Impact Of Personal Selling In The Marketing Of Beverages

(A Case Study Of Milo Product Of Nestle Nigeria Plc)

5 Chapters
|
89 Pages
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11,813 Words
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Personal selling plays a crucial role in enhancing the marketing strategies of beverages, exerting a significant influence on consumer behavior and brand loyalty. By employing personalized interactions, sales representatives can effectively convey product benefits, address consumer concerns, and establish rapport, thereby fostering trust and credibility. This direct engagement enables beverage companies to tailor their messaging to specific consumer preferences, demographics, and purchasing behaviors, ultimately driving sales and market penetration. Moreover, personal selling facilitates real-time feedback collection, allowing companies to promptly adapt their marketing tactics to evolving consumer demands and market trends. Through personalized attention and customized solutions, personal selling enhances brand visibility and differentiation in a highly competitive beverage market landscape. Consequently, it serves as a dynamic tool for building long-term relationships with consumers and securing repeat purchases, thus solidifying the brand’s market position and driving sustained profitability.

ABSTRACT

The importance of personal selling cannot be over emphasized. This has informed this study which is on the impact of personal selling on the marketing of beverages. A case study of Milo.
The objective, the study among other things include:
– To determine the impact of personal selling on the marketing of Milo.
– To find out whether personal selling strategy adopted in the marketing of Milo has any significant impact on the sales volume of the product.
– To determine whether the personal selling strategy adopted in the marketing of Milo is adequate.
Based on this, an indepth literature review was conducted on related materials and data were also sourced using questionnaire and personal interview.
The population of study include consumers of Milo, dealers and employees of Nestle makers of Milo.
Statistical techniques and method such as topman and Bournleys formulaa were used to determine the sample size while tables and percentages were used for the analysis.
Data collected were clinically analysed and used in the testing of hypothesis formaulated.
Thus the following findings were made.
That personal selling strategy adopted in the marketing of Milo have positive impact on the performance of the product.
That personal selling strategy builds good will for both the company and its product.
In the light of this, recommendations were made on how to effectively and efficiently exploit the benefits of personal selling strategy particularly in the marketing of Milo within Enugu metropolis.

TABLE OF CONTENT

Title Page
Approval Page
Dedication
Acknowledgement
Abstract
Table Of Contents

Chapter One
1.1 Background Of The Study

1.2 Statement Of Problem
1.3 Objectives Of The Study
1.4 Formulation Of Hypothesis
1.5 Significance Of The Study
1.6 Scope Of The Study
1.7 Definition Of Terms

Chapter Two
2.1 Concept And Meaning Of Personal Selling

2.2 Personal Selling As A Promotional Tool
2.3 Personal Selling Positions
2.4 Personal Selling Functions
2.5 Personal Selling Process
2.6 The Role Of Personal Selling In The Marketing Of Beverages
2.7 Prospects Of Personal Selling
2.8 Characteristics Of Sales Force
2.9 Information Gathering Function Of The Salesperson
2.10 Tasks Perform By Salesperson
2.11 Personal Selling Strategies

Chapter Three
3.1 Research Methodology

3.2 Sources Of Data
3.3 Research Instrument
3.4 Population Of Study
3.5 Sampling Technique
3.6 Determination Of Sample Size
3.7 Method Of Questionnaire Distributed
3.8 Test Statistics Used.

Chapter Four
4.1 Data Presentation, And Interpretation

4.2 Testing Of Hypothesis

Chapter Five
5.1 Summary Of Findings

5.2 Conclusions
5.3 Recommendations
Bibliography
Appendix

CHAPTER ONE

1.1 BACKGROUND OF THE STUDY
Personal selling which is one of the functions of marketing is very important in the business and marketing life of an organisation, it involves the face to face communication of information from a seller to a prospective buyer, it involves the interaction of both the seller and the buyer for the purposes of facilitating exchange for the mutual satisfaction of both parties.
It has long been recognized as the oldest and probably the most important component of the promotional mix, its age can be ascertained by the fact that word of mouth and recommendation by others long in existence as a method of winning somebody over to some idea.
A curious objective of Nigerian society and habits will reveal that selling is a major and ubiquitous economic activity, it would probably not be wrong to describe Nigeria as a nation of salesman and women.
Virtually every house in Nigeria has a room that serve as a shop, this is addition to numerous Kiosk dotted all around the towns and villages and the hundreds of thousands of Hawkers that are virtually part of the Nigeria landscape. Selling is thus a job which the Nigerian takes very seriously, but paradoxically, the professional salesman whom the seller looked down upon, various reason can be adduced for this, firstly, the generally how educational qualification of most of the salesmen.
Secondly, there is the fact that the outward appearance of these salesmen is at best scruffy and finally there is general feeling of insecurity which makes the average Nigerian suspicious of any unvisited visitor who is often assumed to be a potential armed robber.
Insipite of all this, there is little doubts as to the critical role which personal selling, if properly applied could play in the fortunes of a company, particularly, a company operating in the industrial market.
The importance of personal selling is inherent in its nature which involves the use of salesman who would usually be quite flexible in pitting across their message to ensure that it confirms to the peculiar needs and idiosyncrasies of their audience.
Another aspect of personal selling which demonstrates its special nature is its lack of impersonality. This quality means that there is the possibility that the commercial in a largely friendly and relaxed atmosphere is focused on general marketing strategies with an emphasis on when marketing and promotional strategies should be personal selling driven or adverting driven. Most firms, however employ both promotional mixes when this is the case, it is important to determine the most effective way to integrate personal selling and advertising efforts.
On typical approach pointed out by Eisenhart (1998: 92 – 97) is to use advertising to generate company’s and product awareness and to identify potential customers. These sales leads are then turned over to the sales force for personal selling attention. The basic objective is to use low cost percontact advertising to identify prospects while more expensive personal selling efforts are used to turn prospects into customers. The effectiveness of the type of promotional strategy was documented by a study of 2,500 sales people that found mode then 85% of the salespeople and received leads from advertising during the past year.
A specific example of effective use of advertising and personal selling is the promotional strategy of Nestle to introduce Milo beverages into the market.
The promotional strategy had four objectives:-
1. to increase brand awareness by 60%
2. To generate high quality leads for the sales force
3. To increase sales by 10% in six months and
4. To improve sales force morale.
Although a typical approach would be to advertise in trade publications to increase basis and spend considerable time arraying shelves setting up displays, accepting returned merchandise or addressing other problems.
This unique promotional mix has produced strong relationship with retailers end has allowed the company to compete against larger firms, although an emphasis on personal selling in the beverage market is type at this time changes in technology indicate that personal selling may become more important in non – traditional business during the next few years as commented in sales technology increased importance of personal selling.

1.2 STATEMENT OF PROBLEM
Personal selling which is one of promotional tool that any firm or company can adopt in the marketing of its product whether in the consumer market or industrial market, is a vental promotional to instrument in the marketing of beverages particularly in the marketing of Milo by Nestle Plc. This as resulted into various selling positions taking by salesperson at different retail out lets for the product. These potions are either as order takers (counter salespersons) or order (missionary salespersons).
The market for this product Milo attracted the combinations of the marketing promotional mix which include advertising, sales promotion, personal selling, publicity and pubic relations. Of these promotional mix, personal selling strategy seems to be the most vital promotion tool that is being used taking cognizance of the products position within the product life cycle. Thus, in every retail outlets where the product brand is salespersons are seen performing various selling function either in order takers, order getters etc.
Some striking questions one needs to ask taking congisance of other factors that may bear on the performance of a product, what impact does personal selling bear on the marketing of Milo, does it have any positive impact on the sales volume and profitability of the product brand?
In other to provide candid answers to these and many more. This study will critically evaluate the impact of personal selling in the marketing of Milo product by Nestle company.

1.3 OBJECTIVES OF THE STUDY
The objectives of the study among other things include the following:-
1. To determine the impact of personal selling on the marketing of Milo
2. To evaluate the personal selling strategy adopted in the marketing of Milo.
3. To find out whether personal selling strategy adopted in the marketing of Milo creates awareness for the product.
4. To determine whether personal selling strategy adopted in the marketing of Milo has any significant impact on the sales volume of the product.
5. To determine whether the personal selling strategy adopted in the marketing of Milo has any significant impact on the profitability of the product.
6. To determine whether the selling strategy adopted in the marketing of Milo is in adequate or not.
7. To recommend possible ways of improving on the personal selling strategy adopted in the marketing of Milo.

1.4 FORMLUATION OF HYPOTHESIS
Ho1: Personal selling strategies used in the marketing of Milo do not have any significant impact on the sales volume of the product.
Hi1: Personal selling strategies used in the marketing of Milo have any significant impact on the sales volume of the product.
Ho2: Personal selling strategies used in the marketing of Milo do not have any positive impact on the profitability of the product.
Hi2: Personal selling strategies used in the marketing of Milo have any positive impact on the profitability of the product.
Ho3: Personal selling strategies used in the marketing of Milo impact negativity on consumer patronage of the product brand.
Hi3: Personal selling strategies used in the marketing of Milo impact positively on consumer patronage of the product brand.
Ho4: Personal selling strategies used in the marketing of Milo do not have significant impact in creating consumers satisfaction for the product.
Hi4: Personal selling strategies used in the marketing of Milo have significant impact in creating consumers satisfaction for the product.

1.5 SIGNIFICANCE OF THE STUDY
No research work is a mere pre-exercise, therefore the study will be of great benefit to the following:-
First and foremost, this study will be of benefit to the company (Nestle Nigeria Plc) and marketers of Milo as it will indicate the effects and defects of using personal selling as a promotional strategy.
Again, the study will be of significance to the consumer of Milo as it reveals positive ways of building and cementing salesperson –customer relationship which will invariably increase customer satisfaction.
Besides, both the researcher and the readers will gain an indepth understanding and knowledge from the information contained in the study which will stir up further studies.

1.6 SCOPE OF THE STUDY
The scope of the study defines the limits of the investigation to be carried out. In view of this, the study will critically investigate the impact of personal selling in the marketing of Beverages particularly the effect or the customer patronage sales volume and profitability.
Due to time and resources, constraints, they will be limited to Enugu metropolis.

1.7 DEFINITION OF TERMS
Personal selling: A face to face sales representation by a person called the
seller to another called the buyer.
Strategy: It is a work plan aimed at achieving a defined objectives or selling target.
Brand: This is a name or symbol that differentiates a product
from another.
Product: Anything that is of value or useful and can be offered for
sale.

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Impact Of Personal Selling In The Marketing Of Beverages:

Personal selling can have a significant impact on the marketing of beverages, whether they are soft drinks, alcoholic beverages, or other types of drinks. Here are some ways in which personal selling can influence the marketing of beverages:

  1. Relationship Building: Personal selling allows beverage companies to establish and maintain relationships with key customers, such as bars, restaurants, and retailers. Building strong relationships can lead to long-term partnerships and repeat business.
  2. Customization: Sales representatives can work closely with customers to understand their specific needs and preferences. This enables beverage companies to tailor their product offerings, promotions, and pricing to meet the unique requirements of each customer.
  3. Education and Training: Sales representatives can provide training and education to customers on the features and benefits of their beverage products. This is especially important for premium or specialized beverages where consumers may need guidance.
  4. Brand Representation: Salespeople act as the face of the brand when interacting with customers. Their knowledge, professionalism, and enthusiasm can positively influence how the brand is perceived by customers and end consumers.
  5. Sampling and Tastings: Personal selling allows for product sampling and tastings, which can be a powerful way to introduce new beverages to potential customers and get them to try the product before making a purchase.
  6. Feedback and Market Insight: Sales representatives are on the front lines and can gather valuable feedback about consumer preferences, market trends, and competitive intelligence. This information can be used to refine marketing strategies and product development.
  7. Promotions and Incentives: Salespeople can negotiate promotional activities, discounts, and incentives directly with customers to drive sales and increase brand visibility.
  8. Handling Objections: Sales representatives can address customer objections and concerns in real-time, which can be crucial in overcoming barriers to purchase.
  9. Merchandising Support: Sales reps can help with in-store merchandising, ensuring that beverage products are displayed prominently and effectively to attract customer attention.
  10. Market Expansion: Through personal selling, beverage companies can identify new market opportunities and potential customers, leading to the expansion of their customer base.
  11. Trade Shows and Events: Sales representatives often attend industry trade shows and events, where they can network with potential customers and showcase new beverage products.
  12. Feedback Loop: Personal selling creates a direct feedback loop between the company and its customers, allowing for quick adjustments in marketing strategies and product offerings based on customer reactions and needs.

However, it’s important to note that personal selling can also be resource-intensive, requiring a dedicated sales force and associated costs. Beverage companies need to carefully assess the cost-effectiveness of personal selling strategies and consider the specific characteristics of their target market and product portfolio. Additionally, the impact of personal selling can vary depending on the type of beverage, market dynamics, and competition.