A Study on Manager's Recognition For Advertising

- Focusing on Cheju -

By Sung-Ok Kang(Department of Business Administration, Graduate School of Business Administration Cheju National University)

Today, we can not get through a single day without seeing advertising by mass media such as television, newspaper, magazine, etc. from morning to night. This is because companies can not exist without product-selling promoted by advertising.

In 1995, they spent over 4 trillions and 9,473 hundred million won for advertising in Korea, which is on the increase of 22.89o compared with 1994.

Advertising is meaningful not only for consumers by Information of products, but also for managers by providing information for decision-making related to management. Particularly

how managers recognize advertisement is very important because it may directly influence on the amount of selling.

The purpose of this study is to report the manager's recognition for advertising.

To accomplish this purpose. 350 managers in Cheju were given questionnaires of which 268 were returned of which 254 were used for empirical analysis.

This study consists of 5 chapters:

(1) Introduction

(2) Theoretical Backgrounds - General review for Advertising itself and Advertising management cycle.

(3) Theoretical Backgrounds: The Present Condition of Advertising for Cheju region.

(4) Empirical Research

(5) Conclusions.

Based on the theoretical backgrounds, major hypotheses were established as follows:

<Hypothesis 1> The degree of managers' recognition for advertising will differ according to the kind of business.

<Hypothesis 2> The degree of managers' recognition for advertising will differ according to the size of business.

<Hypothesis 3> The degree of managers' recognition for advertising will differ according to how long they have continuously worked in their company.

<Hypothesis 4> The degree of managers' recognition for advertising will differ according to the volume of product-selling.

Frequency, the T-test and Oneway ANOVA by a statistical package, SPSS/PC+(Ver 3.1), were used to analyze each variable.

As the result of the data analysis above the major hypotheses were proven as as follows :

1. Managers in service business recognize advertising more importantly than those in construction, manufacturing industry, wholesale and retai1 trade business do(see Table IV-4).

2. The recognition for the necessity and importance of advertising is different between minor and major enterprisers. That is. Major enterprisers recognize advertising more necessarily and more importantly than minor enterprisers. (see Table IV-4).

3. The recognition for the necessity. importance and function of advertising is not different according to how long managers have cootinuously worked in their company(see Table IV-5).

4. The recognition for the necessity. importance and function of advertising is not different according to the volume of product-se)ling. However averages of the necessity, importance and function of advertising are quite high(see Table IV-6).

Limitations to this study are as follows:

() Samples of data were collected only in the Cheju area, so the results of this study may have the limits of application for other area.

(2) This study focused on managers in Cheju. But classifying managers are not clear as they answered unclearly for those queationnaires.

(3) There should be enough basic data of advertising related to Cheju region.