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A STUDY OF THE EFFECTIVENESS OF ADVERTISING AND PERSONAL SELLING ON THE SALE OF INDUSTRIAL PRODUCTS IN THE NIGERIAN MARKET
(A CASE STUDY OF TRACTOR AND EQUIPMENT NIGERIA PLC ABUJA)
ABSTRACT
The primary aim of any established is to get people to contribute with the activities which will enable the organization to achieve its aims and objectives or goals. Therefore, this research was carried out to access the effects of advertising on personal selling on the sale of industrial product” with the case study of Tractor and Equipment Nigeria Plc Abuja. The research started by giving a brief history of Tractor and Equipment on how the advertising on personal selling are very effective in the sale of industrial product. The research work also test the hypothesis by accepting Ho: Advertising and personal selling does not have effect on the sales of industrial product and the method used is chi-square. The research finding responses: the researcher can comment that people strongly believe that advertising and personal selling play an important role in the sale of industrial product in any organization. And the number of questionnaire distributed were 50 while number of questionnaire collected were 40. Therefore, the research work recommend that sales of industrial product, company beyond should intensify its advertising and personal selling ability beyond the sale of its operation to the national level in order to capture the market out there. Finally, advertising and personal selling should serve as basic tool that will be use by organization when the product is in introductory stage of its life cycle.
CHAPTER ONE
1.0 INTRODUCTION
One of the most controversial situations in business today is what kind of advertising on personal selling is appropriate? If one were to accept endless lost of objectives to current advertising on personal selling practice that is offered by today social critics, one tend to answer “non” to the question. Today in Nigeria society, where advertisements and personal selling are not well organized, the consumer cannot readily find or buy goods needed, purchase them with a small expenditure of time and select the goods according to his particular tastes.
Generally, the communication function of advertising on personal selling should serve to assist consumers in their needs and wants. Also it should be guide to buying advertising on personal selling to the helpful to consumers in guiding them in their search for satisfaction, should be information, education and persuasive. The communication function advertising or personal selling should be able to tell consumers the uses of the product comparable with needs of consumers. In conclusion, advertising on personal selling only purpose to ideal that is the real goal of advertising on personal selling is effective communication that is better interpreted. The ultimate effect of advertising on personal selling be modifying the attitude and behavior of the receiver of the message.
1.1 HISTORICAL BACKGROUND OF THE STUDY
Tractor and Equipment Nigeria Limited, the sole authorized caterpillar dealer in Nigeria has changes its name to Mantral Nigeria Limited. The company, which was established in 1948, adopted a new name which became effective in 1st December, 2007 to bring into the correct position itself with its technical partner in Egypt and sister companies in Kenya, Tanzania, Uganda, Ghana and Russia. Tractor and Equipment is a subsidiary of Mantral Group of Companies which operates almost globally.
Since its beginning as a caterpillar dealer in 1929, Tractor and Equipment has grown from a farm machinery leadership in the rear half of blacksmiths shop in Sidney, Mantral, to a multi store operation serving portions of Mantral. Tractor and Equipment now Mantral Nigeria Limited deals with industrial products and services. The products and services of the company includes: tract loaders, track type tractors, hydraulic trucks, balle hoe loaders, telehandlerb, compactors, slid steer loaders, forestry machineries, pipe layers etc. In addition, Mantral services engineers can dispatched directly to customers work sites at any time with the necessary diagnostic and repair tools. Mantral also guarantees the high availability of genuine caterpillar parts of competitive prices.
In 1963, Mantral acquire a neighbouring caterpillar dealer in billings. Ash daris Machinery Company, which enlarge the market. Tractor and Equipments experienced growth opportunities in the mining and petroleum markets. In January of 1990, tract and equipment acquired a used truck engine business was moved into this facility.
In 1998, tractor and equipment acquired MP and E (machinery power and equipment). MP and E is the CAT rental store with branches in Mantaric billings. In 2004 tractor and equipment now Mantral has a total of 24 location to serve their customers. Mantral Nigeria Limited was appointed the sale caterpillar dealership for Nigeria in 1958 and it’s earn the largest caterpillar dealer in the world 2800 equipment sales in 1978. Tractor and equipment now Mantral found her way into Nigeria in 1997 when she intend to Unatral a six country caterpillar dealership previously held by Unilever and managed from UK by Unatral International. The company intends to reach from Egypt to sub-Saharan Africa faculting Nigeria. Mantral Nigeria Limited has its corporate headquarter in Lagos Nigeria at Billings Way, Oregun Industrial Estate, Ikeja. Fully into the sales of industrial products such as farm machinery and equipment, trade in and serving of agricultural, earthmoving materials handling equipment Mantral Nigeria Limited will continue to represent caterpillar in Nigeria as the sole authorized dealer, distributing and supporting the complete hire of CAT construction machines, material handling equipment and power generation sets of all sizes and power ranges in addition to Olympia brand generation sets. Mantral Nigeria Limited formerly Tractor and Equipment employs more than 300 highly qualified and well-trained professionals operating through a network of five (5) branches in Nigeria including Lagos, Port Harcourt, Warri, Kano, Katsina and Abuja in order to ensure the fulfillment of customers’ needs. Mantral remains totally dedicated to providing superior products and services support, those playing a direct role in the further development of all sectors of the Nigeria economy.
1.2 STATEMENT OF RESEARCH
The major thing encountered by most of businesses today is the alarming therese of advertising on personal selling most especially in industrial product. Base on this, a lot of techniques should be employed to cut down the loss of the advertising on personal selling to the bearable minimum.
Organization must have to understand that such loss increase affect organization profit margin and consequently lead to lack of power expansion if the product is not accepted in the market.
However, there are other problems that are external and cannot be controlled all the organization needs to strictly on the specification of requirement demanded of them by such external factors of business which include people living in rural area where there is no electricity and even government policies and population size etc.
1.3 OBJECTIVE OF THE STUDY
The main objective of the study is to find out the effect of advertising on personal selling on the sale of industrial product to ascertain the needs of advertising on personal selling of industrial product in increase sales of industrial product.
1.4 SIGNIFICANCE OF THE STUDY
This research is significance considering the effect of advertising on personal selling of the sale of industrial product. The study will enable the organization, researchers alike to benefit morally, intellectually and can contribute in the development of advertising on personal selling in the society and organization in general.
The study of effective of advertising on personal selling on the sale of industrial product will broaden our intellect and knowledge of running the affairs of an organisatioin board effectively and efficiently.
1.5 SCOPE AND LIMITATION OF THE STUDY
The study covers the effect of advertising on personal selling in the sale of industrial product. This study limits itself to the needs, importance, function and objective of advertising on personal selling as they affect the sale of industrial product. Although, this work has accomplished the purpose, which it set out to achieve, the study was limited by many constraints, chief amongst are:
- Limited Fund: Financial constraints narrowed this research to tractor and equipment.
- Limited of the time: Due to limited time, this research is unable to gather more facts.
- Inadequate current information and non-challant attitude of library staff
- Dishonesty of respondents in providing relevant information posed as a problem.
1.6 STATEMENT OF HYPOTHESIS
According to business administration in Africa by Philip Kotler defined hypothesis as argued statement of relationship between two variables. Based on this work, these hypotheses were formulated.
HYPOTHESIS I
Ho: Increase in the cost of advertising on personal selling does not affect organization profit margin.
H1: Increase in the cost of advertising on personal selling affect organization profit margin.
HYPOTHESIS II:
Ho: Advertising on personal selling does not have any effect on the sales of industrial products.
H1: Advertising on personal selling has effect on the sales of industrial product.
HYPOTHESIS III:
Ho: Marketing your industrial product known to audience product
H1: Marketing your industrial product known to audience increase the sales of the product.
1.7 DEFINITION OF TERMS
ADVERTISING: Mccan Evideron Inc describe advertising as “truth will told”. Albert Laske describe advertising as a salesmanship in print. Advertising may be defined as a communication process, marketing process, an economic process and social process depending on the print of the view. A working definition of advertising is the non personal communication presentation of information, goods and services or product, services or ideas by identified sponsor through the various media. Advertising can also be defined as paid non-personal communication through various media by business firms, non-profit organization and individuals who hope to inform remind or persuade members of a particular audience.
PERSONAL SELLING: Personal selling is an oral presentation in a conversation with one or more prospective purchasers for the purpose of marketing sales and it can be seen as face to face. Interaction between two or more people (the seller and buyer) with the aim of closing the sale. And also personal selling is the social process by which an industrial and group obtain what they need and want through creating and changing product/service and value with others.
MARKET: This is the medium for exchange between buyers and sellers
PRODUCT: It is anything that can offer to a market for attention, acquisition used or consumption that might satisfy a want or a need. It includes physical object, services, personalities, places organization and ideas. Product can also be defined as anything that is offered to the market which is capable of solving or satisfying any giving wants.
MARKETING: Marketing simply means to identify with the needs and want of consumers, transfer this needs and want into goods and services in order to satisfy human wants with profit.
MARKETING MIX: Is a mixture of marketing techniques such as pricing, packaging and advertising used to promote sale of a product.
SALES FORCE: These are people trained or employed for the purpose of selling product service or idea through face to face explanation or negotiation.
MARKETING CONCEPT: This is the key to achieving organizational goal lowest of being more effective than their competitors in integrating marketing activities towards determining and satisfying the need and wants of target market.
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