University of Nigeria Research Publications

OGBU, Bonaventure D.

Aut

hor

PG/MBA/04/38458

Title

Effect of Advertising on Consumer Preferences in Pharmaceutical Industry: A Case Study of Emzor Pharmaceutical

Industries Limited

Facu

lty

Business Administration

D

epar

tmen

t

Marketing

Dat

e

June, 2006

Sign

atur

e

CERTIFICATION

This is certify that the research project titled: Effect of .-

Advertising On Consumer Preferences " A Case study of Emzor

Pharmaceutical Industries Limited in Lagos State", was . . . .

o"conddcted by Ogbu, B0naventure.D of the Department of

- Marketing under my supervision, as a partial fulfillment of the

requirements for the award of Masters of Business

Administration (MBA) in Marketing.

NNABUKO, J.0 (PhD)

..............................

DATE

...... L . I . . . . . . . . . . . . . . . . . . . . . . . .

DATE

(HEAD OF DEPARMENT)

DEDICATION

This project is dedicated to Almighty GOD, the father of our

Lord and Savior, JESUS CHRIST, Pa OGBU (my father) May

his gentle soul continue to rest in the bosom of God the

Almighty.

My profound gratitude goes to Prof. I.E. Nwosu, supervisor for

his constructive , meticulous and articulate supervision of my

manuscript. My appreciation also goes to. Dr &Mrs Nwaizugbo

and family for their support during the entire program. May

GOD continue to reward your good deeds to me and to

humanity.

Special thanks to my elder Brother, Group Captain Ogbu, 1.C

for his financial and moral support not only to the success of

this program but to his contribution to what I am today. To my

sweet mother, Mrs Elizabeth Ogbu, my Sisters, Cousins,

. . . Nephews, w. Niec,es, friends for their prayers and encouragement.

. . God bless you all.

I also acknowledge. the various sources from where I got

materials and information used for this work, especially staff

of Emzor Pharmaceutical Industries Limited. b

Also thanks to staff of Faculty of Business

~dministrat ion, University of Lagos, for giving me assess to the

Faculty Library. I

Above all, glory be to God almighty for his guidance,

protection, provisions and knowledge bestowed on me.

ABSTRACT

Advertising is seen as a non-personal, one-way

communication exercise directed to specified markets or

buyers and therefore a vital catalyst in the production,

distribution and consumption process. The job of advertising

is principally to communicate to a defined audience,

, . information and a frame of mind that stimulate action. . m *

r l

This study was structured to critically examine the effect of -.

advertising in persuading consumers to adopt a new or an

existing product or for a repeat purchase, with special focus

on brands of Emzor Pharmaceutical industries Ltd.

The primary and secondary sources were utilized to gather

data used in the study. While the questionnaire and

structured interviews were the research instruments used to

gather the primary data from a randomly selected sample of a

defined population. Descriptive statistics was used to present

the data collected in the tables while inferential statistical

tools like z-test were used to evaluate relationship of the

variables from the available data to draw conclusive

inferences.

The findings from the study indicate that a large number of

the respondents see advertising as a factor for deciding on the

type of product/service to chose from when confronted with

many brands/services. Majority of the respondents agree that . 4

. advertising influences their buying decision. The respondents

also see advertising as a good medium to rely on for

information about old and new products.

Further findings revealed that advertisement should be

executed long enough to generate such curiosity that will

motivate consumers to buy the product.

For effective coverage, the researcher recommends that

- advertisement be carried out more on Radio and T.V, since a

. greater percentage of consumers have access to them more

often. The study strongly recommends - that more academic

research work should be carried on some factors such as

Price, Taste, Product availability and the influence of reference

groups. This is with a view to understanding their relative

degree of effects on consumer behavior.

vii

. n ' 0

. 0 ' TABLE OF CONTENTS

- Title Page

Certification Page

Dedication

Acknowledgement

Abstract

Table of Contents

List of Tables

CHAPTER ONE INTRODUCTION

1.0 Introduction

1.1 Background of Study

1.2 Statement of Research Problems

1.3 Objectives of the Study

1.4 Research Hypothesis

1.5 Significance of the Study

1.6 'Definitions of Terms

1.7 Brief History of Emzor Pharmaceutical . n . . .

C\

Industries ~lrnited

iv

vi

viii

xii

1.8 Scope and Limitations of the Study

CHAPTER TWO LITERATURE REVIEW

2.0 Evolution of Advertising

2.1 Advertising Overview

2.2 Advertising Defined

2.3 Objectives of Advertising

2.4 Nature of Advertising

2.5 Structure of Advertising

2.6 Advertising and Its Role in Marketing

2.7 Advertising Process

2.8 Measuring Advertising Effectiveness

2.9 Critics of Advertising

'. . 2.10 Hierarchical Models of Advertising Effect n

. . 2.1 1 Consumer Behavior/ Preference

2.12 Consumer Buying Decision Process

2.13 peterminants of Consumer Behavior

CHAPTER THREE RESEARCH METHODOLOGY

3.1 Sources of Research Data

3.2 Sample Size Determination

3.3 The Research Instrument

3.3.1 Interview

3.3.2 Questionnaire

3.3.3 Validation of Research Instrument (Pre-testing)

3.3.4 Questionnaire Distribution and Interview conduct

3.4 Response Rate

' 8

. ' 3,?5 ~e thod 'of Data Analysis

CHAPTER FOUR DATA PRESENTATION AND ANALYSIS

4.0 Data Presentation 72

4.1 Questionnaire Data 72

4.2 Data Analysis 88

4.3 Interview Data Presentation

4.4 Testing of Research Hypothesis

CHAPTER FIVE SUMMARY OF FINDINGS,

DISCUSSIONS, CONCLUSIONS AND

RECOMMENDATIONS

Introduction

Summary . . , of Research Findings *

Discussions

Conclusions .

Recommendations

Suggestions for Further Study

LIST OF TABLES

Table 3.l:~istribution ,of questionnaire response rate 70 . .

Table 4.1.2: Distribution of respondents by location 73

Table 4.1.3: Distribution of respondents by age 73

Table 4.1.4: Distribution of respondents by sex 74

Table 4.1.5: Distribution of respondents by marital status 74

Table 4.1.6: Distribution of respondents by highest

Academic qualification 75

Table 4.1.7: Distribution of respondent's awareness about listed emzor .

brands 77

Table 4.1.8: Distribution of respondents based on brand usage 78

Table 4.1.9: Distribution of respondents based on reason for use of

brands 80

Table 4.1.10: Respondent distribution based on the source and

medium from which the respondents became aware of the brand 81

Table 4.1.1 1: Word of mouth recommendation of brands 82

Table 4.1.12:Reason for preferred brands 82

Table 4.1.13: Distribution of respondent based on if advertisement

persuades them to buy Emzor brands of products 84

Table 4.1.14: opinion of respondents on whether advertisement is

. 0 deceptive . . . 84

4 . 0

Table 4.1.15:Is advertisement run everyday continuous? 85 . .

. . Table 4.1.16: continuous advertisement persuades you to try emzor

(brands) product 86

Table 4.1.17: continuous advertisement is a waste of resources 87

Table 4.1.18:continuous advertising encourages brand loyalty 88

Table 4.1.19: ~ i s t r ibu t ion interviewee by position held 91

Table 4.1.20:Distribution of interviewees by whether the organization .

is of international or local origin 92

Table 4.1.21: Distribution of interviewees by the no of key managers

with key marketing qualification in the organization. 93

siii

CHAPTER ONE

INTRODUCTION

1.1 .. BACKGROUND OF THE STUDY:

The word "advertising" is derived from the latin word

advertere, which. means to turn (the mind) to. Broadly

speaking, advertising is said to be anything that turns

attention of the public to an article, idea, product, concept,

commodity, or service

Advertising as a business force is not a new tool, although it

has seen its greatest development during the past 60 years,

men have used some form of advertising. Early in history,

advertising were cut in stone and placed in strategic locations

so the people could see them. Advertising has been closely

related to the long trend of rising standards of living in the

United states. For products enjoying expansible markets, it

has br'ought about the economics of large-scale manufacture

and of mass marketing. Thus it has been a factor in helping

increase production and to decrease unit costs.

Advertising has become such a persuasive and intrusive socio-

economic force in Nigeria, as in other countries, that neither

manufacturers nor consumers can ignore it, Shobanjo (1997).

A s a communication medium, advertising invades our streets,

offices, village squares and homes, pu'shing in messages about

various products, ideas, services, persons (dead or alive) and

institutions through various media outlets Ozoh(1998). It

does this so intensively and persistently that it is only our

natural abilities to selectively expose ourselves to and

selectively perceive and recall information that saves u s from

the thraldon of what communication experts have described

as "information overload" (Nwosu 1990). In a more limited

sense, however, advertising is usually considered as any form ' 0 4

' C1 of paid public announcement intended to aid directly or .*

indirectly in the sale of a product, commodity or service. It

can also be described as salesmanship without a personal

salesman.

The role of advertising as a marketing promotion activity,

therefore is to implement product flow though the appropriate

channels, to act as catalyst in acquainting the customers with

the means by which wants may be satisfied and ultimately to b

induce customer action which will benefit the source of the

communication process .

Advertising, as the communication of sales message to

the target markets should be consumer oriented. Hence we

say that 'fthe customer is the King" in a marketing sense, but . 0

n

in an advertising sense, "the consumer is a demi-god" Kotler . .

(1997). According to Baker (1996), in advertising there are

various steps that should be taken in implementing a

particular campaign. A s in every aspect of advertising, the

context or nature of the problem dictates the strategy for the

solution. Pride and Ferrell (1987), further stated that a

company's advert plan must not necessarily follow a strict or

straight jacket procedure with other companies.

The common elements however, in all advertising plans

include:

Situation analysis

Marketing goals

Media recommendations

Sales promotion recommendations

Budget

Post-mortem Evaluation

Advertising that is directed to marketing must employ a

planning approach, best characterized by a strategy. However,

advertising is a tough and frequently thankless business. It is

. - , * the pet whipping boy when a client's products are not shifting

' 0

off the shelves as fast as he would like them to. It also gets - -

dropped first when the client cuts his budget. It is hard for

the "logical" mind to understand and appreciates advertising

because, at best, it seems to be a mysterious, immeasurable

activity doubtful value. (Inyang-Oku (1997). It is in the light

of the above that this study intends to critically examine the

usefulness of advertising in persuading consumers to adopt a

new existing product and or encouraging customers for

repeat purchase.

1.2 STATEMENT OF RESEARCH PROBLEMS

The increasing globalization of world trade and product

marketability, coupled with Nigeria's continuous liberalization

of trade (abeit, uncoordinated) and the struggle for increase in

market share among companies with same products, aroused

the curiosity or need to review advertising as a strategy to

capture as much market and customers as possible while b

ensuring the satisfaction of the needs of customers.

Pharmaceutical industries are not left out in the competition

- " for increased market share. Hence, advertising has become a ' n

tool as it will help determine how consumers behave or respond

to their products in terms of increase or decrease in buying

potentials of consumers.

It is therefore pertinent to study the effect of advertising on

consumer preferences, using Emzor Pharmaceutical Industries

Nigeria Ltd as a case study.

. . The over 20 years involvement of Emzor Pharmaceutical

Industries ltd -in Nigeria as a profit making organization involved

in manufacture and marketing of quality pharmaceutical

products, and its resultant resolve to use consumer-oriented

marketing concepts to deliver quality and affordable

pharmaceutical products to the larger society, requires

evaluation.

Consequently, this study would attempt to evaluate the impact of

some of these advertising activities on consumers that constitute

the farget audience of the programs.

If marketing involves applying advertising concepts to consumer

causes, it is expected that marketing professionals will be

will be substantially involved, if not on the lead of these

marketing programs in the Pharmaceutical Industry to attain

the desired success.

. . This therefore becomes one of the research problems of this

study to ascertain the level of involvement of marketing

professionals in the management of Emzor Pharmaceutical

products, with regard to marketing of its brands of products.

1.3 OBJECTIVES OF STUDY

The use of advertising as a promotional tool in marketing

pharmaceutical products in Nigeria over the years have made

it imperative to evaluate advertising as a promotional tool.

Consequently, this research Intends .to achieve the following

objectives:

- To determine if any, the relationship, between

*advertising and consumer buying behavior.

- To measure the effectiveness of advertising on consumer

buying behavior

- To determine the extent advertising persuades

consumers to buy Emzor brands of products.

--

- To find out whether marketing practitioners in the

organization possesses the requisite skills or

. a . qualifications to market the organization's brands of n

. ' products.

- To determine possible ways to improve on the use of

advertising to create awareness, persuade consumers to

purchase and satisfy their needs and to minimize waste.

- To evaluate the effect of continuous advertising on the

organization's budget and consumers preferences or

buying behavior.

1.4 RESEARCH HYPOTHESIS

In an attempt to research on the .effect of advertising on

consumer preferencelbuying behavior and the involvement of

marketing professionals and advertising practitioners in the

formulation and execution of advertising policies and

programs, a number of speculative assumptions have been

developed from the research problems. b

Meanwhile, hypothesis are tentative statements or

assumptions put forward for the purpose of helping and

guiding the researcher in arriving at a reasonable conclusion.

8

Hypothesis, are stated as null hypothesis and alternate

hypothesis. The null hypothesis are stated in negative

assertions while the alternate hypothesis are stated in positive

assertions. After testing the hypothesis, we either accept the

null hypothesis, and reject the alternate hypothesis or vice-

versa.

However, the hypothesis for this study, are stated as . .

follows:

Ho: Advertising does not persuade consumers to

purchase Emzor pharmaceutical brands of products.

H 1 : Advertising persuades consumers to purchase

Emzor ,pharmaceutical brands of products

Ho: Continuous advertising is not a waste of resources.

H 1: Continuous advertising is a waste of resources.

1.5 SIGNIFICANCE OF THE STUDY

It is to clarify relationship between inputs into the buying

situation, stimuli arising from the mixed motivation, which

affects purchase decision and the resultant outcome. This

study would however, show that buying behavior needs to be

continuously reviewed and updated if they are to be useful in

planning marketing strategies. Markets are dynamic

phenomena and changes in market response should be

expected. For example, there is a constant change in

competitive factors, products and consumers taste. Over the

past decade, new habits of consumption have spread through

'. . n SO-ciety &d altered very significantly the demand for some ' (?

. . products and services. So, marketers should develop

sensitivity to changes affecting the consumption of the

products they offer.

This research however, would be significant to some sectors of

the economy as follows:

Academia: This study is important as it assembles widely

collated literatures on effects of advertising as a reference

materials for future knowledge and reference purposes.

Marketing professionals/ advert department of

organizations: It is my firm belief that this study would

challenge marketing professionals or advert department of

organizations especially pharmaceutical industries to be

innovative and adopt new advertising strategies, particularly

on different brands of their products and their target markets.

Advertising practitioners: This study would provide the

advertising practitioners the opportunity to know when and

where to apply each advertising strategy and when there' will

be need to modify, improve upon and adjust such advertising

strategies. . 4 9

' 0 The findings of this study are expected to contribute to

marketing practitioners and most importantly aid marketing

managers in planning and formulating marketing policies and

strategies.

The study will further throw light into the real situation of the

premise on which advertising policies, strategies are based

vis-a-vis pharmaceutical products.

The Pharmaceutical Industry: This study no doubt would

help the industry to know or determine the advertising cost

and allocation to various brands and the overall effect on sales

volume.

However, the underlying potentials of advertising will be

exploited especially in a free-market system like ours where it b

is used to create an awareness of products or services and

providing consumers with information for decision-making.

, ' . I . .z E c ~ n o r n y ; ~ . Advertising makes consumers aware of products n

and services and provides them information for decision-

making.. Advertising's economic role goes beyond this basic

function. However, it is a powerful force that can affect the

functioning of our entire economic system.

The study would proffer recommendations that would improve

the socio-economic life of consumers in a nation, especially as

it concerns the purchase and consumption of pharmaceutical

products in our country, particularly, Emzor pharmaceutical

products.

However, advertising aims at encouraging consumption and

fosters economic growth. It further facilitates entry into

markets, leads to economies of scale in production, marketing

and distribution.

1.6 DEFINITION OF TERMS

Advertising: Phillip Kotler (1 997) defines advertising as any

paid form of non-personal presentation and promotion of

ideas, goals, or services by an identified sponsor. b

Continuous Advertising: I s defined for this study to imply a . . -. ' . 5

n situation where the advertisement for a particular product is

repeated without any modification over several months or

. . , years.

Advertiser: This is the person or organization who

advertisement is run on the media.

Advertising Practitioner: The APCON defines it as "one who

is skilled in planning, creating and placing advertisements"

Advertisement: The advert practitioners council of Nigeria

(APCON) defines it as "a communication in the media paid for

by an identifiable sponsor and directed at a target audience

with the aim of imparting information about a product service,

idea or cause.

Advertising Agency: This is a business firm that is staffed

with people who are advert practitioners, and who exist to

primarily render and does indeed render advertising services.

Media: There are channels through which advertisements are

transmitted to their intended audience. It includes all the

media of mass communication such as magazines,

newspaper, cinema, television, radio, outdoors etc, as well as b

many other types of media.

Message: This refers to the number of exposures one . rg

n advertisement generates and how long it remains with the

audience.

Communication: In this study, communication is process by

which a verbal or non-verbal effort is made by a source to

send a message through a channel to establish a

"commonness") with a receiver.

Target Audience: The groups of individual that the

advertiser wishes to reach with his advertisement .

Media Vehicle: This refers to specific medium that can serve

as a carrier of the advertising message.

Advertising Copy: This refers to all the elements in an

advertising message, either printed or broadcast.

1.7 BRIEF HISTORY OF EMZOR PHARMACEUTICAL

INDUSTRIES LTD.

Emzor pharmaceutical Industries Limited, a subsidiary of

Emzor Chemists Limited, is a wholly private, indigenous b

pharmaceutical manufacturing company, incorporated in

. n Nigeria, . in;1984 for the purpose of manufacturing high quality

pharmaceutical products and medical consumables. Its . .

holding company, Emzor Chemists Limited opened for retail

business in January 1977 at number one Fola Agoro Street,

Abule Ijesha, Yaba, Lagos. The rapid growth of the retail

business encouraged Emzor Chemists Limited to venture into

the importation and wholesale of assorted pharmaceuticals.

The idea to manufacture locally came later and this was

predicted on the need to develop local capability, create jobs

and provide high quality pharmaceutical products and

services to the Nigerian people at prices that are not only

affordable but represent value. The company started pilot

production in 1985 and in 1988 it has become an established

pharmaceutical manufacturing company especially with the

:'. o i n t r o d u ~ t i k of "Emzor paracetamol" into the Nigerian market.

_. However, Emzor pharma rose from a humble beginning of

four (4)products lines in 1987 to a range of over fifty (50)

products in the analgesic, anti-malaria,

vitamin/haematinics/multivitamin supplement, anti-

helmintic, antibiotics and therapeutic class. b

Manufacturing Facilities

The factory is located on 2.5 acres of land in the Isolo

Industrial area of Lagos with Modern facilities to make a wide

,variety of high quality pharmaceutical products that meet

international standards at affordable and competitive prices.

It has invested heavily in comprehensive and cutting-edge

facilities for research and development unit.

Emzor pharma is a success because of its people. The

management style is participatory and team leaders are people

with vast experience and comprehensive education.

The Manufacturing team:

The team consists mainly of the production unit, the quality

assurance unit, the Engineerng unit and the

materials/logistics unit. Personnel for the team are a cream

. G of . highly skilled and motivated professionals with a n

cumulative working experience of over 150 years achieved

working 'in different companies both within and outside the

Nigerian pharmaceutical industry.

The products

Emzor pharma markets a wide range of over-the-counter

medicine and generic products. A s the leading indigenous b

manufacturer in Nigeria, the company continues to expand

the Emzor pharma portfolio through identifying consumer

need for innovative products. The current Emzor pharma

products from pharmacologic groups include:

- Analgesics (pain, ache, and fever relievers)

- Vitamins

- Anti-Malaria

- Heamatinics (dietary supplements)

- Anti-Tussives (cough suppressants and expectorant)

- Anti-Bacterials

- Anti-Helminthics (worm treatments)

A s a company that is committed to maintaining the

excellent quality of products, the company has a standardized

system of handling complaint and recall procedures for

products. It conforms to international quality standards.

Self-inspection teams and a fully equipped laboratory are just

' . . a a.few of the methods to ensuring quality. All ingredients - :\

. . water, raw and packaging materials and finished products -

are subjected to comprehensive analysis.

The Sales and Marketing Team b

The team comprises both the sales and marketing functions of

the company, who are drawn from the pharmaceutical

industry and basic biological sciences with proven track

records. The team are also highly skilled, talented and

motivated professionals with several years of working

experience within the industry and who are constantly seeking

to break into new markets and take the organization to new

frontiers.

. . . . 5 The sales, force consists among others, more than 40 highly

' h

trained medical/sales representatives, who detail the -.

products to doctors, nurses, pharmacists and other health

care providers. While the marketing unit, comprises

pharmacists and market research executives.

The Research and Development Team

Personnel are drawn from various fields including pharmacy,

chemistry (pure and applied), biochemistry microbiology, etc.

and members have graduate and post-graduate qualifications.

The team is made up of highly skilled and motivated scientists

who have acquired years of experience with various

pharmaceutical companies within and outside Nigeria, the

scientists are in constant touch with the latest information b

and emerging global trends in pharmaceutical research and

development.

The ~ u m a n Resource Team and Training Policy

The human resource team hires, trains, and maintains the

motivation of the workforce. The objective is to give work a

meaning and assist every employee in becoming the best

he/she is capable of being. To this end, sound company

policies and - . a *

I$

company and

welfare packages to ensure actualization of

individual aspirations are developed.

In addition to qualification obtained both at graduate and

post-graduate levels from internationally renowned

institutions of higher learning, team members have at various

times attended technical and management training programs

within and outside Nigeria.

Technical trainings have been obtained at such organizations

as Manesty Machines Limited, UK, Horn + Noack ROMACO

Pharmatechnik GMBH, IMA Industria Machine Automatiche

spa etc. Training on International analytical validation was

organized by AMSCO/APDF, UK. Various reputable training

institutions including the Lagos Business school have

participated in training the management team.

The Finance and Audit Team

The finance team, comprising qualified and experienced

accountants, has the important task of managing the

company's financial resources which include ensuring that

. a proper records of transactions are kept and that funds are

* I#

available for the smooth running of the organization. . .

The Internal Audit team is made up of qualified and skilled

auditors who ensure compliance with management policies

and statutory regulations in order to reduce unintentional

mistakes, irregularities and the possibility of fraud.

Community Relations Activities

Emzor believes in empowering individuals and groups to

achieve all they can and to strive for excellence in all their

endeavours. Hence, it recognizes the importance of

community relations knowing fully well that without the

community's favourable disposition towards them, their

existence will be threatened.

Consequently, the company undertakes various forms of b

social responsibilities, which include:

- Participating actively in the humanitarian activities of

Rotary International at various districts. - -

Her

involvement has led to various awards to the company

and staff. Some of these awards include the outstanding

service award by District 9 110 of Nigeria.

- Associating with health even in therapeutic segments

that she does not compete directly.

Hence, it is not surprising that the Asthma Relief

Campaign Project (ASMARCAP) recognized Emzor

pharmaceutical industries as "the first corporate sponsor" of

Action Against Asthma in Nigeria even though the company

has no anti-asthma products. "

- Associating with various other groups and activities.

Examples include the Nigeria police force Bi-ennial police

Games, Igbo National Council.

Emzor continues to support the activities of the differently

able community. This has led to various awards by the

handicapped Award Association of Nigeria.

A s part of the activities marking the 1 5 t h anniversary of Emzor

paracetamol, it distributed 20 first aid kits to selected primary

. . and secondary schools in Lagos State. It also launched a

science .essay competition in primary and secondary schools

sponsored, by Zolat - a new de-worming agent by Emzor.

In appreciation of the support and loyalty of our staff and

distributors, the management of Emzor pharma approved 15

scholarship awards to motherless babies and children of staff

and distributors.

Distribution:

The distribution system on ground ensures the widest

possible penetration into the nation's markets. Emzor

pharma is honored to be partners with leading retailers,

marketing and distribution networks, and manufacturers.

However, their distributors are over 50 registered pharmacies

spread all over the regions of Nigeria. Emzor pharma is

constantly seeking new partnerships in marketing,

distribution and joint ventures.

1.8. SCOPE AND LIMITATIONS OF STUDY

Advertising is a vast area of academic concern. While a

number of scholars criticize advertising as being wasteful,

other schools of thought see it as an essential instrum.ent of . 0

' F)

communicating' with the market place. In the face of the b

contending controversy about the use fullness of advertising,

it is safer to focus on certain aspects of the discipline.

This study is therefore confined to Lagos state, with focus on

Emzor pharmaceutical industry.

The major limitations of this study may come from the fact

that only one company in the pharmaceutical industry is

being studied. The study has limitations that include

- Limited literature materials, especially local materials.

- Limitations in samples chosen

- Limited time frame for the study hence no detailed

assessment.

- . Financial implication of extensive study also limited . .

the study.

- Limited information volunteered by respondents.

REFERENCES

Advertising practitioners council of Nigeria (APCON) ( 1997).

Baker, M.J . ( 1996), Marketing: An Introductory text 6ed. London: Macmillan Press Ltd.

Dirksen. C. Kroeger and Nicosia (1977), Advertising Principles, Problems and cases 5ed. U.S.A: IRWIN INC

Emzor Pharmaceutical Industries Annual Report (2005)

\>F "l'l PU Emzor Pharma. Website: www.emzorpharma.com K*~,p

3-4' , .,oQ *

Kotler, P (1997), Marketing Management: Analysis, Planning, Implementation and Control, New Jersey: Prentice Hall, Inc.

Nwosu .I. E. (1997), Eflective Media writing, Mass Media, Advertising, PR, Promotins, Enugu: Precision printers and publishers.

. , Cr

fa

Osuagwu, Eniola ( 1998), Marketing Management: Principle, . . Strategies and Cases, 2ed.

Lagos: Malthhouse Press Ltd.

Pride and Ferrell ( 1987), Marketing: Basic Concepts and Decision, 5ed. Boston: Honghton Mifflin Company.

Schultz, Martin and Brown(1988), Strategic Advertising Campaigns, Williams Brown: Lincolnwood, ILL; NTC.

CHAPTER TWO

LITERATURE REVIEW

2.0 EVOLUTION OF ADVERTISING

The evolution of advertising has remained a controversial

issue among authors and scholars. Advertising can be traced

to those curious inscriptions carved on the bricks by the

Babylonians almost 5000 years before Christ.

Others refer to the origin as to the Egyptian Institutional

campaigns set forth in hieroglyphics. According to Jones,

(1955:22) "Advertising was a profession of criers" in its earliest

practice. She maintained that, "In Babylon for example, criers

stood in merchants doorways, like carnival barkers, calling . d

W

out their employers wares, competing with each other for . .

patronage. However, they were a little ingenuous for they sang

their messages".

The Romans in its earliest practiced advertising and its dates

from the middle ages with the adoption of surnames indicative

of a man's occupation, as opposed to some distinguishing

designation (Harrison Harry's son). The producer's name is of

equal importance today as a means of identifying the source of

. I

goods and services. Signs represented the next stage in the

evolution of advertising, acting as a visual expression of the

tradesman's function as well as a means of locating the source

of goods at a time when the numbering of houses was

unknown. One can still see vestiges of the practices in the

barker's pole or the symbolic book or glove.

As an early form of Institutional advertising, trade marks were

adopted as a means of identifying the producer and as a

guarantee of quality. Though, the adoption of corporate

symbols as a more immediate means of recognizing the firm's

identity than the written word, is an interesting reversion to

this practice.

There was the introduction of periodicals in the early 1700's

such as the "Tatler and Spectator", which later became more

popular as a means of advertisement. However, this was

abruptly curtailed when tax was introduced by the British

Government, in 1712 though later abolished in 1853 because

of its adverse effects. This was done at a time ripe for the b

. b

dekl&p&eht of mass advertising as we know it today. Mass

. . production was a reality, and channels of distribution were

being developed to cope with the physical movement of goods,

creating a need for mass communication to inform consumers

of the choice available to them. This need was recognized by

space salesmen, known today as advertising agency. Their

duty was to locate customers for the media owners, for paid

commission for such services.

Gradually their position changed, they now became space

brokers or middlemen who bought space from the media

owners and resold at a profit of 25%, the profit margin

attracted competitors, which made agencies to develop new

'. . . strategies'such as offering free assistance in preparing this ' 0

_ . copy and later, as the number of publications increased the

media which would prove most effective in reaching the

advertiser's potential customers, were normally selected. This

is still obtainable even today.

2.1. ADVERTISING OVERVIEW

The role of advertising in the marketability of a product has

always created a lot of concern to most marketing experts in b

their various organizations. While it seems difficult to define

advertising conceptionally, it could ,when handled properly

enhance potential buyers' responses to the organizational

offerings by providing information that tries to channelize

desires and by supplying reasons for preferring the particular

offering.

Advertising is a form of selling, which urges consumers to buy

goods or services, or to accept a point of view. The word

advertising comes from the French word avertir, which means

to notify. Advertising messages are carried to large audiences

by news papers, magazines, television, radio, and other means

. a of mass c,ommunication C)

2.2. ADVERTING DEFINED

Advertising has ,been defined by various scholars in various

ways thus:

Advertising, according to the American Marketing Association

(1960) and Kotler (1970)) is any paid form of non personal

presentation and promotion of ideas, goods, or services by an

identified sponsor.

Advertising practitioners' council of Nigeria (APCON) defines it

as "a form of communication through media about products, b

services, or ideas, paid for by identified sponsor.

Winton Fletcher (1979) defines it as "the dissemination of

sales message through purchased time and space",

The authors of contemporary advertising (Bovee and Aren

(1986) defines it as the "non-personal communication of

information usually paid for and usually persuasive in nature

' ' e . . about products, services or ideas by an identified sponsor ' H

. . through the various media".

Chris I.' Ogbechie (1997) defines advertising as the act of

conveying the most persuasive product or service message at

the right time, in the right place, to the right person, at the

lowest cost. It's aim is to foster favorable attitudes to a

product or service by presenting the advantages defined by the

product positioning consumer benefits.

Ferrell et al (1991) defines advertising as a paid form of non-

personal communication that is transmitted through mass

media such as television radio, newspapers, magazines, direct

mail, public transport - vehicles, and outdoor displays.

In the view of Achumba and Osuagwu (1994), advertising is

one of the elements of marketing promotional mix, that is

essential in brand building, product differentiation, clear b

positioning and premium quality. Advertising seeks to make

people/consumers aware of things they need and to make

them want these things. It announces new products or

services and describes new uses and improved features. . . ' - a Bordefi a11d Marshal1 (1959) defined advertising as "Consisting ' R

. . of those activities by which visual or oral messages are

addressed to selected publics for the purpose of informing and

influencing them to buy products or services, or to act or to be

inclined to act favorably towards idea, persons, trade marks or

institutions featured". A s contrasted with publicity and other

forms of propaganda, advertisement messages are identified

with the advertiser either by signature or oral statement.

Aluko (1999) defined advertising as selling without a .

personal salesman.

Encyclopaedia Britannica (1943 -73) defines advertising as "a

form of paid public announcement intended to promote the

sales of a commodity or service or to bring about some other

effect desired by advertisers. It is essentially a form of

communication through such diverse media as hand bills,

Newspaper-magazines etc. b

According to International Encyclopedia of the social sciences,

advertising is "means of making known in order to sell goods

and services or presenting the most persuasive possible

. . 0 .selling .message. Advertising is to the right prospect,

1 n

persuasive and informative communication directed at actual

or potential buyers with a view to generating sales. In their

own view, Douglas J. (1981) defines advertising as consisting

of all the activities involved in presenting to a group of non-

personal, oral or visual, openly sponsored message regarding

a product, service or idea.

Nwokoye (1978) defines advertising as "any form of non-

personal communication through the mass media that is paid

for by an identifiable sponsor in a particular business entity".

The British Institute of Marketing and the Cam Foundation

defines advertising as use of paid- for space in a publication

for instance, airtime on television, radio or cinema, usually as

a means of persuading people to take a particular course of

action or to reach a point of view.

. Longman Dictionary of contemporary English defines

advertising as the business which concerns itself with making

known to the public what is for sale and encourage them to

buy especially by means of picture in magazines, notices in

. d

n . newspaper and messages on television.

However, varied as the definition of advertising might be, its

role in marketing and consumer preference is without

. 4 , que*stioning. The role of advertising as a marketing promotion

. - activity, therefore, is to implement product or service flow

through the appropriate channels to act as catalyst in

acquainting the customer with the means by which wants

may be satisfied and ultimately induce customer or client

action which will benefit the source of the communication

process.

2.3. OBJECTIVES OF ADVERTISING

Laridge and Steiner (1961) Separates the objectives of

advertising into three main functions:

Cognitive, affective and co native

Before an advertising programme or campaign can be

developed, advertising objectives must be set. These

objectives will flow from earlier decision making about the

marketing mix and target market. Advertising cognitive

function provides information and facts for the purpose of b

making consumers aware and knowledgeable about the

sponsored brand.

The affective function of advertising crates liking and

preference for the sponsored brand. It is therefore to

persuade. Finally, advertising co-native function is to

a stimulate desire and cause consumers to buy the sponsored

* ' n

brand. . .

Other possible objectives of advertising includes:

Exposure - The advertiser often sets a certain number of

exposures per period to the target audience. An exposure

means that a target member of the audience should be

exposed to the medium carrying the advertisement, in terms

of its reach and frequency.

Awareness - This involves knowing the information presented

in the message and knowing the sponsors' brand name.

Consumers are considered aware of a sponsor's brand if they

recall the brand name.

Similarly, they are aware of the advertised message if they can

report any of it. Therefore, message recall should be greater.

Attitudes - The advertiser specifies a certain level of favorable b

attitude which the advertising is to achieve to the target

audience. - -

The ultimate purpose underlying all advertising is increased

awareness. However, many authors would also associate this

\ with some form of statement concerning an increase in profit,

' 8 4

h . . but this will be anticipating an end result applicable only to

trading organizations, which is also attributable to a host of

other factors.

However, Mathews, Buzzell, Levitt and Frank (1964) in

Marketing : An Introductory Analysis Enumerated the

objectives of advertising as including the following:

1. To build primary demand

2. To introduce a price deal

3. To inform about a product's availability

4. To build brand recognition or brand preference

5. To inform about a new product's availability or features

or price.

6 . To help salesmen by building an awareness of a product

among retailers

7 . To create a reputation for service, reliability or research

strength.

8. To increase market share

9. To modify existing product appeals and buying motives

10. To increase frequency of use of a product

11. To inform about new uses of a product

12. To increase the number or quality of retail outlets

13. To build the overall company image

14. To effect immediate buying action

. r\ " 15. To i-each new areas or new segments of population

within existing areas.

16. To develop overseas/ foreign markets.

The above list is by no means exhaustive, but it does indicate

that the aim underlying a campaign may be directed a t a

short-term increase in sales volume (price deals and other

promotional offers), the development of a new market, or the

building of a favorable attitudes to the company as a whole

(corporate advertising). The latter, like an increase in retail

distribution, is a long-term objective for which it would be

difficult to assess the actual return on the advertising

investment.

2.6. NATURE OF ADVERTISING

According to Okigbo (1997) Advertising is so much a part of

our lives that it is usually taking for granted. It is an

inevitable compliment to modern mass media, even when

taken for granted. From a marketing perspective, advertising

is not the routine production and placement marketing

communication messages.

Advertising that is directed to marketing must employ a

planning approach, best characterized by a strategy.

Marketing is not trial and error but requires the adoption of

planned rational process. According to Shultz Matin and

. . - . e Brown (1988:3), the marketing process really involves the

O

investigation and revaluation of a number of different area of

the business and market place that an organization must

consider in order to develop and move products or services

most efficiently and profitability from their plants to the

ultimate consumer.

2.5. STRUCTURE OF ADVERTISING

According to the advertising practitioners' council of Nigeria

(APCON) four groups make up the advertising industry.

Advertisers, advertising agencies, media and collateral

services. The advertiser who is the owner of the product is b

involved in all the activities of marketing, looking for buyers,

merchandising or the act of fitting the goods to market

requirements, propaganda to dispose buyers favorably to the

products or services.

The advertising agency is usually concerned with helping to

search out for buyers, merchandising, and using propaganda

to dispose buyers favorably to the products or services.

Media are used as outlets to display advertisements to . . . 0 . consumers:

Collateral services on the other hand, are limited risks

rendered by specialized agencies offering services in any of the

foregoing areas: Soliciting for buyers, merchandising and

media services.

2.6. ADVERTISING AND ITS ROLE IN MARKETING

According to Ozoh (1998) marketing function recognizes the

strategic value of advertising as an element of promotional mix

which most firms use in selling their goods and services, and

which of course is the bridge between the advertiser and the

target audience.

Moreso, Onunkwo (1997), observed that advertising, as an b

element in marketing involves advertising strategy and

operation of advertisement, planning media schedules, and

monitoring and controlling expenditure in line with the

budget.

Also, Okigbo (1997) added that the relationship between

advertising and marketing is simultaneously obvious and

nebulous. If by advertising we mean "the announcement

through appropriate media that certain goods and services are

not only available, but are the best in meeting the needs of

our target marketing" then it is obvious that advertising must ' .. - . 4

" be a hand maiden of marketing, especially when we are

dealing with a mass market.

Baker (1996) pointed out that advertising is but one variable

in the marketing mix, albeit an important one, and is difficult

to separate its contribution from that of other mix elements.

2.7. ADVERTISING PROCESS

Stidson (1970), believes that advertising has a positive effect

on the consumer buying behavior, in which the different can

be noticed certain extent. Based on this, researchers are

not persuaded to study the process in which advertising travel b

to achieve such impact.

~ccording to Sandage and Fryburger (1967) most of the

published models of the process by which advertising works

are based on simple mechanical principles, whereby the

advertiser sends to a target audience messages which

persuade them to react in the manner he intends them to

respond. However, not all consumers react in the same

manner because of various reason which include; inattention,

selective perception, misinterpretation, forgetting, or just plain

fickleness.

. .. Thayer (1968) criticized the simple mechanical principle or

stimulus response model as being conceptually and

empirically inadequate, stating that advertising is not -. . . * .

R sohethiig someone does to someone else. That, the

. . individual is an autonomous entity who communicates from

and to the world around him by attributing meaning and

importance to selected data of that world. This part of life

overlooked, because it is concealed behind

people's overlapping expectations and in part because

mechanical model of the advertising process have prevented

researchers from "seeing" this process order than in cause L

and effect terms.

Moreso in order to appreciate the cause and effect of the

model on advertising process, perhaps it is pertinent to

differentiate between the data (sounds, copy, and graphics)

and the information people derive from these data. Secondly,

the difference between advertiser intention and consumer

intention. Thirdly, Robinson and Stidsen (1967) added that

that the complex array of needs, emotions, values, and

knowledge underlying human choice behavior is not

transferable or communicable as such.

Stidsen (1970) further added that the other model was the

traditional model of advertising process which recognized the

distinction between the meta-communicative and

communicative characteristics of advertising. ' .I . 4

R

Meta-communicative here refers to people's feelings, beliefs, -.

and knowledge about the usefulness, believability and

function of advertising while Communicative characteristics

refers to people's feelings, beliefs, and knowledge about the

usefulness, and validity of some specific advertisements.

This model according to De Fleur (1966) sees advertising as

what people do with advertising and not what advertising does b

with people.

However, the short-coming of this model is that, it neglects

the indispensable role played by consumers in bridging the

gap between message and action.

2.8. MEASURING ADVERTISING EFFECTIVENESS

Robinson et al (1968) noted that sales is not the only criterion

used in measuring the effects of advertising. Communication

effect should equally be used as a yard stick which includes +

changes in consumers' product awareness, attitudes,

preferences, and loyalties.

However, sales and communication effect take into account

only selected residuals of the advertising process, but neither

measures the effectiveness of the process. Quite contrary to

the spirit of the marketing concept, advertising effectiveness is

still measured only in terms of

benefit.

More so, according to Mazur (1968

the advertiser's cost and

advertising can be said to

be effective depending on the extent it is mutually

advantageous to advertisers and consumers. In other words,

a measure of the effectiveness of the advertising process

should include some assessment of the cost and benefits from

the point of view of both consumer and advertisers.

Achumba (1994) stated that advertising effectiveness

concerns whether the intended benefits are achieved. The

effectiveness of an advertising programme can be evaluated in

terms of ability to cause clients or consumers to indicate a

more favorable attitude towards a particular brands as

compared to other brands.

Starch (1939) commented on over 50 yrs on the role of

advertising. He said "for an advertisement to be successful, It

must be seen, must be read, must be believed, must be

remembered, and must be acted upon".

On the other hand, Colley (1967) viewed the need for

. d

adveitising' as helping to move the consumer "through one or

. - more levels in the spectrum" leading to the final act of

purchase.

Evaluation of advertising effectiveness is important for two

reasons.

Firstly, advertising represents expenditure money. While

overall advertising expense are small part of the total budget b

in some companies.

Secondly, management want to know how successful

advertising is in selling a brand of product. In addition,

research will show if trial of the products has been induced or

switching from other brands has also been induced.

Ineffective advertising obviously cannot contribute to the goal

of profit.

Achumba (1994) further proposed that two general

approaches might be used to try to evaluate the effectiveness

of advertising.

i. Subjective evaluation which involves the opinion of

senior executives or experts on the effectiveness of a

particular advertising program

. . 11. Objective evaluation which involves developing facts

about the effectiveness of a particular advertising

- - program through research.

Also, Advertising effectiveness can be measured in the short-

run which form the basis for long-term measurement. . . . a . .

. . ~ow&er , the effectiveness of any

. . be judged by it's ability to move

awareness to actual purchase. b

2.9. CRITICS OF ADVERTISING

advertising program should

customers from the step of

Despite the tremendous contribution of advertising to

marketing, some economists such as Bach (1966), (Richard

Caves 1964) still criticize advertising as being economically

wasteful. Other criticisms put forward by economist include:

- That advertising fosters monopoly

- That advertising is materialistic, creates dissatisfaction

and false need.

- That advertising is poor in taste

*. . . * - , That it is too emotional, misleading and fraudulent. (4

- -- . . That it distorts consumer choice

- That advertising encourages consumption of goods which

may be harmful to the consumer.

However, other schools of thought opposed the critics of

advertising.

Adeniran (1992) pointed out that the critics who see

advertising to be a waste forgets that advertising is a form of

investment, whereby the amount on advertising provides

employment indirectly through multiplier - effect mechanism

through increasing the demand for consumption of goods with

resultant increase in employment in such organizations. He

further stated that advertising contributes to economic growth

by complimenting the efforts to create new and improve

products through expenditure for research and development.

In fact, "advertising by acquainting the consumer with the

values of the products, widens the marketing for these

products, pushes forward consumer's acceptance, and

encourages the investment and entrepreneurship, necessary

for innovation". In other words, "advertising holds out the

promise of a greater and speedier return than would occur

without such methods, thus stimulating investments, growth

and diversity". Tesler(1960) holds the same view. In addition,

Adeniran (1992) noted that schools of thought that see

advertising as persuasive, not informative, are not right.

According to him, effective advertising is persuasive, it

influences people to buy products. Hence, it informs

consumers, and thereby justifies the product's economic

existence. He went further to criticize the view that

advertising creates monopoly. According to him, the fact that . . ,

new products are advertised more intensively than the

established ones, point to the fact that advertising is used

equally to secure an in-road to the market of the established b

products, even as the established products try to hold on or

im~rove on their market share through advertising.

On the issue of advertising being wasteful, Backman (1968)

criticized the view by stating that in a free economy, there is a

wide diversity of opinion as to what combination of goods and

services should be made available for consumption.

Obviously, taste and scale of preference differ, thus, there will

be disagreement on what constitutes the ideal components of '. . r0 . ' *

a desirable level of living. . .

- According to him, one might be mislead occasionally by

popular fads, advertising or even advice of our friends but

decisions in the final analysis are made by the buyers and not

by the advertisers.

On the issue of advertising being a poor taste, Adeniran who

quoted Segie (1949) pointed out that "The naked women's

body, like a national trade-mark has become the symbol of

American commerce: naked, semi-naked, undressing and

dressing women fill not only the films but the pages of

magazines, advertising foods, clothing, automobiles, hotels,

refrigerators, chewing gums, and everything which in the 6

opinion of the businessman would represent the vital interest

of the people".

However, the conclusion arrived at is that deception and lack

of morality are no property of advertising practice.

On the issue of misleading and fraudulent activities of

4 advertising,' Adeniran, commented that one accepts that

. . sometimes misleading advertisements appear in the media,

but just like other societal ills and criminality, there are

enough laws to carc of offcnclcr, TTcnccl, no cnll for n 1x111 on

advertising.

For the critics who see advertising as encouraging the

consumption of harmful goods, Adeniran noted that allegation

to it may be true but the fact still remains that cocaine, opium

and heroine that are not advertised remains to be a great

concern to the society.

Perhaps, if advertisers have been encouraged to advertise

such goods subjected to government regulating, the ills in

taking such drugs would have been better comprehended.

Finally, another absurd comments against advertising is that

it generates excessive profit for the advertiser. b

All investors desire profit and can employ advertising if it will

help or further their legal course. Moreover, higher profit

encourages expansion or diversification.

Furthermore, marginal costs will be reduced which means

that goods will be cheaper. This benefits the consumer

. ' . as ultimately. ;That is not all, it will further help enhance

economic growth by increasing employment opportunities.

2.10. HIERARCHICAL MODELS OF ADVERTISING

EFFECT

Model

Starch, 1923:

Strong, 1925:

Sandage and

Fryburger, 193 5:

Lavidgex Steiner,

Colley, 196 1:

Mc Guir, 1969:

Delozier, 1976:

Peston & Thorston

Source: Baker, ( 1

Ed.

Characteristics

To be effective, and advertisement must be

seen - read - believed - remembered - acted

upon

AIDA

Attention - Interest - desire = action

Interaction model:

Exposure - perception - integration - action

Hierarchy of Effect:

Awareness - knowledge - liking -preference

- conviction - purchase

(DAGMAR)

Unawareness - awareness - comprehension

- Conviction - action

Information processing model: presentation

- attention - comprehension - yielding -

retention - behavior

Psychological Response to Advertising:

attention - perception - retention -

conviction - action

Expanded Association Model:

Exposure - awareness - perception -

evaluation - stimulation - search - trial -

adoption I I

)96) Marketing: An Introductory text, 6th

2.11. CONSUMER BEHAVIOR/ PREFERENCE

A consumer is an individual or households who buys or

acquires goods and services for ultimate consumption. This

definition excludes those individuals that acquire goods and

services for any other use than consumption. Consumer

behavior therefore, involves a metal decision process as well

as physical activity.

However, consumer behavior can be defined as the way people

act in the exchange process. "The acts of individuals directly

involved in obtaining and using economic goods and services

including the decision processes that precede and determine

those acts". This (Osuagwu 1999) includes, the behaviors

that consumers display, in searching for, purchasing, using

and evaluating products, services and idea, which they expect,

-. .. ' . . Q will satisfy $heir needs. ' 0

Achumba (1996) defined consumer behavior as "the activities . *

of people engaged, in actual or potential use of market items

whether products, services, information or ideas", He further b

noted that without consumers, there will be no marketing

process. Furthermore, Engel et al (1995) defined consumer

behavior as "those acts of individuals who make decisions to

spend their available resources (money, time, effort) on

consumption - related items. It includes the study of WHAT

consumers buy, WHY they buy it, HOW they buy it, WHEN

they buy it, WHERE they buy it, and HOW often they buy it.

According to Baker (1992) there are four models in answering

the question of consumer behavior.

These models are:

(a) The Marshallian Model (Stressing economic motivation) . a

' f l

(b) The Pavlovian Model (Stressing Learning)

(c) The Freudian Model (Stressing social psychoanalytic

motivation)

(d) The verblenian model (stressing social psychological

factors).

These models represent various ideas of human and

consumer behavior. Depending on the product or services,

different factors and behavior may be of particular relevance

in a given situation.

2.12. Consumer buying decision Process b

In buying a product or service, the consumer is said to go

through a decision process consisting of problem recognition,

information search, evaluation of alternatives, purchase

5 1

decision and post purchase behavior. The marketer must

understand, the buyer's behavior at each stage and what

influences are operating on the consumer. This understanding

allows the marketer to develop a significant and effective

marketingladvertising program for the target market. The

consumer buying decision process is concerned with the series of

. . ' . a

sequential steps which a buyer takes before a purchase is made, +

' 0

-.

2.12.1. . Possible Influence on the Decision process

Person-Specific Influence: Demographic, situation

learning, attitudes, personality

Social influence: Role and family, Reference groups, social classes cultural sub-culture

I I Consumer buying decision process

. Source: Pride Ferrell, ( 1987) Marketing: Basic concepts and Decision

Post purchase eradication P

Problem recognition

-

Information search +

4

Evaluation Purchase of alternatives P

+

1. Problem Recognition: According to Kotler (1997) the

. 0

buyink p;ockss starts when the buyer recognizes a problem or

need. The buyer than senses a difference between his or her

actual state and ddsired state. The need can be triggered by

internal or external stimuli. Internal stimuli refers to natural

needs like - hunger, thirst and sex need. Whilst external are

not natural since they are aroused by external factors like

advertising, political, cultural economic etc.

2.12.2. Nature of problem - Reorganization process

Problem Reorganization P Information from Lifestyle

Source: Achumba et al, (1994) Marketing:

Fundamental and practice U. S .A. A 1 marks Educational

Research Inc.

2. Information search. Search is a motivated exposure to

information with regard to a given alternative. It results when

' .. existing infsrmation, beliefs and attitudes are found to be . a *

n inadequate.

. . .- -. . i0

2.12.3. A model of the search process

. . , Exposure 1 4-1 r b

( Problem Recognition 1

Marketer dominated sources of information

Acceptance

1 Retention I+

Memory Search Internal I

Source: Achumba, etal, (1994) Marketing:

Fundamentals and practice, U.S.A

Marks Educational Research Inc.

The above diagram shows that the individual searches

memory first before turning to outside sources. If this is not

. . . . sufficient,, then external search begins and the individual . sl

. . ' *

consults either market dominated sources (ads, sales man, . .

etc) or any relevant input. This is then processed through the

memory and ultimately will affect the attitude, belief and

buying behavior of the consumer.

3. Evaluation of Alternatives: Pride & Ferrel (1987)

mentioned that to evaluate the products in the evoked set, a

consumer establishes a set of criteria against which to

compare the products' characteristics. These criteria are

characteristics or features that are desired (or not desired) by

the buyer.

4. Purchase: At this stage, the consumer will decide on the

brand to purchase based on the evaluation that has been

undertaken, however, there are two factors that affect the

consumer decision before making the final purchase, this will

be shown in the diagram below:

2.12.4. Steps, between Evaluation of Alternative and a . a

a pki?hase decision.

Attitude of

Others I I

Purchase design

Evaluation j

situation 1 '-1 factors

Purchase of ---4 Intention

1 Alternatives

Unanticipated

Source: Philip Kotler, (1997) Marketing Management:

Analysis, Planning, Implementation and control, New Jersey

(Prentice Hall International).

5. Post-purchase evaluation: After the final purchase, the

consumer might evaluate his/her purchase which might lead

to a cognitive dissonance, which refers to a dissatisfaction as

a result of wrong choice.

2.13. Determinants of consumer Behavior

Hansen (1976) stated that five major psychological factors;

motivation, perception, learning, belief and attitude influence

a person's buying decision and choices. The belief of the

buyer is mostly attached to the culture and religion of the

individual and society. Consumer behaviour being a human . . . . . 4 ' .

activity can be measured thus:

Where:

CB = Consumer behavior

P = Consumer's personal influence

E = Pressure exerted on the consumer by outside

forces in the Environment

Studies over the years have shown that the basic

determinants of consumer behavior are:

(a) Needs and motives

(b) Perceptions

(c) Attitude

(d) Learning

' *. (e) Culture

' . 4 . . *

n

2.13.1. Needs and Motives

According to Maslow (1943) there are five sequential stages of

human needs, which are psychological needs, safety needs,

social needs, esteem needs, and self- actualization needs.

Human needs could also be related to the desire to know and

understand issues around them (Maslow, 1954).

These needs were derived from two primary assumptions:

i. People are wanting -beings and their needs depend on

what they already have. A satisfied need is less a motivator

and less important than unsatisfied needs. Only those needs

that are unsatisfied are influencers of the behavior. b . .

11. Individuals' needs are arranged according to their

hierarchy or order of importance, once one need is satisfied,

another one emerges.

Chrisnall (1975) stated that the theory of needs contains

elements of sound common sense, which make it particularly

of interest to marketers. The marketer must be in a position

to know what satisfaction the consumer will derive from the

product or service being offered. It should also be necessary

. . . . . * . a

to understand the level at which the consumer has been n

satisfied on the lower needs and by what product or brand.

- . 2.13.2, Perception:

This is the way a consumer processes incoming stimuli, their

interpretation and transformations into meaningful pictures

upon which decisions are taken.

Consumers perceive things around them through touch, sight

hear, taste and smell.

2.13.3. Attitude -Attitudes are those psychological

characteristics that affect consumers' perception of incoming

stimuli. Attitude is defined as a person's enduring favorable

or adverse evaluations, emotional feeling or tendency towards

some object or idea. Attitude is learnt and it is formed over a

period of time through experiences, and contacts, and is

highly resistant to change.

5 8

. , .. 8 rZ

d

It is in the interest of the organization, to identify the nature . .

and strength of different attitudes and their relative

importance to sales.

2.13.4. Learning

Learning is the relationship between knowledge and

experience. Accumulated experiences on subsequent behavior

may be based on the use of a product or the marketing efforts

of the marketer.

Chrisnall (1975) further stated that customers buy the same

product or service again because of experience (learning) with

the earlier purchase, which had been satisfactory.

2.13.5. Culture

Culture is defined as the way of life of a group of people. It

includes knowledge, art, beliefs, norms morals, values, laws,

customs and habits. It is learned from the society and

environment in which the individual (consumer ) finds

him/herself. Culture does not only affect how a person

behaves but also how he expects others to behave. b

. . . a Howard. apd Sheth (1969) observed that culture affects ' R

motives, brand comprehension, attitude and intention to

purchase.

Culture factors most often exert the broadest and deepest

influence on consumer behavior. A s people grow up in a

particular society, they imbibe the societal basic beliefs,

values and norms. They absorb almost unconsciously, a

world-view that defines their relationship to them selves and

to others. Core culture values have high persistence and each

culture consists of sub-cultures and social classes.

Culture is the most fundamental determinants of a person's

wants and behavior. Whereas lower creatures are largely

governed by instincts, human behaviors are learnt.

A consumer's behavior is also influenced by social factors

such as the consumer's reference groups, family and social

roles and status. A buyer's decisions are also affected by

personal outward characteristics such as the buyer's age, sex,

life cycle stage, education, occupation, economic

circumstance, lifestyle and personality and self-concept.

REFERENCES

Achumba, (1996), The Dynamics of consumer Behavior. Lagos: Mc Williams Publishers Limited.

Advertising Practitioners Council of Nigeria (APCON) 1997

Alexander R.1, ( 1960) Marketing Definitions. Chicago American Marketing Association.

Bach G.L. (1966) Economics 5ed. Englewood Cliff, New Jersey: Prentice Hall Inc.

Backman. J. ( 196 1 ) Advertising a n d Competition. New York: New York University Press

Bain J.S. (1959) Industrial Organization. New York: Wiley & , ' *I - . d . ,

n Sons.

Baker M.J. (1996) Marketing: An Introductory text 6ed. London: Macmilliarn Press Ltd.

Boovc and Arens ( 1986) Contemporary Advertising: U.S.A Irwin Inc.

Bettman and Jones (1972) "Formal Models of Consumer Behaviour : A Conceptional Overview" Journal of Business, vol. 45.

De Fleur M.L ( l966), Theories of Mass Communication. New York: David Mckay co Inc.

Engle , (1995). Consumer Behaviour. New York: Holt Rinebart and Winston.

Ferrel and Pride( 199 1 ),Marketing:Concept&Strategies,London: Honghton Mifflin.

Pride & Ferrel (19871 Marketing, Basic Concepts& Decision ed, Boston:Honghton Mifflin Coy.

, ' .. . . * . . " Robinson P.J. (1968), Advertising Measurement and decision

- - ma king, Boston Mass: Allyn and Bacon Inc.

Sandage & Fryburger V. (1967), Advertising theory &practice, Homewood: Richard D. Irwin Inc.

Schultz, Martin and Brown ( l988), Strategic Advertising Companies, William Brown, Lincelnwood: NTC.

Telser L.G (1960), "How much does it pay whom to advertise'? American Economic Review, papers and Proceedings.

Winton Fletcher (lg'i'g), Advertising, London: Hodder & stoughton.

CHAPTER THREE

. . This chapter is primarily concerned with the method and

approach in which relevant data to this study were

obtained.

3.1 SOURCES OF RESEARCH DATA.

Based on the nature of the research hypothesis and objectives,

primary and secondary information/ data gathering

techniques would be in use.

Primary Data refers to datalinformation directly gathered by

the researcher to support the secondary data and verify the

research hypothesis and thus recommend possible solutions to

the research questions.

In this study, the primary data would be through scientific

research methods of sample survey and researcher's

observations. Nwosu, (2000: p. 103) states that survey is

regarded as very effective and reliable method of generating h

quantitative data on people's attitude, opinion and behavior.

Structured interview and Questionnaire would be in use as

sample survey test instruments, to a selected sample of the

study population.

Secondary data refers to data/information which are already

generated and collected by other individuals or groups, usually

in the form of books, periodicals and reports, used by the

researcher as reference materials.

In this research study, the se(:ondary data would be sourced

from Textbooks, Periodicals, Reports and Lecture notes. These

- a a t4 would be sourced from researcher's own books, libraries,

. . Internet websites and organization's resource centers. These

would be the basis of the Literature Review.

3.2 SAMPLE SIZE DETERMINATION

Population refers to the set of units of observation in a

statistical study (Ewurum, 2003: p.5), he also identifies sample

as the portion of the population for study or observation. In

this research study, two sets of population would be utilized.

The first population comprises of a pharmaceutical company

in Lagos state (Emzor Pharmaceutical Industries Plc).

The second population refers to the general public within

Lagos in Lagos state.

A stratified probability sampling method would be used to

determine the sample size of the population for study.

In the first population, each organization would be divided . . ' . a into three 'broad groups based on staff position, i.e. senior

management level, middle and lower management level. Two

persons would be' selected from senior management level and

one person each from the middle and lower management level

by random sample for the interview.

In the second population, the representative part of the

population of 200 people, were drawn from the population

consuming pharmaceutical products in Lagos state. In the

sampling procedure, Lagos was divided into four zones

considering their population characteristics. The four zones

and their distribution are as follows:

University of Lagos ... . . . . . . . . . . . . .50

Mushin.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50

Victoria Island.. . . . . . . . . . . . . . . . . . . .50

Satellite and Festac town.. . . . .50

The choice of University of Lagos was to portray the behavior

of students towards advertising. It was believed that a lot of

influence exists on the decision of students in a choice

situation. Moreover, most of them still depend on their

parents and guardians for income.

Victoria Island was chosen to reflect the effect of advertising

on consumers of high income class taste while Mushin

represents a densely populated area where people with low

income live. Within the masses are some illiterates, they have

different value system but buy from the same market with

literate consumers. The idea was to find out how they react to

advertisements. Satellite and Festac towns where chosen to

cover the different categories of people that live there, because

these areas habour different mix or income class of people.

The idea was to find out how they also react to advertisement. b

3.3 THE RESEARCH INSTRUMENT

. . Questionnaire and Interview shall be used as test instruments . j _ . ) *

' 6

to the selected sample populations, in the researcher's

attempt to evaluate the effect of advertising on consumer

preference (using Emzor Pharmaceutical Industry as a case

study).

3.3.1 Interview.....Interview would be used to obtain

information and facts required for better understanding of the

research problems and verification/ testing of the research

hypothesis. The selected sample of the first population

comprising Emzor Pharmaceutical Industries staff numbering

fifteen shall be interviewed. A pre-determined list of questions

designed to elicit information from the interviewee would be

used in conducting the scheduled interviews. The interview

question scheduled is attached as an appendix.

3.3.2 Questionnaire.. . .A 22 item questionnaire made up of b

three sections would be distributed to respondents

from the study sample, to obtain information

. 4 , .coxkerning the research topic and specifically their ' f4

opinion and view of the effect of advertising on

consumer preferences in pharmaceutical industries in

Lagos State (using Emzor Pharmaceutical Industry as

a case study). Section A contains demography related

questions about respondents, section B contains

consumers brand awareness and usage, section C

contains advertising effectiveness. Others will include

questionnaire on Staff Bio-data, and Staff

advertisement activities.

The questions, ranges from open-ended, close-ended to

multiple choice type questions.

3.3.3 Validation of Research Instrument (Pre-Testing)

To ensure the reliability and validity of the test instruments

(Questionnaire and Interview Question list), the initial drafts

' .. . * would be pre-tested and modified thereafter before n

. . administering the study sample of the population.

3.3.4 Questionnaire Distribution and Interview conduct

The questionnaires were distributed to respondent in the

determined sample areas and collated by marketing

canvassers working with the researcher.

The researcher conducted interviews with the randomly

selected interviewees based on appointments secured for the

interview. The organization fo: .;tudy was taken in one day,

though appointments were rescheduled severally. The

interview lasted for an average period of 40 minutes over all.

3.4 Response Rate

A total of five interviews :irere scheduled and the five

interviews were held. This represents a 3.00 percent response

rate.

. (* . ~owevgr, in questionnaire administration, 200 questionnaires

were administered, 50 in each of the areas. In University of

Lagos area, 48 were returned, mushin area returned 40,

Victoria Island returned 45 while Satellite and Festac towns b

returned 50 of the questionnaires.

70

Table 3.1 Distribution of Questionnaire Response Rate

Number Area of Distribution

Distributed

I Mushin 1 50 1 40

Number

Returned

University of Lagos

Victoria Island 50 45

.. . . . \ T O T . . @ . , i 2 0 0 b 9

. . TOTAL

Source: Field Survey, 2006

50

Percentage

Of return

48

In Total, 9 1.5 percent response rate was achieved.

3.5 Method of Data Analysis

The data generated from the sample survey would be

presented and analyzed using simple descriptive and

inferential statistical tools like tables, percentages and

frequencies. b

The descriptive statistics would be used to summarize the

collated data/result from the survey and present in tables for

easy and proper understanding.

_ . Inferential statistical tool like 2-table would be used to estimate

the characteristics of the study population based on the sample

results.

REFERENCES

Ewurum, (2003), Lecture note, , Analytical

Techniques in Business.

Nwosu, I, E. (2000), Effective Media Writing, Mass

Media.

Advertising, PR, Promotions.

Enugu: Precision Printers &

Publishers.

Olakunori, O.K, (2000), Success_fiLE Research: Theory & b

Practice, . n 4

6 9 . Enugu: Computer Edge Publishers.

CHAPTER FOUR

' *. . a DATA PR=ENTATION AND ANALYSIS ' t+

. . 4.0 DATA PRESENTATION

The results and data from the field survey have been edited,

coded and categorized in relevant order of questions of the

study and the research hypothesis.

The questionnaire data have been presented in tabular forms

below for easy understanding of relationships between

variabl'es being studied, while the interview findings are also

presented and analyzed.

4.1 QUESTIONNAIRE DATA

Section one of the questionnaire was designed to elicit the

demographic profile of the respondents.

These include questions that bother on location, age, sex,

academic qualification and marital status. The responses are

shown in the tables below: &

Table 4.1.2: Distribution of Respondents by Location

Source: Field survey, 2006

TOTAL

Table 4.1.2 above shows that 48 (26.2%) of the respondents are

Percentage (%)

26.2

2 1.9

24.6

27.3

Respondents ' '

University of Lagos

Mushin

Victoria Island

Satellite and Festac town

located in the University of Lagos, 40 (21.9%) are located in

Frequency

48

40

45

50

183

Mushin area of Lagos, 45 (24.6%) are located in Victoria Island

100

of Lagos while 50 (27.3%) are drawn from Satellite and Festac

town of Lagos.

Table 4.1.3: Distribution of Respondents by Age

Respondents (years)

Below 20

31- 40

4 1. and above

Total

Frequency

40

Percentage (%)

2 1.9

. s) 4

FI Source: field survey, 2006

53

30

183

28.9

16.4

100

Table 4.1.3 above shows that 40 (2 1.9%) of the respondents are

below 20 years, 60 (32.80/0) are in the age bracket of 21-30, 53

(28.9%) are between the ages 31-40 while 30 (16.4%) are 41

years and above.

Table 4.1.4: Distribution of Respondents by Sex

Respondents (Sex) / Frequency I Percentage (%) 1 I Males I 88 I 48 I Females 95 52 Total 183 100 Source: Field survey, 2006

From table 4.1.4 above, 88 (48%) of the respondents are

Males, while 95 (52%) of the respondents are females.

Table 4.1.5: Distribution of Respondents by Marital status

I Respondents I Frequencies I Percentage (%) I

I Single . 1 75 1 41

1 Widowed, , . 7 3.8 . , .

Married

Divorced

. . Source: Field survey, 2006

90

11

"

Table 4.1.5 shows that 75 (41%) of the respondents are single,

49.2

6

90 '(49.2%) are married, 1 1 (6%) are divorced while 7 (3.8%) of

TOTAL

the respondents are widowed.

183 100

Table 4.1.6: Distribution of Respondents by Highest Academic Qualification.

Respondents Possessing I Frequency 1 Percentage (O/O)

L

Primary Certificate &Below -

Secondary School Certificate

-

First Degree Certificate

I I I

Source: Field survey, 2006

0

23

Masters Degree & Above

From the analysis of the above tables, the following conclusions

about the respondent's demographic profile can be tentatively

made thus:

12.6

75

They were located at either, University of Lagos,

41

85

Mushin, ,Victoria Island or Satellite and Festac towns

46.4

in Lagos metropolis in Lagos State.

41 percent (75) of the respondents were married, 49.2

percent (90) were single, 6 percent (11) are divorced,

while 3.8 percent (7) of the respondents are widowed.

The table also showed that 2 1.9 percent

(40) of the respondents are in the age range of below

20 years, while 48 percent (88) were male and 52

percent (95) were female.

(c) 46.4 percent (85) of the respondents have masters

degree and above, 41 percent (75) of the respondents

have first degree certificates, 12.6 percent (23) have

secondary school certificates while none of the

, Respondents, have primary school certificate or

below.

This demography of the respondents shows the tendency that

the respondents are mature and literate hence are capable of

discerning the contents of the questionnaire and have the

ability to give unbiased opinions and views in response to the

posed questions.

Section two of the questionnaire attempts to elicit the opinion

of the respondents on brand awareness and usage, section

tlhee deals on advertising effectiveness of Emzor

Pharmaceutical brands.

I I

The response pattern to the various questions, are presented

below:

Table 4.1.7: Distribution of respondents awareness about

listed Emzor Brands:

Brand name

Emzor . p,aracetamol

Em-B-Plex .

Emgyl

Em-Vit C

Emzoquine

Sulphadimidine

Promethazine

Emzoron

Emcillin

Emtrim

Emzolyn

Ferrous Gluconate

Diazepam

Indomethazine

Frequency of response

183

50

110

130

5

0

0

120

120

55

100

0

0

0

Percentage (%)

Table 4.7, shows the level of awareness of the respondents as

to what brands of Emzor pharma Itd, are within their

knowledge. It further shows that all the 183 (100%) ' .. . 4 .

n respondents 'were aware that Emzor pracetarnol is the brand

product of Emzor pharma, Ltd. The other awareness level are

as indicated on the table above.

The analysis also reveals that all brand products without

the company prefix - Em- were not known by the consumers

to be the company's brands.

Table 4.1.8: Distribution of respondents based on Brand

Usage.

3rand name

Emzor paracetamol

Em-B-Plex

Emgyl

Em-Vit C

Emzoquine

Sulphadimidine

Emzoron

Emqillin

Emtrim

Emzqlyn x '

Ferrous Gluconate

Frequency of response Percentage

(W

- - I Indomethazine 10 l o I 1 I

Source: Field survey, 2006

Table 4.8 shows the level of usage of the various brands

of Emzor Phama, Ltd. It shows that of all the 138 (100%

respondents, 175(95.6%) use Emzor paracetamol. Also 170

(92.9%) use Em-Vit - C. Others are Emzoron 60 (32.89'0)~

Emgyl 15 (8.2%), Emzogine 5 (10%) Em-B-plex 15 (8.2%),

Emcillin 65 (35.5%), Emtrim 58 (3 1.7%) Emzolyn 100 (54.6%),

Ferrous Gluconate 5(2.7%), while sulphadimine,

promethazine, Diazepam and Indomethazine respectively did

not record any usage by the respondents. It does appear that

the awareness of the brand and usage has to do with the

brand names being identifiable with Emzor pharmaceutical

industry Ltd.

80

Table 4.1.9: Distribution of respondents based on Reason

for use of brands.

Reason for usage

On prescription

When advertised

/ symptom manifest

L

Source: Field survey,

Frequency of response Percentage (%)

.~

This table indicates the reasons why the respondents use

their choice brands. The table further show that in 13 (7.1%)

instances the respondents use the brands as a matter of

routine, in 100 (54.6%) instances, the brands were used on

prescripti& while another 70 (38.3%) instances the brands

were used when advertised symptoms manifest. The outcome

implies' that more of the consumers use the brands on

prescriptions and when symptoms manifest as a result of

advertisement. The company therefore, should concentrate its b

marketing activities on retailing and advertisements.

Table 4.1.10: Respondents distribution based on the source and medium from which the respondents became aware of the brand.

I J Source: Field survey, 2006

Percentage 1 Medium/ source

Radio

Newspaper/magazines

Bill board

Other

Table 4.10 shows that 110 (60%) of the respondents

Frequency of

became aware of the brands they use through television while

183

50

40

-

4 183 ,(100Y0) became aware through radio. The table further 0

shows that 50 (27%) respondents also became aware of the . .

brands they use through news papers/magazines and 40

100

27

2 1.9

-

(21.9%) were aware through billboards. Therefore, television

and radio were the most effective media for brand awareness to

the consumers. b

Table 4.1.11: Word of mouth recommendation of brands

. . Emzor Pharma brands recommended to them by friends while

others 128 (70%) did not get such recommendations from

Percentage (%)

30

70

100

- Yes/No

Yes

No

Total

friends. It was however observed that majority of the

Source: Field survey, 2006 . d

. . Table '4.11: shows that of the 183 respondents, 55 (30%) had

Frequency of response

55

128

183

respondents go for Emzor brands not because they were

recommended to them by anybody, but because they are

effective. Therefore, it is necessary to ensure that brands are

always effective to the consumer.

Table 4.1.12: Reason for preferred Brands

I Effectiveness 1 168 191.8 I I I

Price 1 55 130

Percentage (%) I Proposition

I I

Availability 1 120 165.6

Frequency of response

I Brand popularity 1 20 I I I I Source: Field survey, 2006

Table 4.1.12 shows the different reasons why consumers

preferred particular brand of Emzor. From the table above,

168 (91.8%) of respondents indicated that they use the brand

for their effectiveness, 55 (30%) use the brand because of price.

Another 120 (65.6%) use the brand because of their

. 4

. - avaiiabil'it;, while brand popularity accounted for another 20

" (10.9%) response. Some respondents indicated more than one

reason. However, Effectiveness and availability accounted for

the most reasons. These therefore should be the primary focus

of marketing activities of the company's brands.

Section three of the questionnaire attempts to find the opinion

of the respondents on the effects of advertising on consumer

buying behavior or preferences.

The response pattern to the various questions are presented

below:

Table 4.1.13: Distribution of respondents based on if Advertising Persuades them to buy Emzor Brands of products.

I Yes/NO I Frequency of response I Percentage (%) I Yes

No

( TOTAL

Indifference

I I I _1

Source: Field survey, 2006

100

70

The response from table 4.13 above indicates that 100 (54.6%)

54.6

38.3

13

of the respondents claim to have been persuaded by . d

" adveitisement to buy Emzor brands of products, 70 (38.3%) of

7.1

the respondents were not persuaded by advertisement while 13

(7.1%) of the respondents were indifference, hence did not tick

any option.

Table 4.1.14:

1 Yes

I Indifference

Opinion of respondents on whether Advertising is deceptive.

Frequency of response 1 Percentage (%) 1

Source: Field survey, 2006

According to table 4.1.14 above, 80 (43.7%) of the respondents

claim that advertisement is deceptive, 65 (35.5%) of the

respondents were of the opinion that advertisement is not

deceptive while 38 (20.8%) were indifference. It can be deduced

therefore from the analysis above that advertisement could be

deceptive. Hence, marketing executives and advertising

practitioners should ensure that advertisement are more

realistic or reflects the facts about the product. .

Table 4.1.15: I s advertisement run every day continuous?

YESIN0

Source: Field survey, 2006

Yes

No

Indifference

TOTAL

b

From table 4.1.15 above, 140 (76.5%) of the respondents

Frequency of response

attested that advertising run every day is continuous, 40

Percentage (O/O)

140

40

3

183

76.5

21.9

1.6

100

(2 1.9%) of the respondents disagreed to that. While 3 (1.6%) of

the respondents were indifference. However, it can be deduced

that, advertising run every day is a continuous one.

Management should therefore ensure that it is in line with

advertising budget and program, this is with a view to

minimizing waste.

Table 4.1.16: Continuous advertising persuades you

to try Emzor products (brands)

Source: Field survey, 2006

The table above shows that 110 (60%) of the respondents

' . a

. .

agreed that continuous advertising can persuade them to try

Emzor brands of products. However, 65 (36%) of the 6

respondents disagreed with the statement. While 8 (4%) of the

YES/NO

Yes

No

Indifference

TOTAL

respondents were indifference about it. However, continuous

advertising can actually persuade customers to try a product.

Frequency of response

,110

65

8

183

Percentage (%)

60

36

4

100

Table 4.1.17: Continuous advertising is a waste of resources

1 Yes 1 33 1 l8 I Percentage(%) YESIN0

Source: Field survey, 2006

Frequency of respondents

No

Indifference

TOTAL

. . What the above table reflects is that continuous advertising is

not a waste of resources. This assertion was attested to by 150

150

-

183

(82%) of the respondents, 33 (18%) of the respondents were

negative to the assertion. While non of the respondents was

82

-

100

positive or negative.

However, continuous advertising may actually not be a waste of

resources provided the advertising practitioners or managers

are prudent in the management and use of advertising budget.

Table 4.1.18: Continuous Advertising encourages

Yes

No '

Indifference

TOTAL

brand loyalty

Frequency of response 1 Percentage ( O h )

Source: Field survey, 2006

The table 4.1.18 above shows that 130 (71%) of the

respondents agreed with the notion that continuous advertising

encourages brand loyalty, 48 (26%) disagreed with the

statement. While 5 (3%) of the respondents were indifference.

From the analysis in the table above, it can be deduced that

continuous advertising, indeed encourages brand loyalty.

4.2 Data Analysis of section two of the questionnaire

In tentative analysis of section two of the questionnaire which

t&ds to elicit the respondents opinion / view on the effect of

advertising on consumer preferences using Emzor

pharmaceutical products as a case study in Lagos State.

The following can be deduced from the tables presented above:

- The Respondents exhibits high knowledge of

various brands of Emzor pharmaceutical products as . a *

n table 4.1.7 indicates.

. . - Table 4.1.8 confirms the popularity of Emzor

Paracetamol among other brands, hence it is the most

used of all the brands. While table 4.1.9 attested that

most of the respondents use Emzor brands of products

on prescription.

- Table 4.1.10 confirms also the popularity of radio

among other medium of communication as all the

respondents indicate having heard the message

through radio.

- Majority of the respondents are of the opinion that

they prefer Emzor brands of products due to its

effectiveness, while another majority were persuaded

to buy Emzor brands by advertisement.

This is an indication that advertising can indeed b

influence consumers positively in their preferences.

- Very good number of the respondents indicate that

. * 9 0 * ' n

advertising run every day is continuous and it

persuade them to try the product.

- Despite their positive assertion to most of the

questions posed the respondents, some still insists

that advertising is deceptive. The researcher however,

observed here that this notion can change if

advertisement should be more realistic or reflect the

facts about the products.

- Table 4.1.17, indicate that majority of the respondents

Testifies that continuous advertising is not a waste of

Resources and a good advantage being that it

encourages brand loyalty.

4.3 Interview Data Presentation

This study was designed to determine the level of involvement

of management staff of Emzor pharmaceutical company in

marketing programs in the focus area- Lagos State.

It also desires to find out the level of involvement of marketing . 4

b .

' (?( professionals in the management of Emzor pharmaceutical . .

products especially as it concerns an element of promotional

mix (advertising) and its effects.

The findings' from the interview conducted by the researcher

are presented below:

Table 4.1.19: ~istribution of Interviewee by Position Held

I TOTAL

Senior management

Middle management

Junior management

Source: Field survey, 2006

Percentage(%) Position

The table above shows that 40% (2) of the interviewees hold

senior management positions in the organization, 2 (40%)

occupy middle management positions while 1 (20%) belongs to

the junior management staff. The profiles show however, the

Frequency of response

2

2

1

tendency that interviewees have the capacity to answer

40

40

20

'

" que$ionS p&ed to them about their organization without bias. ' h

Table 4.1.20: Distribution of Interviewees by whether the organization is of international or local origin.

Source: Field survey, 2006

Percentage(%) Proposition

Local

International

' "Froma the ,table above, it can be concluded that the ' R

Frequency of response

pharmaceutical company being studied is of local origin. This is

5

-

also in line with Federal Government Campaign for

100

-

Indigenization of products that will still be of International

standard.

Table 4.1.2 1: Distribution of Interviewees by the Number of key managers with marketing Qualifications in the organization.

Organization

Emzor

Industries Ltd

Management

Staff strength

No of Staff

with

marketing

qualification

Percentage (%)

Source: Field survey, 2006

From the table above, the interviewees indicated that 2 (40%) of

the management staff has marketing qualifications.

Theoretically, this is an indication that marketing professionals

are involved in the management of Ernzor pharmaceutical

products, with regard to marketing.

. . 4.3 TESTING OF RESEARCH HYPOTHESIS

HYPOTHESIS 1

Ho: Advertising does not Persuade you to buy Emzor

Pharmaceutical Industry's Brand of Product.

H 1: Advertising Persuades you to buy Emzor

Pharmaceutical Industry's Brand of Product.

Question 16 from the questionnaire was used to gather data to

test for this research hypothesis.

The response is as presented on the table below:

Respondents distribution based on if Advertising Persuades

you to buy Emzor Brand of product.

Propositions

Indifference (""_ TOTAL . .

' R

Frequency of Response Percentage(OI0)

d Source: Field survey, 2006

Stating the hypothesis in proportional terms,

At 95% level of confidence limit =Ct=0.05

a= 0.05 :. Za = 1.645= Table Value

For the calculated value, using

n

Where P" = Sample proportion i.e. no of success in sample

Sample size

Hypothesize proportion

Sample size

normal distribution

Decision Rule:

Reject Null hypothesis (Ho) if the calculated value is greater

. a than the, table value, otherwise, accept Ho.

*.

Decision:

Since calculated value Z = 35.38 > table value ZCt = 1.64,

b

i reject Ho.

Conclusion: It is concluded therefore that Advertising has been

able to persuade consumers to buy Emzor Pharmaceutical

Brand of Product.

HYPOTHESIS 2

Ho: Continuous Advertising is not a waste of Resources

H 1 : Continuous Advertising is a waste of resources

Question 19 from the questionnaire was used to gather data to

test this research hypothesis.

The response is as presented on the table below:

. b Respondents

Advertising is . .

distribution based on whether Continuous

a waste of Resources.

YES/ NO

Yes

No

Source: Field survey, 2006

Frequency of response

Indifference

TOTAL

Percentage(%)

33

150

18

82

-

183

-

100

Stating the hypothesis in proportional terms,

Ho: P z 0.5

At 95% level of confidence limit= a 0.05

a = 0.05, :. Z a =1.645=table value

' . a , . * ' R

For the calculated value, using

P' -P

n

Where P' = Sample proportion i.e. no of success in sample

Sample size

P = Hypothesize proportion

N = Sample size

Z = normal distribution

Decision Rule:

Reject Null hypothesis (Ho) if the calculated value is greater

than the table value, or accept H1 if the table value is greater

than the' calculated value.

Decision :

Since Table value Za = 1.645 > calculated value Z= -246.15,

b

I reject Ho.

. . Conclusion: It is concluded therefore that Advertising is not a

waste of resources. Hence, it should be given adequate

attention.

CHAPTER FIVE

SUMMARY O F FINDINGS, DISCUSSIONS, CONCLUSIONS

AND RECOMMENDATIONS

5.1 Introduction:

This study has been carried out to determine the effectiveness

of advertising to consumer preference / buying behavior,

especially as it concerns brands of products of Emzor

pharmaceutical industries L .t d. the outcome of the research

findings indicate that the research questions were thoroughly

answered while suggestions for further studies were provided

for future studies.

5.2. Summary of Research Findings

The information obtained from the primary data was derived

from the respondents' answers to the questionnaires. The

summary of findings of the study of effectiveness of Advertising

b

on consumer preferencelbehavior in the Nigerian

. d

@ ~hainiacehtical industry, with specific study on Emzor

-. pharmaceutical industries limited, are a s follows:

1. The study revealed that, advertisement that are properly

packaged, will persuade consumers to try that particular

product. More so, the advert must equally be run

continuously in order to elicit such curiosity that will

motivate consumers to try the product. However, the

respondents agree that they use advertisement as a

criterion for deciding on the type of product or service to

chose from when confronted with many brands.

2. The analysis showed that consumers learn about a

product newly launched into the market through

Television, Radio, Newspapers, Billboards or friends.

They claimed however, that without advertising they

.. ' 5 d

. migllt not be aware of the availability of such a product. *

n

They also agree that advertisement reminds them of

products they have seen but forgotten.

3. The study also indicated that all advert messages are

believed by the consumers. Consequently, majority of the b

respondents considered advertisement not deceptive.

lo3

4. It is also believed that continuous advertisement is not a

waste of resources. It is however, directed to the

particular market segment that needs such a product.

Advertising effectiveness is not only measured by sales

alone, but by communication effect which includes the

impact on consumer's product awareness, attitudes,

W ? T y CF q$CQI: preferences, loyalties etc.

4 - ""ZDAh)tl

In other words, advertising effectiveness is measured in

terms of the advertiser's cost and benefit.

Consumers of Emzor pharma products are more

interested in the quality of its brand of products offerings.

However, price, availability, effectiveness are the major

concerns consumers. Given the above situation,

influence and advertising may not form the bulk of the

basis for final, buying decision by consumers.

Respondents were only aware of Emzor pharma brand

with the prefix - Em - which the consumer associates

with the company and the awareness of course, is created

through advertisement.

Most consumers used the company brands on

prescription or when the advertised symptoms manifest

8. Most consumers used the company brands on

prescription or when the advertised symptoms manifest

9. The brand loyalty is as a result of quality, availability,

effectiveness etc.

10. Most respondents believed that advertising has effect on

consumer brand choice and it portrays the brands as they

are.

11. The study further revealed that consumer's income affects

' . d n ' his/her purchasing power not minding the pressure from

advertisement.

5.3. Discussions

The discussion of the effectiveness of advertising on consumer

buying behavior/preference with reference to Emzor

pharmaceutical industries Ltd would be based on the findings

of this study. This section therefore, will discuss some very

peculiar findings in the study. These are:

- A very high proportion of the respondents were not

aware of some brands of Emzor Pharma. This is most

' probably because the brands do not carry the

company's popular prefix - Em, and marketing

activities especially of advertising

- The media most popular with the respondents are

television and radio. In other words, the respondents become

aware of the brands through television and radio.

However, consumers get to know about one Emzor brand of

product or another through one form of adverting or the other.

But which ever, form it takes for one to be aware of a brand of

product is a form of advertisement.

. . , - ' . . &- .The advertisement of Emzor brands of products is

n

. - conveyed through more than one medium and the exposure

consumers get from such media depends on a number of

factors which includes social status, income, environment

among others.

- The awareness of Emzor brand of products to consumers

is very important to management as well as consumers as it

triggers off a lot of effects which goes through problem

recognition, to information search, and finally into purchase

action.

- The product awareness does not necessarily lead to

b

positive action at all times. Some times, people may be aware

of a product, and yet are not moved into purchase process due

to some reasons but however, such product information is ,

stored in the memory of the person/consumer and would be

recalled when the need arises. . . . a . . & .

* There is need however, for continuous advertising at all stages

. - of product life cycle.

- The awareness of Emzor brand of products to consumers

is very important to management as well as consumers, as it

triggers off a lot of effects which goes through problem

recognition, to information search, and finally into purchase

action.

- The product awareness does not necessarily lead to

positive action at all times. Some times, people may be aware

of a product, and yet are not moved into purchase process due

to some reasons but however, such product information in

stored in the memory of the person/consumer and would be

recalled when the need arises.

There is need however, for continuous advertising at all stages

of product life cycle.

- It is true that an increase in advertisement may not

increase sales volume reciprocally, but a decrease of such

advertisement at any stage will however, have adverse effect on

. . I .. . . the. p,roductin terms of its sales and communication effect.

(*

- Advert managers and practitioners should endeavor at all .'

times to have a proper selection of the right advert message,

which is well segmented and a unique selling proposition used

to differentiate the product/brand among others.

- The company should not embark on advertising alone at

the expense of other promotional mix elements which include:

sales promotion, personal selling, publicity and public

relations.

- Advertisement should be continuous for consumers to

gain better awareness of the product.

- The company should also not rely on "above-the-line"

media advertising, hence "below-the-line" media should serve

as back u p or reminder.

- Timing is of utmost important here. Therefore, in

developing marketing activities, especially advertising,

timing is necessary because, of the choice of time of

b consumers at when they watch television or listen to

radio.

5.4. Conclusion

Based, on the analysis of findings in chapter IV and the

summary of findings already enumerated, it can be deduced

that advertising is an important tool in marketing of consumer

products especially Emzor pharmaceutical products,

The advertising role in disseminating information, persuading

and reminding consumers of the need for a product actually

affects the behavior of consumers.

From the data analysis of this study and the summary of its

findings, its being concluded that advertisement has effect on

consumer behavior in a purchase decision, especially where

there are competing brands.

Some of the ways by which advertising does this is by creating

awareness of the product, highlight the unique features and,

' . a thus persuading the consumers to make a trial purchase.

n

The study further showed that there is a positive effect of

advertising on Emzor brands of products. The brands are

widely accepted by consumers, hence, there is need for h

continuous advertising to reach the target market at all times

with a view to encouraging repeat purchase and brand loyalty.

The brands being advertised must meet and indeed surpass

consumer expectations and needs in terms of quality,

effectiveness and perceived value-added.

However, if the success already achieved by Emzor Pharma in

advertising its products is to be maintained, it must employ the

total integrated marketing communication approach that

possesses the capability of addressing consumer needs in all

spheres.

Ogbechie (1996) defined total integrated marketing

communication as:

A totality of the various forms of communications, that are

employed to promote or project a product or service to its target

audience. This totality is made up of various elements namely

advertising, sales promotion, public relations, events

marketing, field marketing, direct marketing, packaging design, b

. . ,

"markeiing consultancy, consumer research and media buying.

It is therefore important that a well laid out advertising

program be put in place to assist in ensuring that all

promotional mix elements are synchronized and consistently

mkasured against some predetermined expectations.

5.5 Recommendations

From the outcome of the study, the following recommendations

. shall be necessary in improving the effectiveness of advertising

on consumer preference or buying behavior of Emzor

Pharmaceutical customers.

- The media of marketing activities should be streamlined

to ensure that they reach the largest number of

consumers. However, emphasis should be targeted at

consumers in the rural areas who have no access to ' . 4

. , . . 14 television, news papers or even bill-board.

- Advertising budget should be part of the company's

policy and it should be checked in terms of

implementation, due to situations where company

spends more money in media with the least appeal

to the consumer.

- Company and customers feedback mechanism should be

in place to ensure that advertising objectives are achieved.

- In formulating advertising policies, companies must

emphasize the comparative advantage of the product in

.terms of price, quality, benefits, availability, effectiveness

etc. Organization should see the factors above as inputs

into improving their message content.

- Publicity and public relations can be done using shows,

exhibitions, seminars, conferences, contests, sponsorships

of sports programs, donations, etc, to create awareness

about brands of products in terms of new changes in

company's activities and to promote the company's

goodwill.

- It is however, recommended that organization should not

' *. . d

@ embhrIc'on advertising alone at the expense of other

. . promotional mix elements which includes: Sales promotion

personal selling, publicity and public relations.

- The researcher also recommended that advertisement

should be continuous for consumers to gain better

awareness of the product. The company should also not

rely on "above-the-line" media advertising, hence "below-

the-line media should serve as a back up or reminder.

- The researcher recommended on the improvement in

advertisement contents and timing. Timing is of utmost

important here, hence in developing marketing activities,

especially advertising, timing is necessary because of the

choice of time consumsers with regard to when they watch

television or listen to radio.

#. . 4 - . The, researcher further recommended that advertising

.A

should contain message that inform and create awareness . .

in the mind of consumers. Hence, advertising should not

be replete of puffy statements. Puffs should however, be

natural and not as a means of deceiving consumers.

Advertisements should also be aimed at attaining brand

loyalty as it was found out that a lot of consumers change

their brands as a result of price, reference groups, product

availability and taste.

5.6 Suggestions for further study

In this study, an attempt was made to focus on advertising as a

factor which influences consumers behavior with a view to

attaining the purpose of the study.

However, some factors such as price, taste, product availability

and the influence of reference groups have not been adequately b

subjected to analysis.

Therefore, the future research should be carried out on these

factors with a view to understanding their relative degree of

effects on consumer behavior.

BIBLIOGRAPHY

Achumba, (1996), The Dynamics of consumer Behavior, Lagos: Mac Williams Publishers Ltd.

Advertising Practitioners Council of Nigeria (APCON), (1997).

Alexander R. ( 1 990), Marketing Definitions Chicago, American Marketing Association.

Bach G.L (1966), Economics, Englewood Cliff, New Jersey: Prentice hall Inc.

Backman J. (1 96 I), Advertising and Competition, New York: New York University Press

. .

. ' ' ~ a k & M. J (1996), . Marketing: An Introducto y Text, 6 ed. London: Macmilliam Press Ltd.

Boove ,Arens, (1986), Contemporay Advertising, IRWIN INC.

De Fleur M:L. (1966), Theories of Mass Communication, New York: David Mckay Co., Inc.

Engle. (1995) Consumer Behavior, New York: Holt Rinebark and Winston.

Pride,Ferrel( 199 1) Marketing and strategies. London: Houghton Mifflin Company.

Kaldor N.H. (1950-5 I) , "The Economic Aspects of Advertising" The review of Economic Studies, Vol, 18.

b

Kassarjian H.H, Robertson T.S.(1968 - 1973), Perspectives in consumer Behavior, Scott: Foreman Company.

Kotler, P. (1997), Marketing Management: Analysis, Planning, Implementation and

Control, New Jersey: Prentice I-Iall Intl, Inc.

Mathew, Buzzel, Levitt,Frank.(l964),Marketing: An Introductory analysis

New York: McGraw- Hill, European ed.

Nicosia, F.M. (1 966), Consumer Decision Processes: Marketing and Advertising Implicatins, Englewood Cliffs, N . J : Prentice-Hall Inc.

Ogbechie.C,Williams.K. ,Okigbo.C. (1997) ,Advertising in Nigeria: Some Fundamental issues, Lagos: An Amanda Publications.

Osuagwu , Eniola (1 W8), Marketing Management: Principles, Strategies and Cases, 2ed. Lagos: Malthouse press Ltd.

. . Osuagwu , Achumba (1994), Marketing: Fundamentals and . a

(* Practice,U.S.A: A1 marks Educational Research Inc.

Pride , Ferrell (1987), Marketing: Basic Concepts and Decision, 5ed. Boston: Houghton Mifflin Company.

Robinson P. J , Stidsen B. (l967), Personal Selling in a Modem Perspective, Boston- Massachusetts Allyn and Bacon Inc.

b

Sandage, Fryburger.V. (1967), Aduertisingtheoryand Practice,7ed. Homewood:

Richard D. Irwin Inc.

Schultz, Martin, Brown. (l988), Strategic Advertising companies, Williams Brown Lincolnwood: NTC

Winton Fletcher, (1979), Advertising, London: Hodder and Stoughton.

Niel H.Borden, (1982), The Economic effect of Advertising, 2ed.

Irwin Inc, Homewood ill

Harper, M (1995) The role of Advertising: . The contributor of this - . 4 . .

R Article is the President of Marion Harper Associations Inc. U.S.A.

JOURNALS

John Phillip Jones, Advertising Spending: Maintaining Marketing share, (Harvard Business Review, January - Feb. 1990)

Schroer, J . C , Advertising Spending: Growing Marketing share, (Harvard Bus. Rev. Jan . - Feb. 1990)

Smith E.R. Integrating information from Advertising and trials: Processes and effects on consumer Response to product Information. (Journal of Marketing Research Vol. Xxx, May 1993)

Stidesn B. (1970), How much does it pay whom to advertise. b American Economic Review,

papers and proceedings.

APPENDIX A

Dept of Marketing

Faculty of Business Administration

University of Nigeria, Nsukka,

Enugu Campus

Enugu.

. . January, 2006

. Jhe ~ e ~ ~ o n d e n t . ,

_ . Dear Sir/Madam, REQUEST FOR COMPLETION OF QUESTIONNAIRE

I am a post graduate student of University of Nigeria, Enugu

campus, Department of Marketing, Faculty of Business

Administration. I am conducting a research study on THE

EFFECT OF ADVERTISING ON CONSUMER BEHAVIOUR/

PREFERENCE: A STUDY OF EMZOR PHARMACEUTICAL

INDUSTRIES LIMITED.

I will sincerely appreciate your honest opinion and information

as best known to you in response to the questions posed below,

It is strictly for academic purpose and confidentiality is

assured.

Thank you for your time and quick response.

Yours truly,

OGBU BONAVENTURE D.

V .. 8 4 *

'3

QUESTIONNAIRE

. .

SECTION ONE:

Bio-Data/ Demography

Instruction: Please mark " X for that which is applicable to you

1. Sex: (a) Male 0 (b) Female 0

2. Age group: (a) Below 20 years 0 (b) 2 1-30 yrs 0

(c) 31 -40 years (d) 40 and above 0

3. Marital status: (a) Single 0 (b) Married 0

(c) Divorced D (d) Widow/ Widower 0

4. Occupation: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;. . . . . . . . . . . . . . . . , . . .

5. Educational qualification:

(a) Primary Certificate& Below 0

(b) Secondary school Certificate 1-1

(c) First degree Certificate 0

(d) Masters Degree & Above 1-1

6. Location of resident/ occupation:

a. University of lagos ( ) b. Mushin ( )

c. Victoria Island ( 1

d. Satellite and Festac Towns ( )

SECTION TWO: Brand Awareness & Usage

Instruction: Kindly read through the questions

~ a r e f ~ l ~ l y a h d ' t i c k appropriately (Yes or No) R

7 . Do you take any Emzor Pharmaceutical Products?

(a) Yes 1, (b) No 0

8. Which of these branded products do you know to be

Emzor Pharma products?

(a) Emzor paracetamol 1-1 (b)

(c) Em-B-plex (dl

(g) Em-vit-C 1 1 (h)

(i) Emzoquine 11 b)

(k) Sulphadimidine -, (1) b

(m) Promethazine 0 (n)

Emzoron 1 1

Emcillin

Emtrim ,--, Emzolyn I 1

Ferrous Gluconate -1

Diazepam

Indomethazine

9. Which of these do you use? . I

. . I

m ...................................... (a)

. - (b) ......................................

(d) ....................................... 10. Which do you use most? Please rank your choice?

(a) ................... .. ...............

(b ) .............................. .. ...

11. Will you still use the sa.me products of Emzor pharma

without the brand names? (a) Yes 0

(b) No 0 (c) Indifferent 0

12. How do you take the brands?

(a) Routine 0 (b) On prescription 0

(b)' When advertised symptoms manifest 0

13. By what mediumlmedia did you get to know about these

brands? (a) Television 1-1 (b) Radio 0

(c) News papers/Magazines 0

(d) Bill boards 1-1

14. Did friends recommend these brands to you at any time?

(a) Yes 0 (b) No 0

15. Why do you prefer your favorite Emzor brand?

(a) Effectiveness -1 (b) P r i c e ~ l

(c) Availability 0 (d) Brand popularity 0

SECTION THREE: Advert Effectiveness

Instruction: Please tick appropriately, haven't read carefully.

16. Have you seen adverts of Emzor products before?

17. Advertising persuades you to purchase Emzor brands.

18. Every message an advert communicates is always , believed.

S

(a) Yes 0 (b) No 0

19. I s Advertisement run every day continuous ?

. 8 (a) . Yes 0 (b) No 0

4

20. Continuous adverting persuades you to try Emzor products.

(a) Yes 0 (b) No 0

2 1. Continuous adverting is waste of resources

(a) Yes 0 (b) No' 0

22. Continuous adverting encourages brand loyalty.

APPENDIX B

INTERVIEW SCHEDULE

................................................... 1. Organization's Name

2. Interviewee's position/ Rank.. ......................................

3. Organization's ownership structure: a. Private ( )

b. Government ( )

Bio- Data of staff.

Instruction: Please mark "X" for that which is applicable to

you. . a I

' * 4. Sex 0

. . 5. Age group 11

6. Marital status 1-1

7. Educational qualification 0

b

8. How long have you been a staff of Emzor pharma?

(a) Below lyrs 0 (b) 1 -2 yrs 0

(c) 3 -5yrs 0 (d) Above 5yrs 0

9. Department:

(a) Production 0 (b) Marketing 0

(c) Sales 0 (d) Finance/Accounts 11

Staff Advert Activities:

10. Through which media do you advertise your product and

services?

. . ' ' "1 1. 'which of these is used consistently and why ' 4

. . (a) ............................................

(b) .............. : ............................

( c ) .............................................

( d ) ............................................

(e) .......................... .. ............

12. How do consumers react to your advertisements?

(a) Positively T I (b) Negatively T I

13. To what extent has advertisement increased your sales?

14. Does advertising help sustain increased sales? 4

15. Has continuous advertising helped you to retain and

acquire new customer?

16. How many branded products does your company have?

(a) Below5 1-1 (b) 6-10 0

(c) 11-15 11 (d) Above 15 - 17. Which of these brands have been marketed in the last 2-5

years? . .

. 9

a . * (a)' ' Emzor paracetamol -1 (b) Emzoron 1-1

. . (c) Em-B-plex 11 (d) Emcillin 11

(el 0 (f) Emtrim 0

(g) Em-vit-C 0 (h) Emzolyn 0

(i) Emzoquine -1 Cj) Ferrous Gluconate -1

(k) Sulphadimidine -1 (1) Diazepam 0

(m) Promethazine g_3 (n) Indomethazine 11 '

18. What is the percentage of cost incurred in advertising,

(Distribution of Advert cost) through different media?

b

(c) Print 0 (d) Bill boards 0

19. Has there been changes in percentage in the last 5 yrs?

(a) Yes a (b) No D

20. How does the increase in Advertising budget affect sales

volume?

(a) Positively 0 (b) Negatively 0

(c) Indifference -1

21. Does the company have a feedback system in its

advertising activities? =(a) Yes I NO

22. If yes which of these is the most used for feedback?

(a) Suggestion box D

(b) Questionnaire to distributors 0

(c) Interview of retailers by sales Representatives 0