EFFECT OF MARKET SEGMENTATION AND POSITIONING OF COMPANY PERFORMANCE
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EFFECT OF MARKET SEGMENTATION AND POSITIONING OF COMPANY PERFORMANCE
Chapter one
INTRODUCTION
1.1 Background of the Study
Market segmentation is a strategy for breaking a huge market into subsets of consumers and services available in the market. These sub-groups of customers can be identified using a variety of demographics, depending on the aim of the identification. Marketing campaigns are frequently created and conducted using these sorts of consumer segmentation.
One of the primary motivations for engaging in market segmentation is to help the organisation understand the needs of its customers.
Frequently, the job of categorising consumers based on specific criteria will assist the corporation in identifying additional applications for its products that may or may not have been obvious previously.
Uncovering these other uses for goods and services may assist the corporation in targeting a broad audience in that same demographic categorization, hence increasing “market share” among a certain sub-market base.
According to Schiffman et al. (2007:44), market segmentation is the process of breaking a market into discrete subsets of consumers that have similar demands or characteristics and selecting one or more segments to target with a specific marketing mix. ”
Selected textbook publishing companies in Enugu” are struggling to provide an adequate number of high-quality books, as evidenced by unqualified author publishers, inadequate production, and a lack of cash.
The segmentation strategy enables producers to avoid direct market rivalry by differentiating their offers not just in terms of pricing, but also in terms of styling, packaging, promotional appeal, distribution technique, and improved service.
In fact, marketing concepts advise that we should identify users’ or buyers’ wants and assess whether or not it is possible to meet these given their existing and potential resources to the joint benefit of both sides in the trade.
Market segmentation, according to Edoga P. N. (2008:88), is the process of splitting the whole market into numerous generally homogeneous groups with similar product preferences. This approach requires marketers to uncover elements that influence purchasing decisions so that consumers can be grouped appropriately.
Marketing mixtures are then tailored to the needs of each target category. Market segmentation, which groups customers with similar demands, provides a commercially feasible way of providing these customers.
It is so crucial to strategic marketing since it serves as the foundation for marketers to understand their markets and establish strategies for better serving their target customers than competitors.
A market segment, on the other hand, is a collection of people, groups, or organisations who share one or more traits that cause them to have similar product demands.
Beyond establishing market categories, management must carefully analyse competitors’ strengths and shortcomings while developing marketing strategy. This is to aid the product positioning process.
Market segmentation involves defending the market target that management wishes the firm to penetrate in order to determine the segment on which the firm plans to spend its marketing efforts.
Market segmentation and positioning enable a corporation to select a target from which it has a competitive advantage, allowing it to develop a long-term market position based on solid market strength.
Marketing performs two basic activities in order to fulfil the exchange objectives. First, they develop and implement marketing strategies to achieve their target market objectives.
A target market is a specific section of the market that a company has opted to service. Because customers in the target market share comparable features, a single marketing mix approach may be created to meet those needs.
Creation segmentation may result in the identification of new segments that have not previously been well supplied, which may create an appealing target market to pursue.
Marketing strategies or action plans for achieving objectives are then considered in terms of specific markets. The segmentation of textbook publishing businesses in Enugu is based on the following position:
i) Consumers differ.
ii) Consumer disparities are due to differences in market demand and purchasing motives.
iii) Consumer segmentation is possible because segments of the market can be separated.
iv) Market target segments have a high enough demand potential to warrant their selection as market targets.
The advantages of market segmentation and positioning are numerous, including:
1. Tailored Marketing Mix: Market segmentation allows for the grouping of clients based on similarities (e.g., benefits sought), which is significant when developing marketing strategy.
As a result, marketers can gain a thorough understanding of segment requirements and design a marketing mix package to their specific demands.
This is an important stage in implementing the marketing concept: segmentation enhances consumer satisfaction by viewing markets as varied sets of demands that must be understood and supplied by suppliers.
2. Differentiation: Market segmentation enables the development of differential marketing strategies by dividing a market into its constituent sub-segments (if more than one segment is chosen to target) and within each segment,
a company can differentiate its offering from the competition, giving the customer a reason to buy from them rather than their competitors.
3. Opportunities and risks: Market segmentation is essential for identifying opportunities and risks, as markets are rarely static. As customers gain wealth, seek new experiences, and create new value, new segments arise. Management is better able to identify competitive strengths and weaknesses.
4. The positioning concept must be defined in terms of both target market and differentiated advantage.
5. Consistency: People are bombarded with messages every day; in order to break through the noise, a constant message is essential.
6. Credibility: The distinctive advantage chosen must be credible in the eyes of the target consumer.
7. Competitiveness: The differential advantage should provide a competitive advantage. It should provide something of value to the customer that the competition is failing to do.
1.2 Statement of Problem
In general, there are numerous issues that arise when using market segmentation and positioning. Market segmentation is simple to outline, but putting it into reality is difficult.
Some of the issues, however, are specific to market segmentation and placement in textbook publishing companies. Some of these issues are addressed in the study with the goal of finding solutions to them.
1) The firm’s incapacity to categorise their consumers based on their distinct purchasing patterns.
2) The segmentation and positioning are subject-based rather than customer/consumer-focused.
3) Inadequate transport options for salespeople whose occupations demand them to go from one location or customer to another.
4) Insufficient sales training and instruction. There is just insufficient training for both experienced and newly hired salespeople, resulting in a lack of knowledge and understanding of market segmentation.
5) Inability to conduct marketing surveys and research. There is no way to determine how effective their plan is or how customers react to their goods.
The organisation also faces challenges due to its incapacity to do market research to determine the degree of homogeneity and heterogeneity among its clients.
1.3 GOALS OF THE STUDY
According to marketing philosophy, every marketing-oriented firm or organization’s principal responsibility is not only to make sales for the company, but also to identify client wants and plan to meet these demands at a profit to the firm.
For the purposes of this job, it is critical to assess an organization’s strategy and offerings in order to determine how effectively such strategy and products fit the objectives of the organisation that is implementing them. In light of this, this study outlines the following.-
i) To understand market segmentation and positioning as they relate to the companies under study.
ii) Determine whether the company or organisation uses market segmentation and positioning in the sales of its products.
iii) Also, understand how the company’s sales are arranged. This could be geographically, regionally, or customer-structured, and it should be able to identify or understand its target clients.
iv) Another goal of this research is to learn about the methods or strategies that corporations utilise to accomplish their functions.
v) The efficiency of market segmentation and positioning strategies is also measured by their ability to achieve the firm’s aims as well as a variety of other objectives.
1.4 Research Questions and Hypotheses
For this study, the following questions will be asked:
1) What types of customers does the company sell to?
2) How does the firm structure its sales force?
3) How do the corporations disseminate their products?
4) Do corporations employ market segmentation and positioning to achieve their sales objectives?
For the sake of this work, the following research hypotheses have been developed and require due attention; therefore, they will be tested for dependability and authority.
H0i: The firm does not use market segmentation and positioning to achieve the majority of its objectives.
H0i: The firm uses market segmentation and positioning to attain a larger portion of her goals.
H02: The firm’s marketing efforts are not regionally structured.
H02: The firm’s marketing operations are geographically structured.
1.5 Significance of the Study
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