ABSTRACT
This research work is on market segmentation as a competitive strategy in manufacturing companies, a study of Sunseed Oil Mills Plc., Zaria. The major problem noted is lack of market segmentation knowledge and its importance which has a negative effect on the company’s competitive strategy. 47 copies of questionnaires were distributed and 41 copies were duly completed and returned. Using SPSS statistical tool chi–square to test hypotheses, it states that: “There has been an increase in acceptance of your product by the members of the public”. The hypothesis was accepted after being tested with the highest positive value. According to the respondents, market segmentation problem is not dominant in the organization but other factors as lack of knowledge was presented as problem affecting market segmentation and competitive strategy of the organization. The recommendation to this is that if market could be segment in the right way or carryout in the right manner, organization could achieve a great competitive strategy or advantaged.
TABLE OF CONTENTS
Declaration. ii
Certification. iii
Dedication. iv
Acknowledgementv
Abstractvii
CHAPTER ONE.. 1
INTRODUCTION.. 1
1.1 Background to the study. 1
1.2 Statement of the problem.. 3
1.3 Research questions. 3
1.4 Objectives of the study. 4
1.5 Research hypothesis. 4
1.6 Significance of the study. 4
1.7 Scope of the study. 5
1.8 Limitations of the study. 5
1.9 Definition of terms. 5
CHAPTER TWO.. 7
LITERATURE REVIEW AND THEORETICAL FRAMEWORK.. 7
2.0 Introduction. 7
2.1 Historical background of Sunseed Nigeria Plc.7
2.2 Definition of market10
2.3 Definition of marketing. 11
2.4 Concept of market segmentation. 12
2.5 Evaluation of market segmentation. 14
2.6 Selecting the market segments. 14
2.7 General types of market segmentation strategy. 16
2.8 Bases for segmenting market19
2.9 Theoretical framework. 23
CHAPTER THREE.. 25
METHODOLOGY.. 25
3.0 Introduction. 25
3.1 Research design. 25
3.2 Population of the Study. 25
3.3 Sample size and sample technique. 26
3.4 Sources of data. 27
3.5 Administration of data collection. 28
3.6 Justification of method used. 28
3.7 Technique of data analysis. 29
CHAPTER FOUR.. 30
DATA ANALYSIS AND PRESENTATION OF RESULT. 30
4.1 Introduction. 30
4.2 Data presentation and analysis. 30
4.3 Test of hypothesis. 39
4.4 The research findings. 43
4.5 General discussion on the implication of findings and summary. 43
CHAPTER FIVE.. 44
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS. 44
5.1 Summary. 44
5.2 Conclusion. 45
5.3 Recommendations. 45
BIBLIOGRAPHY.. 48
APPENDIX.. 59
CHAPTER ONE
INTRODUCTION1.1 Background to the study
The marketing concept is a management idea and wisdom aimed at mobilizing, utilizing and controlling of all corporate effort towards provision of consumer satisfaction as well as improving the profit of the organization at large. The marketing segmentation is a modern way of directing management focus towards consumers. Organizations that engages in this marketing concept would testify how vital this is to the success of their organizations. This fundamental approach of business to give the customer the highest satisfaction.
The marketing segmentation as a concept is on four (4) basic issues which are:
i. Consumer should be the main concern of any organization that is organization plans for its operation and activities should be consumer oriented.
ii. Every department and employee is to focus on contributing towards satisfying the consumers need.
iii. All marketing activities should be well coordinated, this involves product, pricing, distribution and promotion.
iv. The objectives of the organization is not making maximum sales but making profitable sale.
Market segmentation is an ideology that business need to analyze the needs of their customers and make better decision to satisfy those customer need in a most better decision to satisfy those customer need in a most better way than their competitors. Many organizations have engaged in market segmentation, nowadays, this was not the case before. In 1976, in the book wealth of Nations, Adams Smith wrote that “the need of producers should be considered only with regards to meeting the needs of consumers”.
After the world war II, the variety of products increased and had selling no longer relied upon to generate income because customers could afford to be selective and but only those products that exactly meet their changing need which were not actually obvious.
Organizations should follow or observe the following in order to meet consumer’s needs.
i. To focus on consumers needs before developing a product.
ii. Diverting all functions or activities of the firm on those needs.
iii. Realization of a profit by a successful satisfaction of the consumers for a period of time.
When an organization or organizations began to adopt to this marketing concept, they set up a separate marketing department whose objectives is to achieve consumer’s satisfaction.
Basically marketing segmentation is an idea that organizations adopt to survive and promote consumers need and wants. The marketing concept is all about making a company’s ability and capability where innovation process takes place in a market environment. Firms does not undertake and undergo business easily, they face challenges in political, economic, social and technological problem. These are considered as business tries to march capabilities with respect to consumers. An organization that adopt this concept accept the fact that its success depends on satisfying consumers need.
It is in respect of this research that I tend to find out how consumers can be reached to achieve satisfaction since they are the central key in marketing strategies. One of there is market segmentation. No firm can produce to satisfy the whole market, so there is need to segment. For any firm to produce and market its products effectively and profitable, it has to identify its target consumers and the market.
It is obvious that marketer’s success depends fundamentally on enough knowledge of the market.
1.2 Statement of the problem
It is a clear fact that market segmentation and its application in serving the different segments of the market is not properly applied. From interaction with some consumers and distributors, I found out that most firms find the concept of market segmentation a non – existent practice and unviable, this unknown to such organizations, it is a fact that the concept when effectively used or implemented could achieve to a great extent the survival of the firm.
Lack of market segmentation knowledge and its importance has made many producers not to meet the consumers need, this is because producers do not know which market segment to render and how to implement it, that is where exist few buyers, how is such market segmented? How can the sub – group market be identified either as a competitive strategy or as a burden in promotion activities?
It is based on this that the problem of the study emerged in an attempt to bring into focus the need for market segmentation in an organization.
1.3 Research questions
In line with the problems of this research study, the questions were raised:
i. How does the organization undertake market segmentation?
ii. What are the basis for segmenting the market?
iii. To what extent has SunseedCompany adopted the segmentation concept?
iv. What are the importance and effects of market segmentation towards marketing a product?
