Professional Documents
Culture Documents
Chapter One 1.1 Background To The Study
Chapter One 1.1 Background To The Study
INTRODUCTION
The economic realities of Nigeria over the years have exposed the marketers to serious problems.
It is an open fact that industrial products represent the origin of other products, most especially
the consumer products. It is also indisputable that although advertising, sales promotions and
publicity play an important role in the industrial promotional mix, personal selling serves as the
main selling instrument. It is no gainsaying therefore, that the level of success of an industrial
This prominent position occupied by personal selling can be easily understood since while the
other marketing communication elements such as advertising, sales promotion, and publicity
create awareness and knowledge for a company’s product, the onus is on personal selling to
convince the potential consumer through person to person interaction to develop a lone for its
product in preference to other competing ones and see to it that the consumer parts with his
money for the company’s product. We have chosen Chemical and Allied Product Plc (CAP) among
other manufacturers of industrial products due to our being impressed by their use of sales force
for effective personal selling especially now that the Nigerian consumers are becoming more
sophisticated and selective in their demand for the consumption of industrial products. These and
1. 2 STATEMENT OF PROBLEM
The bulk of the selling activities of any industrial products rest comparatively on the company’s
sales force much more than is the case with consumer products. This is so because with the latter
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the consumer has already realized the need for such a product and all the needs for the product
may not have been known to him. It may therefore required skilled sales personnel as well as
sophisticated equipment for visual displays and practical demonstration to convince the potential
customers the need for the product. For this reason, it I necessary to ponder on the following:
How effective and comprehensive are the recruitment staffing and training procedure of
How appropriately equipped are the industry’s salesmen for effective personal selling
efforts?
How adequate are the supervision, levels of control, remuneration and other incentives as
The purposes of this study among others are centers on the following:
To under study the efficacy of the management of the industry’s sales forces.
To examine how realistic and attainable the sales target and objective of the industry are.
It is expressed that at the conclusion of this study, its significance would have proved itself. It is
hoped that it will prove to be of immense benefit to the sales management of the industrial
products in general and especially the industrial paints, which normally should be interested in the
suggestions towards improved efficiency of its sale force and consequently greater sales results.
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1.5: THE RESEARCH QUESTIONS OF THE STUDY
The research questions for this research work are outline as follows:
1. What are the reasons why personal selling is the most appropriate marketing technique for
industrial products?
3. What are the likely hindrances to effective personal selling of industrial products?
4. Do effective recruitment, Selection and training of the sales force enhance effective personal
selling?
Personal selling is the most appropriate channel for selling industrial products
Effective recruitment, Selection and training of the sales force enhance effective personal
selling.
More than ever before, industrial products manufacturers like other products are facing great
challenges to their survival in the present day economic realities. The emphasis now is for the sales
management to explore the virgin avenues to persuade its present and potential customers to
The study shall examine how, particularly CAP is weathering this storm. To do this, administration
employed.
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1.8 THE LIMITATIONS OF THE STUDY
As it would be expected with studies of this nature, this research is constrained by some factors:
The list of the constraints includes the generally non-cooperative attitude of members of staff of
the company to the management cadre when it comes to offering information about their
organization.
Another constraint was the time available. Because of the nature of our respondents, salesmen for
industrial paint, it was pretty difficult to get up to ten salesmen in a single company as desired. The
alternative would be to travel to some other towns and time made this virtually impracticable.
Finance is another constraint; cost of traveling to places to obtain desired and required information
For the purpose of clarity and understandability, some terms used are considered definable. These
Target Market: The group of marketing segment towards which all marketing activities
are directed.
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Promotional Mix: These are activities that is intended to increase the number of buyers
promotion etc.
Advertising: Any form of non- personal presentation of goods, services, and idea for
Brand: A name, term, symbol or the combinations of these names that differentiate
The company started operation in Nigeria in 1955 as a trading concern, importing and selling
industrial products from Britain. This continued till 1962 when it started to manufacture its own
paint locally. The Chemical and Allied Product Limited (CAPL) was given to the company when it
changed its name in 1978 in line with the Federal Government indigenization decree of 1974 when
the company was acquired by Nigerians and other bodies in Nigeria. The company later changed to
Presently, the company’s operation has become so diverse with which it can be described as a
leading manufacturer of industrial and consumer product. Its area of specialization includes
manufacturing of paints, pharmaceutical, agricultural and industrial chemicals. Of all these, the
paint division [manufacturing and marketing constitute the core of the business of the company.
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REFERENCE
Aderika, E.O., et al (1996). Principle and Practice of Marketing. Enugu, Jomoe Enterprises
Nigeria.
Charles, Rueben (1982). Marketing: concepts and Applications. 1 st Ed. New York: McGraw Hill
Book Company.
Cole, A.A. (1999). Basic Principal of Marketing. Lagos, Beyus Consults, marketing Consultation
and analysis.
Martins, L.B. (1996). Marketing Concepts and Strategy: London, Macmillan Press
Publishers Ltd.
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CHAPTER TWO
LITERATURE REVIEW
The term marketing concept has been subjected to as many definitions as there are authors who
have variously written about marketing. A source explains marketing “as the management process
responsible for identifying, anticipating and satisfying customers’ requirement profitably. In order
to accomplish this task of satisfying target customers, companies develop what is called the
marketing mix.
Marketing mix, according to Stanton, is the term that is used to describe the combination of the
four inputs that constitute the core of a company’s marketing system: The Product, the price
These four variables form the basic area of alteration as a business organization attempts to satisfy
its customer’s profitability. These mix need to be properly blended for successful marketing
activities.
Personal selling can be described as a flexible interaction between the sales person and the
individual customer for the purpose of making sale and purchases. Personal selling is also defined
as interpersonal, face to face interaction for the purpose of creating, modifying, exploiting or
aimed at selling effort involving persuasive face to face discussion between the sales personnel and
the prospective buyers for the purpose of making sales. In a person to person communication
process in contracts with other forms of promotions, undoubtedly, personal selling is the most
persuasive and effective form of all the promotional system. As good as it may be, it equally
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attracts the largest share of the communication promotion budget. This results from the fact that
the cost of reaching one person the\rough personal selling is relatively higher than is the case with
The high cost of personal selling not withstanding, it is favoured than other mode of promotions
It is more effective especially where a limited number of individual are the target market.
It allows for practical display or demonstration of the company’s product with on-the-spot
response of the potential buyers. Feedback can easily be obtained, objection handled and
Though advertising and other promotional system create awareness for a company’s
product, they may not be potent enough to motivate sales, hence reliance on personal
selling.
Sales people assist in sensitizing and influencing customers to service old account and
From the discussions so far, it can be seen that personal selling much more than any other
promotion mix, is relevant and appropriate to industrial products marketing than it is to consumer
There is need for practical demonstration because of the high technical and complex nature of
before and after sales services that can only be performed by sales person.
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It is common practice to find the sales person visiting and inspecting the plants and equipment of
This vision sometimes leads to identification of more economical and modern ways of producing
products.
Industrial Products are those goods or services that are purchased for use in making other
products or use in the operation of an organization. While consumer products on the other hand,
are product destined for used by ultimate consumers or households and in such form that they can
be used without further processing. The two definitions above summaries the fundamental
difference between industrial and consumer products. In a nutshell, industrial goods are
distinguished from consumer goods based on the following attributes of industrial goods:
The buyers and dealers are well defined and are very few.
Classification of product into either an industrial or a consumer product does not follow a rigid
procedure, as there is no clear line of demarcation between these products. However, one useful
means or gain about this is either through the use into which the products are put or how they
enter the production process as well as their contribution to the structure of the industrial user.
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The following are the main classes into which industrial products can be put:
Heavy equipment
These include those major equipment that company employs in its productions processes used to
build road, building and machinery such as locomotives, turbines machine tools etc.
A common feature of this class of equipment is that they are sometimes designed to meet the
Light Equipment
Light equipment is cheaper in price when compared to heavy equipment. They are usually
available in standard sizes from several manufacturers. Purchased on a more routine manner,
involve less decision- making rigorous and less negotiation and are sometimes used to operate the
heavy equipments. These equipment include tools, instruments, small motor etc.
These are the basic or processed materials of the land and sea. Under this category are logs,
cotton, iron ore, crude oil, fishing net, chemicals etc. A common feature of processed materials is
their undifferentiated nature and there are usually competition on the services rendered, such as
These are used by an organization as part of its normal operation and they do not become part of
the finished product. Their marketing and distribution channels are similar to those of the
consumer products. Their prices are low and purchased frequently. Examples are cleaning,
Services
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By services, we mean all intangibles that are acquired by an organization to aid it in its operation
process. They include insurance, banking, consulting and shipping. Their qualities, which are
usually difficult to measure, largely depend on those who tender them, such as the technical
The methods by which industrial and consumer products are marketed as a basis for distinction
can best be elaborated through analysis of the place as they relate to each product category.
Product:
attributes that make up the product. There is need to ensure that the product composition
including the package for protection can satisfactorily meet the needs of the industrial buyers.
Other components of the industrial product mix are the emphasis placed on both before and after
Price:
Though both industrial and consumer product purchases are sensitive to price the greater
sensitivity is with the ultimate consumer, for the industrial buyer places higher emphasis on
product quality and availability than price. He is therefore less prone to price elasticity of demand
than the consumer goods buyers. He is not likely to change the quality he buys as a result of
changes in the price as would his consumer counter part. Discount in freight payment and other
price oriented variable are the main areas where industrial buyers solicit price cuts rather than
outright bargaining for on-the-spot cut in price that is common with consumer goods buyers.
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Promotion
As mentioned earlier, industrial goods are mostly promoted and marketed through personal selling
while advertising and sales promotion are much more rampant with consumer products. The
major relevance of advertising to industrial marketing is in creating product awareness while the
onus is on personal selling. On the other hand, personal selling of consumer goods is most
rampant with consumer durables. Generally, the market for industrial goods is somewhat fixed,
easily identifiable, concentrated in an area and less susceptible to promotional activities than the
consumer goods.
Place: (Distribution)
There is an appreciable difference in the mode of distribution of both industrial and consumer
goods. While the former are mostly marketed or sold directly to the user by the manufacturers, the
distribution of consumer goods takes the conventional channel; that, is from the manufacturer to
the wholesaler, to the retailer and then to the final user, consumer.
There are some factors that influence hoe effectively a company’s sales force would be able to
discharge its duties and responsibilities. These factors among others include the following:
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2.8 PERSONAL SELLING OF INDUSTRIAL PRODUCTS IN NIGERIA TODAY
The economic realities of the present day in Nigeria are gradually moving the country away from a
seller’s market to a buyer’s market. This is because with the Nigerian economy which has been
subjected to a severe battering, a rational buyer would seek the best bargain in order to get the
best value for his scare resources- money! Industrial products which can be safely regarded as the
mother of all other products attract an appreciable attention in the marketing scene in Nigeria
today. Attesting to the place of personal selling in the present setting of marketing activities in
Nigeria, Onauga opined that many more goods will unfortunately; have to chase relatively few
industrial products have accepted the challenges posed by the present economy. They have been
searing for the best ways to turn these challenges to opportunities, hence, so many approaches
have been evolved by so many industrial manufacturers will the centre of attention being
The CAP in order to meet these challenges and intensive competition has developed a highly
skilled and well e quipped sale force for all its industrial products all over the country.
The regional sales manager of Berger paints, Ikeja, disclosed one efficacious strategy adopted by
his company is the caliber of its sales force. He explained that since the company appreciated the
highly technical skill required to sell industrial paint, it has spread it net far and wide in its bid to
bring skilled personnel to its sales force. The result of these efforts, he concluded is sound personal
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REFERENCE
Aderika, E.O., et al (1996). “Principle and Practice of Marketing Enugu, Jomoe Enterprises
Nigeria.
Cole, A.A. (1999). “Basic Principal of Marketing” Lagos, Beyus Consults, marketing Consultation
and analysis.
Lawal A.A. et al (2001). Entrepreneurship Development in Small Scale Business, Lagos, Ade Ola
Printing Press Limited.
Martins, L.B. (1996). Marketing Concepts and Strategy: London Macmillan Press Publishers Ltd.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1: INTRODUCTION
The objective of this chapter is to examine the various methods employed in both the collection
and analysis of the relevant data in the course of this research study. In order to achieve this
objective, the following areas were emphasized; the research design, data collection source, the
For this research work, the exploratory design was used which involves the acquisition of
fundamental information that would uncover the true nature of the problem under investigation.
Both the primary and secondary types of exploratory research methods were used. Casual
research was also used which deals mainly with establishing the effect which one variable have
over the other. Therefore those factors that affect the effectiveness of the sale force performances
Two basic sources of data collection were used in the course of this research work. These are
Primary Sources: These involve gathering fresh information that will help in solving problem at
hand. Series of discussions and interviews with people were employed in this research work. Such
people include sales and marketing officers, sales representatives and customers of CAP, Bergers
Paints and International paint. Questionnaires were also administered to gathered information.
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Secondary Sources: This is where information were gathered from existing sources such as
The population of a research work refers to the total number of people and item about which
research is carried out and from where conclusion is drawn. In a situation where the population is
very large, for instance running into hundreds, a sample of the total population which can be
reliably regarded as a true representation of the population will be used to gather the required
information. However, where the population is not large enough, say hundred and below, then the
whole population can be used. This is called complete enumerate. For the purpose of this research
work, complete enumeration was used in gathering information from members of sale force since
their population is not all that large, while a sample size of ten (10) of the customer was interview.
questionnaire designed for this work took the following format. A letter of introduction explaining
the purposes of this research work and soliciting the assistance of respondents occupied the front
page of the questionnaire. Then followed by questions on respondents’ demography, such as their
names (optional), years of experience, educational background, sex, age, marital status. This is
The last of the questions (9-24) probed into the respondents’ characteristics, level of knowledge,
attitudes and so on that are related to the topic. In all, there were 24 questions phrased to help
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3.6 QUESTIONNAIRE ADMINISTRATION
Administering the questions was not an easy task. At a time, it would appear as if there has been
an agreement among manufacturers of industrial paints not to offer information either in form of
non-cooperative attitudes of the respondents. Nevertheless, success was recorded in serving the
questionnaires meant for the sales force members of CAP Plc through the assistance of marketing
officers and that of Berger paints were administered and collected through the assistance of the
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REFERENCE
Shokan O.O. (1993). Research Methodology and Seminar all discipline, Shokan
Lagos. Investment Company Ltd.
Imoisili, C .I. (1996), Social Research Methods for Nigerian Students, Institute of
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CHAPTER FOUR
4.1: INTRODUCTION
For any research study involving the use of questionnaires, personal interviews and hypotheses,
there is always the need to analyse the raw data collected, the result of the interviews as well as
testing the hypotheses developed for the study and interpret the findings. These are the scope of
this chapter.
In all 25 questionnaires were administered on the members of the staff of the company out of the
The following are the analysis of the data obtained through these questionnaires. Analysis of the
questions on demography of the respondents (questions 1-7) was omitted since they have little or
Table 1 (question 8) Personal Selling is the most appropriate for selling insuranceproducts.
From the above table, it can be seen that 15 of the 23 respondents, representing about 65.21%
strongly agreed that personal selling is the most appropriate for selling industrial products; 26.09%
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Responses No. of Respondent % of Response
Strongly Agree 2 8.7
Agree 6 26.1
Indifferent 8 34.8
Disagree 6 26.1
Strongly Disagree 1 04.3
Total 23 100
Source: Field survey, June 2010
Table two above shows that 34.8% of the respondents believed that salesmen are born and not
made. While 30.4% of the respondents believed that salesmen are made, 34.8 are indifferent to
Table 3: (Question 10): Sound recruitment and selection procedure aid effective personal selling.
Table 3 above shows that 13 respondents about 56.5% strongly agree that sound recruitment and
selection procedure aid effective personal selling; 7, i.e. 30.4% agreed; 2 i.e. 8.7% disagreed with
the notion.
Table 4: (Question 11) How adequate are the recruitment and selection procedure in this company?
The above table shows that 9 respondents, representing about 39.2% agreed that the recruitment
and selection procedure of their companies are adequate; 7 respondents felt that it is very
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Table 5: (Question 12) Do you agree that sales training programme improves the efficiency of the sales force?
From the above table, 17 respondents i.e. 73.9% strongly agree that sales training programme
improves the efficiency of the sales force; 21.7% agreed and 4.4% neither agreed nor disagreed.
Table 6: (Question 13): Adequate incentives as motivational tools improve the effectiveness of
personal selling.
The table above indicates that 15 respondents, about 65.2% strongly agreed that adequate
incentives as motivational tool improve the effectiveness of personal selling; 26.1% of the
respondents agreed with the same notion, while 8.7% neither agreed nor disagreed.
Table 7 (Question 14): Adequate supervision of sales force improves the efficiency of personal selling.
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From the table above, 43.5% of the respondents strongly agreed that adequate supervision of sale
force improves the efficiency of personal selling; 26.1% agreed; 13% disagreed while 17.4 were
indifferent.
The hypotheses that: Personal selling is the most appropriate channel for selling insurace
products’.
To test this hypothesis, the following null and alternative hypotheses are used.
HO: Personal selling is the most appropriate channel for selling industrial products’.
Hi: Personal selling is not appropriate channel for selling industrial products’.
Respondents X X2
1 4 16
2 5 25
3 5 25
4 4 16
5 5 25
6 5 25
7 3 9
8 5 25
9 5 25
10 5 25
11 5 25
12 5 25
13 3 9
14 4 16
15 5 25
16 5 25
17 4 16
18 5 25
19 5 25
20 4 16
22
21 4 16
22 5 25
23 5 25
105 489
Ex = 105 = 4. 565
n = 23
= 489-23 (20.839) 22
S = 0.66.39
U = X + tn – S.n
= 4.565 + (2.074)(0.6639)23
to get the value of U, we choose any value within 4.852 and 4.278,
That is U= 4.50
Using t = [ x-u] n
s
t = [ 4.565-4.50] 23
0.6639
23
t1 = 0.065 = 0.479
= 0.138.
23
Since the computed value t1 is less than the table value of t, i.e. t1 = 0.471,
U = 2.074. we therefore accept the null hypothesis that: Personal Selling is the most appropriate
for selling industrial products at 95% confidence level while the alternative hypothesis is rejected.
Hypothesis that: Effective recruitment, Selection and training of the sales force enhance effective
personal selling.
To test this hypothesis, the following null and alternative hypothesis were used.
HO: Effective recruitment, Selection and training of the sales force enhance effective
personal selling.
Hi: Effective recruitment, Selection and training of the sales force do not enhance effective
personal selling.
Respondents X X2
1 16 256
2 16 256
3 17 289
4 18 324
5 17 289
6 17 289
7 15 225
8 14 196
9 17 289
10 16 256
11 18 324
12 20 400
13 19 361
14 20 400
15 20 400
16 17 289
17 18 324
24
18 20 400
19 16 256
20 14 196
21 17 289
22 18 324
23 15 225
395 6857
Ex = 105
n = 23 = 4. 565
S = Ex2 - n(x)2
n-1
= 6857-6780.6
22
= 3.473
= 1.864
23
To get the value of U, we choose any value within 17.98 and 16.47, Therefore 17 is chosen
Using t = [ x-u]
s
n
t = 17.17-17.00
1.864
23
25
t = 0.17
1.864
4.796 = 0.17
= 0.389 = 0.437
t1 = 0.437
tt = 2.074
Since the computed value of t is less than the table value of t, i.e. t1 = 0.45, tt=2.0.74, we
therefore accept the null hypothesis that: Effective recruitment, Selection and training of the sales
force enhance effective personal selling With 95% confidence level while the alternative hypothesis
is rejected.
Discussion of findings is based on the result of the hypothesis tested and the responses of the
CHAPTER FIVE
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SUMMARY, RECOMMENDATION AND CONCLUSION
5.1 INTRODUCTION
This chapter gives the summary, conclusion, recommendations and possible suggestions for future
research.
5.2 SUMMARY
Our belief I the place of personal selling as a prominent feature in marketing generally and of
industrial product in particular engineered the choice of the topic of this research work. The
study set out to specifically highlight how this concept (personal selling) is being handled by
marketers of industrial products. It also tries to find out level of successes and failures of
personal selling, those factors contributing to them and to come up with remedies in any
lapses.
Data were collected from primary sources which included personal interviews with
knowledgeable people: both sales force members and customers, questionnaire administration
and observation of sales force performance on the field, a well as secondary sources, mainly
related literature. These data were analysed and statistically tested to either accept or reject
5.3 RECOMMENDATIONS
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The following recommendations are made which are based on the findings from the study having
1. that personal selling has been generally accepted as the most appropriate means of selling
variables, especially advertising and trade exhibitions should no be neglected. These will
essentially help to creating awareness for the product thereby preparing ground for
2. On the issue of the procedure for recruiting and selecting the individual product sales force,
although both the questionnaire analysis and the hypotheses tested indicated that the
procedures are appropriate, we would still recommend that industrial product makers focus
their recruitment exercise more on those candidates with science subjects background in
addition to degrees, diplomas and certificates in management course. This will facilitate
3. Concerning training, we would recommend that each company should establish their
training school. This will facilitate imbibing the specific knowledge which is unique to their
4. As regards industrial products’ price, in line with cost and price reduction measures,
industrial manufacturers should embark on local sourcing for their raw materials to reduce,
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Personal Selling has been widely accepted ns the most appropriate for selling industrial products
compared with other promotional mix variable like advertising, sale promotion, trade exhibition
and publicity. The respondents study shows that this fact also been acknowledge by
Some of the reasons advanced for this enviable position of personal selling are that the industrial
products, in view of their highly technical and specialized nature and characteristics, require a lot
of personal contact to market them to allow for reassurance of the consumers’ confidence in the
product. This is enhanced by offering practical demonstration of some of these products where
necessary, deliver them where required, offer after sales services such as maintenance and repairs,
training the consumer firm’s personnel on the operation of the product, obtain feedback from
As a result of these onerous tasks that the sales force handling industrial products are expected to
perform, the processes of recruiting, selecting and training them are more complex than is the
case with their consumer counterparts. Also needing special emphasis are the methods of
remunerating and motivating the sales force which have direct influence on their moral and
consequently their performances. Therefore the management of the sales forces of the company,
especially one dealing with industrial products must be alive to these crucial factors collectively for
BIBLIOGRAPHY
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Aderika, E.O., et al (1996). “Principle and Practice of Marketing Enugu, Jomoe
Boniface G.N. (1991). Educational Research Basic Issues and Methodogy Business. Lagos,
Ade Ola Printing Press Limited.
Cole, A.A. (1999). Basic Principal of Marketing. Lagos, Beyus Consults, Enterprises Nigeria.
Imoisili, C .I. (1996). Social Research Methods for Nigerian Students, Institute of Personnel
Managemnt of Nigeria.
OJIkutu, R.K. (1992). Statistics, Problems and Solution, Lagos. Personnel Management of
Shokan O.O. (1993). Research Methodology and Seminar all discipline, Shokan
APPENDIX 1
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QUESTIONNAIRE
Dear Respondents,
We are final year students of the Department of Business Studies, Lagos State Polytechnic, Isolo campus.
Currently we are conducting a research on: “Personal selling as a panacea to marketing of industrial
products” This questionnaire is therefore distributed to gather information most especially your experience
Kindly assist by completing this questionnaire, be rest assured that whatever information given shall be
Yours faithfully.
Tyuiyh
Yutred
Mkjhgpo
jhgf
Appendix 2
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SECTION A
PERSONAL DATA
SECTION B.
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1. Personal Selling is the most appropriate for selling insurancel products.
4. Do you agree that sales training programme improves the efficiency of the sales force?
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Disagreed Strongly Disagreed
8. Advertising do mislead people to buy what they do not plan to buy unlike personal selling
34