Sneha Raman

Marketing for Virtual World DIGITAL TECHNOLOGY’S IMPACT ON THE DISCIPLINE OF MARKETING - SNEHA RAMAN GROUP 13 16P071 ANUNAY SHARAN 16P110 SARANSH AGRAWAL 16P135 BHAKTHAVATSALAN ANAND 16P144 KANWALPREET KAUR ARORA 16P191 ARIHANT JAIN 16P220 SAMBHAV JOHARI Digital Technology’s Impact on the discipline of Marketing Contents Introduction................................................................................................................. ..................................................2 Artificial Intelligence in Marketing ................................................................................................................................3 Reach-............................................................................................................................. ..................................4 Act- ............................................................................................................................. ......................................4 Convert-............................................................................................................................................................4 Engage- ............................................................................................................................. ................................4 Internet of things (IoT) in Marketing ............................................................................................................................. 6 Application of IOT: .....................................................................................................................................................7 1. Consumer Application:................................................................................................................. ................7 2. Enterprise:.................................................................................................................. ..................................7 3. Infrastructure Management................................................................................................................... ......7 4. Retail: ...........................................................................................................................................................7 5. Medical & Healthcare: ............................................................................................................................. ....8 6. Transportation: ............................................................................................................................................ 8 Way ahead:...................................................................................................................... ..........................................8 Blockchain in Marketing ............................................................................................................................. .................10 Building up trust with transparency ........................................................................................................................10 Case of Walmart: ................................................................................................................... ..............................10 Case of Everledger: ............................................................................................................................. .................10 Access of customer’s profile by marketer ...............................................................................................................11 Case of Papyrus: ............................................................................................................................. .....................11 Improved output for marketing campaigns.............................................................................................................11 References ............................................................................................................................. ......................................12 1 Digital Technology’s Impact on the discipline of Marketing INTRODUCTION Digital technology has impacted the field of marketing significantly, along with virtually every other discipline in business. The terms of trade have changed for both the organizations deploying marketing strategies and the consumers making much more informed choices than ever before. Big Data & Analytics have played a huge part in providing relevant information to the marketers to observe consumer behaviour and target more specific audience through customised marketing techniques. Consumers on the other hand have become more smart and selective in choosing the right products owing to the enormous information they scourge through digital technology like the Internet. With the advent of technologies like the Artificial Intelligence (AI) & the Blockchains, the activities of the consumers are being readily monitored and made use to make more personalised and relevant marketing campaigns. The Internet of things (IoT) have virtually digitised the way both marketers as well as consumers do business with each other through the inter-connectivity of devices. The 4Ps of Marketing have been thoroughly impacted with the advent of digital technology. A lot more Products have emerged through digitisation especially in the field of e-commerce and services. Prices have become extremely competitive owing to the transparency that the Internet provides. Online channels have become the new Place to do businesses in the future and is almost impacting every field ranging from banking to retail. Online Promotions have become a thing of the present with social media advertising taking the lead. Technology has promoted ‘Integration’ to know one’s clients’ better and ‘Interactivity’ beyond addressability to dialogue. The information based tailoring has led to ‘Individualisation’ and ‘Intelligence’ due to informed strategy. And the thing is here to stay and thrive in future. With more and more consumers readily adopting the technology, it is imperative that innovation in digital technology will decide the market leaders few years down the line. We have already started to see a thrift in consumer purchase patterns from traditional brick and mortar stores to online shopping and what it might sound absurd now may be a pricking reality for businesses who continue in the same lines of doing business traditionally. Consumer adoption in digital devices already give us a clear picture of the way things are meant to be in the future. Major services like Banking have also taken cue and started selling their services online. In this paper we would be majorly discussing upon the 3 major digital technologies which would cause the major amount of disruption in the future, namely:1. Artificial Intelligence in Marketing 2. IoT in Marketing 3. BlockChain in Marketing 2 Digital Technology’s Impact on the discipline of Marketing ARTIFICIAL INTELLIGENCE IN MARKETING Artificial Intelligence (AI) is the ability of machines to perform human tasks through the use of algorithms which ‘learn’ with inputs so as to predict and act with greater accuracy. The applications are endless across a multitude of areas and needs. Moreover, with time, the usage of Artificial Intelligence would only be propelled forward as its predictive power would only be increased. In part, the ready availability of data, the sophisticated means of data collection and the advanced means of multi-channel communication has been instrumental in expanding the use cases for Artificial Intelligence. Marketing is one field where the use of Artificial Intelligence in recording usage patterns and predicting human behavior has a lot of opportunities. Through these insights, Marketers would have a better hold over Consumer Behaviour to help analyze consumption, purchase and switching patterns and aid better decision making. Though the usage of AI is not limited to Digital Marketing, it derives and delivers maximum value in the virtual world. Marketers, in general could use AI over 4 stages, as described by the RACE Framework. [1] Figure 1: The applications of AI over the 4 stages of Digital Marketing The AI Techniques are driven by 3 different kinds of technologies, namely, [2] 1. Machine Learning- A subset of Artificial Intelligence, it learns from Historical Data Sets and clubs the variations across many different variables into fewer, broader variables 2. Propensity Model- This is used for forecasting, based on several inputs, the likelihood of an event to happen. For marketers, it could be used to measure the like propensity of a lead to be converted. 3 Digital Technology’s Impact on the discipline of Marketing 3. AI Applications- These are the applications which could be used to replace the work done by human operators. The 4 stages, Reach, Act, Convert and Engage form the 4 stages of application of AI techniques. Each stage with the respective AI techniques have been explained below REACH- Track online surfing behavior and use Inbound Marketing to attract visitors. Various kinds of content marketing and Search Optimization techniques could be used to engage visitors better 1. AI Generated Content- AI writers are focused towards creation of regular, data-heavy such as market reports, sports news and quarterly financial reports 2. Smart Content Curation- Allows better engagement of visitors by showing relevant content 3. Voice Search- AI assistants such as Google Assistant, Apple Siri, Samsung Bixby and Amazon Alexa could be used to identify and track activity and lifestyle 4. Intelligent Advertising to affect purchase- Propensity Models are used here to effectively target ads to the relevant Target Group ACT- Once the visitors are engaged, create product and service awareness 5. Propensity Modelling- As mentioned, the output of Machine Learning could be used to calculate the likelihood of a purchase 6. Predictive Analytics- The usage of analytics to predict Consumer Behaviour and this could subsequently be used to determine Repeat Purchase Behaviour and drive Pricing Decisions 7. Lead Scoring- Propensity Models could be used to assess the likelihood of a lead to make a purchase 8. Ad Targeting- Usage of historical data to determine the effectiveness of Ads on different groups and at different stages in the Buying process CONVERT- Convert the ‘hot’ leads into customers 9. Dynamic Pricing- Machine Learning could be utilized to determine which customers are likely to purchase without an offer and which ones need a discount to purchase. Thus, sales could be maximized without compromising on the margins 10. Web and App Personalization- AI could be used to customize the offering as per the choices of the consumer, inducing more loyalty 11. Chatbots- These mimic human activities by using Predictive Analytics and answering Consumer Queries without the presence of a human 12. Re- Targeting- Usage of Historical data to drive Repeat Purchases ENGAGE- Keep the customers returning 13. Predictive Customer Service- To prevent Churning, Marketers could use Predictive Analytics to determine which features cause the customers to unsubscribe. 4 Digital Technology’s Impact on the discipline of Marketing 14. Marketing Automation- Machine Learning could be used to analyze the interactions with the customer and determine the most effective ways to initiate contact 15. Dynamic Mailing- Analyze customer past purchase history and customize newsletters accordingly The above techniques, could hugely change the ways Marketers interact with their customers and AI could cause the traditional aspects of Marketing to evolve. It will open a whole new world of possibilities through the varied levels of insights it could provide. With customers also becoming familiar with the uses of AI, consciously or subconsciously, it is increasingly challenging for Marketers to design their 4 stages in order to ‘persuade’ the AI to favour them [3]. AI has the capability to replace humans and in the coming future, would perform routine jobs with a much higher efficiency. AI advancements may also change the concept of who we are and how marketers interact with humans and their technological extensions. Although Technology like this can be very efficient, there are limitations to what AI can do in the field of Marketing. A critical component of successful AI implementation is skilled and capable Human Capital, who can use AI to reach and engage better. The fusion of AI with Marketing can save valuable time, which could be used by marketers to study customers at a much deeper level and perform in the highly competitive market. 5 Digital Technology’s Impact on the discipline of Marketing INTERNET OF THINGS (IOT) IN MARKETING The Internet of things is defined as “the interconnectivity of our digital devices that provides endless opportunities for brands to listen and respond to the needs of their customers – with the right message, at the right time, on the right device”. The Internet of Things also will impact customer experience, the amount of data gained through connected devices and analytics. 51% of the world’s top global marketers expect that IoT will revolutionize the marketing landscape by 2020 according to a research study. [4] After looking at some consumer evolutions, the way marketers will use IoT will be driven around the following: Analyzing customer buying habit across the platforms customers use More and previously unobtainable data regarding the ways consumers interact with devices and products (the “connected devices” themselves) Getting a better insight into the buying journey and in which stage of it the customer is Real-time interactions, POS notifications and of course targeted (and even fully contextual) ads The customer service field whereby issues can be quickly resolved [5] 6 Digital Technology’s Impact on the discipline of Marketing APPLICATION OF IOT: The applications for internet connected devices are extensive. Multiple categorizations have been suggested, most of which agree on a separation between consumer, enterprise (business), and infrastructure applications. 1. CONSUMER APPLICATION: A growing portion of IoT devices are created for consumer use. Examples of consumer applications include connected car, entertainment, home automation (also known as smart home devices), wearable technology, quantified self, connected health, and appliances such as washer/dryers, robotic vacuums, air purifiers, ovens, or refrigerators/freezers that use Wi-Fi for remote monitoring. Consumer IoT provides new opportunities for user experience and interface. 2. ENTERPRISE: The term "Enterprise IoT," or EIoT, is used to refer to all devices used in business and corporate settings. By 2019, it is estimated the EIoT will account for nearly 40% or 9.1 billion devices. Large companies will see a more immediate profit from the widespread automation that IoT devices. 3. INFRASTRUCTURE MANAGEMENT: Monitoring and controlling operations of urban and rural infrastructures like bridges, railway tracks, on- and offshore- wind-farms is a key application of the IoT. The IoT infrastructure can be used for monitoring any events or changes in structural conditions that can compromise safety and increase risk. It can also be used for scheduling repair and maintenance activities in an efficient manner, by coordinating tasks between different service providers and users of these facilities. Usage of IoT devices for monitoring and operating infrastructure is likely to improve incident management and emergency response coordination, and quality of service, up-times and reduce costs of operation in all infrastructure related areas. Even areas such as waste management can benefit from automation and optimization that could be brought in by the IoT. 4. RETAIL: Expectations with regards to customer experience, service, speed and efficiency play a far more important role for today’s channel-agnostic and connected, mobile consumer. While logistics can play a key role in meeting these demands and providing better customer experience and service, there are many other areas where the Internet of Things can help enhance customer experience. From digital signage and self-checkout to smart mirrors: they all can play a role. Some of them are as follows: a. Vending Machines: Connected vending machines will be able to remotely detect and report inventory and maintenance requirements to a control centre. b. RFID tags: These tags are getting smarter with both an RFID tag and a sensor to measure data c. Interactive displays: Shop display screens showing an apparel is triggered by lifting a hanger from a display rail d. Virtual closets: Enable shoppers to browse (and virtually try merchandise) related to what they are wearing or that may be available in other store chain locations e. Smart mirrors: These wall sized mirrors double-up as interactive screens providing customers with more information on what they are trying out 7 Digital Technology’s Impact on the discipline of Marketing f. Smart Dummys: Collects information on customers through facial recognition and time spent around displays g. Self-checkouts: Enables Customers to process their own purchases while also providing live information to merchandising on trends or re-stock requisitions h. Digital signage: Changes messages based on sensor information to direct traffic to various parts of the store i. Connected Cameras: Cameras capture facial data points and use recognition technology to gather information about customers in stores j. Smart shelves: Intelligent retail shelving provides various clever shopping hacks such as digital price labelling and an integrated scale that automatically notifies merchandisers of low stock when the shelf gets lighter 5. MEDICAL & HEALTHCARE: IoT devices can be used to enable remote health monitoring and emergency notification systems. These health monitoring devices can range from blood pressure and heart rate monitors to advanced devices capable of monitoring specialized implants, such as pacemakers, Fitbit electronic wristbands, or advanced hearing aids. Some hospitals have begun implementing "smart beds" that can detect when they are occupied and when a patient is attempting to get up. It can also adjust itself to ensure appropriate pressure and support is applied to the patient without the manual interaction of nurses. 6. TRANSPORTATION: Application of the IoT extends to all aspects of transportation systems (i.e. the vehicle, the infrastructure, and the driver or user). Dynamic interaction between these components of a transport system enables inter and intra vehicular communication, smart traffic control, smart parking, electronic toll collection systems, logistic and fleet management, vehicle control, and safety and road assistance. In Logistics and Fleet Management for example, the IoT platform can continuously monitor the location and conditions of cargo and assets via wireless sensors and send specific alerts when management exceptions occur (delays, damages, thefts, etc.). WAY AHEAD: % OF CUSTOMERS EXPECTED TO PURCH A S E DEVICE In the next years Five years from now More than five years from now Total expected adoption- Smart Thermostat Connected Security System Smart Refrigerator Wearable Fitness Device Smart Watch Self Driving Vaccum Cleaner Smart Clothing 8 Digital Technology’s Impact on the discipline of Marketing The graph clearly depicts that more and more consumers are ready to join the digital fray and hence it becomes extremely important for businesses to change and automate their operations. The IoT in marketing should be about end to end experience optimization. The real power of the Internet of Things in marketing lies in the ability of marketers to think out of the box and optimize for their customers in a much broader way, regardless of touchpoints or stages in the overall customer life cycle. [6] Better listening and engagement are a start. Better service should be a no-brainer, customers see that as a just basic business nowadays. Better end-to-end customer experience is another ball game. And here the IoT can play a role, not just in the context of the Consumer Internet of Things but also in Industrial Internet of Things applications where simple value can be created. Marketers must realize that they need to leave their pure marketing viewpoint of understanding and acting with messages in real-time. They must understand that the customer experience is an end-to-end given and that they need to work with other divisions to remain relevant. For example: how often have you been looking for a parking spot around your favorite mall or store and how easy would it be for that mall or store to set up a small-scale and cost-effective way to let its customers see available parking spots within their favorite apps, maybe even branded? The opportunities for product marketing shouldn’t certainly be overlooked by the way and, in the end, marketing is not the same as marketing communications. 9 Digital Technology’s Impact on the discipline of Marketing BLOCKCHAIN IN MARKETING A blockchain is a distributed and decentralized digital ledger. This ledger is used to record transactions across many systems, so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network. This feature of blockchain allows the participants to verify the transactions and audit them inexpensively. Because of selfinterests of stakeholders these transactions can be verified i.e. transaction in blockchain are authenticated by mass collaboration which is powered by collective self-interests. The result is a robust workflow and hence stakeholder' uncertainty regarding data security is marginal. The use of a blockchain removes the characteristic of infinite reproducibility from a digital asset. It confirms that each unit of value was transferred only once, solving the long-standing problem of double spending. Blockchain has been described as a value-exchange protocol. This blockchainbased exchange of value can be completed more safely, more cheaply and more quickly than with traditional systems. It allows multiple parties to access information and that information is store in a secured, immutable, and decentralized data store. [7] Blockchain will change the paradigm of marketing in following ways: Building up trust with transparency Accessing the customer’s profile by marketers Improved output for marketing campaigns BUILDING UP TRUST WITH TRANSPARENCY One of the problems that many big organizations face is trust. Consumers are skeptical of many things. For example, from where their food comes, from to the factory conditions of where a product was made. It’s a marketer’s job to build trust in the product to be able to sell it successfully. And the quickest way to gaining that trust is Transparency. Many companies are now adopting this strategy of transparency to build up trust among consumers. [8] CASE OF WALMART: Walmart teamed up with IBM on a project to make their supply chain process more transparent. The aim was to use blockchain to digitally trace where their pork products came from, starting at the retailer’s base in China. This boosted the confidence of consumers in Walmart. Information to be stored on the blockchain includes details related to farm origins, factory data, expiration dates, storage temperatures, and shipping hence fraud and inaccuracies are much harder to get away with. Storing processes through blockchain make them tamper-proof and allow for a level of transparency not yet seen. CASE OF EVERLEDGER: Everledger is a blockchain start-up which in 2015 started tracking diamonds through the supply chain in a bid to end the trade in blood diamonds and incentivise consumers to seek responsibly sourced stones. 10 Digital Technology’s Impact on the discipline of Marketing Use of blockchain to build up trust with transparency ACCESS OF CUSTOMER’S PROFILE BY MARKETER A token-based system can give control to users over which ads they want to see, who has access to their personal information and a market determined compensation for their data, attention and actions. In this model, user don’t need ad blocking software because you get to choose which ads you see and you get paid for it. [9] CASE OF PAPYRUS: Papyrus is building a decentralized reputation system for all ad market participants. The system will leverage blockchain to provide increased transparency. It will also improve brand safety, quality of advertisements, and prevent fraudulent traffic as well as unscrupulous players. It will give the publishers greater monetization opportunities. By this brands will also have greater confidence that the ads they created are being delivered to the intended audience. IMPROVED OUTPUT FOR MARKETING CAMPAIGNS Blockchain will help marketers eliminating the middle man/site owners (Facebook, Google). They will be able to directly communicate with end user. Marketers will be able to verify ad delivery, actual performance of ads. It will also help preventing the same ad to be over served to any user. It will also help in identifying the actual influencers. It will also help them in gaining the actual consumer insights. Examples of businesses in this space include adChain, Papyrus, AdEx. [10] 11 Digital Technology’s Impact on the discipline of Marketing REFERENCES [1] Race Framework by Smart Insights- https://goo.gl/1ZCW3W [2] 15 Applications of Artificial Intelligence in Marketing- https://goo.gl/bQS4yu [3] Forbes Magazine, AI is changing marketing as we know it, and that’s a good things https://goo.gl/FbgTn2 [4] https://www.i-scoop.eu/internet-of-things-guide/internet-things-marketing/ [5] https://en.wikipedia.org/wiki/Internet_of_things [6] https://www.i-scoop.eu/internet-of-things-guide/internet-things-retail-industry/ [7] https://www.singlegrain.com/digital-marketing/how-blockchain-is-disrupting-digital- marketing/ [8] http://chiefmartec.com/2017/09/blockchain-marketing-technology-landscape-2017/ [9] https://www.cmswire.com/digital-marketing/blockchain-slowly-moves-into-the-marketing-industry/ [10] https://www.neverstopmarketing.com/first-ever-blockchain-marketing-technology-landscape/ 12