A growing need for market segmentation in Kenya

In today’s globalized world, businesses are finding it hard to survive for a long period because of competition: As a result, it is increasingly becoming important for businesses to find the best marketing strategy that will ensure a stable ROI and that will help a business achieve a competitive edge over its competitors.

A successful marketing strategy is enhanced through the use of Segmentation, Targeting and Positioning (STP):  STP suggest that a market is made up homogeneous groups that have distinct needs and desires called segments: The purpose of segmentation is to concentrate the marketing energy force into those segments which the marketer believes that he can satisfy better than the competitors; he then position the products to the targeted markets. However, it is worth noting that the segments chosen should:

  1. Differ in ways that allows their size and accessibility to be easily measured.
  2. Be large enough to justify their separate targeting efforts.
  3. Be uniquely reachable through communication media and marketing channels.
  4. Be relatively stable and not diminishing over time.

Steps in STP:

  1. Identify the needs of the segments: Involves answering the questions on what are the needs of the customers.
  2. Develop segment profile: Use different segmentation variables to create segments e.g. age, gender, attitude.
  3. Develop a measure of segment attractiveness. This is done through evaluation of the descriptions of the segments that you have identified e.g. size, growth rates, brand loyalty etc., e.g. scoring.
  4. Select target segments: A business decides on which segments are most appropriate. This is based on firm’s strategy, attractiveness of the segments and competition.
  5. Develop a positioning for target segments: A firm identify how to position their products/brands in the target market. Positioning helps want to provide value to customers.
  6. Develop a marketing mix for each segment: What is the design? suitable price? distribution channel? promotional program?.
  7. Review performance: Revisit the performance of various products in order to reassess their view in the market and look for new opportunities.

Basis of market segmentation

Market segments can be based on:

  • Demographic variables: Demographic variables may include age, gender, education and income.
  • Geographic variables: Mostly based on the region, climate, population density and neighborhood.
  • Psychographic variables: Include attitude, opinion, interest and values.
  • Behavioral variables: Include purchase habits, purchase frequency, brand loyalty and channel usage.

Targeting strategies.

After segmentation, a company need to direct marketing energy to particular consumers: The strategies employed can be in the basis of:

  • Aggregation strategy: Where a company treats its total market as a single segment.
  • Concentration strategy: Where a company focuses on one segment within the total market.
  • Multiple segment strategy: Where a company focuses on two or more segments of potential customers.

Market positioning

A company then decide on how to position itself in the market; this can be in the basis of.

  • Value proposition.
  • Price.
  • Product design.
  • Distribution channels.


  1. Segmenting and Targeting Your Market: Strategies and Limitations


2. The Marketing Process


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