THE EFFECTIVENESS OF PERSONAL SELLING IN THE MARKETING OF PETROLEUM PRODUCTS IN NIGERIA (A CASE STUDY OF TOTAL NIGERIA PLC)


THE EFFECTIVENESS OF PERSONAL SELLING IN THE MARKETING OF PETROLEUM PRODUCTS IN NIGERIA (A CASE STUDY OF TOTAL NIGERIA PLC)   

TABLE OF CONTENTS

Title Pages i

Certification ii

Dedication iii

Acknowledgment iv

Table of Content v

CHAPTER ONE:BACKGROUND OF THE STUDY

1.1 Introduction 1

1.2 Statement of Research Problem 2

1.3 Aim and Objective of Study 3

1.4 Significance of the Study 3

1.5 Scope of the Study 4

1.6 Limitations and constraints to the Study 5

CHAPTER TWO:LITERATURE REVIEW

2.1 Nature and Importance of Personal Selling 6

2.2 Personnel Selling and Marketing 9

2.3 Marketing of Petroleum Product 15

2.4 Personal Selling and Petroleum Product 17

2.5 Management of the Sales Force 20

2.6 Evaluation of Salesman’s performance 26

2.7 The Effectiveness of Personal Selling in 

marketing of Petroleum Product in Nigeria31

CHAPTER THREE:RESEARCH METHODOLOGY

3.1 Data Source 33

3.2Research Population and

Sample Population 33

3.3 Research Design 35

3.4 Data Collection Instruments 37

3.5 Method of Data Presentation and administration 37

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Brief History of Total Nigeria Plc 39

4.2 The Management of Total Nigeria Plc 

at the Branch Level41

4.3 Presentation of Data 43

4.4   Analysis of Data 43

4.5 Test of Hypothesis 48

4.6 Result of Findings 55

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary 56

5.2 Conclusion 56

5.3 Recommendations 57

REFERENCES 58

QUESTIONNAIRE 59

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1 INTRODUCTION

A personnel selling is the presentation of a product service or ideal by salesman in the direct contact with prospect in order. To make sale’s it is also personnel presentation of product or ideas of commercial significance. To prospective buyer. The America marketing association defines it as oral presentation in conversation with one or more proposal for the purpose of making sales.

Proposal selling is the most important promotion tool when measured in terms of time and money. The goal of all marketing efforts is to increase profitable sales by offering wants satisfaction to the market over the long run. Personal selling is the major promotion method used to teach the above goal because of this, in many company, personal selling is the largest single operating expenses, often equally 8% - 15% of net sales by using personal selling. The company can pinpoint its target market and the advertising to creating awareness and arouse interest but it is only personal selling that result in actual sales.

This is because when the salesman is indirect contact, he tries to stimulate desire in an attempt to obtain action. There by creating urge in prospective buyer to take decision. Now and not later petroleum product are industrial goods and as such posses the features of an industrial goods that make it extremely necessary to use personal selling the marketing of petroleum product such characteristics are:

They are sold in bulk and need assurance of the quality of the product, this makes it important use a sales person so that he can demonstrate. The product to the potential industrial users and arrange for quality easy transportation of the goods to their distinction.

The market for the industrial goods is very competitive, therefore, for the produces of such goods (e.g. petroleum product) to be able to maintain a large market share they need the services of sales people.

The demand for industrial goods is a derived demand which means that the attribute of the product should be sold to the industrial users by the sales people.

Total marketing Nigeria PLC is the leading company in the petroleum marketing industrial in Nigeria it is the first major marketer that was given the award at quality product (150 – 9002) by standard organization of Nigeria (SON) they make use of personal selling more effectively and personal selling activities take a higher percentage of their promotional budget.

1.3 STATEMENT OF RESEARCH PROBLEM

The problem there is the “effectiveness of personal selling in marketing of petroleum product in Nigeria” (Total Nig Plc). This problem is concerned with the effect of using salesman in the marketing of petroleum products.

That is whether the cost of maintaining the sales force justices the benefits derived by Total Nigeria Plc (i.e. cost benefit analysis). The problem involves the exclusion of personal sales in the competitive homogenous petroleum marketing industry. The project will explore these brotherly questions concerned with the problem. It personal selling more effective than advertising in the marketing of petroleum product. What proportion of promotional budget should be allocated to personal selling. Does the cost of personal selling.  Does the cost of personal selling justify it’s benefit personal selling ready the most effective and important promotional tool and should such importance be related with the appointment of the promotional budget.

1.3 AIM AND OBJECTIVE OF STUDY

The case study of total Nigeria plc is the petroleum marketing industry.  It started operation in 1956 and it has captured a large market – it spends a lot of money on personal selling and we want to find out from this research if the cost of maintaining these sales people justifies the benefits the company derives from their services. This research work will bring out into sharp focus both the roots of their success and failure the research findings and recommendation will enable the management to encourage the salesman when necessary and forgive corrective action when needed to enhance a smooth and effective management of the total marketing sales force.

The project will set out the best procedures on the personal selling in Total Nigeria Plc. The research will show the relationship between personal selling and sales whether an increase in the use of personal selling may lead to an increase or decrease in the sales of the organization.

1.4 SIGNIFICANCE OF THE STUDY

The significance of this research is that it will enable the researcher to understand in full, what salesman is all about and the various ways of improving salesman services by researching into their problem, it will also improve the practical application of salesman concept.

To the organization which is Total Marketing Nigeria Plc, the research findings and recommendations will enable them see the real effects of personal selling i.e. if it is worth spending all that money to maintain the sales force and various ways of controlling the sales people and best way of motivating them when necessary.

On the part of the salesman, it will give them an idea of what is expected of them and the various remuneration they should expect from the organization.

To the society, the research will give the younger ones an idea of what salesmanship is all about to enable them make decision on their career without mistakes and misconception about the profession.

To our country in general this research will increase the right of the consumers. This is so because the research will show that consumers are king and how the sales representatives try to find out exactly what the consumers need are and send feed back to the manufacturer on what to manufacture that will satisfy these needs.

Another significance of this research is to crystal the marketing concept, which states that marketing concept, is concerned with identifying and satisfactory consumers need at a profit.

1.5 SCOPE OF THE STUDY

This research covers the various principles at personal selling and how total Nigeria Plc applies those principles and concepts to their personal selling activities.

It will deal with only the sales representatives of Total Marketing Nigeria Plc, Ilorin Zone Western branch, Ibadan. 

1.6 LIMITATIONS AND CONSTRAINTS TO THE STUDY

During the course of carrying out this research work, these are some factors that posed as limitation on this study and they are as follows:

Time Limitation: because of the study of the nature of academic programme such as hours of lecture being received as well as the task of preparing for the examination did not prefer or give sufficient time for conducting this research works but at the end of it all, one is able to solve this problem by scheduling time for the research day of research or project writing and 1 day for resting every week.

.

THE EFFECTIVENESS OF PERSONAL SELLING IN THE MARKETING OF PETROLEUM PRODUCTS IN NIGERIA (A CASE STUDY OF TOTAL NIGERIA PLC)



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