EFFECTIVENESS OF PERSONAL SELLING STRATEGIES IN MARKETING OF COSMETICS
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EFFECTIVENESS OF PERSONAL SELLING STRATEGIES IN MARKETING OF COSMETICS
ABSTRACT
This study focuses on the effectiveness of personal selling in the marketing of cosmetics. It is necessitated by managerial confusion about the source of the recent decline in sales volumes and profitability. This leadership hesitation gave rise to suspicions about the effectiveness of the sales team, with a focus on the Bianca cosmetics company.
The data for the study were gathered using questionnaires and oral interviews.
The study’s hypothesis was examined using the chi-squared test. After analysing and evaluating the theory, the researcher came to the following conclusions.
1. The sales expense-to-volume ratio is low.
2. The ratio of sales calls to sales volume is very high.
3. There is a substantial correlation between present and previous sales performance.
4. Most sales calls result in a sale.
5. Bianca Cosmetics’ management compensates employees with a straight salary plan.
6. The organisation used the services of both polytechnic and university graduates to carry out its sales tasks.
7. Person selling has positively impacted the company’s profit returns.
8. It was determined that personal selling is highly beneficial to customers.
9. It was determined that customers are delighted with Bianca Cosmetics’ marketing efforts.
10. Customers believed that the salespeople
are trained to carry out marketing tasks.
11 Customers believe that salespeople are unduly persuasive in carrying out their selling tasks.
12. It was discovered that the price of the Bianca product is reasonable for its quality.
13. It was determined that the administration of Bianca Cosmetics generally provides credit to its customers.
Based on their findings, the researcher issued the following recommendations:
1. Management should engage in consumer research.
2. Bianca Cosmetics’ management should work to build a market intelligence section.
3. The importance of an excellent sales team in the promotion of cosmetics cannot be overemphasised.
4. Salespeople should strengthen their after-sales services.
5. Bianca Cosmetics’ management should organise sales promotions and public relations initiatives for their sales staff on a regular basis.
Chapter one
INTRODUCTION
1.1 Background of the Study
According to L.A Rogers (1980), personal selling has become one of the most important promotional methods in marketing. He backed up the above thesis by stating that after all of the theorists and planners have had their say and the problems with production, finance, and labour have been overcome, someone must go out and knock on someone’s door and sell.
This discovery appears to be acceptable because a product cannot be produced in Enugu and is unavailable in places like Lagos, where such a thing is in high demand.
This is the significance of sales contention, which states that they should examine consumers’ demands while also satisfying them and maximising profit objectives.
A close examination of the preceding statement reveals the significance of the success of personal selling in cosmetics marketing. A product may be of the highest quality, but it is useless until it reaches the hands of prospective consumers, and the most appropriate method for getting things from the producing arena to the hands of possible buyers is through personal marketing.
Personal selling is dynamic, adaptable, and turbulent. Traditionally, it has been connected with business transactions, which have moved through distinct eras, such as those of early traders, American peddlers, and professional salespeople.
Early traders can be found in most ancient cities. Some of the oldest governments’ economies were based primarily on trade with other societies. Traders often own the things they sell,
which were made by themselves or their close families. They occasionally undertake marketing responsibilities such as transportation and storage, in addition to selling obligations.
During the colonial era, American peddlers were free to sell their goods to the then-settlers. The majority of these setters were immigrants who saw their occupations as one of the few opportunities for a fresh start in a new country.
Professional selling began immediately after World War 11. As a result, the economy transitioned from a sellers’ market to a buyers’ market, with sufficient supplies of goods. The 17th century industrial revolution encouraged the establishment of a number of new industries, including cosmetic industries.
The industries produced a variety of products with middling qualities. Many industries functioned under the premise “that customers will buy any product provided it can be supplied” at the time.
Goods had to be sold primarily because consumers now had more options, and selling had to adapt dramatically in order to resist this new reality.
Bianca Cosmetic Industry is located at No. 1 Temple Avenue in Enugu. It was founded in 1996 by Mrs. Bianca Odinaka Ojukwu (Managing Director). She was married to His Excellency Ikemba Odumegwu Ojukwu from Nnewi and has children. She was the first beauty contestant. She began as a small business and eventually expanded into a distributor.
Her items are now supplied in cities including as Lagos, Abuja, and Port Harcourt. In fact, Bianca’s products are now available across the nation and beyond. It has established itself as a leader in Nigeria’s cosmetic sector, with a transparent image.
The progress and high demand for the product is a partial reason for the industry’s increase in product capacity in previous years, and this also created room for the absorption of more workers in the divergent department, thereby helping to reduce the high rate of social menace that would have been associated with the situation of mass unemployment. However, the aforementioned industry, which had reached its pinnacle in the cosmetic manufacturing industry, has begun to experience a decline in both sales volume and market share.
According to an insider, this experience is the result of several recent advancements. Some of these include the ever-increasing number of industries involved in the production and sale of various types of cosmetics, as well as the increased and efficient use of various promotional methods.
Thus, the management of Bianca Cosmetics is not sceptical about the wonders of personal selling in cosmetics marketing, and that this promotional tool can only justify its wonders in cosmetics marketing if it is effective. To that end, the management is interested in knowing whether the sales force is effective or not. This is the study’s central focus.
1.2 Statement of the Problems
The Bianca cosmetic sector has recently seen a drop in sales volumes. This low sales volume is due to intense rivalry in the market in terms of product quality, customer service, and effective use of promotional methods.
This is a stark contrast to what the company has seen in prior years. The cause of other major problems, such as lower profitability, poor market share, and a decrease in promotion and employment rates, is still unknown to the company’s management. However, the company’s management significantly questions the sales force’s efficacy.
The specific challenges that will be addressed are:
– Is the sales expense/volume ratio excessive or low?
Is the sales-to-call ratio high or low?
1.3 Objectives of the Study
Whatever the type and structure of an organisation, personal selling has been recognised as the foundation of its success against fierce competition. This allows the company to raise more funds for its operations.
The aforementioned fact is the fundamental reason for the large budget allocated on a regular basis to the sales divisions. To this purpose, the study objectives
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