Abstract
M.Com. (Marketing Management)
Companies in the industrial sector, where merchant banks generate
80% of their returns, are the best source of business for these
banks. Because merchant banks' markets are largely restricted to
the industrial sector, market segmentation of the industrial
market and the concomitant assessment of the needs of the market
are vitally important. The aim of this study was to develop a
workable model for merchant banks, on the basis of which they may
segment their markets meaningfully and simply, and may assess
their clients' needs within the markets.
with this aim in view, the first step was to gather background
information on merchant banking, subsequent to which a
theoretical analysis of market segmentation was carried out.
The market research carried out, consisted of two parts. The
first part entailed developing a computer model that could do
market segmentation by combining the existing sources of
information within the merchant bank and those of outside bodies.
Internal sources used were the accounting and marketing records
of merchant banks' own clients.
External sources reflected the demographic, psychographic and
geographic information on merchant banks' markets and the
enterprises within these markets. These consisted of databanks
of the BFA-NET (The Bureau of Financial Analysis, University of
Pretoria), the Central Statistical Service, Bureau of Market
Research (UNISA), McGregor's "Online Database" and the
Johannesburg Stock Exchange...