AN ASSESSMENT OF THE IMPACT OF MARKETING SEGMENTATION ON PRODUCTION PLANNING IN AN ORGARNISATION
This study is on an assessment of the marketing segmentation on production planning in organization. The total population for the study is 200 staff of Dangote group of company, Lagos. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, marketers, senior staffs and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
1.1 Background Of The Study
Market segmentation is a vital issue in marketing strategy. Therefore, marketing segmentation is the sub-dividing of a market into district subset of customers where any subsets may conceivably be selected as a target to be reaching with a district marketing mix. Kotler (2008) opines that market is a place or a geographical area where buyers and sellers meet and function, goods and services are offered for sale and transfer of ownership of title occur. The aggregate market is so huge that any single market needs to capture only a small portion of it to be very successful hence, the strategy employed. Limsitursti (2009) define marketing strategy can be viewed as the techniques, styles and way that a distributing, developing and selling of their products in order to attract the attention of its customers. It is interesting to note that, each major variable, for the entire firm’s offering requires careful research and studying before short and long term marketing plans can be evaluated. Therefore, the needs for this study goes a long way in re-organization that people as buyers and customers differ in their need, taste, family and cultural background, motivation lifestyle, and attitude towards products and purchases. It is relevance to the present time in that, this set of buyers should process distinguishing characteristics so that they may be used as marketing targets product are positioned to meet segment customer need, and a marketing mix appropriate to a particular segment may selected . Kotler (2008) in his view, market segmentation offers an efficient way for marketers to plan for attaining the desire goals and set objectives.
1.2 Statement Of The Problem
One of the obstacles that often lead to businesses failure is the inability of some marketing executives to formulate, plan their strategies, they operate without taking into cognizance the factors or the element both internal and external to the forms which they operate. This research work is primarily concerned with studying marketing company has given and how market are been segmented in order to improve. Its operational performance thereby providing the consumers with adequate products as to how, where, what or getting them.
1.3 Objective Of The Study
The importance of market segmentation in any business organization cannot be over emphasized. Every business organization is faced with the impact of selecting a suitable market of that will be follows to entire effective marketing penetration.
The following are the objectives of this study
- To determine the most effective segmentation strategies to used in an organization
- To identify the requirements for effective market segmentation
- To establish the bases of segmenting a answer market.
- To identify what the requirements and what customers wants in each market for its uses.
- To determine the benefits of market segmentation to the consumers and the organization at large.
- To solve the problems of segmenting a market
1.4 Research Hypotheses
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
- H0: the impact of market segmentation does not affect the overall performance of an organization.
H1: the impact of market segmentation does affect the overall performance of an organization.
- H02: there are no benefits of market segmentation to the consumers and the organization at large.
H2: there are benefits of market segmentation to the consumers and the organization at large.
1.5 Significance Of The Study
The study would serve as first hand information to those in production department of the relevance of segmenting a market for their various users of their product. The relational of every organization is to maximize profit and satisfying consumers through the society. Market segmentation will serve as eye openers to those in the marketing field of identify their potential consumers at wherever they reside. This study will guide and instruct consumers of what and how they produce their products and where they can meet them.
1.6 Scope And Limitation Of The Study
The scope of this study is narrowed to segmenting of consumers market on which emphasis is placed on a contemporary market and consumer market. This will also covers those in marketing department in the organization used as a case study. The researcher encounters some constrain which limited the scope of the study;
a) Availability Of Research Material:
The research material available to the researcher is insufficient, thereby limiting the study
The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
c) Organizational Privacy:
Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities
1.9 Definition Of Terms
The most requiring ones are hereby identified for the purpose of reader’s guidance and better understanding.
A market is an area which the aggregate of forces or auditions results in decision that satisfies demand by the transfer of good and service.
This refers to the performance of business activities that direct the flow of good and service form producer to consumer or user.
District identified part of market.
4. Market Segmentation:
Is the process of dividing the total heterogeneous markets for a production into several sub-markets or segments and each of which tens to homogenous tends homogenous in all significant aspect.
5. Homogeneous Preference:
Reveals a market where all the consumers have almost the same preference.
6. Differentiated Marketing:
A form goes after a market segment and developed the ideal offer and marketing mix.
7. Geographical Variables:
This has to do with region, nation, state, local government districts etc.
8. Demographic variables:
It has to do with age, sex and occupation etc.
9. Behavioral Variables:
This refers to the benefit, user, status, readiness and purchase occasion etc.
10. Psycholograhics Variables:
This is concerned with life style, personal, social status and motivation etc.
United wire products limited.
This means the monetary value of product or services.
This means all the possible distribution channels to flow in order to meet target.
The crucial techniques with which a company hopes to achieve its long run consumers and profit objectives in a peculiar competitive environment.
Its anything that com be offered to the market for acquisition, attention, used and consumption that may satisfied a need.
16. Marketing Strategy:
Set of policies that guides the company’s marketing objectives.
1.8 Organization Of The Study
This research work is organized in five chapters, for easy understanding, as follows
- Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
- Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
- Chapter three deals on the research design and methodology adopted in the study.
- Chapter four concentrate on the data collection and analysis and presentation of finding.
- Chapter five gives summary, conclusion, and recommendations made of the study
Summary, Conclusion And Recommendation
It is important to ascertain that the objective of this study was on an assessment of the marketing segmentation on production planning in organization. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges the marketing segmentation on production planning in organization
This study was on an assessment of the marketing segmentation on production planning in organization. Six objectives were raised which included:To determine the most effective segmentation strategies to used in an organization, to identify the requirements for effective market segmentation, to establish the bases of segmenting a answer market, to identify what the requirements and what customers wants in each market for its uses, to determine the benefits of market segmentation to the consumers and the organization at large, to solve the problems of segmenting a market. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Dangote group of company, Lagos. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, marketers, senior staffs and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
From the data analyzed above, it has been concluded that marketing segmentation has great significance in affecting the level of sales of an organization. The study further shows that organizations need to move from mass marketing to marketing segmentation to achieve an increase in sales. Once an organization can identify the market segment it wants to focus on all relevant marketing tools and resources can be used towards trying to meet the needs of that customer segment. However for segmentation to be effective and be utilized well certain elements like; being able to measure the segment; it should be substantial enough to serve and make enough profit; the segment should be easy access; the segments picked should be distinguishable; and finally effective strategies should be put in place that suits that segment.
The following recommendations have been made, that will assist organizations on how they can use effective marketing segmentation to increase the level of sales and market share:
- Organization need to get professional marketers that can enlighten and train their organization as a whole on marketing segmentation, and marketing strategies as a whole.
- Secondly, organizations need to determine who their target customers are, and make sure that the organizations resources are focused on the most viable and profitable of the target customers from that segment.
- Finally organizations need to understand that once these customer segments are consistently satisfied; then demand will increase, which intern means sales will increase, therefore an increase in revenue of that organization.