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...

M.Com. (Business Management) / Please refer to full text to view abstract

M. Com / The 200 years of South African banking history has been a turbulent mix of crisis and triumph. Banks have had to respond to changes in their environment ranging from wars and the discovery of gold and diamonds, to regulatory changes, disinvestment and township bond boycotts. With the phasing out of sanctions, international opportunities started to emerge and South African banks were quick to respond. International and local competition has increased and it has become necessary for banks to put more emphasis on obtaining a competitive advantage. Optimists like to speak of South Africa as the "powerhouse of Africa" and the natural investment home for foreign investors wanting a foothold in the African market. It has therefore become necessary to do a "SWOT" analysis (Strengths and weaknesses, opportunities and threats) to be able to formulate a competitive strategy. • This dissertation comprises of an environmental analysis which includes a study of the macro-environment, international environment and the analysis of Porter's five basic forces. This environmental analysis leads to the establishing of local and international competitive strategies. South Africa has a competitive edge on other countries of its size and development levels in the sense that it has a very adaptable economy. The fact that South Africa is seen as the "gateway to Africa" should be exploited by South African banks. The changing and uncertain environment in South Africa must be seen as an opportunity for international departments of commercial banks to enrich themselves and their employees. This dissertation has shown that local banks do not have an advantage over international banks. From this follows a recommendation that local banks should develop and maintain a competitive advantage and focus on African business.