EFFECT OF ADVERTISING ON COMPANY’S PROFITABILITY: A STUDY OF COCA-COLA DEPOT, CALABAR

This research work on impact of advertising on company’s profitability a study of coca-cola company was carried out in Calabar. The main aim of advertising is to inform, persuade and remind. The objectives of the study is: to access the extent to which advertising programme reflects on the sales volume of a products, to analyze the effect of advertising on an organizational profitability, and lastly to evaluate the extent to which advertising contribute to organizational growth. Three (3) hypotheses were formulated, while the method of data collection was primary and secondary data. The population of this study comprises of adult, male, female employee in coca-cola company Calabar. However, the estimated population is 100 as a working tool for this research work to avoid being biased a satisfied random sampling technique is used to select (50) respondents as the sample size, after the data presentation, the data analysis was carried out using chi-square statistical tool. In discussion of findings, the null hypothesis (H0) was rejected while the alternative hypothesis (HI) was accepted, apart from the fact that objectives, functions and corporate advertisement was discussed, it can be rightly deduced that advertising has a great has a great impact on sales volume and profitability on business organization. The recommendation of this research work is based on empirically arrival at the course of study: One organization wishing to increase the volume of sales should advertise their product because by this, their products are satisfying and their patronage increase, that the organization is willing to carryout advertisement should do it through the radio, because it has been analyzed to be the cheapest and longest range to the customer, and lastly, companies should advertise what their can do rather than advertising what it can’t do, because it drives the customers away from such product, because what is expected is not derived.