BY

SANDEEP MANDAPAKA

RAMAKRISHNA REDDY.K

AJAY BABU GOPALUNI

MASTER OF BUSINESS ADMINISTRATION

(INTERNATIONAL BUSINESS)JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY

HYDERABAD

CUSTOMERIZATION- THE NEXT REVOLUTION IN MASS

CUSTOMIZATION

MASS-CUSTOMIZATION

Mass Customisation is the customisation and personalisation of products and services for individual customers at a mass production price.

E.g-General Motors

CUSTOMERIZATION

•Customerization is transforming the practice of marketing from being “seller-centric to being buyer-centric.” •Customerization let customers specify their own prices. Eg-Dell

ONE-TO- ONE MARKETING AND PERSONALIZATION

One-to-one marketing is approaching customers individually and desigining products according to their specificiation.

Personalization is “customizing some feature of a product or service so that the customer enjoys more convenience, lower cost, or some other benefit.”

THE NEXT REVOLUTION IN CUSTOMERIZATIONEarly customization efforts were in the

form of “made to order” but it turned to flexible manufacturing systems i.e,

Mass Customization /Customerization. E.g- General Motors. In developing strategies for

customerization a company should be guided by not only customer wants and needs but also by operational capabilities.

Differences between Personalization, One-to-One Marketing, and Customerization

Personalization One-to-One

Customerization Marketing Locus of control- Customer/Firm Firm Customer Customer co-design- Low Low High Prior data about customers- Low High Moderate Links to production/ supply systems- Low Low/Moderate High Links to customer systems- Low Moderate High Does it require build-to-order system?- No No Yes

DIFFERENCE BETWEEN CUSTOMERIZATION, MASS CUSTOMISATION, ONE –TO –ONE

MARKETING , PERSONALISATION

CUSTOMERIZATION PARADIGM

POTENTIAL BENEFITS OF CUSTOMERIZATION

For Customers-• Better meets their needs and wants and solves their problems.• For a significant segment, the benefits of

customization is worth a premium price.For Firm-• Best protection against the commoditization of

your products.• Reduces/eliminates inventory.• Provides opportunities for better value-added

services

INTEGRATING MARKETINGSTRATEGIESBy maintaining database of loyal

customers using CRM.Sending personal e-mails to potential

customers about latest updates by maintaining database of customers.

E.g-amazon.comInviting customers to their stores. E.g-Levi’s

THE CHALLENGES OF CUSTOMERIZATIONKnowledge Exchange with Customers.Identifying Intangible Dimensions.Higher Customer Expectations.Limiting the Options Offered to

customers.Pricing.

IMPLICATIONS AND CONCLUSIONCustomerization is a critical aspect of

the emerging new marketing paradigmRequires an effective integration of

marketing, operations,R&D, finance, and information.

Growing influence of the Internet and globalization, have major implications.

It is a “win–win proposition” for both customers and businesses.

REFERENCESBrynjolfsson, E., & Smith, M.D.

(1999).Delbridge, R. (1998).Fetzinger, E., & Lee, H.L. (1997).Fisher, M., Jain, A., & MacDuffie, J.P.

(1995).Hart, C.W. (1996). Huffman, C., & Kahn, B.E. (1998).www.dell.co.inwww.Google.co.in

QUERIES ?.......