INFLUENCE OF PERSONAL SELLING ON MARKETING PERFORMANCE IN TELECOMMUNICATION INDUSTRIAL

CHATPER 1

INTRODUCTION

1.1   Background of the Study

In today’s economy, the use of Personal selling and marketing performance to the companies and different businesses are very essential in increasing their sales and performance. The development in the telecommunication industry all over the world is very rapid as one innovation replaces another in a matter of weeks.  A major breakthrough is the wireless telephone system which comes in either fixed wireless telephone lines or the global system of mobile communication (GSM).

The business environment has become very competitive in the 21st century due to the growth in technology, infrastructure and access to information around the globe. This has made the environment very complex and consumer preferences keep changing because of the low switching cost in the market. Due to this increasing demand of consumers in the market, management of business organizations have to increase their resources with attention focused more on attracting and retaining its customers. In the telecom industry where competition is intense, the criterion for success would much depend on creating awareness, persuasion and informing customers of the existence of offerings.The ever increasing competition in the global market has prompted organisations to be determined and ensure satisfaction of customer needs and wants more efficiently and effectively than ones competitors (Kotler, 2008). The Nigerian telecommunication industry is one area that has experienced an increased competition in the last six (6) years.

Most business organizations operate in a complex and competitive environment where demands are constantlychanging. To confront this challenge, management of business organisations have had to increase the levels ofresources with attention focused on attracting and retaining customers. On the other hand Personal Selling also plays an important role in affecting consumer buying intention. Personal selling is an oral presentation in a conversation with one or more buyers for the purpose of making sales. Personal selling is a unique element of marketing communication. Unlike advertising and sales promotion which main focus is to create awareness about the existence of a product or service and provide information as to the features of the products, its availability and price on a mass basis, personal selling is an individualistic approach that is designed to meet specific need of prospects. Personal selling refers to a set of activities directed at the attainment of marketing goals by establishing and maintaining direct buyer-seller relationships through personal communication. Personal selling has a unique place in the marketing communication mix. While other promotional tools (advertising, public relations, and sales promotion) are non-personal communication tools, which have one-way communication with the target audience, personal selling enables the company to communicate directly with its target customers. The key objective of personal selling is to retain existing customers and convert prospects into clients.

Kotler (2013) noted that personal selling is a useful vehicle for communicating with present and potential buyers. Personal selling involves the two way flow of communication between a buyer and seller often in face to face encounter designed to influence a person’s or group’s purchase decision. However, with advances in technology, personal selling also takes place over the telephone, through video conferencing and interactive computer links between buyer and seller though personal selling remains a highly human intensive activity despite the use of technology. Kotler, (2013) also noted that personal selling serves three major roles in a firm’s overall marketing effort. Salespeople are the critical link between the firm and its customers; salespeople are the company in a customer’s eyes.

Marketing performance is the improvement of the organizational status in the market (market share), improvement of the customers’ perception of organization and its products, and increase in their loyalty toward organization (Martin, 2005). Marketing performance consists of three components including loyalty, satisfaction, and trust. Each of these components has been described in the following section. Customer satisfaction: the customer satisfaction is transforming to the companies’ final goal in the complex and competitive business environment. Customer satisfaction is a concept beyond the positive effect on the organizational efforts.

1.2   Statement of the Problem                      

Since the main goal of an organization is to satisfy the needs of customers which will lead to increased profit. This indicates that without the existence of customers business activities will be futile.The most obvious problems of telecommunication firms in Port Harcourt is how to provide effective services to the nation, which has been yearning for an improved telecommunication services for a long period of time. In response to that, the Federal Government provided for the creation of a company that will function purely on commercial basis.

Despite the immerging consensus or the need for firms to differentiate their products in order to create and sustain competitive advantage and the fact that competitive forces in the Telecommunication firms are determined by the degree of differentiation, little effort seem to be made by firms in this industry to harness the benefits associated with differentiating their products . In an industry such as the Telecommunication firms with most of its products being homogeneous in nature, differentiation is largely the determinant of profitability.

1.3   Purpose of the Study

The purpose of the study was to evaluate the influence of personal selling onmarketing performance in Telecommunication industrial. The specific objectives are as follows:

1. To examine the association between Order Getter and Marketing performance in Telecommunication industry.
2. To examine the association between Order Taker and Marketing performance in Telecommunication industry.
3. To examine the association between Support Personnel and Marketing performance in Telecommunication industry.

1.4   Research Questions

The following research questions are formulated.

1. To what extent does Order Getter affects marketing performance in Telecommunication industry?
2. To what extent does Order Taker affects marketing performance in Telecommunication industry?
3. To what extent does Support Personnel affectmarketingperformance in Telecommunication industry?

CONCEPTUAL FRAMEWORK OF PERSONAL SELLING AND MARKETING PERFORMANCE

          SOURCE:(Researcher’s Desk 2015).

1.5   Research Hypotheses

An attempt to make our final answers not to look like mere assumption the hypotheses of this study will be stated as follows:

Ho1:  There is no significant association between Order Getters and Sales Growthin the Telecommunication industrial.

Ho2: There is no significant association between Order getters and Market share in the telecommunication industry?

Ho3: There is no significant association between Order Taker and Sales Growth of Telecommunication industrial in Port Harcourt.

Ho4:  There is no significant association between Order taker and market Share.

Ho5: There is no significant association between Support Personal and Sales Growth of Telecommunication industrial.

Ho6:There is no significant association between Support Personnel and Market Share

1.6Significance ofthe Study

This study would be significant in the promotion of products and services by the telecom operators in Port Harcourt. This study would also be relevant to companies in the service industry to determine the various factors that influence the consumer’s purchase decisions to enable them adjust their strategies. It will also help the firms to properly utilize their resources, increase their profitability and growth.

The importance of this study is to enhance sales performance in Telecommunication firms in Port Harcourt and also it help other section who have different product to enhance their sales performance. In addition it will generate revenue for the organization and also help in developing the communication industry.

1.7   Scope of the Study

The scope of this study will cover the empirical examination of Personnel Selling and Marketing Performance of Telecommunication Industry in Port Harcourt. The geographical scope is Rivers State of Nigeria.  The study will be limited to Telecommunication Industry.

1.8   Limitation of the Study

The only limitation faced by the researcher in the course of carrying out this study was the delay in getting data from the various respondents. Most respondents were reluctant in filling questionnaires administered to them due to their busy schedules and nature of their work. The researcher found it difficult to collect responses from the various respondents, and this almost hampered the success of this study.

1.9   Definition of terms

Personnel Selling: Personal selling has become one of the vital promotional tools in marketing

Marketing Performance:Isthe improvement of the organizational status in the market (market share), improvement of the customers’ perception of organization and its products, and increase in their loyalty toward organization

Order getters: are the front line sales persons whose job is to persuade the customers to make a direct purchase and to acquire new customers

Order Taker: can be defined as a type of sales person who collects orders of goods and commodities but he does not make any attempts to increase existing sales, increase the frequency of orders or to find new customers.