MARKETING SEGMENTATION AS A TOOL FOR ORGANIZATION’S SURVIVAL AND GROWTH IN NIGERIA
ABSTRACTThis research work is to examine market segmentation as a tool for organization’s survival and growth in Nigeria using (Nigerian Brewery PLCPlc as a case study). The objective of this study is to analyze market segmentation as a tool by organizations in Nigeria. Businesses are set up with funds to achieve certain objective. The fundamental objective is not just to survive, but also to provide adequate return on investment to shareholders. To achieve this obligation, the product or service of the organization must be successful in the market and this could be possible only through effective market segmentation. The data used in this research was collected from primary and secondary and the method used in analyzing the data was simple percentage in a tabular form. Chi-square was used in testing the hypothesis. The researcher find out that focusing on segment of the market enhance profitability and customer’s satisfaction. It was recommended that, when distinct brand of products are produced, effort should be made to position a brand well and also make sure that the brand reach the targeted customers.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the study - - - -
1.2 Statement of problems - - - -
1.3 Objectives of the study - - - -
1.4 Statement of hypothesis - - - -
1.5 Significance of the study - - -
1.6 Scope and limitations of the study - - -
1.7 Definition of key terms - - - - -
1.8 Organization of work - - - - -
1.9 End of chapter references - - -
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction - - - - - - -
2.2 An overview of Nigerian Brewery PLCPlcObjana
2.3 The Concept of Market Segmentation - -
2.4 Steps in Market segmentation - -
2.5 Bases for Market Segmentation -
2.6 Bases for Segmentation Consumer Market -
2.7 Bases for Segmentation Industrial Market - -
2.8 Conditions for effective Segmentation - -
2.9 More Sophisticated Techniques that may help in
Segmenting Market - - - - -
2.10 Alternative segmentation Strategies - - -
2.11 Product Management/Strategy - - -
2.12 Merits of Market Segmentation - - - -
2.13 Demerits of Market Segmentation - -
2.14 End of Chapter reference - - - -
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction - - - - - -
3.2 Research Design - - - - -
3.3 Area of the study - - - - -
3.4 Sources and Method of Data Collection -
3.5 Population of the study - - - -
3.6 Sample Size and Sampling Techniques -
3.7 Validation of the instrument - - -
3.8 Method of Data Analysis - - -
CHAPTER FOUR: DATA PRESNETATION AND ANALYSIS
4.1 Introduction - - - - - -
4.2 Data Presentation and Analysis - -
4.3 Test of Hypotheses - - - - -
CHAPTER FIVE: SUMMARY, CONCLUSION
5.1 Summary of Findings - -
5.2 Summary of the Study - - - - -
5.3 Conclusion - - - -
5.4 Suggestion for Further Research - -
5.5 Recommendations - -
1.1 BACKGROUND TO THE STUDY
Marketing is increasingly being recognized as an organization belt in public or private and it Marketing is the cornerstone of most successful companies not only in developing countries but also in both developing and underdeveloped countries such as ours.
To survive, grow and flourish, business must design market segmentation to deal with environmental forces such as changes in population, income level, tastes and fashion, sophistication in technological competition, etc. Hence, one of these tools in market segmentation is a customer oriented tool or philosophy that identifies the customer’s needs within a sub-market (segment) and satisfied them in an efficient and profitable manner.
The very fact that buyers differ in their tastes and preferences are too numerous and widely spread or scattered makes market segmentation and almost inevitable tools that must be employed as rightly observed by an advertisement agency, there will be no market for products that everybody likes little, but only for product that everybody likes a lot of mostly, most of these customers will be unevenly spread in several locations and this is the logic behind market segmentation.
The statement above clearly indicates then needs to identify the various needs and preference of the customers, classifying them into groups and then tailor the product to suit each group. This is what market segmentation does. Market segmentation is also in conformity with the philosophy of market concept which is employed by most firms today as their guiding philosophy. It is a philosophy which holds that the key to achieving organizational goals consist of the organization in determining the needs and wants of its target market and delivering the desired needs and wants more effectively and efficiently than the competitors (Philip Kotler, 1980).
The heterogeneity of the market place makes it infeasible to implement the marketing concepts using a single market impact aimed at all buyers instead, market segmentation occurs. That is, distinctive marketing strategies aimed at one or more targets are developed.
1.2 STATEMENT OF THE PROBLEMS
Firms are faced with difficulty of identifying and selecting particular market target and satisfying them by blending the market mix elements. Thus, market segmentation recognizes that every market is made up of distinguishable segment consisting of buyers with different needs.
The tasks of clearly understanding consumer needs and wants, identifying various homogenous customers characteristic according to an outlined dimension in order to group them together adequately and to effectively develop market mix to match this characteristic and buying requirement are problems. Constitute a problem to the companies.
Market firms find it difficult to apply market segmentation strategies used in evolution of marketing programs, there by segmenting markets into sub-set with the satisfying customer groups and equally increase organization growth in Nigeria.
Some firms find it difficult to apply market segmentation strategies due to their inclination of the strategy as an expensive and time consuming exercise because of inadequate information on its importance to customer satisfaction. Therefore it becomes highly imperative to evaluate the impact of market segmentation in order to enhance organization growth in Nigeria.\
1.3 OBJECTIVES OF THE STUDY
This study aimed at evaluating and exploring the impact of market segmentation on organization growth in Nigeria; the following are the other objectives of this study.
a. To determine the extent at which the application of market segmentation as a tool by organizations assist them in achieving their objectives.
b. To analyze marketing segmentation and to identify its tools for organization’s survival and growth in Nigeria.
c. To determine the degree to which Nigeria Brewery plc. 9th mile corner Enugu state practice market segmentation.
d. To examine the dimensions and basic of segmentation market and their relationship to sale increase in order to enhances organization growth in Nigeria.
e. To provide recommendations to firms on how to adopt market segmentation.
1.4 RESEARCH QUESTIONS
For the purpose of this research work the following questions were formulated:
a. Towhat extent has the application of market segmentation as a tool by organizations assist them in achieving their objectives?
b. To what extend has marketing segmentation and its tools help in organization’s survival and growth in Nigeria?
c. To what degree do Nigeria Brewery plc. 9th mile corner Enugu state practice market segmentation?
d. What dimensions and basic of segmenting market and their relationship to sale increase do you adopt?
1.5 SIGNIFICANCE OF THE STUDY
This research work apart from being an essential requirement for the partial fulfillment of national diploma, it will be an added value and benefit to the researcher, other individuals and groups.
This research work will be of great benefit to Nigeria Brewery plc. 9th mile Corner Enugu State as the findings and recommendations will help improve their marketing activities.
This research work will also benefit student In other institutions in related course. It will serve as secondary sources of data to other researchers wishing to conduct a research on related topic.
1.6 SCOPE OF THE STUDY
The scope of this study covers “The Impact of Market Segmentation on Organization Growth in Nigerian. With special reference to Nigerian brewery Enugu.
1.7 LIMITATION OF THE STUDY
In carrying out this research work, the researcher is faced with a lot of challenge’s ranging from time, finances and lack of availability oo information’s needed for this research work. However the researcher was able to use other tactical approach to meet the standard of the study.
1.8 DEFINITION OF KEY TERMS
Market: There is no outstanding definition of the term market. A market can be defined as set of all actual and potential buyers of a product. Market can also be defined as a people with needs and wants to satisfy money to spend and willingness to spend it.
Segmentation: Segmentation is a process of dividing a whole unit into sub units or parts with similar characteristics. Market segmentation can be defined as a market strategy in which a large heterogeneous market is broken down into small, more homogenous segment as a separate marketing program in developed for each segment. Market segmentation is the act of dividing a market into a distinct and meaningful group of buyers who might separate products and or marketing mix.
Products: The term product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want.
Strategy: Strategy is the determination of the long term goals and objectives of an enterprise and the adoption of action and allocation of resources necessary for the attainment of these goals and objectives.
Target market: Target market can be regarded as the act of selecting one or more of the market segments and developing a separate marketing mix strategy for each segment.
Positioning: Positioning the act of designing the company’s products and image so that they occupy a meaningful and distinct competitive position in the target customer’s mind.