CHAPTER ONE

INTRODUCTION

1.0    BACKGROUND TO THE STUDY

The impact and effectof market segmentation with the view of globalization throughout the world be it developing or developed economy, the supremacy being accordthe free market system cannot be over emphasized, that is achieving economic efficiency which ultimately leads to economic growth is free competitive market system otherwise refer to as the capitalist system.

Market segmentation is one of the steps into defining and target specific market.  It is the process of dividing a market into distinct groups of buyer that require different products or marketing mixes.

A key factors to success in today'smarket place is finding subtle differences togive a business the marketing edge.

Business that target specially market will promotes us products andservicesmore effectively than a business aiming at the "average" customer.

Segmentation is so important that Kotler (2004) described the heart of modern strategic marketing as segmenting, targeting and positioning (STP). Since no marketer can satisfactorily satisfy the whole market or industry, it is thereforeimperative that the market is segmented. Segmentation is also precipitated by the fact that the market is heterogeneous-made up of different consumers withdifferent needs and want.

He also viewed market segmentation as an act of identifying and profiling distinct groups of buyers who might require different products and/or marketing mix.

Opportunities inmarketing increase when segmented groups of clients and customers with varying needs and wants are recognized.

Market can be segmented or targeted using a variety segmenting consumers markets include:

·        Demographical bases (age, family size, life cycle)

·        Geographical bases (state, regions, countries)

·        Behavior bases (product knowledge, usage attitude, response)

·        Psycho graphical bases (life style, values, personality)

Today, it could be generally agreed that almost all the manufacturing industries especially breweries, practice market segmentation due to tremendous benefit derived from it.

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