The Effectiveness Of Personal Selling In The Marketing Of Petroleum Products In Nigeria (A Case Study Of Total Nigeria Plc)

Project and Seminar Material for Marketing

The Effectiveness Of Personal Selling In The Marketing Of Petroleum Products In Nigeria (A Case Study Of Total Nigeria Plc)

Chapter One


1.1 Background of the Study

A 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.

1.3 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.

1.6 Limitations and Constraints to 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.

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary

During the period of investigation and interview conducted for writing this report, it is noted that as completive petroleum product. Intensified in today financial has coursed petroleum top management to thank a seriously in alternative source active for survival and portability.

To Nigeria plc for over a country, has distinguished itself as a leading petroleum parastatal and a major contributed to the economics advancement and development of Nigeria

Unlike in the manufacturing from financial aspect can be described as these petroleum or lead these funds to industrial and housing sector of economic. There ability to mobilize public founds during from and is sustained by public confidence respect in them.

Like many other purchases took at the limited stage, marketing technologic were not consider necessary because due to shortage of most product where as produce of consumer of used. The consumer want or need any them producing a product.

The Nigeria economy is dominated by the oil sector. This is so because the oil sector produce PMS, DKP, AGO, Gas e.t.c that serve a revenue petroleum sector is a seller market where little or no concern is directed towards consumer satisfaction marketing forms on integrated part of the success of any business but, it impact on the petroleum sector or company is being stalled by greedy government officials and dealers since deregulation in 1997, the refineries are set to begin operation. The petroleum in petroleum sector has denied political to the application of marketing concept.

5.2 Conclusion

Regulatory policy of petroleum sector and marketing concept, the objectives of this work research is to highlight the area of regulation of the petroleum sector and how they are related with marketing concept the petroleum sector is not actually concerned about consumer satisfaction. It is actually a seller market, where the seller is to sell his product and maximize profit the research work tends to give a marketing concept approaches to regulatory policy reform to better the country conditions

The student it is relevant because it is part fulfillment for the award of the higher national in marketing. It will also help to broaden student knowledge in the field.

To the firm chosen it will increase the number of the competition in the petroleum industries, the firm will find it usefully in adopting various strategies that will ensure the survived in the present competitive word and finally to the petroleum industry. It will help to ensure effectiveness and efficiency operation

The study covers the entire total Nigeria plc. The study economic critically the general theories of petroleum in a competition in petroleum sector the review of the existing.

Literature primary research funding, function, constraint and citizen are also examine to clarity. Program is made in examine all these fund, special emphasis in level in the petroleum for the study.

5.3 Recommendations

As in sector deals with the steps following by the research to collect data from sample.

Data collection method in petroleum for the proposal of this research work. T he instrument adopted in collection data are observation and interview method.

  • Observation Method in Petroleum Marketing: in the process of this study using observation method, the people observation were the petroleum moving which comprises of major and independent marketer e.g. total filling station, MRS Filling Station, AGIP Filling Station, OANDO Filling Station and OLAK Filling Station.
  • Interview Method: This project work used face to face interview, it was used in have to prepare well for the interview before I went for it.

For the research work the data to be collected are primary and secondary data.

Primary data will include funds from the observation and interview conducted did more damage them help to the oil sector. The price of PMS/Litre increase from #65 to #97 still there was scarcity of petroleum products in some state e.g. Kano, Yobe

The means that an organization efforts, at satisfying it customers it is a simple, but very important idea. Marketing function in the area of product development, promotional, distributional pricing.

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