Market Segmentation by the Medium and Large Scale Manufacturing Firms in Kenya

Abstract

The study contained in this report investigated the use of market segmentation by the medium and large scale manufacturing firms in Nairobi with the aim of generalising the findings to similar firms throughout Kenya. It had a further aim of identifying the specific segmentation variables which influence the production and marketing of the firm's product and also isolating the problems encountered in the practice of market segmentation. To achieve these objectives a questionnaire was constructed and administered.The respondents were marketing managers,product managers or any other person conversant with the product and marketing strategies in the particular firm. The respondents had to rate the various segmentation variables indicating the extent to which such variables influence the product and marketing strategy in their firm. The data so collected was analyzed by use of tables, percentages and proportions. A further statistical test was carried out using the t- test to find out whether the scores for the various variables were statistically different among the different industries. The findings obtained thus led to the following conclusions:

1. The medium and large scale manufacturing firms in Kenya seg- ment their markets and direct their marketing mix at particular target groups in the production and marketing of their products. This is despite the lack of the use of sophisticated models as used in the advanced market economies.

2. The various firms in different industries are influenced by quite different segmentation variables depending on their product and market characteristics. 3. The major problem hampering the use of market segmentation

models is the undeveloped nature of our markets for they are be-

set by various restrictions e.g

by the government and other

regulatory mechanisms which in a way renders them inefficient.

Arising from these findings, it was recommended that the management of any firm needs to differentiate its offer to the consumer even in a subtle way as this will mark the beginning of market segmentation, which is important for the firm's survival in a competitive environment.