Explain why it is important for marketers to understand the concepts Essay

Explain why it is important for marketers to understand the concepts of market segmentation and target marketing - Essay Example Market segmentation has over time been regarded as one of the fundamental concepts in modern marketing. The segments formed are thus constituted by consumer groups who have similar requirements, as well as groups of services and goods that exhibit similar attributes. Ideally, market segmentation concept has been largely associated with Wendell R. Smith, in the paper he first he first published in the year 1956 (Kim, Park, Lee & Lee, 2006). According to him, "Segmentation is based upon developments on the demand side of the market and represents a rational and more precise adjustment of product and marketing effort to consumer or user requirements† (Flint, Woodruff, and Gardial, 2002). In this respect, therefore, segmentation is viewed as being disaggregative in regard to its trends and effects in bringing about recognition of various demand schedules where only one was initially recognized. The concept of market segmentation is dependent on the recognition of differentiated product demands, whereas its application as a tool for marketing is dependent on the effectiveness in identifying the most befitting variables which can be used to divide total demand into segments that are economically viable (Freytag and Clarke, 2001). The segments that are economically viable could be seen as having the sufficient size that enables the marketers to attain sufficient level of profit through catering to certain needs of the members therein. According to Yankelovich and Meer (2006), "the idea that all markets can profitably be segmented has now received almost as widespread acceptance as the marketing concept itself". This notion is shared by Kim, Lee and Koh (2004), who note that market segmentation relies on the idea that there is need for the company to divide or segment the market in a manner that enables the achievement of certain sets of buyers. The sets of buyers, or the resu ltant