Advertising: Product Display And Profitability

The essence of being in business by any business outfits is to

produce for sales and profits. In order to remain in business an

organization must generate enough sales from its products to

cover operating costs and post reasonable profits. See samples of

Free research projects for students on advertising. For many

organizations, sales estimate is the starting point in budgeting or

profit. It is so because it must be determined, in most cases,

before production units could be arrived at while production units

will in turn affect material purchases. However, taking decision on

sales is the most difficult tasks facing many business executives.

This is because it is difficult to predict, estimate or determine with

accuracy, potential customers’ demands as they are

uncontrollable factors external to an organization. Considering,

therefore, the importance of sales on business survival and the

connection between customers and sales, it is expedient for

organizations to engage in programs that can influence

consumers’ decision to purchase its products. This is where

advertising and brand management are relevant. Advertising is a

subset of promotion mix which is one of the 4ps in the marketing

strategy, advertising serves as a major tool in creating product

awareness and condition the mind of a potential consumer to take

eventual purchase decision. Advertising is a form of

communication through mass media about product, services or

ideas paid for by an identified sponsor. Since communication is

transfer of idea, attitude, information, mood, and so on from one

person to another through a medium: it may be quite correct to

define advertising as a form of communication. This is because in

advertising, persuasive messages about the products, service or

idea are made through a channel. This no doubt is similar to the

communication process of a source sending a message through a

channel to a receiver for a feedback.

In Nigerian economy, many manufacturers attempt to

stimulate the demand for their products (goods/services). They

are not satisfied merely to produce and trust to the chance that

consumers will become aware of their products through the

impersonal interplay of the market. It is believed that if a better

product is produced, consumers will not necessarily take special

pain of informing themselves of its existence, its worth, its

of project topics and materials on product display.

Advertising provides information that facilitates the job of the

seller, helps customer make quick decision, informs customer of

the presence of a product, price which it is being sold and

placement (where it is available) thereby giving room for

economy of time, energy and money in trying to look for the

product. It also announces a new product, indicates new uses of

existing products, reminds customer of an existing product, about

the desirable qualities, stimulates or generates enquires and

builds corporate image to mention a few. The effectiveness of

these is expected to result in increased sales and profit. Profit can

be viewed as the excess of total revenue over and above the total

cost. Profit making in any organization is a function of many

factors. There is prudence in vigorously and diligently pursuing

organizational goals and objectives. One of such goals is

maximization of the wealth of the owners in an environment

where social responsibility is openly embraced.

ADVERTISING
Advertising is impersonal communication of information about

products, services or ideas through the various media, and it is

usually persuasive by nature and paid by identified sponsors it

consists all activities that involve presenting to a group, non-

personal, oral or visual sponsored messages regarding a product,

service or idea “Advertising is directed to groups of people and is

therefore non-personal. Companies usually sponsor advertising in

order to convince the public that their products will benefit them.

More so, advertising is the paid promotion of goods, services,

companies and ideas by an identified sponsor. Marketers see

advertising as part of an overall promotional strategy. Other

components of the promotional mix include publicity, public

relations, personal selling and sales promotion. Advertising allows

a company to tell the benefits of a product to a potential

customer. Advertising can be in a newspaper or magazine, on

radio or TV, a billboard, internet or a variety of other means.

Advertising is generally paid for, as opposed to publicity, which is

usually free.

FUNCTIONS OF ADVERTISING
There are four main functions of advertising:

1. Economical function: The nature of the economical function

of advertising is first of all to stimulate sales and increase the

volume of profits from the sale of a certain product for a certain

unit of time. Advertising informs, creates the need for a product

or service, and encourages people to purchase. The more people

have responded to the ad, the better it is for the economy and the

economical wellbeing of society.

2. Social function: Advertising information has a significant

impact on the formation of the consciousness of each individual.

When advertising is addressed to consumers, besides the

promotion of a product, it also helps to form ideological values of

the society and at the end has an effect on the character of social

relations causes consumer instincts, encouraging people to

improve their financial state, improves the culture of

consumption. Comparing different products and services, the

consumer, in any case, tends to get really the best.

3. Marketing function: Advertising is an important component

of marketing. Advertising entirely connected to the tasks of

needs concerning goods and services.

4. Communicating function: Advertising is also one of the

specific forms of communication. It is designed to perform an

appropriate communicating function, linking together advertisers

and consumer audience by the means of information channels.

PRODUCT DISPLAY

Retail product displays are the fixtures in your store that hold or

promote your products. The look of retail product displays relies

heavily on your visual merchandising strategy. You or your visual

merchandiser can arrange displays to showcase your products

and increase sales. The merchandise display happens to be a

special presentation of the products of a store that is used to

attract and even entice consumers. A well designed display

will infuse exactly the right message into the minds of consumers.

And if your display is placed in strategic areas of the store, your

product can be exposed to a lot more potential customers than if

it's sitting on a shelf.

PROFITABILITY
Profitability is the primary goal of all business ventures. This is

simply a cash transaction between the business and the lender to

generate cash for operating the business or buying assets.

Profitability is a measurement of efficiency – and ultimately its

success or failure. A further definition of profitability is a

business's ability to produce a return on an investment based on

its resources in comparison with an alternative investment.

THE EFFECT OF ADVERTISING AND PROFITABILITY

The role play by advertising in the sales growth of an organization

cannot be treated with just a wave of hand. Sales promotion in

the form of advertising in promoting product and service

awareness among consumers cannot be overstressed.

Advertisement provides a platform for firms to create awareness

about their products or services and how consumers can make

the best out of such products. Thus, for advertising to be

effective, it must have an appeal, attract attention, commands

interest, inspire conviction and must provoke interest.

Advertising is an important tool of marketing as it helps the

business achieve competitive advantage by selling its products

advertisements and publicity in order to make sure that the

masses are aware of its products, their features and advantages

over the competitors. Basic purpose of advertisement is to

increase the sales of the advertised products/companies.

Logically there has to be an impact of advertisement on sales

because that is the reason why companies resort to advertising

spending. What remains to be seen is though, which companies

spend (more heavily) on advertising and which do not. A company

that has a higher amount of sales revenue can afford to spend

more on advertisements when compared to a company with lower

sales revenue.

CONCLUSION

Companies need not only to produce good quality products, but

also to inform consumers about their benefits, as well as to

achieve clear positioning of their products in the minds of the

consumers. In order to make a new product to succeed, it must

have the desired parameters for consumers, to be unique, and

consumers should have the information about its characteristics.

that is an essential part of a series of the marketing activities, a

kind of information output to the consumer. The main way of

promoting of products is the advertising. Advertising is any paid

by a specific sponsor form of non-personal presentation and

promotion of ideas, goods and services. Organizations use

advertising to tell about themselves, about their products and

services, or about some of their activities for an audience

selected in a certain way and with the hope that this message will

cause a responding reaction.