Examination of The Relevance of Personal Selling in Marketing Activities A Descriptive Method
Examination of The Relevance of Personal Selling in Marketing Activities A Descriptive Method
Examination of The Relevance of Personal Selling in Marketing Activities A Descriptive Method
Professional Paper
UDK: 658.8
Paper received: 02/05/2016
Paper accepted: 12/12/2016
ABSTRACT
The paper examined the relevance of personal selling in selected Bottling
Companies in Lagos State, Nigeria. Survey research method was adopted. The
study population was the staff in marketing positions of selected companies.
Questionnaire was administered on selected samples while weighted mean was
used to determine the relevance of personal selling. The study revealed that perso-
nal selling accentuated relationship building, foster creative selling, and represen-
ted the company well to the customers. The study concluded that personal selling
was still relevant and a critical success factor in today’s marketing activities despite
the advent of digital marketing. Managers concerned about competitive edge in
the market edge as well as top and bottom line will find personal selling helpful.
Researchers are enjoined to further determine the effect of personal selling on the
shareholders’ value.
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1 INTRODUCTION
Globalization and the economic policy changes which opened the coun-
try to the world market and global competition from different multinational
companies has made most business houses in Nigeria to realize the need for
being proactive in communicating their product offerings to the consumer.
The importance of promotions has, since then, increased in Nigerian business
environment. Promotion, one of the 4Ps of the marketing mix has assumed
much importance to marketers of late. Marketing promotions plays a vital role
in the achievement of organizational goals. At each step in any purchase deci-
sion, the probability that a purchase will result is enhanced through the use
of efficient and effective marketing promotions, ending ultimately in the pur-
chase of the goods and services being promoted. One of the traditional ele-
ments of promotional mix is personal selling. It involves direct interpersonal
communication between a representative of the firm and the potential cus-
tomer. It is face to face presentation and promotion of products and services.
In today’s marketing practices, products and services are promoted
through digital marketing and all other forms of electronic media different
from the traditional marketing. Digital Marketing extends beyond internet
marketing to include channels that do not require the use of internet which
includes mobile phones (both SMS and MMS), social media marketing, search
engine marketing and many other forms of digital media. In September 2015,
Facebook the world’s most popular social network site (SNS) catered for more
than 1.4B active users and was the world’s second most visited website after
Google. (Alexa, 2015). Facebook has also become a premier destination for
international marketers. (Beck, 2015). This development has raised serious
concern as to whether personal selling is still relevant and probably achiev-
ing its marketing functions. However, for many consumer products that are
complex or high value products, salesmanship is considered an indispensa-
ble promotional technique to promote product as well as to increase sales.
Likewise salesmanship is also given more priority over other promotional ele-
ments due to increased expectations of customers. Sequel to the effectiveness
of digital marketing in providing access to information anytime and anyplace
the customers need it, alongside the fact that consumers are not only exposed
to what came from the company or what the company wanted them to know,
but also what others have to say about the brand, this development has raised
serious concern as to whether personal selling is still very much relevant and
achieving its marketing functions even with the complex products. In addi-
tion, marketing decision makers are greatly concern about maximizing share-
holder’s value consequently there is the need to determine the relevance of
the promotional element like personal selling in marketing activities. The main
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2. LITERATURE REVIEW
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There are many different types of personal sales jobs. According to Job-
ber (2007) there are three types of personal selling: order takers consisting
of (inside-order takers, delivery salesperson and outside order takers), order
creators (Missionary sales people) and order getters made up of (New busi-
ness salespeople, organizational salespeople, consumer salespeople, techni-
cal salespeople). A driver-salesperson merely delivers the product and has few
selling responsibilities. An inside order taker—such as a sales clerk in a retail
store takes orders from within a selling environment and requires some selling
skills. In contrast, an outside order taker goes to the customer’s place of busi-
ness to take orders. Some selling skills are required in this position, especially
to establish new accounts. A missionary sales person, rather than selling an
actual product or service, instead tries to make a customer feel good about the
company and products he or she represents. A sales engineer might be found
in technical industries. Sales engineers provide technical support, explain the
product, and help adapt the product to the customer’s needs.
One method that many small manufacturers and wholesalers use to re-
duce the costs of personal selling is to hire an experienced selling agent. Sell-
ing agents are independent salespeople who work under contract with one or
more companies and are usually paid a straight commission on sales. Hiring
a selling agent allows a small business to save the time and money it would
have to invest in recruiting and training an in-house sales force. In addition, an
agent with experience in selling similar products may provide readymade cus-
tomers and quick entry into a sales territory The main disadvantages of selling
agents are that they usually work for several different firms, so they are unable
to devote 100 percent of their attention to any one client, and that it may be
difficult to retain the customers gained in this way once the relationship with
the agent is severed. It is also difficult to control the selling methods used by
agents, and they may not be able to provide the service that some customers
require.
Personal selling process involves seven steps that a salesperson must go
through with most sales. Kotler and Armstrong, 2008 described the selling pro-
cess as several steps that a sales follows when selling. The aim of these steps
is to get new customers and get order from them. The steps are: Prospecting,
Pre-approach, Approach, Presentation, Overcoming objections, closing the
sale and Follow – Up
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Representation of the
company to the
Order Creators Customers
Representation of the
Customers to the
Company
Order Getters
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3. METHODOLOGY
Survey research method was adopted to obtain the views of the various
stakeholders or research samples. The design was used since we are going to
describe the variables of the research work.
The study population was 220 comprised of the total workforce in the
marketing department of the selected companies as the sampling unit.
Nigerian Bottling Company Plc {120}
Seven-up Bottling Company {100}
Total {220}
The justification for the selection of the two dominant players in the indus-
try was that their services were intensive in the industry. There operational task
involve major use of personal selling. The sampling frame was the total num-
ber of Commercial staff listed on the payroll as at the last month preceding
the study. The study adopted the Slovin Formula cited in Guilford and Frucher,
1973 recently applied by Adetayo (2008) as Yamane formula to determine the
Sample size for this study. The formula was given as follows:
N
n = 1 + Ne2
Where: N= Population Size
e= Desired margin of error (percentage allowance for non-precision because of the use
of the sample instead of the population)
n = the sample size desired
The sample size for the study therefore was calculated at 0.05% as desired
error margin. The calculated sample size for the selected companies was NBC
(90) and 7UP (82) = 172. The Formula fulfilled the condition for its usage be-
cause it was actually meant to be used for a finite population. The technique
of sampling employed in this study was the stratified random sampling tech-
nique. The stratified random technique was used to accommodate the differ-
ent levels of position occupied by the staff in the Commercial structure of the
organization. The commercial departments of the two companies were se-
lected because they possessed the required information on the promotional
strategies of the selected companies.
The data collection instrument was essentially the questionnaire. The
questionnaire was highly structured and undisguised in nature. The question-
naire was divided into two broad sections.(A—B) Section A contains research
questions while section B contains demographic data of the respondents. The
responses were based on five point Likert scale ( 1--Not at all, 2---To a very
slight extent, 3---To a moderate extent, 4---To a great extent and 5---To an ex-
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Table 4.1 above showed the respondents’ perception of how personal sell-
ing’ commanded creative selling, relationship building, representation of the
company to the customer and representation of the customers to the com-
pany. Frequency, percentages and the mean were calculated. The analysis re-
vealed that in NBC, the highest rated item was relationship building (mean =
3.00). This was closely followed by creative selling (mean = 2.80). With mean
scores above average, it indicated that the result was statistically significant
and concluded that personal selling was relevant in relationship building and
influenced creative selling. The least rated was in the area of representation
of the company to the customers (mean = 2.20). The mean scores above aver-
age(2.5) indicated that to a moderate extent, personal selling affected rela-
tionship building and creative selling while to a slight extent, personal selling
affected representation of the company to the customer and vice versa. In the
case of 7up, the analysis revealed that the highest rated item was relationship
building (mean = 2.90). This was closely followed by creative selling (mean =
2.71). With mean scores above average(2.5) in 7UP, it indicated the statistical
significant of personal selling in influencing building customers relationship
and creative selling as reported in Coca-Cola. The least rated sub scale was
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cal success factor (CSF) of personal selling in product- market response and
the ultimate determination of the shareholder’s value. For the industry, the
findings revealed that personal selling remain one of the avenues to create
product awareness, give information, remind and persuade the customers. For
the management practice, the findings indicated that, for mangers to achieve
their marketing objectives, effective integration of personal selling as relevant
promotional mix is desirable. In effect, the drive for best practices in promo-
tional efforts must be pursued by managers to achieve marketing objectives.
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SAŽETAK RADA:
Rad istražuje relevantnost osobne prodaje u odabranim punionicama u
području Lagosa Nigerija. Istraživanje je provedeno metodom ankete na uzorku
koji se sastojao od zaposlenika u odjelima marketinga odabranih tvrtki. Upitnik je
upućen odabranom uzorku dok je za određivanje relevantnosti osobne prodaje
korišten ponderirani prosjek. Studija je otkrila da osobna prodaja pridonosi izgrad-
nji međusobnih odnosa između kompanije i kupaca, kultivira kreativnu prodaju te
pozitivno utječe na odnos kupaca prema kompaniji i sam rejting. Zaključuje se da
je osobna prodaja usprkos važnosti digitalnog marketinga i dalje važan čimbenik
uspjeha pri provođenju marketinških aktivnosti. Preporuča se korištenje osobne
prodaje za podizanje kompetitivnosti tvrtke, a potiče se i na daljnje istraživanje
utjecaja osobne prodaje na vrijednost dionica.
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