This document discusses how artificial intelligence is impacting marketing. It begins by defining artificial intelligence and how AI uses deep learning and data processing to perform tasks. AI is being used in marketing for data collection, analysis, and customized communications. The document then discusses how consumer behavior has changed with cognitive websites, increased customer loyalty through product recommendations, and changes in buying habits due to voice assistants. Businesses are changing their marketing strategies using AI, such as content-creating chatbots, find-and-replace tools, and asset recommendations. Examples are given of how Starbucks and Nike use AI for personalized experiences. The document concludes by discussing how COVID-19 will encourage more personalized shopping experiences using AI for marketing, targeting, and advertising.
2. 1
INTRODUCTION TOARTIFICIALINTELLIGENCEAND ITS
IMPACT ON MARKETING
• Artificial Intelligence:
Artificial intelligence (AI) lets computers learn from experience, respond to new
data, and perform human-like tasks. From chess-playing machines to self-driving
cars, most AI examples you hear about today depend heavily on deep learning
and data processing. Computers are designed to comprehend complex tasks
using these technologies by processing vast volumes of data and finding trends in
the data.
• Influence on Marketing:
Artificial intelligence systems are used by AI marketers to make automated
judgments that may influence marketing practices data collection and
analysis, additional audience and economic activity insights. AI is also used in
marketing campaigns where pace is important. AI tools use data and user
information to understand how to best communicate with consumers, then
provide them with customized communication at the right time without
intervention from marketing team members, maximizing optimum productivity.
3. 2
CONSUMER BEHAVIOUR HAS SHOWN DRAMATIC
DIFFERENT IN BUYING PRODUCTS
• Fully cognitive websites change buying behavior of the customer. For these websites, we see a purchaser's
average spending per session rise dramatically. Cognitive sites send users into a much smarter pipeline,
encouraging them to shop before consumer fatigue tends to set in or distracts the user.
Rise in customer expenditure
• To discover consumer insights that inspire loyalty, AI is able to use machine learning. An ample number of
unsuitable product options has drained digital consumers. They are more likely to stick with that approach if
they can find an online solution that can recommend items they would like. AI is capable of satisfying this
demand from customers.
Increased customer loyalty
• While face and fingerprint detection will help customers to place orders faster than ever, as well as more
easily access their devices, AI-driven voice processing technology will enable them to communicate with
digital assistants to respond effectively and get closer to the items they want.
Changes in buying habits of consumers
4. 3
BUSINESS HAVE CHANGED THEIR MARKETING
STRATEGIES INACCORDANCE TOAI
Content creating chatbots
• Based on the user, Chatbots have exposure to millions of data points. To detect patterns, identify
trends, and anticipate triggers of an individual's issues, they will aggregate location-specific
requests. This makes them better than representatives of any human customer service as well.
Find-and-Replace Tool
• For several firms, transition is a constant, such as branding revisions, acquisitions, mascot
updates, new launches, etc., leading to small but regular design improvements. When AI
continues to grasp template files, such as InDesign and Photoshop, AI models will be able to
learn to make all kinds of improvements effortlessly.
Asset Recommendations
• AI will help the organization forecast the efficiency of certain assets based on the priorities of the
campaign and classify assets that will be more valuable based on campaign characteristics,
target categories, season, etc. To continually reinforce its accuracy, the business should feed the
performance back into the AI engine while it analyzes the impact of these promotions.
5. 4
STARBUCKSAND NIKE HAVE STARTED USINGAI IN
DIFFERENTWAYSTOATTRACTTHEIR CUSTOMERSAND
PROVIDE PERSONALIZED EXPERIENCE
• Starbucks is a brand that collects and
analyzes customer information using its
loyalty card and mobile app. Back in
2016, they announced plans for
personalization. The app records the
specifics of sales, including where and at
what time of day they are made. To
process this information and provide
consumers with customized marketing
messages, Starbucks uses predictive
analytics. These messages include tips as
they approach a local store as well as
incentives aimed at increasing the
average order value of the customer.
• Nike launched a system in 2017 that
allowed clients to design their own in-
store sneakers. The "Nike Makers
experience " enables clients to put on
blank Nike Presto X sneakers and
select their own graphics and colors.
The system then shows the template
on the blank shoes using virtual reality
and projection systems. On the
sneakers, the designs are printed and
available to the client in about 90
minutes.
Starbucks Nike
6. 5
COVID-19 WILLENCOURAGE MORE COMPANIES TO
USEAI FOR PERSONALIZED SHOPPING EXPERIENCE
Use AI for marketing to build stronger
customer relationships.
•AI provides a competitive edge in a post-
pandemic environment, where the world
will be competing to sign up clients and
more importantly retain loyal clients. As a
marketer, we need to share the correct
messages to the correct networks at the
right time. A clever idea during a
pandemic when in person meetings
might not be viable is to use AI, with
simple Natural Language Processing,
they can respond to questions and
connect visitors with the right people as
needed. To ensure the correct degree of
customer engagement, AI can help us
prepare ideal communications,
determine their quantity and pick
channels.
Usage of AI and intelligent segmentation
to define the target market and include
content customized to its needs for each
segment of the target group
•A significant spike in people using E-
Commerce for their shopping needs has
been noted since the pandemic. AI and
Predictive Analytics allow advertisers to
accurately identify the best target
demographic based on the patterns of
the customers. This helps to summarize
who customers are and create a
category for the main target group &
demographics and send them tailored
marketing messages. After getting the
message meant for them, AI will also
assist in deciding the steps for consumer
satisfaction from individual
demographics.
Artificial intelligence to empower
advertising
•AI uses machine learning in order to
evolve and enable real-time changes that
influence advertisements. It is impossible
to forecast the exact effects of
incidents such as the COVID-19
pandemic, but AI will help us monitor and
foresee those conditions, as well as
provide us with the essential data to
continue. Features such as
recommendation engines, virtual reality,
image recognition, dynamic pricing of
items, etc. AI software is even more
embedded into advertisements in a post-
COVID-19 environment. Ten years from
now, it is predicted that most advertisers
will rely on AI to make the correct
promotional decisions.
7. 6
Artificial intelligence, without
constant human intervention,
can create personalized
marketing campaigns and
increase customer
interaction. It is necessary,
however, for a company not
to breach privacy standards
and to clearly state terms in
the agreement in order to
prevent any potential conflict.