PERSONAL SELLING AND ITS IMPACT ON CONSUMER GOODS
ABSTRACT
This
research work is to examine personal selling, its effect and impact on consumer
goods (a case study of Grand Product Limited Abuja) which normally result in general
growth in any production. It can be achieved through this research findings,
this research work try to explain the nature of personal selling, its
importance and problems, qualities of a good sales persons either male or
female, functions of sales representatives, tactics, comparison between
personal selling and other forms of sells promotion. For an effective and
efficient opinion collection, this project work will adopt to questionnaire
distribution and collection methodology, the questionnaire will serve as a
means to create an impression on the respondents and establishes a frame work
for individuals within the organization to sample their opinion as required to
the questions asked. This research study will be limited to personal selling,
its effect and impact in an organization. And as such, it has been structured
into two major categories one personal selling does not play an important role
in the marketing of a product. H0, personal selling plays an important role in
the marketing of a product. H1, two personal selling does not lead to high
increase in the marketing of a product. It is expected that after the
collection of the distributed questionnaires it will be shown that personal
selling play an important role towards organizational survival and overall
growth.
CHAPTER ONE
1.0
INTRODUCTION
Personal
selling is virtually an oral presentation of ideas in conversation with one or
more prospective purchasers or buyer in order to create sales and patronage for
products and service. It is therefore a face to face communication with one or
more persons with the intention of making immediate sales or even with the aim
of developing a long term relationship that will eventually lead to a
patronage.
In
other words, due recognition and attention are given to the salesmen in their
persuasive nature and merit of being flexible in their mode of operation.
Personal selling serves as a two way communication system which gives and
receives information on the spot
of selling.
The
management of selling functions is better carried out with the utterance
personal selling. It helps in bridging the gap between the buyer and the seller through a
collective bargaining effort of both parties. Personal selling can also be seen
as a personal interaction between the source and the destination, in this case,
production point and final consumer. As such, it involves personal communication
between the
salesman and his prospects. It is concerned with the development at latent need
(a need that is no seen) into a positive need through personal interaction.
Therefore,
it should be noted that as one of the major goals of marketing operation, an
increase or sales profitability is guaranteed when the desired level and
quality of sales force is been used by ensuring that market demands are
satisfied in a more permanent way. Thus, it is evident that no company would
make profit when maintaining a profitable sales force. The realization of this
express on the percentage funds allocation to personal selling.
Personal
selling requires all the qualities that will extol and enhance the image of the
company, the product and the sales persons who are viewed as “rapport builders”
sales people with area of operations are categorized as public men, as such
they must have their convincing power to interact to the fullest extent with
their prospects. They must therefore have the ability to identify themselves to
diverse social group.
For
any organization to survive and grow effectively it therefore, pertinent to
identify consumer behavior by conducting research to answer question like who
are they? These question if answered will give light to effective marketing communication.
Marketing has been variously defined given by Philip Kotler.
“Marketing
is a human activity directed by satisfied needs and want through exchange
process”.
Marketing
communication is however commonly used as a collective term, including
projection of press, television, cinema, radio, postal and other form of face
to face sales promotional massage which include personal selling promotion model outline display of tools
available for the communication whose major role is that of persuasive
communication. The promotional mix constitute the following component.
Advertising, personal selling, sales promotion, public relation and direct
mailing. However, this project work writer up shall be restricted to personal
selling as an organization tools for
survival and growth.
According
to Etzel Walker and Stanton, personal selling is the personal communication of information
to persuade some body to buy something. Also personal selling is a promotion
method that involved direct or face to face relationship between seller and
potential and existing customers or oral presentation in a conversation with
one or more perspective purchasers for the purpose of mailing sales.
At
this point, of the selling has become a key variable of the promotional mix. Personal
selling is adopted by many firms small, medium and large so as to obtain higher
sales volume through satisfaction.
Personal
selling is unique in nature, the quality include personal confrontation,
cultivation of personal relation between the seller and the buyers for
immediate response. The degree at which personal selling is used might depends
on the nature of product. This product in question can be categorized into two
consumers or industrial product.
CONSUMER PRODUCT
Consumer
product also known as non-durable goods, non-durable goods are tangible goods
normally consumed in one or few user.
These
are goods produced and made very ready for the ultimate consumer use. This
consumer product can be distinguished among convince, shopping, specialty and
unsought goods. Convinces goods; include soaps, sweets, magi etc. shopping
goods include shoes, bag, furniture, clothing etc. while specialty goods include:
health food, men suit, photographic equipment, automobile etc. while unsought
goods include life assurance, gravestone, cemetery plot etc.
INDUSTRIAL PRODUCT
These
are products or service that are acquired for use in the production of other
goods or services which are sold, rented or supplied to other.
These
industrial products could be in form of raw material such as hide and skin use
in producing shoes and bags or cotton for production of textiles. It also
include serving steel services, plumbing and window cleaning.
For
consumer and industrial product these are the programme for both products to
have market where these product can be marketed or sold.
Therefore,
personal selling is important in marketing consumers products; but it is more
important and effective in marketing industrial products because of its
complexity and technically in nature of the products with the arrival or coming
of marketing concept, the need of personal selling can not be over emphasized
as recognizing the needs and wants of consumers is their priority.
Therefore,
the use of sale has become inevitable to every organization either small or
large than plan to achieve the maximum sales.
1.1
HISTORICAL
BACKGROUND OF THE STUDY
Grand
product company limited (RC – 93896) incorporated in 1987 is the West Africa
leading specialty wholesaler and retailer of consumer electronics, household
appliance properties, bakery services (Grand Brand), grace ice cream and grand
cake with over 29 years of experience in sales, production and household goods.
Grand product company limited is today a notable franchise holder of some of
the world’s most famous brand names, such as west point, xper, loewe, ligne
Roset, and elemax generators, Hyundai generators.
The
company’s extensive sale, distribution and service network in Nigeria is enhanced by large own outlets in Nigeria, supported by the most extensive dealer
network in Nigeria and Africa.
The
grand product co-limited is a player in international trade with relationship with companies
in France, Germany, Italy,
Belgium and Japan.
The company is a leading member of the manufacturers association of Nigeria,
Grand product company limited is also active in Franco-Nigeria chamber of
commerce and industry.
The
grand product limited is managed by a professional team headed by the founding
chairman, Chief executive and supported by Nigeria and European managers.
Finally,
Grand product company limited has four regional offices in Nigeria with head office located in Lagos, Abuja, Port-Harcourt
and Kano.
1.2
STATEMENT
OF THE PROBLEM
Personal
selling is known as the presentation and conversation with one or more
prospective purchasers of the product for the purpose of making sales. The
controversy about the personal selling is that, it is not appropriate for all
products and it must not be used during certain stage in the product life
cycle. Others argue that it is too costly and does not enhance the quality of
the product.
The
question is that personal selling is costly when compared with other
promotional tools? Are there products that personal selling would not be
appropriate for during their life cycle? Does personal selling have impact on
sales of goods and profitability of the company? The product work will try to
find answered to these questions and particularly assess all the impacts of personal
selling on marketing of a product.
The
cost involved in keeping sales force on the field is high. This is one of the
major problem facing most consumer that engaged in personal selling.
1.3
OBJECTIVES
OF THE STUDY
Every
organization pursues a set of target strategies and goals based on its incisive
and business scope. The purpose and aims of this research work will be stated
as follows:
1.
To assess the impact of personal selling on consumer
goods in accruing organization goals.
2.
To assess sales force effort and efficiency in
increasing sale volume.
3.
How to effectively manage this sales people to obtain
desired result.
4.
To determine the role of a company’s sales force in
creating value and building customer relationships.
5.
To examine the effectiveness of personal selling as a
promotional tool to achieve sales objectives in comparisons with other
promotional tools.
6.
To reveal ethical issues in personal selling and sales
management.
1.4
SIGNIFICANCE
OF THE STUDY
The
information which the study will provide could enhance the improvement of marketing
activities such as
solving problem; customers always have problem making the right purchase, that
is selecting the right product or services to satisfy their needs.
However,
for the customer to be able to solve his problem he / she must first of all
recognize that he/she has a problem which the sale man solves through research.
The
salesman’s job therefore is to be able to explain how the product he/she is
selling can solve the problem of his prospects or customers. It is also
educating, where a consumer or a researcher is not aware of his / her needs and wants, it is
sales man’s job to help him or her find what these needs are, with the aid of
personal selling. A product may contain special features that are not apparent
on casual inspection.
Personal
selling is also a means of communication, it enable one to be able to
communicate the merit of a product or the unique selling points of the product
by describing the features of the products. communication as we know is a tow
way process, this calls for salesman to be an efficient receiver as well as
sender. It helps one to be a good listener and to answer questions
intelligently.
Most
consumer engages in personal selling in other to increase sales and maximize
profit and this has motivates researchers to investigate the role it can play
in an organization.
The
researcher hope that this work will contribute knowledge and as well serve as
reference material for future research work in this important area of marketing. As a result sales
force, manufacturer, customer protection, agencies etc.
1.5
SCOPE OF
THE STUDY
This
study will be limited to personal selling, its effect and impact on consumer.
Although personal selling highly interrelated without demands of promotional
mix (Advertising, sales promotion and publicity) etc.
This
research work will also give suggestion, solution to problems based on the
finding and benefit consumers derive from personal selling to achieved its
desirable objectives.
1.6
STATEMENT
OF HYPOTHESIS
H0: Personal
selling does not play an important role in the marketing of a product.
Hi: Personal
selling play an important role in the marketing of a product.
1.7
LIMITATION
OF THE STUDY
1.
Time Factor: considering the time factor, these is
little or no time in gathering information as required for the project work.
2. FINANCIAL
CONSTRAINT: The cost involved in gathering information,
transportation cost and the production of the needed materials also serve as
constraint in the writing of this project.
3. SECRECY: The secrecy of consumer has an
effect because not all consumer will agree to give out required information
because of the fear of their competitors.
This
study is limited by inadequate financial resources which make it impossible for
the researcher to travel
to many state and conduct interview with sales personnel of various firms that
are into leather work.
The
research is also limited
by time and poor record keeping this factor bedeviled the research work in the
sense that the time frame to collect and analyse data is insufficient.
1.8
DEFINITION
OF TERMS
PUBLICITY: The
presentation of information or message and or ideas which are not paid for by
an identified person.
PERSONAL SELLEING: Its form
of selling as promotional tools which consist of a face to face interaction
between the seller and the buyer.
SALES FORCE: This are
workers found in the field of selling and are designated with different names
such as sales representatives, field representatives or salesmen etc.
ADVERTISEMENT: A form of
non personal presentation of ideas, information or message paid for by an
identified sponsor.
SALES PROMOTION: An
inducement given to customers to stimulate them in other to make them buy more
of a particular product or service.
FINANCIAL INCENTIVES: Rewards
which are in the form of cash itself in this case are monetary in nature
otherwise known as motivations.
NON-FINANCIAL INCENTIVES: Fringe
benefits which are not in cash but in kinds such as recreation, promotions, job
facilities and so on.
ON THE JOB TRAINING: Training
done for members of a company while doing the job in the office or factory
under a close supervision of the trainee.
REFERENCE
Etzel
Walker and Stanton J (2000) fundamental of marketing 2nd Edition,
John Maxwell publisher Page 234.
Philip
K. (2006) marketing management 12th Edition Prentice Hall Inc 629
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