Influence of advertising on organizational performance of cosmetic manufacturing firms in Kenya

Abstract

Today‟s dynamic business environment is continuously changing because of globalization, regulatory changes, increasing intensity of competition, increasingly demanding customers, new information technology, and mergers and acquisitions. This has resulted in markets that can be characterized as increasingly turbulent and volatile and has caused many organizations to seek competitive capabilities that enable them to exceed customers‟ expectations and enhance market and financial performance. Firms are increasingly adopting advertising in order to reduce costs, increase market share and sales, and build solid customer relations. The objective of the study was to determine the influence of advertising on organizational performance of fast moving consumer goods in the cosmetic manufacturing firms. The research design adopted was cross sectional descriptive design. The population of the study comprised of all the 8 cosmetic companies operating in Kenya and all of them participated hence the study was a census. The study used primary data which was collected using self-administered questionnaires. The data collected was analyzed using statistical package for social sciences and presented in tables and charts. The study found out that advertisement helps the companies create awareness among customers for their products and services but also serves as a useful vehicle in promoting brand image of products and services offered at the target market. The study established that advertising in the cosmetic industry enables the companies to create good image and promote the reiterate purchase of the product or service, create large market segment which leads to the development of larger market, maintain superior stand in the industry, establish good relationship with potential customers and reduce consumer dissonance. The study further established that advertising helps the companies create awareness, appeal, creation of standards through competition, conviction, minimize hindrances between the organization and customers and employment opportunities. Advertising influences the performance of the cosmetic companies as it enables the companies to enhance the purchase of organizational products by the consumer, increase volume of sales, increase the profits of the organization and enhance the organization relationship with its customers.