The Effect Of Advertisementon Business Organization Profitability: The Case Of Ambo Mineral Water Share Company

Abstract

The objective of the study was to investigate the role of advertisement on business organization profitability in ambo mineral water Share Company. A study consider 70 employees as target population and 65 questionnaires were properly filled and returned from employees of marketing and sales and finance department. The study employed document analysis which was obtained from the head office of the company focusing on the last five years income and profit history and interviewed four sales and marketing department workers. A descriptive and explanatory (mixed) design were employed where quantitative and qualitative approaches were used. Descriptive statistics such as frequency, percentage, mean, standard deviation and inferential statistical analysis of correlation and regression analysis has been used and Statistical Package for Social Science version 25 was used to process the data analysis. The role of advertising on the profitability of the company was very important. Reminder advertisement has the strongest role for the profitability of the company. Informative and persuasive advertisement also had a significant role for the company. However, Ambo Mineral water share company need to focus on reminding advertisement, top management should be involved in the continuous evaluation and monitoring of advertising to ensure that the goals and objectives set are achieved and appropriate corrective actions are taken in the event of deficiencies by conducting market research, the management should emphasize on advertising as an important and strategic policy aimed at increasing profitability of the company.