The individual customer proposition You are the right customer that we like to develop a relationship with and

you appreciate the suppliers approach. Your expectations rise, feeling special expecting customization in product / price and you will be disappointed due to the standard treatment or you have to choose from an enormous series of variants, you cannot determine the ideal solution together with the supplier. "Confronted situations" Much complexity When company processes inefficiency. So we must look for a method that combines economies of scale and flexibility or we will have to grow towards a new economic order geared towards control of and reduction in, complexity. It is valuable for the customer.
- Individualization is ok when Feasible for the supplier.

1-Customisation: Is hardly ever addressed, the focus is usually on the relation of the CRM system and the develop of customer knowledge.

Customization is one of the building blocks of CRM which must be further described, customer perspective must play a central role and product- oriented thinking will be shifted to the background. - What value can we supply to the relationship? - How can we differentiate the product so it meets some individual liking? Peppers, Rogers and Dorf 99 "Customers, do not want more choices. They want exactly what they want when, where, and how they want it". So the best solution will need to be determined jointly, it requires reasoning from the stand point of the customer instead of the product, customer behaves and what are his problem activities? Can we make it easier to him and successful? Any activities can we perform better than customer? What product will result success? *F. 7.1 / 144 Bugle (2002) Value supply to its customers collection supporting purchase decisions, inventory updated alerts for consumption or sale, file assistance with background info, software packages link customer to the central system, more knowledge in the value processes to the supplier about the customer to make them more effective

or perform them better than customer thats make us learn what is customer preferences, appropriate purchase, sales, consumption decisions. Ex: on line supermarket "Peabody" part of "a hold group" van asseldonk 1998, has advanced inter active search programs to help customer create the virtual supermarket that is best suited to them, the shelf space plans, the depth and breadth of the ranges adapter to individual preferences shopping list greated and saved, learning from each interaction and visit, a valuation asked, positive feedback to provide additional free charge services and info. Helping customers manage the process. 2-Individualisation of the product offering Supplying customization = demand on our production system. Economic society many products in large-scale, production facilities expensive and inflexible, variable production cost are low, customization place pressure on the production system to provide heterogeneous offering, stocks are necessary to satisfy customer demand quickly. Production cost management cost, complexity will result system reliability. - Gilmore and pine proposed the mass customization and individualization 1990 within the borders of the existing system.

- Van asseldonk goes one step further by offering recommendation for a different order. Both solutions are examined in the following two subsections. *Mass customization "Gilmore and pino" The idea of mass cust = the idea of production variants within mass production But customer info leads to provide tailored product. Line flexibility is a must, no stock, fast react to anticipate customer wishes. Note: no inventory = cost disadvantages (customer wait long time) F. 7.2 / 146 *The technological differences between mass services production and mass customization are considerable. 4 separate approaches to supplying customization:Based on customer explicit wishes not correct we need the right mix under the right circumstances. *Cosmetic:Product adjustment (representation) presenting a standard product in a variety of ways to different customers, suitable if the customers use the product in the same way

and the only differences in the product presented, packaging, sizes, sales materials terms and conditions, product's name, location, prescribed usage. *Transparent:Adapts the product, adaption is made invisible by giving all products the same appearance, provide the individual customers with the customized product without informing them explicit suitable when wishes are easily predictable or when customer like changes. *Collaborative:Both the product and representation are adapted, by differences in its features always maintain a dialogue with individual to form the need, products are made to order. Cost due to fewer complete product kept in stock. *Adaptive:No adaption for both, just offers one standard product designed that users may adapt it to suit their own needs. One product serving different purpose under different circumstances. Ex. lighting system by Lurton electronics for both reading and romantic during use

*The right St.:1- Companies forced to product adoption collaborative St. - This avoids having product adaption after production - Inventory cost are minimized no finished goods in stock 2- Companies provide standard product easily tailored or adapted by the customer himself adaptive St. 3- Mass customization cosmetic standard product satisfy the majority one form to the individual wishes. 4- Separate customer needs transparent by following his behavior this need luxury of time to deliver. Sometime combination St is desirable, ex: data vision tech. redo tapes "system with customer profile help to produce it specific in different packaged" interaction led to collaborative form then appearing customer name on the label and during the tape introduction is cosmetic three St for effective and relevant marketing massage. *Customization in the supply chain:Lampel and Mintzberg (1996) their categorization indicates to what degree the supply chain provides customization. Fully customer oriented value chain, customers integrated for word (7.3 /149) to the level of the design.

 Standard products are supplied. Individual customer desire is not integrated as far as the lowest layer in the chain. Ex: soup in restaurant kept in stock until the order comes. The semi-finished product will be used in the right time Limited stock level. *To evaluate the potential for mass customization in the customer-driven part of the chain useful point determine number of dimensional processes that involve only a single dimension easier to customize than three dimensional. - One dimention manufacture the shaft of a golf clup. We saw a metal rod the proper dimension, we place a quid so it easily adapted for digital control. - Two-dimention medium printing and its tech "leser tech" to print two totally different pages next to one another. - Three dimention is not flexible and if its work the dimentions are limited. Ex: numeric all driven lathe make 3 dimentions objectives, expensive, slow and difficult to control. * Mass individualization according to "Van Asseldonk" customization is not the final destination it is limited to product and services that may be individualized by

adaptation during the final phase of production. Ex: pizza customization desired in all levels. How we manage complexity and changeability involved mistakes in orders loss of effects of economic of scale production cost coordination cost ex: planning transport activities (CH,) "more org. planning required less technocratic". - There are structures and routines at work in the underlying behavior. - Not necessary to offer an infinite number of combinations to customer for customization. - It is sufficient to know the path that the customer will follow at a certain time and during a certain opportunity. "Use customer info in real time situations" counter balancing the solution to reduce complexity. *the cells operates relatively independently and adapts itself to the changing even their relation is adjustable continuously no traffic light only round about. *A note in the margin:Current tech can support large scale of customization for reasonable prices and times, this will happened only if it involves a few features of a couple of products, purchase care, digital products, online services, luxury items, retail trade "early relation with customer then producers".

3-Individualised pricing policy:Customers will not have the same valuation for the proposition shall we charge average price lower profitability or charge expensive prices and let the customer pay for it. To prevent this possibilities experience has been acquired on:"Internet multi channels environments revenue management". *Possibilities to implement a precision pricing policy A- thanks to e-commerce E-commerce brings pricing models within reach. Ex: customer pay first to gain possession of the product but internet charges for the use of the product, charge per pages from books. - Supplier set the price not customer. - Not the custom to give certain product or services away for free in order to make him purchase or pay for the following-up services. Ex: give first CH. free. - In commodity markets actions bring groups together customers and suppliers. Quality on the internet determined on the basis of uniform product code (standards).

- Price is adjusted to each segment. Prepared to pay at a certain point in time. - Precision pricing policy need discounts adjustment lead to less manageable jumble of price and will have to be computerized to a great extent, and explained to customer intrans parent environment. - Value proposition elements grouped for price considering discount, rate of use an way it will never be the completely new pricing models that count but the system enrichment. B- Thank to it We have better means of testing at our disposal. On internet simple to measure, adjust price + time, demand changes measured, price elasticity of groups measured. This knowledge useful for further policy priced. No need to publish price list or catalogues Greeting customer profile wishes, groups Price determination according to capacity and stock. Note: price sensitivity "P. ISS" The Risk:1- Drop in turnover 2- Purchase volume will decrease 3- High prices customer readiness to pay is lacking 4- Price sensitivity

5- High price to loyal customer financial result Note: never lose sight of customer acceptance *Revenue management:Is the skill of maximizing yield by differentiating the price and by allocating parts of the available product capacity across the various price classes? To develop if this system required a great deal of info to determined flexible price at certain point of time. Ex: 1500 flights 220 seats 330 day and it's applied effectively if:1- Supplier work on flexed capacity. 2- Inventory is transient. 3- Fixed cost high. 4- Modifying capacity cost is. 5- Sales and service cost to customer is minimal. 6- Denad segmented into groups homogeneous in price + quality 7- Customer prices acceptance 8- Services sold in advance or reserved and demand fluctuates sharply. *The principle of revenue management:F. 7.4 / 157 Marshallian demand curve shows the relationship between sales and price equilibrium price miss out customer prepared to pay when value is more

than price paid different price policy turnover capacity, revenue. *Formulating a revenue policy:Collocating capacity to segments and determining prices per segment F. 7.5 / 158. Demand prediction is a starting point. The minimum lost minute flights low price And The maximum booking curve capacity higher price class