CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Udeagha (1999,227) 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 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.

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 (1998:91).

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 i.e. persuading others to buy your preposition.  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 effort, 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.

Odo (2003:121) noted that for personal selling to be effective the personal salesman has to have indepth 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 salesman uses 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 used 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. 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 absolved 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 that it was 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 listener to customer’s complaints.  They do not consider the customer analysis and the handling of objection are ignored.  Emenite Nigeria Plc is not an exception the company, which started very well is now faced with competition that is fierce and cut throut coupled with the income of the customers of Emenite Nigeria Limited, thus no doubt have impacted negatively on sales of the company.  This research work is focused on the marketing of industrial product by personal selling specifically Emenite Nigeria Limited.

1. 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 using Emenite as company, other objectives are:

1. To find out if personal selling activities of Emenite creates customer awareness of their product.
2. To determine the impact of personal selling on increasing the sales volume of Emenite.
3. To aware whether the sales forces of Emenite Company are properly motivated.
4. To find out method used in comparing sales people in Emenite.
5. To what extent selling impacts on the profit of the company.

1. HYPOTHESIS FORMULATION

To give focus to this study the following hypotheses were formulated.

H01:   Personal selling activities of Emenite Nigeria are not effective in creating customers awareness of their products.

H1:     Personal selling activities of Emenite Nigeria are effective in creating customers awareness of their products.

H02:   Personal selling activities of Emenite do not lead to increased sales.

H2:     Personal selling activities of Emenite lead to increased sales.

H03:   Personal selling activities of Emenite do not impact positively on the profit of the company.

H3:     Personal selling activities by Emenite impacts positively on the profit of the company.

1. 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 serve them better.

Furthermore, the significance of this study is that it help the 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 Emenite Nigeria Plc Enugu to solve their sales problem and current 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. 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. DEFINITION OF TERMS

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

DYAD

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

INDUSTRIAL GOODS

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

INDUSTRIAL MARKETING

This is the marketing of industrial goods and services to industrial users Ozo & Odo (1999:141).

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 to 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).

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 (EDOGA 2000:18).