EFFECT OF ADVERTISING ON PERFORMANCE OF SELECTED FOOD AND BEVERAGES FIRMS IN NIGERIA

Advertising is a persuasive communication which attempt to change or reinforce one’s prior attitude and it is basically done not only to inform customers about product rather, it is a process which further influences and persuades customers to purchase a product or services. The objective is to determine the effect of advertising on sales revenue, sale volume and profitability of the food and beverages firms in Nigeria. Data were collected purely through secondary sources by extracting the relevant data from the annual report and account of the food and beverages firm from 2003 to 2015 where annual figures for advertising expenses available in the annual report and account were used as a measure of advertising data related to annual sale revenue, sales volume and profitability were also used. The study commenced by establishing the gap that spur this study. It was discovered that research paid little attention to the effect of advertising cost on the sales revenue and profitability of the firms. The study therefore recommend amongst others that. Management should emphasized on strategic policy to enhance advertisement budgets from time to time in tandem with economic realities .review of advertising policy on products, so that multiple approaches could be used to reach target consumers, other promotional products and right medium should be put in place as to enhance sales revenue, sales volume and profitability of the product or services to guaranty efficient and effective advertising.