The topic for this project was visualized by me and scrutinized, criticized and then modified within the effort of my supervisor Mrs. Olaoye. This project principally focuses on the effect of market segmentation on sales volume in a manufacturing industry with reference to Epee industries Plc Lagos. It helps an organization or government to segment their market who smaller divisions so as to service the consumers effecting, because the customer are too many with different characteristics of buying behaviour or requirements. Market can be segmented on geographic, demographic, psychographics and other behaviouristic variable. To be ultimately useful the segment should be measurable accessible and substantial. The source of data used for this research work are primary and secondary data. Primary source of data studies, the use of question was employed for collecting primary data, information were gathered from selected staff using structured and unstructured questionnaire so as information while secondary source of data include, consultation of textbooks, magazine dictionary and various books relating to market segmentation.
BACKGROUND OF THE STUDY
The effect of market segmentation on the sale volume manufacturing industry is concerned with theory and practice of dividing a market into definable groups, usually to improve marketing performance, frequently different segments of a market have individual behavioural patterns and require a different approaches for success to be achieved. And the firm because this has implication on the firm profit, which is the firm principal objective of running a firm.
Actually before anything could be said on market segmentation, the term market segmentation need to be defined.
Kolter and Arm-Strong (1996) define market segmentation as a process of dividing a market into distinct group of buyers on the basis of needs characteristics or behaviour who might require separate product or marketing mix.
This is so, because market consist of many types of customers, products, needs and the market has to determine which segments offer the best opportunity for achieving company objectives.
Leader (1995) define market segmentation the process of dividing a market into the homogeneous segment that collectively constitute the market that to being segmented. This is due to the fact that consumers may buy different goods according to their sex, ages, group, income, occupation or even geographic location. It should therefore be evident that marketing organization must attempt to develop or adopt product to satisfy specific must attempt to develop or adapt product to satisfy specific group of consumers.
Modern defines market segmentation vital issue in the study of marketing which has to within the analysis of a particular total market demand to its consentient parts, so that of buyer can be differentiated both as a marketing tool and as a basic input to market and business planning.
The customers are too numerous widely scattered and heterogeneous in their buying requirement i.e. buying behaviour. This is why the marketer has the responsibilities segment its market into smaller division, so as serve the customer effectively.
Finally marketing managers must segment their market for efficient utilization of the limited resources and to facilitate identification of the golden opportunity abounding in the market to boost the sales volume of the organization.
1.2 STATEMENT OF THE PROBLEM
The company (Unilever Nigeria Plc) has been using geographical segmentation method. Their marketing segment North, East West and Lagos. Through each segment is identified with a particular product, each one of them buys (in small proportion) products meant for other segments.
The cost of maintaining each segment differs and the returns (sales) from each market also differ.
There are a lot of questions to be asked when carrying out the process.
- Can market segmentation affect a sales volume
- How is market segmentation related to profit maximization?
- Can a manufacturing company do without market segmentation?
These and other questions will be examined with a view to providing appropriate answer.
1.3 OBJECTIVES OF THE STUDY
The main objectives of this study are:
- To enable the company to set standard sales target for each market segment.
- To enable the company top evacuate them mission and cost incurred on the each segment.
- To contribute significantly to the not-profit generated by the concerned company.
- To examine the conditions necessary before segmenting a market.
- After the completion of the study, it may equally assist the concerned company to make necessary correction where there are tactical lapses, and lastly to examine the relationship between market segmentation and sales volume in a manufacturing organization.
1.4 RESEARCH QUESTIONS
A scientific research must have research questions. The research questions give will order and direction to the research study as a whole. The research questions are regarded as a whole. The research questions are regarded as an expansion of the research problem. The followings are question drawn.
- Has the market segmentation method increased sales volume of the company?
- Has market efforts helped in stimulating more sales in the market segments?
iii. Is there any relationship between market segmentation and sales volume?
1.5 STATEMENT OF HYPOTHESIS
The hypothesis to be used as tools for this research work are the alternative hypothesis and null hypothesis are started as follows:
Ho: There is no significant relationship between market segmentation and increased in sales volume of the company.
Hi: There is significant relationship between market segmentation and increased in sales volumes of the company.
Ho: There is no significant relationship between market and profit making ability of the company.
Hi: There is significant relationship between market segmentation and profit making ability of the company.
1.6 THE SIGNIFICANT OF THE STUDY
– The significant of the study is to undergo a article examination of the impact of market segmentation or sale volume and method used in the selection of market segment with the hope of determining the contribution from each segment and to know whether the we of other marketing efforts in each segment will be profitable.
– The findings of this research work will be useful to the organization under study and other similar organization.
– It will also be helpful to future researches of same topic within and the state.
1.7 SCOPE OF THE STUDY
This research work focuses the impact of market segmentation on sales volume in manufacturing industries with more emphasis on geographical method of organization. The study will also cover the types of market, definition of segmentation method of the segmenting industrial and consumer markets etc. the research is conducted in Epee industrial Lagos.