Anda di halaman 1dari 16

ACKNOWLEDGEMENT

My special thanks go to the Lord Almighty for care and protection during the course of
writing this project work.
I express my sincere gratitude to my supervisor who assisted me until I completed this
project work successfully.
Special thanks go to my parents Mr and Mrs Dominic Limiri for care and financial
support they gave me. My special gratitude also goes to my classmates for their co-
operation and encouragement.
Lastly, I acknowledge all the respondents who participated for devoting their time to give
me the information that led to this work becoming successful.

RADIO ADVERTISING AND SALES PERFORMANCE IN AN ORGANIZATION

CHAPTER ONE

1. INTRODUCTION
2. BACKGROUND OF THE STUDY
The research is meant to enlighten the researcher on the impact of radio advertising on a
firm’s sales performance.
Today, many organizations are using radio advertising to increase their sales because
radio uses many languages and can reach many audiences at the same time. Firms that do
not use radio advertising experience low sales performance which leads to low market
share. The researcher has been able to establish a number of firms that use radio
advertising among one selected as a way of increasing their sales. The researcher
anticipates that the study will be useful to the entire industry, the publics and even the
non profit making organizations in their endeavor to increase their sales.

1.3 STATEMENT OF THE PROBLEM


Poor advertisement in an organization has led to low sales.
Radio advertising is an act of creating awareness and increase sales of product or service.
Type of media used to advertise;
Frequency of advertising
Time of advertising
Coast and expenses incurred

1. OBJECTIVES OF THE STUDY


The objective of the study is to find out the effect of radio advertisement and sales
performance in an organization.
1. To investigate extent to which radio advertising is used by organizations.
2. To find out the indicators of sale performance in the organizations under study.
3. To investigate the relationship between radio advertising and sales performance in
the organization under study.

2. RESEARCH QUESTION
The study was guided by the following questions;
i. For how long has radio advertising been used by most of the firm?
ii. What role does radio advertising play in a firm?
iii. What does radio advertising communicate about firm’s products?
iv. What are the advantages of using radio advertising over other media?
v. What are the various radio stations used by firms?
vi. What complains to the organization after using radio advertisements?
vii. At what stage of the product lifestyle is radio advertising used more in an
organization?
viii. What criteria does most firms use when selecting a radio station to advertise
on?
ix. What is the Impact of radio advertising budget sales

3. IMPORTANCE OF THE STUDY


The results from the study will be beneficial to the organization, customer, government,
research
Organizations
i. The customers will have proper knowledge on the product hence purchase
more and the organization increases sales.
ii. The organization will identify the best method to advertise
iii. Understand the need of radio advertisement over the media.
iv. The researcher will understand the perception the public and consumers has
about radio advertising.
Customers
i. Customers will be informed about the new product in the market since
customers buy what they know.
ii. Customers will be aware of way for using a product.
iii. Customers will be informed about new price changes
iv. Customers will receive explanation on how the product works.
v. Customers will receive any false rumors about a product.
General Public
When an organization advertises customer get to know about the product they purchase
therefore sales increase. In return the organization offer sponsorship to general public
event.

Government
Through advertisement an organization get large market share. Government generates
revenue from organization through taxes.
Through advertisement government get to know what an organization is dealing with
because it is its responsibility.

Researcher
The study is meant to enlighten the researcher on the impact of radio advertising on
firm’s sales performance.
The researcher get to know at what stage of product life cycle most firms advertise more
on radio.
The researchers learns methods to use when choosing radio to advertise on
The researcher is aware of commonly used radio stations when advertising.

1.9 DEFINITION OF TERM


1. Advertising – it is any paid form of non personal presentation and
promotion of ideas, goods and services by and identified sponsor
2. Radio advertisement – It is the presentation and promotion of ideas, goods
and services through radio and as advertising medium.
3. Publics – groups that have actual or potential interest in or impact on an
organization’s ability to achieve its objectives
4. Impact – This is the qualitative value of a message exposure through a
given medium
5. Sample – Sub group selected from the population from which research is
done.
6. Reach – Number of different persons or households exposed to a
particular media schedule at least once during specific period.
7. Market share – Refers to a certain proportion of all the consumers in the
market that consume the product of a particular firm compared to those of
competitors.
8. Population – A group of people a researcher wishes to use for the purpose
of research.
9. Frequency – the number of times/time period that an average person or
household is exposed to the message.
10. Advertising message – Information communicated concerning a product
or service
11. Advertising Budget – It is a financial plan for all advertising activities.
12. Advertising Media – Means of mass communication through which
advertisements are communicated.
13. Industry – It’s a group of firms
CHAPTER TWO
2.0 LITERATURE REVIEW
Radio is one of the advertising vehicles that is mostly used by advertisers as a primary or
supplemental medium to identify and develop specific appeals to a distinct market.
According to Berkam, W. Harold and Gibson Christopher in book “Advertising concepts
and strategies” the use of radio as an advertising medium has been facilitated by the fact
that it has a relatively low cost due to great competition among radio stations and
networks.
Most of the firms often use radio advertising to create awareness and increase sales or
their products.
In the most firms radio advertising communicate quality and convience of their products
while in other firms it also communicates low prize value and use.
Many firms use radio advertising because of its wide geographical coverage and many
languages used by local stations which makes it possible to reach different target group.

The researcher is interested in evaluating the effectiveness of radio advertising on the


sales performance of different firms, how it’s perceived by those firms, general public
and consumers of their products.

2.1 INTRODUCTION
In this chapter, the literature related to radio advertising was reviewed to study what other
researchers have already done and documented concerning the topic. The review was
important in order to be enlightened on how radio advertising emerged its evolution, the
present status and where it’s heading to.
In the book “Advertising and its role in modern marketing” Dunn Watson and Barban M.
Arnold identify that by 1977, 98.6% of the nation’s home had at least one usable radio.
Boyee L. Courtland and Avens F. Williams in their book: Contemporary Advertising” 2nd
Edition, observe that radio became the primary means of mass communication. New
arrived direct from the scene and whole new world of family entertainment became
possible.
According to Russell Thomas J and Lane Ronald W. in their book “Kieper’s advertising
procedure” 12th Edition, radio is growing fast than ever. The statistic of radio usage are
mind – bogging. According to the radio advertising Bureau, there are more than 500
million radio set in use.

2.2 PREVIOUS STUDY


The major powerful new advertising medium started on November 2nd, 1920 in
Pittsburgh this is highlighted in the book “Contemporary Advertising” Bovee L. Cortland
and Arens F. William. They also said that national advisors use radio extensively because
they could reach large captive audiences that tuned to popular programs.
Berkman and Gilson in book “Advertising Concepts strategies” 2nd edition records that
radio today is enjoying a healthy revival. Its popularity waned during the 1950s and
1960s. The argue that one reason for radios rebirth is fact that Tv has become too
experience for many advertisers. The book notes the following advantages of radio

2.2.1 Relatively low cost


This is because of great completion among station and networks, which has forced them
to keep medirate attractive low.

2.2.2 Demographic Selectivity


Individual radio stations are skillfully appealing to specific target groups in a community
due to competition for audiences.

2.2.3 High message Frequency


2.2.4 Universal availability because radio is portable

FUTURE SITUATION
In their book “Kleppers advertising procedures” 12th edition, Russell Thomas, Jand Lane,
Ronald W note that as advertisers continue to target distinct audience segments, radio
stations to become and even more important part of the media mix, particularly as a
supplemental national medium to reach light users of more traditional national vehicles
such as television and magazines

Klepper in this book “Advertising procedures” the 2nd edition also observes that as years
go, each radio station will be on air in each and every town and even remote areas and
each day and every station will behaving different programs attracting different audience
and advertisers reading cheaper services in the book “ Success in Advertising and
promotions” by Don Milner, radio broadcasting will every different from today in five to
ten years time.
He continues to say that there will be the possibility at the “Financial Times” because
electronics and the technology of the radio having the ability to emerge and inter-active
technology and the prospect of having hundred channels which will be helping in
advertising and charges becoming cheap because there be many radios

According to roseberg J. Larry in his book “marketing” 1st edition , padio advertising will
grow at an over angel rate of 1.4% per year as the consumer will be increasing skepticism
of the advertising practices in torture , demanding accurate and useful products
information

CRITICAL REVIEW OFM MAJOR ISSUES


In this section the researcher researches on the other issues affecting area of study
These refers to the measure of percentage of people in the target of market who are
exposed to an advertising campaign during a given period time e.g. an advertisement may
aim at a researching about 50% of the target consumer during a given month.

Frequency
These refer to the number of times that have average person on the target market in
expose to the message. An advertisement may target an average of three times. The
selected radio station may not repeat the message severally.
Media impact
This the qualitative value of the message exposed through the given media .e.g. for
products that needs to be demonstrated message on TV may have more impact than
message on radio because TV uses both images and sound of which radio uses sound
only.

2.4. SUMMARY OF THE GAPS TO BE FILLED BY TH STUDY


From the data obtained in the study it is clear the radio advertises in widely used by many
organizations to inform the customers about their product.
It also shows that radio advertising is more an introductory stage of the product lifestyle
to create awareness.
Radio advertising has a great impact OA 50% of the firms, average impact of 355 of the
firm and in 12% of the firm it has a small impact.
● Many firms say that they use radio advertising as many
languages which enables them to reach both illiterate audiences.
● The research shows that the future of radio advertising is bright
because it can reach a wider population and emergence of fm
station in local languages for all types of audiences, most firms
uses radio advertising to target uses and potential users
● Major sources of complains are from non-users and competitors

CHAPTER THREE
DESIGN AND METHODOLOGY
This chapter deals with methods used in data collection during the study. I t outlines the
methods used in sampling and respondents involves in the research. It also focuses on the
type of instruments used and how they were used and how they were developed and
administered.

1. STUDY DESIGN
There are two ways of conducting researcher
I. Exploratory research design
II. Descriptive research design
a) EXPLOTORY RESEARCH DESIGN
I. What roles do radio advertisements play in the firm?
II. What are the targets groups of most firms when using radio advertisements?
III. What are the indicators of sales performance in a firm that uses radio
advertisements?
IV. Who generates radio advertisements in most firms?

b) DESCRIPTIVES RESEARCH DSIGN


Here the researcher has a clue of what is causing present situation. The researcher designs
questions in an open ended questioner so that the respondent can fill them accordingly to
the exceptions of the researcher.
I. Why should firms used in radio advertisements? Firms uses radio
advertisements in order to boost the sales
II. Which are groups targeted by firms when it advertises? Firms uses radio
advertising to communicate and inform potential and non-potential customers
about their products
III. Where should the firm get advertisements information? Firms own
advertisements because they understand their organizations better.

2. TARGET POPULATION
The section shows population of interest subject open to invest.
FIRM POPULATION
East end chemist 70
Mini bakeries 77
Equity bank 79
Farmers centre 88
Safaricom Kenya 80
total 394

3. SAMPLE DESIGN
The purpose of this subjection is to identify the sample to be used by researcher to make
some interference about parent population
Firms Population Ratio Sample
East end chemist 70 25 12
Mini bakeries 77 25 10
Equity bank 79 25 15
Farmers centre 88 25 15
Safaricom Kenya 80 25 12
Total 394 25 64

3.4DATA COLLECTION METHODS


This subjection shows the methods which will be used to collect the data from the field.

3.4.1INTERVIEWS
This is a method of inquiring from selected group of people or an organization .e.g. focus
groups
An interview invites firms that uses radio advertising for sometimes and ask some
questions.
ADVANTAGES OF INTERVIEWING
A. Cost vary according to length of the interview and target group
B. Security information can be obtained quickly and complained within a
short period of time.
C. Flexibility interviewing allows the researcher and the marketer to modify
attentive ideas.
D. Interviews are mainly used in much type of marketing problems ranging
from competition to pricing, advertisements e.t.c.
E. Interviews are used in early exploratory stages of research process
F. Interviews provide precise quantitative information as well as qualitative
descriptive information that bridges the gap between the firm and its
products and their consumers

3.4.2 SAMPLING
Advantages of sampling
a. Numbering is involved accuracy of the answers is obtained
b. They are easily understood because of the researcher are allowed to project
sample and get results in relative to target population
c. Every sample units as a chance of being selected there is no bias or favors
d. Less time consuming
DISADVANTAGES
A. It is infeasible with large number because it requires all elements in the e population
be identified and number imply and this is normally impossible when the population
is big
B. Does not guarantee the sampling
C. It us expensive particularly when the population to be covered is big because large
sample spreading out at large graphical area making data collection time consuming
and costly
D. I the chosen sample is not selected the accurately the answer will not be determined.

Xxxxx

QUESTIONAIRE
Radio advertising and it affect on sales performance
INSTRUCTION
I. Tick the box against the correct answer for the closed-ended question
II. Give your answer in the space provided for the open-ended question
1. What is your scope of operation?
Local
National
Religion
International

2. How often do you promote your promote?


Weekly
Quarterly
Monthly
Once a year
3. For what purpose do you promote your products?
To increase initial demands
To complete with competitors
To attract non-users
To persuade channel members
4. Who influences promotion in your organization?
Marketing manager
Top management
Competition
Others
5. What are some of the electronic media that you use?
Television
Cinema
Radio
Others
6. Since when did you start using radio advertising?
Over 50years ago
10-30years ago
30-50years ago
Less than 10years ago
7. What role is played by radio advertising in your organization?
Educate
Reinforce
Persuade
Inform

8. What is the various radio station used by your organization?


Kbc
Muuga fm
Citizen
Kameme
9. What are the advantages of using radio advertising as an adsvertising media?
Many languages
Message
Feedback
Reach
10. What does radio advertising communicate about your products?
Quality
Use
Low price
Image
Value
Convenience
11. How fast do your competitors react towards your advertising campaign?
Slowly
Very fast
Fast
Very slowly
No reaction
12. What are the major sources of complaints?
Current users
Channel members
Government agencies
Non users
Competitors
Others

13. Who evaluates your radio advertising budget in the firm?


Top management
Marketing manager
Consultant
Others
14How often does your firm evaluate its radio advertising budget?
After promotion
Twice a year
Yearly
After two years
No evaluation at all
Others
15 What impact do radio advertising budgets have on sales?
Great impact
Average impact
Small impact
No impact
16 Which method does your firm use to set up a radio advertising budget?
Competitive parity method
Objective/ task method
Affordable
Percentage of sales method
17 which methods do you use to measure sales impact?
Experimental data
Historical approach
other
18 What complaints do you get after using radio advertising?
Incomplete Information
Misunderstood message
Untruthful information
Boring information
Exaggerated claims
Misleading information
Other
19 What are the major sources of such complaints?
Current users
Channel members
Government agencies
Non users
Competitors
Consumer group
BIBLIOGRAPHY
a. Advertising and its role in modern marketing 4th Edition
By Dunn Watson S and Barban M. Arnold pg 50
Publisher Holt, Rinehart and Winston
Year of publication – 1978
b. Contemporary advertising 2nd Edition
By Bovee L. Courtland and Arens F. William
Pg 21
Publisher: Richard D. Irwing
Year of publicate: 1986
c. Kleppers Advertising procedure 12th Edition
by Russell Thomas J. and Lane Ronald W.
pg 225 – 228,
Publisher – Prentice Wall
Year of publisher: 1993
d. Introduction to Advertising and promotion management 1st Edition
By George E. Beilch and Michael A. Beilch
Pg 31
Publisher – Prentice Hall
Year of Public: 1976

INTERVIEW SCHEDULE
SECTION A
Personal Information
1. Name
2. Gender
3. Age
4. Level of education
5. Professional qualification
6. Name of employer