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A

MARKET SURVEY REPORT ON

“MARKET SEGMENTATION AS AN EFFICIENT TOOL


OF ACHIEVING INCREASED MARKET SHARE”

Submitted in partial fulfillment of the requirement for the


award of degree of

BACHELOR OF COMMERECE (GENERAL)


SESSION (2023-2024)

SUBMITTED TO: - SUBMITTED BY: -

Dr. Charu Dutta Name: Mohd Junaid

(Asst. Professor) Class: B.com 5th semester

Roll No: 21024049

IFTM UNIVERSITY, MORADABAD

i
STUDENT’S DECLARATION

I Roll No. is a full-time

bona fide student of IFTM University, Moradabad. I hereby certify that this field

project work carried out by me and the report submitted in partial fulfillment of the

requirements of the programme is an original work of mine under the guidance of the

faculty mentor and is not based or reproduced from

any existing work of any other person or on any earlier work undertaken at any

other time or for any other purpose, and has not been submitted anywhere else at any

time.

(Student's Signature)

Date:

(Faculty Mentor's Signature)

Date:

ii
ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly


contributed in the development of this work and who influenced my thinking,
behavior, and acts during the course of study and I would like to thank the almighty.

I am thankful to Prof. Nisha Agarwal, Director, School of Business


Management for her guidance, support, and motivation provided to me to complete
this work.

I also extend my sincere appreciation to Dr. Charu Dutta who provided his
/ her valuable suggestions and precious time in accomplishing my project report.

Lastly, I would like to thank my parents for their moral support and my friends
with whom I shared my day-to-day experiences and received suggestions that
improved the quality of my work.

Mohd Junaid

iii
TABLE OF CONTENTS

Sr. No. CONTENTS Page No.

TITLE i

STUDENT‘S DECLARATION ii

ACKNOWLEDGEMENT iii

1. INTRODUCTION 1-4

2. COMPANY PROFILE 5-7

3. OBJECTIVE OF THE STUDY 8-9

4. SCOPE OF THE STUDY 10-11

5. RESEARCH METHODOLOGY 12-16

6. DATA ANALYSIS 17-26

7. RESULTs AND FINDINGS 27-27

8. CONCLUSION 28-30

9. SUGGESTIONS AND RECOMMENDATIONS 31-31

10. REFERENCES 32-33

11. ANNEXURE 34-37

iv
CHAPTER 01
INTRODUCTION
Target marketing involves the identification of the most profitable market segments.
Therefore, businesses may decide to focus on just one or a few of these segments. They
may develop products or services to satisfy each selected segment. Such a target
marketing strategy differs from mass marketing (where a company may decide to
produce and distribute one product to all consumers) or from product differentiation
(where a company offers a variety of products to a large market). Marketers have been
moving away from mass marketing endeavours, as they are increasingly targeting
smaller segments with customised marketing programmes. In this light, this chapter
sheds light on the process of market segmentation. It clarifies how businesses could
select the most profitable segments as they employ market coverage and positioning
strategies to attract them.
The Market Segment
A market segment is a group of individuals, groups or organisations who may share the
same interests, traits and characteristics. The consumer segments may have similar
needs, wants and expectations. Therefore, businesses should ask themselves which
segments should they serve? To answer this question, the businesses must determine the
most appropriate ways to distinguish and to differentiate their segments. Once the
segments have been identified they must customise their offerings to satisfy each and
every one of them.
Market Segmentation
Market segmentation is the actual process of identifying segments of the market and the
process of dividing a broad customer base into sub-groups of consumers consisting of
existing and prospective customers. Market segmentation is a consumer-oriented process
and can be applied to almost any type of market. In dividing or segmenting markets,
researchers typically look for shared characteristics such as common needs, common
interests, similar lifestyles or even similar demographic profiles. So, market
segmentation assumes that different segments require different marketing programmes,
as diverse customers are usually targeted through different offers, prices, promotions,
distributions or some combination of marketing variables. For example, Southwest
5
Airlines‘ single-minded focus on the short-haul, point-to-point, major-city routes,
allowed them to prosper as their competitors floundered. The airline‘s focus on specific
segments allowed them to do a better job of deciding what their target segment really
valued (for example, convenience, low price, on-time departures and arrivals, among
other things).
Once the customer segments have been identified and profiled, the marketer must decide
which segment to target. Diverse customers will have different expectations. For
instance, there may be customers who will value a differentiated, high quality service,
whilst others may be more price-sensitive. Notwithstanding, not all firms have the
resources to serve all customers in an adequate manner. Trying to serve the entire market
could be a recipe for disaster. The overall aim of segmentation is to identify high-yield
segments. These are likely to be the most profitable groups of customers, or may hold
potential for growth. Hence, the most lucrative segments will usually become target
markets. In the tourism industry, the business traveller is usually considered as an
attractive segment. However, there are different types of business travellers:
 The Hard Money Travellers (or the independent business travellers), these
include the business individuals travelling at their own expense;
 The Soft Money Travellers (or corporate business travellers), these include
business individuals travelling on an expense account;
 The Medium Money Travellers (or the conference or incentive business
travellers), these include business individuals travelling within a group;
 The Interim Travellers, these include business travellers who are combining
personal travel with a business trip;
 The Frequent Short Travellers, these include business travellers who consistently
fly a short-haul route;
 The Periodic Travellers, these include sales persons who make a round of stops
on a steady itinerary.
However, these six groups are said to be only part of some other travel groupings which
have often been identified as principal sources of revenue for the tourism industry.
Travel and tourism marketers must analyse these various segments. They must then
select at least one segment and decide how to service them, in terms of fare prices,
facilities, frequencies and special features.
The Benefits of Segmentation
6
By dividing the market into segments, marketing managers can acquire a better
understanding of the needs and wants of customers. This enables them to customise or to
‗tailor‘ the company‘s marketing activities more accurately and responsibly to the
individual customers‘ likings. Segmentation marketing supports businesses in meeting
and exceeding their customers‘ requirements. It may also allow them to evaluate the
competitors‘ strengths and weaknesses. This way, they could discover business
opportunities in markets which were not served well.
Customer segmentation enables marketers to adopt a more systematic approach when
planning ahead for the future. This leads to better exploitation of marketing resources,
resulting in the development of a more finely-tuned marketing programme. For example,
the businesses‘ integrated marketing communications can be better organised, as targeted
advertising (for example native advertising) and promotional activities can be directed at
individual customers. For example, the emergence of data-driven, digital technologies
such as sensor analytics, geo-location and social data-capture could track the users‘
movements and other real-time phenomena. These disruptive technologies are
increasingly being used by tourism businesses as they add value to customer-centric
marketing endeavours (Schegg & Stangl, 2017; Camilleri, 2016).
Segmentation Variables
Having defined segmentation and discussed about its benefits, the next question to
address is; how could businesses segment their markets? The traditional variables that
may be used for market segmentation can be grouped into five main categories: (i)
Demographic; (ii) Geographic (iii) Psychographic; (iv) Behavioural and / or (v) Product-
Related Factors.
Demographic Segmentation
Demographic segmentation involves dividing the market into groups that are identifiable
in terms of physical and factual data. The demographic variables may include; age,
gender, income, occupation, marital status, family size, race, religion and nationality.
These segmentation methods are a popular way of segmenting the customer markets, as
the demographic variables are relatively easy to measure.
For example, the age range for business travellers may usually span from their late
twenties to their mid-fifties. According to Skift (2017), younger employees are travelling
for business purposes and their buying habits are completely different than their older
counterparts. On average, millennials took 7.4 business trips in the last year, compared to
7
6.4 for Generation Xers and 6.3 for baby boomers. Younger travellers are less likely to
book air travel based on loyalty programme perks. They are more likely to book their
flight according to the airline service and the customer experience they offer. Moreover,
young travellers are more likely to use room share services like Airbnb, than other
segments (Skift, 2017). However, for the time being, major hotel brands are not under
any serious threat.
At the same time, Uber and other ridesharing services are becoming mainstream across
all age groups, as they may be cheaper than taxis (Pew Research, 2016). The age range in
the leisure market is a very broad one and quite different to that in the business market.
Children particularly can play an important role in leisure travel, as they travel abroad on
holidays with their families. Young people in their early to mid-twenties too are prepared
to spend their disposable income on travel before they take on the responsibilities of
family life. At the other end of the scale, we have those who are retired from work, are in
a relatively good health and in good financial position which allows them to travel.
In the past, middle-aged males dominated the business travel market. However, recently,
the advertising and promotion of airline services have increasingly targeted female
business travellers. This market controls 60% of U.S. wealth and influences 85% of
purchasing decisions (Skift, 2014). The female gender is high-tech, connected, and
social. They represent 58% of online sales (Skift, 2014). To get maintain their
competitive edge, travel brands must start focusing their campaigns to better target
women. The leisure travel market is far more balanced in terms of gender. In fact, in
older categories of leisure travellers, that is over the age of sixty, women outnumber men
due to their longer life expectancy (Boston Globe, 2016).
The ability to travel for leisure purposes greatly depends on an individual‘s income.
Leisure travel is a luxury which may be foregone when times are financially difficult.
Generally, as personal income rises, the demand for air travel increases. However, should
there be a recession, money belts are tightened, and less leisure trips may be taken. This
is an example of a concept known as income elasticity (this topic will be discussed in
Chapter 8). Income elasticity can be defined as the relationship between changes in
consumers‘ income level and the demand for a particular item.

8
CHAPTER 02
COMPANY PROFILE
Water scooters—as they were originally termed—were first developed in the United
Kingdom and Europe in the mid-1950s, with models such as the British 200cc propeller-
driven Vincent Amanda, and the German Wave Roller. Two thousand Vincent Amandas
were exported to Australia, Asia, Europe and the United States.
The Sea Skimmer was introduced in 1961 as a highly maneuverable version of a
propelled surfboard. It was 1.5m 15.24cm long, powered by an inboard/outboard motor
and reached speeds up to 40Km/h. The rider lay on the boat, controlling the speed with
hand throttles and using the feet as rudders.
Originally manufactured in Kansas City, operations moved to Boynton, Florida in 1962,
and changed the name to Aqua-Skimmer. Aqua-Skimmer ceased operations in 1962 and
sold its inventory to the military. Renamed Aqua Dart (Aqua Dart INC), the Sea
Skimmer, Aqua Skimmer, Aqua Dart was modified for military requirements, and saw
service in 1962 river reconnaissance missions in Vietnam and other military missions
until the 1970s.

Industry Automobiles

Founded Japan (October 1946, incorporated 24 September 1948

Soichiro Honda
Founders
Headquarters Minato, Tokyo, Japan

Area served Worldwide

Tōkai Seiki was placed under the control of the Ministry of Commerce and
Industry (called the Ministry of Munitions after 1943) at the start of World War II, and
Soichiro Honda was demoted from president to senior managing director after Toyota
took a 40% stake in the company Honda also aided the war effort by assisting other
companies in automating the production of military aircraft propellers.
9
The relationships Honda cultivated with personnel at Toyota, Nakajima Aircraft
Company and the Imperial Japanese Navy would be instrumental in the postwar
period.[12] A US B-29 bomber attack destroyed Tōkai Seiki's Yamashita plant in 1944,
and the Itawa plant collapsed on 13 January 1945 Mikawa earthquake. Soichiro Honda
sold the salvageable remains of the company to Toyota after the war for ¥450,000 and
used the proceeds to found the Honda Technical Research Institute in October 1946.
With a staff of 12 men working in a 16 m2 (170 sq ft) shack, they built and sold
improvised motorized bicycles, using a supply of 500 two-stroke 50 cc Tohatsu war
surplus radio generator engines. When the engines ran out, Honda began building their
own copy of the Tohatsu engine, and supplying these to customers to attach to their
bicycles. This was the Honda A-Type, nicknamed the Bata Bata for the sound the engine
made. In 1949, the Honda Technical Research Institute was liquidated for ¥1,000,000, or
about US$5,000 today; these funds were used to incorporate Honda Motor Co., Ltd. At
about the same time Honda hired engineer Kihachiro Kawashima, and Takeo
Fujisawa who provided indispensable business and marketing expertise to complement
Soichiro Honda's technical bent. The close partnership between Soichiro Honda and
Fujisawa lasted until they stepped down together in October 1973

10
CHAPTER 03
OBJECTIVE OF THE STUDY
 To determine the efficiency of market segmentation in increasing market share.
 To determine the usefulness of market segmentation to a company.
 To determine the significance of market share
 To differentiate the different levels of market segmentation
 To ascertain the requirements of market segmentation.
 To find the extent to which organization adopt market segmentation.

11
CHAPTER 04
RESEARCH QUESTIONS
This study aims at giving answer to some of the questions below:
1. Can segmentation help to achieve an organization goal?
2. Is market segmentation an efficiency toll of achieving an increased market share?
3. In competitive economy, can market share determine the supremacy of
organization?
4. Could the research on segmentation of the market increase the standard of the
organization?
5. Do you think that market segmentation has an effect on organization revenue?

12
CHAPTER 05
SCOPE AND IMPORTANCE OF THE STUDY

Scope
 Markets are diverse, with consumers having different preferences, behaviors, and
needs. Market segmentation helps identify and understand these variations.
 Companies often have limited resources. Market segmentation allows businesses
to allocate their resources more efficiently by focusing on the segments with the
highest potential for growth and profitability.
 Different segments respond to various marketing messages and channels.
Segmentation enables companies to develop customized marketing strategies for
each segment.
 Segmentation identifies unmet needs within specific customer groups. This
information can drive product to meet those needs.
 Understanding the preferences of different segments allows businesses to deliver
products and services that align with customer expectations.

Importance
 This targeted approach prevents wasted resources on marketing efforts that may
not be as effective for groups, ultimately improving the return on investment
(ROI).
 By creating products that address the unique requirements of different segments,
companies can gain a competitive advantage and attract customers who may be
underserved by existing offerings.
 Satisfied customers are more likely to become repeat customers and advocates for
the brand, contributing to increased market share through positive word-of-mouth
and customer retention.
 By focusing on specific segments and tailoring offerings to their needs,
businesses can differentiate themselves from competitors and gain a competitive
advantage in the marketplace.

13
CHAPTER 06
LITERATURE REVIEW
The Mosaic model The Mosaic model is a segmentation system developed by Experian
and exists in many countries worldwide. It is based on the geodemographic values. The
geodemographic value combines the variables from the geographic segmentation and the
demographic segmentation and thereby the geodemographic segmentation combines the
study of the target customers with where they live. The model divides people into broad
groups and within these broad groups the target consumers are divided into smaller
groups. The Mosaic model is one of the most common used models when segmenting
according to the geodemographic segmentation.
Expectation confirmation theory Expectations-confirmation theory posits that
expectations, coupled with perceived performance, lead to post-purchase satisfaction.
This effect is mediated through positive or negative disconfirmation between
expectations and performance. If a product outperforms expectations (negative
disconfirmation) the consumer is likely to be dissatisfied (Oliver, 1980; Spreng et al.
1996). The four main constructs in the model are: expectations, performance,
disconfirmation, and satisfaction. Expectations reflect anticipated behavior (Churchill
and Suprenant, 1982). They are predictive, indicating expected product attributes at some
point in the future (Spreng et al. 1996). Expectations serve as the comparison standard in
ECT – what consumers use to evaluate performance and form a disconfirmation
judgment (Halstead, 1999). Disconfirmation is hypothesized to affect satisfaction, with
positive disconfirmation leading to satisfaction and negative disconfirmation leading to
dissatisfaction.
A major debate within the marketing literature concerns the nature of the effect of
disconfirmation on satisfaction. The root of the problem lies in the definition of
predictive expectations as the comparison standard for perceived performance. In such
case, the confirmation of negative expectations is not likely to lead to satisfaction (Santos
and Boote 2003). To overcome this problem, researchers have proposed other
comparison standards such as desires, ideals, equity, or past product and brand
experience
Empirical review Market segmentation is customer-oriented philosophy. It is a technique
of recognizing effectively the differences among
14 customers. It is well-tested system for
guiding marketing strategy. It enables banking sector to offer quality services and
results-based services to embrace segmentation based on benefit sought. The
benchmarking of competitors should not be overlooked in order to retain existing
customers and attract potential ones. Weinstein (2002) advocates that service providers
attempt to know who the better customers are through the use of demographic,
geographic, psychographic and behavioral research. In doing so a profile of the ―typical
user‖ is determined. Such information then becomes very useful in the subsequent
marketing effort. To retain customers and to gain a larger share of their business, service
providers need to develop better understanding of the customers‘ purchasing pattern.
Increasing a company‘s share of customers‘ business can ultimately have a dramatic
impact on
Market share and profitability. In evaluating customers‘ usage and loyalty pattern,
recency, frequency and monetary value (RFM) analysis can be a useful tool. Recency
refers to the last service encounter, frequency looks at how often the customer
contact/company experiences occur, and monetary value assesses the amount that is
spent, invested or committed by the customers for the firm‘s product and service Market
segmentation comes about as a result of the study that all potential users of a product are
not alike. They are different in the consumption behaviors, in their lifestyles, and in
patterns of buying and using. As a result, the same general appeal will not interest all
prospects and satisfy every customer's needs. Therefore, in order to enhance customers'
satisfaction, it is necessary to divide the generic market into segments.
Different marketing strategies and tactics will be developed accordingly by properly
considering both the differences among potential consumers and that the firm's
objectives and resources. The psychological variables obtained are of two major types of
customer, namely personality profiles and lifestyle profiles (psychographics). When
geographic and demographic attributes do not supply an adequate view of the customer
behavior, psychological profiles are often used as an extra source of information. While
the usual geographical and demographical bases (sex, age, income etc.) provide the
marketer with openness to customer segments, the psychological variables provide
additional information about these and improve knowledge of the indulgent behavior of
present and potential target markets (Gunter and Furnham, 1992: 26)
Segmentation Variables Performing market segmentation requires the selection of a basis
for segmentation (the dependent variable) as well as descriptors (the independent
15
variables) of the various segments (Wind, 1978). Usually, multiple segmentation
variables are used in combination to achieve smaller, better-defined target groups. The
most useful techniques have often resulted from practical successes, not as much from
theoretical studies. Marketers must identify which of them provide the best view of the
market structure currently in question.
Geographic segmentation Dividing a market into geographic segments is one of the
oldest ways to perform market segmentation. The underlying assumption is that people
have different needs and wants based on where they live. Commonly, a geographical
segmentation scheme divides a market into units such as nations, states, regions,
counties, cities or neighborhoods. A company can decide to operate in only a few of the
segments, or in all of them but customize their offering according to the geographical
differences in needs and wants said by Kotler & Armstrong (2003). Geographic
segmentation is most commonly used by multi-national industrial and high-tech
businesses, which alter their marketing mix based on the differing needs of consumers in
each of the geographic segments they wish to serve. Simple geographic segmentation is
usually an easy, manageable and comparatively inexpensive way to handle a market
especially an international one. The practicality of geographical differentiation on a
multi-national scale in the banking industry has also been criticized by Kotler &
Armstrong (2003) and McDonald & Dunbar (2004).
Demographic segmentation Another widely recognized consumer market segmentation
scheme makes use of demographics. Demographic segmentation is defined as the
division of a market into groups based on demographic variables such as age, gender,
family size, family life cycle, income, occupation, education, religion, race, generation
and nationality by Kotler &Armstrong (2003). Demographics have gained much
popularity because they are easily measured and often vary closely with consumer needs
and usage rates. The complexity and costs of the scheme also stay relatively low.
Demographic variables must, however, be handled carefully. Critique from Cahill (2006)
points out that although there generally are behavioral differences between e.g. men and
women or teenagers and elders, they are at best displayed by only a large majority of the
group. Consequently, the remaining subset whose behavior does not into the framework
of the demographic group (e.g. youngsters acting like elders, or vice versa) might not
enjoy being reminded that they do not it with their peers. Reaching the desired segment
without offending anyone belonging or not-belonging to the target group can thus prove
16
to be challenging task. Demographic segmentation has also been criticized, together with
geographical segmentation, of the approach of predetermining how the market divides
into segments (McDonald & Dunbar, 2004). In reality, customers do not slot themselves
into any categories determined beforehand.
Customer retention ability is defined as the ability to retain its customers based on the
assessment of product or service quality. Thus performance determines how loyal its
customers are and it is normally measured in percentage of long term customers. This is
very important because satisfied retained customers tend to lower cost (cost less), make
valuable reference to new potential customers to increase market share, and spend more.
However, industries can only perform well and satisfy their customers when there is
proper market segmentation. Industries ability to retain its customer‘s shows how
satisfied their customers and brand loyalties are. Market segmentation can help to
efficiently match their limited resources to target the market requirements and resource
to reduce cost. It paves way to embrace consumer requirement that tends to increase
customer satisfaction and retention. Industries can improve their customer retention
through segmentation practices. Some scholars also link customer retention and
performance to the company‘s value maximization in the stock market .The approach is
based on the interrelationship that exist between operational efficiencies changes, the
prices of the company‘s stock in the market, exchange or change rate and the general
economic situation.

17
CHAPTER 07
RESEARCH METHODOLOGY
Introduction
The population of the study consists of ten (10) Distributors of both Camery and Honda
automobiles. 100 employees from Camery Distributors; and 100 from Honda
Distributors were given questionnaires in relation to marketing segmentation. The main
sources of data were the questionnaire and the review of relevant textbooks, journals and
internet search. The questionnaire was structured to elicit information from the
respondents. While the review of the documents aid the structuring of the questionnaires.
The information obtained from the respondents will be analysed using descriptive
techniques and simple percentages.
Research Design

The research design used was descriptive survey with the intention of establishing the
who, what, where and how much. Descriptive research is used to describe marketing
problems (Saunders & Lewis, 2008). This study was mapped out on similar concern.
Data Analysis Techniques

The questionnaires was edited for completeness and consistency then coded for analysis.
The coded responses were analyzed using descriptive statistics. This uses such statistics
as the mean, mode, variance and standard deviations to review the general trend of the
responses. Mean scores and standard deviations were used to depict the relative influence
of particular practices and variations among respondents perception on the effect of these
practices on customer satisfaction. Frequencies and percentages were used to describe
the most pre-dominant practices.
The research methodology adopted for this paper can be divided into three parts:

a. Secondary research through various literatures consisting of published articles and


research papers.
b. Preparing a questionnaire survey, this consisted of both qualitative and quantitative
responses.
c. Analysis of the responses obtained from the above questionnaire and gaining various
inferences and conclusions from it, based on the literature presented.
18
The data collected for the paper was primarily through online resources and the survey
respondents consisted of people from various academic and professional backgrounds-
college students, university academics, entrepreneurs, and marketing as well as
operations managers. The Survey Questionnaire consisted of a combination of
quantitative (based on Likert Scale) and qualitative questions

(Multiple choice-type) the data collection was done through snowball and convenience
sampling method. Respondents were given liberty t share their names and email
addresses on their own accord- guaranteeing their privacy but making it necessary to
reveal whether they were students/industry professionals or other professionals.

19
CHAPTER 09
DATA ANALYSIS
Through the questionnaires administered to customers of both the Camery and Honda
car brand, these were the data obtained;
90% are male, and just 10% are female. The study shows that 67% of the
respondents are within the age bracket of 25 – 35 years; 21% are in the age bracket of
35 – 45 years; while 12% are less than 25 years of age.
This indicates that majority of those in the automobile business are more of the younger
generation.
In terms of academic qualification, 79% of the respondents have a secondary
school qualification, while only 21% have a first degree qualification or a higher
national diploma qualification.

Table 1
From the options listed below which customer segment do you focus on when trying to
market your automobiles?
Answer Options Camery (%) Honda (%)

Individual Women 5 8

Individual Men 17 78

Private Companies 11 0

Government Para- status 67 14

100 100

From the analysis made above it can be concluded that Camery automobiles
target customers from Government Para-status, which has the highest percentage of 67%
compared to Honda brand distributors who mainly focus on men as their target customer
with a percentage of 78%.

20
Table 2
From the options listed below which customer segment would you say buys from your
dealership more frequently?

Answer Options Camery (%) Honda (%)

Men of Middle Class 6 37

Women of Middle Class 3 11

Government Para-status 71 23

Men of Upper Class 10 17

Private Companies 12 12

100 100

The table shows us that Government Para-status tend to patronize their


dealership much more than any other category of customers with a percentage of 71%,
followed by Private companies with only 12%. This shows that organizations in general
are their loyal customers. On the other hand categories of customers that patronize
Honda brands are the men of middle class with 37% followed by Government Para-
status with 23%.

21
Table 3
Approximately how many cars would you say your dealership has sold in the year 2010?
Answer Options Camery (%) Honda (%)

20 – 50 Cars 91 15

51 – 80 Cars 9 27

81 – 100 Cars 0 48

110 – 140 Cars 0 10

141 – 170 Cars 0 0

100 100

From the table above it is obvious that Camery automobiles don‘t tend to have a
high number of sales in the year 2010. Most of the Camery distributors being analyzed
have only sold 20 – 50 cars (91%) and very few of them have sold between 51 – 80 cars.
Some of the Honda dealers have been able to sell more than double (81 – 100 cars) of
what most Camery dealers have been able to sell.

22
Table 4

What options listed below would you say determines why customers buy your automobile
brand?
Answer Options Camery (%) Honda (%)

Its Affordability 0 58

The Aesthetic Look 14 32

Its Durability 55 0

Its Performance 31 10

100 100

The analysis made above shows that the main factor that hinders customers to buy the
Camery car is mainly ‗durability‘ (55%) and its performance (31%), while the main
reason why customers buy the Honda brand is because of its affordability (58%),
followed by its aesthetic look (32%).

23
Table 5
If you were to use Marketing Segmentation, do you think it would reduce the level of
Personal Selling and advertising in your dealership?
Answer Options Camery (%) Honda (%)

Yes, a lot 49 79

Not much 38 21

No difference at all 13 0

100 100

The table above shows that just about half of the population of the Camery
automobile dealers (49%) believe that if marketing segmentation is used that it will
reduce costs in other aspects of marketing (personal selling and advertising), most of the
other half of the Camery dealers feel it won‘t make much difference or no difference at
all. On the other hand 79% of Honda brand dealerships feel that marketing segmentation
will reduce the extent of cost, to which personal selling and advertising is done in their
dealerships.

24
Table 6
To what extent do you think marketing segmentation has contributed towards increasing
your dealerships market share?
Answer Options Camery (%) Honda (%)

A lot 22 57

Fairly 24 29

Very Little 42 16

Barely at All 12 0

100 100

The table shows that most Camery dealerships believe that marketing
segmentation has contributed very little (42%) to creating their market share, about
quarter (22%) of the Camery dealerships believe that it has contributed a lot. While more
than half of Honda brand dealers (57%) believe that marketing segmentation has
contributed a lot to increasing their market share.

25
Table 7
From the options given below what level of revenue (N) would you say your dealership
has achieved for the year 2014.
Answer Options (N millions) Camery (%) Honda (%)

N100 - N150 85 0

N150 – N200 15 6

N200 – N250 0 68

N250 – N300 0 16

N300 and more 0 10

100 100

The analysis shows that most of Camery car dealers (85%) have made revenue,
between N100,000,000 – N150,000,000 in the year 2010 and the other 15%, between
N150,000,000 – N200,000,000,. Most of the Honda car dealers (68%) have made sales
revenue, between N200, 000,000 – N250, 000,000 in sales revenue; 6% between N150,
000,000 – N200, 000,000 in sales revenue; 16% between N250, 000,000 – 300,000,000
in sales revenue; and 10% between N300, 000,000 and more, in sales revenue. Which
shows the large difference in revenue.

26
Table 8
From the options below, which marketing strategy would be more effective in making
sales at your dealership?
Answer Options Camery (%) Honda (%)

Mass Marketing 9 11

Segmentation 6 45

Promotional Strategy 12 16

Sales Representatives 73 28

100 100

The analysis shows that a great part of Camery car dealers (73%) rely more on
sales representatives in selling their products to their automobiles, while 45% of Honda
car dealers rely more on marketing segmentation in making sales followed by, sales
representation (28%).

27
Table 9
Do you believe Marketing Segmentation is necessary for increasing sales or revenue in
your organization?
Answer Options Camery (%) Honda (%)

Yes 43 92

No 57 8

100 100

43% of Camery car dealers believe that marketing segmentation is necessary in


increasing sales in their dealerships, and 57% believe it is not necessary. While 97% of
Honda car dealerships believe that marketing segmentation is necessary in increasing
sales of their dealership. Only 8% believe it is not necessary. This shows a significant
difference in thinking and cultural values, between the two (2) brands of dealerships.

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CHAPTER 10
RESULTS AND FINDINGS

 Companies often experience improved campaign effectiveness as they can tailor


their messages to specific segments.
 Segmentation allows for more precise targeting, leading to higher engagement and
conversion rates.
 Businesses that address the unique needs of specific segments tend to see higher
levels of customer satisfaction and loyalty.
 Satisfied customers are more likely to become repeat buyers and brand advocates,
contributing to market share growth.
 Improved resource allocation leads to a higher return on investment and a more cost-
effective approach to marketing.
 Companies may discover untapped markets within their existing customer base or in
new demographic or psychographic segments.
 A unique value proposition tailored to specific segments enhances the company's
competitive position, potentially resulting in market share gains.
 Companies that actively use segmentation for product development can introduce
new offerings that resonate with specific customer groups, leading to increased
market share.

29
CHAPTER 11
CONCLUSION
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 utilised 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:
1. 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.
2. 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.
3. 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.

30
CHAPTER 12
LIMITATIONS OF THE STUDY

 Market segmentation assumes that individuals within a segment are homogenous in


their needs and preferences. In reality, there can be significant diversity even within
a segment, leading to potential misinterpretation of customer needs.
 Markets are dynamic and can change rapidly due to technological advancements,
changes in consumer behavior, or economic shifts. Segmentation models may
become obsolete or less relevant over time.
 Conducting market research and implementing targeted marketing strategies for each
segment can be costly. Small and medium-sized enterprises may find it challenging
to allocate resources for such endeavors.
 Managing multiple segments requires additional resources, including marketing
personnel, customized advertising campaigns, and tailored product/service offerings.
This complexity can be overwhelming for some organizations.
 Segmentation strategies may lead to rigidity in marketing efforts, making it difficult
for companies to adapt quickly to changing market conditions or to address
emerging opportunities that may fall outside of the predefined segments.
 There is a risk of overlap between segments, where the same customer may fall into
multiple segments. Additionally, efforts to target specific segments may
inadvertently cannibalize sales from other segments, affecting overall profitability.

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CHAPTER 13
SUGGESTIONS AND RECOMMENDATIONS
 Conduct comprehensive market research to understand the needs, preferences, and
behaviors of your target audience. Use both quantitative and qualitative data to gain
insights into consumer segments.

 Prioritize segments that offer the greatest potential for profitability. Consider factors
such as size, growth potential, and the competition within each segment.

 Develop tailored marketing strategies for each identified segment. This may include
personalized advertising messages, promotions, and product/service offerings that
resonate with the specific needs of each segment.

 Ensure clear and effective communication of your value proposition to each


segment. Highlight how your product or service addresses the unique needs and
challenges of that particular group.

 Adjust your product or service offerings to meet the specific requirements of each
segment. This may involve creating variations or extensions of existing products to
better suit the preferences of different customer groups.

 Stay flexible and be ready to adapt your segmentation strategy as market conditions
evolve. Regularly reassess the effectiveness of your segmentation model and make
adjustments accordingly.

 Implement a robust CRM system to track customer interactions and preferences.


This information can be invaluable in tailoring marketing efforts and improving
customer satisfaction within each segment.

32
REFERENCES
1. Akpan A. B. (2006), Marketing Thoughts and Consumer Behaviour. Zaria, S.
Asekome & Co Publishers. Anyanwu A. (2003), Dimensions of Marketing. Imo,
Avan Global Publications.
2. Ayuba B. (2005), Marketing: Principles and Management. Kaduna, Shukrah Printing
and Publishing Company Limited.
3. Chisnall P. M. (2004), Consumer Behavior. London, Mcgraw-Hill Book Company.
4. Iyanda O. (2004), Marketing Theory for Practitioners. Lagos, Nigeria Institute of
Management Press.
5. Onah J. O. And Thomas M. J. (2004), The Structure of Distribution: Marketing
Management Strategies and Cases.
6. Kotler P. (2004), Marketing Management. India, Pearson Education Ltd.
7. Kotler P. And Keller K. L. (2005), Marketing Management. London, Pearson
Prentice Hall Publications. Perreault W. D. (2003), Basic Marketing: A Marketing
Strategy Planning Approach. Mcgraw-Hill.
8. Schiffman L. G. And Kanuk L. L. (2003), Consumer Behaviour. New Delhi,
Precnice Hall of India Private Limited.

33
ANNEXURE QUESTIONNAIRE
Dear respondent,

I am the student of IFTM University conducting a market survey


report on ―‖ kindly spare few minutes to fill up this questionnaire. Any information
provided by you will be used for academic purpose only.

RESPONDENT PROFILE

 Name of the respondent: ………………………………………………………......

 Address:………………………………………………………………………........

…………………………………………………………………………………………

 Contact No: ………………………………………………………………………..

 Age:
 Under 18
 18-24
 25-34
 35-44
 45-54
 55-64
 65 or older

 Gender:

 Male

 Female

 Non-binary

 Prefer not to say

 Other (please specify):

34
Education Level:

 High School

 Bachelor's Degree

 Master's Degree

 Doctorate

1. Role:
 Marketing
 Sales
 Product Development
 Customer Service
2. Company Size:
 Small (1-50 employees)
 Medium (51-500 employees)
 Large (501+ employees)
3. Industry:
 Retail
 Technology
 Healthcare
 Finance
 Manufacturing
4. Does your company currently use market segmentation as a strategy for targeting
customers?
 Yes
 No
5. How frequently does your company reassess its segmentation strategy to adapt to
changing market conditions?
 Quarterly
 Annually
 As needed 35
 Not applicable

6. To what extent do you believe market segmentation has contributed to increased


market share for your company?
 Not at all
 Slightly
 Moderately
 Very much
 Extremely
7. Have you observed an improvement in customer satisfaction since implementing
market segmentation?
 Yes
 No
 Not sure
8. Have you encountered any ethical concerns related to market segmentation, such
as privacy issues?
 Yes
 No
 Not sure
9. In what ways do you foresee adjusting your market segmentation strategy in
response to future market trends or changes in consumer behavior?
_________________________________________________________________
_________________________________________________________________
______
10. How does your company plan to stay agile and adaptable in the face of dynamic
market conditions?

_________________________________________________________________
_________________________________________________________________
______
11. Are there specific technological tools or analytics platforms that your company
uses to enhance its market segmentation efforts?

36
_________________________________________________________________
_________________________________________________________________
______
12. What additional comments or insights do you have regarding the use of market
segmentation in your company?
13. Would you recommend market segmentation as an effective strategy for achieving
increased market share to other businesses in your industry?
 Yes
 No
 Not sure

37

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