CHAPTER ONE

INTRODUCTION

1.0     BACKGROUND TO THE STUDY

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

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

A key factors to success in today's market place is finding subtle differences to give a business the marketing edge.

Businesses that target specialty markets will promotes its products and services more 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 satisfactorilysatisfy the whole market or industry, it is therefore imperative that the market is segmented. Segmentation is also precipitated by the fact that the market is heterogeneous­made up of different consumers with different needs and wants.

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

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

Market can be segmented or targeted using a variety of factors. The bases for segmenting consumers markets include:

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

·        Geographical bases (state, regions, countries)

·        Behavior bases (product knowledge, usage attitudes,

·        response)

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

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

1. 1. This material content is developed to serve as a GUIDE for students to conduct academic research work
2. 2. As a source for additional understanding of the subject.
3. 3. As a source for ideas for your own research work (if properly referenced).
4. 4. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase)
5. 5. Direct citing (if referenced properly)
Thank you so much for your respect to the authors copyright.