The Effectiveness of Personal Selling in Organizations

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THE EFFECTIVENESS OF PERSONAL SELLING IN THE DISTRIBUTION OF CONSUMER PRODUCT (A CASE STUDY OF INDOMIE)

CHAPTER ONE-
INTRODUCTION

1.1BACKGROUND TO THE STUDY
Personal selling is an ancient art, which has spawned a large literature and many principles. Effective salesperson have more than instruct, they are trained in a method of analysis customer interaction. Personal selling takes the form of oral presentation in a conversation with one or more prospective purchasers, for the purpose of making profitable sales. The main purpose of personal selling is to bring the right products into contact with the right customer to make certain that ownership transfer takes place. In Nigeria environment, personal selling is mainly use in the marketing of industrial products in service and nonprofit organizations. The industrial buyers are closely located (Industrial Estate) for sales force convenience and also reduce the organizational promotional cost for their sales effectiveness. Apart from consumer market, there is another market known as industrial market, which is mainly for producers, resellers and government. The industrial products sector faces challenges for it is an accepted fact, that management of industrial sector devotes most of the promotional budget fund to personal selling than promotional mix. Industrial marketing activities are directed towards facilitating and expediting exchanges between industrial markets and industrial producers. Industrial or business-to-business products are bought for use in a firm's operations or to make other products. They also include industrial services such as intangible products like financial, legal, marketing research, computer programming and operation, caretaking and printing services. People employed in personal selling run into millions. They are involved in hawking, retailing, wholesaling and sellers of intangibles like insurance broker agent. The researcher's interest is to establish why personal selling is the most effective promotional tool in marketing of industrial products. Finally the good of effective personal selling is not to make sale today, but to help sale force discover how he can easily convert a potential customer into a long term asset.

1.2 STATEMENT OF PROBLEM
The problems faced by the salespersons on the field are very great. This necessitated a study on these issues as a means of finding solution to them. The following are the problems identified:

Unconcentrated potential customers (dispersed) cost the sales force much time and promotional cost. This wastes a lot of productive time of salesperson and make them unable to have many calls per day.

Poor financial position of the distribution/manufacturer poses a big problem to the selling organization. This does not encourage immediate purchase of particular raw materials.

A non-standard storage facility of the buying organization does not support the presales and post sales service rendered by the sales persons.

Activities of the security agencies and that of the area boys in terms of charges paid when transporting goods to the buyers' depots are adversely affecting the promotional cost incurred.

Lengthy negotiation between the industrial marketer and industrial buyer is a general phenomenon. Buck passing among members of buying team creates confusion for salesperson on who to approach during the process of winning organizational buyers.

Finally, there is close monitoring of performance of salesperson that win contract to supply product. This is peculiar to industrial marketing which evaluation leads to replacement it suppliers fail or it keeps them on their toes to avoid losing the contract.

1.3 PURPOSE OF STUDY
This study is mainly aimed to evaluate the effectiveness of personal selling in the distribution of consumer product in indomie. The following are also part of the-purpose of the study: To correct those problems faced by salespersons when selling products to...
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