Personal Selling
Personal Selling
Personal Selling
INTRODUCTION
The economic realities of Nigeria over the years have exposed the marketers
important role in the industrial promotional mix, personal selling serves as the
of an industrial market depends largely on how effective the selling efforts are.
consumer through person to person interaction to develop a lone for its product
in preference to other competing ones and see to it that the consumer parts
with his money for the company’s product. We have chosen Chemical and
Allied Product Plc (CAP) among other manufacturers of industrial products due
to our being impressed by their use of sales force for effective personal selling
especially now that the Nigerian consumers are becoming more sophisticated
and selective in their demand for the consumption of industrial products. These
and some other related issues will be considerably analysed in this study.
1. 2 STATEMENT OF PROBLEM
1
The bulk of the selling activities of any industrial products rest comparatively
on the company’s sales force much more than is the case with consumer
products. This is so because with the latter the consumer has already realized
the need for such a product and all the needs for the product may not have
been known to him. It may therefore required skilled sales personnel as well as
convince the potential customers the need for the product. For this reason, it I
The purposes of this study among others are centers on the following:
personal selling
forces.
To examine how realistic and attainable the sales target and objective of
2
1.4 THE SIGNIFICANCE OF THE STUDY
It is expressed that at the conclusion of this study, its significance would have
proved itself. It is hoped that it will prove to be of immense benefit to the sales
improved efficiency of its sale force and consequently greater sales results.
The research questions for this research work are outline as follows:
1. What are the reasons why personal selling is the most appropriate marketing
products?
effective personal
selling?
products
3
1.7: THE SCOPE OF THE STUDY
More than ever before, industrial products manufacturers like other products
are facing great challenges to their survival in the present day economic
realities. The emphasis now is for the sales management to explore the virgin
avenues to persuade its present and potential customers to prefer their own
The study shall examine how, particularly CAP is weathering this storm. To do
by some factors:
Another constraint was the time available. Because of the nature of our
travel to some other towns and time made this virtually impracticable.
4
For the purpose of clarity and understandability, some terms used are
recognition.
branded substitutes.
5
Consumer behaviour: The totally of behaviour displayed by
consumption.
importing and selling industrial products from Britain. This continued till 1962
when it started to manufacture its own paint locally. The Chemical and Allied
Product Limited (CAPL) was given to the company when it changed its name in
1978 in line with the Federal Government indigenization decree of 1974 when
the company was acquired by Nigerians and other bodies in Nigeria. The
company later changed to CAP Plc when it became a public liability company.
Presently, the company’s operation has become so diverse with which it can be
company.
REFERENCE
Charles, Rueben (1982). Marketing: concepts and Applications. 1st Ed. New
York: McGraw Hill
6
Book Company.
CHAPTER TWO
LITERATURE REVIEW
7
The term marketing concept has been subjected to as many definitions as
there are authors who have variously written about marketing. A source
Marketing mix, according to Stanton, is the term that is used to describe the
marketing system: The Product, the price structures, the promotional activities
person and the individual customer for the purpose of making sale and
between the sales personnel and the prospective buyers for the purpose of
persuasive and effective form of all the promotional system. As good as it may
8
be, it equally attracts the largest share of the communication promotion
budget. This results from the fact that the cost of reaching one person
the\rough personal selling is relatively higher than is the case with other
The high cost of personal selling not withstanding, it is favoured than other
PRODUCTS.
From the discussions so far, it can be seen that personal selling much more
following reasons:
9
There is need for practical demonstration because of the high technical and
complex nature of before and after sales services that can only be performed
by sales person.
It is common practice to find the sales person visiting and inspecting the plants
Industrial Products are those goods or services that are purchased for use in
consumer products on the other hand, are product destined for used by
ultimate consumers or households and in such form that they can be used
nutshell, industrial goods are distinguished from consumer goods based on the
• The buyers and dealers are well defined and are very few.
10
Classification of product into either an industrial or a consumer product does
these products. However, one useful means or gain about this is either through
the use into which the products are put or how they enter the production
The following are the main classes into which industrial products can be put:
Heavy equipment
These include those major equipment that company employs in its productions
Light Equipment
on a more routine manner, involve less decision- making rigorous and less
negotiation and are sometimes used to operate the heavy equipments. These
These are the basic or processed materials of the land and sea. Under this
category are logs, cotton, iron ore, crude oil, fishing net, chemicals etc. A
there are usually competition on the services rendered, such as quick delivery,
11
Maintenance Repair and Operation (MRO) Supplies.
These are used by an organization as part of its normal operation and they do
not become part of the finished product. Their marketing and distribution
channels are similar to those of the consumer products. Their prices are low
Services
shipping. Their qualities, which are usually difficult to measure, largely depend
on those who tender them, such as the technical salesmen that offer before
basis for distinction can best be elaborated through analysis of the place as
• Product:
given to those attributes that make up the product. There is need to ensure
that the product composition including the package for protection can
satisfactorily meet the needs of the industrial buyers. Other components of the
industrial product mix are the emphasis placed on both before and after sales
12
• Price:
Though both industrial and consumer product purchases are sensitive to price
the greater sensitivity is with the ultimate consumer, for the industrial buyer
therefore less prone to price elasticity of demand than the consumer goods
the price as would his consumer counter part. Discount in freight payment and
other price oriented variable are the main areas where industrial buyers solicit
price cuts rather than outright bargaining for on-the-spot cut in price that is
• Promotion
through personal selling while advertising and sales promotion are much more
most rampant with consumer durables. Generally, the market for industrial
• Place: (Distribution)
and consumer goods. While the former are mostly marketed or sold directly to
the user by the manufacturers, the distribution of consumer goods takes the
13
conventional channel; that, is from the manufacturer to the wholesaler, to the
SELLING
There are some factors that influence hoe effectively a company’s sales force
would be able to discharge its duties and responsibilities. These factors among
TODAY
The economic realities of the present day in Nigeria are gradually moving the
country away from a seller’s market to a buyer’s market. This is because with
rational buyer would seek the best bargain in order to get the best value for his
the present setting of marketing activities in Nigeria, Onauga opined that many
14
more goods will unfortunately; have to chase relatively few buyers. Sales
present economy. They have been searing for the best ways to turn these
The CAP in order to meet these challenges and intensive competition has
developed a highly skilled and well e quipped sale force for all its industrial
The regional sales manager of Berger paints, Ikeja, disclosed one efficacious
strategy adopted by his company is the caliber of its sales force. He explained
that since the company appreciated the highly technical skill required to sell
industrial paint, it has spread it net far and wide in its bid to bring skilled
personnel to its sales force. The result of these efforts, he concluded is sound
REFERENCE
15
Charles, Rueben (1982). Marketing: concepts and Applications. 1st Edition,
New
York: McGraw Hill Book Company.
Shubin (1991). “Business management” Barus and noble Press, 1st edition.
16
CHAPTER THREE
RESEARCH METHODOLOGY
3.1: INTRODUCTION
both the collection and analysis of the relevant data in the course of this
research study. In order to achieve this objective, the following areas were
emphasized; the research design, data collection source, the population plan,
For this research work, the exploratory design was used which involves the
the problem under investigation. Both the primary and secondary types of
exploratory research methods were used. Casual research was also used which
deals mainly with establishing the effect which one variable have over the
other. Therefore those factors that affect the effectiveness of the sale force
Two basic sources of data collection were used in the course of this research
work. These are primary (Field research) and the secondary (desk research)
source.
Primary Sources: These involve gathering fresh information that will help in
solving problem at hand. Series of discussions and interviews with people were
17
employed in this research work. Such people include sales and marketing
information.
internet.
The population of a research work refers to the total number of people and
item about which research is carried out and from where conclusion is drawn.
In a situation where the population is very large, for instance running into
information. However, where the population is not large enough, say hundred
and below, then the whole population can be used. This is called complete
enumerate. For the purpose of this research work, complete enumeration was
population is not all that large, while a sample size of ten (10) of the customer
was interview.
respondents. The questionnaire designed for this work took the following
18
format. A letter of introduction explaining the purposes of this research work
and soliciting the assistance of respondents occupied the front page of the
The last of the questions (9-24) probed into the respondents’ characteristics,
level of knowledge, attitudes and so on that are related to the topic. In all,
there were 24 questions phrased to help test the hypotheses of this study.
Administering the questions was not an easy task. At a time, it would appear as
the questionnaires meant for the sales force members of CAP Plc through the
19
REFERENCE
20
OJIkutu, R.K. (1992), Statistics, Problems and Solution, Lagos.
CHAPTER FOUR
4.1: INTRODUCTION
For any research study involving the use of questionnaires, personal interviews
and hypotheses, there is always the need to analyse the raw data collected,
the result of the interviews as well as testing the hypotheses developed for the
study and interpret the findings. These are the scope of this chapter.
returned.
The following are the analysis of the data obtained through these
(questions 1-7) was omitted since they have little or no impact on the
21
Table 1 (question 8) Personal Selling is the most appropriate for selling
insuranceproducts.
Respondent
Strongly Agree 15 65.21
Agree 6 26.09
Indifferent 2 8.70
Disagree - -
Strongly Disagree - -
Total 23 100
Source: Field survey, June 2010
representing about 65.21% strongly agreed that personal selling is the most
appropriate for selling industrial products; 26.09% agreed and 8.7% neither
Table two above shows that 34.8% of the respondents believed that salesmen
are born and not made. While 30.4% of the respondents believed that
salesmen are made, 34.8 are indifferent to view whether salesmarketers are
born or made.
22
Disagree 2 8.7
Strongly Disagree - -
Total 23 100
Source: Field survey, June 2010
Table 3 above shows that 13 respondents about 56.5% strongly agree that
sound recruitment and selection procedure aid effective personal selling; 7, i.e.
Table 4: (Question 11) How adequate are the recruitment and selection
The above table shows that 9 respondents, representing about 39.2% agreed
that the recruitment and selection procedure of their companies are adequate;
Table 5: (Question 12) Do you agree that sales training programme improves the
From the above table, 17 respondents i.e. 73.9% strongly agree that sales
training programme improves the efficiency of the sales force; 21.7% agreed
23
Table 6: (Question 13): Adequate incentives as motivational tools improve the
The table above indicates that 15 respondents, about 65.2% strongly agreed
personal selling; 26.1% of the respondents agreed with the same notion, while
Table 7 (Question 14): Adequate supervision of sales force improves the efficiency
of personal selling.
From the table above, 43.5% of the respondents strongly agreed that adequate
24
The hypotheses that: Personal selling is the most appropriate channel for
To test this hypothesis, the following null and alternative hypotheses are used.
HO: Personal selling is the most appropriate channel for selling industrial
products’.
Hi: Personal selling is not appropriate channel for selling industrial products’.
Respondents X X2
1 4 16
2 5 25
3 5 25
4 4 16
5 5 25
6 5 25
7 3 9
8 5 25
9 5 25
10 5 25
11 5 25
12 5 25
13 3 9
14 4 16
15 5 25
16 5 25
17 4 16
18 5 25
19 5 25
20 4 16
21 4 16
22 5 25
23 5 25
105 489
Ex = 105 = 4. 565
n = 23
25
S = Ex2 n(x)2 n-1
= 489-23 (20.839) 22
S = 0.66.39
U = X + tn – S.n
= 4.565 + (2.074)(0.6639)23
to get the value of U, we choose any value within 4.852 and 4.278,
That is U= 4.50
Using t = [ x-u] n
s
t = [ 4.565-4.50] 23
0.6639
23
t1 = 0.065 = 0.479
= 0.138.
Since the computed value t1 is less than the table value of t, i.e. t1 = 0.471,
U = 2.074. we therefore accept the null hypothesis that: Personal Selling is the
most appropriate for selling industrial products at 95% confidence level while
26
Hypothesis that: Effective recruitment, Selection and training of the sales force
To test this hypothesis, the following null and alternative hypothesis were used.
Hi: Effective recruitment, Selection and training of the sales force do not
Respondents X X2
1 16 256
2 16 256
3 17 289
4 18 324
5 17 289
6 17 289
7 15 225
8 14 196
9 17 289
10 16 256
11 18 324
12 20 400
13 19 361
14 20 400
15 20 400
16 17 289
17 18 324
18 20 400
19 16 256
20 14 196
21 17 289
22 18 324
23 15 225
395 6857
Ex = 105
27
n = 23 = 4. 565
S = Ex2 - n(x)2
n-1
= 6857-6780.6
22
= 3.473
= 1.864
23
To get the value of U, we choose any value within 17.98 and 16.47, Therefore
17 is chosen
Using t = [ x-u]
s
n
t = 17.17-17.00
1.864
23
t = 0.17
1.864
4.796 = 0.17
= 0.389 = 0.437
t1 = 0.437
tt = 2.074
Since the computed value of t is less than the table value of t, i.e. t1 = 0.45,
28
Selection and training of the sales force enhance effective personal selling With
Discussion of findings is based on the result of the hypothesis tested and the
CHAPTER FIVE
5.1 INTRODUCTION
This chapter gives the summary, conclusion, recommendations and possible
5.2 SUMMARY
29
Our belief I the place of personal selling as a prominent feature in marketing
the topic of this research work. The study set out to specifically highlight
industrial products. It also tries to find out level of successes and failures of
literature. These data were analysed and statistically tested to either accept
5.3 RECOMMENDATIONS
The following recommendations are made which are based on the findings from
the study having analysed and statistically tested the information collected.
30
to creating awareness for the product thereby preparing ground for
2. On the issue of the procedure for recruiting and selecting the individual
product sales force, although both the questionnaire analysis and the
management course. This will facilitate and ease the training exercises of
establish their training school. This will facilitate imbibing the specific
4. As regards industrial products’ price, in line with cost and price reduction
their raw materials to reduce, if not totally replace the costly imported
ones.
Personal Selling has been widely accepted ns the most appropriate for selling
31
study shows that this fact also been acknowledge by manufacturer / marketers
Some of the reasons advanced for this enviable position of personal selling are
that the industrial products, in view of their highly technical and specialized
necessary, deliver them where required, offer after sales services such as
As a result of these onerous tasks that the sales force handling industrial
training them are more complex than is the case with their consumer
and motivating the sales force which have direct influence on their moral and
forces of the company, especially one dealing with industrial products must be
BIBLIOGRAPHY
32
Aderika, E.O., et al (1996). “Principle and Practice of Marketing Enugu,
Jomoe
Managemnt of Nigeria.
33
Nigeria, Lagos. Press Publishers Ltd.
APPENDIX 1
QUESTIONNAIRE
Dear Respondents,
We are final year students of the Department of Business Studies, Lagos State
therefore distributed to gather information most especially your experience about the
information given shall be treated with strict confidence for the purpose of this study
Yours faithfully.
• Tyuiyh
• Yutred
• Mkjhgpo
• jhgf
34
Appendix 2
SECTION A
PERSONAL DATA
35
SECTION B.
4. Do you agree that sales training programme improves the efficiency of the sales force?
36
6 Adequate supervision of sales force improves the efficiency of personal selling.
8. Advertising do mislead people to buy what they do not plan to buy unlike personal
selling
profitability.
37