1.1 BACKGROUND OF STUDY
It is obvious that companies cannot connect all customer in large, broad or diverse market and as a result of the needs to divide market into groups of customer or segments with distinct needs and wants. It is therefore paramount for a company to identify which market segment to serve better. It is required that a keen understanding of consumer behavior and careful strategic thinking before the objective can be achieved. In an attempt to increase benefit to consumers, this will aid marketers to know how best to satisfy each category of these customers. Having selected a target market or markets, the organization then has to decide on what basis it will compete in the chosen segment or segments. How best can it combine its asset and competencies to create a distinctive offering in the market? Consumer will position a product in their mind in their relation to other products in the market based on their perception of the key attributes it contains. The overall intent is to identify groups of similar customers and potential customers, to prioritize the groups, to address, to understand their behavior and to respond with appropriate marketing strategy that satisfy the different performance of each chosen division and thereby improve the company revenue.
1.2 STATEMENT OF THE PROBLEM
The quest for most marketing decision a firm make is the selection of one or more market segment on which to focus. Firms are faced with the difficulties at identifying and selecting particular market target and satisfying them by blending the marketing mix elements. Some firms find it excruciating to develop market segmentation and brand positioning strategy and consider it as an expensive and time consuming exercise which can result into inadequate information to sum up as a research problem.
1.3 AIM AND OBJECTIVE OF THE STUDY
The main focus of this research work is to find out the effectiveness of market segmentation and brand positioning as marketing strategies that can be used for consumer satisfaction. Therefore, to achieve the aim of this research work. The following objectives need to be considered:
- To enumerate the importance of firms adopting the strategy of market segmentation in order to achieve organizations objective of consumer’s satisfaction and profitability.
- To examine the parameters for market segmentation and its relationship on consumers satisfaction.
- To establish the relevance of market segmentation and its effectiveness on brand positioning.
- To determine the degree to which the organization practices market segmentation.
- To highlight the limitation of the market segmentation.
1.4 SIGNIFICANCE OF THE STUDY
This research work is very significant and it will benefit the following beneficiaries:
1.4.1 Discipline: The discipline of marketing will benefit in this research work because it will serve as a reference for a similar research work. It will therefore serve as a secondary source of information to other researches.