My View of Personalization
Business organizations “use the concept of personalization to improve their performance” (Vesanen, 2009, p. 309). However, many marketers have not applied this concept successfully. This has occurred because personalization meanings different things to various actors in the supply chain process. I would define personalization as the process of interlinking marketers and customers. The marketer uses personalization to analyze the customer’s expectations and provide the best products to him or her (Vesanen, 2007). The success of personalization depends on the strategies employed by the marketer. The marketer should conduct frequent studies in order to improve the consumer’s experience.
This discussion explains why personalized marketing can make companies successful. Marketers should examine the costs for the targeted customers (Vesanen, 2007). The company will understand the customer’s needs in order to offer quality services and products to them. The approach will increase the consumers’ trust and eventually boost business performance. Business firms can develop personalized marketing by examining the changing expectations of their customers (Vesanen, 2007). Marketers can also identify the changing socio-cultural and economic factors in order to market their products successfully. As well, the marketer should understand the benefits of personalized marketing. Business organizations should use this concept in order to succeed.
Dynamic Pricing in Personalized Marketing
Different businesses use dynamic pricing (individual-level price discrimination) to market goods to their customers. This practice is likely to “offer enticing opportunities to the company” (Garbarino & Lee, 2003, p. 510). The marketers will make short-term profits before the level of consumer trust decreases. Many people have access to information and new ideas due to the current wave of internet growth. This discussion explains why dynamic marketing is not a good idea in personalized marketing. Every business should have sustainable marketing strategy. The pricing strategy will affect the consumers’ trust and eventually affect performance.
Marketers should follow a consistent pricing policy for all its customers depending on their expectations and needs. Dynamic pricing only makes a company successful for a short time. This pricing strategy does not present a win-win solution thus affecting the level of business performance. This explains why marketers and business organizations should use a consistent pricing policy for all its consumers (Jiang, 2004). This practice will make the business successful because it presents a win-win situation. The company should also have a good understanding and interpretation of personalized marketing. Every company should use the best pricing strategy in order to achieve its long-term goals (Kotler & Keller, 2012).
How Marketing Practices Might Change in the Future
The consumer is becoming sensitive than ever before. Many consumers are sensitive about “price, environmental conservation, climate change, and posterity” (Jiang, 2004, p. 78). This scenario explains why every company should use the best marketing practices in order to become competitive. Personalized marketing is an effective business process because it helps companies sell their products (or services) to their consumers (Kotler & Keller, 2012). One-to-one marketing will be a profitable approach for many companies in the future. This explains why many companies are examining the changing demands of their customers. Some companies like Ford and Mercedes Benz are currently producing fuel-efficient and environmentally friendly cars. This practice will become a critical aspect of marketing in the coming years. In conclusion, every company should have a good marketing mix that focuses on the needs of its consumers.
References
Garbarino, E., & Lee, O. (2003). Dynamic Pricing in Internet Retail: Effects on Consumer Trust. Psychology and Marketing, 20(6), 495-513.
Jiang, P. (2004). The Role of Brand Name in Customization Decisions: a Search vs. Experience Perspective. Journal of Product and Brand Management, 13(2), 73-83.
Kotler, P., & Keller, K. (2012). Marketing Management. Upper Saddle River, NJ: Pearson Prentice Hall.
Vesanen, J. (2007). What is Personalization? A Conceptual Framework. European Journal of Marketing, 41(5), 409-418.