IMPACT OF MARKET SEGMENTATION AND PRODUCT POSITIONING IN A SERVICE INDUSTRY
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IMPACT OF MARKET SEGMENTATION AND PRODUCT POSITIONING IN A SERVICE INDUSTRY
Chapter one
INTRODUCTION
The most remarkable notion in modern marketing is market segmentation, which is a customer-centric mindset. Consumer desires are the most important motive for every type of business operation.
This marketing concept seeks to determine the most effective way to contact customers with the goods and services produced. In this study, “product” refers to the services supplied by the banking industry.
This necessitates a thorough and ongoing study of consumers, as well as product positioning, in order to effectively meet their various needs on a regular basis, pushing marketers to employ a variety of key marketing methods.
The market is diverse in nature, and consumers are dispersed and difficult to reach. No one business can produce and serve the entire market. As a result, it is more effective and efficient for any bank to identify its sub-market(s) from the overall population, choose them, and target them with a different marketing mix using the limited resources it has.
Banking involves large-scale investments in the millions and billions of Naira. In segmenting the market, the Manager needs answer certain basic questions, such as who the customers are.
Who are they?
What do they want?
Why do they buy?
Answers to these and other questions will greatly aid the manager(s) in efficiently and successfully planning, implementing, and controlling all operations.
Market segmentation may then be defined as the act of dividing the entire market into unique units or segments in order to target a specific group of customers with a separate product inside a given market.
The effects of market segmentation drive a bank or other business management to position its products utilising a distinct marketing programme tailored to each market category.
The dynamism of the marketing system, as well as a competitive business environment, necessitate a continuous refinement and increased sophistication in product positioning through market segmentation by managers
marketing scholars, authors, and professionals. This marketing philosophy has frequently demonstrated the unlimited needs and diversity of consumers.
In light of this, the phrase “market segmentation” refers to how an organisation may identify and target its sub-parts through its distinct marketing mix (i.e., the four Ps: product, price, promotion, and location).
According to Kotler (1984), market segmentation is “the act of dividing a market into distinct and meaningful groups of buyers who may merit separate product and/or marketing mix.”
He emphasised that market segmentation necessitates the company identifying several bases for segmenting the market, developing profiles of the resulting market segmentation, and developing metrics for each segment’s attractiveness.
The purpose of this work is to consider the impact of market segmentation and product positioning, with a specific focus on United Bank for Africa plc Kaduna.1.1 HISTORICAL BACKGROUND OF UNITED BANK FOR AFRICA, KADUNA
United Bank of Africa was established in Nigeria as a private limited liability business on February 23, 1961, under the firm’s ordinance (act 37) 1922.
The Bank acquired the assets and liabilities of the British and French Bank Ltd, which had been doing business in Nigeria since 1949, and began operations officially on October 3, 1961.
In the 1960s, foreign banks dominated the bank’s ownership and management, and three of those banks are still stockholders today. The Bank’s ownership and management structure changed considerably in the 1970s, when the federal government of Nigeria chose to acquire an equity stake in all major banks, which were previously controlled by foreign shareholders.
Between 1970 and 1980, the Bank enjoyed spectacular expansion, expanding its branch network from 24 to 77 and increasing the number of workers from 836 to 4500, while assessments and deposits exceeded all billion.
United Bank for Africa’s development continued throughout the 1980s, with total deposits rising from N2.4 billion in 1981 to N11.9 billion in 1991, while total assets increased from N 2.5 billion to N 12.7 billion over the same era.
One prominent characteristic of its branch expansion was the establishment of a representative’s office in New York in September 1982, which was later converted into a fully fledged branch in May 1984.
A branch was also established in Cayman Island in 1988. To date, UBA is the only Nigerian bank, and indeed sub-Saharan Africa bank, to have built and maintained branches in the United States and Grand Cayman Island.
United Bank for Africa is committed to adapting its operations to reflect market realities, evolving client needs, and the bank’s changing objectives. Customers can and should expect more responsiveness and value in the future.
Today, UBA is still a powerful, safe, and reliable bank, as well as a competitive force in Nigeria’s banking industry. The bank’s objective is to build on its past successes and reposition itself to meet the ever-changing difficulties that the banking industry faces in the twenty-first century.
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