of cusses on the effectiveness of personnel selling in the marketing of capital
goods. It is necessitated by managerial uncertainty with regard to the
cause of the aforementioned redirection in sales volumes and profitability in
recent times. This managerial indecision created a room for its suspicion
as to whether the sales force was effective or otherwise.
In other to
find an appropriate solution to the prevailing predicaments, a pilot survey was
carried out and its result was organized in a report.
contains a general discussion of the marketing concept and personal selling as
a promotional tool. It went further to state the problem to be studied
and why this study was carried out, the scope and limitation of the study and
finally and hypothesis and the definition of terms.
A number of
past related literature examined by other studies as it relates to the
effectiveness of personal selling in marketing of capital goods are highlighted
in chapter two.
three deals with the design of the study, the methods used in collecting
relevant data. It also deals with way the questionnaires were distributed
and treatment of data.
got, from the research survey were analyzed and interpreted. Also similar
question on both questionnaires were compared in chapter four.
the summary of findings, conclusion on the research and recommendation made by
the researcher are all in the chapter five.
BACKGROUND OF THE STUDY
STATEMENT OF THE PROBLEM
OBJECTIVES OF THE STUDY
FORMULATION OF HYPOTHESIS
SIGNIFICANCE OF THE STUDY
SCOPE OF THE STUDY
LIMITATION OF THE STUDY
DEFINITION OF TERMS
REVIEW OF RELATED LITERATURE
PERSONAL SELLING DEFINED
DEVELOPMENT AND ORIENTATION
PERSONAL SELLING PROCESS AND ITS APPLCIATION TO INDUSTRIAL SELLING
PERSONAL SELLING STRATEGIES IN MARKETING (OF CAPITAL GOODS)
IMPROTANCE OF PERSONAL SELLING RELATIONS TO OTHER PROMOTIONAL
RESEARCH METHODOLOGY AND DESIGN
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
SUMMARY OF FINDING, RECOMMENDATION AND CONCLUSION
SUMAMRY OF FINDINGS
1.1 BACKGROUND OF
According to L.A. Rogers (1980) personal selling has become one of
the vital promotional tools in marketing. He further buttresed the above
proposition by stipulating that after all the theorists, planners must have had
their moment and the predicaments associated with production, finance and
labour have been resolved, then someone has to go out and knock at someone’s
door and sell.
This revelation is apparently acceptable because a product cannot
be produced at Enugu and is not available in place like Lagos where such
product is highly needed. This is the significance behind the notion of
sales contention that, they should investigate into the needs of consumers as
well as filling them with satisfaction and maximize profit objectives.
A critical analysis of the above statement highlights the
importance of the effectiveness of personal selling on the marketing of capital
goods. A product may be of extremely high grade bu8t has no utility until
it gets to the hands of prospective buyers, and the most appropriate route for
passing products from manufacturing arena to the hands of potential buyers
happens to be through personal selling.
Personal selling is dynamic, flexible and volatile.
Traditionally, it is mainly associated with commercial transactions which has
passed through distinct eras that are characterized as, the eras of the early
traders – the American peddlers and the era of the professional sales
people. The early traders exist in most ancient cities. Some of
these earliest states based the primary portion of their nomies on trading with
other communities. Trades typically have the ownership of the goods being
sold, manufactured either by themselves or their immediate families. At
times, they perform their marketing functions like, transportation, and
storage, in addition to selling obligations.
The American peddlers of the colonial era enable them sell their
goods to the then settlers. Most of these settlers were immigrants who
view their respective jobs as one of the available means of getting a fresh
start in a new country. Professional selling started shortly after the
World War II. Under this seen, the economy switched from the previsions
situation of sellers’ market to that of buyers’ market in which goods were
plentiful in supply. Due to the industrial revolution of the 17th century which encourage the birth
of a number of new companies of which capital goods companies were among.
The companies had varieties of products with moderate qualities. A
s at the said era, many industries operated under the philosophy “that the
customers will buy any product provided it can be supplied” goods had to be
marketed mainly for the facts that consumers now have choices and the selling
adopted a radical change to reject this new seen.
MB Anamco is a global and also a franchising company whose head
quarter is a Germany with its subsidiary manufacturing plant located at Emene
Industrial Layout here in Enugu State. It started its operation around
1980. As the company began to experience increase in productivity and
sales volumes, it started opening sales branches in different states of the
country. It has been a leading firm in the motor industry with
Anambra Motor Company at its inception was not hing but a mere
motor assembly plant, but the prevailing situation with the company has changed
drastically from a mere assembly plant to a manufacturing company.
The progress and high demanded of the product is a partial brain
behind the company’s elevation in product capacity in previous years, and this
also created rooms for the absorption of more workers in the divergent
department, thus helped to reduce the high rate of social menace that would
have associated the situation of mess unemployment.
However, the aforementioned company, which hit her to had attained
the peak in the motor manufacturing industry, has started experiencing a
divindling ground in its sales volume and market share. According to an
insider, this experience is accounted for by a number of recent, developments.
Some of era, the incessant increase in the number of companies currently
involved in the manufacturing and sales of different cars, buses, truck, etc,
and besides the increase and efficient application of the divergent promotional
Thus, the management of Anamco is not skeptical regarding the
wonders of personal selling in the marketing of capital goods and that this
promo tool could only justify its wonders in capital goods marketing, only when
it is effective to this end, the management is interested in knowing of the
sales force is effective or otherwise. This is the core of the study.
STATEMENT OF THE PROBLEMS
Anambra motor company has started experiencing
a reduction in its sales volumes in recent times. This how sales volumes
is caused by a keen competition that exist in the industry as regards the
quality of the product, customer service and effective utilization of promo
tools. This is a direct opposite of what the company sued to witness in
the previous years.
The reason for the low sales volumes leading to other serious
problems like reduced profitability, low market share, and reduction in the
rate of promotion as well as that of employemtn is still unknown to the
management of the company. However, the company’s management is seriously
questioning the effectiveness of the sales force.
THE SPECIFIC PROBLEMS TO BE ADDRESSED ARE:
- Is the ratio of sales to sales call high or low?
- Is the ratio of sales expense to sales volumes
high or low?
OBJECTIVES OF THE STUDY
Whatever the nature and structure of an organization, personal
selling has been acknowledge as the bedrock of its success over cutthroat
competition. Thus enabling the company to generate more foods for its
The aforementioned fact is the primary reason behind the huge
amount budget on regular bases into the sales departments. To this end,
the objectives of the study are:
- To verify of the ratio of sales expense to sales
volume is high or low to warrant further budget into the activities of the
- To see what can be done by management to change
a situation of high cost of sales returns
- To determine whether the ratio of sales calls to
sales volume s is high or low.
- To see how a situation of high sales calls to
sales volumes can be reversed.
FORMUALTION OF HYPOTHESIS
This study is meant to verify the effectiveness of personal
selling in the marketing of industrial (capital) goods. To this regards
the following hypothesis are formulated:
The ratio of sales expense to sales volumes is not high
The ratio of sales calls to sales volumes is high
There is a low ratio between current and past performance.
SIGNIFICANCE OF THE STUDY
According to the public relations management of Anamco in Enugu
office, the company has been and will continue to demonstrate its corporate and
social responsibilities. This is in justification with Brown’s Contention
of (1974). He said if a company is to continue ensuring its consumers
patronage, that it has no other alternative than the maintenance of a clear cut
competitive advantage, and managing the marketing mix in a manner that will
ensure continuous customers’ satisfaction. Mercedes Benz Anamco has been
and will continue to strive harder in the area of corporate social
TO THIS REGARD, THE SIGNFICANCE OF THIS STUDY IS TO FULFILL THE
- Make recommendation to the management of Anamco
based on how to overcome the problems of low sales volume as well as that of
high sales expenses to sales volume ratios.
- It is also the primary view of the researcher
that both current as well as potential researchers will finds this work of
utmost importance with regard to directing and facilitating the bearing and
solution to their problems.
- The study will also be of help to other
companies in the same industry with Anamco in their strife’s to surmount low
sales volumes and profitability.
SCOPE OF THE STUDY
The scope of this study is very wide of it has to be carried out
in all branches and all the departments in Nigeria. Thus, the study will
cover only members of the sales departments, cost accounting sections as well
as some members in the financial sector in Enugu State, which is located in the
eastern part of the country. The findings may not reflect the situation
in the whole branches, but by and large, what happens in Anamco Enugu can be
said to apply to Lagos branches and others.
DEFINITION OF TERMS
The following terms used in this study
should be taken to mean the following:
Marketing is defined as, a societal process by which individuals and groups
obtain what they want and need through creating, offering and freely exchanging
products of value with others.
Promotional tools include all activities or strategies involved in
communicating with a target market of audience. It seeks to inform,
educate, persuade and influence the target audience. These messages could
be sent through advertising, personal public relations (the promo tools).
PERSONAL SELLING: Personal selling is a face to face
presentation of sales. It is a personal contact between the seller and
the buyer for the purpose of making a sale. It is characterized by verbal
exchange, gesture which allows for flexibility and adjustment of messages to
suit buyers needs, interest and reactions.
goods are those goods that are technical in nature which is purchased on the
basis of specifications for production of other goods or rendering further
TERMS AND CONDITIONS APPLY
For more informations on project materials and more