TABLE OF CONTENTS
Table of Contents—————————————————–v-viii
- Background of Study—————————————-1
- Statement of the Problem ———————————-5
- Objective of the Study—————————————7
- Significance of the Study———————————–8
- Research Questions—————————————–9
- Scope of the Study——————————————-10
- Definition of Terms——————————————-11
- Meaning and Scope of Segmentation———————-14
- Bases for Segmentation and Positioning ——————17
- Criteria for Segmentation————————————20
- Why Segmenting Market ————————————24
- Types of Market Segments———————————–26
- Factors Influencing Segmentation————————–28
- Qualities of a Market Segmentation————————-30
- Tactical Application——————————————–31
- Summary of Literature Review——————————–31
RESEARCH METHODOLOGY ————————————33
- Introduction —————————————————–33
- Design of the Study——————————————-34
- Area of the Study———————————————–34
- Population of the Study—————————————-35
- Sample of the Study——————————————–35
- Instrument for data Collection——————————–37
- Validation of Instrument—————————————37
- Distribution and retrieval of Instrument———————-37
- Method of Data Analysis—————————————-38
DATA PRESENTATION AND ANALYSIS———————–39
4.1 List of Findings————————————————-48
4.2 Discussion of Finding——————————————50
SUMMARY, CONCLUSION AND RECOMMENDATION——52
- Summary of Findings——————————————-52
- Conclusions ————————————————–54
- Limitations of the Study————————————–61
- Suggestions for further Studies——————————62
The aim of this project is to discover the Effect of Market Segmentation and Positioning on Company Performance in Selected Publishing firms in Owerri. The study seeks to find out how market segmentation and product positioning helps the firms in achieving greater part of its sales objectives. In an attempt to carry out the study effectively, a total sample of five firms were judge mentally selected. The survey method and the chi-square statistical tools was used for this study. From the analysis of the data, it was deduced that the selected firms consider the application of market segmentation and positioning as very important part of a firm’s sales objectives. The selected firms also use product positioning to achieve their aims. The firms marketing operations are regionally structured. However, it was noted that the firms is selling to all the academic field. Finally, the following suggestions were seen: There should be adequate provision of funds. The firms should engage more in market research and survey; the organizations should put in more effort to train their sales executives. They should improve on advertising and other sales promotional mix. Lastly, the issue of transportation and distributional facilities should be improved.
1.1 Background of the Study
The subject matter of market segmentation is the dissagregation of the population into separate groups or subgroups.
It is time that many cricisms of marketing are prompted by misunderstanding and/or miss-application of the marketing concept. Usually, the mistaken marketing concept is inertly interpreted as “Give the customer what he wants” which in many cases, is a sure road to ruin.
In reality, the marketing concept advice that we should establish users or buyers needs and determine if, how and to what extent it may be possible to satisfy these given ones existing and potential resources to the mutual bandit both parties to the exchange.
Clearly, the real marketing concept requires the marketer to steer a careful course between, regarding every individual as a discurece marketing opportunity. From consumers and organizational buying behaviour, it is apparent that one can either disaggregate a population into separate groups or sub-groups of population through the use of a variety of distinguishing distinctive features which must be passed by those within the group but the at same time, are absent from those excluded from it.
In marketing this process is known as “Marketing segmentation”. Marketing segmentation could also be a process of dividing a total market into groups consisting of people who have relatively similar product made. The purpose is to design a marketing mix(es) that more precisely match(es) the needs of individuals in a selected segment(s)
A market segment on the other hand is a group of individuals, groups or organization who share one or more similar characteristics that cause them to have relatively product needs. Beyond identifying segments in the market, management must carefully consider both the strengths and the weaknesses of competitors when developing marketing strategy. This is to aid the product-positioning task. In essence, product positioning extends market segmentation by defending the market target that management intends the firm to penetrate. It establishes the segment at which the firm intends to focus its marketing efforts. This is the segment(s) where the firm is most likely to have a competitive advantages.
Market segmentation and product positioning can enable a firm to select a target from which it has a competitive advantage, so that a lasting market position, one of solid market strength can be established.
Marketing perform two basic tasks in meeting the exchange objectives. First, the identify potential markets are select certain target markets to serve, them they design and implement marketing strategies to meet those target market objectives. In the segmentation of textbooks as a product, it should be noted that the consumers of textbooks buy with different categories of buyers of textbooks according to the use, need and status of these buyers based on this the concept of segmentation in the publishing firms are based upon the position that.
- Consumers are different.
- Differences in consumers are related to differences in the market demand and buying motives.
- Segmentation of consumers can be possible because segments of consumers can be isolated within the overall market.
- Market target segments are sufficiently stable to allow adequate lead time for the design and implementation of a marketing strategy and
- At least, one segment has sufficient demand potential to justify selection as a market target.
The benefits of market segmentation and positioning are numerous and include that, the management is better able to access competitive strength and weakness of greatest importance.
1.2 Statement of Problem
Generally, a great number of problems confront the application of market segmentation and positioning. To describe market segmentation does not seem different but to put the description into practice is not easy. Some of the problems however are particular about market segmentation and positioning in textbook publishing firms. Some of these problems are stated in the work with the purpose of finding solution to them.
- The inability of the firm to classify their customers group according to the uniqueness in purchases.
- The segmentation and positioning is based on subject rather than based on customers/consumers and their needs.
- Inadequate transportation facilities for sales men whom their jobs require traveling from one place or customer to another.
- Inadequate sales training and education. There is simply not enough training for old and new employed salesmen hence; they lack knowledge and concept of market segmentation.
- Inability to carryout marketing survey and research. There is no provision to know how effective their strategy is and how customers responded to their
- The inability to carry out market research to know the extent of homogeneity and heterogeneity of their customers also pose problems to the organization.
1.3 Objectives of the Study
The main objective of this study is to determine the effect of market segmentation and positioning on company’s performance.
- To know if actually the companies or organization actually applies market segmentation and positioning in the sales of its product.
- Also, to know how the company’s sales is structured. This could be geographically, regionally or customer structured and if it can determine or know its target customers.
- The other objective of this study is also to know the method or strategy the companies actually uses in performing its functions.
- Also, the effectiveness of market segmentational and positioning strategies is achieving the firm’s goals as well as host of to others.
1.4 Significance of the Study
The study on the segmentation of market and positioning is very significant because many companies and organizations have had some problems to perform more profitable because of the lack of ideas to segmentation of market and positioning. This work would provide marketing/sales managers of companies and organizations in the state and the country at large, with the useful tools for designing and accessing the efficacy of their market segmentation programmes.
This study is very significant and justifiable in that market segmentation and positioning and identification target markets by organization are part of the tools for the realization turnover ratio of organizations as well as development sales.
Finally, this research in this direction thereby lagging foundation for other researchers.
1.5 Research Questions
For the purpose of this study, the following questions will be asked:-
- What categories of customer do the firm sells to?
- How do the firms structure its sales force.
- How do the firms distribute its products?
- Do firms use market segmentation and positioning in achieving its sales objective
For the purpose of this work, the following research hypothesis are formulated and need adequate attention hence, they will be subject to test of reliability and authority.
Ho: The firm does not use market segmentation and positioning to achieve greater part of her objectives.
H1: The firm uses market segmentation and positioning to achieve greater part of her objectives.
Ho: The firm marketing operation are not regionally structured.
H1: The firm marketing operation are regionally structured.
1.7 Scope of the Study
This piece of work centers on the geographical areas that were covered in owerri. The study of the sample was narrowed to five publishing firms in owerri and they are seen below;
Assumpta press, located at 19A industrial layout, Onitsha Road Owerri.
Totan Publishing company, Owerri.
Nigeria packaging and paper manufacturers located at 51 Onitsha Road, Owerri.
Macmillian Nigerian publishers limited Owerri. 16 Mbari Street, Ikenegbu layout
Africana first publishers limited located at 124b Okigwe road, Owerri.
1.8 Definitions of Terms.
MARKET:- It can be defined as a geographical location where buyers and sellers transact business. It can also be seen as an aggregate demand by potential buyers of product or services. Market can also been seen as people with needs to satisfy, the money to spend and the willingness to spend it whenever it becomes necessary to do so.
MARKET SEGMENTATION:- This is the process of dividing the heterogonous market into smaller division having relatively homogenous characteristics that can be satisfied by the firms.
POSITIONING:- This is the act of establishing a viable competitive positioning of the firm and its offerings on the selected target market.
MARKET TARGET:- It is the process of selecting a segment of the total market and going after it with the company’s product or closing a selected of the market with which to deal with in relation to the firm offerings.
MARKET CONCEPT:- This is the philosophy of business which state that, the customers want for satisfaction is the economic and social justification for a firm’s existence.
HOMOGEINITY: This is defined as the thing of the same kind; though in marketing it means one target market with one or same type of product in the whole market.
HETEROGEINITY: Dictionary defines it as what is made up of different types or kinds; but in marketing it means entering the market and audience for such product.
SALES PROMOTION: This is being defined according to Aderika E.O et al (1996: 142) as something extra that can arouse interest. create a buying desire spark immediate reaction from customers, middlemen and company sales force.
UNDIFFERENTIATED MARKET: This is a situation where the marketer goes after the whole market with one product offering.
RESEARCH: OLAKUNLE K.O (1997) defines research as the planned and systematic investigation and collection of relevant facts, the Analysis and interpretation of those facts through objectives and verifiable methods for the purpose of arriving at solutions to problems.
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