kits, this will give the company better public image, also brand loyalty-reduce the prices of there brands in order to make there services more customer friendly among others.

TABLE OF CONTENTS 

DECLARATION ........................................................................................................................ ii 

APPROVAL ............................................................................................................................ iii 

DEDICATION .......................................................................................................................... iv 

ACKNOWLEDGEMENT .......................................................................................................... v 

LIST OFT ABLES ....................................................................................................................... ix 

LIST OF FIGURES ..................................................................................................................... xi 

ABSTRACT ............................................................................................................................. xii 

CHAPTER ONE ....................................................................................................................... l 

l .0 Introduction ................................................................................................................. l 

1.1 Background of the study ............................................................................................ l 

l .2 Statement of the problem ......................................................................................... 3 

l .3 Purpose of the study ................................................................................................... 4 

1 .4 Research objectives ................................................................................................... 4 

1.5 Research questions ..................................................................................................... 5 

l .6 Scope of the study ..................................................................................................... 5 

1.7 Significance of the study ............................................................................................ 5 

l .8 Limitations of the study ............................................................................................... 6 

l .9 conceptual framework .............................................................................................. 6 

CHAPTER TWO ....................................................................................................................... 9 

LITERATURE REVIEW ........................................................................................................... 9 

2.0lntroduction .................................................................................................................. 9 

2.1 Concepts of advertising ............................................................................................. 9 

2.2. The types of advertisements ................................................................................... l 0 

2.2. l Print advertising ...................................................................................................... l 0 

2.2.2 Online advertising .................................................................................................. 12 

VI 

2.2.3 Media advertising .................................................................................................. 12 

2.2.4 Outdoor advertisements ....................................................................................... 14 

2.3. Features of a good advert ...................................................................................... 15 

2.3. l. Creative approaches to a good advert ............................................................ 15 

2.3.2. Steps involved in developing effective advertising message ........................... 16 

2.4. Criticisms of advertising ........................................................................................... 17 

2.5. Factors affecting sales volume ............................................................................... 18 

2.5. l Market segmentation ............................................................................................ 18 

2.5.2 Buyer behavior ....................................................................................................... 18 

2.5.3. Product personality and perceptions ................................................................. 19 

2.5.4 Situationa I factors .................................................................................................. 19 

2.6. Benefits of advertising on sales volume ................................................................. 19 

2.6. l Information ............................................................................................................. 19 

2.6.2 Brand Image building ............................................................................................ 20 

2.6.3 Innovation .............................................................................................................. 20 

2.6.4 New product launch ............................................................................................. 20 

2.6.5 Growth of media ................................................................................................... 20 

2.6.6. Benefit on economic performance .................................................................... 21 

2.6.7. For persuasion ....................................................................................................... 21 

2.6.8. Contribution to economic growth ...................................................................... 21 

2.6.9. Catalyst for change .............................................................................................. 22 

2.7. Ways to improve sales volume ............................................................................... 22 

2.8. Relationship between advertising and sales volume ........................................... 22 

CHAPTER THREE ................................................................................................................... 23 

METHODOLOGY .............................................................................................................. 23 

3.0 Introduction ............................................................................................................... 23 

3.1 Research design and location of the study ........................................................... 23 

3.2 Study Population ....................................................................................................... 23 

3.3Sample Design ........................................................................................................... 24 

3.4. Methods of Data collection .................................................................................... 24 

Vil 

3.4. l Questionnaires ....................................................................................................... 24 

3.4.2 Interviewing method ............................................................................................. 25 

3.4.3 Observation ............................................................................................................ 25 

3.5. Data analysis ............................................................................................................ 25 

3.6 Research limitation ................................................................................................... 26 

CHAPTER FOUR ................................................................................................................... 27 

PRESENTATION OF RESEARCH FINDINGS AND DATA ANALYSIS ....................................... 27 

4.0 Introduction ............................................................................................................... 27 

4.2 Meaning of advertising to respondent ................................................................. 32 

4.1 Factors that affect sales volume ............................................................................. 34 

4.2 Relationship between advertising and sales volume ............................................ 36 

CHAPTER FIVE ...................................................................................................................... 38 

SUMMMARY OF THE FINDINGS, RECOMMENDATIONS AND CONCLUSION .................... 38 

5.0lntroduction ................................................................................................................ 38 

5. l Summary of the findings ........................................................................................... 38 

5.2 conclusions ................................................................................................................ 39 

5.3 RECOMMENDATIONS ................................................................................................ 39 

5.3.1 Areas of future research ........................................................................................ 41 

APPENDIX 1 ......................................................................................................................... 44 

QUESTIONNAIRE .................................................................................................................. 44