1.0 Introduction
1.1 Background of the Study
Producers and marketers of goods and services appreciate the fact that not all individuals, households or companies use or consume goods in the same way or the same rate. Different consumption patterns exist between people, individuals having different demographic and psychological characteristics of consuming product that is why there is need for market segmentation and positioning on the company performances.
In reality, due to these variations, a marketer does not find it profitable to try to make every individual consumers of their respective product. What the marketers do is to have a good description of the individuals, household or companies that are regular users of their product and direct the market offerings, communication efforts and distributions activities to them.
In a competitive environment to day, it is neither possible nor profitable for a marketer to try to sell to all consumers. A marketer can never satisfy the whole world. In an effort to sell to one type of consumer, the others will be alienated since all of us can hardly express the same choice at any point in time for example; a product that is promoted as one that is cheaper than competitor's brand will attract customers who favors cheapness and loss customers who seek satisfaction from buying more expensive (and presumable) better brands.
In marketing these processes taken is know a “market segmentation” market segmentation is the process of dividing the heterogeneous market into smaller customer division's having certain relatively homogenously characteristics that can be satisfied by the firm. Market segmentation is also a process by which an organization attempts to match a total marketing programmed to the unique manner in which one more customer groups behave in the market place.
This purpose is to identify common characteristics that determine purchasing behaviors.
The concepts involving segmentation and poisoning are perhaps best explained through an illustration of a case. The example used in a biscuit production. Ugo and company limited is in business every one irrespective of age, sex and other characteristics. Competition is how ever becoming very intense in the biscuit market.
Your boss has, therefore directed you to research the market with a view to introduce a specialist brand. Therefore, market segmentation and product positioning can enable a firm to select a target for which it has a competitive advantage.
Marketing strategies or action plan for accomplishing objective, and then are thought in terms of a particular market. In segmentation of textbooks as a product, it should be noted that the consumer of textbooks buys with different categories of buyers of textbook according to the users, needs and status of these buyers based on the concept of segmentation in the publishing firm which are based upon the positioning.
- Consumer are different
- Different consumers are related to difference in the market demand and buying motives
- Segmentation of consumers can be possible because segments of consumers can be isolated within the over all market.
The benefits of market segmentation and positioning are numerous and includes that the strength and weakness of any kind.
1.2 Statement of the Problem
A great number of problems arise in the application of market segmentation and poisoning. To segment a market does not seem difficulty but to put the description into practice is not easy. Some of the problems however are particularly about market segmentation and positioning in a textbook publishing firm. Some of these problems are stated in the work.
- The inability of a firm to classify their customers according to its relatively homogeneity.
- Inadequate selection of the type of product to based on.
- Lack of knowledge about the chosen line of the business.
- Inability to carry on marketing survey and how effective their strategy is and how customers respond to that product.
- 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 Purpose of the Study
Like the marketing philosophy pointed out, every marketing oriented firm or organization duty of not only making sales for the company but for the identification of customers need and planning to satisfy these needs at a project 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 find how effective such strategy and offering are meeting the objectives of the organization that is applying them. It is in the light of this that this work outlines the following:
- To know what market segmentation and positioning is all about as it involves the companies under study.
- To know if actually the companies or organization applies market segmentation and positioning in the sales of its product.
- To know how company's is structured, this could be geographical, regionally or customers structured and if it can determine or know its target customers.
- The other objective of the study is also to know the method or strategy the company actually uses in performing its functions.
- Also, the effectiveness of market segmentation goals as well as host of others.
1.4 Research Questions
- Why is it necessary to segment and position
- What are the requirement for effective segmentation
- Does market segmentation and positioning help a firm in achieving it sales objective
- On what bases can market be segmented and positioned
- Why is it necessary to segment the market
1.5 Significance of the Study
Segmentation of market and positioning is very significant because many companies and organization have had some problems to perform more profitable because of lack of ideas for segmentation of market and the positioning. This work would provide marketing or sales managers of companies and organization in the state and the country at large with the useful tools for designing and accessing the efficacy of their market segmentation and programme.
1.6 Scope of the Study
The study covers all aspects of market segmentation and positing to achieve organizational goals and objectives as a whole. The population of the study is all publishing firms of a country. However, due to time and financial constraints, a survey of selected firms in Owerri will be conducted.
Therefore, the study sample has been narrowed to seven publishing firms in Owerri which the research believes are a representative of the entire population.
1.7 Limitation of the Study
Limitation is anything that can stop you of doing something and also can act as a barrier to the success of completing of your project work. This research work was hampered by the following factors:
(A) Finance:
Finance has always been a barrier toward the completing of any project work. As a result of the economic hardship, researcher did not have enough capital to carry out the research.
(B) Time Factor:
The time given to the researcher for the completion of this work was too short and the researcher have to put extra effort for the completing of the project and keep others thing behind.
(C) Unwillingness of Respondents:
To supply the necessary information needed was also a limitation. They are difficulty respondents encountered in getting needed information.
1.8 Definition of Terms
Market:
Market is a set of people and organizations who are actual and potential buyers of profit and services.
Market Segmentation: Market segmentation can be defined as the process of breaking down the naturally heterogeneous market into component meaningful subgroup. Each of the resultant subgroups is a market segment.
Target Market:
Market targeting is the selection of segment of the industrial markets to be served with firms resources.
Positioning:
This act of establishing a viable competitive positioning of the firm and its offering on the selected target market.
Market Positioning:
This is a process of finding a position in the market for the product item under consideration along with appropriate marketing mix.
Marketing Mix:
This are controllable variables available to the marketing executive for his operation in the market place which is the first group of marketing mix and it is called the tradinal 4p's price, place, product and promotion.
Market Concept:
Market concept which hinges on satisfying the needs and want of the target market better than competitors at a profit is rarely practiced in the services industry in the past.
