Market segmentation practices, organizational characteristics and performance of cement manufacturing firms in Kenya

Abstract

The study sought to establish market segmentation, organizational characteristics and performance of cement manufacturing firms in Kenya. This study used a descriptive research design a n d targeted a population of all the six cement manufacturing firms in K e n y a . Target respondents included the marketing managers and production managers of cement firms. The study made use of a questionnaire with open ended and closed questions. Quantitative data collected was analyzed by the use of descriptive statistics while qualitative data was analyzed using content analysis. The study established that the cement industry in Kenya use industrial market segmentation practices to segment their market. The study established that market segmentation practices within the cement industry have had a positive impact on performance. 80% of the respondents agreed that segmentation improved the competitive position of their organization. The study revealed that organizational characteristics have an effect on firm performance. Ownership of firms, board of director characteristics and size of the firm were reported as the organizational characteristics that majorly affect performance. The study concluded that there have been improvements in the industry especially with improved efficiency when serving customers, increased cross selling opportunities for the organization and provision of insight into new product/ market opportunities for the organizations. The study also concluded that Organizational structure, an organizations behavior and an organizations internal environment are the determinants of firm performance that majorly affect a firm’s performance. The study also concludes that both financial and nonfinancial performance measurement practices are used by all the cement manufacturing firms.