Commerce Exam Lessons

Market Segmentation, Market research, Advertising and sale promotion

Meaning: Busch and Houston (1985) defined market segmentation as the process by which an organization attempts to match a total marketing program to the unique manner in which one more customer groups behave in the market place.

Morden A.R (1987) saw market segmentation as the process of dividing the total, heterogeneous market for a product into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects.


1.       MASS MARKET OR AN UNSEGMENTED MARKET: This type of market segment is very difficult to thrive in a competitive environment. Mass markets are usually seen in nations where the government or states are the only producers or providers of certain basis needs like water and electricity.

          Mass or unsegmented markets also exist for some farm product like vegetables, fruits, yams and in some items like table salt.


Due to the different taste/preferences and consumer buying behaviours existing in the total market, producers do not follow a policy of producing only one product for all the consumers in the market.


This is a market situation where we tend to see consumers of specific products switching from one brand of the product to the other. For instance, despite that Mr “X” may be a lover of cola-cola and may be grouped under that segment for coke, we occasionally see Mr “X” requesting for Pepsi-Cola, Limca, Gold spot, etc.


This is a situation where the defined market segments do not behave alike in any-way. In a mutually exclusive segments situation, it all means that the manufacturers will have to develop different products, use different media, price its products differently and utilize different promotional tools to be able to satisfy the different segment.

Benefits of Segmentation

  1. Efficient use of marketing
  2. Helps in designing process.
  3. Effective use of advertising




 3. geographic location

4. age.

 5.benefits sought/needs/behaviour



Market Research: This is the process of getting up to date information about the market. It is a subset of marketing research. It deals with the market and its characteristics.

MARKET RESEARCH: This is defined as the systematic and objectives gathering, recording, analysis, interpretation and reporting of information about existing and potential market. It provides valuable information for the planning of the market mix.

QUESTIONS (Assignment)

  1. State two (2) differences between market research and marketing research.
  2. State four (4) roles of marketing research.


 I      Meaning: This is one of the aids to trade which deals with promoting sales of goods through messages that are meant to inform, educate and persuade the general public.

It is a process by which awareness is created.

   II     Advertising can also be defined as a paid form of non-personal promotion for goods, services and ideas by an identified sponsor.


  1.  Creation of awareness

     2. Educating the consumers on wage of goods

     3. Quality improvement

     4. Buildings goodwill for the company

     5. To introduce new product into the market.

     6. Helps in creating a branding/company image.

     7. Helps to persuade customers to buy.

     8. Increase in sales of the product.

     9. Keeping of existing customers

   10. Supports personal selling.

   11. Stimulates and creates demand for goods.

   12. Aiding the sales men.      

  • THEME:- This is the subject or main idea in an advertisement. It is the major message which is to be passed across to the general public.
  • TARGET:– This is the audience at which the advertising is aimed at
  • ADVERTISING COPY:– This refers to the words and pictures or illustrations that make up the advertisement and the way they are laid out to create a total impression.
  • FREQUENCY:– This is the number of times an advertisement is delivered through a particular
  • ADVERTISING MEDIUM:- This is the channel through which the advertisement message is delivered to the audience.
  • REACH:- Thisis the size of theaudience that has seen the advertisement at least once.
  • TOTAL EXPOSURE:- It is defined as the total number of times advertisement has been seen or heard by members of a defined target audience.       
  • DIRECT ADVERTISING:- This is a method of advertising, which is selective, and the message sent to persons who are likely to buy the product. It is aimed at a particular target market or audience. For example, men or women.
  • INDIRECT ADVERTISEMENT:- This is a method of advertising that is not directed to a particular target market. It appears to the general public and not to any section, or class of people. It provides information about products that are consumed by the general public. E.g. salt and detergent.


  1. INFORMATIVE ADVERTISING:- This is a type of advertising, which conveys useful information about the existence of a product to potential buyers. It tends to create awareness about some goods and services. Informative advertising is under taken to tell people about goods that are available, the price, uses and where they can be purchased. This type of advertising can be used to advertise employment vacancies.
  2. PERSUASIVE ADVERTISING:- This tries to persuade and convince people to buy and use a particular good. This type of advertising facilitates impulse buying, it will arouse the desire for the goods in the minds of the Listeners.
  3. COMPETITIVE ADVERTISING:- This is a type of advertising which tries to persuade customers or targets audience to buy one product in preference to another product.

It isused to induce people to buy the advertisers product rather than that of the other competitors. This type of advertisement tends to make goods cheaper to consumers. It is very good for advertising products that have substitutes e.g. Malta Guinness and Maltina, Indomie and O noodles.   

  • MASS AND GENERIC ADVERTISING:- Mass advertising is a method of advertising, which takes place when producers of particular line of goods (similar products) jointly organize advertisement in order to reduce cost and eliminate wastages. Here all competitors will agree on a common form of advertising without mentioning a particular brand. E.g. Detergent washes brighter.           

These are the means through which advertisement get to the target market or the consumers.

  1. NEWSPAPER: As an advertising medium, it is flexible and timely. Newspaper can be used to cover several cities. Examples of newspaper are punch, this day, tribune and champion

Advantages of Newspaper

  1. It provides permanent record for advertisement
  2. It has wide coverage
  3. Newspaper advertising provide opportunity for multiple readership
  4. It is flexible and timely
  5. It also provides opportunity for daily and continuous advertising.
  6. It is relatively cheap because circulation cost per prospect is low.

Disadvantages of Newspaper

  1. The cost of advertising is high.
  2. It is not accessible to illiterate.
  3. Life of a newspaper advert is short.
  4. MAGAZINE:- Magazine is an excellent medium when high quality printings and colors are needed in an advertisement. This medium has specialized readership. It can be weekly, monthly or quarterly. Example is ovation magazine.

Advantages of Magazine

  1. It conveys a feeling of quality
  2. Magazine provides fine colours reproduction.
  3. It can be used to reach a national market at a relatively low cost per prospect.

Disadvantages of Magazine

  1. It is limited in circulation
  2. Inflexibility
  3. It can only be purchased by the literates.
  4. There is infrequency with which it reaches the market.
  5. It is very expensive
  6. RADIO:- It currently has the widest reach of all media in Nigeria. it is the most effective medium of advertising. This is because it is found in the rural and urban areas. E.g. Ray power and Radio Nigeria etc.

Advantages of Radio

  1. It is relatively cheap.
  2. It provides audio impression.
  3. Radio advertising is very flexible
  4. It is widely available in the rural areas.
  5. Advertisement can be broadcast in local languages.
  6. It reaches wide audience and ensures maximum coverage.
  7. It offers a large variety of programmes from which an advertiser can choose to advertise his product.
  8. It is accessible to both literates and illiterates.

Disadvantages of Radio

  1. It does not provide permanent record, which the audience may refer to
  2. Pictures of products cannot be seen.
  3. It appeals only to the ear.
  4. It may not give full information like other media.
  5. It may not excite the audience.
  6. TELEVISION:- This is the fastest growing of all major media and is probably the most versatile. Television advertising makes its appeals through the eyes and the ears. E.g. AIT, NTA and OGTV.

Advantages of Television

  1. The use of colour enhances the beauty of the advert.
  2. It makes appeal through both the eyes (sight) and the ears (sound)
  3. It offers considerable flexibility in terms of the geographical market covered and the time of message presentation.
  4. It has the advantage of the personnel, dramatic impact of the spoken word.
  5. It helps to reach very large audience.
  6. Television advertising permits the demonstration of the use of the product.
  7. People are more receptive to television advert because it is replayed when they relax.

Disadvantages of Television


  1. It is extremely expensive
  2. The message is not permanently recorded for the audience
  3. Viewers of television may be confused of similar brands of goods.
  4. His ruption in power supply will affect television advertising.
  5. It is not accessible to every body especially in the rural area.
  6. The advertiser can use electronic techniques and photo tricks to mislead the target audience. 
  7.    DIRECT MAIL ADVERTISING:- This may be defined as a method of  sending unsolicited advertising material through the post to customers at a specified named address. It is the most personal and selective of all the media.
  8. POSTERS AND HANDBILLS:- Advertisement printed on A3, A4 and A5 papers and posted at strategic places and busy areas politicians, Pentecostal churches etc normally use posters to announce plans and events.
  9. CATALOGUE ADVERTISING:– Catalogue usually contains description of the goods offered for sale. It contains pictures features, sales prices and other terms of sales. It is pictorial in nature and could be attractive and persuasive.
  10. WINDOW DISPLAY ADVERTISING:- The importance of display in product selling cannot be over emphasized. Manufacturers may carefully display their goods on windows, shelves and counters to attract customers.
  11. OUT DOOR ADVERTISING:- This is a flexible low-cost medium because it reaches virtually the entire population. It carries the impacts of large size colour. It may be in form posters, painted bulletin or spectacular that uses bright and flashings lights. E.g. (a) Bill board (b) Posters (c) Painted walls and kiosks
  12. CINEMA:- A large number of film companies specialize in making industrial films especially for advertising and public relations. These films are shown at cinema houses. Cinema has large audiences of both young and old. It provides a favourable target audience for the advertisers.
  13. FREE SAMPLES:- Free samples of a particular product may be distributed to the consumers in order to advertise it. Manufactures regularly give free goods to some of their customers to maintain goodwill and create awareness.
  14. INTERNET:- This is the latest and fastest growing medium of advertising. Many organizations have discovered that the idea site provides not only a twenty four hours a day showcase of their products but a quick way of reaching millions of people with advertisement.


1    State four advantages and disadvantages each of the following advertising media.

i.    Catalogue

ii.    Window Display

iii.   Cinema

iv.   Free Samples

v.    Internets 

  • Advantages of Advertising
  • Advertising generates employment opportunities
  • It helps to increase the customer’s freedom of choice
  • It helps to increase the standard of living of the people through improvement in quality of goods
  • Advertising helps to inform customers about the existence of a new product.
  • It helps to build a good corporate image for the organization.
  • It brings about healthy competition among producers of similar goods.
  • Effective advertisement aids mail order business.
  • It makes mass production of goods possible as markets are being created.
  • It provides technical information about the product.
  • It increases demand and this will increase the sales revenue of the organization.

Disadvantages of Advertising

  1. The cost of advertising is very high.
  2. Advertising may lead to increase in price of goods as the cost incurred in advertising will be added to the price.
  3. It usually creates impulse buying
  4. Outdoors advertising may cause landscape defalling.
  5. Some of the claims of the advertising may be misleading.
  6. It leads to wastage of resources.
  7. Some advertising create immorality e.g. advertisement on fashion.
  8. Consumers may not be allowed to exercise tree choice.
  9. Advertising can lead to rivalry and unhealthy competition among producers of similar products.
  10. Through aggressive advertising strategy an organization can drive out its competitors thereby becoming a monopolist e.g. coca-cola and 7up.


  1. What is Public Relations?
  2. State five (5) importance of public relations.
  3. Mention eight media of public relations.
  4. Mention and briefly explain the various prang policies.

According to the American Marketing Association “Sales Promotion is defined as those marketing activities other than personal selling, advertising and publicity that stimulates consumers purchasing and dealer’s effectiveness. It is used to stimulate the sales of a product.


  1. Encouragement of seasonal sales
  2. Encourages of stocking of goods
  3. Informs and stimulates the buyers
  4. Introduction of new product.
  5. Appeals to a special segment.
  6. Assisting sales force presentation
  7. Attracting buyers
  8. Encouraging movement of slow selling lines.


Sales promotion strategies may be directed at the consumers in the form consumer promotion or to middlemen in the form of trade promotion.

(a)  Trade promotion: This is a form of promotion in which the middlemen are encouraged to carry stocks of a producer. It is directed to the wholesalers and retailers.


(i)       Special allowance or discounts.

(ii)      Free goods.

(iii)     Sales contest

(iv)     Mystery shoppers.

(v)      Provision of display materials.

(vi)     Cooperative advertising scheme.

(b)     Consumer promotion: This is used to encourage large quantity of purchase by the consumers. It will attract the attention of the consumers to a particular product.


i.        Premium offers

ii.       Free samples.

iii.      Special price sales

iv.      Point of sales display

v.       Exhibition and demonstration

vi.      Personality promotion

vii.      Contest.