THE CONSTRAINT OF PERFORMANCE, EVALUATION, AND CONTROL OF SALES FORCE IN NIGERIA (A CASE STUDY OF DANA PHARMACEUTICAL PRIVATE LIMITED COMPANY)

ABSTRACT

The study focus on the Constraints of Performance Evaluation and Control of Sales force in Nigeria (a case study of Dana Pharmaceutical Private Ltd Company). Sales force refers to group of sales people collaborating and working together to help a company meet in sales goals. The main purpose of this study is to find out the constraints of performance, evaluation, and control of sales force in Nigeria. A simple size of 160 users was determined using chi-square formula; the sampling technique used was sample random sampling. Both primary and secondary data were employed and the measurement of instrument used was open –ended questionnaire. Two hypotheses were tested using null hypothesis. The major findings were that there exist significant satisfactions of staff with management/staff relationship of the company. On the strength of the findings, the researcher concludes that incentives have significant effects on the performance of sales force. On the strength of the conclusion, we recommend that management relationship be encouraged through meetings and seeking workers’ opinion on some issues.

TABLE OF CONTENTS

Title page i

Certification ii

Dedication iii

Acknowledgement iv

Abstract v

Table of contents vi

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study 1

1.2 Statement of the Problem 2

1.3 Objective of the study 2

1.4 Research Question 2

1.5 Statement of the Hypothesis 3

1.6 Significance of the Study 4

1.7 Scope of the Study 4

1.8 Limitation of the Study 4

1.9 Definition Terms 5

CHAPTER TWO

2.0 Literature Review 8

2.1 Over View of Related Literature 8

2.2 Implementation, Evaluation and control    10

2.3 Theoretical foundation of sale force 15

2.4 Marketing Performance    16

2.5 Sales Force Competence Management

and Marketing Performance 18

2.6 Marketing Performance a Measure of the

Contributions of Organizations Marketing

Functions To Its Corporate Goals Objectives 19

2.7 Sales Force Competence Analysis (SFCA)

and Marketing Performance 20

2.8 Sales force competence Development (SFCD)

and Marketing Performance 21

2.9 Force Competence Evaluation (SFCE)

and Marketing Performance 25

2.10 Structure of customer sales force 27

2.11 Sales Force objective and Task 27

2.12 Sales Force Training 28

Compensation and Motivation of Sales force 29

The Benefit of motivating Sales  Forces 32

2.15 Performance, Evaluation and Supervision 33

CHAPTER THREE

3.0 Introduction 35

3.1 Research Design 35

3.2 Area of study 36

3.3 Population of the study 36

3.4 Sampling Techniques and method 36

3.5 Determination of Sample Size 36

3.6 Measurement of Instrument 37

3.7 Sources of Data collection 38

3.8 Validity and Reliability of instrument 38

3.9 Method Data Collection 39

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

4.1 Presentation of Data 41

4.2 Testing of Hypothesis  46

CHAPTER FIVE

SUMMARY, CONCLUSION, AND RECOMMENDATION

5.1 Conclusion 54

5.2 Recommendation 55

References 56

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The sales force is strategically located in the corporate performance metrics and plays the cutting edge role of bread-getting by guaranteeing job security through converting outputs to cash. Salesmen are distinguished by being the ultimate source of sustained competitive advantage (Ulrich and Lake, 1990) in terms of providing customers care and customer education, market orientation, value creation and value delivery and customer relationship management. Salesmen rarely perform their responsibilities proficiently if they are not motivated. Since studies by Avulonitics and Panagopoulos (2006), Carlson (1989), Kreithner and kinicki (2001) George and Jones (1996) among others showed a strong correlation between sales force competence and corporation performances.

The constraints affecting sales peoples’ performance are many. Some of these are beyond the control of the individual, while some can be modified. Aspects like motivation skill-set, job satisfaction, role perception personal factors like age, sex, height etc.

Sales force competence depends more on management (De floor et al 2006, Zep-Obipi, 2007).

Performance evaluation can also help in improving the relationships between the sales force and supervisors by minimizing suspicion and improving interaction.

1.2 Statement of the Problem

The statement of problem in this subject is to find out if employee motivation increases organizational performance. How is employee motivated?

1.3 Objective of the study

The objectives of the study are as follows:

- To verify if the sales expense and sales force to sales  volume is high or low to warrant further plans into activities of the sales force of the company.

- To identify the various causes of low productivity of the sales force in Dana Pharmaceutical Limited Company.

- To improve understanding on the nature and role of sales person.     

1.4 Research Question

This study is meant to verify the constraints of sale force in the sales performance of Dana Pharmaceutical Private Ltd Company. To this regards the following hypothesis are formulated.

Ho: The ratio of sales expense to sales volume is not high in Dana Pharmaceutical Private Ltd. Company.

Hi: The ratio of sales expense to volume is high in Dana  Pharmaceutical Private Ltd Company

Ho: The ratio of sales force to sales volume is not high in the company.

Hi: The ration of sales force to sales volume is high in the company.

Ho: There is a low ration between current and past performance evaluation of sale force of Dana Pharmaceutical Private Ltd  Company.

Hi: There is a high ratio between current and past performance evaluation of sale force of Dana Pharmaceutical Private Ltd  Company.

1.5 Statement of the Hypothesis

H₁: The breadth of the sales force has (a) a positive impact on the sales force success and (b) a negative impact on total distribution success.

The depth of the sales force measures which share of all customer interactions is performed by the sales force. It is composed of the relationship to customers and providing extensive support along the buying cycle (Belz, 1999). Regarding the contribution of the sales force to customer retention, numerous publications pointed out the importance of a relational selling strategy to create value (Guenzi, 2002, 2003; Guenzi, Pardo, & Georges, 2007).

1.6 Significance of the Study

The key action is how to get employees encouraged or motivated in order for them to increase their effort in order to enhance high productivity which will turn yield higher talking about how to motivate employees but the issue on ground is practicalising it. As a result of doing this worked will be motivated to add more effort in the accomplishment of company’s objectives goals. Hence this research work  of getting across to organizations the most  important action employed to increased productivity and also  coming out with a recommendation on how best workers productivity in Dana Pharmaceutical Private Ltd can be improved after careful examination of the nature of incentive that best appeals to employees of labor in this era.

1.7 Scope of the Study

This study was limited to Owerri metropolis. The company study is Dana Pharmaceutical Industry Ltd located here in Owerri at No I Temple Avenue Owerri, Imo State.

1.8 Limitation of the Study

This research work is limited to Pharmaceutical industries in Nigeria especially Dana Pharmaceutical Private Ltd company. To this end, the study ought to have taken a wide dimension to make it more meaningful. However the researcher is compelled by

1. Time constraints to restrict her findings to only the headquarter here in Owerri.

2. Financial constraints have also played its role in reducing the assumed broad field broad field of this study.

3. Uncooperative 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 away from such fundamental questions. This also affects the results of the study.

1.9 Definition Terms

Sales Force: This is defined as ‘the division of a business that’s responsible for selling products or services, “according to “entrepreneur”. The word “sales” refers to the fact that sales are involved. The word “force” refers to a group of salespeople collaborating and working together to help a company meet in sales goals.

Sales Funnel: This is best referred to as the sales process. It may start with an internet lead generated when a potential customer fills out an internet form. From this lead, either inside or outside salespeople may follow up with informational or support services, all designed to lead to a sale. The sales funnel varies widely among companies.

Captive sales force: Generally, a company that has a captive sales force is strong on creating brand loyalty with their customers and client brand loyalty.

Sale Force Compensation Plan: This can mean the difference between a company’s success and failure. Sales are the lifeblood of any company.

Sales force Incentives: Corporate senior managers ensure that employees remain motivated when performing tasks in the short term and long term. Sales force incentives are.

Promotional Sales:  Promotional Sales the marketing mix is comprised of four elements- product, price, place and promotion. The product to be manufactured has to be determined by studying customer preferences and tastes, demand, the volume to be produced and the mode of production have to be researched as well. The price for the product has to fit the target market. The customer would be willing to pay only if the price lures him/her and there are benefits of choosing over the competitor’s product.

Direct Sales: Director Sale is a form of marketing in which products and services are sold directly to consumers without the use of a fixed retail outlet. Direct sales take place through person-to-person contact, often at home parties hosted by the distributor, who can also be known as a sales representation, associate and consultant.

Sales force Strategy: This is defined as the set of strategic decisions that determine where the sales force will focus its attention and the role of the sales force in creating customer value that is consistent with the overall strategy of the firm. The sales force’s ability to create superior customer values is based on its ability to perform a set of fundamental customer-focused capabilities:  new customer acquisition, customer relationship development, customer trust building, and customer retention.

Promotional tools: promotional tools include all activities or strategies involved in communicating with a target market or audience it seeks to inform, educate, persuade and influence the target audience.  These messages could be sent through advertising sale force sales promotion and public relations (the promo tools).

Salesman: Is a man who is employed to sell merchandize in a store or in a designated territory or a man who sells goods, services.

Marketing: marketing is the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shifting, storing and selling etc.

Advertising: Advertising is the communication relayed from companies to persuade an audience to purchase their products. This communication is usually through various forms of paid media- TV and radio commercial, print ads, billboards and more recently product replacement.   

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