1. EFFECT OF MARKET SEGMENTATION, TARGETING AND POSITIO

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EFFECT OF MARKET SEGMENTATION, TARGETING
AND POSITIONING STRATEGIES ON INTERNATIONAL
SCHOOLS IN NAIRO

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TABLE OF CONTENTS
Contents
ABSTRACT.....................................................................................................................................................5
CHAPTER ONE: INTRODUCTION...........................................................................................................1
1.1 Background of the Study......................................................................................................................1
1.1.1 Market Segmentation......................................................................................................................2
1.1.2 Targeting..........................................................................................................................................4
1.1.3 Positioning........................................................................................................................................5
1.1.4 International Schools in Nairobi....................................................................................................7
1.2 Research Problem..................................................................................................................................8
1.3 Research Objectives............................................................................................................................10
1.4 Value of the study................................................................................................................................10
CHAPTER TWO: LITERATURE REVIEW............................................................................................12
2.1 Introduction.........................................................................................................................................12
2.2 Theoretical Foundation.......................................................................................................................12
2.3 Market Segmentation Strategies........................................................................................................13
2.4 Targeting Strategies............................................................................................................................15
2.5 Positioning Strategies..........................................................................................................................17
2.6 Empirical Review.................................................................................................................................19
CHAPTER THREE: RESEARCH METHODOLOGY...........................................................................23
3.1 Introduction.........................................................................................................................................23
3.2 Research Design...................................................................................................................................23
3.3 Population of the Study.......................................................................................................................23
3.4 Data Collection.....................................................................................................................................24
3.5 Data Analysis.......................................................................................................................................24

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CHAPTER FOUR: DATA ANALYSIS, RESULTS AND INTERPRETATION..................................25
4.1 Introduction.........................................................................................................................................25
4.2 Response Rate......................................................................................................................................25
Table 4.1 Response Rate..........................................................................................................................................25
4.3 General Information...........................................................................................................................26
Table 4.2 General Information.................................................................................................................................26
4.4 Segmentation, Targeting and Positioning Strategies.......................................................................27
Table 4.3 Segmentation, Targeting and Positioning Strategies................................................................................27
4.5 Extent of the application of segmentation, targeting and positioning strategies...........................29
Table 4.4 Extent of the Application of Segmentation, Targeting and Positioning Strategies...................................29
4.6 Effect of segmentation, targeting and positioning strategies...........................................................31
Source: Research findings........................................................................................................................................32
4.7 Discussion of Findings............................................................................................................................33
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS................................35
5.1 Introduction.........................................................................................................................................35
5.2 Summary..............................................................................................................................................35
5.3 Conclusion............................................................................................................................................37
5.4 Recommendations................................................................................................................................38
5.5 Limitations of the Study......................................................................................................................39
5.6 Suggestion for Further Research.......................................................................................................39
REFERENCES.............................................................................................................................................41
APPENDICES...............................................................................................................................................46
Appendix I: Questionnaire...........................................................................................................................46
Dear respondent,.....................................................................................................................................................46
Section I...................................................................................................................................................................46
Section II..................................................................................................................................................................46
Thank you................................................................................................................................................................50

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Appendix II: List of International Schools in Nairobi..............................................................................51

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ABSTRACT
Segmentation, targeting and positioning are tools of marketing used in gaining
competitive advantage by a firm in the market. STP can be viewed as main disciplines in
strategy of marketing; faults in these areas result in failure and tend to be costly; doing it
right leads to success. This study therefore sought to determine the effect of
segmentation, targeting and positioning strategies on international schools in Nairobi.
The study used a cross sectional descriptive survey design and carried out a census of the
34 international schools. The primary data was collected by use of questionnaires that are
semi structured in nature. The semi-structured questionnaires were self-administered to
the marketing manager at each international school. The data collected was edited for
accuracy, consistency and completeness and then analyzed using descriptive statistics
with the help of Statistical Package of Social Sciences. The study found that
segmentation based on gender, fees paid and the education system were the most used
market segmentation strategies by international schools in Nairobi but the application of
undifferentiated targeting, niche market and differentiated marketing strategies by
international schools was minimal. The study found that benefit positioning and product
positioning by providing exceptional quality of services were the most used positioning
strategies by international schools in Nairobi. Additionally, the study found that market
segmentation helps international schools to adjust to specific needs in the market, allows
international schools to serve their clients according to their needs and targeting can
allow international schools to understand the market structure and how to serve it. The
study further established that market positioning strategies can help international schools
to build their image and can help them to create proper appeals in the minds of the target
market. The study concluded that market segmentation strategies, targeting strategies and
positioning strategies are vital to international schools and they help international schools
to brand and position themselves in a better position. The study recommends that the
management of international schools in Nairobi should ensure they incorporate market
segmentation strategies, targeting and positioning strategies since they are vital for
international schools in Nairobi.

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CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
Segmentation, targeting and positioning are tools of marketing used in gaining
competitive advantage by a firm in the market. STP can be viewed as main disciplines in
strategy of marketing; faults in these areas result in failure and tend to be costly; doing it
right leads to success (Schlegelmilch, 2016).Many companies face the decision on how to
effectively handle the state of markets becoming interdependent and competitive while
consumers become choosier (Lhotáková & Klosová, 2009).Thus, segmentation, targeting
and positioning (STP) is a critical basis for each marketing strategy of product. A firm is
able to formulate an effective tactical marketing strategy (marketing mix) with a factual
STP.
The STP approach proposes that the mass market comprises of certain number of groups
that are relatively homogenous, each with different desires and needs. Marketers of STP
try to pinpoint those segments in the market, direct activities of marketing at the
segments, which the marketers are certain that their business can gratify better than their
opponents can, and site can well their merchandise offering in order to appeal to the
segments targeted (Lynn, 2011). Unlike the generic marketing strategies, which revolve
around the product, the STP model is more about the consumers. The model comes to use
when forming marketing communication strategies because it aids marketers in
prioritizing propositions, developing and delivering relevant and personalized messages
to involve with diverse audiences. It aims at commercial efficiency/effectiveness,

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choosing the most appropriate market segments for a company thereby emerging a
product positioning strategy and a marketing mix for every section (Abeck, 2017)
In Kenya, the education industry is one of the sectors that have experienced phenomenal
growth in the recent past (Kilavuka, 2007).The international schools sector in Kenya
continues to grow inexorably. As globalism continues to gather pace, so has the demand
for international education. This sector is benefiting from a more interconnected world
and the increased migration of people that this has produced. In addition, there is a
growing middle class in developing countries who also wish for their children to have the
benefit of a world-class education (Barnes, 2016). The society is also continually
demanding for higher quality education and value for their money. Society has always
had high expectations of teachers, and more so today. This has been necessitated by the
following trends in society that is; move towards the nuclear family, the increasing
involvement of women in the work force, the expansion of universal literacy programmes
and the deluge of information in this information age (Ochieng, 2006).
1.1.1 Market Segmentation
Market segmentation is the procedure of distributing a potential market into separate
consumer subsets with joint characteristics or needs and selecting one or more section to
aim with a unique marketing mix (Moyo, 2005). It includes the subdivision of the all-
inclusive market for a service or product into minor market segments or groups, entailing
customers who are somewhat alike within a precise segment and extremely different from
customers constituting other sections (Moschis, Lee &Mathur, 1997). Segmentation

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encompasses larger market being subdivided into different customer subsets with same
wants and needs or/and receptiveness to marketing offerings (Brooksbank, 1994).
Market segmentation can be carried out using various societal factors, like; lifestyle,
demographics, beliefs, values, and psychographics, geography, life stages, benefit, and
behavior (Abeck, 2017). A company can distinguish its customers in terms of geographic
variables (such as nation, state, region, demographic variables (such as education, gender,
income, and age), and neighborhood type), psychographic variables (such as interests,
values, attitudes, and opinions), and behaviors (such as purchase frequency, brand
loyalty, channel usage, and media habits) (Lynn, 2011).By aligning customers together
based on resemblance of their reactions towards greater marketing efficiency, marketing
factors, and customer fulfillment can be attained(Moschis, Lee &Mathur, 1997).
Market segmentation is an adaptive strategy. It constitutes of the market partition with the
aim of choosing one or more segments in the market, of which the firm can target
through development of precise marketing mixes which adjust to specific needs in the
market (Restrepo, 2003). Effective segmentation allows the marketers to provide a
difference between segments according to their response to market variables. For
instance, the marketers can define the differences between price sensitive consumers and
non-price sensitive consumers as a result of segmentation (Abeck, 2017). Through
segmentation, one can identify the areas having specific needs and also identify mature
markets to find new customers. Firms with high growth rates become successful by
recognizing and meeting up the desires of precise customers, not all consumers, for
special varieties of services and products, not all services or products (Olbara, 2011).