Web PixAlamy Local marketing has some drawbacks It can drive up manufacturing

Web pixalamy local marketing has some drawbacks it

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© Web Pix/Alamy Local marketing has some drawbacks. It can drive up manufacturing and marketing costs by reducing economies of scale. It can also create logistics problems as companies try to meet the varied requirements of different regional and local markets. Still, as companies face increasingly fragmented markets, and as new supporting technologies develop, the advantages of local marketing often outweigh the drawbacks. Local marketing helps a company market more effectively in the face of pronounced regional and local differences in demographics and lifestyles. It also meets the needs of the company’s first-line customers—retailers—who prefer more finely tuned product assortments for their neighbourhoods. Individual Marketing In the extreme, micromarketing becomes individual marketing —tailoring products and marketing programs to the needs and preferences of individual customers. Individual marketing is also known as mass customization . Individual marketing (mass customization) Tailoring products and marketing programs to the needs and preferences of individual customers. Exhibit 7.12 Individual Marketing:
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Nike’s NikeID program lets users choose shoe materials, personalize colours, imprint text on the heels, and even size the left and right shoes differently. Getty Images for Nike The modern custom of mass marketing has obscured the fact that for centuries consumers were served as individuals: The tailor custom-made a suit, the cobbler designed shoes for an individual, the cabinetmaker made furniture to order. So, in a sense we are returning to a time-honoured tradition, but employing contemporary technology to improve upon it. Computer databases, robotic production, flexible manufacturing, and interactive communication media have combined to foster mass customization. Today’s marketers have the tools to interact on a one-to-one basis with masses of customers to produce products that are in some way customized to the individual. Companies these days are hyper-customizing everything from food to artwork, earphones, sneakers, and motorcycles. At mymms.com , candy lovers can buy M&M’s embossed with images of their kids or pets. JH Audio in Orlando makes music earphones based on moulds of customers’ ears to provide optimized fit and better and safer sound. The company even laser- prints designs on the tiny ear buds—some people request a kid for each ear; others prefer a dog. Nike’s NikeID program lets users choose materials for their shoes’ tread (say, for trail or street) and upper (Gore-Tex, mesh, or other), pick the colour of the swoosh symbol and stitching, and even imprint text on the heels. Different-sized right and left feet? That, too, can be retooled. On a much larger scale, Harley-Davidson’s H-D1 factory customization program lets customers go
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online, design their own Harley, and get it in as little as four weeks. It invites customers to explore some 8000 ways to create their own masterpiece. “You dream it. We build it,” says the company.
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