1.0 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 segmentations the process of dividing a market into the homogenous 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 heterogonous 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.
i. Has the market segmentation method increased sales volume of the company?
ii. 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.
1.8 LIMITATIONS OF STUDY
The limitations of this study are as follows:
– The researcher did face some problems, which includes the collection of data especially the so called classified information which is highly needed for the research project.
– The time log for carryout the study is very short, out of this time the research has to attend to many other academic works apart from carryout the research work.
– The researcher also lacks enough materials and he is financially handicapped.
1.10 DEFINITIONS OF TERMS
In the presentation of this project work, there are some terminologies that are peculiar to the topic under discussion which may not be understand by some readers of this projects, such as marketing, market, consumers etc. these terms were defined below.
Marketing: British institute of marketing (BIM) defines marketing as the management process responsible for identifying anticipating and satisfying customers requirement profitably.
Market: A market is a group of individual or organization who may want a good or service being offered for sale, they must have purchasing power and willingness to spend their money.
Ultimate Consumer: They are those that buy and / or use product or services for their own personal or household use.
Market Targeting: This is when an organization directs its marketing plan towards the market segment or a group of buyers.
Sales Promotion: it is a short time incentive, which is designed to supplement and coordinate personal selling and advertising efforts.
Market Shares: This is the part of the whole mass market that is loyal to a specific brand of a product or the total number of consumers that a company successfully was in the mass market.
Market Aggregation: This is when a company especially production oriented company treats its entire market as a single homogenous unit whose art are alike in all respects.