Full Project – EFFECT OF PERSONAL SELLING ON SALES GROWTH

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Personal selling is an important component of the overall marketing strategy of an organization. According to Adamu (200) personal selling is the presentation of a persuasive message by selling to a potential customer or group of customers, personal selling can also take place through personal correspondence telephone conversation or email.

Personal selling is an effective communication with potential buyers of a product with the intention of promoting sales. Personal selling may focus initially on developing a relationship with the consumers and potential buyers of a product. This relationship ultimately ends with an attempt to “close the sales” (Okoh, 2009).

The oldest form of promotion is personal selling. It involves the use of a sales force to encourage intermediaries to buy the product or a pull strategy where an organization may be limited to supporting retailers and providing after sales services.

Personal selling is designed to present a form of face-to-face communication, personal correspondence, or a personal telephone conversation, unlike advertising a personal sales message can be justified. For example, the marketing of a sophisticated computer system may require the use of personal selling, while the introduction of a new products are door-to-door selling and home demonstration parties. These two personal selling methods are primarily used for personal care products, cosmetics, cookware, encyclopedias, books, toys foods and other items of special interest to home markets. Ideally, personal selling should be supported by advertising to strengthen its impact. Delivery of a specially desired message to a prospect by a seller usually in the form of face to face communication, personal correspondence, or a personal telephone conversation, unlike advertising, a personal sale message can be more specifically targeted to individual prospects and easily altered if the desired behaviour does not occur.

However, inspite of the importance of personal selling to the overall marketing strategy of an organization, previous studies have indicated that organization do not hold it to a high esteem like other promotional tool. For example Emena (2006) in her study of problem and prospect of personal selling in business enterprise, observed that most companies in Nigeria seldom used personal selling to promote their product or do not channel the required resources to it.

It is against this background that the researcher sees the subject matter worthy of investigation.

1.2 STATEMENT OF PROBLEM

Inspite of the importance of personal selling in sales promotion, scholars in Nigeria have done few empirical investigations on the subject matter. Although a lot of researches on sales promotion study personal selling as a component or segment of such empirical work. This has created a gap in the study of personal selling from a broad perspective (Okoh,2008).

Hence, Personal selling is neglected by so many companies in Nigeria. This is sequel to the fact that personal selling fail to realize its objectives in most companies in Nigeria (Okoh, 2007), this failure may be attributed to the poor capital budget, poor sales management and ineffective sales campaign.

It is against this, that the researcher seek to carry out an empirical investigation on the subject matter to cover this gap

1.3 OBJECTIVE OF THE STUDY

The central objective of this research is to examine the effect of personal selling on sales growth in Dansa food. The specific objectives of the study are:

To determine how personal selling affects sales growth in Dansa food limited.
To find out the effect of personal selling on customer satisfaction and retention
To determine how personal selling affect sales volume in Dansa foods limited.
To identify the problems militating against personal selling in Dansa food limited

1.4 SIGNIFICANCE OF THE STUDY

This study will add to the existing body of knowledge on personal selling on sales growth. As such will be a useful reference materials for incoming students who may wish to undertake a similar study. The study will also be useful to corporate organization, in particular Dansa foods limited in policy formulation regarding personal selling.

1.5 RESEARCH QUESTION

How does personal selling affect sales growth in Dansa food limited Kaduna?
To what extent does personal selling affect customer satisfaction and retention in Dansa Food?
What is the effect of personal selling on sales volume of Dansa food products?
What are the problems militating against personal selling in Dansa food limited?

1.6 SCOPE OF THE STUDY

The study covers an empirical examination of the effect of personal selling on sales growth in Dansa foods limited Kaduna. The study shall cover a time from 2006 to 2011.

1.7 LIMITATION OF THE STUDY

For the fact that the study is restricted to Dangote food limited Kaduna, it is not certain if the same result would be obtained if this research is carried out in another area. for the fact that questionnaire as well as the survey design constitute the instrument of data collection as well as the research design, it is not certain if the same result would be obtained if other research design as well as instrument is used.

Other limitation arise from the non challant attitude of some respondent as well as there uncooperative attitude. Bias exhibited by some respondent made. Them either to exaggerate or under state their responses.

Other limitation include the inability of the research to get adequate literatures on the subject matter.

All these limitation impede the study in one way or the other, hence incoming researcher should take cognizance of these limitations.

1.8 DEFINITION OF TERMS

Personal selling: presentation of a persuasive message by selling to a potential customer or group of customer.

Customer satisfaction: making customer happy by meeting their needs and expectation.

Sales volume: High or low rate of sales

Sales growth: Increase of sales

Customer retention: These are strategies of making customer to stay with an organization and not defecting to another r organization in terms of patronage.

Creating awareness: Establishing means of informing customers about the existence of a product.

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Full Project – EFFECT OF PERSONAL SELLING ON SALES GROWTH

Full Project – EFFECT OF PERSONAL SELLING ON SALES GROWTH

Full Project – EFFECT OF PERSONAL SELLING ON SALES GROWTH

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