Assignment;
PERSONALIZED MARKETING
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.
