PERSONAL SELLING AND ITS IMPACT ON CONSUMER GOODS

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 2^nd Edition, John Maxwell publisher Page 234.

Philip K. (2006) marketing management 12^th Edition Prentice Hall Inc 629

CHAPTER TWO

LITERATURE REVIEW

2.0            INTRODUCTION

This chapter “Literature review” provides a theoretical framework of the study under progress in order to review past or present researcher’s comments, statement and opinion that have direct bearing on the subject matter for an in-depth understanding.

So many people under rate taking personal selling as their career some thought it will be thankless job.

According to Kotler Keller personal selling is an ancient art. Effective salespeople today have more than instinct, however companies now spend hundred of millions of dollars each year to train them in  methods of analysis and customer management and to transform them from passive order takes into active order getters. Representative are taught the SPIN method to build long-term relationships with question such as:

1.     Situation Questions: These are about facts or explore the buyer’s present situation for example “What system are you using to invoice your customers?

2.     Problem Questions: These deal with problems, difficulties, and dissatisfactions the buyers is experience for example, “What parts of the system create errors”.

3.     Implication Questions: These ask about the consequence or effects of a buyer’s problems, difficulties or dissatisfactions. For example how does this problem affect your people’s productivity”.

4.     Need Payoff Questions: These are about the value or usefulness of a proposed solution. For example “How much would you save if our company could help reduce errors by  80 percent, most sales training programs agree on the major steps in any effective sales process. We show these steps.

According to G. Vermes (2003) he feels that personal selling has the following:

Communication:  first and foremost, all types of personal selling provide the opportunity to meet people. It is being used effectively in customers and public relations. Personal selling is consequently of genuine value.

Time – Outside to the retail trade, personal selling work on a flexible time schedule this does not mean they work less actually, it means that they work more.

Employment – There are no other field in which such diversity of employment in personal selling can select from wide varieties of positions. There are so many factors consider by this particular scholar to support the idea of personal selling as a tool for consumer survival.

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