Effect of Advertising on Organizational Profitability

ABSTRACT This study examined the impact of advertising on organizational performance of manufacturing sector with particular reference to the selected breweries in Lagos State Nigeria. Furthermore, the study looked into the impact of consumer’s awareness and post purchase behaviour of consumers on sales volume. Data was collected with the aid of structured questionnaire administered to respondents randomly selected from two selected breweries. From the analysis of data performed using multiple regression analysis and T-test for independent group, the relationship of consumer awareness and post purchase behaviour of consumers had on sales was established. Specifically, it was discovered that the respondents that show favourable perception that advertizing brings awareness post purchase behaviour and profit were significantly higher than those that reject the assertion. This shows that the more the companies advertize their products the more sales the company will be realized. In Nigerian Breweries there was 15% increase in sales in 2020 as against what was realize in 2019, while 44% of sales was realize in 2019 which was greater than that of 2018. Likewise in Guinness Nigeria PLC,there was 5% increase in sales in 2020 over that of 2019 while 121% of sales was realized in 2019 than that of 2018. This is an indication that advertising has a significant relationship with sales and has improved the sales volume of the two companies drastically. Thus, companies should increase budget for advertising every year in order to enable them meet their primary aims and objectives. Also, management of both companies should engage in electronic advertising so that they can have access to global market. Moreover, companies should take into consideration and more importantly, how to build and sustain company goodwill which is also a significant determinant of sales/turnover. Keywords: Sales, advertising, companies, breweries, awareness, purchase, behaviour