Marketing: Strategic Innovation in Globally Diverse Markets Essay

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Praxis II: Marketing in the 21st Century

Marketing: Strategic Innovation in Globally Diverse Markets
December 23, 2012

This paper will explore the potential evolution of the role of consumer marketing. I will examine the role of the retailer and the consumer on the Internet and the vital changes retailers must incorporate to stay competitive in the marketplace. In addition, I will discuss the role of personalized marketing, traditional advertising versus online advertising, changes in the marketplace attributable to globalization, the implications of interpersonal communications, and management of the 5Ps.

Personalized Marketing
Personalized marketing (sometimes referred to as one-to-one marketing) is the
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For example, a customer may go to a car dealer and do not see the car they would like on the lot. Therefore, a car is ordered with exact specifications and because of the specialty requirements the price of the car increases, making the transaction profitable for the business.
Dynamic pricing enables the business to increase the price on an item; strengthen customers’ allegiance, along with enhancing customer satisfaction. Carroll & Coastes (1999) state that economics define price discrimination as the practice of charging multiple prices for the same good where the difference in price is based on a difference in demand rather than cost. There are three degrees of pricing models commonly used in the retail marketplace: * First-degree price discrimination – different prices are charged based on what the buyer is willing to pay * Second-degree price discrimination – offers a variety of pricing options * Third-degree price discrimination – market-segmentation pricing (Garbarino & Lee, p. 498).
From a business stand point, first-degree price discrimination is more profitable because it obtains the maximum value of the item. However, from a consumer stand point second-degree price discrimination can offer more value to the customer. It allows customers to choose the pricing option that will work for them, based on their desires and requirements.
Online Retailers versus Offline Retailers
The materialization of
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