The impact of personal
selling on sale volume of mobile phones in Calabar municipality. (Marketing)
ABSTRACT
The
study evaluated the impact of personal selling on sales volume. The research
survey design was adopted in the study while simple random sampling technique was
used to select a sample size of 100 staff of the
organization that participated in the study. Data used for the study was
collected from both primary and secondary sources. The primary data was
gathered from respondents through the use
of questionnaire, interview and observation, while, secondary data was
collected from journals, internet materials and textbooks. Four hypotheses were
tested using the Chi-square statistical tool and the results revealed that
there is a significant relationship between personal selling and sales volume
at Significant level of 0.05; and df=12. Finding from the study revealed
clearly that personal selling is more persuasive among the marketing
communication mix element. It aims at consolidating customers and maintaining
the buyer-seller exchange relationship. Personal selling as a business
strategy, helps representatives of a
company to explain to their clients/customers how well the products/services
can satisfy their needs. Therefore, Organizations should focus more on the
customer by adopting personal selling as
a marketing strategy.
CHAPTER ONE
INTRODUCTION
1.1
Background
of the study
The hallmark of every business is to
identify, anticipate and satisfy customers need, maximize profit, possess
competitive advantage and remain relevant in the marketplace. This can only be
achieved through the adoption of personal selling as a promotion mix strategy.
Personal selling plays a vital role in creating direct contacts and
interactions between customers and sellers/producers as well as enhances
productivity of business.
According to Ebitu, (2002), personal
selling is a common feature of most companies in marketing their product and
services. Goods that are new, technically complex or expensive require more of
personal selling than any form of promotion mix. Personal selling is an
effective tool at certain stage of the buying process, particularly in building
up buyer preferences, conviction and actions (Kotler 2006).
Personal selling involves the use of
speech and conversation by sale person to bring about some conviction on the
part of the buyer. It is aim at assisting or persuading a prospective customer
to buy a produce or services or to act favorably upon an idea that have
commercial significant to the seller. Udeagha (1999) defined personal selling
as a process of conversing the sale of a company’s products or service by sales
man or woman, it is a dynamic process involving direct contact between the
seller of a product or service and the prospective buyer through oral or face
to face or telephone discussion or written mail exchange of ideas through
suggestion.
In his opinion, Adirika (1993) defined
personal selling as the process of including a prospective customer to act
favorably on an idea advantage to the buyer and commercial significant to the
seller. Every marketing manager ought to have sales persons beside him that
have a thorough knowledge of what personal selling is all about in order to
bring about a good level of profit to the company.
Kotler
and Armstrong, (2010) noted that, personal selling as a business strategy,
helps representatives of a company to
explain to their clients/customers how well the products/services can satisfy
their needs. They give their clients opportunity to make more enquiries about
their services. This assists them to match their needs and the services.
Company representatives (marketing officers) informs customers of new
products/services and explain to them how best they can use these products.
Personal selling equally assist firms to increase their sales volume and expand
the market by identifying new customer, retaining old customers and persuading
them to buy the firm’s product. Personal selling is a presentation by the
firm’s sales force for the purpose of matching, sales and building customer
relationship (Kotler and Armstrong, 2010). The need for personal selling
activities has increased because of stiff competition, widening of market,
changes in tastes of customers and technology, increasing customer relationship
and sales volume of the firm.
Although, taking decisions on sales is the
most difficult tasks facing many business executives. This is because it is
difficult to predict, estimate or determine with accuracy, potential customers
demands as they are uncontrollable factors external to an organization.
Considering therefore the importance of sales in business survival and the
connection between customers and sales. It is expedient for organizations to
engage in programs that can influence consumers’ decisions to purchase its
products which in turns bring about increase in the sales of the firm products.
This is where personal selling is relevant.
This
study will therefore focus on the impact of personal selling on sale volume of
mobile phones in Calabar municipality. The researcher’s interest for this study
was prompted due to the fact that; Personal selling is a sub set of promotion
mix which is one of the 4ps in the marketing mix i.e. product, price, place and
promotion. Personal selling is a unique element of marketing communication
unlike advertising and sales promotion which main focus is to create awareness
about the existence of a product or services and provide information as to the
features of the product. Personal selling is an individualistic approach that
is designed to meet specific needs to prospects. It is usually directed to
specific market segments. Its goes beyond the fundamental roles of marketing
communication.
1.2
Statement of the problem
Despite the immense contributions of
personal selling to different business organizations, critics still fail to
recognize it as a marketing strategy to reckon with. They tends to lay much emphases on variables
such as advertising, publicity, sales promotion etc. They believe that personal
selling is expensive and does not bring quick response to product offering and
increase sales volume. However, Sales representative of mobile phones fail to persuade
prospective customers to buy and do not provide the necessary information’s
that can motivate potential buyers to buy products and services that can be of
benefit to them.
Indeed, by showing less emphases on
personal selling such marketers and organization as a whole fail to understand
the fact that personal selling apart from inducing, gathering market
information also help customers to know the features of the product, their
price, important and how such product can be used. Also it was observed that
this problem is worsened by the fact that some of the sales persons are half back
and lack the ability to express their sales properly not only that it was
observed that most sales persons lack the ability to possessing self
confidence. Also it was observed that
the sales people are not good listeners.
The sales people do not allow the customers to talk with them Udeagha
(1999). In spite of all the positive attributes of personal selling, does it
actually impact on the sales volume of mobile phones in Calabar municipality?
Is it actually true that exposure to personal selling influence customers
demand for product? If so, to what extent?
1.3
Objective of the study
The general objective of the study is to
determine the impact of personal selling on the sales volume of mobile phones
in Calabar municipality. For the researcher to achieve this general objective
the following specific objectives was taken into consideration;
(i) To investigate the impact of personal
selling on the sales volume of
mobile phones in Calabar municipality.
(ii)
To ascertain if personal
selling can influence consumer purchase decision of mobile phones.
(iii)
To investigate the effect
of personal selling on customer relationship
management.
(iv)
To determine the role of
personal selling on customer loyalty to
a firm products.
1.3
Research
questions
(i)
To what extent does personal
selling impact on sales volume of mobile phones in Calabar municipality?
(ii)
How can personal selling
influence consumer purchase decision of mobile phones in Calabar municipality?
(iii)
Is there any effect of
personal selling on customer relationship management?
(iv)
To what extent does
personal selling influence customer loyalty?
1.5 Research hypothesis
(i) There is no significant relationship between
personal selling and sale volume of mobile phones in Calabar
municipality
(ii) There is no significant relationship between
personal selling and consumer purchase
decision of mobile phones in Calabar
municipality.
(iii)
There is no significant relationship between personal customer relationship management.
(iv) There is no significant relationship between
personal selling and customer loyalty
1.6 Scope of the study
This research work is limited to the
impact of personal selling on the sales volume of mobile phones in Calabar
municipality. It will also explain the role played by personal selling in
creating customer relationship and loyalty in Calabar municipality. And its
finding will create awareness and enlightenment towards the usage of personal
selling by firms to enable them enhance their productivity. This research work
shall concentrate on every aspect of personal selling in order to broaden make
meaningful knowledge to both companies intending to increase their sales volume
of techno mobile phones in Calabar municipality.
1.7 Significance of the
study
A
study of this kind is significant in many ways. This study will be relevant to
marketing practitioners, scholars, business organizations, and manufacturers,
as will it gives insight to practical application of personal selling. It will
assist mobile phone dealers in the application of personal selling strategy. It
will spell out the relevance of personal selling on the performance of
enterprises. Similarly, this inquiry will add to the existing literature on
marketing mix.
Furthermore,
marketing practitioners and scholars will find the result of this research very
useful as it will enable them come out with practices that will lead to better
application of marketing research in our various establishments. In addition,
this study will be of valuable assistance to future researchers.
1.8 Historical background
of Techno telecommunication company
Techno telecom limited was established
in July 2006 in hongkong, china. But they set up operations in Nigeria the
following year 2007 launching their first mobile phone model. T205 in the same
year.Techno claim to be the first mobile company that introduce dual sim phone
in Nigeria, Ghana and Kenya. Techno is a comprehensive mobile phone
manufactures in R & O, manufacturing sales, and services with years of development.
It has now become one of the major mobile phone suppliers in the world and one
of the largest mobile phone manufactured in china.
In the year of 2008, techno decided
to focus on Africa as its key market and according launch techno brand
strategy. Techno phones range from different collection i.e techno is of java
made, android and phantom. Example of techno product are techno M3, techno N7,
techno P5, techno android and techno phantom A and among others. They range
from different prices i.e N3,000 , N 5,000 , N 12,000 , N 15,000 , N 40,000
just to sell to customers and satisfy their needs and increase the
customers base. Techno is being marketing in Nigeria through licensing,
franching and agent in different part of the country.
In cross river state, techno is being
marketed by UDEC communication limited. The udec communication limited is one
of the major distributors of mobile phones in Calabar and they started
operation in 2008 with their head office located at N0: 150 Ndidem Isang Iso
road, Calabar municipality cross river state and also have branches spread
round in Calabar. Through three years of efforts, techno as achieved initial
success with outstanding and unique marketing strategy and now become one of
the most popular mobile phone brand in many countries and it has being
recognize as the number one dual sim mobile phone brand in Nigeria.
1.9 Definitions of terms
Personal
selling: Is an oral presentation in conversation
with one or more prospective purchasers for the purpose of making sales.
Market
: It is potential customers sharing a
particular need or want who might be willing and able to engage in exchange to
satisfied that need or want
Sales:
This are the activities involved in
selling goods and services
Sales
person: Is an organization sales man who is in
charge caring out sales activities he is also known as a sales representative.
Represent the organization by influencing the customer to by the organization
product.
Prospect:
Is a potential customers who is willing to buy and organization product.
Selling
process: It is a series of steps that a sales man
passes in selling an organization product to its customers.