INFLUENCE OF MARKET SEGMENTATION ON SALES PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES TOWARDS NATIONAL DEVELOPMENT

Abstract

In the dynamic landscape of contemporary business environments, understanding the influence of market segmentation on the sales performance of SMEs is crucial for fostering sustainable economic development. This study was conducted to examine the influence of market segmentation on sales performance of small and medium scale enterprises towards national development in the three senatorial districts (West, Central, East) of Kogi State. Two purposes, two research questions and two hypotheses were formulated for the study. This study used a descriptive survey design. The study’s population consists of 41,554 of registered small and medium scale enterprises and their employees in the three senatorial districts (West, Central, East) of Kogi State and the sample size was 381 SMEs and their employees selected using proportional stratified random sampling technique. The instrument for the study was a questionnaire titled “Influence of Market Segmentation on Sales Performance of Small and Medium Scale Enterprises Towards National Development (IMSSPSMSETND)â€. The data collected were analyzed using mean and standard deviation to answer the research questions and the hypotheses was tested using analysis of variance (ANOVA) and independent sample T-Test at 0.05 significance level. The findings revealed that there was no significant difference on behaviourial market segmentation’s influence on sales performance of small and medium scale enterprises towards national development. Furthermore, the finding also revealed that there was no significant difference on demographic market segmentation’s influence on sales performance of small and medium scale enterprises towards national development. The study concluded that market segmentation influence sales performance of small and medium scale enterprises. By adopting a comprehensive approach that incorporates behavioural, demographic market segmentation strategies, SMEs can better understand and cater to the diverse needs and preferences of their target customer segments. This nuanced understanding allows for more effective product positioning, tailored marketing strategies, and enhanced customer satisfaction. With respect to the findings recommendations were put forward, among which was that behavioural market segmentation enables SMEs to identify and respond to consumer behaviours, preferences, and purchasing patterns, allowing for the development of targeted marketing campaigns that resonate with specific customer groups, on the other hand, demographic market segmentation helps SMEs to tailor their products and services to the unique characteristics of different age groups, genders, income levels, and other demographic factors, ensuring that offerings align with the specific needs of diverse customer segments.

Keywords: market segmentation, sales performance, small and medium scale enterprises, national development.