THE IMPACT OF PERSONAL SELLING IN THE MARKETING OF BEVERAGES IN ENUGU STATE
(A STUDY OF MILO PRODUCT OF NESTLE NIGERIA PLC)
The importance of personal selling can not be over emphasized. This has informed this study which is on the impact of personal selling on the marketing of beverages. A study of Milo. The objective, the study among other things include:
- To find out whether personal selling strategy adopted in the marketing of Milo has any significance impact on the sales volume of the product.
- To determine whether the personal strategy adopted in the marketing of Milo is adequate.
Based on this indepth literature review was conducted on materials and data were also sourced using questionnaire and personal interview. The population of study include consumers of Milo dealers and employees of Nestle makers of Milo. Statistical techniques and method such as Topman and Bourley’s formular were used to determine the sample size while tables and percentages were used for the analysis. Data collected were clinically analyzed and in the testing of hypothesis formulated. Thus the following findings were made. That personal selling strategy adopted in the marketing of Milo have positive impact on the performance of the product. That personal selling strategy builds goodwill for both the company and it’s product. In the light of this recommendations were made on how to effectively and efficiently exploit the benefits of personal selling strategy particularly in the marketing of Milo within Enugu metropolis.
TABLE OF CONTENTS
Title page - - - - - - - - - i
Approval page - - - - - - - - ii
Dedication - - - - - - - - iii
Acknowledgement - - - - - - - iv
Abstract - - - - - - - - - v
Table of contents - - - - - - - vi
INTRODUCTION - - - - - - - i
1.1 Background of the study - - - - - 1
1.2 Statement of problems - - - - 5
1.3 Objectives of the study - - - - - 7
1.4 Formulation of hypothesis/Research questions -8
1.5 Significance of the study - - - - - 10
1.6 Scope of the study - - - - - - 11
1.7 Definition of terms - - - - - - 11
REVIEW OF RELATED LITERATURE - - - 13
2.1 Concept and meaning of Personal selling - - 13
2.2 Personal selling as a promotional tool - - 15
2.3 Personal selling position - - - - - 17
2.4 Personal selling functions - - - - 20
2.5 Personal selling process - - - - - 21
2.6 The role of personal selling in the marketing
of beverages - - - - - - - 33
2.7 Prospects of personal selling - - - - 35
2.8 Characteristics of sales force - - - - 37
2.9 Information gathering function of the sales person 41
2.10 Tasks perform by sales person - - - - 50
2.11 Personal selling strategies - - - - - 55
RESEARCH METHODOLOGY - - - - - 58
3.1 Sources of data - - - - - - 58
3.2 Population of study - - - - - - 59
3.3 Sample size determination - - - - 59
3.4 Sample size - - - - - - - 62
3.5 Research instruments used - - - - 62
3.6 Validity of research instrument used - - - 63
3.7 Method of data analysis - - - - - 63
3.8 Limitation of the study - - - - - 64
PRESENTATION AND INTERPRETATION OF DATA - 65
4.1 Data presentation and interpretation - - 69
4.2 Test of hypothesis - - - - - - 70
DISCUSSION OF FINDINGS, RECOMMENDATIONS AND CONCLUSION - - - - - - - - 74
5.1 Summary of findings - - - - - 74
5.2 Recommendations - - - - - - 76
5.3 Conclusion - - - - - - - 77
Bibliography - - - - - - - 78
Appendix- - - - - - - - 79
Questionnaire administration and response - 80
LIST OF TABLES
Table 4.1: Allocation and Returned of Questionnaires 65
Table 4.2: Customer of Milo - - - - 65
Table 4.3: Respondent Point of Purchase of Milo 66
Table 4.4: Preference factor Milo - - - 67
Table 4.5: Sales persons attitude to Customers 67
Table 4.6: Impact of Personal Selling Strategy in Increase Sales - - - - - - 68
Table 4.7: Response Rate on whether Personal Selling Encourage consumers Patronage - 69
1.1 BACKGROUND OF THE STUDY
Personal selling which is one of the function of marketing is very important in the business and marketing life of an organization. It involves the face to face communication of information from a seller to a prospective buyer for the purpose of facilitating exchange for the mutual satisfaction of both parties.
It has long been recognized as the oldest and probably the most important component of the promotional mix, it’s age can be ascertained by the fact that word of mouth and recommendation by others long in existence as a method of wining somebody over to some idea.
A curious objective of Nigerian society and habits will reveal that selling is a major and ubiquitous economic activities, it would probably not be wrong to describe Nigeria as a nation of salesmen and women.
Virtually every house in Nigeria has a room that serve as a shop, this addition to numerous kiosk dotted all around the towns and villages and the hundreds of thousands of hawkers that are virtually part of the Nigeria landscape. Selling is thus a job which the Nigeria takes seriously but paradoxically, the professional sales man whom the seller looked down open, various resources adduced for this, firstly, the generally how educational qualification of most of the salesmen.
Secondly, there is the fact that the outward appearance of these salesmen is at best scruffy and finally there is general feeling of insecurity which makes the average Nigeria suspicious of any unvisited visitor who is often assumed to be a potential armed robber.
Inspite of all this, there is little doubts as to be critical role which personal selling, if properly applied could play in the fortunes of a company, particularly, a company operating in the industrial market.
The importance of personal selling is inherent in it’s nature which involves the use of salesmen who would usually be quite flexible in putting across their message to ensure that it confirms to the peculiar needs and idiosyncrasies of their audience.
Another aspect of personal selling which demonstrates it’s special nature is it’s lack of impersonality. This quality means that there is the possibility that the commercial in a largely friendly and relaxed atmosphere is focused on general marketing strategies with an emphasis on when marketing and promotional strategies should be personal selling driven or advertising driven, according to Edoga (1997 – Principles and practice of selling). Most firms, however employ both promotional mixes when this is the case, it is important to determine the most effective way to integrate personal selling and advertising efforts.
One typical approach pointed out by Fisenhart (1998: 92 – 97 – Blue ocean strategy) is to use advertising to generate company’s and product awareness and to identify potential customers. These sales leads are then turned over to the sales force for personal selling attention. The basic objective is to use low cost per-contact advertising to identify prospects while more expensive personal selling efforts are used to turn prospects into customers. The effectiveness of the type of promotional strategy was documented by a study of 2,500 sales people that found mode than 85% of the sales people and received leads from advertising during past year.
A specific example of effective use of advertising and personal selling is the promotional strategy of Nestle to introduce Milo beverages into the market.
The promotional strategy had four objectives.
1) To increase brand awareness by 60%
2) To generate high quality leads for the sales force
3) To increase sales by 10% in six months and
4) To improve sales force morale.
Although a typical approach would be to advertise in trade publications to increase basis and spend considerable time arraying shelves setting up displays, accepting returned merchandise or addressing other problems.
This unique promotional mix has produce strong relationship with retailers and has allowed the company to compete against larger firms, although an emphasis on personal selling in the beverage market is type at this time changes in technology indicate that personal selling may become more important in non-traditional business during the next few years as commented in sales technology increased importance of personal selling.
1.2 STATEMENT OF PROBLEM
Personal selling which is one of promotional tool that any firm or company can adopt in the marketing of its product whether in the consumer market or industrial market is a vital promotion instrument in the marketing of beverages particularly in the marketing of Milo by Nestle Plc. This resulted into various selling positions taken by sales person at different retail out lets for the product. These potions are either as order takers (counter sales persons) or order (missionary sales persons).
The market for this product Milo attracted the combinations of the marketing promotional mix which include advertising, sales promotion, personal selling, publicity and public relations of these promotional mix, personal selling strategy been to be the most vital promotion tool that is being used taken cognizance of the products position within the product life cycle. Thus, in every retail outlets where the product brand is sales persons are seen performing various selling function wither in order takers, or getter etc.
Some striking questions one needs to ask taken cognizance of other factors that may bear on the performance of a product, what impact does personal selling bear on the marketing of Milo, does it have any positive candid answers to these and many more. This study will critically evaluate the impact of personal selling in the marketing of Milo product by Nestle Company.
1.3 OBJECTIVES OF THE STUDY
The objectives of the study among other things includes the following:
1) To determine the impact of personal selling on the marketing of Milo.
2) To evaluate the personal selling strategy adopted in the marketing of Milo
3) To find out whether personal selling strategy adopted in the marketing of Milo creates awareness for the product
4) To determine whether personal selling strategy adopted in the marketing of Milo has any significance impact on the sales volume of the product.
5) To determine whether the personal selling strategy adopted in the marketing of Milo has any significant impact on the profitability of the product.
6) To determine whether the selling strategy adopted in the marketing of Milo is inadequate or not.
7) To recommend possible ways of improving on the personal selling strategy adopted in the marketing of Milo.
1.4 FORMULATION OF HYPOTHESIS/RESEARCH QUESTIONS
Ho1: Personal selling strategies used in the marketing of Milo do not have any significant impact on the sales volume of the product.
Hi2: Personal selling strategies used in the marketing of Milo have any significant impact on the sales volume of the product.
Ho2: Personal selling strategies used in the marketing of Milo do not have any positive impact on the profitability of the product.
Hi2: Personal selling strategies used in the marketing of Milo have any positive impact on the profitability of the product.
Ho3: Personal selling strategies used in the marketing of Milo have negative impact on consumer patronage of the brand.
Hi3: Personal selling strategies used in the marketing of Milo impact positively on consumer patronage of the brand.
Ho4: Personal selling strategies used in the marketing of Milo have no significant impact in creating consumers satisfaction for the product.
Hi4: Personal selling strategies used in the marketing of Milo have significant impact in creating consumers satisfaction for the product.
1.5 SIGNIFICANCE OF THE STUDY
No research work is a mere pre-exercise therefore the study will be of great benefit to the following:
First and foremost, this study will be of benefit to the company (Nestle Nigeria Plc) and marketers of Milo as it will indicate the effects and defects of using personal selling as a promotional strategy.
Again, the study will be of significance to the consumer of Milo as it reveals positive ways of building and cementing sales person-customer relationship which will invariably increase customer satisfaction.
Besides, both the researcher and the readers will gain an indepth understanding and knowledge from the information contained in the study which will stir up further studies.
1.6 SCOPE OF THE STUDY
The scope of the study defines the limits of the investigation to be carried out. In view of this, the study will critically investigate the impact of personal selling in the marketing of beverage particularly the effect or the customer patronage sales volume and profitability.
Due to time and resources, constraints, they will be limited to Enugu metropolis.
1.7 DEFINITION OF TERMS
Personal selling: Contact with the customer, answering questions and trying to close sale personal selling is a face-to-face sales presentation by a persona called seller to another called the buyer.
Strategy:Strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
Brand: A type of product manufactured by a company under a particular name. brand is a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.
Product: A product is anything that can be offered to market that might satisfy a want or need.