The Effects of market segmentation on Organisational Performance in Microfinance Institutions in Buea
Department: Management
No of Pages: 57
Project Code: MGT6
References: Yes
Cost: 5,000XAF Cameroonian
: $15 for International students
ABSTRACT
The objective of this
study is to evaluate the effect of The Effects of market segmentation on
Organizational Performance in Microfinance Institutions in Buea. This study
employs a descriptive research design. Data for this study was Primary data and
the instrument used in collecting the data was questionnaire.
The study employs a
simple random sampling to collect data from 53 employees. The inferential
statistic was used as the method of analysing the data using multiple
regression. The findings of the study result established by ANOVA Statistic are
similar to that of the regression coefficient.
The result shows that
the P-value obtained (i.e. 0.001) for the regression coefficient is also lower
than the alpha level of significance of 5% specified in SPSS for this analysis
therefore, thus, it can be inferred from this result, that the ANOVA Statistic
is similar to that of the regression coefficient.
Thus, the Alternate
Hypothesis will be accepted while the Null Hypothesis will be rejected, which
means that there is significant relationship between microfinances market
segmentation on the performance of microfinances industry in Buea.
CHAPTER
ONE
INTRODUCTION
1.1
Back Ground of the Study
Marketing has over the
years advanced from various concepts and philosophies, which include the
production concept, product concepts and selling concepts. The marketing
concept is viewed from the customer’s orientation philosophy which seeks to
identify unsatisfied consumer needs and wants, and this develops goods and services
tailored towards filling up and satisfying such needs though not all
organization practices this concept but successful firms embark on it.
Given the intense and
growing competition, the global quest for profitable sites amongst marketers of
goods and services, it has become mandatory for firms to adopt strategies in
order to excel, grow and remain in the market in order to achieve acting
organizational objectives. (Minhas &Jacobs, (2005)
Marketing strategies are
developed from marketing objectives and overall organizational objectives.
Marketing strategies includes the marketing objective of increase in sales,
higher market shares and growth market penetration awareness ovation to mention
a few. In order to achieve these goals and objectives, marketing evaluation and
strategies are developed and implemented.
The increasing world
population has resulted in consumers becoming numerous and diverse in the
buying requirements needs and characteristics since firms cannot effectively
serve all of them in a broad market. It is inevitable to identify those parts
of the market that are profitable and can be serve effectively give the
available organizational resources and capabilities, thus this calls for the
adoption of effective and segmentation of the markets.
Marketing effect and
segmentation is always a customer’s oriented philosophy this consistent with
the marketing concept. Market segmentation is the process of subdividing a
market into distinct and meaningful sub set of customer who require a tailored
called mat during marketing program to satisfy their needs.
According to Wilkie
& Cohen (2006), many firms in the past adopted mass marketing concept as
strategies for sales turnover by embarking on mass production, mass
distribution and mass promotion of single brand of products to all buyers.
The argument for this
strategy was that it crates the largest potentials markets which leads to the
lowest cost, both production cost and overhead cost and the marketing costs
which in turn results to lower pricks or higher margin.
But in this age of
intense competition, proliferation of marketing programs, functions and greater
customer advancement in education and awareness firms no longer practice the
concept of “one size fit all” marketing. Hiam & Schewe (2010)
Market segmentation goes
beyond product design consideration, as it extend to price, promotion
,distribution variable and having an overall knowledge of each segment needs in
order to develop matching marketing mix.
Firm do not go into
segmentation in marketing until a thorough study of customer’s behavior in the
market is conducted through study of customer effective of marketing research
for better understanding of their distinct and homogeneous characteristics is
required (Assael & Roscoe, 2006 ; Blattberg & Sen, (2015); Wind,
(2002). This ensures grouping together customers of similar requirement and
characteristics.
Essentially, it consists
of large identifiable group with similar wants, purchasing habits, geographical
location and buying requirement thus market segmentation is an approach that
should be executed by firms for success enhancement. To a large extent, it is a
process of dividing total heterogonous market for goods and services into
several segments each of which tends to be homogeneous in all significant
aspect.
Management thus select
one or more of these market segment as the organization target market(s) and
based on the understanding of their needs and wants, a matching marketing mix
is envisaged, developed and directed towards satisfying them at a profit most
importantly, segmentation enables the form to its marketing efforts and
resources on the most profitable target market, in order to complete efficient
by in one or two segments.
To be precise it
involves a lot of dimension or approaches in terms of segmenting the market
such as the geographic, demographic, geographic behavioristic and psychographic
variables in dividing the total market into different groups with similarities
between them. Increasing sales cannot be achieved without effective evolution
of segmentation of marketing as a strategy.
Because of the prospect
involved in adopting market segmentation, firm desiring to achieve success
embark on dividing total market into segments that can be reached and satisfied
efficiently and at a profit in consideration of the role market segmentation
plays in increasing sales volume.
1.2
Statement of the Problem
The quest for increasing
profitable state volume is every organization. Both markets of services and
tangible seek to enhance profit and sales turnover and the objectives of
profitability can only be achieved when firms properly understands and apply
effective and markets segmentation strategy.
Firms are also faced
with difficulty of identifying and selecting particular market target and
satisfying them by blending the marketing mix elements thus market segmentation
recognizes that every market is made up of distinguishable segments consisting
of buyers with different needs, the task of clearly understanding consumer
needs and wants, identifying various homogenous customers’ characteristics
according to an outlined dimension in order to group them together adequately
and to effectively develop marketing mix to match these characteristics and
buying requirement.
All poses fundamental
marketing problems to firms. Marketing segmentation is one among the various
strategies used in evaluating of marketing programs. There by segmenting
markets into subsets with aim of satisfying customers groups and equally
increase sale volume and profitability for the total organization and the
stakeholders is an objective and goal of every business that practices the
marketing concept.
Most organization
encounter the problem of determining the appropriate pricing, promotional and
distribution strategy to adopt in satisfying their numerous customers. Though
some firms finds it excruciating to marketing segmentation strategy, due to
their inclination of the strategy as an expensive and time consuming exercise.
This is because of
inadequate information on its importance to customer satisfaction. The
importance or not of market segmentation as a strategy for increasing sales
volume has become on research problem.
1.3
Research questions
The main research
question;
- What effect of market segmentation affects the performance of microfinance institutions (MFI) in Buea municipality?
The specific research
questions;
- How do microfinance institutions (MFI) in Buea municipality segment their market?
- How does market segmentation affect the performance of microfinance institutions (MFI) in Buea municipality?
- What are the relevant characteristics of market segmentation of microfinance institutions (MFI) in Buea municipality for competitive advantage?
1.4
Objectives of the study
The main objective;
- Accessing the effects of marketing segmentation on the performance of microfinance institutions in Buea Municipality
The
specific objectives;
- To examine how microfinance institutions (MFI) in Buea municipality segment their market.
- Determine how market segmentation affects the performance of microfinance institutions (MFI) in Buea municipality.
- To establish the relevant consumer characteristics necessary for segmentation of microfinance institutions (MFI) in Buea municipality.
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