Wednesday, 3 December 2014

Segmenting the Market for proper business penetration-Odunze Reginald

























Anyanwu, a professor of Marketing noted that “For any company to assume that every person is a consumer of its product is an attempt at economic suicide” Anyanwu (1993:152)
And according to Adirika et al (1997:123) “ the marketer recognizes that different segments exist in the total market and design a version of the basic product that would more precisely meet the needs  and preferences of each segment” this is the true spirit of the marketing concept.
And according to business resource software inc (2011:I ) it states that the purpose of segmenting a market is to allow your marketing/sales program to focus on the subsets of prospects that are mostly likely to purchase your offering” continuing it states “that strategic –your offering is in some way important to the enterprise mission, objectives and operational oversight” for example a service industry that helped evaluate capital investment opportunities would fall into this domain of influence, the purchase decision of this category of offering will be made by the prospects top level executive management”
Busch and Houston in 1985 defined market segmentation as the process by which an organization attempts to match a total marketing programme to the unique manner in which one or more customer groups behave in the market place.
Pension market can be segmented in to the following,
public and private sectors,
Public can be categorized into Federal , state, and Local government with the introduction of pension Reform Act 2014 that makes mandatory for state and local government throughout the federation.
Even the federal government can be categorized as Federal Ministries, like Federal Ministry of Education
Federal Parastatals like National Communication Commission.
Federal Tertiary and Research institutions.
The paramilitary that will include Customs, civil defense, fire service etc
And private can be categorized into the following:
Financial services, like banks, insurance companies, discount houses, Micro finance banks, Finance houses, Stock brokering firms, Building societies, Savings and Loans Company.
Oil and gas like oil exploration companies, up stream and down stream, petroleum marketing company, and oil service companies, and petrol stations.
Constructions, manufacturing and agricultural companies
Road constructions, Building construction companies, Rail construction etc.
Small and medium scale companies
Transport , aviation companies, airlines, shipping companies, courier, air ticketing,  media houses, electronic and print, printing and publishing, advertising and public relations agencies.
Equipment vendors like Huawei, Ericson, and Dizengoff etc
Communications
Professionals like consultants, Estate firms, law, accounting, audit, actuary firms, professional bodies like ACCA, ICAN, NIMN, COREN etc
By volume of remittances,
By number of registration
By geographical location like north east ,north west, south east south west, south south, north central.
In a competitive environment of today, it is neither possible nor profitable for a marketer to try to sell to all consumers, you can never satisfy the world is an old saying that best describes the rational in market segmentation, Anyanwu op cited. Continuing Anyanwu  stated that  “a market is made up of heavy and light users while the heavy users account  30 percent of the total market segment, they account for as much as 60-70 percent of the consumption of a given good or service” this is in agreement with  the 80/20 Rule which was first propounded by Vilfredo Pareto in 1897 known as the Pareto principle or the principle of the least effort, it goes to stipulate that 20 percent of the world hold 80 percent of the world economy, also that 80 percent of our success comes from 20 percent of our effort. Kiosaki and Leitcher.    Kiyosaki went on to say that 10 percent of the people hold 90 percent of the money in 90/10 Rule of money.

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