Impact of market segmentation practices on the profitability of small and medium scale enterprises: Case research (original) (raw)
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Journal of Physics: Conference Series, 2018
Leilem is a small village located in Minahasa Regency. This village is well known for furniture products made of Timber. Eventhough the village has been producing various furniture products with high quality since many decades ago, it has not been able to compete with other new entries such furniture from Java, Synthetic Ratan, Plywood and plastic based furniture. The monotonous design and the finishing works done on the furniture have been some of the major issues in the decline of home furniture. The research explores problems and challenges faced by the furniture home Industry. It will also aim at identifying the internal and external factors that prevent the home industry to compete and survive. In the end the research will develop the strategic positioning of the home industry in the midst of competition. The research methodology employs descriptive analysis in which data are collected through observation, interview, and questionnaire. This methodology is combined with IFE (Internal Factor Evaluation) and EFE (External Factor Evaluation) Matrix, SPACE Matrix and SWOT Analysis and QSPM (Quantitative Strategic Planning Matrix). The sample is 66 business people, of 823 craftsmen who are working in this business. The result shows this home industry is very competitive in terms of consistency, but in terms of promotion, product quality, price, product diversification, design training of furniture, management and economic scale, it is lagging behind. The home industry should be able to develop marketing networking, improve design and product quality, promotion and cost control, product diversification and these can only be done by intensive training in managing business and investment.
Market segmentation practices of industrial marketers
Industrial Marketing Management, 1993
Most of the research into market segmentation has focused on methods of positioning markets into segments and not on the practical use of market segmentation. This article discusses how a sample of 32 industrial companies in South Africa used market segmentation. A literature review of industrial market segmentation is presented. The results of this survey identified the variables used in segmenting markets, the criteria used to form segments, the criteria used to select target segments, and the marketing actions used to reach the chosen segments.
Kampala International University Interdisciplinary Journal of Humanities and Social Sciences
This study focused on adoptable strategies in marketing and market reaction with reference to Small and Medium Enterprises in Kogi State. The study examined marketing strategies, customer’s satisfaction and the market share of SMEs in Kogi State. Descriptive research design was employed. The study’ universe was 1,027 SMEs; from which the sample size of 142 was drawn. Multistage random sampling technique was applied. For data analysis, descriptive statistics, Multiple Regression and Correlation Matrix were used. Finding showed that specialization strategy (promotion strategy and price strategy) has significant effect on market share of SMEs in Kogi State. Finding further showed that relationship exists between differentiation strategy and customer’s satisfaction. The study concluded that specialization strategy takes care of how the best price is tagged, and that when SMEs focus on differentiation strategy (product quality, product content, operation process, and innovation) customer...
European Journal of Business and Management, 2019
This study focused on the effects of marketing mix strategies on the performance of SMEs in Kogi State. To achieve the study's objectives, a survey research design was adopted. A purposive sampling was used, and 300 respondents were selected. Findings show that promotion strategy relates negatively and significantly with sales and profitability performance of SMEs in Kogi State. Findings further show that distribution strategy significantly and positively relates with sales performance; while pricing strategy significantly and positively relates with the profitability performance of enterprises in Kogi State. The study concluded that marketing mix strategies have significant effects on sales and profitability performance of SMEs in Kogi State. The study recommends that SME owners should adopt less of promotion strategy to achieve high sales and profitability performance in the business environment of Kogi State, and that more aggressive distribution strategy and pricing strategy should be adopted to sustain sales and the profitability performance of their enterprises in Kogi State.
RECENT DEVELOPMENT OF SMALL MEDIUM ENTERPRISES' BUSINESSES PROFITABILITY: EVIDENCE FROM INDONESIA
the 2nd International Conference on Inclusive Business in the Changing World, 2019
Small Medium Enterprises (SMEs) has an important role for Indonesian Economy based on the fact that more than 90 percent of domestic employment is in this sector. At the same time, the Government of Indonesia enacted law 20/2008, which is focused to strengthen SMEs' participation in economic growth, job creation, and poverty reduction. Using Small Medium Enterprises Dataset of Indonesia from 2010 to 2015 which consisted of 50,000 businesses observations, the research investigated research problem: the business conditions and business profitability in Indonesia. We used quantile regression and descriptive methods involving the owner's characteristics, such as: gender, age, years of education; and production factor, such as: material cost, and amount of production. We found that: 1) the owner characteristics and production factor had significant changes in the medium business sector over the 5 year period; 2) in the recent year, the owner characteristics played important role in the small business sector, compared to the 5 years earlier. From the policy perspective, the government could increase the profitability factor in SMEs by ensuring the coordination between stakeholders.
Journal of Economics, Business and Management, 2016
The objective of this research is to examine factors affecting profitability such as firm size, firm age, growth, lagged profitability, productivity, and industry affiliation of SMEs firm listed in Indonesia Stock Exchange. Source of data used in this study is secondary data based on index PEFINDO 25. The results showed that firm size, growth, lagged profitability, productivity and industry affiliation significantly effect on profitability. While the variable firm age does not significantly influence profitability. The results of the regression coefficient indicates that the variable firm size, growth, lagged profitability have a negative effect on profitability, While the variable productivity and industry affiliation have a positive impact on profitability. Therefore, for further improve company's performance the manager should define a strategy to increasing profitability with focusing on productivity and industry affiliation.
Market Segmentation as A Marketing Strategy to Achieve The Market of The Company Market
Proceedings of the International Conference on Environmental Awareness for Sustainable Development in conjunction with International Conference on Challenge and Opportunities Sustainable Environmental Development, ICEASD & ICCOSED 2019, 1-2 April 2019, Kendari, Indonesia, 2019
One of the strategies applied by the company to dominate the market amid fierce competition is to target the target market (market segmentation). Market segmentation is to divide the market into subdivisions of groups of people and institutions as consumers and customers who have similarities in responding to products and services sold or marketed by companies. The research method used in scientific research is a method of literature review, namely the method by collecting data by reading books and literature related to the subject matter. This study discusses the extent to which market segmentation strategies play a role for companies in capturing market share. Finally, it can be concluded that the strategy in identifying and selecting the target market is very important in capturing the increasingly fierce market share of competition.
Texila International Journal of Management, 2019
The way the SMEs have been doing their business has some connections with the capacity to embrace marketing activities that have made some of them to become big companies. The importance of SMEs and their contributions to the national development cannot be ignored and these are in form of job creation, paying taxes and poverty reduction. SMEs enable an entrepreneurial culture to be cultivated in a society. The major problem that this study examined was the relationship between SMEs growth and marketing practices/activities of these SMEs in the furniture industry in Zambia. SMEs have the advantage of being able to use unutilized resources by involving different groups of people such as youth and women and act as an engine to achieve the economic vision of Zambia of being a semi-industrial country by the year 2025. The SMEs that are in the furniture industry are the manufacturers and traders of furniture products in Kabwe, Zambia. The general research problem that the research investigated was to find out the types of marketing activities/practices that the SMEs were using and their effect on the growth of their enterprises. The methodologies applied in this research include a combination of descriptive study (cross-sectional survey) and explanatory embedded literature search and case study. The research findings serve as tools to take actions to stimulate marketing practices of SMEs in Zambia. Some recommendations about the contributions and importance of marketing activities/practices to the SMEs have been made to various sectors of the economy that have some significance influence on the growth of SMEs in Zambia.
Product Segmentation of Wooden Handicraft Micro, Small and Medium Enterprises (MSMEs) in Indonesia
IOP conference series, 2019
The intense competition between wooden handicraft Micro, Small and Medium Enterprises (MSMEs) in Indonesia has encouraged business owners to generate creative innovation in order to maintain the sustainability of the company. This study aims to develop the new product development strategy based on the product segment characteristics from wooden handicraft MSMEs in the Special Region of Yogyakarta, Indonesia. The segmentation of products was done by applying the combination of K-Means Algorithm and Frequency, Monetary, Customer Variety (FMC) variables to the customer transaction data. The results showed five different types of product sales characteristics in three wooden handicraft MSMEs. It will encourage business owners to gain valuable insights about useful product sales characteristics for building business strategies to face increasingly fierce competition in this era.