The paper “ Impact of Advertising on Sales Volume“ is a persuasive variant on statistics project on marketing. Advertising is the technique used by companies to create awareness for their products or services or ideas, and market new products or services or ideas to new as well as potential customers. It has been an old art; as old as man. Keller (2005) argues that the need to advertise seems to be a part of human nature evidenced since ancient times. According to Kotler and Armstrong (2010), “ advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. ” The main aim of advertising is to reach as many potential customers and influence their attitudes, awareness, and purchasing patterns.
That’ s why advertisements can be seen anywhere as long as the target audience can see them without difficulty and/or regularly. Advertisements can be placed on airport walkway walls, on the seats of grocery carts, on the sides of trains, buses, and aircraft (Busari 2002). Advertising can as well be achieved in different ways, such as magazines, radio, newspapers, brochures, billboards, and television (Kotler and Armstrong 2010). Akanbi and Adeyeye (2011) indicate that advertising, as a subset of the promotion mix, is disposed to significantly influence the sales turnover.
Bennett (2006) perceives promotion as a course of conveying a message regarding the products or services or ideas from the marketer to promising customers. Advertising also tends to prompt, assure and sway the consumers’ decisions because advertisements inform, educate, and influences consumers on the satisfactoriness of the product or service offering. Adekoya (2011) says that advertising has certainly played a key role in increasing the sales volume of any company’ s product or service or idea at any point.
He continues to state that advertising has really contributed to a great extent to boost the growth of lots of companies in different industries. Therefore, there is no opposing the fact that customers ought to know that a product or service or idea exists. If not, they may perhaps not appreciate how the product or service or idea can run into their needs. It is for this reason that companies spend a lot of cash to retain and attract markets interested in their products or services or ideas.
It is on this foundation that this research desires to look at the impact of advertising on a company’ s sales volume. The research seeks to answer what relationship exists between spending on advertising and sales volume after advertising. For the purpose of this study, the hypothesis is as follows; That there is no positive on the significant relationship between advertising and sales volume. Data Collection The data needed for this work was collected through the use of secondary sources. The data was collected from a book: Graphs and Summary Statistics Figure 1: Spending on Advertising Figure 2: Frequency Polygon for Spending on Advertising Figure 3: Histogram for Sales Volume after Advertising Figure 4: Frequency Polygon for Sales Volume after Advertising Table 1: Descriptive Statistics sales volume after advertising spending on advertising (£ ) Mean 10531.48 Mean 3093.72 Standard Error 285.8362 Standard Error 166.2767 Median 10476.5 Median 3322.5 Mode 7068 Mode #N/A Standard Deviation 2021.167 Standard Deviation 1175.754 Sample Variance 4085117 Sample Variance 1382398 Kurtosis -1.12113 Kurtosis -1.13885 Skewness -0.0657 Skewness -0.24385 Range 6909 Range 3948 Minimum 7068 Minimum 1035 Maximum 13977 Maximum 4983 Sum 526574 Sum 154686 Count 50 Count 50 Figure 5: Ogive Curve for Spending on AdvertisingFigure 6: Ogive Curve for Sales Volume after Advertising
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