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

ABSRACT

Personnel selling is face contact with the potential customer.  Personnel selling is moving from the place of production to the place of distribution to shown or demonstrate the production or cajowque of the product to the potential or existing customers.  Other strategies of personnel selling will be pin pointed in the project.

TABLE OF CONTENTS

Title Pages                                                                              i

Certification                                                                           ii

Dedication                                                                              iii

Acknowledgment                                                                    iv

Abstract                                                                                  vi

Table of Content                                                                     vii

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1    Introduction                                                                           1

1.2       Statement of Research Problem                                            3

1.3    Aim and Objective of Study                                                   5

1.4    Significance of the Study                                                       6

1.5    Scope of the Study                                                                 7

1.6    Limitations of the Study                                                                  9

CHAPTER TWO

LITERATURE REVIEW

2.1    Nature and Importance of Personal Selling                                   11

2.2    Personnel Selling and Marketing                                          17

2.3    Marketing of Petroleum Product                                          28

2.4    Personal Selling and Petroleum Product                              24

2.5    Management of the Sales Force                                            36

2.6    Evaluation of Salesman’s performance                                47

2.7    The Effectiveness of Personal Selling in

          marketing of Petroleum Product in Nigeria                                   55

2.8    Formulation of Hypothesis                                                    57

CHAPTER THREE

RESEARCH METHODOLOGY

3.1    Data Source                                                                           58

3.2    Research Population and                        

Sample Population                                                                59

3.3    Research Design                                                                    63

3.4    Data Collection Instruments                                                 66

3.5    Method of Data Presentation and  

          Administration                                                                       66

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.0    Brief History of Total Nigeria Plc                                           69

4.1    The Management of Total Nigeria Plc

          at the Branch Level                                                                74

4.3       Presentation of Data                                                              76

4.4      Analysis of Data                                                                   77

4.5    Test of Hypothesis                                                                  87

4.6    Result of Findings                                                                 

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1    Summary                                                                      98

5.2    Conclusion                                                                   101

5.3    Recommendations                                                        103

REFERENCES                                                              106

        QUESTIONNAIRE                                                            107

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1 INTRODUCTION

          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.

1.2       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, the research work consists of five chapter.

          The first chapter is the introduction pat it cover the concept of personal selling and its place in the society, it also contains the statement and significance of study and the scope of the study.

          Chapter two deals with the review of literature on personal selling. It covers the personal selling principles management of the sales force and ways of evaluating and controlling them.

          Chapter three is the research methodology. It is concerned with the source of data research population and samples, research design, data collection instruments and method of data administration.

          Chapter four consists of the data presentation and analysis: it is sub-divided into brief history of total Nigeria Plc the management of Total Nigeria Plc interview returns, presentation and analysis testing of hypothesis and discussion of findings.

          The last chapter five is the work.

1.6   LIMITATIONS OF 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.

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