Market Segmentation as an Efficient Tool for Achieving Increased Market Share
Chapter One
Objective Of Study
Based on the background of the study, the major objectives market share.
- To determine the efficiency of market segmentation in increasing market share.
- To determine the usefulness of market segmentation to a company.
- To differentiate the different levels of market segmentation
- To find the extent to which organization adopt market segmentation.
- To make necessary recommendation and suggestions to the possible solution of the problems of market segmentation
CHAPTER TWO
LITERATURE REVIEW
It is obviously clear that the significance of any research study is to make a comprehensive survey of the applicability and workability of certain theories in the real record situation. Based on the result of these research or survey, previously held theories have to be analyzed practically and developed to suit the current need of the society and improvement made such the further. Experimentation can be carried out which consequently lead to subsequent modification of existing pattern or standard. Many students have invalable been made on market segmentation. In fact subsequent students are usually dependent upon the findings of previously conducted research.
The Concept Of Market Segmentation
The starting point for the development of marketing strategies is the assessment of marketing opportunities to serve buyers are constantly changing in our present day economy with changes in your needs and competitive operation. Therefore, the importance of market opportunities is very critical to marketing managers. The truthfulness of this concept was high listed by Assail (1986:31) when he saw that the identification of marketing opportunities is essential to the firm because it is closely linkced to growth and profitability. According to him. Marketing opportunities analysis is a formal and preferable structural attempt to identify further situation which may be exploited to the advantage of the organization.
This means that before any firm enters into any market, the firm should first of all analyze the opportunities exposed to it and make adequate preparation to secure it. Market opportunity analysis therefore, becomes a process by which a firm seeks to identify threats and opportunities in the environment as a basis for maximizing its strengths and avoiding or rectifying its weakness.
In new product introduction, the market has to study in relation to the type of people or customers that he wants to appeal to. According to Aderik, (1996:39) the firm must pay close attention in identifying and monitoring its competitors. They must anticipate their competitors if possible more and know how to react quickly and decisively.
The key lies in developing intelligence system, on the other hand, this is the same thing as studying the characteristics of the segments of the market in which a firm wishes to enter. The attempts to identify these pressing issues lead us to the concept of market segmentation.
The fact that markets are heterogeneous and customers are different gives the reason for segmenting market. The segmentation of markets provides and specializing market efforts according to the needs of customers and their sensibility to marketing stimuli.
Duncton, (1984:34) noted that the concept of market segmentation derives from the fact that while all customers are unique in their wants, there is sufficient similarity between some to produce similarity in their wants. In his own view, Rines (1981:46) said that “the theory of market segmentation has taught us that very often a company does better by devoting its efforts and creating or developing a marketing programme specifically designed to appeal to a segment of the market. Morins, (1984:379) added that “these groups of individuals will be more alike in their behaviour as customers than the population as a whole”. From the above facts, it can be inferred that market segmentation is a process of discrimination between customers to indicate relative purchasing power .while its use as a marketing tool depends upon identification of the most appropriate variable segment. Segmentation process if the result of desegregation of a population into separate groups or subgroups through the use of variety to distinctive features which must be possessed by those within the group but absent from those outside the group this is one aspect of marketing strategy.
The other strategy is to produce differentiation strategy resulting from the total market approach. But the ineffectiveness of the total market approach gives way to the idea of market segmentation. The idea is based on the fact that development resulting from demand side of the market and the firm is unwilling to appeal to the market; it then becomes a necessity for the firm to segment its market.
CHAPTER THREE
RESEARCH METHODOLOGY
introduction
This chapter described the design of study the sources of data, population, sample size determination data, population, sample size, determine instrument used for instrument used for data collection, validation and reliability of instruments.
Research design
The study employs quantitative descriptive research design to examine. The researches therefore consider survey research imploration as cannot be in fail control of the subject. The type’s research used is quasi research design.
Research settings
This is referred to the location where the researcher reached to obtain information on data to help solve the identified problem in the study, delimitations of this study helps 7up bottling company Aba to achieve their organizational goal and objectives
Sources of Data
The data for this study were generated from two main sources; Primary sources and secondary sources. The primary sources include questionnaire, interviews and observation. The secondary sources include journals, bulletins, textbooks and the internet.
Population of the study
A study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description (Prince Udoyen: 2019). In this study the study population going by the company record, 95 staff were considered relevant for the population based on the junior staff of 7up bottling company where collected from the following department in the organization.
Marketing department provided while 45 people were from purchasing department and selection of respondent was done through simple random sampling.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
introduction
In this chapter, the information obtained through questionnaires is presented in the form of frequency and contingency table as shown below. Note that not all the questions contained in the questionnaire were presented by only those that will help the researcher to analyze obtained data.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Introduction
This chapter described the summary, conclusions and recommendations, after all research has been done, regardless of the challenges that faces the organization, I am able to come to the summary, conclusion and recommendations of the research work.
Summary Of Findings
This research analyzed market segmentation as a tool of achieving increased market share using 7up bottling company Plc Aba as a references study, the researcher came out with the following findings: –
- Despite the fact that the company has the problem of importing some of its raw materials this does not cause a reduction in the sales turnover of the company, rather what causes reduction in sales is reduced production due to incessant break down of the firm production machine.
- Some the company records little or no customers return of purchased goods, its could then be deduced that reduction in sales turnover of the firm is not caused by the quality of product (drinks) produced by the company.
- It was found that the company does serve the entire through the establishment of different branches to create for the need of the different sales of the nation.
- Respondents also indicated that the company employs mainly “demographic” and geographic variables in segmenting the market and they uses the same promotional strategy and product design to appeal to all segments.
- The study indicates that the companies do not make proper use of the marketing programe to get its customers.
- They study also revealed that the consideration of different in customers characteristics in production of the Brain man behind the attainability of the firms objectives in their segmentation of the market.
- Proper market segmentation is the key to commercial success. For any firm to aspire and achieve its set objectives the firms must determined who its target markets are, what marketing mix variables to appeal to each segments. Market segmentation is a marketing concept derived from marketing philosophy.
Conclusion
From the stand point of business firm the primary purpose of market segmentation is to strengthen its market position and increase sales turnover as well as profit. A market segmentation strategy must be able to satisfy the market segments and target market appropriately. It must be accessible and must have future as well as present viability. The above is very pertinent if any company is to survive, grow and prosper in competitive soft drink industry.
One of the marketing directors discovered the most useful way of segmenting its marketing it becomes a standard for his evaluation in the future so as to attain optimum effectiveness and efficiency in their activities.
Recommendations
The researcher having gone through the process of research on market segmentation as a tool of achieving increased market share as its relates to 7up Plc Aba makes the following recommendations.
- Given the high competition existing in the soft drink industry, the company should adopt only segmentation of the products for different segments while different promotional strategy is used for all the segments. The researcher recommends that the company should appeal to different promotional strategies in order to tap fully the potential of each segment very well and satisfy the consumers in the chosen market very well.
- The company should select some segments that are potentially viable and satisfy the consumes in the chosen market segments.
- Male or female consumers in the case of the sex segmentation.
The above recommendations suggested that the companies should make their segmentation strategy effective and efficient in order to tap the five potential of the target market and satisfy the selected consumers segments very well. Although segmentation strategy is expensive to adopt or manage, it is the only marketing strategy that is based on future consumer’s satisfaction, increase sales turnover and profit.
It is believed that if these measures are adopted religiously, it will go a long way in enhancing the prospect of the firm.
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