PERSONAL SELLING AND PROFITABILITY: A STUDY OF JUICE MANUFACTURING COMPANIES IN LAGOS STATE, NIGERIA

Abstract

Profitability is a critical measure of a company's success, influenced by various internal and external factors. In today's competitive business landscape, businesses constantly strive to differentiate themselves and gain market share. The effectiveness of a company's marketing strategies can significantly impact its ability to attract and retain customers, ultimately affecting its profitability. Therefore, there is a need to investigate how personal selling practices can positively influence the profitability of selected juice manufacturing companies in Lagos State, Nigeria. By focusing on personalized sales techniques and effective customer relationship management, these companies can improve their sales performance, strengthen customer loyalty, and ultimately enhance their profitability in the highly competitive market. The study employed a survey research design to investigate the effect of personal selling on the profitability of selected juice manufacturing companies in Lagos State, Nigeria. The population consisted of 2,769 employees from these companies. Using the Research Advisor's table, a sample size of 433 employees was determined. Data were collected through a structured and validated questionnaire, with a response rate of 88.2%. The reliability coefficients, measured by Cronbach's alpha, ranged from 0.791 to 0.98, indicating high internal consistency. Data analysis involved descriptive and inferential statistics. The study findings are stated thus, Personal selling have a significant effect on profitability (R = 0.525, R² = 0.276; t =12.030, β =0.458>0.05), of juice manufacturing companies in Lagos State, Nigeria. The study recommended companies to continuously monitor and evaluate the effectiveness of their marketing strategies which involves tracking key performance indicators such as sales growth, market share, competitive advantage and profitability to assess the impact of advertising, sales promotion, personal selling, direct marketing, and overall marketing communication efforts. By regularly reviewing and adjusting their marketing strategies based on performance insights, companies can adapt to changing market dynamics and maintain a competitive edge in the industry.