ACCRA TECHNICAL UNIVERSITY

BTECH
SCHOOL OF BUSINESS
DEPARTMENT OF MARKETING

TOPIC:
THE ASSESSMENT OF ADVERTISEMENT ON CONSUMER BRAND PREFERENCE
THE PHARMACEUTICAL INDUSTRY, A CASE STUDY OF DANADAMS
PHARMACEUTICAL LIMITED.

MERCY SOSSAH LEO

01190325B

JUNE 2021
1.0 BACKGROUND OF THE STUDY

The objective of marketer’s principal is to reach their target group and make more than a single

sale. However, consumers almost always approach the marketplace with a well-established set of

tastes and preferences (Hoyer & Brown, 1990). In business environment marketers’ main

objectives are getting new consumers and retaining the existing one to increase their market

share and sales volume Vivekananthan, (2010). According to, (Reicheld & Sasser, 1990), the

cost of getting new customers is greater than the cost of retaining the current customer. Now a

day’s advertisement is a great source for promoting the business in the whole market. The

consequences of advertisement continue to accelerate by every year. Advertisement use to build

up the product’s strong image in consumer’s mind.

According to Kotler et al. (2014), advertising delineates to be “any paid form of non-personal

presentation and promotion of ideas, goods and/ or services by an identified sponsor”. The

purpose of advertising by organizations seeks to create awareness in the minds of potential

buyers through various advertising mediums in order to impact on buying behavior. Most

organizations primary mission of advertising is to reach prospective customers and influence

their awareness, attitudes and buying behavior. Common advertising objectives are identified as,

behavioral constructs that generate trial purchases, attitude changes and measurements, position,

brand building and creating brand awareness (Sawanth, 2012, p.56).

Ntiamoah, Egyiri, and Kwamega, (2014), suggested that, hitherto, the driving force of

advertising is to create brand awareness inducing potential consumers to consider as well as to

remind existing consumers of an existing brand (leading to create a positive effect on brand

preference over competitive brands influencing the brand choice purpose (Barker, 1999). In

contrast, Ewen (2008) is of the belief that the basic purpose of advertising is to provide efficient
and massive distribution of products whereas the functional goal is creating consumers’ desires

or habits. Furthermore, Hussain et. al., (2008) state advertising involves in delivering allied

information of product or service to potential consumers affecting their purchase intention.

Several studies suggest advertising facilitate the effectiveness of advertisements in terms of

brand recall, persuasion or brand preference (Keller, Macdonald & Sharp, 2000).

Consciousness of good influences consumers purchase of that good. Other factors that influence

one‘s taste and preference for a good are psychological and environmental. Taste and preference

for a good change overtime. Thus, advertisements play a role in influencing taste and preference

of consumers’ choice. (Sharma, 2009).

The decision to buy or not to buy a product is purely based on consumer opinions. Consumer

buying behavior refers to the purchasing behavior of consumers who are the individuals and

households that purchase goods and services for consumption. Consumer behavior is also

defined as the study of how people buy, what they buy, when they buy and why they buy. It

refers to the buying process that occurs to anyone who is willing to buy, from individuals to

households, groups or organizations. Kotler and Keller (2011). Factors influencing consumer

behavior include culture, social class, reference groups and personal characteristics, among other

things. It is therefore important to understand how consumer behavior is influenced by various

forms of advertising. Advertising is often used to make consumers aware of a product’s special

low price or its benefits. But an even more important function of advertising is to create an image

that consumers associate with a product, known as the brand image. The brand image goes far

beyond the functional characteristics of the product.

The major aim of advertising is to impact on buying behavior. However, this impact about brand

is changed or strengthened frequently by peoples’ memories. Memories about the brand consist
of those associations that are related to brand name in the consumer mind. These brand

cognitions influence consideration, evaluation, and finally purchases (Romaniuk & Sharp, 2004).

Consumer behaviour analysis is helpful for an advertiser to understand the behavior of consumer

in buying in different situations. According to traditional hierarchy-of-effects models, effect of

advertising exposure leads to brand cognition and cognition about the ad, which then leads to the

attitude towards the ad and the brands until their purchase intent (Mendelson & Bolls, 2002).

1.1 PROBLEM STATEMENT

Companies in Ghana, particularly traditional pharmaceutical products consider advertising as an

inevitable tool for survival in highly competitive market, since an increasing number of health

products and food supplement brands are available in the market directly either locally produced

or imported which implies that Danadams products would have to rely heavily on advertising to

distinguish it from other products in the minds of consumers. The Danadam Company Limited

undeniably have employed several advertisement strategies and whether the advertisement play

any role and effect on consumer behavior and preference is worth studying.

The role of advertising in influencing consumer brand preference and behavior has been

undermined by many firms in Ghana over the years. Some firms spend huge amounts of money

advertising their products with Danadams not been an exception and still complain about low

sales volume and product patronage, since adverts may not necessarily bring about huge volume

of sales in the short-run, but will certainly increase sales and profits in the long run if done

properly.

Advertising has become the gateway to survival and the acquisition of market share for most

organizations with Danadam products not been an exception. Therefore the goal of this research

is to find if consumer buying behavior is a result of advertisements made on the Herbal Life
Products. As stated previously, advertising affect products and are believed to have an intrinsic

quality that is not known at the time of purchase.

1.2 RESEARCH OBJECTIVES

The main objective of this research is to explore the assessment of Advertisement on Consumer

Brand Preference in the Pharmaceutical Industry. The specific objectives are to:

i. To determine the various medium used in the advertisement of Danadam pharmaceutical

products.

ii. To assess the various types of advertisements use to market Danadam products.

iii. To determine the factors that are most effective for influencing consumer buying

behavior with Danadam brand.

iv. To examine the extent to which advertising has influenced consumer brand preference of

Danadam product.

1.3 RESEARCH QUESTIONS

In order to attain the above set objectives of the study the following research questions are

outlined:

i. What are the medium used for advertisement of Danadam products?

ii. What are the various types of advertisements use to market products?

iii. What factors are most effective for influencing consumer buying behavior with Danadam

brand?

iv. To what extent has advertising influenced consumer brand preference of Danadam

products?
1.4 RESEARCH METHODOLOGY

Research design

The study will adopted qualitative methods coupled with case study strategies to explore the

assessment of Advertisement on Consumer Brand Preference in the Pharmaceutical Industry.

The study adopted an exploratory design sort to investigate advertisement and its effects on

consumer brand preference, this will enable the researcher to get in-depth understanding of

subject matter. Exploratory research is used to investigate a problem which is not clearly defined

and help the researcher to have a better understanding of the existing problem. The sources of

materials for the study will take the form of primary and secondary data collection methods. The

primary data will be extracted from natural source whilst Secondary data materials were

extracted from relevant textbooks, newspapers, reports/articles, journals, bulletins and

documents.

1.6 SIGNIFICANCE OF THE RESEARCH

The findings of the study will benefit most pharmaceutical Companies, specifically, Danadam

company Limited by helping them to understand the assessment of advertising on consumer

brand preference, various media of advertisements that can be used to advertise pharmaceutical

products, ways in which advertisements influence consumer brand preference and how

advertisements influence consumer brand preference.

The findings of this study added to the existing body of knowledge on the assessment of

advertising on consumer brand preference by providing future researchers with a source of

empirical literature on the same or similar topics.

1.7 SCOPE OF STUDY

The study will be conducted within the framework of assessing and analyzing advertisement on

consumer brand preference in the pharmaceutical industry.

The time approved to complete the research is limited. Danadam has most branches spread all

over the country. The scope of the research will be limited to the customers of the organization at

a selected branch in the Greater Accra Region who will assist in providing important information

that could be used in attaining the right results. Hence the result will not be generalized but its

findings will be placed in the relevant context.

1.8 ORGANISATION OF THE STUDY

The study will be made up of five (5) chapters. The first chapter which is the introduction

comprises the background of the study, problem statement, objectives, significance of the study,

methodology and organization of the study. The second chapter is the literature review, it

basically gives an in-depth and relevant review on the subject under study thus the assessment of

advertisement on consumer brand preference, the concept of advertisement and other techniques

adopted and the concept of consumer brand preference in the Pharmaceutical industry. Chapter

three is the methodology. The fourth chapter presents the data analysis and findings. The final

chapter which is chapter five touches on the conclusion and recommendations.

REFERENCE

Keller, K.L. (2000). The brand report card”, Harvard Business Review, January-February, pp.
147-57.

Kotler, P., Armstrong, G., Harris, L. C., & Piercy, N. (2014). Principles of Marketing 6th
European Edition. Harlow: Pearson Education

Kotler, P. & Keller, K. (2011). Marketing Management”(14th edition), London: Pearson

Education

Mendelson, A. L. & Bolls, P. D. (2002). Emotional effects of advertising on young adults of

lower socio economic status. Retrieved on Dated: 01-05-2009.

Ntiamoah, E. B., Egyiri, P. O & Kwamega, M. (2014). The Role of Advertising in Branding
Financial Products’, International Journal of Business Management, 1, pp. 1-10,

Recheld,F.F. and Sasser,W.E.(1990).”Zero defections: Quality cones to services,” Harvard

Business Review, pp 105-11.

Romaniuk, J. & Sharp, B. (2004). Conceptualizing & Measuring Brand Salience. Marketing
Theory Articles, 4(4), 327-342.

Sawant, M. R. P. (2012). Impact of Advertising on Brand Awareness and Consumer Preference

(With Special Reference to MenS Wear)’, IOSR Journal of Business and Management, 5(6),
pp.54-61

Sharma J, & Sharma S. (2009), Sales and Advertisement Relationship for Selected Companies
Operating in India” School of Doctoral Studies (European Union) Journal July, 2009, No. 1.

Vivekananthan, M.V., (2010). A study on influence of advertisement in consumer brand

preference (special reference to soft drink market, pp. 1-13.