Marketing 0

Product and Service
Marketing technology is not only valuable for improving customer
interactions but also for enhancing the core products and services.
Trends toward online shopping and personalization give rise to the
concept of mass customization and co-creation. Everyone wants
products custom-made for them with their initials, color choices, and
sizes that fit their body measurements. From Gillette to Levi's to
Mercedes-Benz, companies are extending their product lineup by
offering customization options.

---

Dynamic pricing should also be in place to match the vast
customization possibilities. In the services business, the role of
custom pricing is even more apparent. Insurance companies provide
the option to select the coverage that suits individual customer
needs, which will be reflected in the pricing. Airlines may determine
the pricing based on multiple variables, not only general
information, such as current demand level and route competition,
but also individual travelers’ customer lifetime value. Technology
also enables the “everything-as-a-service” business model for
previously big-ticket purchases such as enterprise software or a car.
Predictive analytics can also be useful for product development.
Companies can assess the risk of current plans and estimate market
acceptance. For instance, PepsiCo used analytics provided by Black
Swan to analyze beverage conversations trends and predict what
products in the pipeline have the highest likelihood of success (see
Chapter 9
).