Project Materials

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The toothpaste is commonly used by people and is now accepted as essential oral hygiene. Toothpaste comes in the form of paste, gel or powder that helps remove plaque, bacteria, food from the teeth, tongue, gums, etc. It improves the brushing experience and cleaning power of a toothbrush.

Toothpaste advertising effectiveness pertains to how well a company advertises its products. Small companies, as well as big organizations, use different types of strategy to measure advertising effectiveness. These measurements can be used with the help of print and electronic media like TV, Radio, Newspaper, Mail, etc. In the present scenario, advertising is the best way to build sales and profit for all small- and large-scale companies.

The old view of marketing concentrated on the function of distribution of goods and commodities. The flow of goods from producer to the consumer is the sale-oriented aim to maximize profit through maximizing the sales.

Realizing the importance of marketing to the success of a firm, the business administrations began to think of a new idea. Companies increasingly recognize that the starting point for making decisions on the marketing mix is by first understanding the consumers in their target markets (Smith, 2012).

The modern marketing concept is developed through a gradual change in the mind of business people. The subject of marketing encompasses a fourfold edifice. In the word of McCarthy, an early writer, it involves managing the 4 P’s product, price, place, and promotion.

The concept holds that the key to achieving organizational goods consists in determining the need and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors (Booms and Bitner, 2011).

Philip Kotler described the Modern Market concept as “Consumer orientation backed by integrated marketing aimed at generating consumer satisfaction and long-run consumer welfare as the key to satisfying organizational goals.” Advertising helps in disseminating information about the advertising company, its product, product quality, place and availability of its product and so on.

It helps to create a non-personal link between the advertiser and the receiver of the message. The significance of advertising has increased in the modern era of large-scale production through competition in the market. Advertising is needed not only for manufacturers and traders but also to the customers and non- profit organization.

The importance of advertising varies from business to business depending on the nature of business and other marketing activities it employs (Aaker, 2009). Advertising is referred to as mass or non personal selling (Bovee, 2009).

It is used to inform, persuade and remind customers about particular products and services. Some products, of course, lend themselves to advertising more than others. Kotler (2008) says that certain factors indicate an opportunity for adverting success such as high primary demand, the trend for the product, chance for significant product differentiation, high relative importance to the consumer of hidden qualities as opposed to external appeals and substantial sums of support advertising.

Gumesson (2009) argues that it is the value of the customer’s experiences with the product/service that is important, therefore, customers’ needs are important to consider when developing products and services.

In the abundance of products that are identical in terms of quality and shape, consumers purchasing decision will be pushed towards the brand without considering the characteristics of the product (Kapferer, 2016). In the markets, which products and services overlap and adapt, a strong brand can be the only display characteristic that distinguishes a product or service offering from competitors (Rafiei, Haghight & Yazdani, 2012)

Strategies of promotion include advertising, personal selling, publicity, sales promotion, and packaging. These strategies are used as tools to retain existing customers and attract a potential buyer.

Consumer retention will be greater for a product with a good image than in one with a bad image. Good-image stores attract more attention, contacts, and visits from potential customers. In addition, advertising provides greater consumer satisfaction and stimulate active and positive word-of-mouth communications among consumers (Sweeney and Swait, 2012).

1.2 Statement of the Problem

The greatest challenge facing the toothpaste industry is the similarity of the products. Stigler and Becker (1977) posits that if the consumer is aware of the product undifferentiating, they become indifferent and choose the products at random or as a repeat buyer, sticks with the previously chosen brand, with occasional experimentation,

if the brand happens to be unavailable in the store while the other brand is available, the consumer is not disappointed since he assesses all the brands as equally good. With the proliferation of oral care products in the market, consumers today are exposed to more advertising than ever before. Thus, it takes more impact to get their attention in the market place.

Marketing strategies must, therefore, be geared towards reaching consumers and towards the strategies of competitors. The key to winning and keeping customers is how to understand their needs and buying processes better than competitors do. Competitive advantage can be achieved by a proper choice of advertising strategies. The toothpaste industry has been faced with intense rivalry and competition due to the similarity and nature of the products and continuous threats of entry.

1. Objectives of the Study

The main objective of the study is to determine the influence of close up toothpaste advertisement on customer retention while the specific objectives are to: –

1. Determine the influence of TV advertisement of close-up on customer retention.
2. Find out the effect of radio advertising on consumers’ awareness
3. To examine the impact of advertising message on customer retention.
4. To examine the relationship between advertisement and customer retention.
   1. Research Questions

1. Determine the influence of TV advertisement of close-up on customer retention.
2. Find out the effect of radio advertising on consumers’ awareness
3. To examine the impact of advertising message on customer retention.
4. To examine the relationship between advertisement and customer retention.

1.5 Research Hypotheses

Hypothesis 1

1. There is no significant influence of television advertising of close-up toothpaste on customer retention.
2. There is a significant influence of television advertising of close-up toothpaste on customer retention

Hypothesis 2

H0: There is no significant relationship between advertisement of close-up toothpaste and customer retention

H1: There is a significant relationship between advertisement of close-up toothpaste and customer retention

1.6 Significance of the Study

This research work will be beneficial to different stakeholders in the field of marketing both in the industry and in research institutions as highlighted below:

The top management team of the company will find this research work very relevant in formulating strategies for building a viable advertising medium for the company’s product(s) which will further assist in improving sales and customer retention in the toothpaste industry.

To the Marketing Executives/ Field officers that usually have direct contact with product users, findings in this study will assist them in developing appropriate advertising strategies tactics to adopt while out in the field.

This present study helps in exploring the influence of advertisement on customer retention, it is understood that advertisement is not only used to create awareness about the product and services but also plays an important role in purchase intention, selection option and preference towards the products.

Moreover, the study will help to understand how advertising can improve customer retention and loyalty. It is a matter of fact that all the companies spend a lot of money on advertisements to establish the product in the market as well as their brand. It is also important for companies to know whether their advertisements are effective or not.

For students and future researchers, this research project will contribute to an important body of knowledge while enhancing students’ thorough understanding of the subject and provide a good basis for future research on the topic.

1.7    SCOPE OF THE STUDY 

The study is based on the influence of close-up toothpaste advertisement on customer’s retention in Ikeja L.G.A of Lagos state.

1.8 DEFINITION OF TERMS

Advertisement: Paid, non-personal, public communication about causes, goods and services, ideas, organizations, people, and places, through means such as direct mail, telephone, print, radio, television, and internet.

An integral part of marketing, advertisements are public notices designed to inform and motivate. Their objective is to change the thinking pattern (or buying behavior) of the recipient, so that he or she is persuaded to take the action desired by the advertiser. When aired on radio or television, an advertisement is called a commercial.

Relationship marketing:  Is a facet of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales

Customer Retention: Customer retention refers to the ability of a company or product to retain its customers over some specified period. High customer retention means customers of the product or business tend to return to, continue to buy or in some other way not defect to another product or business, or to non-use entirely.