IMPACT OF MARKET SEGMENTATION ON ORGANIZATION PROFITABILITY
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IMPACT OF MARKET SEGMENTATION ON ORGANIZATION PROFITABILITY
Chapter one
Background of the study
1.1 Introduction
Market segmentation is the practice of breaking various types of markets into smaller consumer divisions with distinct characteristics that can be met by an organisation or a market.
It can also be defined as the process of splitting a homogeneous group into subgroups that respond differently to promotions, communication, and advertising. It is a marketing strategy used by organisations to attain the capital spent in their marketing operations.
This initiative aimed not simply to demonstrate the benefits of segmenting an organization’s marketing operations. All market segmentation consists of clients with distinct wants, and organisations seek different ways to bring these diversities to others as the established strategies to completes for customers.
Mason & Ezeun (1990). Because the groups are created to minimise underlying variations between respondents, different marketing mixes can be used to target each segment or group separately. Began & Finr Bemer (1994).
Most organisations fail to use marketing segmentation in their marketing operations; therefore, discussing the benefits of market segmentation becomes crucial. Some years ago, the issue of increased attention in terms of segmented markets filled the air.
All of this tends to bring in not only the need for the organisation to apply market segmentation to be properly achieved, but this study will show how market strategy tends to influence the sales volume of any organisation. It should be mentioned that market segmentation serves the following marketing purposes.
It aids in discovering underserved markets and enables a new company or new items to approach less competitive clients.
It is easier to meet the needs of smaller groups of clients.
It makes better use of marketing resources by concentrating on the core section of the business.
1.2 Statement of Problems
Market segmentation is the dividing of a market into homogenous groups that respond differently to certain characters. It is the split of market into separate subsets of customers, where every subset can possibly be picked as a target market addressed with a distinct marketing mix (Kotler, 1980:195).
Despite the benefits of market segmentation in market operations or organisations, most firms do not often implement such a policy in their marketing operations due to specific problems. However, a market segmentation approach is being implemented in Champion Breweries Plc Uyo.
1.3 Object of the Study
The objectives of this investigation are as follows:
To evaluate the impact of market segmentation on the profitability of Champion Breweries Plc Uyo.
Determine the objectives of market segmentation champion Breweries Plc Uyo.
To determine the market segmentation approach employed by Champion Breweries Plc (Uyo)
To identify challenges that champion breweries face in the market segmentation strategy.
To offer strategies to improve marketing effectiveness in Champion Breweries Plc by employing market segmentation.
1.4 Significance of the Study
This study focuses on the influence of market segmentation on Champion Breweries Plc.
This study also acts as a challenge to other competitors in the company.
This study serves as a resource for other students who may be interested in conducting similar research.
1.5 Scope of the Study
The scope of this study is limited to Champion Breweries Plc and includes all employees, from junior to manager level. The limitations that may arise are as follows:
Because of timing constraints and limitations
A bad communication network.
Financial breakdown.
Bad mode of transportation.
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