EFFECT OF MARKET PENETRATION STRATEGIES ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN BENUE STATE, NIGERIA.

EVIDENCE FROM BENUE STATE, NIGERIA

Abstract

This study empirically examined the effect of market penetration strategies on sales performance of SMEs in Benue State. The study specifically examined the effect of market segmentation on the performance of SMEs in the study area. The study which was anchored on the  The Survival-Based Theory of Miesing & Preble, (1985) examined a sample of 361 SMEs owners/managers of SMEs in the study area were selected from a population of 3740 using Taro Yamen’s formula for sample size determination. The study’s hypothesis was tested using multiple regression statistical tool. Result of the analysis revealed that market penetration strategies have positive effect on performance of SMEs in Benue State with market segmentation having β=0.64, t=43.92, p<0.0005 and S.E=0.030. Based on findings as presented above, the concluded that market penetration strategy has significant effect on the performance of SMEs in Benue State.  Based on the above findings, the study recommended (among others) that owners and managers of SMEs should always employ relevant and appropriate penetrating strategies to enhance sales performance in their organizations.