CHAPTER ONE INTRODUCTION 1.1    BACKGROUND OF THE STUDY  Nearly everyone in the modern world is influenced to some degree by advertising and other forms of promotion. Advertising as one of the key promo tools plays a very important and crucial role in ensuring new product acceptance in the prospective target market. Advertising has been defined as any paid form of non-personal presentation of ideas, goods or services by an identified sponsor Kotler and Keller, (2008). A more recent definition which captured the modern practice of advertising was advanced by Moriarty et al (2009) which sees advertising as a paid form of persuasive communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers (a target audience) and provide information about products (goods, services and ideas). Nigerian consumers are increasingly in the area of exposure to advertising messages. This is largely due to their expectation of good value for the money spent. Pike (2008) asserts that marketers are now faced with escalating media costs, often in tandem with declining advertising budget, thus leading them to increased interest in below the line promotional opportunities. According to Kotler (2009), marketing is totally about customers hence the core mission of marketers is to provide the solution to customers needs and wants by indentifying and meeting them. There are four mean factors on which marketing have been built up: these are four elements of the marketing mix place, product price and promotion. Advertising as a component of the promotional mix further enhance creation of customers awareness toward organizational products and then the need to accept such products if it meets, expectation and satisfaction of the consumers Belch and Belch, (2003). Advertising and other types of promotional messages are used to sell products and services as well as promote cause, market political candidates and deal with societal problems such as HIV/AIDS campaigns. Not only do advertisements sell goods and services, they are commodities themselves. Organizations in both the private and public sector have learned that the ability to communicate effectively and efficiently with their target audience is critical to their success. Advertising has important consequences for the advertisers who use it and for individuals who are exposed to it. It attempts to persuade prospective buyers to buy a product/service and equally contributes to economic growth by helping to expand the market; helping to develop new market segments.  Various strategies, including advertising are employed to make potential buyers aware of new products. Advertising can be used to promote new products and to call attention to changes in old products. In its usage to promote new products advertising impacts can be felt in consumer acceptance of Hero lager beer, a new brand of lager beer that has won some chunk of the beer market especially in Anambra State.

1.2    STATEMENT OF PROBLEM When a new product is introduced into the market, the product either fails or succeed. Estimates as to the proportion of new products success range from 2 to 20 percent (Agbonifoh et al, 2007). Various reason have been adduced as to why so many new product fail. The failure of a new product pose a very serious problem to the firm introducing the product. New products are important to a firm because of their implication for its continued survival, growth and profitability and because of the exergencies of competition. These new product face success/survival problem when not properly managed or promoted advertising is perhaps the most conspicuous of all marketing activities.

1.3    OBJECTIVES OF THE STUDY  The general objectives of this research is centered on the effect of advertising on consumer acceptance of new product. However, other specific objectives are to;

1. To ascertain the advertising types that can improve product acceptance in the industry.
2. To determine the extent that advertising can influence consumer’s purchase behavior
3. To determine the various advertising campaigns and/or communication used on Hero Lager beer

1.4    RESEARCH QUESTION  This research “Effect of advertising on consumer acceptance of new product” would attempt to answer the following questions;

1. Would the advertising types enhance product acceptance in the industry?
2. To what extent can advertising influence consumer purchases behavior?
3. What are the various advertising campaigns/communications that can be used on Hero Lager beer?

1.5    RESEARCH HYPOTHESIS  In the course of conducting this research, the following hypothesis would be formulated’ Ho1:  There is no significant relationships between advertising types and product acceptance.  Ho2:  Advertising has no significant relationship with consumer purchase behavior. Ho3: There is no appropriate advertising campaign/communication used on Hero Lager beer

1.6    SCOPE OF THE STUDY  The scope of this study, i.e effects of advertising on consumers acceptance of new product. (A case study of Hero Lager beer) aims at evaluating the role advertising played in the mass acceptance of Hero Lager beer specifically in Onitsha, Anambra State / market. The study would therefore be limited to Anambra state as the state seems to have a large segment of its market accepting and patronizing the beer.