ABSTRACT
Customer management (CRM) is a comprehensive business model for increasing revenues and profits by focusing on customers.
More specifically, CRM refers to any or initiative designed to help firms optimize interactions with customers, suppliers, or prospects via one or more touchpoints – such as a call center, salesperson, distributor, store, branch office, web, or e-mail – for the purpose of acquiring, retaining, or cross-selling customers.
However, many pharmaceutical firms in Nigeria are struggling with their CRM initiatives probably because they have bought the software, but do not have the , structure, leadership, or internal technical expertise to make the initiative successfully.
Therefore, this study was undertaken to investigate the impact of salesforce motivation on the effective implementation of a CRM strategy in the pharmaceutical and industry in Nigeria.
The aim was to find the right elements in the motivation mix for designing an integrated compensation and incentive program that can be used by managers to influence and direct a salesperson’s behavior for the effective implementation of a company’s strategic CRM plan.
Both primary and secondary sources of data were used. The questionnaire was the principal source of the primary data, while the interview was complimentary. Taro Yamane formula was used to determine the sample size of 244 out of the population of 624.
Data from the study were analyzed using descriptive and inferential approaches. Simple descriptive tables, charts, and tables of means were employed as descriptive tools. For hypothesis testing, t-test and correlation analysis were used to judge the significance of the obtained result.
TABLE OF CONTENTS
Title page … … … … … … … … … i
Certificate … … … … … … … … … ii
Approval … … … … … … … … … iii
Dedication … … … … … … … … … iv
Acknowledgements … … … … … … … … v
Abstract … … … … … … … … … vi
Table of Contents … … … … … … … … viii
List of Tables … … … … … … … … … xi
List of Figures … … … … … … … … xiii
List of Appendices … … … … … … … … xv
List of Abbreviation … … … … … … … … xvi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study … … … … … … … 1
1.2 Statement of the Problem … … … … … … … 4
1.3 Objectives of the Study … … … … … … … 5
1.4 Research Questions … … … … … … … 5
1.5 Research Hypotheses … … … … … … … 6
1.6 Limitations of the Study … … … … … … … 6
1.7 Significance of the Study… … … … … … … 7
1.8 Conceptual and Operational Definition of Terms … … … 9
References … … … … … … … … 15
CHAPTER TWO: REVIEW OF RELATED LITERATURE AND THEORETICAL FRAMEWORK
2.1 The shift to Relationship Marketing … … … … … 18
2.2 Integrating Customer Focus Across the Firm… … … … 31
2.3 Customer Relationship Management (CRM) … … … … 41
2.4 Sales in the Pharmaceutical Industry … … … … 64
2.5 The Nature of Salesforce Motivation … … … … 74
2.6 Model of the Determinants of a Salesperson’s Performance … … 105
2.7 Expectancy Theory … … … … … … … 106
2.8 Need Theories … … … … … … … … 109
2.9 Equity Theory … … … … … … … … 114
2.10 Goal-Setting Theory … … … … … … … 115
2.11 Learning Theories … … … … … … … 117
2.12 Human Relation Theories … … … … … … 123
2.13 Pay and Motivation … … … … … … … 124
2.14 Theoretical Framework … … … … … … 125
2.15 Summary and Synthesis of the Review … … … … … 126
References … … … … … … … … 129
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction … … … … … … … … 146
3.2 Scope of the Study … … … … … … … 146
3.3 Research Design … … … … … … … 147
3.4 Method of Data Collection … … … … … … 147
3.5 Sampling Procedure … … … … … … … 148
3.6 Questionnaire Administration … … … … … … 150
3.7 Method of Data Presentation and Analysis … … … … 151
3.8 Analytical Framework … … … … … … … 151
References … … … … … … … … 153
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction … … … … … … … … 154
4.2 Classification of Data … … … … … … … 154
4.3 Evidence of CRM Process in the Industry … … … … 158
4.4 Extent of CRM Implementation in the Industry … … … 161
4.5 Evidence of Salesforce Motivation in the Industry … … … 163
4.6 Extent of Motivational Tool Usage in the Industry … … … 166
4.7 Relationship Between Salesforce Motivation and CRM Implementation in the Industry … … 169
4.8 Extent of the Relationship between Salesforce Motivation and CRM Implementation in the Industry …173
4.9 Principal Components (PC) Extraction and Sufficiently … … 178
4.10 Regression Factor Scores … … … … … … 183
4.11 Linear Association of Observation Variables and PCs … … 190
4.12 Summary and Synthesis of Analysis and Interpretation … … 192
References … … … … … … … … 193
CHAPTER FIVE: DISCUSSION OF RESEARCH FINDINGS AND MODEL
5.1 Introduction … … … … … … … … 195
5.2 Model for Effective CRM Implementation … … … … 195
5.3 Organizational Goals for a CRM Strategy … … … … 197
5.4 Groundwork for a CRM Strategy … … … … … 198
5.5 Salesforce Motivation for a CRM Strategy … … … … 200
5.6 Salesforce Efforts for a CRM Strategy … … … … 206
5.7 Salesforce Performance for a CRM Strategy … … … … 224
5.8 Salesforce Reward for a CRM Strategy … … … … 227
5.9 Salesforce Satisfaction for a CRM Strategy … … … … 238
5.10 Summary and Synthesis of Discussion … … … … 240
References … … … … … … … … 242
CHAPTER SIX: SUMMARY, CONCLUSION AND RECOMMENDATIONS
6.1 Introduction … … … … … … … … 243
6.2 Summary of Findings … … … … … … … 243
6.3 Conclusion … … … … … … … … 246
6.4 Recommendations … … … … … … … 249
6.5 Further Research Needs … … … … … … 253
Bibliography … … … … … … … … 254
Appendix … … … … … … … … 274
INTRODUCTION
The rising cost of maintaining a salesforce has been a concern for most sales managers in today’s increasingly competitive markets.
In many pharmaceutical firms, direct selling costs account for almost half of all marketing expenses. Often, the cost of maintaining the salesforce is greater than advertising and promotion costs and exceeds 14 percent of a typical firm’s revenues.
The median cost of a business-to-business call is about N2,500 in Nigeria. Therefore, sales managers have the crucial responsibility to make sure that their salesforces contribute to the company’s objectives effectively and efficiently.
The current economic environment in Nigeria has prompted significant cost savings especially in the pharmaceutical and health care industry and has led to demands for more accountability.
In turn, there have been calls for evaluating the contribution of the marketing function to the firm. Within the marketing department, sales managers are becoming increasingly concerned about justifying their investments and are facing stiff competition against each other in competing for scarce resources, such as additional salespeople.
Yet, an area that has received relatively little attention, especially in the pharmaceutical and health care industry in Nigeria, is the assessment of the impact of a salesforce motivation on effective implementation of a CRM strategy (Moynihan, 2008: 1163; Maduka, 2006: 27- 35).
BIBLIOGRAPHY
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StudentsandScholarship Team.
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