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
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
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