The Effectiveness Of Personal Selling Strategies In
Marketing Of Cosmetics (A Case Study Of Bianca
Cosmetics Enugu)
1
TABLE OF CONTENTS
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE: INTRODUCTION
1.1
Background of the study
1.2
Statement of the problem
1.3
Objectives of the study
1.4
Formulation of Hypothesis
1.5
Significance of study
1.6
Scope of the study
1.7
Limitation of the study
1.8
Definition of terms.
2
CHAPTER TWO:
REVIEW OF RELATED LITERATURE
2.1
Personal selling defined
2.2
Development of personal selling
2.3
Orientation of personal selling
2.4
The roles of personal selling in a firm’s overall marketing effort.
2.5
Personal selling process and its application to industrial selling.
2.6
Personal selling strategies in marketing of cosmetics.
2.7
Types of personal selling
2.8
Advantages of personal selling over other promotional methods.
CHAPTER THREE:
RESEARCH METHODOLOGY AND DESIGN
3.1
Research design
3.2
Sources of data
3.3
Population of study
3.4
Sample size determination
3.5
Sampling technique
3.6
Research instrument used
3.7
Pre testing of research instrument
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3.8
Questionnaire administration and response rate.
3.9
Method of data treatment and analysis.
CHAPTER FOUR:
PRESENTATION,
ANALYSIS
AND
INTERPRETATION OF DATA
4.1
Presentation of analysis of data
4.2
Test of Hypothesis
CHAPTER FIVE:
SUMMARY
OF
FINDING,
RECOMMENDATION AND CONCLUSION.
5.1
Summary of findings
5.2
Recommendation
5.3
Conclusion
Bibliography
CHAPTER ONE
4
INTRODUCTION
1.1
BACKGROUND TO THE STUDY
According to 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 predicaments associated with production, finance and
labour have been resolved, then someone has to go out and knock at someone’s
door and sell.
This revelation is apparently acceptable because a product cannot be
produced at Enugu and is not available in place like Lagos where such product
is highly needed. This is the significance behind the notion of sales contention
that, they should investigate into the needs of consumers as well as filling them
with satisfaction and maximize profit objectives.
A critical analysis of the above statement highlights the importance of
the effectiveness of personal selling on the marketing of cosmetics. A product
may be of extremely high grade but has no utility until it gets to the hands of
prospective buyers, and the most appropriate route for passing products from
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manufacturing arena to the hands of potential buyers happens to be through
personal selling.
Personal selling is dynamic, flexible and volatile. Traditionally, it is
mainly associated with commercial transactions which has passed through
distinct eras that are characterized as, the eras of the early traders the American
peddlers and the era of the professional sales people. The early traders exist in
most ancient cities. Some of these earliest states based the primary portion of
their economics on trading with other communities. Traders typically have the
ownership of the goods being sold, manufactured either by themselves or their
immediate families. At times, they perform their marketing functions like,
transportations, and storage, in addition to selling obligations.
The American peddlers of the colonial era enable them sell their goods
to the then settlers. Most of these setters were immigrants who view 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 11. Under this
seen, the economy switched from the previous situation of sellers’ market to
that of buyers’ market in which goods were plentiful in supply. Due to the
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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 provided it can be supplied”. Goods had to be marketed
mainly for the facts that consumers now having choices and the selling adopted
a radical change to reject this new seen.
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 Director). She was married to His Excellency Ikemba Odumegwu
Ojukwu from Nnewi with children. She was the first beauty pageant. She
started as a small-scale business, and later developed into a distributor. Her
products are now distributed to places like Lagos, Abuja, Port Harcourt etc.
Infact, Bianca’s products are now nation wide products and even beyond. It has
been a 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,
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thus helped to reduce the high rate of social menace that would have associated
the situation of mass unemployment. However, the afore mentioned 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 a number of
recent developments. Some of are, the incessant increase in the number of
industries currently involved in the manufacturing and sales of different types
of cosmetics and besides of increase and efficient application of the divergent
promotional tools.
Thus, the management of Bianca cosmetic is not skeptical regarding the
wonders of personal selling in the marketing of cosmetics and that this promo
tool could only justify its wonders in marketing of cosmetics only when it is
effective to this end, the management is interested in knowing if the sales force
is effective or otherwise. This is the core of this study.
1.2
STATEMENT OF THE PROBLEMS
Bianca cosmetic industry has started experiencing a reduction in its sales
volumes in recent times. This low sales volume is caused by a keen
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competition that exist in the industry as regards the quality of the product,
customer service, and effective utilization of promo tools. This is a direct
opposite of what the company used to witness in the previous years. The reason
for 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. However, the company’s
management is seriously questioning the effectiveness of the sales force.
The specific problems to be addressed are:
- Is the ratio of sales expense to sales volumes high or low?
- Is the ratio of sales to sales call high or low?
1.3
OBJECTIVES OF THE STUDY
What ever the nature and structure of an organization, personal selling
has been acknowledge as the bedrock of its success over cut throat
competition. Thus enabling the company to generate more funds for its
operations.
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The aforementioned fact is the primary reason behind the huge amount
budget on regular bases into the sales departments. To this end, the objectives
of the study are:
- To verify if the ratio of sales expense to sales volume is high or low to
warrant further budget into the activities of the sales force.
- To see what can be done by management to change a situation of high
cost of sales returns.
- To determine whether the ratio of sales calls to sales volumes is high or
low.
- To see how a situation of high sales calls to sales volumes can be
reversed.
1.4
FORMULATION OF HYPOTHESIS
This study is meant to verify the effectiveness of personal selling in the
marketing of cosmetics. To this regards, the following hypothesis are
formulated:
1.
H0: The ratio of sales expense to sales volume is not high.
Hi: The ratio of sales expense to sales volume is high.
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2.
H0: The ratio of sales calls to sales volume is not high.
Hi: The ratio of sales calls to sales volume is high.
3.
H0: There is a low ration between current and past performance.
Hi: There is a high ratio between current and past performance.
1.5
SIGNIFICANCE OF THE STUDY
According to the public relations management of Bianca cosmetics, the
company has been and will continue to demonstrate its corporate and social
responsibilities. This is in justification with Brown’s contention of (1974). He
said if a company is to continue ensuring its consumers patronage, that it has
no other alternative than the maintenance of a clear cut competitive advantages,
and managing the marketing mix in a manner that will ensure continuous
customers satisfaction. Bianca cosmetics have been and will continue to strive
harder in the area of corporate social responsibilities.
To this regard, the significance of this study is to fulfill the following:
- Make recommendation to the management of Bianca cosmetics based on
how to overcome the problems of low sales volume as well as that of
high sales expense to sales volume ratios.
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- It is also a primary view of the researcher that both current as well as
potential researchers will find this work of utmost importance with
regard to directing and facilitating the bearing and solution to their
problems.
- The study will also be of help to other companies in the same industry
with Bianca cosmetics in their strife’s to surmount low sales volumes
and profitability.
1.6
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, Enugu State. The findings may not reflect the situation
in the whole branches, but by and large, what happens in Bianca cosmetics
here in Enugu can be said to apply to other branches.
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1.7
LIMITATION OF THE STUDY
Like I have said before, Bianca cosmetics are 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 researcher is compelled by time constraints to restrict her findings to only
the headquarter here in Enugu. In the same vein, financial constraint has also
played its role in reducing the assumed broad field of this study.
Finally, the non- chalet attitude of some of the respondents is another
ground for 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 to shy away from such fundamental questions. This indeed has
restricted these findings to very narrow areas.
1.8
DEFINITION OF TERMS
The following terms used in this study should be taken to mean the
following:
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MARKETING:
Marketing is defined as, a societal process by which
individuals and groups obtain what they want and need through creating,
offering and freely exchanging products of value with others.
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, personal selling, sales promotion and public
relations (the promo 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 making a sale. It is characterized by verbal exchange, gesture which allows
for 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.
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