THE IMPACT OF PERSONAL SELLING ON THE SALES OF DURABLE CONSUMER GOODS (A STUDY OF ATLSA CARPET WORLD ENUGU)

 

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                                        ABSTRACT

This project is focused on the impact of personal selling on the sales of durable consumer goods of Atlas Carpet World Enugu. It is common knowledge that personal selling as one of the promotional tolls available to a marketer indispensable in the sales of consumer product. In the course of the study the researcher employed exploratory approach to acquire the needed information through the use of questionnaire, personal selling interview and observation. Base on the recommendation the company should boost the sales force performance and the organization profitability. Also more salesman should be employed and give them adequate training and incentive so as to ensure proper coverage of the existing and potential market.

PROPOSAL

This project is focused on the impact of personal selling on the sales of durable consumer goods of Atlas Carpet World Enugu. It is common knowledge that personal selling as one of the promotional tools available to a marketer indispensable in the sales of consumer product. Personal selling enable marketers to tailor their presentation to fit the needs, wants, motives and behaviour of individuals customers to a particular sales approach, personal selling often result to particular purchase. The need for personal selling increases with the complexity of products and services for these reasons, manufacturer like to promote their goods and services through personal selling. Personal selling is unique in nature, the quality include personal confrontation, cultivation of personal relation between the seller and the buyer for immediate response. The degree at which personal selling is used might depends on the nature of product.

The similarities in the consumption and maintenance patterns of durable and capital goods sometimes obscure the dividing line between the two. The longevity and the often higher cost of durable goods usually cause consumers to postpone expenditures on them, which makes durables the most volatile (or cost-dependent) component of consumption. This research work contains the following:

Chapter One:

This part contains; statement of problem, research objective, significant of study.

Chapter Two:

This part of the write up is the view of what various authors have written on the personal selling as one of the important promotional tools in the marketing of durable consumer goods and services. This review is to give the research work a very strong foundation and reliability.

Chapter Three:

The researcher intends to acquaint the reader of this project work with information regarding the procedure of scientific inquirer used in this research work. The researcher will use percentage expression to estimate the population of management salesmen and distributor. The total population of management staff is estimated to be 60 out of which 15 1.6 will be selected as the sample size. Salesperson is estimated to be 40 percentages which 10 person are taken as the sample (14). The distributor and outlet of the company are (1.3) about 90 percentages out of which 30 will be selected as a sample size. This sample size is taken from Enugu metropolis. A stratified random sampling technique will be use in selecting the represent in which each of the sampled of the Atlas Carpet World would be expected to complete the questionnaire.

Research Instrument use in carrying out the research work are; questionnaire, personal interview, observation and documentary source.

Chapter Four:

This section of the study deals with the presentation and analysis of data collected from the field work. The data collected will be presented in tabular forms and expressed in percentages.

Chapter Five:

In this chapter, the researcher wishes to summarize the fact from the investigation provide conclusion and recommendation for further study.

TABLE OF CONTENT

CHAPTER ONE: INTRODUCTION

• Background of the study
• Statement of the problem
• Objectives of the study
• Research questions
• Formulation of hypotheses
• Significance of the study
• Scope of the study
• Definition of terms

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.0 Introduction

2.1 Conceptual framework

2.1.1 Concept of personal selling

2.2 Theoretical framework

2.3 Modern trend in personal selling

2.4 An overview of personal selling

2.5 Role of personal selling on the marketing of consumer goods

2.6 Impact of personal selling on consumer satisfaction and retention

2.7 The importance of sales forecast of the marketing of durable consumer goods

2.8 The nature and functions of sales force leadership for business growth

2.9 Goal setting and suggestion systems

2.10 Consumer research and decision making process

2.10.1 Evaluation of personal selling in marketing of durable consumer goods

2.11 Company profile

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

3.1 Research design

3.2 Sources of data

3.2.1 Primary source of data

3.2.2 Secondary source of data

3.3 Population of the study

3.4 Sample size determination

3.5 Questionnaire allocation and distribution

3.6 Method of data treatment and analysis

3.7 Limitations of the study

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Presentation of data

4.2 Testing of hypotheses

CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

5.1 Summary of findings

5.2 Recommendation

5.3 Conclusion

Bibliography

Appendix

CHAPTER ONE

• INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In modern time especially in Europe and in the United States of America, empirically speaking, the establishment of manufacturing concerns both small and big, had necessitated the working out of means and ways by which such products could be marked, so as to get to the consumers who are the target of the design.

Since it was not easy for consumers to easily patronize without question or doubt about the efficiency of the manufactured products been introduced in the market, these firms had to think out means, methods of guaranteeing consumer loyalty which was not easy to get. One of the designs which firms involved in the production of goods and services was through the instrumentality of advertisement of such goods. Another method of engendering sales as applied by firm came in form of sales promotion. But as it were, these strategies as applied by firms to win customer loyalty was not sufficient, hence the need to try another method.

Baker and baker (1974) asserts that despite the importance of advertising and sales promotion in disseminating information and stimulating interest in products and services, there were many circumstance where personal contact is necessary to effect a sale.

Baker and Baker (1974:246) was of the opinion that most advertising is generalized and so cannot answer all the consumer information needs. Baker and Baker (1974) Further asserts , that , personal selling provides the impact which advertising or non personal selling cannot offer at the individual level. Personal selling and advertising, the author posits, are complimentary activities and their relative importance will vary depending on the number of product and the buying behaviour associated with it.

Stanton and Stanton (1984:398) sees personal selling as major promotional method used to reach the goal of marketing efforts used to increase profitable sales. It is clear that personal selling strategy have been applied by firms covering wide category of products.

1.2 STATEMENT OF PROBLEM

It is a known fact that most firms in Nigeria will only utilize personal selling at the introductory stage of product life cycles while others wish to use it without a proper understanding of the impact that personal selling plays in the realization of marketing objectives which is generating and retaining new and existing customers.

Also, some carpet manufacturing firms here in Nigeria, have not fully utilized and employed personal selling strategies effectively and efficiently. Most rely on sales promotion and advertising without adequately profiling personal selling activities. This has adversely affected sales volume/growth and customer relationship management in Atlas carpet product area.

Furthermore, customers of Atlas carpet product in recent time, have consistently laid the complaint that as carpet companies did not timely respond to complaints about product problem like frequent breakages for want of good quality reinforcement. Many carpet companies lack the understanding of how personal selling would help in answering sales related problems regarding product.

In addition, sales and profitability of carpet organizations have plugged down without the firm analyzing what the impact personal selling portend despite the present economic recession. Carpet firms have consistently employed poor marketing tools with underestimation that personal selling have no relevance in the selling of carpet product. It is the height of the above that the researcher is bent on appraising.

1.3 OBJECTIVES OF THE STUDY

The following research objectives have been formulated to guide conduct of the study.

1. To identify the impact of selling in generating and retaining of new and existing customers of Atlas carpet world product.
2. To investigate role that personal selling plays in sales volume growth and profitability enhancement for carpet products.
3. To examine personal selling strategies to see if they can be used in building customer relationship.
4. To determine how personal selling can be used in sustaining long term customer satisfaction of consumers of Atlas carpet world product.

1.4 RESEARCH QUESTIONS

The following research questions were formulated by the researcher to guide conduct of the study.

1. Does personal selling have impact in generating and retaining new and existing customers of Atlas carpet world product?
2. Can personal selling play any role in sales volume growth and profitability of Atlas carpet world product?
3. Can personal selling strategies be used to build customer relationship?
4. Can improvement of Atlas carpet world product quality be used in sustaining long term satisfaction of consumers through personal selling?

1.5 RESEARCH HYPOTHESIS

The following hypotheses were formulated to guide the conduct of this study.

H1: Personal selling does have impact in generating and retaining of new and existing customers for      Atlas carpet world product.

Ho: Personal selling does not have impact in generating and retaining of new and existing customers for Atlas carpet world products.

H1: Personal selling have role to play in sales volume growth and profitability enhancement for Atlas carpet world products.

H0: Personal selling have no role to play in sales volume growth and profitability enhancement for Atlas carpet world.

H1: Personal selling strategies can be used to build customer relationship.

Ho: Personal selling strategies cannot be used to build customer relationship.

H1: Personal selling strategies can be used in sustaining long term satisfaction of consumer of Atlas carpet world product.

Ho: Personal selling strategies cannot be used in sustaining long term satisfaction of consumer of Atlas carpet world product.

1.6 SIGNIFICANCE OF STUDY

This research work is aimed at contributing to knowledge in the area of marketing and marketing communication decision. No doubt this work will assist marketers involved in personal selling in decision making, customer relationship and management, marketing planning and control as well as in organizational growth and development.

Management of Atlas carpet world industry as well as other related manufacturing concern, would find this work useful and reliable. Like other field of human endeavour where study carried out left open some gap, it is hoped that this research would present knowledge that can better the utilization and application of personal selling strategies for carpet firms.

Last but not the least, the study would be useful for future researchers, library of universities and the academia in general.

1.7 SCOPE OF STUDY

The scope of study covers Atlas Carpet World Enugu.

• DEFINITION OF TERMS

The following operational terminologies were used in furthering this research work and they are briefly explained hereunder.

CONSUMER: individual that purchase products goods and services), Stanton (1983: 48)

DECISION MAKING: the process at which individual, firm or government select best option among varieties of alternative course of action.

FIRMS: organizations that produce goods and services that satisfy consumers’ want variety of firms constitute industry, Jhinghan, (2006:19).

MARKETING: business activity of presenting product or services in such a way as to make them desirable.

PERSONAL SELLING: face to face personal conversation between a prospect and psychological satisfaction offered to sales. It is anything offered to the market for alteration, acquisition and usage and which can satisfy