CHAPTER ONE
1 Background To The Study
Small scale businesses are those
businesses which are independently owned and operated requiring limited
capital with few employee and non-sophisticated technology and which is
not dominant in its field of operation. Small businesses are small in
operations. Types of small business include those engaged in trade and
commercial activities, services, and small scale manufacturing
.Examples include service or retail operations such as delicatessens,
hairdressers or convenience stores, small grocery stores, bakeries
tradespeople (e.g., carpenters, electricians), very small-scale
manufacturing, and Internet-related businesses. Small business can be
started with very minimal capital and without any formality .many small
business are operated as family business and can be combined with
regular employment. Personal selling is an aspect of salesmanship, which
involves person to person interaction between a seller and the buyer to
effect exchange of facts for making buying decision.. The salesperson
has to communicate to the buyer by persuading and creating awareness for
the product to be desired. The product so advertised has all the
potential to satisfy the need of the customer more than the competing
brand in the market . personal selling has the advantage of
communicating personally with potential customer about the unique
feature of the product which provide the customer the option to to
inspect the product before buying to meet his expectation for the
product..It is through personal selling therefore that this products
and services are communicate and sold to the customers at an agreed
price and terms of sales. . The product so advertised has all the
potential to satisfy the need of the prospect more than competitive
product in the market .This is because, personal selling is a
face-to-face communication, which has the potential to convince the
buyer and demonstrate the workability of the product in terms of its
quality and features..
Personal selling enables marketers to
make their presentation to fit the needs, wants, motives and behavior of
individual customer. Personal selling is an effective tool used by
organizations to receive the desired response from its customers and
prospects. Effective personal selling includes effective communication,
education of customers on product usage, problem solving stimulating and
motivating and ultimately soliciting for favorable response. Most SMES
must adopt personal selling as its number one promotional tool.
due to its traditional nature and cost
effectiveness. Personal selling convinces the potential customer of the
unique features of the product which differentiate it from competing
brands in the market with the aim of creating customer purchase for the
product. It involves a person to person interaction in the process
communicating the unique features of the product or service. Håkan
Håkansson & IMP Group. (1982).The research therefore seeks to
investigate Medium scale enterprises and salesmanship behavioral
characteristics influence on business performance.
1.2 Statement of the Problem
The management and operations of small
business is confronted with some challenges which constitute the
limitations hindering the growth of small business in Nigeria. Small
business can be started with very minimal capital and without any
formality .many small business are operated as family business and can
be combined with regular employment. Some of that problem includes lack
of huge capital to expand or take advantage of business opportunities
.This also affect the salary of the salemen who may not be motivated to
perform ultimately. Also the lack of managerial skill also affects the
smooth and successful operation of small businesses. Lack of planning
skill often leads many small businesses into failure. Poor decision
making and improper accounting also constitute the problem confronted
by Small businesses among other things. This combined together impedes
on the performance of the salemen.The problem confronting the research
is to determine. Medium scale enterprises and salesmanship behavioral
characteristics influence on business performance.
1.3 Objectives of the Study
Medium scale enterprises and salesmanship behavioral characteristics influence on business performance.
1.4 Research Questions
What is SMES and Salesmanship?
What is the effect of salesmanship behavioral characteristic on SMES business performance?
1.5 Significance of the Study
That study shall be used to appraise
Medium scale enterprises and salesmanship behavioral characteristics
influence on business performance.
1.6 Research Hypothesis
Ho Salesmanship behavioral characteristics influence on SMES business performance.is low
Hi Salesmanship behavioral characteristics influence on SMES business performance.is high
1.7 Scope of the Study
The study focuses on the Salesmanship behavioral characteristics influence on SMES business performance.is low
1.8 Limitations of the Study
Constraint faced in the research include logistics and geographical factor
1.9 Definition of Terms
Marketing is defined the process of
facilitating exchanges through products and services. It involves
carrying out plans and implementing them from product conception to
ultimate sale of the product or service.
SALESMANSHIP DEFINED
Personal selling is an aspect of
salesmanship, which utilizes a direct face to face interaction between a
seller and the buyer to effect exchange of facts for making buying
decision.. The salesperson has to communicate to the buyer by persuading
and creating awareness for the product to be desired. The product so
advertised has all the potential to satisfy the need of the prospect
more than competitive product in the market .This is because, personal
selling present a strong face-to-face communication, which has the
potential to convince the buyer and demonstrate the workability of the
product in terms of its quality and features..
SME DEFINED
Small scale businesses are those
businesses which are independently owned and operated requiring limited
capital with few employee and non-sophisticated technology and which is
not dominant in its field of operation.