1. Lecturer:
Vasiliy
Staros1n,
PhD,
State
University
of
management
(Moscow,
Russia)

2. • Crowded
market
• Increase
in
buying
power
• Emerging
industries
• Wide
range
of
brands
to
choose
from
• A
great
amount
of
info
about
products
Vasiliy
Staros?n
2

3. OLD
system
NEW
system
• Mass
produc?on
• Product
personaliza?on
• Standardized
products
• Personalized
products
• Long
PLC
• Short
PLC
• Average
customer
• Individual
customer
• one-­‐2-­‐many
• one-­‐2-­‐one
communica?ons
communica?ons
• Long
NPD
cycle
• Long-­‐term
rela?onships
Vasiliy
Staros?n
3

4. Mass
offerings
=
Averaged
product
for
Averaged
customer
“In
terms
of
rela1ons
between
company
and
customer,
the
absolute
majority
of
consumers
expect
companies
treat
them
as
an
individual
not
as
a
segment
or
target”
(Brǿndmo,
2004)
Vasiliy
Staros?n
4

5. One-­‐2-­‐one
marke?ng.
Preface

6. • Oversegmenta?on
(Kotler,
2005)
• Customer
variability*
• Syndrome
of
sophis?cated
customer
*
See
Maslow
Vasiliy
Staros?n
6

7. Customer-­‐centric
Customer
focus
Customer
in?macy
Customer-­‐driven
Personal
touch
Individualized
approach
Vasiliy
Staros?n
7

8. The
challenge
for
the
companies
is
the
reten?on
of
customers
instead
of
geRng
new
clients.
CLV
concept
(customer
life?me
value)
Vasiliy
Staros?n
8

9. One-­‐way
interrup5on
marke5ng
is
yesterday’s
message
(Seth
Godin)
• You
are
watching
your
favorite
TV
show
• You
are
reading
an
interes1ng
ar1cle
• You
are
listening
to
the
radio
Vasiliy
Staros?n
(c)
9

10. 1. Marke5ng
simply
meant
adver5sing
2. Adver5sing
needed
to
appeal
to
the
masses
3. Adver5sing
relied
on
interrup5ng
people
to
get
them
to
pay
aDen5on
to
message
4. Adver5sing
was
one-­‐way:
company-­‐to-­‐
consumer
5. Adver5sing
was
exclusively
about
selling
products
6. Adver5sing
and
PR
were
separate
disciplines
run
by
different
people
with
separate
goals,
strategies
and
measurement
criteria
Vasiliy
Staros?n
(c)
10

11. 1. Marke5ng
is
more
than
just
adver5sing
2. You
are
what
you
publish
3. People
want
authen5city,
not
spin
4. People
want
par5cipa5on,
not
propaganda
5. PR
is
not
about
your
boss
seeing
your
company
on
TV!
Vasiliy
Staros?n
(c)
11

12. “The
marketer
with
the
greatest
scope
of
informa?on
about
each
par?cular
customer
with
the
most
extensive
and
in?mate
rela?onship
will
be
the
more
efficient
compe?tor”
(Peppers,
Rogers;
One2one
future)
Vasiliy
Staros?n
12

13. Why
will
you
purchase?
2008
2007
Value
80%
81%
Required
51%
56%
Replacement
30%
30%
Child
wanted
it
21%
26%
Trendy/Fashionable
18%
22%
Influenced
by
friends
4%
4%
Source:
NPD
Vasiliy
Staros?n
13

14. (adopted
from
Ke-nger,
Hachbarth,
1997)
Defining
the
audience
GeRng
the
info
and
geRng
the
info
Compare
Assessing
opportuni?es
alterna?ves
and
competences
Assess
and
making
a
choice
NPD
and
posi?oning
SELLER
BUYER
Order
and
purchase
Deal
and
delivery
Acquiring
the
product
Support
and
post-­‐sale
service
Authoriza?on
and
payment
Evalua?on
and
further
improvement
Evalua?on
and
feedback
14

15. 1. Shifing
from
mass
communica?on
towards
personalized
contacts
2. Customers
become
ini?ators
3. Integrated
approach
4. Ac?ve
customer
involvement
5. Massive
usage
of
IT
15

16. 16

17. Decoding
problems
Feel
the
difference
It’s
all
about
percep?ons

20. One-­‐to-­‐one
marke?ng.
Analy?cal
steps

21. Personaliza?on
involves
tailoring
any
or
all
aspects
of
the
marke?ng
strategy
for
each
consumer.
These
strategic
decisions
could
involve
promo?onal
ac?vi?es
including
adver?sing
(Nuzum,
2002),
distribu?on
(Lardner,
1999),
pricing
(Cortese,
1998;
Stellin,
2000)
as
well
as
the
product
(Rich,
2001).
Vasiliy
Staros?n
21

22. Challenges
Degree
of
customiza?on
Customer
involvement
procedure
Barriers
for
product
personaliza5on
1.
Absence
of
corporate
resources
and
competences
2.
Level
of
customers’
professionalism
3.
Cost
control
and
efficiency
4.
Compe??ve
rivalry
Vasiliy
Staros?n
(c)
22

23. • Economic
environment
Macro-­‐level
• Socio-­‐cultural
issues
• Technology
development
• Compe??ve
environment
• Customer
professionalism
Meso-­‐level
• Demand
condi?ons
• Support
industries
• Resources
and
competences
• Research
and
development
Micro-­‐level
• Product
porkolio
• Corporate
coordina?on
• Customer
involvement
Product-­‐level
• Product
modularity
• Product
life
cycle
Vasiliy
Staros?n
(c)
23

24. Vasiliy
Staros?n
(c)
24

25. Developing
personalized
marke?ng
programs
is
not
limited
only
by
product
customiza?on.
It
implies
adop?ng
all
the
elements
of
marke?ng
mix
to
a
par?cular
customer.
Product
Packaging
Price
Choose
the
most
relevant
elements
for
adapta?on
Process
Promo?on
Personnel
Place
Physical
assets
Vasiliy
Staros?n
(c)
25

26. Product
personaliza?on
methods

27. Vasiliy
Staros?n
(c)
27

28. One-­‐to-­‐one
marke?ng
advocates
tailoring
of
one
or
more
aspects
of
the
firm’s
marke?ng
mix
to
the
individual
customer
(Peppers
and
Rogers
1997;
Peppers
et
al.
1999;
Shaffer
and
Zhang
2002).
The
tailoring
of
a
firm’s
marke?ng
mix
to
the
individual
customer
is
the
essence
of
one-­‐to-­‐one
marke?ng.
Vasiliy
Staros?n
(c)
28

29. • Allows
firms
to
increase
demand
by
contac?ng
customers
that
were
not
served
by
serial
standard
products
• “Allows
firms
to
obtain
the
surplus
from
the
inframarginal
customers,
that
are
willing
to
pay
more
for
products
which
match
their
needs”
(Syam
and
Kumar,
2006)
• Creates
brand
iden?ty
in
terms
of
product
specializa?on
and
generates
brand’s
added-­‐values
• Full
range
of
customers’
benefits
it
terms
of
sa?sfying
their
needs
and
matching
their
expecta?ons
Vasiliy
Staros?n
(c)
29

30. is
a
corporate
philosophy
which
treats
customers
as
individuals
rather
than
representa?ves
of
target
audiences.
Features
Product
Customer
Personal
fit
adapta?on
involvement
Vasiliy
Staros?n
(c)
30

31. Personalized
product
proposi?ons
Day-­‐to-­‐day
Standard
products
Products
Products
with
individual
products
services
assembled
to
order
developed
to
order
Vasiliy
Staros?n
(c)
31

32. Methods
Personalize
services
Customize
product
around
the
product
Customiza?on
implies
physical
transforma?on
of
a
product
while
services
could
be
personalized
by
adap?ng
to
par?cular
customer
Vasiliy
Staros?n
(c)
32

33. Dimensions,
materials,
HARD
-­‐ func?onality,
design,
components
iden?ty
etc.
Consultancy,
assistance,
SOFT
-­‐
components
financing,
warranty,
delivery,
afer-­‐sales
service
etc.
Vasiliy
Staros?n
(c)
33

34. Size and shape
Key dimensions
Materials
HARD –
Functionality
Basic and optional components
Programm components
Authentic and style
Design, interior and exterior
Personal attributes
Identity and uniqness
Packaging
Documentary
Consultancy
SOFT –
Accessibility; availability
Organization and purchase servicing
Purchase conditions
Payment and proceeding
Delivery
Post-purchase service
Vasiliy
Staros?n
(c)
34

35. IT
Produc?on
Marke?ng
Vasiliy
Staros?n
(c)
35

36. Producer
specifies
the
extent
and
components.
Taking
the
responsibility.
Requires
minor
product
Role
of
Market
research.
Number
of
changes.
Design,
packaging,
models
color
and
style
adapta?on.
Creates
visible
effect.
Expert
Cosme?c
Module
Most
popular
way.
Depends
on
product
modularity.
Mixed
Limited
number
of
module‘
variants.
Combining.
Most
popular
way.
Depends
on
product
modularity.
Limited
number
of
module‘
variants.
Combining.
Vasiliy
Staros?n
(c)
36

37. Product
set
is
a
complex
proposi5on
which
stands
as
an
object
of
purchase.
Product
set
includes
physical
product
and
product’
surroundings
as:
services,
purchase
condi5ons,
nego5a5ons
and
any
other
intangible
components.
Individual
services:
addi5onal
ac5vi5es
which
complement
the
purchase.
The
may
include
staff
assistance,
delivery,
final
adapta5on,
warrantee
etc.
Individual
services
depend
on
type
of
the
product
and
nature
of
the
market.
Addi5onal
op5ons:
set
of
op5ons
may
adapt
standard
product
to
the
individual
requirements
of
customers.
In
this
case
the
variety
of
op5ons
is
crucial
indicator.
Individual
purchase
condi5ons:
relate
to
procedures
of
the
purchase.
Sedng
the
appropriate
order
of
purchase
phases
for
making
the
process
adapted
to
par5cular
customer.
Instruments:
nego5a5on
process,
pricing
and
payment,
informing
the
customer
etc
Vasiliy
Staros?n
(c)
37

38. Standard
product
Standard
product
Individual
services
Standard
product
Individual
services
Standard
product
Individual
purchase
condi?ons
Individual
services
Standard
product
Addi?onal
op?ons
Individual
services
Individual
purchase
condi?ons
Addi?onal
op?ons
Vasiliy
Staros?n
(c)
38

39. References
Peppers,
J.
Rogers
J.Pine
M.
Lindstrom
De
Chernatony
M.
McDonald