The purpose of the study was to establish a relational analysis between advertising costs and dairy products sales volumes at Parmalat Zambia limited. Descriptive research design was employed with a sample population of 105 participants. Data were collected using questionnaires and in-depth interviews. Quantitative data were analyzed using SPSS, while thematic analysis was used to analyses qualitative data. The findings of the study indicated that there was no sufficient evidence statistically that an increase in advertising cost spontaneously increases sales of Parmalat dairy products (Testing Ho at 5% level of significance, Pv < α (0.016110754 < 0.05); Reject Ho). That is an increase in the cost of advertising did not translate into a direct increase in the sales of dairy products. A further regression analysis provided the following regression statistics summaries: R² = 0.584 which implied that the model was statistically and relatively a good fit although not very strong mainly due to the fact that the number of explanatory variables added to the model is small.: Thus, only 58.4% of the total variation in sales of Parmalat dairy products is explained by the model. On the other hand, the Adjusted R Squared accounted for 44.588745% or 0.44588745. Based on the findings of the study the following were the recommendations: 1.Parmalat management should adopt other cost effective advertising strategies as the current advertising costs do not directly trigger high sales of dairy products. The suggested cheaper ones are web based and online advertising.2.Parmalat management should appreciate PESTEL factors that act as hidden causative costs outweighing revenues from sales of dairy products.3.Parmalat management should constantly scan the Dairy sector (SWOT) in order to adopt the best practices of advertising or they should review their advertising policy and strategies of advertising dairy products.