IMPACT OF ADVERTISING IN THE MARKETING OF AIRLINE SERVICES

CHAPTER ONE

INTRODUCTION

In every facet ‘of business, be it profit or nonprofit oriented, the owners of such business concern must focus on techniques to create awareness for its products, service and ideas. For a system of transaction to take place, marketing thus call for more than developing a product, pricing and making it readily accessible to the target market. As firms make good products, they must inform consumers of the products and carefully position these products in the consumer’s mind. And to do this, they must use a mass promotion tool called Advertising.

In the modern economy with dispersed large population, interpersonal communication especially between producing units and their customers is no longer tenable, Hence advertising helps to stimulate and sustain the vigor and momentum of economic activities through the enhancement of the consumption behaviour of the citizens. Also the image of a company is enhanced through the establishment of reputation for trustworthiness of progressive and social responsibility brought about by advertising in the minds of both actual and potential customers. But the extent an advertising is packaged and the awareness created will make the difference both positively or negatively on the intention of gofidrof such business. Advertising plays a great role in a nation’s development as the reaction to any customer towards any product or service is enhanced by advertising. The key point of every organization is to sell its product and this can only be done successfully through an advertising campaign.

Advertising beyond any doubt started as early as 1861 through town criers, local sign post and through local song instruments. (Onyebunagu 1983: 27).

Advertising involves four elements, the source, message, channel and receiver. The source is represented by the advertiser who produces an advertisement which is the message through mass media (communication channel) then to the target audience which is the receiver. The vital part of communication known as feedback is measured in terms of sales realized. Advertising intervene in nearly all aspects

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of economic and cultural lives. It highlights and stimulates certain vitality in production and trade. Advertising give Industries, Companies like Nigeria Airways faster access to the market for the introduction of new products and services and reinforce consumer awareness for the existing products. It also tries to transmit feelings, commitments and convictism as well as to transmit them persuasively. For advertising to meet it goals it most have a purpose.

Advertising has been defined as any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. (Kotler & Armstrong 1989 p434). Ar.identified sponsor could be forms, companies, Airlines, Non-profit and individuals who are in a way identified in the advertising message. With reference to the definition above, advertising therefore could be regarded as a mino to our society. As stated by Hobson 1988, advertising is not only a means of informing mass market, but a promotional medium in which government and other organizations can channel their ideas and the Airline induct

such as ARIK Airways Ltd., the importance of advertising cannot be over stressed due to large influx of people in the Airline business, meaning that the highest advertiser in the industry is the “king in the market”. The Airline uses advertising to inform its customers about its services. These services are in form of reduced Airfares, change of schedules, promotional and seasonal fares etc.

Advertising helps to keep the customers abreast of the services the Airline offers at any point in time. If the Airline falls to advertise, the public would not be aware of its services and this could give its competitors the advantage of misleading or taking over its customers.

The Airline uses TV., Magazines, Newspapers and Radio for the bulk of its advertisements. Besides in other advertising programmers, the advertisers has to predict through certain principles of budget depending on the means of communication considered which must be well designed and tailored to meet their consumption. Because of the fact new Airlines are being established everyday and the ones already existing are trying one way or the other to outpace the other, the importance of advertising which are awareness creation of its products and consumer persuasion towards the product becomes imperative. ARIK AirLINE Ltd. being a national carrier and competing with other foreign airlines should use advertising as a strategy to. differentiate its services from others.

1.1   STATEMENT OF THE PROBLEM

As stated earlier, advertising is the mirro through which the public gets to know

about a company or firm and what they do. Often times a lot of money is spent on advertising without ascertaining the return of what is invested in the advertisement.

Looking at the activities of the Airline Industry in the past three years has shown an increase in Airline patronage which is brought about by increased advertising. But sometimes managers complain thus “we are not recording profit compared to when we did not advertise”. Consequently, the purpose of advertising which is to induce buyers to adopt favourable attitude towards the Airline products is marred. It is the entire responsibility of the managers to employ advertising as a marketing tool. But the unfortunate thing is that most Managers create problems for their advertising departments in their erroneous use of advertising. Many Marketing Managers do not plan ahead of schedule and this creates problem for their advertising Departments which are usually required to operate on schedule.

in the Airline  Industry,  messages are focused on beneficial schemes and the introduction of services in the form of special or discounted fares that can create a difference between it and other Airlines. These special fares and discounts help the Airline to outsmart other competitors. In spite of this, many Marketing Managers focus their advertising at the right place but at a wrong time.

The real problem in this study is to find out whether the increase in the Airline patronage and profit is attributed to constant advertisement.

Again

How has advertising helped in the selling of Airline services to its customers. Whether the message to be sent out would try to bring out the hidden advantage of a product or service to the public.

Also, the problem of how Advertising has helped to raise Nigeria Airways customers from negative to positive ranking among its competitors especially in the face of intensive competition from other foreign Airlines whom the public believe are better equipped than Nigeria Airways.

1.2   OBJECTIVES OF STUDY

• The main purpose of this study is to critically ascertain various ways in which
  the Airline advertises its products or services and the benefits derivable from
• It will help to find out the tendencies of the audience towards the advertisement.
• To find out different strategies employed in advertising its products to achieve
  their goals.
• To appraise the impact of advertising effectiveness on the products of the
• To find out the problems faced by the Airline when advertising its products.
• To ascertain the role advertising plays in the company.
• To find out the degree at which advertising correlates with persuasion to the
  change of customers attitude.

1.3   RESEARCH HYPOTHES

HOI:      The type of advertising used does not affect the patronage of the Airline.

Hli:       The type of advertising used affect the patronage of the Airline.

HOii:      There is no positive relationship between Advertising and profit

HHii:     There is positive relationship between Advertising and profit.

HOiii:     Problems are not encountered by the Airline in the process of Advertising.

HHii:     Problems are encountered by the Airline in the process of Advertising.

HOiv:   Advertising does ‘not play an effective role in the marketing of Airline services.

HHiv:   Advertising plays an effective role in the marketing of Airline services.

HOV:     Customers are not responding favorably to the services of the Airline.

H1V:    Customers are responding favorably to the services of the Airline.

1.4  SIGNIFICANCE OF THE STUDY.

The motivation for this study stems from finding out how advertising is employs an effective  to promoting the products of arik Airways Ltd. Port Harcourt District.

Furthermore, this study will educate the Airline and advertisers to use advertising in order to motivate the consumers to buy their product or services. The result will therefore educate the management of the Airline to know the benefits gained and perhaps the disadvantages associated with frequent advertising. Again the result of this research would serve as a reference material to other researchers who may want to carry our similar work in future.Finally, this study would be beneficial to personnel’s in Advertising/Public Relations Department of the Airline and similar ones.

1.5  LIMITATIONS  OF THE STUDY.

This research was limited by some factors such as time factor which was the greatest limitation while conducting research study. Due to the time constraint, this research work has been restricted to Port Harcourt District. The greatest Limitation is that the company is now running skeletal services in all its administrative Areas

because of its problem with Nicon over Insurance plate cover.A study of this magnitude would have sampled many Airline offices as possible to ascertain then impact of advertising, due to the attitude of the management towards this direction it was cut down to facts collected

Second The research have the problem of finding which those because the researcher depend on his parents for money .difficulties associates with obtain information from respondent was also a limiting

1.6   DEFINITION OF TERMS ADVERTISING

Any paid form of non-persona! presentation goods, services or ideas to a group,

which is aimed promotion If the sales of goods and services or gaining acceptance of any ideas or point of view.

MEDIA Means of dissemination of information e.g. Radio, TV. Motion pictures and press (standard Dictionary of English Language 3^Id Edition 1964).

1.7 ADVERTISING AGENCY

Is an independent company set up to render specialised services of advertising particular and of marketing in general.

ADVERTISING APPROPRIATION

It is the amount of money that marketer allocates for advertising for a specific time

ADVERTISEMENT

This is the message which advertising is transmitting,    it is the same thing with ADVERT.

ADVERTISER

This is the sponsor of an advertisement, he may be a manufacturer or profit or non­profit organization or even government

FREQUENCY

This refers to the number of times an advertisement  is delivered  through  a particular medium within a given period e.g.    Advertising message of Nigeria Airways Ltd. May be 3 times a day, thus the frequency is three per day. PROMOTION

This  is the  ingredient  used  to   inform  and  persuade  the  market  regarding  a company’s products, advertising personal selling and sales promotion are major promotional activities.

PATRONAGE ;In this study it means the desirability of consumers (customers) to either identify,

receive,  agree to accept or buy a product,   in Airlines these products are its services.

STRATEGY

Strategy is the determination of the basic long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out those goals {Tate and Taylor) 1985. CONSUMER

In the exchange process, it is the person who uses a product (Charles D schewe1987).

1.8 RESEARCH QUESTION

7. How does the type of Advertising used t by the Airline affect its patronage level,
8. Advertising have a positive effect on the profit of the Airline?.
9. Does The Airline encounter some challenges in the process of advertising.

4. Considering the effect of advertising, do you think that the Airline should continue it at present level or step it up.
5. does your adverting produce a favorable or unfavorable effect on consumers attitude to your airline

• HISTORY OF ARIK AIRWAYS arik airline is a wholly Nigeria air line with a commitment to the people of Nigeria to deliver new standard in violation arik airline was founded in 2002 as the vision of the funder sir arumemi –ikhide a well respected Nigeria business man who understood that if business is to succeed that there is need for quality service it take him long time of travelling throughout with out satisfaction ( research movement) he recognized the important of heath air way and market competitor in achieving efficiency as a visionary and creative mentor he has a plan for change in airways transport

In 2002 sir Arumemi buy a jet air craft for his personal use safety and convenience

In April to October 2006 arik air take over the former Nigeria air ways faculty in Lagos and inaugurate their new headquarter by former president olusegun obasanjo who was represented by aviation minister of  his regime

Final in 2011 arik become the first to fly from Lagos to Angola also become a member of the international air transport association (IATA) and has completed their audit this airline was founded by sir J.I.A ARUMEMI -IKHIDE

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