LITERACY AND ADVERTISING PRACTICES IN SME’S
ABSTRACT
In any market-oriented economy, entrepreneurs are the agents of social and economic transformation and change. Some may say small business are the bedrock of any economy, they stimulate rapid growth in any industry that they operate in by their widespread economic activities. An economy with no or reduced small business activities, would be stagnant and without growth. Entrepreneurs are daring, they take risks and engage in many business activities that facilitate the economy’s development.
Advertising as we all know is an important aspect of the business promotions activity; it is a major form of promotion as it aids most other forms of promotion and even personal selling. Factually speaking, advertising could lead to the overall success of a business venture or lead to its failure if not properly conducted. It is no gainsaying that we have seen some thriving businesses go down the drain over the years and hundreds of businesses started over the years folded up within a year or two of existence. We already know that poor advertising or excessive advertising could be instrumental to these businesses’ collapse.
The reason behind this research therefore is among other things to inquire whether ones level of literacy determines his inclination towards advertising and whether this can be linked to the success or failures of an enterprise.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background to the Study    -    -    -    -    -    
1.2     Statement of the Research    -    -    -    -    
1.3     Research Objectives    -    -    -    -    -    -
1.4     Research Hypotheses    -    -    -    -    -    -
1.5     Significance of the Study    -    -    -    -    -    
1.6     Scope of the study    -    -    -    -    -    -
1.7     Limitations of the study    -    -    -    -    -
CHAPTER TWO
LITERATURE REVIEW
2.1    Introduction    -    -    -    -    -    -    -
2.2    Meaning of Advertising    -    -    -    -    -
2.2.1    Advertising Objectives    -    -    -    -    -
2.2.2    Forms of Advertising Media    -    -    -    -    
2.2.3    Advertising Theories    -    -    -    -    -    -
2.2.4    Advertising Models    -    -    -    -    -    -    
2.2.5    Advertising Purpose, Appeal and Message Strategies    -    
2.2.6    Challenges to Advertising in Nigeria    -    -    -    -
2.3    Meaning of Literacy    -    -    -    -    -    
2.3.1    Theories of Literacy     -    -    -    -    -    
2.3.2    Evolution of Literacy    -    -    -    -    -    -    
2.4    Meaning of SME’S    -    -    -    -    -    -    
2.4.1    The Role of SME’S In An Economy’s Development    -    -    -
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction    -    -    -    -    -    -    
3.2 Research Design    -    -    -    -    -    -    
3.3 The Population of the Sampling Method    -    -    -    
3.4 The Operationalization and Measurement of Variables    -    
3.5 The Research Instrument    -    -    -    -    -
3.6 Sources of Data    -    -    -    -    -    -
3.6 Method of Data Analysis    -    -    -    -    
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction    -    -    -    -    -    
4.2 Data Presentation and Analysis     -    -    -    -    -
4.3 Test of Hypotheses    -    -    -    -    
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction    -    -    -    -    -
5.1 Discussion of Findings    -    -    -    -    -
5.2 Recommendations        -    -    -    -    -
5.3 Conclusion    -    -    -    -    -    -    
BIBLIOGRAPHY    -    -    -    -    -    -    
APPENDIX    -    -    -    -    -    -    -    
LIST OF TABLES
Table 1: Gender distribution of the respondents    -    -
Table 2: Level of Education    -    -    -    -    -    -
Table 3: Religion    -    -    -    -    -    -
Table 4: Age Distribution (years)    -    -    -    -
Table 5: Monthly earnings    -    -    -    -    -    -
Table 6: Does your business have a name and signboard?    -    -
Table 7: You understand the concept of advertising?    -    -    -
Table 8: Advertising is not necessary    -    -    -    -
Table 9: Advertised products sell better    -    -    -    
Table 10: Advertising is too expensive    -    -    -
Table 11: Advertising is meant for large organizations and their products only-
Table 12: Advertising is practiced in your business    -    -    -    -
Table 13: Advertising gives you an edge over your competition    -    -
Table 14: You engage the services of advertising media    -    -    
Table 15: Which of these do you primarily advertise?    -    -    
Table 16: Can you recognize the various types of advertising?
Table 17:  You advertise all your new products or outlets    -    -
Table 18: You advertise in order to stay competitive    -    -    -    -
Table 19: You compare your products with that of other businesses        
Table 20: You constantly remind customers of your old products    -    -
Table 21: You advertise every new business you set up    -    -    -
Table 22: You cooperate with other businesses to advertise at a higher level-
Table 23: You develop and follow up an advertising plan    -    -    -
Table 24: To what extent is your advertising plan implemented    -    -    
Table 25: You look out for feedbacks and pay close attention to them    -
 CHAPTER ONE
1.1 INTRODUCTION
The encyclopedia Britannica defined advertising as “the techniques and practices used to bring products, services, opinions, or causes to public notice for the purpose of persuading the public to respond in a certain way toward what is advertised”. Advertising as we all know is an important aspect of the business promotions activity; it is a major form of promotion as it aids most other forms of promotion and even personal selling. Advertising was also defined by the English-Definition Collins dictionary as “the promotion of goods and services through impersonal media”. Practices on the other hand could be defined as the actual application or use of an idea, or method as opposed to theories relating to it. Advertising practices therefore can be seen as the application of the techniques used in bringing products, services, opinions or causes to public notice. While literacy level has to do with ones level of education. Factually speaking, advertising could lead to the overall success of a business venture or lead to its failure if not properly conducted. It is no gainsaying that we have seen some thriving businesses go down the drain over the years and hundreds of businesses started over the years folded up within a year or two of existence. We already know that poor advertising or excessive advertising could be instrumental to these businesses’ collapse. It is no gainsaying that we have seen some thriving businesses go down the drain over the years and hundreds of businesses started over the years folded up within a year or two of existence. We already know that poor advertising or excessive advertising could be instrumental to these businesses’ collapse. The reason behind this research therefore is among other things to inquire whether ones level of literacy determines his inclination towards advertising and whether this can be linked to the success or failures of an enterprise.
Concerning the circumstances antecedent to the foregoing discussion, this study sets out to investigate; how ones level of education would affect or affects his advertising position, practices and policy of his firm, if there is a relationship between the two variables of literacy level, and advertising practice. It also sets out to produce recommendations for the problem.
1.2    STATEMENT OF THE RESEARCH PROBLEM
    Advertising has been recognized as a major promotions strategy; it is through advertising that most products are introduced into the Nigerian market. Advertising has helped a lot of products attain success in the market, yet it is a common belief that a product that cannot sell without advertising surely cannot sell with it, also there are so many other variables to advertising that if one does not know them, his advertising endeavor would be a failure for example, you need to ask questions like; is my product price elastic or not? What market category is this product meant for? Should I even be advertising at all? Without successfully asking and answering these questions and many more, the advertising endeavor might be a failure. This being put to consideration though, we have seen a lot of graduates fail in their efforts of advertising in their own businesses but we also know that most SME’s are owned by entrepreneurs who have not seen the four corners of a higher institution. The reverse is the case in most situations though.
    So therefore what the researcher set out to find among other things is if a person’s advertising practice is a derivative of his level of education. It is also the goal of the researcher to find out if there are any significant differences between the advertising practices of a BSc holder and those of other less educated entrepreneurs. Finally, having noticed the haphazard ways in which businesses succeed and fail around the country, also seeing illiterates rise from the dust and become successful businessmen, the researcher intends to find out if there is any correlation between one’s level of education, one’s advertising leanings and one's general success as a businessman.
Concerning the circumstances preceding the foregoing discussion, this research set out to answer the following questions;
1.    Does one’s level of literacy have any influence on his advertising practices as a manager?
2.    What are the significant differences between a BSc holder and less educated people holding A’ levels and O’ levels in terms of their advertising policies?
3.    If one’s literacy level would make him a better advertising manager and thus a better businessman, (i.e. what are the chances that someone with a lower level of education would do well as an advertising manager, in comparison with those of higher institution’s level of qualification)
1.3    RESEARCH OBJECTIVES
Looking back to our previous research questions, the research objectives are as follows;
To determine if one’s level of education reflects on his advertising practices
To establish the differences between the advertising policies of an individual with a BSc., its equivalent and above, and those of an individual with below these qualifications.
To find out whether one’s level of education would make him a better advertiser and therefore a better entrepreneur.
1.4    RESEARCH HYPOTHESIS
1.    Ho:    A person’s level of education does not influence his advertising practice
2.    Ho:    There are no significant differences between the advertising practices of a Bsc holder and that of SME operators with lower levels of education.
3.    Ho:    A person’s level of education would make him a better advertiser and therefore a more successful entrepreneur.
1.5    SIGNIFICANCE OF THE STUDY
We all know that in countries like Nigeria, there are no fixed qualifications for managerial positions in an organization. Thus we can find complete illiterates holding positions in BOD or even as managing directors of corporations, we can also find people who have no background whatsoever in a field being put as departmental heads in such fields. It is a wonder that some of such companies withstand and even pass the test of time. It is also a common sight where most thriving product lines are killed by bad advertising practices by such officials. It is no gainsaying that corporations run by “qualified personnel” have also folded up over time as well as a result of bad advertising practices in respect to their once thriving product.
We are aware that advertising has to be optimum for it to produce effective results. The research will find out the level to which literacy levels affects advertising practices. It is also the hope of the researcher that this project would recommend solutions for “Bad advertising practices” to managers that are less qualified.
This research will provide information for marketing students and other management sciences students that intend to conduct research on the topic and other related topics. The research would also determine if anyone intending to delve into entrepreneurship and set up his own business would need to undergo a crash course in advertising or marketing, or go for a program in marketing, or if it is totally unnecessary.
It is also the hope of the researcher that the research would prompt further inquiries to the problems addressed here; also it should correct some perceptions on one’s level of education and perceived success in a venture.
1.6    SCOPE OF THE STUDY
    This research work relies on entrepreneurs (small and medium scale business owners) around Ugbowo environment for its data. The researcher would collect data from entrepreneurs with BSc, entrepreneurs with SSCE and as well as entrepreneurs with no academic qualifications at all. Both entrepreneurs practicing advertising and those not practicing it would be approached.
    Data will be collected using questionnaires and Chi Square would be used to analyze them.
1.7    LIMITATIONS OF THE STUDY
In the course of conducting this research, the following limitations were encountered by the researcher;
Small sample size; the sample size as a result of variables indicated above, was limited to Ugbowo, Benin city. This is far cry from the general population of Entrepreneurs, managers and even CEO’s in the country. Therefore generalizability in this case would be a difficult task.
Inability to obtain a random sample; Getting a hold of the sample frame for this research was an impossible venture, therefore I was constrained to use non probability sampling method which is not as representative as a probability sampling method would have been
Low response rate; most entrepreneurs shy away from questionnaires asking them questions on how they were running their business, it was a difficult endeavour getting a few of them to cooperate and provide information for the purpose of this research.
Despite all these limitations discussed above, the researcher has put in utmost effort to ensure this research study will be completed and that it would contribute greatly to the work or future researchers.