Problem
As part of the team in the finance department, I have been assigned a task in which I am supposed to evaluate the financial impacts of massive investment in an advertisement for a small company called Macosx. Macosx is a relatively new company established in 2001. It is a private business entity specializing in the business of IT solutions. Our company distributes computers and related appliances. Our company also offers services related to information technology.
Since its establishment in 2001, Macosx has struggled to survive in the market given the high competition in its region of operation. Macosx’s proprietor, Mr. Ali, has a vision of making this company one of the largest and most profitable IT solutions businesses in the United Arab Emirates region as a whole.
After analyzing the marketing strategies of Macosx’s, I realized that the company invests very little in the advertisement. Advertisement, although a marketing issue, has a direct impact on the finances of the business.
The fact that it requires money to post advertisements that in return increase sales makes it a financial problem. Some of the top management team argues that massive investment in the advertisement will be too expensive for a small company like Macosx. I, however, disagree with them, since I believe advertisement will result in increased sales volume thus a positive financial input. I, therefore, feel the need to gather information from both our clients and our employees to help address this problem in a more compressive manner.
Process
What is the purpose of data collection in this study?
The purpose of this study is to determine the feasibility of investment in a massive advertisement. This will help us to determine whether it is cost-effective to expand our sales through advertisement. It will also help us evaluate the possibility of gaining more customers and eventually increasing our profits.
Which method will you use to collect data?
I will draft a questionnaire covering all the information I consider appropriate in solving this problem. As for our company employees, I will hand-deliver copies of the questionnaire and give them some time to complete and return them. For the rest of the target group, I will mail copies of the questionnaire with a cover letter asking them to complete it and send it back to me.
What is your Target Audience?
My study intends to gather information from a variety of people. My first target is the employees of our company. I will also consider companies dealing in information technology, especially small and middle-size companies. I will also target our existing customers to help get a broader view of how advertisement can influence their buying behaviors. I expect to have a target population of about 1000 individuals. I believe data collected from this population will be representative enough and will help in solving this problem.
What information do you need from the target group?
Information technology companies
- Whether they currently advertise their business or have plans for doing so.
- How much they spend to advertise their business products and services in a year.
- How advertisement has affected their business, both positively and negatively.
From our customers
- The number of Information Technology companies operating in the area.
- How advertisement influences their buying behavior.
From our employees
- How they feel about our current market share.
- Whether they perceive advertisement as a result-oriented venture in our company.
- Whether they would support any plan by our company to invest in massive advertisement.
Product
Questionnaire
The questions below tackle various issues related to the advertisement as a financial problem in business. Please follow the instructions and provide appropriate information by answering the relevant questions. Be very specific.
Section A
- Name: __________
- Age (in years): ____________
- Gender:
- Male
- Female
- Profession/Position: ___________
- Category:
- Macosx employee
- Macosx customer IT solutions company
- Name of company (Only for IT solutions companies): __________
- Number of years in operation (Only for IT solutions companies): _________________
Section B
- How many IT solutions companies do you know of in this district? _________________________
- What is your take on advertisement as a means of increasing company sales? ………………………………………………………………………………………………
- Today’s business environment is too competitive and requires a strategy to stay ahead of your competitors. With this statement in mind, do you advertise your business including the specific services you offer?
- Yes
- No
- Considering the number of times you placed advertisements for your company and its various products during the last financial year, approximately how much did you spend on the advertisement?
- Below $ 500
- $ 500-1000
- Above $ 1000
- Did the advertisements lead to financial losses or gains in your company?
- Gains
- Losses
- Other (Specify) _________________
- Even though you do not advertise your business now, would you consider advertising in the future?
- Yes
- No
- Does advertisement always influence your buying behavior?
- Yes
- No
- Companies use advertisements to lure consumers into purchasing various products and services. How often have you been lured into acquiring products and services through advertisements based on these media of communication
- Do you think advertisement is a problem that needs to be addressed in our company?
- Yes
- No
- Our company has invested very little in the advertisement. While some people feel we do not have to increase the figures, others feel otherwise. On average, how much would you recommend as the right figure to spend on advertisements yearly?
- State your figure here________________________
- Do you think the advertisement is too expensive for our company?
- Yes
- No
(To be answered by all).
- What advice would you give to a company that wants to invest massively in an advertisement? ……………………………………………………………………………………………………………
I appreciate your time and cooperation.