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.

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