ABSTRACT
The project work was an attempt to investigate the impact of segmentation on customer satisfaction. The main objectives were. To determine the impact of market segmentation in regard to patronages, to determine whether market segmentation lead to increase in customer patronage and to determine the role of segmentation in the market of MTN products. Bases on the objective of the study, five research question were formulated. The populations of study were drawn from the customer of MTN in Enugu metropolis. Bourley’s formular was used to determine the sample size. Questionnaire and personal interview were used to elicit data from respondents. Simple tables and percentages were used to analyze data collected. Based on the analysis the following findings were made; the researcher discovered that the company (MTN) segments that product effectively in order to maximize growth sales and also the researcher discovered that there are increase in sales volume as a results of effective product segmentation. The researcher therefore made the following recommendations; the company should embark on marketing research in line with customers relationship so as to be able to interpret and understand customers relationship so as, to be able to interpret and understand customer behavior and also they should enlarge the scope of their coverage especially the rural areas where their mass is not sited.
TABLE OF CONTENTS
Title Page ii
Approval iii
Dedication iv
Acknowledgement v
Abstract vi
Table of Contents vii
List of Tables viii
CHAPTER ONE
Introduction
- Background of the study 1
- Statement of Problem 4
- Objective of the Study 5
- Research Questions 6
- Significance of the Study 6
- Scope of the Study 7
- Limitations of the study 7
- Definitions of Terms 8
CHAPTER TWO
2.0 Review of Literature 11
2.1 An Overview of Market Segmentation 11
2.2 Objective of Market Segmentation 12
2.3 Segmentation Criteria 14
2.4 Conditions for effective market Segmentation 18
2.5 Evaluation of market Segmentation 20
2.6 Impact of Segmentation on Customers Satisfaction 23
2.7 Segmentation in MTN 25
2.8 Subgroup served by MTN 27
2.9 Product used for each Market Segment of MTN 28
2.10 Implication and Application of MTN Segmentation in satisfactory their customers 29
2.11 The basis of MTN segmentation in Enugu Metropolis 29
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
Research Design
3.0 Research Methodology 32
- sources of Data 32
- Population of the study 32
- Sample Size Determination 33
- Sampling Techniques 33
- Research Instrument Used 35
- Method of Questionnaire Administration 35
CHAPTER FOUR
DATA PRESENTATIONS AND ANALYSIS
- Presentation and Analysis Of Data 37
CHAPTER FIVE
DISCUSSION OF FINDINGS, RECOMMENDATION AND CONCLUSION
- Summary of Findings 48
- Recommendations 49
- Conclusion 50
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
- BACKGROUND OF THE STUDY
Segmentation in a strategic marketing context involved customer grouping and identification of group with similar needs and that can respond differently from other groups of competitive strategies. Segmentation tends to be a key to developing a sustainable competitive advantage which may be based on differentiation focus strategy. Moreso, segmentation compels the firm to design a marketing programme tailored to deliver competitive offering to the selected segment.
According to Adirika E. (2008:267), segmenting market is a foundation to superior business information. Understanding how buyers need and want vary is essential in designing effective marketing strategies. The need to improve an organization understanding of buyer is escalating because of buyer’s demand for uniqueness and the array of technology available to generate products to satisfy these demands, buyer vary according to how they use products, the needs and preferences that the product satisfy and their consumption patterns.
According to Gravens and Piercy (2006:116), market segmentation is the process of identifying and analyzing subgroups of buyer in a homogenous market with similar response characteristics (eg frequency purchases). Recognizing the difference between market segments and how they changes better and faster than competitors, advantages. The most specific form of market segmentation entails considering each buyer as a market segment. This is the basis of one to one marketing.
According to Adirika et al (1996:39), opined that market segmentation is the sub-diving of heterogeneous market into homogenous, subsets or group of customers so that each subset can conceivably be selected as a separate market target to be reached with distinct marketing mix. They went on to say that it is the dividing of market for a generic type of item into groups of potential customer, when there are intra-group seminaries and inter-group difference in terms of marketing offering and programmse. It is the act of turning measuring heterogeneity not meaningful homogeneity.
Udeagha (1995:56), posit that market segmentation means of splitting a heterogeneous market into units that are as homogeneous as possible, unit that have reality similar products or service needs and that can consequently be ascended, with the same marketing programmes. These units may be big or small. The aim of this exercise is a make it possible for management to design marketing strategies that will match the market segment so designed.
MTN, Nigeria a part of the MTN group, Africa’s leading cellular telecommunication company. On May 16, 2001 MTN became the first GSM network that set a stand in Nigeria as whole in which other telecommunication networks adopt their so as to bid their own mission statement, Nigeria GSM audition conducted by the Nigeria Communications Commission (NCC) earlier in the year. Therefore, the company launched full commercial operations beginning with Lagos, Abuja and Port-Harcourt.
Since launched in August 2001, MTN has steadily developed its service across Nigeria. It was provided services in 223 cities and towns, more across the country, many of these villages are communities are being connected to the world of telecommunications fro the first time ever.
MTN Nigeria also recently expanded its network capacity to include a new numbering range with the prefix 0806 and 0813, making MTN first GSM network in Nigeria to have adopted an additional number system having exhausted its initial subscriber numbering range 0803.
In its resolve to enhance quality customer service MTN Nigeria has also introduced a self help toll-free 181 (Customer careline) through which subscriber can resolve their frequently ask questions free of charge. Induce, MTN can be identify as one of the companies that segment their product so as to reach customer satisfaction.
1.2 STATEMENT OF THE PROBLEMS
It is unfortunate that market segmentation in the industrial areas has not pursued as vigorously as it has in the consumer area. Probably, difficulty, customer is the diversity among end users and product, applications, customer characteristic and purchasing decision.
Despite the fact that MTN Nigeria is said to be the leader on cellular telecommunication that strategies all the available opportunities to maintain their standard by way of segmenting on positioning their products in the mind of their customers. However, they still encounter some problems in attempt of marketing their product to their extended and their immediate buyers. Some of this problem related to fluctuation on networks which necessitate network failure through persistent, moreso, the problem of withstanding the competitive nature of the marketing environment in other to attract and retain their customers. In addition they still have this as a problem high tariff charge” which secure most of their customers from using their personal MTN line to make call.
1.3 OBJECTIVES OF THE STUDY
The objectives of the study includes:
- To determine the impact of market segmentation in regard to patronage.
- To determine whether market segmentation leads to increase in customer patronage.
- To determine the role of segmentation in the market of MTN products.
- To identify some of the problem confronting market segmentation of MTN product.
- To determine if customers are satisfied with the market segment strategies of MTN.
1.4 RESEARCH QUESTIONS
The following research questions are formulated by the researcher and these include:
- What impact does market segmentation played towards customer satisfaction?
- What are the problems associated with market segmentation?
- What relationship exists between market segmentation with customer patronages?
- What are the basis for market segmentation practice of MTN?
- Does market segmentation helps in achieving the corporate organizational goals/
1.5 SIGNIFICANCE OF THE STUDY
- It will enable MTN in understanding the level of their product satisfaction.
- Moreso, the management will benefit on basis for segmenting their product/ services.
- Consumer will benefit in terms of having full knowledge of various products/ service available in term of provision by MTN.
- The research documentation can likewise serves as references materials to other researcher embarking on related topic.
- It will position the management to known has to satisfy their customer effectively and efficiently.
1.6 SCOPE OF THE STUDY
In carrying out a study on the impact of segmentation on customer satisfaction, researcher tend to limit to Enugu metropolis by narrowing it down to MTN as one of the cellular telecommunication companies who provide different product and services at their jurisdiction using market segmentation as a tools to achieve the organizational goal and objective.
1.7 LIMITATION OF THE STUDY
The limitation of the study has to do with time, finance and respondents attitude. Time as one of the limitation factor came into play due to the fact that the researcher does not have enough time to embark on the study extensively due to other academic activities altogether finance is also another factor because money has to be involve in terms of area to be covered, printing of questionnaire, transportation etc which was not extensively done due to insufficiently and finally, the respondents attitude which seen to be discourage and their unwilliness to answer some of the question administered.
1.8 DEFINITION OF TERMS
Customers: These are set of people who posses the purchasing power and willing to buy either for resale or for consumption
purposes over a given period of time.
Segmentation: This is the process of subdividing a heterogeneous market into homogeneous subset or group of customers so that each group can conceivably be selected as a separate market target to be reached with a distinct marketing mix.
MTN: Can be seen as one among cellular telecommunication company that render product and services to their customers in exchange of money.
Segmentation viable: These has to do with basis for segmentation which include gender, geographical demographical, pschographical etc.
REFERENCES
Adirika E.O (2008), Marketing Planning and Control, Volume
- Enugu; J.T.C Publishers.
Adiriks et al (1996), Principle of Marketing Volume 1. Enugu;
John Jacob’s Classic Publishers.
Cravens and Piercy (2006), Strategic Marketing editioin,
McGraw, Hill, Irwin
Udeagha B. (1995), Introduction to Marketing Management
and Practice, 2nd edition Enugu: Je-rohi Publishers
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