Market segmentation strategies for competitive advantage in co-operative bank of Kenya
Abstract
Marketing is one of the important functions in any organization. Contemporary world, for business to survive in the market, they develop marketing strategy which takes into consideration the concepts as segmenting, targeting, and positioning (STP of marketing). Financial institutions use segmentation as the markets strategies to win a competitive advantage as there is often little to differentiate one Banks product from the other and Co-Operative bank is not an exception. However, very little is known of the market segmentation strategies adopted by Co-Operative Bank of Kenya
The study sought to find out the market segmentation strategies adopted by Cooperative Bank of Kenya for competitive advantage This was a case study on co-operative bank of Kenya. Primary data was collected using interview guides administered on 3 managers of Co-Operative Bank of Kenya out of the 4 that were targeted. Content and qualitative analysis were employed and findings presented in a continuous prose as a qualitative report on the market segmentation strategies adopted by co-operative bank.
The study found out that the Co-Operative Bank of Kenya considers customers needs in developing its market segmentation strategies. The bank put into consideration the customers' financial status, culture, age, marital status among others in segmenting, targeting and positioning its products in the market. The study concluded that market segmentation leads to provision of lower prices, greater benefits and services that justifies higher prices hence giving the Bank a competitive advantage. The study recommends that the market segmentation strategies should be dynamic as the customers' needs are dynamic and not static. This would ensure that the Bank remains competitive all the time and don't get caught up in obsolete old strategies.
Publisher
University of Nairobi, Kenya