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CHAPTER ONE
1.0 INTRODUCTION
Marketing has over the years advanced from various concepts and philosophies, which include the production concept, selling concepts, and product concepts.
The marketing concept is viewed from the customers orientation philosophy which seek 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.
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 customers 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.
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 heads to the lowest cost, both production cost and over head 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 programmes/functions and greater customer advancement in education and awareness firms no longer practice the concept of “one size fit all” marketing.
Thus in bid for higher profitable sales, and greater customer satisfaction, mass marketing is relegated to the background with the adoption of the market segmentation which now recognizes the differences in segment needs, wants and response to marketing programmes.
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 through study of customer’s behavior with in the market is conducted through study of customer effective of marketing research for better understanding of their distinct and homogeneous characteristics is required.
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, behaviouristic and psychographic variables in dividing the total market into different groups with similarities between the.
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, the researcher has decided to conduct a study to identify its importance bases/approaches limitations and its influence on a customer oriented organization particular reference to Cadbury Nigeria Plc.
1.1 BACKGROUND OF THE STUDY
For any organization to break through in its marketing activities. It is important for the marketed to identify with market segmentation strategy.
It enable the marketer to divide the market into various segment which could include income, age, locations etc and modify product offering that will suit into the particular target market.
It has been expressed in several form by marketing experts that a firm can not market its product to the entire market, it has to identify from the total market a part that I can successfully source with its product because of this factors, the concept of market segmentation is applied as the means by which organization break the total market into sub markets where a form can aim and reach with it distinct marketing mix.
Market segmentation requires that the company identify different basis for segmenting by the market develop profiles of the resulting market segment and develop measure of each segment attractiveness market segmentation remain on inedible mark for markets to enter a particular market.
Market segmentation have been defined by Philip Kotler as “the act of dividing a market into distinct meaningful group of buyers into might merit separate product and or marketer mix.
1.2 STATEMENT OF THE RESEARCH PROBLEM
The quest for increasing profitable state volume is every organization problem is every organization problem.
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 programmes. 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 the appropriate 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 problems.
1.3 BRIEF HISTORY OF CADBURY NIGERIA
Cadbury Nigeria Plc is a public liability company involved in manufacturing with specific emphasis on cocoa based products. Its products rages to cover areas such as food, beverages and sugar.
The company began in 1956 as Cadbury fry export setting up office at A9 orange road, Apapa with the sales of pronto a cocoa based chocolate and drinks using a rented warehouse.
In 1960 Bournvita Leading food was introduced, initially both products were bulk imported and packed at Apapa ware-housed factory but it. Soon became clear that a lot needed to be done based on its success history.
The business of the organization is centered on serving the customers with high quality food and other items, which are important for the welfare and sustenance of all members of the family.
Items produced by the company include Bournita, Goody-goody, éclair, batternut, tomapep, Maggi and knorr cubes.
The combined strength of its brand backed by a few reacting distribution network which touches all part of the country. This makes the company a clear competitive edge in Nigeria market environment or place.
Cadbury has about 2000 staffers made up of some of the nations best trained technocrats and a manager with adopt of more than 20 nation wide.
Its distributions strategy involves the use of direct customer depot, distributors, trading companies, and its sales team.
The company is committed to its workers and customers and such created and allows rooms for the following.
1. Creating atmospheric condition where by all employees interacts and concern and express opinions with the assurance that these will be fairly considered.
2. Fostering open way communication between management and employees.
3. Company uses sales promotion as a remedy to poor or low sales, by stimulating the demand of their products and increasingly market share of their products.
Consumers
1. The company monitors the changes in wants and needs of the consumers.
2. Developing and maintaining high standard quality.
3. Researching new technological for products which favours an improve environment.
4. The company use periodical sales promotional methods to stimulate demand and get new consumer trials and encourage brand loyalty.
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