CHAPTER ONE

BACKGROUND OF THE STUDY

1.1 INTRODUCTION

            Personnel selling is the presentation of a product service or ideal by salesman in the direct contact with prospect in order. To make sale’s it is also personnel presentation of product or ideas of commercial significance. To prospective buyer. The America marketing association defines it as oral presentation in conversation with one or more proposal for the purpose of making sales.

            Proposal selling is the most important promotion tool when measured in terms of time and money. The goal of all marketing efforts is to increase profitable sales by offering wants satisfaction to the market over the long run. Personal selling is the major promotion method used to teach the above goal because of this, in many company, personal selling is the largest single operating expenses, often equally 8% – 15% of net sales by using personal selling. The company can pinpoint its target market and the advertising to creating awareness and arouse interest but it is only personal selling that result in actual sales.

            This is because when the salesman is indirect contact, he tries to stimulate desire in an attempt to obtain action. There by creating urge in prospective buyer to take decision. Now and not later petroleum product are industrial goods and as such posses the features of an industrial goods that make it extremely necessary to use personal selling the marketing of petroleum product such characteristics are:

They are sold in bulk and need assurance of the quality of the product, this makes it important use a sales person so that he can demonstrate. The product to the potential industrial users and arrange for quality easy transportation of the goods to their distinction.

The market for the industrial goods is very competitive, therefore, for the produces of such goods (e.g. petroleum product) to be able to maintain a large market share they need the services of sales people.

The demand for industrial goods is a derived demand which means that the attribute of the product should be sold to the industrial users by the sales people.

            Total marketing Nigeria PLC is the leading company in the petroleum marketing industrial in Nigeria it is the first major marketer that was given the award at quality product (150 – 9002) by standard organization of Nigeria (SON) they make use of personal selling more effectively and personal selling activities take a higher percentage of their promotional budget.

1. STATEMENT OF RESEARCH PROBLEM

The problem there is the “effectiveness of personal selling in marketing of petroleum product in Nigeria” (Total Nig Plc). This problem is concerned with the effect of using salesman in the marketing of petroleum products.

That is whether the cost of maintaining the sales force justices the benefits derived by Total Nigeria Plc (i.e. cost benefit analysis). The problem involves the exclusion of personal sales in the competitive homogenous petroleum marketing industry. The project will explore these brotherly questions concerned with the problem. It personal selling more effective than advertising in the marketing of petroleum product. What proportion of promotional budget should be allocated to personal selling. Does the cost of personal selling.  Does the cost of personal selling justify it’s benefit personal selling ready the most effective and important promotional tool and should such importance be related with the appointment of the promotional budget.

1.3       AIM AND OBJECTIVE OF STUDY

The case study of total Nigeria plc is the petroleum marketing industry.  It started operation in 1956 and it has captured a large market – it spends a lot of money on personal selling and we want to find out from this research if the cost of maintaining these sales people justifies the benefits the company derives from their services. This research work will bring out into sharp focus both the roots of their success and failure the research findings and recommendation will enable the management to encourage the salesman when necessary and forgive corrective action when needed to enhance a smooth and effective management of the total marketing sales force.

The project will set out the best procedures on the personal selling in Total Nigeria Plc. The research will show the relationship between personal selling and sales whether an increase in the use of personal selling may lead to an increase or decrease in the sales of the organization.

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