The Bases For Effective Market Segmentation In A Service Organization In Enugu Metropolis

THE BASES FOR EFFECTIVE MARKET SEGMENTATION IN A SERVICE ORGANIZATION IN ENUGU METROPOLIS

ABSTRACT

Today in the global market environment, there are many buyers, these buyers differ in one or more variable. Thus, the differences may include the wants, purchasing power, geographical location, buying attitudes, any of these variables stand as a basis of segmenting a market. Segmentation is a marketing terminology used in the marketing field and is of great importance for any product that dreams of passing through the preliminary growth stage to the maturity stage in the product life cycle. This research work is meant to critically appraise the bases for effective market segmentation in a service organization focusing on MTN, Enugu. For a successful completion of this research work, the researcher will make use of both primary and secondary methods of data collection for gathering information. Primary data were collected through.

a)           Questionnaire administration

b)           Oral interview, and

c)           Personal observation

Secondary data were collected through

a)           Periodicals and journals

b)           Textbook and lecture notebooks and

c)           Internet

The data collected were presented in tasks and analyzed with simple percentage. Having carefully carried this study on the bases for market segmentation in a service organization, it was found out.  That market segmentation as practiced by MTN lead to increased patronage of their products and services. Based on the findings of the study the research made the following recommendation marketing organization including the telecommunication industries are advised to practice market segmentation because it reduces the risk which the organization experience when not practiced.

TABLE OF CONTENTS

Title page       -      -      -      -      -      -      -      -      i

Approval page        -      -      -      -      -      -      -      ii

Dedication      -      -      -      -      -      -      -      -      iii

Acknowledgement   -      -      -      -      -      -      -      iv

Abstract   -      -      -      -      -      -      -      -      -      v

Table of contents    -      -      -      -      -      -      -      vi

CHAPTER ONE: INTRODUCTION

1.1      Background of the problem    -      -      -      -      1

1.2      Objectives of the study   -      -      -      -      -      4

1.3      Objectives of the study         -      -      -      -      5

1.4      Research hypotheses      -      -      -      -      -      6

1.5      Significance of the study       -      -      -      -      8

1.6      Scope of the definition of terms    -      -      -      9

1.7      Definition of terms -      -      -      -      -      -      9

CHAPTER TWO:

2.0  LITERATURE REVIEW                                   11

2.1      Introduction    -      -      -      -      -      -      -      11

2.2      Overview of marketing segmentation    -      -      11

2.3      Objective of marketing segmentation    -      -      14

2.4      Basis for marketing segmentation for communication industry    -      -       -      -      16

2.5      Factors that make segmented attractive        -      19

2.6      Importance of segmentation in the marketing of communication service       -      -      -      -      -      22

2.7      Benefits of segmentation       -      -      -      -      24

2.8      Identifying marketing segments    -      -      -      25

2.9      Impact of segmentation in the communication industry       -      -      -       -      -      -      -      -      27

2.10  The effectiveness of segmentation of services in the communication industry  -      -      -      -      27

CHAPTER THREE:RESEARCH DESIGN AND METHODOLOGY

3.1      Sources of data      -      -      -      -      -      -      32

3.2      Population of the study -      -      -      -      -      33

3.3      Sample size determination     -      -      -      -      34

3.4      Sample Techniques        -      -      - -   -      -      36

3.5      Research instrument used      -      -      -      -      36

3.6      Reliability and validation of research instrument   37

3.7      Questionnaire allocation and distribution      -      38

3.8      Method of data analysis  -      -      -      -      -      40

3.9      Limitations of the study -      -      -      -      -      40

CHAPTER FORU:   DATA PRESENTATION AND ANALYSIS

4.1      Data Presentation   -      -      -      -      -      -      42

4.2      Presentation of demographic characteristics -      44

4.3      Testing of hypotheses    -      -      -      -      -      48

CHAPTER FIVE:    SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSIONS

5.1      Summary of findings      -      -      -      -      -      61

5.2      Recommendations -      -      -      -      -      -      62

5.3      Conclusions    -      -      -      -      -      -      -      63

Bibliography   -      -      -      -      -      -      -      65

Appendix        -      -      -      -      -      -      -      67

Questionnaire -      -      -      -      -      -      -      68

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

In the modern and dynamic world today marketers look at the overall market as a body consisting of many smaller part whose element have some characteristics. They are mostly distinct from the market entirely. For marketers entering a market, the total market must be divided into segments or divisions with similar wants and needs or behaviour.

Adirika, Ebue and Nnolim (1996, 40) Noted that most markets are too large for organizations to provide all the needs of the buyers of the market, some  delimitation of the market is necessary for the sake of efficiency and because of limited resources, this makes segmentation inevitable.

According to Edoga (2003: 86) marketing segmentation is the process of dividing the total market into relatively homogenous groups with similar product interest. This process according to marketers requires identifying factors that affect purchasing decision so that consumers can be grouped accordingly.

Adirika and Nnolim (1996: 39) see market segmentation as sub dividing of a heterogeneous market into homogenous subject or groups can conceivable be selected as a separate market target to be reached with a distinct marketing mix.

They further noted that in segmentation and consequently target market organizations endeavour to serve target markets they are able to satisfy efficiently and effectively and not just any group of buyers that seen to represent a sizeable market. Segmentation strategy is based on the promise that customers have different preferences which changes over time organizations including banking industry must make decisions on two areas of needs:

a)          What needs to serve, and

b)         Whose need to serve

Markets consist of buyers who differ in wants, purchasing power, and geographical location, buying practices. Any of the variable can be used to segment a market in to today’s marketing environment. We have group economy segmentation which is giving a better view of what marketing concept is all about. A company that decides to operate on a broad or differential market, whether consumer, industrial, reseller or government recognizes that it cannot serve all consumers in a given market.

Unamka and Ewurum (1995: 254) said that in employing this strategy a seller must recognize that his total heterogeneous market is made up of many smaller heterogeneous units.

Each of this smaller units have a different set of wants, motivation and other characteristics, with segmentation a seller is in a better position to spot and compare marketing opportunities and can make finer adjustments of his products and marketing appeals. Management can do a better marketing and make efficient and effective use of its resources by tailoring market programmes to individual market segment. It is because of the importance of segmentation that this study become necessary.