Project Topic:
PERSONAL SELLING STRATEGIES AND INDUSTRIAL GOODS MARKETING (A CASE STUDY OF JAMIL MOTORS LTD)
Table of Contents
Title Page i
Declaration iii
Certification iv
Dedication v
Acknowledgement vi
Abstract vii
Table of Contents viii
CHAPTER ONE 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Research Question 5
1.5 Research Hypotheses 5
1.6 Significance of the Study 5
1.7 Scope of the Study 6
1.8 Limitation of the Study 6
1.9 Definition of Terms 7
CHAPTER TWO 8
REVIEW OF RELATED LITERATURE 8
2.0 Introduction 8
2.1 Conceptual Framework 8
2.1.1 Concept of Personal Selling 9
2.1.2 Dimensions of Personal Selling 10
2.1.3 Concept of Marketing Performance 13
2.1.4 Measures of Marketing Performance 14
2.1.5 Personal Selling and Marketing Performance of Industrial goods 17
2.2 Theoretical Framework 18
2.2.1 The game theory (Neumann and Morgenstern, 1944). 18
2.3 Review of Empirical Studies 19
2.4 Summary of Literature Review 21
CHAPTER 3 22
RESEARCH METHODOLOGY 22
3.1 Introduction 22
3.2 Research Design 22
3.3 Population of the Study 22
3.4 Sampling Techniques Used 22
3.5 Sample Size 23
3.6 Source of Data 23
3.6.1 Primary Source (s) of Data 23
3.6.2 Secondary Source of Data 23
3.7 Research Instrument for Data Collection 23
3.8 Validity and Reliability of Instrument 23
3.9 Techniques for Data Analysis 24
CHAPTER FOUR 25
DATA PRESENTATION AND ANALYSIS 25
4.1 Data Presentation and Analysis 25
4.2 Data Analysis 26
4.3 Hypotheses testing 31
4.4 Discussion of Major Findings 33
CHAPTER FIVE 36
SUMMARY, CONCLUSION AND RECOMMENDATION 36
5.0 Introduction 36
5.2 Summary 36
5.3 Conclusions 36
5.4 Recommendations 37
References 39
Appendix I 41
Appendix II 42
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Personal selling is simply to make a sale on individual’s basis. Sales person serves as the link between the selling and buying system (Kotler, 2013). Today, sales persons are required to have more education and technical training than their predecessors. Sales people have many resources at their at disposal and are better equipped to develop long term relationship with buyers. They are backed by a team of specialists, including market researchers, financial experts and engineers. Salesman of today are very good diagnosticians of customers needs and they are also problems consultants who make well considered recommendations. They (sale people) are at home to all facets of a prospective customers business that will in any way relate to the goods and services to be sold (Adebesi, 2006).
Adebesi,(2006). 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 (Adebesi, 2006).
Discussing the importance of selling Adirika (1993) defined selling as the process of including 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 thorough 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 existence has made it imperative for marketing organization to go for more sales persons (Akinyi, 2011).
Personal selling is 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 (Musyoki, 2009).
To generate sales and profits, the benefits of products have to be communicated to customers. In marketing, this is commonly known as “promotion”. However promotion is not only conducted for these factors but for others such as to build brand loyalty, to remind and reassure costumers, to launch a new product and to defend market share by responding to competitors’ campaigns with their own advertising (Kotler, 2013). The organization has to convey the message about the product on offer to its consumers. This helps in sustaining a perennial demand for the product and in suitable positioning among the target audience (Adebesi, 2006). It is very important for organisations to carry out personal selling for every product in order to be drawn the attention of the market and its benefit identified. The aim of an organization’s personal selling strategy is to bring existing and potential customers to a state of relative awareness of the organization’s product and to a state of adoption.
According to Orji (2010) industrial products are any product that is bought by an organization’s purchasing agent or by middle men in order to resell them, or to undertake some other exchange related activities.
Industrial products are no sold to final consumer for ultimate consumption. They are goods sold primarily for use in producing other goods or rendering services or running of a business.
Many people have carried out researches to find out if personal selling has influence on sales. For instance, Akinyi (2011) carried out a research and found out that indeed personal selling had effect on sales which turned out to be different from the findings of Musyoki (2009) who found out that there is no significant difference effect on sales. However, the difference may have been caused by geographical difference as Akinyi carried out her research in rural setting while Musyoki carried out research in town setting. Akinyi’s finding was also the same as Kivuva, (2003) that, those products which are on personal selling tend to have more demand than those which do not. Due to different findings which may have been caused by use of different organizations and geographical differences, the researcher needs to find out if personal selling can have influence on sale of industrial goals in Jamil Motors Port Harcourt. According to Akinyi, firms therefore need to persuade customers to buy their products and maintain such customers. In selecting appropriate method to apply the groups must consider the target audience, the stage of the products life cycle, characteristics of the products, decision stages of the products and the channel of distribution (Kotler, 2013).
1.2 Statement of the Problem
Personal selling remains a cornerstone that assist firms to build strong customer relationship; increase in sales volume, customer retention, the needs, taste and preferences of customer, stimulating demand of a firm’s products. Through personal selling, information is provided about the relevant of products/services in order to reduce the risk involved in purchase and use; create awareness, arouse desire and interest.
Personal selling implies direct communication with customers. This is the process of developing relationship, through identifying customers’ needs, designing and providing products based on these needs, as well as tailoring marketing communication strategies that facilitate his purchase decision making process.
Through critical observation it has been noticed of stiff competition (maintaining customer relationship, retention, sales volume) in the banking industry and customers (prospective / actual) are usually faced with an abundance of choice. It seems that personal selling remains an essential marketing tool in assisting firms to remain relevant in the market place, possess competitive advantage, enhance productivity (customer relationship, customer retention, sales volume, product or service awareness, stimulating demand). This study intends to reveal the effectiveness of personal selling strategies and industrial goods marketing in Jamil motors, Port Harcourt.
1.3 Objectives of the Study
The main objective of the study is to examine the relationship between personal selling strategies and successful marketing of industrial goods in Jamil motors. The specific objectives are as follows:
1 To examine the extent to which face to face interaction influence marketing of industrial goods.
2 To examine the relationship between mutual relationship adopted and marketing of industrial goods.
3 To determine the extent to which retail selling adoption create awareness of industrial goods.
1.4 Research Question
1. To what extent to does face to face interaction influences the marketing of industrial goods?
2. To what extent does mutual relationship adopted enhances the marketing of industrial goods?
3. What is the extent to which retail selling adoption create awareness of industrial goods?
1.5 Research Hypotheses
Based on the objectives of the study, the following hypotheses were postulated to guide the study.
H01: There is no significant relationship between face to face interaction and the successful marketing of industrial goods?
H02: There is no significant relationship between mutual relationship adopted and the successful marketing of industrial goods?
H03: There is no significant relationship between retail selling adoption and the awareness of industrial goods?
1.6 Significance of the Study
The researcher considers the study very significant on the following bases.
The consumers and customers of Jamil Motors will benefit from the study since the recommendations will help the company serve them better.
Furthermore, the significance of this study is that it will help researchers to understand and be able to differentiate between the ordinary sales person and the professional sales person 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 Jamil Motors to solve their sales problem and correct whatever mistakes they have made or are still making in line 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 for sales of industrial product.
1.7 Scope of the Study
The study is delimited under the following heading: content scope, geographical scope and unit of analysis.
Content Scope: The content scope of this study involves an investigation to ascertain the relationship between personal selling and marketing of industrial goods. The dependent variable is successful marketing; measured by Increase sales, market share and profitability. While independent variable is personal selling measure by face to face marketing, mutual relationship and direct mailing.
Geographical Scope: This study is delimited in Port Harcourt Metropolis with references to Jamil Motors.
Unit of Analysis: The unit of analysis in this research involves both senior and Junior staff of Jamil Motors at the time of carrying out the study. The scope of this study is to ascertain the relationship between personal selling and sales of capital equipment in Jamil Motors. Hence, it is a micro level study.
1.8 Limitation of the Study
There are some factors, any circumstances that often constitute a limitation to every research. In these research work however, we are envisaging few factors that may be a limitation in this study. It is important to rate that the major variables of this study are dependent variables and independent variables. There are numerous dimension measures of the two variables which may be academically impossible to exhaust in a single research work. Also the study involves collecting data from a primary source which would be a state of the mind data.
Academically, the firm of data has the research. Hence we are limited to believe every information provided by the text unit.
1.9 Definition of Terms
Some terms used in the study are defined for purpose of understanding.
INDUSTRIAL PRODUCTS
This is a product destined to be sold for the purpose of output for further production of other goods and services.
INDUSTRIAL MARKETING
This is the marketing of industrial products and services to industrial users.
MARKET POTENTIAL
This is the maximum sales potential for all sellers of a product or service over a fixed period.
PERSONAL SELLING
This is just a direct personal contact with present and prospective customers for the purpose of selling customer need to goods and services.
SELLINGS
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.
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