The effect of advertising on sales - a case study of the Ghana Breweries Limited

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Marketing is the name of a game in the modern business field. Companies are producing more than needed by consumers and therefore, it requires some selling efforts for them to survive and to generate profits. Although advertising service is one element in marketing mix, it has become almost the only commercial venture that companies use to achieve corporate objective and long term profitability. Advertising management is complex indeed, and it covers everything of man’s thoughts; ranging from economic, social, cultural, political and international factors. Admittedly, the style of advertising service has changed overtime. It has evolved from its simple form of announcement to a system of argument based on aggressive marketing. Therefore, companies are developing and resorting to advertising campaign and other marketing techniques to make their products uniquely different from others in order to outwit competitors. Interestingly, advertising service becomes important in the business field where firms are producing similar products and supported with lower production cost structure, and competitors are prepared to go all out with selling activities to make sales whereby such decisions will affect the turnover of a given company in the industry. This means that a company has to develop sound marketing activities in the competitive business environment in a manner that will ensure high turnover and profits relative to the rivals. In the light of preceding that the researcher decided to find out the role of advertising and promotion appropriation on the turnover of the Ghana Breweries Limited in the industry in Ghana. It has been revealed from the findings of the study that, advertising and promotions budget is the maker of the company’s turnover as the pricing decision of the company has little to do to generate profit for the company. Also, the company has to watch competitors marketing strategies very careful as such decisions will decrease its share of the market. The researcher has the opinion that, the company can generate adequate profit from its new bottling plant by developing a sound product policy, which is far from the quality. This is so because, without the product, there is nothing to sell, and all marketing activities become nonsense. But with the sound product policy may require less selling effort in the marketplace. It is upon this reason that the researcher charges the Ghana Breweries Limited to spend money on research to minimise or eliminate slight headaches associated with its products portfolio by consuming more bottles of the beer products by its numerous customers.
A thesis submitted to the Department of Economics and Industrial Management, College of Arts and Social Sciences, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the award of Master of Arts degree in Economics, 2001