The Role of Personal Marketing for Unique Products Order Instructions: the writer has to read the instructions very well and most importantly, he has to focus on the following aspect:
• The role of personalized marketing (sometimes called one-to-one marketing), where companies strive to create a unique product offering for each consumer. But must also pay attention to the entire details of the paper read carefully the instructions.
Over the next four weeks, you will utilize assigned articles listed on each week’s Resources page to explore the different topics for your Research Paper. Each week’s Application page will present a series of questions pertaining to a specific article. You do not have to answer the questions directly, but they are included to guide your reading and to assist you in discovering the necessary information for completing the research paper.
After reading “What is Personalization? A Conceptual Framework,” by Vesanen, consider the following questions:
• Based on your reading, what is your view of personalization?
• Would personalized marketing benefit companies?
• How should firms go about developing personalized marketing?
After reading “Dynamic Pricing in Internet Retail: Effects on Consumer Trust,” by Garbarino and Lee, consider the following questions:
• Is dynamic pricing (i.e., individual-level price discrimination) a good idea in personalized marketing?
• If so, what kind of price discrimination (first, second, or third degree) is most appropriate?
• If not, should marketers follow a consistent pricing policy for all consumers?
Using the information you have read and any other outside resources that you have found, prepare a summary (3 pages minimum) of how these topics relate to the overall subject you are addressing in your paper. Remember to refer back to the main task of this paper, which is to describe how you believe the usage of the individual marketing mix variables is likely to change in the future and what companies must do to adapt their marketing approaches in order to achieve competitive advantage.
In particular, focus on the following aspect:
• The role of personalized marketing (sometimes called one-to-one marketing), where companies strive to create a unique product offering for each consumer.
Remember to include any references (incorrect APA format) you might have used in your research.
The Role of Personal Marketing for Unique Products Resources
• Articles
• Garbarino, E., & Lee, O. (2003). Dynamic pricing in Internet retail: Effects on consumer trust. Psychology & Marketing, 20(6), 495–513. Retrieved from Business Source Premier database.
This article discusses individual price discrimination, particularly on the Internet, as well the effect this type of pricing has on the trust level of the consumer.
Vesanen, J. (2007). What is personalization? A conceptual framework. European Journal of Marketing, 41(5/6), 409–418. Retrieved from Business Source Premier database.
The new buzzword in marketing is personalization. This article presents a framework for the concept of personalization as this term tends to be defined differently by different marketers, causing confusion.
• Avlonitis, G., & Indounas, K. (2007). An empirical examination of the pricing policies and their antecedents in the services sector. European Journal of Marketing, 41(7/8), 740–764. doi:10.1108/03090560710752384
After surveying 170 service companies regarding factors that influence and determine to price, the authors conclude that a unique combination of environmental and organizational characteristics affects each individual pricing decision.
• Balabanis, G., & Diamantopoulos, A. (2008). Brand origin identification by consumers: A classification perspective. Journal of International Marketing, 16(1), 39–71. doi:10.1509/jimk.16.1.39
This paper focuses on the ability of consumers to identify the country where an item is produced, the factors that help or hinder the identification, and the consequences of the brand origin on consumer behavior.
Calantone, R., & Di Benedetto, C. (2007). Clustering product launches by price and launch strategy. Journal of Business & Industrial Marketing, 22(1), 4–19. doi:10.1108/08858620710722789
In this research, the author’s study over 200 new product launches to look for similarities in launch strategies and methods of pricing.
The Role of Personal Marketing for Unique Products Sample Answer
Personal Marketing
Introduction
When the term marketing is used the first thing that comes to the minds of many is advertisements or other related promotional activities conducted by the manufacturer and distributors of a product with the aim of reaching as wide an audience as possible. In light of this widely accepted view of marketing, the concept of personalizing the process seems at best alien and completely out of place. Personal Marketing however does just that. Marketing has gradually been moving from a product or price orientation to a more customer-centered process. Personal Marketing is the preparation of a product’s design, packaging, and promotional activities in a manner that is targeted at an individual consumer rather than the masses. This can, therefore, be said to be the highest form of customer-centric marketing. This is because the marketing efforts are geared towards enticing a specific prospective or current consumer to purchase a specific process. This is different from market segmentation or the creation of a niche market. With personal marketing, the target is the individual and not a group of individuals with similar characteristics of importance to the marketer (Vesanen, 2007).
The Role of Personal Marketing for Unique Products and A personal view of Personalization
According to me, personal marketing is a company’s way of reaching out to an individual client whose purchase or purchases will bring about considerable benefits to the organization. For such companies, the power of customers is very high in Porter’s Five Forces analysis. The transactional behavior of individual customers has a direct impact on the turnover of the business entity. It is a marketing strategy that needs to be prudently carried out by individuals who have the perfect mix of product knowledge, creativity and persuasiveness so as to ensure the objective of this promotional activity is realized. If this mix is achieved proactively, personal marketing is sure to succeed where conventional marketing has failed to yield fruit. It is important to note that the individual in this context is not necessarily an individual. It may also be a corporate client whose purchases are carried out between the entity of the company and the customer as two parties.
The Role of Personal Marketing for Unique Products and the Impact of Personal Marketing to Companies
Personal Marketing is bound to benefit companies since it helps to bolster the relationship that they have with their customers. On the part of the customers, satisfaction will increase and this improves their perceived value of the product thus leading to more purchases. This then translates to higher turnovers and increased profits for the companies engaging in personal selling. The fact that communication between salespersons and the customers is two-sided means that there is a provision for immediate feedback which is quite important to the product developers and sales department.
The Role of Personal Marketing for Unique Products and The development of personal marketing
The first step that firms need to do in developing personal marketing strategies is to understand the needs and value systems exhibited by specific customers. Since marketing is being formulated to suit a specific customer, it is important to ensure that the product in question meets all of these needs. These include issues like the quantity, quality standard, timing, pricing, payment schedule, the usability of the product, the frequency of deliveries and any other special aspects of the products that will be relevant to the customer being targeted (Balabanis and Diamantopoulos, 2008).
The Role of Personal Marketing for Unique Products and Pricing in Personal Marketing
When it comes to the pricing of products in personal marketing, it is necessary to employ dynamic pricing over fixed pricing. This is because the customer is treated as an individual and the price plays a large part in this process (Garbarino and Lee, 2003). A customer may be willing to make bulk purchases so long as the price is within their budget. Other customers will also determine value by basing it on the price of the product whereby higher prices suggest greater value. This is particularly important when goods or services of ostentation are involved. At times the goods being marketed are not necessarily luxurious but highly specific such as military hardware for a specific government’s army. In such a scenario the price set will depend on the economies of scale that will be realized by the customer’s orders as well as the budget (Calantone and Di Benedetto, 2007).
The Role of Personal Marketing for Unique Products and The degree of price discrimination applicable
The most appropriate approach to price discrimination is the third degree of price discrimination (Avlonitis and Indounas, 2007). This price discrimination method is favorable for personal marketing since the basis for the setting of the price is based on the customer’s preferences, geographical location and other subjective factors that can only chance from entity to entity. As stated above, personal marketing is meant to tailor the promotional effort in such a manner that elicits a positive reaction on the part of an individual customer rather than an entire group of potential customers. Third-degree price discrimination will be the result of the back and forth communication between the sales department and the specific customer. The price will be set in such a manner that it strikes a compromise between the profitability goals of the business and the ability and capacity of the customer in question.
The Role of Personal Marketing for Unique Products References
Avlonitis, G., & Indounas, K. (2007). An empirical examination of the pricing policies and their antecedents in the services sector. European Journal of Marketing, 41(7/8), 740–764
Balabanis, G., & Diamantopoulos, A. (2008). Brand origin identification by consumers: A classification perspective. Journal of International Marketing, 16(1), 39–71.
Calantone, R., & Di Benedetto, C. (2007). Clustering product launches by price and launch strategy. Journal of Business & Industrial Marketing, 22(1), 4–19.
Garbarino, E., & Lee, O. (2003). Dynamic pricing in Internet retail: Effects on consumer trust. Psychology & Marketing, 20(6), 495–513
Vesanen, J. (2007). What is personalization? A conceptual framework. European Journal of Marketing, 41(5/6), 409–418.
