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.
1.2
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.
1.4 SIGNIFICANCE OF THE STUDY
The significance of this research is
that it will enable the researcher to understand in full, what salesman is all
about and the various ways of improving salesman services by researching into
their problem, it will also improve the practical application of salesman
concept.
To the organization which is Total
Marketing Nigeria Plc, the research findings and recommendations will enable
them see the real effects of personal selling i.e. if it is worth spending all
that money to maintain the sales force and various ways of controlling the
sales people and best way of motivating them when necessary.
On the part of the salesman, it will
give them an idea of what is expected of them and the various remuneration they
should expect from the organization.
To the society, the research will give
the younger ones an idea of what salesmanship is all about to enable them make
decision on their career without mistakes and misconception about the
profession.
To our country in general this research
will increase the right of the consumers. This is so because the research will
show that consumers are king and how the sales representatives try to find out
exactly what the consumers need are and send feed back to the manufacturer on
what to manufacture that will satisfy these needs.
Another significance of this research is
to crystal the marketing concept, which states that marketing concept, is
concerned with identifying and satisfactory consumers need at a profit.
1.5 SCOPE OF THE STUDY
This research covers the various
principles at personal selling and how total Nigeria Plc applies those
principles and concepts to their personal selling activities.
It will deal with only the sales
representatives of Total Marketing Nigeria Plc, Ilorin Zone Western branch,
Ibadan, the research work consists of five chapter.
The first chapter is the introduction
pat it cover the concept of personal selling and its place in the society, it
also contains the statement and significance of study and the scope of the
study.
Chapter two deals with the review of literature
on personal selling. It covers the personal selling principles management of
the sales force and ways of evaluating and controlling them.
Chapter three is the research
methodology. It is concerned with the source of data research population and samples,
research design, data collection instruments and method of data administration.
Chapter four consists of the data
presentation and analysis: it is sub-divided into brief history of total
Nigeria Plc the management of Total Nigeria Plc interview returns, presentation
and analysis testing of hypothesis and discussion of findings.
The last chapter five is the work.
1.6 LIMITATIONS OF THE STUDY
During the course of carrying out this
research work, these are some factors that posed as limitation on this study
and they are as follows:
Time Limitation: because of the study of
the nature of academic programme such as hours of lecture being received as
well as the task of preparing for the examination did not prefer or give
sufficient time for conducting this research works but at the end of it all,
one is able to solve this problem by scheduling time for the research day of
research or project writing and 1 day for resting every week.