This project work was an attempt to investigate the effect of
market segmentation and position of company performance. The main
The main objectives were:
1.To know what market segmentation and positioning
is al about as it involves the company under study.
2.To known how the company’s sales is
structured. This could be geographically, regionally or customer
structured and if it can determine or known its target customers.
3.To know if the companies actually applies market
segmentation and positioning in the sales of its product.
Based on the objectives of the study, two (2) hypotheses were
formulated. The populations of study were drawn from the customers, of
selected textbook companies in Enugu. Bourley’s formular was used to
determine the sample size. Questionnaires and personal interview
were used to elicit data from respondents. Simple tables and percentages were
used to analyzed data collected.
Based on the analysis,
the following findings were made;
1.In testing the result of the analysis with
hypothesis number one, it was gathered from the analysis that the company use
market segmentation and positioning to achieve the market target of the company.
2.The hypothesis number two(2) showed that the
operations of the organization are regionally structured.
The research therefore made the following recommendation:-
the issues of finance, the research strongly recommend that adequate provision
of capital should made.
organization should also engage more in market research and survey.
TABLE OF CONTENTS
1.1 Background of the
1.2 Statement of the
1.3 Objectives of the
1.4 Hypothesis/ Research
1.5 Significance of the
1.6 Scope Delimitation of the Study
Review of related literature
2.2 Meaning and Scope of Segmentation
2.3 Criteria for Segmentation
2.4 Bases for Segmentation
2.5 Attributes used to select target
2.6 Why Segmentation Markets
2.7 Types of Market
2.8 Factors Influence Segmentation
2.9 Tactical Application
DESIGN AND METHODOLOGY
3.1 Source of Data
3.2 Population of the Study
3.3 Research Instrument
3.4 Sample Techniques
3.5 Selection and Construction of Research
3.6 Questionnaire Administration and
3.7 Method of Data Analysis and
analysis, and interpretation
4.1 Presentation, Analysis, and
4.2 Test of
5.4 Limitations of the Study
1.1 BACKGROUND OF THE STUDY
The subject matter of market segmentation is the
strategy that involves dividing a large market into subsets of consumer and
service offered in the market. These sub-groups of consumers can be
identified by a number of different demographics depending on the purpose
behind identifying the groups. Marketing campaign are often designed and
implemented based on these types of consumer segmentation. One of the
main reasons for engaging in market segmentation is to help the company
understand the needs of the customer base. Often the task is segregating
consumer by specific criteria will help the company identify other application
for their products that may or may not have been self-evident before.
Uncovering these other ideas for use of goods and services may help the company
target a large audience in that same demographic classification and thus
increase “Market share” among a specific sub-market base.
according to Schiffman et al (2007:44), is the process of dividing a market into
distinct subsets of consumers with common needs or characteristics and
selecting one or more segments to target with a distinct marketing mix.
“Selected textbook publishing companies in Enugu” who are faced with the
problem of providing adequate number of high quality book, unqualified author
publisher, poor production and lack of capital are all evident. The
strategy of segment allows producers to avoid head on competition in the market
place by differentiating their offerings, not only on the basis of price but
also through styling, packaging, promotional appeal, method of distribution and
In reality, the
marketing concepts advice that, we should establish users or buyer needs, and
determine if how and what extent it may be possible to satisfy these given ones
existing and potential resources to the mutual bandit both parties to the
according to Edoga P. N. (2008:88) is the process of dividing the total market
into several relatively homogeneous groups with similar product
interests. This process requires marketer to identify factors that affect
purchasing decisions, so that the consumer can be group accordingly.
Marketing mixes are then adjusted to meet the needs of each target segment.
Market segmentation by grouping together customer with similar needs, provides
a commercially viable method of serving these customer. It is therefore
at the heart of strategic marketing since it form the basis by which marketers
understand their markets and develop strategies for serving their chosen
customer better than the competitors.
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. 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. Market segmentation and positioning
will 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
Marketing perform two
basic tasks in meeting the exchange objectives. Firstly, they design and
implement marketing strategies to meet those target market objectives. A
target market is a chosen segment of market which a company has decided to
serve. As customers in the target market have similar characteristics, a
single marketing mix strategy can be developed to match those requirements.
Creation segmentation may result in identification of new segments that have
not been served adequately hitherto any may form attractive target market to
Marketing strategies or
action plan for accomplishing objectives, then are thought in terms of
particular markets. In the segmentation of textbooks publishing
companies in Enugu are based upon the position that:
i) Consumers are different.
ii) Differences in consumers are related to
differences in the market demand and buying motives.
iii) Segmentation of consumers can be possible
because segments of consumers can be isolated with the overall market.
iv) Market target segments has sufficient demand
potential to justify selection as a market target.
The benefits of market segmentation and positioning are numerous
Marketing Mix: Market
segmentation allows the grouping of customers based upon similarities (eg.
Benefits through sought) that are important when designing marketing
strategies. Consequently, this allows marketers to understand in-depth
the requirements of segments and tailors a marketing mix package that meets
their needs. This is a fundamental step in the implementation of the
marketing concept: segmentation promotes the motives of customer’s satisfaction
by viewing markets as diverse sets of needs which must be understood and met by
2. Differentiation: Market segmentation allows the development
of differential marketing strategies by breaking a market into its constituents
sub-segments (if chosen to target more than one segment) and within each
segment it can differentiate its offering from the competition a company is
giving the customer a reason to buy from them rather than the competition.
and Threats: Market
segmentation is useful attempting to spot opportunities and threats market are
rarely static. As customers become more affluent, seek new experience and
develop new value new segments emerge. The management is better able to
access competitive strength weakness of greatest importance.
Positioning idea must be clear
in terms of both target market and differential advantage.
5. Consistency: People are bombarded with message daily to break
this through this noise, a consistent message is required.
6. Credibility: The differential advantage that is chosen
must be credible in the minds of the target customer.
7. Competitiveness: The differential advantage should
have competitive edge. It should offer something of value to the customer
which the competition failing to supply.
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.
1) The inability of the firm to classify their
customers group according to the uniqueness in purchases.
2) The segmentation and positioning is based on
subject rather than based on customers/consumers and their needs.
3) Inadequate transportation facilities for sales
men whom their jobs require traveling from one place or customer to another.
4) 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.
5) Inability to carryout marketing survey and
research. There is no provision to know how effective their
strategy is and how customers responded to their offerings. 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
Like the marketing philosophy pointed out, every
marketing oriented firm or organization has the primary duty of not only making
sales for the company but for the identification of customers need and planning
to satisfy these customers’ needs at a profit to the firm.
For the purpose of this work, it is
therefore very important to review the strategy and offerings of organization
with a view to finding how effective such strategy and offering are meeting the
objectives of the organization that is applying them. It is the light of
this that this work outlines the following:-
i) To know what market segmentation and positioning
is all about as it involves the companies under study.
ii) To know if actually the companies or
organization actually applies market segmentation and positioning in the sales
of its product.
iii) 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.
iv) The other objective of this study is also to
know the method or strategy the companies actually use in performing its
v) Also, the effectiveness of market segmentation
and positioning strategies is achieving the firm’s goals as well as host of
1.4 RESEARCH QUESTIONS /
For the purpose of this
study, the following questions will be asked:-
1) What categories of customer do the firm sales to?
2) How do the firms structure its sales force.
3) How do the firms distribute its products?
4) 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.
H0i: The firm does not use market segmentation and
positioning to achieve greater part of her objectives.
H0i: The firm use market segmentation and positioning
to achieve greater part of her objectives.
H02: The firm marketing operations are
not regionally structured.
H02: The firm marketing operations
1.5 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
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.
TERMS AND CONDITIONS APPLY
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