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Evaluation of the Effect of Market Segmentation on Sales Performance of the Banking Industry; EVALUATION OF THE EFFECT OF MARKET SEGMENTATION ON SALES PERFORMANCE OF THE BANKING INDUSTRY;. A SURVEY OF COMMERCIAL BANKS IN KISII TOWN , KISII COUNTY. EDINAH BARONGO NYABWARI A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF BUSINESS AND ECONOMICS IN PARTIAL FULFILMENT FOR THE AWARD OF DIPLOMA IN SALES AND MARKETING OF KISII UNIVESITY NOVEMBER, 2017 i DECLARATION AND RECOMMENDATION DECLARATION This research project is my original work and has not been presented for a diploma in any other university/ institution. Signature ……………………………………. Date ………………………………….. EDINAH BARONGO NYABWARI CB07/10455/15 RECOMMENDATION This research project has been submitted for examination with my approval as a University Supervisor. Signature …………………………………….. Date ……………………………………. Mr. Peterson Sang’ania Lecturer , School of Business and Economics Kisii University ii DEDICATION This research project is dedicated to my father Christopher Nyabwari , my mother Ebisiba Kwamboka , My sister Violet for the emotional and financial support accorded to me that enabled me to carry on with this work to it’s logical conclusion and to my supervisor Mr. Peterson Sang’ania for having allowed me to carry on with this work under his guidance iii ACKNOWLEDGEMENT I wish to express my sincere gratitude to my supervisor Mr .Peterson Sang’ania for his useful guidance that enabled me to complete this research proposal in time. I also express my appreciation to all my lecturers and my fellow students for their contribution towards the success on this proposal. iv ABSTRACT The main objective of this study was to evaluate the effects of market segmentation on sales performance of banking industry. This research proposal was to evaluate the effects of market segmentation on sales performance of the banking industry .The study was guided by four relevant theories: The resource Based View theory ,dynamic capabilities model theory ,marketing impact model theory and marketing mix theory. The study was guided by three specific objectives ;to obtain the extent to which Geographical market segmentation is used in service provision by the commercial banks in Kisii town, to assess the factors that influence demographic market segmentation by commercial banks in Kisii town and to establish challenges of behavioral market segmentation. To achieve the objective of the study a descriptive research design was adopted. The target population was 92 respondents from commercial Banks in Kisii County, Kenya , primary source of data and secondary source of data was utilized in the entirety of the study. Data was presented by use of , pie charts graphs and tables was used to present various aspect of the variables .Validity was ensured by the university supervisors by cross checking the questionnaires. For reliability Purpose the study was pre-tested before being utilized to confirm that the survey tool meets the requirements. The nature of behavioral segmentation provides the opportunity for real-time communication across a wide range of marketing channels including direct mail, email, point-of-sale devices, and mobile channels as well as personal contact at the branch or call center level. The downside of using behavioral data as a marketing driver is that it does require detailed, in-depth data sets, models and market testing. v Table of Contents DECLARATION AND RECOMMENDATION.....................................................................................................ii DEDICATION................................................................................................................................................iii ACKNOWLEDGEMENT.................................................................................................................................iv ABSTRACT....................................................................................................................................................v LIST OF ABBREVIATIONS..............................................................................................................................ix LIST OF TABLES.............................................................................................................................................x LIST OF FIGURES..........................................................................................................................................xi CHAPTER ONE..............................................................................................................................................1 INTRODUCTION...........................................................................................................................................1 1.1 Background of the Study.......................................................................................................................1 1.1.1 Concept of Market Segmentation...................................................................................................1 1.1.2 Commercial banks in Kisii Town......................................................................................................3 1.2 Statement of the Problem.....................................................................................................................3 1.3 Objectives of the Study..........................................................................................................................5 1.3.1 General Objective...........................................................................................................................5 1.3.2 Specific Objective............................................................................................................................5 1.4 Research questions................................................................................................................................5 1.5 Significance of the Study.......................................................................................................................6 1.6 Scope and Justification of the study......................................................................................................7 1.7 Limitations of the study.....................................................................................................................7 1.8 Assumptions of the study......................................................................................................................7 1.9 Definition of terms.................................................................................................................................8 CHAPTER TWO.............................................................................................................................................9 LITERATURE REVIEW....................................................................................................................................9 2.1 Literature Overview...............................................................................................................................9 2.2 Theoretical Foundation..........................................................................................................................9 2.2.1 The Resource Based View theory..................................................................................................10 2.2.2 The Dynamic Capabilities Model theory.......................................................................................11 2.2.3 Marketing Impact Model Theory.................................................................................................11 2.2.4 Marketing Mix Theory..................................................................................................................12 2.3 Empirical Literature.............................................................................................................................13 vi 2.3.1 Extent to which geographical market segmentation is used in service provision in commercial bank.......................................................................................................................................................13 2.3.2 Influence of demographic market Segmentation in Commercial Bank........................................16 2.4 Challenges of behavioral market segmentation in commercial bank in Kisii.......................................18 2.5 Research Gap.......................................................................................................................................22 2.6 Conceptual Framework........................................................................................................................24 CHAPTER THREE........................................................................................................................................25 RESEARCH METHODOLOGY.......................................................................................................................25 3.1 Research Design...................................................................................................................................25 3.2 Study Area...........................................................................................................................................25 3.3 The Target Population..........................................................................................................................25 3.4 Sampling Frame...................................................................................................................................25
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