a customer, a market

One customer and one market--from complete market segmentation to customized marketing

Every customer in the market has the potential to become a potential independent market. We call it a complete subdivision. Customized marketing is based on market segmentation, and further provides personalized products and services for the specific needs of individual consumers. For example, design clothing and watches in full accordance with the preferences of consumers; build villas according to individual design; develop training plans according to the needs of enterprises. Customized marketing is a more accurate target marketing, which is more targeted than the target marketing in the usual sense, so that it can better meet the needs of customers. Customized marketing can more firmly grasp the target group.

But one of the questions before us is that when the market is subdivided into everyone, do we still have economies of scale?

We all know that only large-scale standardized production can make the production cost of the product lower, and is this complete market segment economic? Some people say that "target marketing is a kind of helplessness that succumbs to economies of scale in terms of customized marketing." This is quite reasonable.

The key to developing customized marketing is how to resolve the contradiction between customized marketing and large-scale production.

Today, advances in technology have made custom marketing possible. After the 1990s, the wide application of digital control systems in the production field has solved the contradiction between individual customization and scale production, namely “flexible production technology”. Flexible production through digital control technology can produce hundreds of different specifications and styles of products on the same line, which makes custom marketing possible.

Another way to meet the needs of customized marketing is “combination technology”, that is, because many products and services are actually composed of various components or elements, the consumer's personality needs often only appear as a few components and elements. Different needs, some are even differences in combination. Therefore, the production of components and elements can still be batched and scaled, and the scale effect problem in custom marketing can be solved by simply combining the later combinations according to the specific needs of the customers. For example, Dell provides brand computers according to the customer's individual needs. The main reason is that the computer hardware can be configured according to the requirements of the customers. The production and procurement of various computer hardware can be batch-produced.

If there is no flexible production technology, then there is no big development in custom marketing – as we said in the article “How industrial products are market segmented”, only when there are not many customers in the market and the needs are clear. Full subdivision is feasible.

Glossary:

Customized marketing, also known as "individual marketing" or "one-to-one arketing," is a new type of marketing strategy developed in the late 1990s.

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