Market segmentation and Micro and small Business Growth. The Case of Furniture Manufacturers in Mombasa.
" Egerton Journal of Humanities, Social Sciences and Education
. 2004;2(july): Egerton University Press. Abstract
Despite the significant role played by micro- and small –scale enterprises (MSEs) in Kenya’s economic development, the furniture sub-sector has over the years experienced constraints that have limited it from realizing its full potential. This paper uses data from a clustered random sample of 60 furniture manufacturers from Mombasa District to identify market segmentation strategies used by these MSEs, and to establish the effects of these strategies on business growth. A chi-square statistical method is used to analyse the data. Results reveal that a 62% of the respondents employed market segmentation in their businesses, and that the business owners’ education level and the age of the business significantly influenced the market segmentation strategy employed. Further, the segmentation marketing strategy leads to growth in a firm’s market share. The results also indicate that the most commonly used segmentation variables include: income, benefit sought, and social classification. The implication of this result is the critical importance of empowering the MSE owners with knowledge of market segmentation that would facilitate the production of furniture items that are determined by consumer demand.
Key words: segmentation, micro and small business, growth