Global Journal of Medical Research, E: Gynecology and Obstetrics, Volume 23 Issue 3

Advertising and Sales Performance of Selected Companies in Mogadishu- Somalia Global Journal of Management and Business Research ( E ) XXIII Issue III Version I Year 2023 31 © 2023 Global Journals or services brand and hence increase its profitability and sales performance. However there is no certain measurement or evaluation of the effectiveness of advertising, whether it is able to increase the sales of the products, or just simply to build brand awareness. To put up a simpler term, with the amount of resource poured in for advertising, does it actually boost up a sales performance is questionable. According to Gupta (2008) Advertising is also part of the total cost sales, although it is difficult compare to production cost and selling cost. The study therefore will attempt to investigate the relationship between advertisement and sales performance in Mogadishu Somalia. d) General Objective This study investigated the causal relationship between advertising and sales performance in selected merchandizing companies in Mogadishu Somalia. Since advertising is applied in order to raise awareness among customers. Thus, it could maintain customer loyalty and then boost up the organization performance in terms of profitability of the organization and its value. However, it is not certain whether adverting can increase organization performance in Mogadishu Somalia because the cost may be too high for the organization to sustain it, thus it may have adverse effects on organizational performance. i. Specific objective The specific of this study were as follows: 1. To examine how media advertising affect sales performance in some selected companies in Mogadishu-Somalia 2. To determine how celebrity advertising affect sales performance in some selected companies in Mogadishu-Somalia 3. To establish how billboard advertising affect sales performance in some selected companies in Mogadishu-Somalia. e) Research Questions 1. How does media advertising affect organizational sales performance in selected companies in Mogadishu 2. How does celebrity advertising affect organizational sales performance in selected companies in Mogadishu 3. How does billboard advertising affect organizational sales performance in selected companies in Mogadishu f) Hypothesis 1. Media advertising does not significantly affect organizational performance of selected companies in Mogadishu 2. Billboard advertising does not significantly organizational performance of selected companies in Mogadishu 3. Celebrity advertising does not significantly affect organizational performance of selected companies in Mogadishu g) Scope of the Study i. Content Scope The research focused on the contribution of advertising Promotion Strategy for merchandising companies and their sales performance, Mogadishu – Somalia. ii. Geographical Scope The study was carried out in Mogadishu, the capital of Somalia. The study encompass some selected Mogadishu merchandising companies. h) Significance of the Study The study will aid researchers who wish to carry out future research in the related field, which has not ventured under this study. The study will support organization to improve Advertising effectiveness in practical. This study will enhance decisions and actions on concrete knowledge issues about the private organizations by the research fund. And also improve the organizational profitability by minimizing wastage and unnecessary costs. i) Theoretical Framework This study was guided by the theory of advertising promotions, advanced by Smith and Taylor (2003). The theory postulates that advertising promotions involve high costs and, hence, companies are always looking for ways to reduce the cost of promotions but still maintain the effectiveness of the promotional activities being carried out. This is where companies use joint promotions. Smith and Taylor (2003) state that joint promotions or cross promotions offer economical routes to target the same customers with relevant offers. It will adopt for this study because the study will test most of the advertising promotion tools and their relationship and contribution to the sales performance. This theory will prefer from other theories of promotion. As will apply in this study, the theory holds the advertising promotion would influence the growth of the organization in terms sales performance. This is true considering the fact that if advertising programs are being implemented effectively and efficiently this may stimulate customers’ attention for the service than this may turn an increase in the sales volume as result of market share growth, which iii. Time Scope The study focused on the influence of advertisement on sales performance in some selected merchandising companies in Mogadishu. The study will conduct between January 2014 and August 2014.