In conventional marketing, ie marketing of 20th century, concentrated more on mass selling.
A million mill produced products being sold to millions of people out there. But, in the 21st
century, this scenario has been changing. Sales of many popular products suddenly started
falling which required a change in the way each product was being depicted.
That’s when market segmentation emerged on the horizon. Market segmentation is an
important concept because it lets the business segregate a broad market into smaller groups or
segments which can be easily concentrated on. This is based on the principle that not all the
products available in the market are applicable to everyone.
For example, a fast food chain restaurant concentrates more on teens and young adults more
than on someone who’s in late 40’s or 50’s. A life insurance company will concentrate more
on 30 to 50 year olds rather than concentrating on teens and kids. This is simply because,
each of their priorities is different and hence, the kind of attention they require would also
Nowadays, many sellers are not only catering to segmented markets, but each of the customer
is also being treated as a separate market in himself. The notion each customer is unique to
the point that his or her needs as well as their ideas about a product or service and the kind of
value that they expect from the product differs. And this gives rise to the concept of
customerization or customized marketing. In other words, the consumer specifies exactly
what he or she wants and the seller or manufacturer makes the product. Dell Computers is a
classic example of customization. People calling in Dell specify what’d they expect in a
computer and what goes into their computer. For doing this consistently over many years,
Dell is considered as one of the best companies with regards to customer satisfaction. And at
the same time, Dell made millions of Dollars in profits over the years.
We can see this pattern emerging in many other sectors and taking different forms per se. A
recent ad of Allen Solly is an example. You can customize your apparel by choosing the
color and the design that you want online, pay for it and they’ll be delivered to your door
step. In the same way, some mobile carriers are offering plan where you can customize
everything ranging from the number of calls, number of text messages, the amount of data
usage, etc. All these customizations can be considered as attempts of reaching out closer to