ABSTRACT

This research was designed to apprise “The Effectiveness of Personal Selling in the Marketing of Industrial Products in Enugu Metropolis (A Case Study of Emenite Plc Enugu). The researcher set out with the following objectives: To find out the effectiveness of personal selling of Emenite in creating customers awareness of their products. To determine the impact of personal selling on increasing the sales volume of Emenite. To what extent selling impacts on the profit of the company.  Based on the above objectives, extensive literature review on test books, journals, newspapers was carried out.   Questionnaires were prepared and administered to a population comprising customers, distributors and management/relevant staff of Emenite in Enugu.   Topman formular was used to determine the sample size of distributors and customers. Chi-square was used to test the hypotheses. The following findings were made personal selling activities of Emenite lead to increased sales, although one discovered that some of these sales representatives are not too effective, this is because the company deals on technical items = that personal selling activities of Emenite Nigeria are effective in creating customers awareness of their products.  That of their products.  That personal selling activity of Emenite impacts positively on the profit of the company. Based on these findings the researcher made the following recommendations that will enhance positive effect on the company.   The company should make adequate budget provision for their sales representatives. The company should recruit and properly train their sales people so as to bring in increase in sales and better performance of the company.  If the above recommendations are carried out, the company will not only serve their customers better but also bring in improved profit to the organization. 

TABLE OF CONTENTS

CHAPTER ONE:  INTRODUCTION

1.1        Background of the Study                                             

1.2        Statement of  Problem                                                

1.3        Objective of the Study                                                

1.4        Research Questions                                                    

1.5        Significance of the Study                                             

1.6        Scope of the Study                                                     

1.7        Definition of Terms                                                     

CHAPTER TWO: LITERATURE REVIEW

2.1        Overview of Marketing                                        

2.2        Meaning of Personal Selling                                  

2.3        Personal selling Process                                               

2.4        Importance of Personal Selling                                     

2.5        Characteristic of professional Industrial

Sales persons                                                            

2.6        Classification of Industrial Products                        

2.7        Personal Selling Objective                                    

2.8         Selection and Training of Salesman                      

2.9        Salesman Compensation                                              

2.10    Evaluation of Salesman                                               

2.11    Problems Involved in Personal Selling                    

CHAPTER THREE:                 RESEARCH METHODOLOGY

3.0    Research Methodology                                                

3.1        Source of Data                                                           

3.2        Population of the study                                        

3.3        Determination of Sample Size                                       

3.4        Sampling Technique                                                    

3.5        Research Instrument Used                                   

3.6        Sample Size for Distributors                                 

3.7        Reliability and Validation of Research Instrument     

3.8        Questionnaire Allocation and Administration            

3.9        Method of Data Analysis                                              

3.10    Limitation of the Study                                                

CHAPTER FOUR         

4.1        Presentation and Analysis of Data                         

4.2        Test of Hypothesis                                                      

CHAPTER FIVE

5.1    Summary of Findings                                          

5.2    Recommendations                                                      

5.3    Conclusion                                                         

Bibliography

Appendix

CHAPTER ONE

1.0    INTRODUCTION

1.1    BACKGROUND TO THE STUDY

Udeagha (199, 227) defined personal selling as a process of conversing the sale of a company’s products or service by sales man or woman, it is a dynamic process involving direct contact between the seller of a product or service and the prospective buyers through oral or face to face or telephone discussion or written mail exchange of ideas through opinion.

        Discussing the importance of selling Adirika (1993) defined selling as the process of inducing a prospective customer to act favourably on an idea advantage to the buyer and commercial significant to the seller.

        Every marketing manager ought to have sales persons beside him that have a through knowledge of what personal selling is all about in order to bring about a good level of profit to the company.   The increasing prominent of identifying them as the focus of a firm’s assistance has made it imperative for marketing organization to go for more sales persons. 

        Personal selling are a branch of marketing that is also broad which is expedient for continued existence of every marketing company.

        Most marketing organization today does not take into consideration the impact of personal selling; it has to do with person-to-person communication of which an immediate feedback is provided to the audience.  

To achieve and gain more customers personal selling needs to be strategically planned to be effective in today highly competitive market place.   The tactics implementation of the selling strategy takes place in a process according to Adirika (1998 : 19).

1)           Preparation

2)           Prospecting

3)           Qualifying

4)           Pre-approach and planning

5)           Approach

6)           Presentation and demonstration

7)           Trial closing

8)           Handling objectives

9)           Follow up and post sales activities.

Personal selling as known as a matter of persuasion ie persuading others to buy your proposition, when we persuade people we do not merely change their thinking on the subject, we crass them to do something, their actions are modified as well as their thought.  People are motivated by their desire for the benefit you offer them; therefore every sales presentation must convince them. 

In the same view of Edoga and Ani (2000; 293) personal selling serves major roles in a firm over all marketing efforts, sales people are the critical link between the firm and its customers, this role requires that sales people match company interest with customers needs to satisfy both parties in the exchange process.   In the eyes of consumer they represent what a company attempt to be and affair the personal contract, a customer has with the company. 

Odoh (2003: 121) noted that for personal selling to be effective the personal salesman has to have an in-depth product knowledge which is indispensable in handling the highly technical and professional customers that abound in the industrial sectors.

In communicating face to face with these customers, the industrial salesmen use such aids less calendar, cardholders and other small gift items as reminders to the customer of himself, his product or service offering.

Emenite Nigeria limited is located at Emene.   The company products and marketing roofing sheet.   The company markets its product through the industrial salespersons.  

The importance of these sales people in information gathering and selling functions need not to be over emphasized.   It is in the realization of this that the researcher critically looks at the effectiveness of personal selling in the marketing of industrial product.

1.2    STATEMENT OF PROBLEM

Most times, most companies be it large or small do not realize that personal selling is part of the marketing team and that, identify them.   It is the key to continuous existence of any organization.  

Also it was observed that this problem is worsened by the fact that some of the sales persons are half back and lack the ability to express their sales properly.   Not only was that it observed that most sales persons lack the ability to possessing self-confidence.  Also it was observed that the sales people are not good listeners.   The sales people do not allow the customers to talk with them.

        Furthermore it was observed that sale persons do not listen to customer’s complaints.  They do not consider the customer analysis; aid the handling of objections, ignored.   Ememite Nigeria Plc is not an exception.   The company, which started very well, is now faced with competition that is fierce and cut through coupled with the income of the customers of Ememite Nigeria Limited, thus no doubt have impacted negatively on sales of the comparing.   This research work is focused on the marketing of industrial product by personal selling specifically Ememite Nigeria Limited.  

1.3    OBJECTIVES OF THE STUDY

The main purpose of the study is to appraise the effectiveness of personal selling strategy on the marketing of industrial product usin Ememite as company, other objectives are:

1)           To find out if personal selling activities of Ememite creates customer awareness of their product.

2)           To determine the impact of personal selling on increasing the sales volume cost of Ememite.

3)           To aware whether the sales forces of Ememite company are properly motivated

4)           To find out method used in compensating sales people in Ememite.

5)           To what extent selling impacts on the profit of the company.

1.4    RESEARCH QUESTIONS

1.     Does personal selling activities of Emenite create customers awareness of their product?

2.     Do the personnel selling activities of Emenites have significant impact on the volume of sales of Emenite products?

3.     Are the sales forces of Emenite properly motivated?

4.     What method do Emenite use in compensating it sales people?

5.     Do personal selling activities have any impact on the profit of Emenite

1.5    SIGNIFICANCE OF THE STUDY

The researcher considers the study very significant on the following bases.

        The consumers and customers of Emenite will benefit from the study since if the recommendations of the research are carried out, it will help the company serves them better.

        Furthermore, the significance of this study is that it helps the researchers to understand and be able to differentiate between the ordinary sales person and the professional salesperson and to other research as a topic for continual research work in the field of study.

        The finding of the study will enable the industries specifically Emenite Nigeria Plc Enugu to solve their sales problem and correct whatever mistakes they have made or are still making inline with their business operations.

        From the result of the findings individuals or firms prospecting to go into industrial product production or investment who are interested in investing their money in industrial production will have additional information on personal selling as a channel or sales of industrial product.

1.6    SCOPE OF THE STUDY

The research for this study would have been nationwide but due to time and other constrain, it was limited to Emenite Nigeria Plc Enugu.

1.7    DEFINITION OF TERMS

Some terms used in the study are defends for purpose of understanding.

DYAD:       This is the smallest possible group of two or more interesting group (Nebo 1997; 512).

Industrial Goods:      This are goods destined to be sold for the purpose of output for further production of other goods and services Ozo and Odo (1999 : 214).

Market Share:   This is a firm’s percentage of the industries total sales.

Market Potential:      This is the maximum sales potential for all sellers of a product or service over a fixed period (Udeagha 1999 : 224).

Personal Selling:      This is just a direct personal contact with present and prospective customers for the purpose of selling customer need of goods and services (Udeagha 1999: 214).

Sales Quota:     This is a share of the company’s overall sales job that is assigned to some marketing unit as a means of evaluation of sales activities, it’s planning and control (Edoga 2000 : 115).

Selling:        This is the act of persuading prospective buyers to buy goods and services from which they can derive suitable benefits thereby increasing their total satisfaction (Edoga 2000 : 18)

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