the impact of advertising on sales improvement

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ABSTRACT This study examines the impact of advertising on sales improvement in TIGO RWANDA Ltd . To assess that aim, the researchers used primary data where questionnaires were used to collect data from respondents. On the other hand, secondary data were obtained from various universities’ libraries, TIGO website and others. From findings, data were treated statistically with means, standard deviation and coefficient of variation. The results obtained showed that advertising has a positive impact on sales improvement. Implementation of a strong advertising policy in Tigo Rwanda Ltd can only be sustained when there a strong partnership and collaboration among employees; managers and administration committee at different positions and with awareness and full commitment. i

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ABSTRACT

This study examines the impact of advertising on sales improvement in TIGO RWANDA Ltd .

To assess that aim, the researchers used primary data where questionnaires were used to collect

data from respondents. On the other hand, secondary data were obtained from various

universities’ libraries, TIGO website and others. From findings, data were treated statistically

with means, standard deviation and coefficient of variation.

The results obtained showed that advertising has a positive impact on sales improvement.

Implementation of a strong advertising policy in Tigo Rwanda Ltd can only be sustained when

there a strong partnership and collaboration among employees; managers and administration

committee at different positions and with awareness and full commitment.

i

Date

APPROVAL

This research project entitled “IMPACT OF ADVERTISING ON SALES

IMPROVEMENT EVIDENCE FROM TIGO RWANDA 2010-2011” written and submitted

by NYANDWI Eric and HORANIMANA Desire, in partial fulfillment of the requirements for

the degree of BACHELORS DEGREE OF BUSINESS ADMINISTRATION IN

ACCOUNTING is hereby accepted and approved.

Mr.HABIMANAGATOYA Samuel

Supervisor

ii

DEDICATIONS

From Eric NYANDWI

To

My lost Parents; MUSONI Francois and MUKANKUSI Collette;

My brother NDATIMANA Etienne;

My uncles NZABAGAMBA Innocent

From Desire HORANIMANA

To

My Parents; BIGIRIMANA Jean Sauveur and MUKANKUSI Marie Marguerite;

My brother IRAKIZA Jean Paul;

My Sisters NYIRASAFARI Jeanne; UWERA Denyse; IGABE Dharie

iii

TABLE OF CONTENTSABSTRACT...................................................................................................................................................................I

APPROVAL.................................................................................................................................................................II

DEDICATIONS..........................................................................................................................................................III

TABLE OF CONTENTS...........................................................................................................................................IV

LIST OF ABREVIATIONS AND ACRONYMS...................................................................................................VII

ACKNOWLEDGEMENT......................................................................................................................................VIII

CHAPTER 1..................................................................................................................................................................1

INTRODUCTION....................................................................................................................................................1Background of the Study....................................................................................................................................2

Statement of the Problem...................................................................................................................................3

Research Questions............................................................................................................................................4

Purpose of the Study..........................................................................................................................................4

Significance of the Study...................................................................................................................................4

Justification of the Study....................................................................................................................................5

Conceptual Framework......................................................................................................................................6

Delimitations and Limitations............................................................................................................................6

Definition of key Terms.....................................................................................................................................7

2. LITERATURE REVIEW.....................................................................................................................................8Components of Advertising...............................................................................................................................9

Features of Advertising......................................................................................................................................9

Objectives of Advertisement............................................................................................................................11

Characteristics of Advertisement.....................................................................................................................13

Types of Advertising........................................................................................................................................14

Competitive Advertisement.............................................................................................................................16

Sales and Advertising.......................................................................................................................................17

Increasing Sales by Advertisement..................................................................................................................17

CHAPTER 3................................................................................................................................................................20

3. RESEARCH METHODOLOGY.......................................................................................................................20Research Design...............................................................................................................................................20

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Population of the Study....................................................................................................................................21

Sample and Sampling Techniques...................................................................................................................21

Source of Data..................................................................................................................................................21

Research Instruments.......................................................................................................................................22

Statistical Treatment of Data............................................................................................................................23

Ethical Considerations.....................................................................................................................................25

4. PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS..................................................26Characteristics of Respondents........................................................................................................................26

Customers’ responses on advertising of Tigo Rwanda Ltd.............................................................................31

Customers ‘responses on sales improvement of Tigo Rwanda Ltd.................................................................33

Employees’ perceptions on advertisement of Tigo Rwanda Ltd.....................................................................35

Employees’ perceptions on sales improvement of Tigo Rwanda Ltd..............................................................37

5. SUMMARY, CONCLUSIONS AND RECOMMANDATIONS......................................................................42Summary..........................................................................................................................................................42

Conclusions......................................................................................................................................................44

Recommendations............................................................................................................................................44

REFERENCES......................................................................................................................................................46

APPENDICES.............................................................................................................................................................47

LIST OF TABLES

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Table

1. Evaluation of mean…………………………………………………………………...23

2 . Evaluation of standard deviation……………………………………………………..24

3. Identification of customers…………………………………………………………....27

4. Identification of Employees…………………………………………………………..29

5. Customers’ responses on advertising of Tigo Rwanda Ltd……………...……………31

6 Customers’ responses on sales improvement of Tigo Rwanda Ltd…………………....33

7.Employees’ perceptions on advertisement of Tigo Rwanda Ltd………………………35

8. Employees’ perceptions on sales improvement of Tigo Rwanda Ltd…………………37

9. Amount spent and received 2010-2011………………………………………………40

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LIST OF ABREVIATIONS AND ACRONYMS

Ad: Advertising

AUCA:Adventist University of Central Africa

C.V: Coefficient of variation

FARG :Fonds d’Assistance aux Rescapés du Génocide

Ltd: Limited

µ: Means

r: Correlation

SPSS: Statistical Package for Social Sciences

σ: Standard deviation

Σ: Summation

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ACKNOWLEDGEMENT

It is a pleasure for the researchers to express our thanks to the Almighty God who

provided everything to enable the researchers complete this project report. We are very grateful

to our parents for their kindness showed us during our studies. Your support is not forgotten,

may Lord bless you forever. This work would not have been possible without assistance and

contribution of hard working people who helped us to do our research and resolve problems

related to it.

Our thanks go to all staff and lectures in the department of accounting and management

at the Adventist University of Central Africa (AUCA), for all they have done for us, their

unlimited efforts in their works that were important to us and have helped us so much to finish

this degree program. Ourthanks also go to our family members who always have been caring,

assisting and advising us all along our life.

Our sincerely gratitude is addressed to our Advisor Mr. Samuel GATOYA whose

guidance, encouragement during the period are indispensable for the successful completion of

our work May Lord bless you forever. We are thankful to the authority and employees from

TIGO RWANDA LTD for allowing and facilitating us to conduct the research in their

institution.

Finally, thanks to our friends and classmates who helped us physically and their moral

support was a paramount importance. Our sincere recognition goes to the government Rwandan

through Funds d’Assistance aux Rescapés du Génocide (FARG) that sponsoring our studies.

Thank you very much, May God Almighty bless you all!

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CHAPTER 1

INTRODUCTION

The business world is very competitive and each business must seek ways of getting that

extra edge. The question is not so much whether a business can afford to advertise but whether it

cannot afford to advertise and its impact on sales. To succeed, business and its products must

be put before prospective buyers because they are not going to be looking around to find one’s

business. It is therefore all about putting the business forward and telling them who you are,

where you are and what you can do for them.

Advertisingisanypaidformofnon-personalcommunicationaboutan

organizationoritsproducttoatargetaudiencethroughamass/broadcast medium by anidentified

sponsor. It should be observed thatforany promotional activityto be calledadvertisement itmust

bepaid for. Thisthesishowever,centersontheimpactofadvertisingonthesales volume and i t s

improvement ( McHugh2000).

Thisworkshedlightonhowadvertisingcan reallyaffectaconsumer’s

buyingdecisionsinagrowingeconomylike thatof Rwanda

andhowsuccessfuladvertisingcankeepbusinessesgoing even in themidst atoughcompetition.

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Background of the Study

The argument to advertise seems to be apart of human nature evidenced since ancient

times. One of the earliest means of advertising wastheuse of signs. Early crafts menu sedsigns to

advertise their good sandsome traders like the Phoenicians planted commercial messages on

prominent rocks. They were among the forerunners of modern day advertising(Keller,2005).

Advertising became a big business, offering many different jobs in advertising agencies

and the marketing section. The use of the media, like newspapers, television, direct mail, radio,

magazines, outdoor signs and of course the Internet made this growth possible. It is a form of

transporting information to the consumer, but which does not only have positive sides. There are

many critical aspects about it, like persuading people to doing unhealthy things, like smoking,

or producing special stereotypes everybody tries to follow. Nevertheless, advertising has

become international, since producers and companies try to sell their products on a globalized

market in almost every corner of the world. It is therefore not surprising to see a big sign for

Coca Cola in third world countries (Ferguson. 2003).

There are different aspects of advertising, including its history and development as

well as new approaches and the methods used. Today advertising is closely related to integrate

marketing communications in many respects. While integrated marketing communications

involves a massage dealing with buyer and seller relationships advertising consist of paid non-

personal communication through various Medias with the purpose informing or persuading

members of particular audience. Advertising is used by marketers to reach target markets with

massage designed to appeal to business firms. While the ability of the Internet to make every

marketer a global marketer has become a truism. America remains home to most of the world’s

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leading advertisers.

Advertising agencies today are highly specialized companies which employ a large

number of people in a variety of business and creative skills, including advertising and marketing

specialists, designers, copy writers, artists, economists, psychologists, researchers, media

analysts, product testers, librarians, accountants, bookkeepers, and mathematicians(Ferguson.

2003).

The vision of TIGO is the Creation of a world where mobile services are affordable,

accessible and available everywhere and to all and the missionis providing

affordable,accessibleand Available services, good coverage and ease of purchase & use.

Statement of the Problem

In a growing economy such as Rwanda, it is often very difficult to have a regular and

consistent increase in the sales volume of a product because of the socio-economic instability in

the country which directly affect the standard of living and the purchasing power of the

consumers. The problem here is not the living standard but the increase in sales due to

advertising program of Tigo in a Rwanda telecommunication market competition as a new comer

(Telecommunication Company).

Research Questions

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What is the perception of respondents on advertising of TIGO?

What is the perception of respondents on sales improvement in TIGO?

What is the impact of advertising on sales improvement?

Purpose of the Study

The purpose of this study is to learn about the importance of advertising on Tigo Rwanda Ltd

for the impact on its sales.

Significance of the Study

The study is important to the following people:

To the researcher: The researcher benefits from knowledge and experience gained during the

research, especially the impact of advertising on sales improvement that has on Tigo Rwanda Ltd

products and services. Also, the study enables him to fulfill his academic duty as it is required at

the end of higher education.

To the company: The findings help the studied firm and other companies to appreciate the need

of marketing, especially the consumer and marketing research, in order to meet the consumer

needs and become competitive.

To the society and other researchers: This study can be useful to students and other people

interested in marketing impact especially advertising and consumer attitude towards locally

telecommunication companies to gain wider knowledge. Also, the study helps the society as it is

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expected that Tigo Rwanda Ltd will improve the quality of products and services produced or

change the mentality of consumers through marketing.

Justification of the Study

According to the observations made by the researchers, sales improvement is usually

measured by financial statements position, employee performance and other criteria.

Observations made show that advertising is ignored by researchers despite its importance. The

current study justifies its existence in measuring the impact of advertising on sales improvement.

Conceptual Framework

Independent Variable Dependent variable

ADVERTISING SALES IMPROVEMENT

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Print Media Audience

- Newspaper - Number of customers

- Magazines - New customers engaged

- Billboards  Financial statements

Broadcast Media - Sales

- Radio - Advertising Budget

- Television

Campaign expenditures Products and Services

- Promotion (Prizes, Gifts) - Products and services

Delimitations and Limitations

Similartoanyresearch,thisstudyhasseveralcharacteristicsthatlimitthe

generalizationofitsfindings.Thereweresomeproblemsincollectingand

collatingthedistributedquestionnairesontimebecauseoftheattitudesofrespondents.Secondly,alackof

fundmade itverydifficulttotakethe

questionnairetotherespondentspersonally.Somequestionnaireswerenot adequatelycompleted

either.

Tigo Rwanda ltd did not facilitate the researchers to access data as it were expected. The access

to the data is almost restricted to outsiders and it is remained the property of the organization.

Definition of key Terms

Impact:impression of one thing on another(Murcko, 2011).

6

Advertising: Is a form of communication used to encourage or persuade an audience (viewers,

readers or listeners; sometimes a specific group of people) to continue or take some new action.

Most commonly, the desired result is to drive consumer behavior with respect to a commercial

offering, although political and ideological advertising is also common. The purpose of

advertising may also be to reassure employees or shareholders that a company is viable or

successful.

Sales: Is the exchange of a commodity for money. The action of selling something (Bennet,

2000).

Improvement: addition or change which adds value to something(Murcko, 2011).

CHAPTER 2

7

2.LITERATURE REVIEW

It has been wrongly assumed that the advertising function is of recent origin. Evidences

suggest that the Romans practiced advertising; but the earliest indication of its use in this country

dates back to the middle Ages, when the use of the surname indicated a man’s

occupation. The next stage in the evolution of advertising was the use of signs as a visual

expression of the evolution of the tradesman’s function and a means of locating the sources of

goods. This method is still in common use.

Signs on stores and in prominent places around the city and notices in printed matters

were sometimes used. When customers were finally attracted to the store and satisfied with the

service at least once, they were still subjected to competitive influences; therefore, the

merchant’s signs and advertisements reminded customers of the continuing availability of his

services. Sometimes traders would talk to present and former customers in the streets, or join

social organizations in order to have continuing contacts with present and potential customers.

As the markets grew larger and the number of customers increased, the importance

of attracting them also grew. Increasing reliance was placed on advertising methods of informing

about the availability of the products. These advertising methods were more economical in

reaching large numbers of consumers. While these advertising methods were usefulfor informing

and reminding, they could not do whole promotion job. They were used only to reach each

consumer personally (William et al., 2009).

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Components of Advertising

The word advertising originates from a Latin word advertise, which means to turn to. The

dictionary meaning of the term is “to give public notice or to announce publicly”. Advertising

may be defined as the process of buying sponsor-identified media space or  time in

order to promote a product or an idea (Bennet, 2000).

The American Marketing Association defines advertising as “any paid form of non-

personal presentation and promotion of ideas, goods and services by an identified sponsor.

Advertising is non-personal as it is not directed to any single individual. Secondly, the sponsor

i.e. the manufacturer or producer is identified as his name and address is always contained in an

advertisement and he also bears all the cost involved in the process. Thirdly, the producer can

also promote an idea regarding quality, design, packing and pricing, etc. of any product or

service Thus, we can say, advertising consists of all activities involved in presenting a sponsored

message regarding a product, service or an idea. The following is a figure of a model of

advertising.

Features of Advertising

By looking into the meaning and definition of advertising from different authors, we can

sum up the following features of advertising. Non-personal presentation of message in

advertising there is no face-to-face or direct contact with the customers. It is directed to the

prospective buyers in general.

Kotler, (2000) says that paid form of communication-In advertising the manufacturer

communicates with prospective customers through different media like, newspapers, hoardings,

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magazines, radio, television, etc. He has to pay certain amount for using some space or time in

those media. Promotion of product, service or idea Advertisement contains any message

regarding any particular product, service or even an idea. It makes people aware about the

product and induces them to buy it. Sponsor is always identified: The identity of the

manufacturer, the trader or the service provider who issues advertisement is always

disclosed.Communicated through media: Advertisements are always communicated through use

of certain medias. It is not necessary that there will be just one medium. All the media may also

be used. Above are the features of advertising, let look at what should be included in advertising.

This is what is Included in Advertising:

The information in an advertisement should benefit the buyers, It should give them a

more satisfactory expenditure of their money,it should also suggest better solutions to their

problems. The content of the advertisement is within the control of the advertiser, not the

medium and advertising without persuasion is ineffective. The advertisement that fails to

influence anyone, either immediately or in the future, is a waste of money, the function of

advertising is to increase the profitable sales volume.

Advertising includes also the following forms of messages:The messages carried

in newspapers and magazines; on radio and television broadcasts;circular of all kinds, (whether

distributed by mail, by person, through tradesmen, or by inserts in packages); dealer help

materials, Window display and counter, display materials and efforts Store signs, motion pictures

used for advertising, novelties bearing advertising messages and signature of the advertiser, label

stags and other literature accompanying the merchandise (Kotler 2000).

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Objectives of Advertisement

The main purpose of advertising is to communicate massage or information to the

customers. But while communicating such message or information it also serves beneficial

purposes for the sponsor or advertiser. Advertising is the promotion of a company's products and

services carried out primarily to drive up sales of the products and services (Richardson, 2004).

It is also done to build a brand identity and communicate changes in old products or

introduce new product/services to the customers. Advertising has become an essential element of

the corporate world and hence companies allot a considerable amount of resources towards their

advertising budget. Advertising plays a major role in modern life. It shapes the attitudes of the

society and the individual and inevitably influences customer behavior. The customer has to

contend with a huge amount of information and be able to make a choice, draw conclusions and

make important decisions (Richardson, 2004).

According to Hawkins (2002); there are several reasons for advertising, some of which

are as follows: Increasing the sales of the product or service, creating and maintaining a brand

identity or brand image, communicating a change in the existing product line, introduction of a

new product or service, to assist salesman, to retain existing customers.

The most important task for a business advertising itself is to present its product in such a

manner that the whole environment around the buyer turns into a positive emotional stimulus.

The main goal of advertising a certain product or service is to attract the customer’s attention and

analyze the impact of advertising on customer behavior.

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Customers are valuable assets for the enterprise, but they can be costly to acquire and

retain. The customers’ differences in the course of their relationship with the enterprise are

reflected in their contributions to the enterprise value throughout their tenure. To the extent that

different acquisition strategies bring different “qualities” of customers, the acquisition effort has

an important influence on the long-term profitability of the enterprise (Kotler et al. 2003)

Indeed, both practitioners and scholars have emphasized that enterprises should spend not

to acquire just any customer but rather the “right” kind of customer because advertising plays a

very important role in this field. Advertisers pay a particular attention to the customer in order to

attract and retain him/her.

According to Kotler et al. (2003), both the businesses and individual sellers should ask

themselves what should the advertising of their products and services be and what impact on the

customer should it make. Therefore, these aspects should be anticipated and evaluated and the

following questions answered: what should the ad be; what should the emphasis be put on; what

visual design should be chosen; what psychological impact is it going to have on the customer?

Research literature pays most attention onto the ad creation process itself, the potential

users of the product or service advertised the stages of advertising impact are tackled;

psychological aspects influencing customer behavior were analyzed however a further thorough

and complex research is necessary. Kotler et al. (2003) emphasize that businesses advertising

their merchandise should pay attention not to the amount of money spent but to the process of

advert creation, the product of which, therefore is the advert itself making impact on the

customer.

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Furgason (2003) states that in the centre of advertising lies the potential product

advertised and the user of the service. In order to acquire the product advertised, the customer

has to get through” the stages of the ad impact The impact of advertising on the market is

especially large, as advertising serves as a channel of information dissemination and the

presumption for the market feedback. In today’s market the range of products and services is

especially large, they are all impossible to remember or purchase.

The main goal of advertising a certain product or service is to attract the customer’s

attention and analyze the impact of advertising on the customer behavior, which is determined by

a number of cognitive, emotional and behavioral aspects. In the centre of advertising is the

customer, whose psychology is determined by numerous aspects and advertising itself, which

aims at arousing the customers wish to acquire the product advertised, and most importantly, at

achieving the act of purchasing the product (Dolak, 2003).

Characteristics of Advertisement

There are three broad dimensions that characterize great advertisements Strategy,

creativity, and execution. Every great advertisement is strategically sound. In other words, it is

carefully directed to a certain audience, it is driven by specific objects, its message is crafted to

speak to that audience's most important concerns, and it is run in media that will most effectively

reach that audience. The measure of an advertisement's success is how well it achieves its goals,

whether they are increased sales, memo ability, attitude change or brand awareness (Hawkins,

2002).

The creative concept is a central idea that gets the attention and prevails in the consumer's

mindset. A concern of creative thinking drives the entire field of advertising. Planning the

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strategy calls for creative problem solving, research efforts are creative; the buying and placing

of the advertisements in the media (newspapers/television) are creative. Good advertisers know

that how a message is conveyed is just as important as what is being said in the advertisement

(Blackwell, 2005).

What is said comes from the strategy; whereas how the message is conveyed is a product

of creativity and execution. Thus, great advertisements are those that are strategically sound,

have an original creative concept, use exactly the right execution for the message.

Types of Advertising

Referred to Kotler & Keller (2005) Thus, there are several reasons for advertising.

Similarly, there exist various media which can be effectively used for advertising. indicate the

various categories or types of advertising:

Print Advertising: (Newspapers, Magazines, Brochures, Fliers, Print media) has

always been a popular advertising option. Advertising products via newspapers or magazines is a

common practice. In addition to this, the print media also offers options like promotional

brochures and fliers for advertising purposes. Often, newspapers and magazines sell the

advertising space according to the area occupied by the advertisement, the position of the

advertisement in the publication (front page/middle page, above/below the fold), as well as the

readership of the publications. For instance, an advertisement in a relatively new and less popular

newspaper will cost far less than an advertisement in an established newspaper that has a high

readership. The price of print adverts may also depend on quality of the paper and the

supplement in which they appear.

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Outdoor Advertising: (Billboards, Kiosks, Trade) shows and Events it makes use of

several tools and techniques to attract the customers outdoors. The most common examples of

outdoor advertising are billboards, kiosks, and also events and trade-shows organized by the

company. Billboard advertising is very popular. However it has to be really terse and catchy in

order to grab the attention of the passersby.

Kiosks not only provide an easy outlet for the company's products but also make for an

effective advertising tool to promote the company's products. Organizing special events or

sponsoring them makes for an excellent advertising opportunity and strategy. The company can

organize trade fairs, or even exhibitions for advertising their products. If not this, the company

can organize several events that are closely associated with their field. For instance a company

that manufactures sports utilities can sponsor a sports tournament to advertise its products.

Broadcast Advertising: (Television, Radio and the Internet Broadcast advertising) is

a very popular advertising medium that constitutes several branches like television, radio or the

Internet. Television advertisements have been very popular ever since they were introduced. The

cost of television advertising often depends on the duration of the advertisement, the time of

broadcast (prime time/lull time), sometimes the show on which it will be broadcast, and of

course, the popularity of the television channel itself. The radio might have lost its charm owing

to new age media. However it remains the choice of small-scale advertisers. Radio jingles have

been very a popular advertising medium and have a large impact on the audience, which is

evident in the fact that many people still remember and enjoy old popular radio jingles.

Covert Advertising:(Advertising in Movies)Covert advertising is a unique kind of

advertising in which a product or a particular brand is incorporated in some entertainment and

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media channels like movies, television shows or even sports. There is no commercial advertising

as such in the entertainment but the brand or the product is subtly (or sometimes evidently)

showcased in the entertainment show.

Public Service Advertising : (Advertising for Social Causes) Public service advertising

is a technique that makes use of advertising as an effective communication medium to convey

socially relevant messages about important matters and social causes like AIDS, energy

conservation, political integrity, deforestation, illiteracy, and poverty and so on. David Ogilvy

who is considered to be one of the pioneers of advertising and marketing concepts had reportedly

encouraged the use of the advertising field for a social cause. Ogilvy once said, "Advertising

justifies its existence when used in the public interest - it is much too powerful a tool to use

solely for commercial purposes". Today, public service advertising has been increasingly used in

a non-commercial fashion in several countries across the world in order to promote various

social causes (Kotler & Keller, 2005).

Each of the advertisement types mentioned has its own sub-types and rates of

effectiveness. It is the job of advertising department to figure out which type of which medium is

the best and the most feasible for the company. The point to be made here is that the ultimate

objective of the business advertiser is to make sales profits. To achieve this objective, customers

must purchase and repurchase the advertised product.

Competitive Advertisement

Competitive advertising interference arises when viewers of advertising for a focal brand

are also exposed to advertising messages for competing brands within a short time period; say

one week for TV advertising.

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Busari (2002) says that the results show that competitive interference effects are strong to

sales improvement. When one or more competing brands advertise in the same week as the focal

brand, the advertising elasticity diminishes for the focal brand. The rate of decrease depends on

the number of competing brands advertising in a particular week. We are able to derive optimal

advertising levels for the brands within a category so that they all have the maximum sales

response from advertising.It transpires that the current level of television advertising within the

two categories is much higher than this optimum level, indicating that these grocery brands are

likely to be over advertising at present. Curtailing advertising for all the brands would increase

the response to advertising for each of them.

Sales and Advertising

Asisgenerallyknownthattheroleplayedbyadvertisingisincreasingthe salesvolume

ofanycompany’sproductatanypointintimecannotbe

overemphasized.Asamatterofreality,ithascontributedimmenselyto increasing

growthofmanycompaniesinvariousindust r ies . This is becauseitgoesalong way

inplacingpositiveimageaboutthecompanies’

productsinthemindofpotentialconsumers;thiscanalsoinfluencetheir buyingbehavior(Busari,2002).

Increasing Sales by Advertisement

Selling Direct: some products can be sold directly from an ad or direct mail solicitation. This is

especially true now that the Internet has made it possible to buy products on line with a credit

card. Selling direct works best for products that have clearly defined benefits and are not

available through retailoutlets. It also works well for supplies and other commodity items that

17

can be grouped by category and offered in a catalog format. There are literally millions of

websites using this approach.

Generate Sales Leads: For smaller firms with limited budgets the best use of marketing

communications is to generate immediate business leads that can be converted to sales. This type

of ad encourages response by making a free offer of some type - usually a free white paper, a

free initial consultation, free estimate, free evaluation of a problem, or other free information.

Sometimes leads are overlooked by busy advertising managers, but when handled and funneled

properly to the sales team, they can add tens of thousands, even hundreds of thousands of cash to

a company's gross sales each year.

Educate Your Prospects: Advertising can communicate information about your product, your

service, your business philosophy, your way of doing business, or your unique approach to

solving the customer's problems. Advertising would highlight this key difference, explain why it

was chosen and how it works, and stress the benefits of this type of network (better performance,

higher reliability, greater effectiveness, lower operating costs, etc.) to the reader.

Service businesses are often successful with an even purer educational approach, in which

advertising tells the reader about a subject in general, only briefly referring to the firm's

particular services(Busari,2002).

Hawkins(2002) state that one successful ad, for a mortgage finance company, had the

headline, "Nine questions to ask before you chose a mortgage or refinance firm - with a good

answer to each question." The copy was filled with facts about the methods and techniques used

to find the best lenders to finance a home purchase. Readership was high because the ad

presented valuable information of immediate use to the reader. Response was high because, by

18

giving this information instead of a blatant sales pitch, the copy convinced readers that the

advertiser was someone who could help them.

Create Awareness: There are so many products, services and ideas on the market today that a

big part of an advertiser's job is to simply make people aware that you offer a particular solution

to their problems.

Establish Credibility: Establish credibility with information sources just like this one. By

providing some web editorial on how to do effective advertising, we build credibility with our

clients that need these types of services. Providing helpful information to potential clients that

helps them make better buying decisions is a good way to begin building a relationship with a

future customer.

Keep Your Name in Front of the Public: Repeat advertising in select media can help build

familiarity with your company's name and establish your identity. In order to convince a

customer to do business with you, you must first cross their "threshold of consciousness." The

first time a prospect sees you, they may not recognize you. The second time, they might think

they have seen your name before. But on the third time, most prospects will begin to remember

your name and what your company stands for.

Advertising costs money. And building awareness through the use of paid advertising can get

expensive quickly. The most cost effective way to keep your name in front of customers is

through the combination of advertising and free publicity.

19

CHAPTER 3

3.RESEARCH METHODOLOGY

According to Adams (2007), methodology refers to a set of methods and principles that

are used when studying a particular subject or doing a particular kind of work. It explains in

details the sampling methods, the methods used to collected data related to the research topic,

and the methods used to process analyze and interpret the collect data, research design,

population and sample size and ethical considerations.

Research Design

According to Donald & Schindler (2006), research design is a plan and structure of

investigation so conceived as to obtain answers to research questions. The research design

constitutes the plans for the collection, measurement and analysis of data. Participants answered

questions administered through questionnaire. And the responses have been described. The

examined literature informed the construction of the research instrument used in gathering

reliable and unbiased data.

Therefore describing the respondents and finding the impact between variables will

deepen the understanding and answer the predetermined research questions as mentioned in

chapter one. In this research, a descriptive and correlation study was adapted to investigate the

impact of advertising on sales improvement in TIGO Rwanda Ltd.

20

Population of the Study

According to Adams (2007), population consists of any well-defined set of elements. The

population of this research is composed of employeesof Tigo Ltd marketing department where

the total number of population is 64 and customers using Tigo services living at Nyarugenge

district.

Sample and Sampling Techniques

According to Silverman (2005), a sample size is set of elements selected from a certain

population for investigation purposes.

Thesamplesizeofthisresearchworkreferstothenumberofrespondents to whom thequestionnaire

was administered. Basing on the problem at hand, the limited budget, and the accuracy needed

from data, the researchers chose to use customers (100) and employees of Tigo (64) as sample.

Source of Data

Under this study two types of data were used, primary data which comes from the

respondent and observation of the researcher whereas secondary data collection from different

document where books, reports and publication was used and electronics store information

published by the researcher on interest sources.

According toAdams (2007), there is a number of approaches to gathering your own

original data. A primary data was one in which the data are going to be collected for the first

21

time by the investigators; therefore primary data were those that were collected afresh. In

collection of primary data, we used method of questionnaire.

According to Adams (2007), Secondary data is data collected by someone else and there

is a great deal available to you from books, libraries and on web. This data is used as the main

sour for our research or supplement to data we collect. In this respect data was revealed from

documentary review especially textbooks, internet sources, audit reports and any other

documents that was deemed necessary.

Research Instruments

Thedataneededforthisthesisworkwascollectedthroughtheuseof

primaryandsecondarysources.Awelldesignedquestionnairewasused. The questionnairewere

administered to 164 respondents includingstaffof Tigo Rwanda Ltd and

customersconstitutingthesample size. During the period of this research, the administration

methods used for collecting data was questionnaire and also the researchers have been used road

transportation to distribute questionnaire to the respondents.

Questionnaire: The researcher was use questionnaire to collect information related to the

research project, based on the data needed from the field.

According to Buglear et al. (2010), questionnaire is a general term to include all

techniques of data collection in which each person is asked to respond to the same set of

questions in a predetermined order. By using Likert-scale where: 4= strongly agree, 3=agree, 2=

disagree and 1= strongly disagree and multiple choice questions where respondents are called to

choose the right and comfortable answers accordingly.

22

Statistical Treatment of Data

Statistics is a tool to help humans process, summarize, analyze, and interpret data for the

purpose of making better decision in an uncertain environment. It certainly permits insights and

understanding (sense of the data) by using Statistical Package for Social Sciences (SPSS).

Mean (M) is the best known and frequently used measure of the center of a distribution

of a quantitative variable is well known as the mean. The mean refers to “averaging”;

adding up the data points and dividing by how many there are (Aggresti, 2009). By the

formula,M=1

n∑i=1

nxini

Table 2: Evaluation of mean

Source :(Aggresti , 2009)

23

Mean Evaluation

1- 3.49 Weak

3.50 -5 Strong

Standard deviation (σ): The standard deviation helps to measure how far or near from the

mean. A measure of the center is not enough to describe a distribution well. It tells the researcher

about the spread of the data. In summary, we have σ is typical distance from the mean, larger

values of σ represent greater spread, and σ =0 means that all observations take the same value.

x̄− σ, denotes the value one standard deviation below the mean. x̄+ σ, denotes the value one

standard deviation above the mean, and x̄± σ, denotes the values that are one standard deviation

from the mean in either direction. By formula, Standard deviationσ=∑i=1

n

√ 1n

( x−µ)2

Table 3: Evaluation of standard deviation

Standard Deviation Level spreading

σ<1 Homogeneity

σ>1 Heterogeneity

Source:( Aggresti, 2009)

Coefficient of variation: defined as the ratio of the standard deviation to the mean. That

C.V is only used for non-zero mean to ensure if it’s always positive. It is sometimes as

expressed percentage, in which case the C.V is multiplied by 100. A coefficient of

variation is over 15 % represents a big dispersion of data ( Heterogeneity), below 15 % is

a low variation of data ( Homogeneity) . By formula, CV= ❑µ x 100 .

24

Ethical Considerations

In order to conduct our research we had to consider the validity and reliability of

the data collected. We conducted the research ethically by ensuring honesty and

objectivity in data collection, analysis, interpretation, and for inferences we made.

25

CHAPTER 4

4.PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

In this chapter, we have analyzed the data which were collected from TIGO Company

Ltd about the research entitled “Theimpact of advertisement on sales improvement” with case

study of TIGO Rwanda Ltd Headquarter Nyarugenge District, Muhima sector. The data were

argumented the discussions on hypothesis and research questions which we have set in first

chapter of this study and the related theories presented in second chapter.

The data was processed, tabulated and analyzed with the Statistical Package for Social

Sciences (SPSS) then presented in meaningful categories of findings. All answers analyzed were

received from questionnaire during our research study. Their answers permitted to present them

in form of mean, standard deviation, coefficient of variation and correlation coefficient.

Characteristics of Respondents

To analyze the general characteristics of respondents, descriptive statistics was used to

get the general information concerning respondent’s gender, age, qualification, marital status and

experience with Tigo Customers and employees. The respondent’s opinions were analyzed and

interpreted in order to know if advertising has an effect on sales improvement of Tigo Rwanda

Ltd. The respondents (customers) were one hundred (100) and employees worked in Tigo

Rwanda Ltd were sixty four (64). The following tables (4 & 5) give the general information of

respondents characteristics (customers and employees).

26

Table 4: Identification of customers

To analyze the general characteristics of respondents, descriptive statistics was used to

get the general information concerning respondent’s gender, age, qualification andmarital status

of customers. The respondents were hundred (100) customers of TIGO Rwanda Ltd.

Frequency Percentage

Sex Male

Female

Total

63

47

100

63

47

100

Age Below 21 years

Between 22-30 years

Between 31 – 40 years

Between 41 – 50 years

Above 51 years

Total

10

27

36

15

12

100

10

27

36

15

12

100

27

Marital status

Qualification

Single

Married

Divorced

Widows

Total

Primary

Secondary

Bachelor

Total

34

54

1

11

100

43

36

21

100

34

54

1

11

100

43

36

21

100

Source: Primary data, January 2013

As represented in table 4, researchers had to meet male and female and shows that

63 % ( 63% respondents) are male but 37 % ( 37% respondents) are female. Starting the

above results, the Tigo Ltd has to be sensitized about the role of woman in their

development and reaching the objectives.

Referring to marital status of Tigo customers; results show that 34 % (34

respondents) are single, 54 % (54%respondents) are married, 1% (1 respondent) is

divorced while 11 % (11 respondents) are widows. Referring to education qualification of

Tigo customers where 43 % have primary level; 21 % (21 respondents) have the bachelor

degree while 36 % ( 36 respondents) have qualification of secondary level.

28

Age is considered as an important characteristic of an individual and were

required to indicate their age in the following categories below 21 years; between 22-30

year between 31 – 40 years ; between 41 – 50 years and above 51 years. It shows that 10

% ( 10 respondents) are aged below 21 years old; 27 % ( 27 respondents) are between 22

and 30 years; 36 % ( 36 respondents ) are aged between 31 and 40 years; 12 % (12

respondents) are aged between 41 and 50 years while 11 % ( 11 respondents) are aged

above 51 years old.

Table 5: Identification of Employees

To analyze the general characteristics of respondents, descriptive statistics was used to

get the general information concerning respondent’s gender, age, qualification, marital status and

experience of employees. The respondents were sixty four (64) employees work in TIGO

Rwanda Ltd.

Frequency Percentage

Sex

Male

Female

Total

28

36

64

43.7

56.3

100

29

Age

Marital status

Qualification

Between 21 – 30 years

Between 31 – 40 years

Above 41 years

Single

Married

Total

Secondary

Bachelor

Masters

Total

17

31

12

38

26

64

21

38

5

64

26.5

48.8

18.7

59.3

40.7

100

32.8

59.4

7.8

100

Source: Primary data, January 2013

Table 5 represents the characteristics of employees of Tigo Rwanda Ltd. 36 % of

64 respondents are female but 28 % of 64 respondents are male. The respondents were

required to indicate their age accordingly between 21 – 30 years; between 31 – 40 years a

and above 41 years. 26.5 % ( 17 respondents) are aged between 21 and 30 years; 48.8 %

are ( 31/64 respondents) while 18.7 % ( 12/64 respondents ).

About marital status of Tigo’employees, results indicate that 59.3 % (38

respondents) are single but 40.7 % ( 26 respondents) are married. The above results

indicate that the majority are single which contribute to the development of Tigo Rwanda

Ltd.

30

Concerning with education qualification of Tigo’employees where 32.8 % ( 21/64

respondent) have secondary level; 59.4 % ( 38/64 respondents) have the bachelor degree

while 7.8 % (5 respondents) have qualification of master level. The majority of

Tigo’employees have bachelor degree which gives performance and sales improvement

of Tigo through its knowledge.

Customers’ responses on advertising of Tigo Rwanda Ltd

Advertising is a form of communication used to encourage or persuade an audience to

continue or take some new action. The following table gives details on respondents ‘opinions on

advertising in TIGO.

Table 6: Customers’ responses on advertising of Tigo Rwanda Ltd

Questions Answers Frequency Percentage

From which source you came to know about Tigo

Advertisement

Hoardings

Newspapers

Publicity

Total

14

33

34

19

100

14

33

34

19

100

What makes you unaware about Tigo

Less advertisements

Less publicity

Others

Total

45

47

8

100

45

47

8

100

31

Why you are not using Tigo services

Lack of awareness

High prices

Poor services

Poor network

Total

1

4

33

62

100

1

4

33

62

100

Source: Primary data, January 2013

Table 6 indicates the respondents (customers) perceptions on advertisement of

Tigo. For question one about which source you came to know about Tigo; 14 % answered

that they know Tigo through advertisement; 33 % of respondents asked answered that

they knew Tigo through hoardings; 34 % answered that they knew Tigo through

newspapers but 19 % of them was through publicity.

For question of what makes them unaware about Tigo; 45 % of customers

answered that they are unaware of less advertisements made; 47 % of them answered that

less publicity made to be unaware but the minority of 8 % are the others views.

For question three entitled why they are not using Tigo services frequently; 1 %

of customers answered that it is a lack of awareness; 4 % answered that it is because of

high prices; 33 % said that poor services makes them not using Tigo services frequently

but 62 % declared that poor network is the one reason affects the using of Tigo services

frequently.

32

Customers ‘responses on sales improvement of Tigo Rwanda Ltd

Sales improvement refers to addition or change which adds value to sales. The following

table gives details on respondents ‘opinions on sales improvement in TIGO.

Table 7: Customers ‘responses on sales improvement of Tigo Rwanda Ltd

Questions Answers Frequency Percentage

Which of the following services do you use of Tigo

Pre-paid

Post-paid

Total

52

48

100

52

48

100

Which of the service more helpful to you while using Tigo

Call rates

SM service

Network

Total

61

30

9

100

61

30

9

100

For what reason you call at customer care

Information regarding

new schemes

Others queries

Complaining

Total

6

15

79

100

6

15

79

100

Source: Primary data, January 2013

33

Starting the results presented in table 7 reflects customers’ perceptions on sales improvement of

Tigo. Which of the following services do you use of Tigo; 48 % respondents answered that they

use post-paid service while 52 % use pre-paid. The second question is which of the service more

helpful to you while using Tigo; 61 % respondents answered that call rates is helpful service to

them; 30 % respondents chose Sm services while 9 % of the respondents Network is helpful

service to them.

The third question presented in table 7 is about for what reason you call at

customer care; 6 % of the respondents answered that they call for information regarding

new schemes of Tigo; 15 % call for others queries but 79 % of them call for complaining.

34

Employees’ perceptions on advertisement of Tigo Rwanda Ltd

Advertising is a form of communication used to encourage or persuade an audience to

continue or take some new action. The following table gives details on respondents ‘opinions on

advertising in TIGO.

Table 8: Employees’ perceptions on advertisement of Tigo Rwanda Ltd

Assertions Means Standard Deviation

Coefficient of variation

( %)

Comments

Advertising targetincludes everyonein thefirm target

3.55 0.500 14.08 Strong

Homogeneity

Confirmed

Advertising createsproduct differentiation.

3.61 0.492 13.62 Strong

Homogeneity

Confirmed

Selectionof advertisingmedia is of primaryconcern toour organization

Effect of advertising can bechangeasmarketgrow older

No benefitsin advertising programemployed bytheorganization

3.66

3.66

2.42

0.479

0.479

0.498

13.08

13.08

20.57

Strong

Homogeneity

Confirmed

Strong

Homogeneity

Confirmed

Weak

35

Advertising isa powertool capable ofreaching and motivating largeaudiences

No product can survive competition without intensive

advertising

Advertising justifiesitsexistence when itisused intheinterestof

thepublic

General overview

3.55

3.61

3.70

3.47

0.502

0.492

0.460

0.425

14.14

13.62

12.43

14.32

Homogeneity

Unconfirmed

Strong

Homogeneity

Confirmed

Strong

Homogeneity

Confirmed

Strong

Homogeneity

Confirmed

Strong

Homogeneity

Confirmed

Source: Primary data, January 2013

The table 8 shows all variables of employees’ perceptions on advertisement. The

variable had mean of 3.55, standard deviation of 0.500 and confirmed with a coefficient

of variation of 14.08 %, verbally mean interpreted as agree that advertising targetincludes

everyonein thefirm target. The second and seventh variable had mean of 3.61, standard

deviation of 0.492 and confirmed with a coefficient of 13.62 %, verbally mean

interpreted as agree that advertising creates product differentiation of Tigo and no

36

product can survive competition without intensive advertisement .The third variable and

fourth variable had mean of 3.66, standard deviation of 0.479 and confirmed with a

coefficient of variation of 13.08 %, verbally mean interpreted as agree indicated that

selection of advertisingmedia is of primaryconcern toour organization effect/impactof

advertising can bechangeasmarketgrow older.

The fifth variable had mean of 2.42, standard deviation of 0.498 and not

confirmed with a coefficient of variation of 20.57 %, verbally mean interpreted as

disagree indicated that therearebenefitsin the variousadvertising programemployed

bytheorganization. The sixth variable had the mean of 3.55, standard deviation of 0.502

and confirmed with a coefficient of variation of 14.14 %, verbally mean interpreted as

agree indicated that advertising isa powertool capable ofreaching and motivating

largeaudiences of Tigo Rwanda Ltd.

The eighth variable had mean of 3.70, standard deviation of 0.460 and confirmed

with a coefficient of variation of 12.43 %, verbally mean interpreted as agree indicated that

advertising justifiesitsexistence when itisused intheinterestof thepublic. The general

perception of employees had mean of 3.47, standard deviation of 0.424 and confirmed

with a coefficient of 14.32 %, verbally mean interpreted as agree indicated that

advertising lead to sales improvement.

Employees’ perceptions on sales improvement of Tigo Rwanda Ltd

Sales improvement refers to addition or change which adds value to sales. The following

table gives details on respondents ‘opinions on sales improvement in TIGO.

37

Table 9: Employees’ perceptions on sales improvement of Tigo Rwanda Ltd

Questions Means Standard Deviation

Coefficient of variation

( %)

Comments

Advertisingwill increase organizationtargetmarketand

boostsales

3.59 0.495 13.78 Strong

Homogeneity

Confirmed

Advertising programhasnoimpact on

thesalesvolumeoftheir product

2.72 0.453 16.65 Strong

Homogeneity

Not confirmed

Organizationmustconsider their financial statusbefore embarkingon advertisement

Consumer buying attitude can be influenced through

consistent advertising

Lowproductivity isduetoineffective and non-

directional advertising programme

General overview

3.62

3.64

3.75

3.46

0.488

0.484

0.436

0.470

13.48

13.29

11.62

13.76

Strong

Homogeneity

Confirmed

Strong

Homogeneity

Confirmed

Strong

Homogeneity

Confirmed

Strong

Homogeneity

Confirmed

38

Source: Primary data, January 2012

The table 9 indicates perceptions of employees on all variables on sales

improvement. The variable had the mean of 3.59, standard deviation of 0.495 and

confirmed with a coefficient of variation of 13.78 %, verbally mean interpreted as agree

that advertisingwill increase organizationtargetmarketand boostsales of Tigo Rwanda

Ltd. The second variable had mean of 2.72, standard deviation of 0.453 and not

confirmed with a coefficient of variation of 16.65 %, verbally mean interpreted as

disagree indicated that Advertising programhasan impact on

thesalesvolumeoftheproducts of Tigo.

The third variable has the mean of 3.62, standard deviation of 0.488 and

confirmed with a coefficient of 13.48, verbally mean interpreted as agree indicated that

organizationmustconsider their financial statusbefore embarkingon advertisement. The

fourth variable had the mean of 3.64, standard deviation of 0.484 and confirmed with a

coefficient of variation of 13.29 %, verbally interpreted as agree that consumer buying

attitude can be influenced through consistent advertising.

The fifth variable has the mean of 3.75, standard deviation of 0.436 and

confirmed with a coefficient of variation of 11.62 %, verbally interpreted as agree

indicated that lowproductivity isduetoineffective and non-directional advertising

programe. The general perceptions of employees had the mean of 3.46, standard

deviation of 0.470 and confirmed with a coefficient of variation of 13.76, verbally mean

39

interpreted as agree that advertisement has grown sales improvement of Tigo Company

Ltd.

Table 10: Amount spent and received 2010-2011

YEAR

2010 2011

Advertising Budget 215, 262.83$ 302 921.5$

Customer number 529,114 1, 533,367

Sales 15,873,420$ 66,910,560$

Source: Tigo Rwanda Ltd

The above figures show how Tigo Ltd has spent its money through advertising

program and related results at different period. At 2010, advertising budget was an

amount of 215 262.83 $, customers number was 529,114 and sales were an amount of

15,873,420$. Trough an increase of advertising budget in period of 2011 comes from

215 262.83 $ to 302 921.5$; there was an increase of customers up to 1, 533,367 and

66,910,560$ of sales. Above results and respondents’ perceptions analyzed before; It

reflects that advertising program lead to sales improvement of Tigo Rwanda Ltd during

this period of 2010- 2011.

40

Discussion of Research Questions

This study has been conducted based on research question that served as guidelines to the

research objective. The study has three major questions: The first question is what is the

perception of respondent on advertising of Tigo? As it is shown in the results of table 6 and 8

most of the respondents have came to know about Tigo and its products through different forms

of advertising(publicity, hoardings newspapers etc…) that is rated to 100%. On the other side

most responses related to advertising given were rated positively where men and standard

deviation were Strong and homogeneity successively (table 8).

The second question is what is the perception of respondent on sales improvement?

Results on this question are presented in the table 7 and 9 where above 85% of respondents

appreciate call and short message rates offered by Tigo 52% above uses the pre-paid service.

these results show how much sales are improved in Tigo. The third and last research question is

about the impact of advertising on sales improvement where the researchers measured this

impact with the total amount spent onadvertising and sales made in the year 2010; compared

with the amount spent on advertising and sales made by Tigo in the year2011.

The year 2010 spent 215,262.83$ on advertising and made sales of 15,873,420$. A change in

advertising budget in the year 2011(302,921.5$), occurs in a big change of sales made in this

year (66,910,560$).

41

CHAPTER 5

5.SUMMARY, CONCLUSIONS AND RECOMMANDATIONS

This chapter gives the summary of findings, conclusions and recommendations on

the researcher’s findings about: “The impactofadvertising onsales

improvementofabusinessorganizationtaking Tigo Rwanda Ltdas a case study.

Summary

This research study was conducted with

objectivewastodemonstratetheimpactofadvertising onsales

improvementofabusinessorganizationtaking Tigo Rwanda Ltdas a case study. The

respondents were one hundred customers of Tigo (100) and sixty four employees of Tigo

(64) working at Tigo Rwanda Ltd Headquarter at Muhima sector. The research findings

has revealed that, most of employees in different departments of Tigo Ltd and customers

questioned; they confirmed that advertisement have a positive impact on sales

improvement of Tigo Rwanda Ltd as it was presented in chapter four.

Starting to the research questions, what is the perception of respondents on sales

improvement? What is the perception of respondents on Advertisement? The analysis and 42

interpretation of the findings revealed that advertising has an effect on sales improvement

of Tigo Rwanda Ltd.

Table 6 indicates the respondents (customers) perceptions on advertisement of

Tigo. For question one about which source you came to know about Tigo; 14 % answered

that they know Tigo through advertisement; 33 % of respondents asked answered that

they knew Tigo through hoardings; 34 % answered that they knew Tigo through

newspapers but 19 % of them was through publicity.

The third question presented in table 7 is about for what reason you call at

customer care; 6 % of the respondents answered that they call for information regarding

new schemes of Tigo; 15 % call for others queries but 79 % of them call for complaining.

The second and seventh variable presented in table 8 had mean of 3.61, standard

deviation of 0.492 and confirmed with a coefficient of 13.62 %, verbally mean

interpreted as agree that advertising creates product differentiation of Tigo and no

product can survive competition without intensive advertisement .The third variable and

fourth variable had mean of 3.66, standard deviation of 0.479 and confirmed with a

coefficient of variation of 13.08 %, verbally mean interpreted as agree indicated that

selection of advertisingmedia is of primaryconcern toour organization effect/impactof

advertising can bechangeasmarketgrow older.

The third variable on table 9 has the mean of 3.62, standard deviation of 0.488

and confirmed with a coefficient of 13.48, verbally mean interpreted as agree indicated

that organizationmustconsider their financial statusbefore embarkingon advertisement.

The fourth variable had the mean of 3.64, standard deviation of 0.484 and confirmed with

43

a coefficient of variation of 13.29 %, verbally interpreted as agree that consumer buying

attitude can be influenced through consistent advertising.

The general perceptions of employees had the mean of 3.46, standard deviation

of 0.470 and confirmed with a coefficient of variation of 13.76, verbally mean

interpreted as agree that advertisement has grown sales improvement of Tigo Rwanda

Ltd.

Conclusions

From the findings detailed in chapter four, it reflects that advertising program has

an impact on sales improvement of Tigo Rwanda Ltd. Efficient implementation of a

strong advertising policy asks not the employees of Tigo Rwanda Ltd only; It can be

sustained when there a strong partnership and collaboration among employees; managers

and administration committee at different positions and with awareness and full

commitment. If there are no strong advertising procedures, regulations and evaluation of

all persons in charge, the sales improvement of Tigo Rwanda Ltd will be hard to be

known and customers satisfaction may be affected which lead to losses of Tigo Rwanda

Ltd...

44

Recommendations

The main recommendations were suggested by the researchers after analysing and

interpretation the findings.

To Tigo Rwanda Ltd

To increase the advertisement and make the message more simple

andunderstandable.

To ameliorate their services delivered to customers;

To install strong network

To reduce call cost, avoid call charges for unmade calls because customers call for

complaining.

To other Researchers

The researchers recommend this, because results found are not exhaustive and the

knowledge and skills in the domain are limited. The use of this document will help them

to expand their research conducting. Since this might help them, but they have to go

beyond and all right reserved.

45

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Website:http://www.millicom.com/about_us.http://www.tigo.co.rw

APPENDICES

47