Benefits of Advertising - Essay Example

Introduction Globalization has resulted to the shrinking of the market, which has become accessible by individuals worldwide. Consequently, this has generated competition in the business sector hence bringing competition. Furthermore, for business entities to survive in highly competitive areas, in the market, a need to boost organizations’ products and services arises. Advertisement refers to a system of communication that dissimilar organizations use in encouraging and conversing with people to support or buy their goods and services. In addition, advertising strategy refers to an operation that an organization conducts to converse information concerning services and products to potential customers in order to induce them to purchase such products (Tellis 1). In contemporary organizations, the main aim of advertising strategy is to increase awareness of organizations’ services and products, upsurge total customers and competitors and finally, to fosters the business image of an organization. For any business entity interested in succeeding, advertisement is very vital because through it, an organization is capable of getting new customers as it increases its total consumer base. Secondly, advertisement is important as it retains the organizations’ customers thus avoiding their diversion to other products. Thirdly, advertisement escalates the total company sales because when a company advertises definite commodity, it will explain to individuals why that commodity is better than its substitute hence enhancing many people to prefer their commodity. Finally, advertisement leads to fortunate change in a company’s’ products hence increasing its total sales (Tellis 3). I decided to analyze the importance of advertising to an organization since it will help me understand whether increasing the budgets assigned to advertising has any positive effect on the performance of the organization. Sample and Population My business research will entail ten business organizations in U.S that advertise their goods and services together with other ten business organizations that do not advertise their products. I will conduct random sampling from a list of both organizations that advertise their products and those that do not. I will select ten organizations from each list and collect information concerning my research questions from these organizations before concluding on my hypothesis. Therefore, the total sample for this research is twenty organizations. The data collected will be mainly related to the three research hypotheses that the research is meant to prove. The first group of data will cover the increase in total customers and sale of goods and services in both the firms that advertise and those that do not advertise their products. This will be aimed at determining whether advertising serves to increase the sales that a firm makes. The second group of data will be the increase in the total consumption of goods and services that a firm provides because of advertising, and the final data collected will be the increase total purchased goods per year as a function of advertising. The data collected from the population will help in determining the difference that advertising makes in the operations of the two groups of firms, those that advertise their products and those that do not advertise their products. Hypotheses My research will be aimed at determining the effectiveness of advertising in increasing the performance of a company in relation to sales and client base. Therefore, the research will use three main hypotheses as a basis of answering the research questions. My main research question is what is the main purpose of advertisement? For this research question, the null hypothesis, H0: µ1> µ2. The null hypothesis in this case indicates that advertisement increases the total customers, retains them and increases the total sales of goods and services for a firm that uses advertising. This is determined by the null hypothesis, which indicates that the sample mean for the organizations that use advertising is higher than the sample mean for the organizations that do not advertise. The alternate hypothesis is H1: µ1< µ2. The secondary research question is what is the outcome of advertisement to consumers? In answering this research question, the null hypothesis is that advertisement increases total consuming of definite goods and services because consumers learn on how advantageous definite commodities are in comparison to others. This is represented as H0: µ1> µ2, and the alternate hypothesis is H1: µ1< µ2. The tertiary research question is how does advertisement affect goods and services of a given organization? The null hypothesis for this research question is that advertisement increases the total purchased goods and services of an organization because through it, consumers tend to learn the importance of definite commodities hence increasing their demand, which does not happen for organizations that do not advertise. This is represented as H0: µ1> µ2, and the alternate hypothesis is H1: µ1< µ2. Method and Technique Use In collecting my research data, I will apply dissimilar data collection methods, which include; use of questionnaire and interviews. I will use both closed and open-ended questionnaires. Then clarify all questions to interviewees in order to elude misinterpretations. Thereafter, allow them to express their views without any form of biases. In addition, I will conduct personal interviews with the organizations managers’ while public interviews with other business organization workers. Finally, I will conduct personal observation through observing the progress of all companies that conduct advertisement and those that do not. I will apply multistage sampling technique because it will enable me in collecting large amount of data representing all the companies that advertise their products and those that do not. I will randomly choose the companies that my research will base on all over U.S hence balancing and getting accurate results of my study. After the data has been collected, the technique used in analyzing the data will be a two-tailed t-test that will determine the difference in the means for the two groups of organizations. For each of the three hypotheses, there are two groups of data, those that represent organizations advertise and those that do not advertise. Data Analysis As already stated, the data analysis for the three hypotheses will be done used a two-sampled t-test. The data is presented in the appendix of this paper. Hypothesis 1: Advertisement increases the total customers, retains them and increases the total sales of goods and services for a firm that uses advertising. Null hypothesis: H0: µ1> µ2 Alternate Hypothesis: H1: µ1< µ2 t-Test: Paired Two Sample for Means Hypothesis 1   Advertise Do Not Advertise Mean 143.7 72.8 Variance 575.5666667 449.5111111 Observations 10 10 Pearson Correlation 0.485687649 Hypothesized Mean Difference 0 df 9 t Stat 9.729791155 P(T Read More