Market Segmentation Case Study

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CHAPTER ONE INTRODUCTION This research study focuses on investigating the effectiveness of market segmentation on organisational performance. This chapter introduces the research topic, the background of the study, the statement of the problem, the purpose of carrying out the study, research objectives and questions, hypothesis for testing the study, limitations to the study and the defining of terms. Financial institutions world -wide all rely on segmenting their markets in an effort to cater to specific customer needs. Segmentation is a common marketing practice by most Zimbabwean banks or financial institutions in a bid to improve marketing efficiency, sales and service, and Stanbic Bank is no exception. 1.1 Background to the study Segmentation…show more content…
The overall benefits of market segmentation include facilitating the selection of target markets, increasing profitability, shaping customer needs, innovation, increasing marketing efficiency, customer’s profitability, enduring relationships with customers and increasing market share. Strategy evaluation conducted on a regular basis can greatly improve the management and effectiveness of an organization and its strategies. All marketing strategies involve a search for competitive advantage (Bharadwaj and Varadarajan 1993). For market segmentation strategy the fundamental thesis is the achievement of competitive advantage and thereby superior financial performance results from firms identifying segments of demand, targeting specific segments, and developing specific marketing “mixes” for each targeted market segment (Dibb, Simkin, Pride, and Ferrell;…show more content…
The overall banking sector remained in a safe and sound financial condition, notwithstanding the challenging macro-economic environment characterized mainly by market illiquidity, low savings, volatile deposits and short term loans. However, the sprouting of indigenous banks and micro finance organisations saw the movement of less loyal customers shifting from one bank to another. Stanbic Bank Zimbabwe cannot be left out of this predicament as it has also witnessed the shifting of customers from the institution. Stanbic Bank Zimbabwe Limited is one of the local banks which decided to segment its market over the past few years. Stanbic Bank Zimbabwe is part of one of Africa's leading banking and financial services groups, the Standard Bank Group Limited, whose headquarters is based in South Africa and listed on the Johannesburg Securities Exchange. Standard Bank Group is the largest African bank by assets and earnings. It operates in 20 countries on the African continent, including

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