THE EFFECTIVENESS OF PERSONAL SELLING STRATEGIES IN THE MARKETING PERFORMANCE OF COSMETICS

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THE EFFECTIVENESS OF PERSONAL SELLING STRATEGIES IN THE MARKETING PERFORMANCE OF COSMETICS (A CASE STUDY OF BLANCE COSMETICS ENUGU)

ABSTRACT

This research work is centered on the effectiveness of personal selling in the marketing of cosmetic. It is necessitated by managerial uncertainty with regard to the cause of the aforementioned reduction is sales volumes and profitability in recent times. This managerial indecision created room for its suspicion as to whether the sales force was effective or not with a special reference on Bianca Cosmetics Company.
The data for the study were collected using questionnaires and oral interviews; and the researcher made the following findings.
1) The radio of sales expense to sales volume is not high.
2) The radio of sales call to sales volume is high.
3) Most sales call normally results into sales.
4) The management of Bianca Cosmetics use straight salary plan as compensation.
5) The service of both polytechnic and university graduate were used carrying out their sales task of the organization.
6) Personal selling has made positive impact on the profit returns of the company.
7) It was discovered the customers are satisfied with the marketing effort of Bianca cosmetics.
8) It was discovered that personal selling is of great benefit to customers.
9) The customers believe that the sales people are well trained to carry out the marketing task.
10) It was discovered that the management of Bianca cosmetic normally grant its customers some credit facilities.
11) It was discovered that the price of Bianca product is commensurate with its quality.
Based on the findings, the researcher made the following recommendations.
i) Management should indulge in consumer’s research.
ii) Management of Bianca cosmetics should endeavour to establish market intelligence department.
iii) The relevance of effective sales force in the marketing of cosmetics cannot be over emphasized.
iv) Sales force should improve on their after sales services.
v) Management of Bianca cosmetics should once in a while organize sales promotional and public relation activities for their sales force.

TABLE OF CONTENTS

Title page – – – – – – – i
Dedication – – – – – – – ii
Acknowledgement – – – – – – iii
Abstract – – – – – – – – iv
Table of contents – – – – – – v
CHAPTER ONE
1.0 Introduction – – – – – – 1-3
1.1 Background of the study – – – – 3-5
1.2 Statement of problem – – – – 5
1.3 Objective of the study – – – – 6-7
1.4 Research questions – – – – – 7
1.5 Significance of the study – – – – 7-8
1.6 Scope of the study – – – – – 8-9
1.7 Limitation of the study – – – – 9-10
1.8 Definition of terms – – – – – 10-11
CHAPTER TWO
2.0 L literature review – – – – – 12
2.1 Introduction – – – – – – 12-15
2.2 the functions of personal selling in a firm’s over all marketing effort – – – – – – 15-16
2.3 personal selling strategies – – – – 16-21

CHAPTER THREE
3.0 Research methodology – – – – 22
3.1 Introduction – – – – – – 22
3.2 Research design – – – – – 22
3.3 Sources/methods of data collection – – 23
3.4 Population and sample size – – – 24
3.5 Sample technique – – – – – 27
3.6 Validity and reliability of measuring instrument 27
3.7 Method of data analysis – – — – 28
CHAPTER FOUR
4.0 Presentation and analysis of data – – 29
4.1 Introduction – – – – – 29
4.2 Presentation of data – – – – 30-34
4.3 Analysis of data – – – – – 34-39
4.4 Interpretation of result(s) – – – 39-44
CHAPTER FIVE
5.0 Summary conclusion and recommendation 45
5.1 introduction – – – – – – 46
5.2 summary of findings – – – –
5.3 conclusion – – – – – – 47
5.4 Recommendations – – – – – 48
References – – – – – 59
Appendix – – – – – 52
Questionnaire – – – – – 53-55

CHAPTER ONE

INTRODUCTION

According the L.A Rogers (1980) personal selling has become one of the vital promotional tools in marketing. He further buttressed the above proposition by stipulating that after all the theorists planners must have had their moment and the predicament associated must production finance and labour have been resolved their some one has go out and knock at some ones door and sell.

This is revelation is apparently acceptable because a product can not be produced at Enugu and is not available in place like Lagos where such product is highly needed.

This is significance behind the nation of sales contention that they should investigate into the needs of consumers as well as filling them with satisafaction and maximize profit objectives. A critical analysis of the above statement high lights the importance of the effectiveness of personal selling on the marketing high grade but has not utility until it gets to the hands of prospect buyers and the most appropriate route for passing products form manufacturing are to hands of potential buyers happens to be through personal selling.

Personal selling is dynamic flexible and volatile. Traditionally it is mainly associated with commercial transaction which has passed through distinct eras that are characterized as the eras of the early traders exist in most ancient cities some of these earliest states based the primary portion of their economics on the trading with communities traders typically have the ownership of the goods being immediate families. At times they perform their marketing functions like transportation and storage in addition selling obligations.

The American preddlers of the colorial ear enable them sell their goods to the then settlers most of these settler were immigrants who views their respective jobs as one of the available means of getting a fresh start in a new country professional selling started shortly after the world war. under this seen the economy switched form the previous situation of sellers market to that of buyers market in which goods were plentiful in supply. Due to the industrial revolution of the 17th century which encourage the birth of a number of new industries of which cosmetic industries were among.

The industries had varieties of product with moderate qualities. As at the said era many industries operated under the philosophy that the customers will buy any product provide it can be supplied” goods had to be marketed mainly for the facts that consumers nor having choice and the selling adopted a radical change to reject this new seen.

1.1 BACKGROUND OF STUDY

Bianca Cosmetic Industry is located at No 1 Temple Avenue here in Enugu it was established in 1996 by Mrs. Bianca Odinaka Ojukwu (The managing direct) or she was a native of Ngwa in Enugu state she was married to his Excellency Ikemba Odumegmu Ojukwu form Nnewi with children, she was the first beauty pageant she started as a small scale business and later developed into a distributor. Here products, are now distributed to places, like Lagos,Abuja, port Harcourt etc.

Infact, Biancas products, are now a nation wide products and even beyond. It has been or leading firm in the cosmetic industry in Nigeria with transparent image.

The progress and high demanded of the product is a partial brain behind the industry’s elevation in product capacity in previous years and this also created rooms for the absorption of more workers in the divergent department thus helped to reduce the high rate of social menale that would have associated the situation of mass unemployment. How ever the aforementioned industry which had attained the peak in the cosmetic manufacturing industry has started experiencing a dwindling ground in its sales volume and market share according to an insider this experience is accounted for by number of recent development some of are incessant increase in number of company industries currently involved in the manufacturing and sales of different types of cosmetics and besides the increase and efficient application of the divergent promotional tools. Thus the management wonders of personal selling in the marketing of cosmetics and that is prorno tool could only justify its wonders in marketing of cosmetics only when is effect.

To this end the manage is interested in know if the sales force is effective or other wise. This is the core of this study.

1.2 STATEMENT OF THE PROBLEM

Bianca cosmetic industry has started experiencing a reduction in its sales volumes is caused by a keen competition that exists in the industry as regards the quality of the product customer services and effective utilization of pronmo tools. This is direct opposite of what the company used to witness in the previous years the reason for the low sales volumes leading to other serious problems like reduced profitability low market share and reduction in the rate of promotion as well as that of employment is still unknown to the management of the company. How ever the company’s management is seriously question the effectiveness of the sales force. 

1.3 OBJECTIVE OF THE STUDY

What ever the nature and structure of an organization personal selling has been acknowledged as the bedrocks of it success over cut threat competition. This enabling the company to generate more funds for its operations. The aforementioned fact is the primary reason behind the huge amount budget on regular bases into the sale departments. To this end the objectives of the study are

  1. To verity if the ratio of sale expense to salves volume is high or low to warrant further budget into activities of the sale force.
  2. To see what can be done by management to change a situation of high cost of sales returns sales volumes is high or low.
  3. To see how a situation of high sales calls to solves volume can be reversed.

1.4 RESEARCH QUESTIONS

  1. Is the ration of sales expense to sales volumes high or low?
  2. Is the ratio of sales to sales call high or low?

1.5 SIGIFICANCE OF THE STUDY

According to the public relation management of Bianca cosmetics the company has been and will continue to demonstrate its corporate and social responsibilities. This is in justification with browns contention of (1978). He said if a company is to continue ensuring its consumers patronage that it has no other alternatives than the maintenance of a clear cut competitive advantages and managing and managing the marketing mix in a manner that will ensure continuous customers satisfaction. Bianca cosmetics has been and will continue to strive hander in the area of corporate social responsibilities.

To this regard the significances of this study is to fulfill the following.

  1. Make recommendation to the management of cosmetic based on how to over come the problem of low sales volume as well as that of high sales expense to sales volume ration.
  2. It is also primary view of the researcher that both current as well as potential researchers will find this work of almost importance will regard to directing and facilitating the bearing and solution to their problems.
  3. The study will also be of help to other companies in the same industry with Bianca cosmetics in their strifes to surmount how sales volumes and profitability.

SCOPE OF THE STUDY

The scope of this study is very wide if it has to be carried out in all branches and all the departments in Nigeria. Thus the study will cover only members of the sales department cost accounting sections as well as some members in the financial sector here in Enugu which is located in no 1 temple Avenue Enugu state. The findings may be reflect the situation in the whole branches but by and large what happens in Bianca cosmetics here in Enugu can be said the apply to other branches.

LIMITATION OF THE STUDY

Like I have said before Bianca cosmetics is a cosmetic manufacturing industry with a lot of branches in most state of Nigeria.

To this end the study ought to have taken a wide dimension to make it more meaningful.

However the researchers is compelled by time constraints to restrict her findings to only the head quarter here in Enugu. In the same vein financial constraint has also played its role in finally the non-chalet attitude of some of the respondents is another ground the limitation of this finding some of the respondents were indifferent with regard to research questions put before them and in most cases they tend is sky way from such fundamental questions. This indeed has restricted these findings to narrow areas.

1.8 DEFINITION OF TERMS

The following terms used in this study should be taken to mean the following.

Marketing:- marketing is defined as a social process by which individual and group obtain what they want and need through creating offerring and freely exchanging products of valve with others. Or marketing could also be seen as human activities directed at satisfaction of people needs through the exchange process.

Promotional tool:-  promotional tools include all activities or strategies involved communicating with a target market or audience it seeks inform educate, persuade and influence the target audience. These messages could be sent through advertising personal selling sale promotion and public relations (the promotion tools.

Personal selling:- personal selling is a face to face presentation of sales it is a personal contact between the seller and the buyer for the purpose of marketing a sale. It characterized by verbal exchange gesture which allow far flexibility and adjustment of messages to suit buyers needs interest and reactions.

Cosmetics:- cosmetic is a substance for putting on the body especially the face to make it beautiful.