Virtual Techniques in the Marketing Process: VDC-Whitepaper

Whitepaper
Virtual Techniques in the Marketing
Process
Applications – Examples – Potentials
© Competence Centre for Virtual Reality and Cooperative Engineering w. V. – Virtual Dimension Center (VDC)
Dr.-Ing. Dipl.-Kfm. Christoph Runde
Virtual Dimension Center (VDC) Fellbach
Auberlenstr. 13
70736 Fellbach
www.vdc-fellbach.de
Applications – Examples – Potentials

Market & Environmental
Analysis
Target Definition SummaryIntroduction Strategy MissionMarketing-Mix MissionMarketing Monitoring
Challenges
Global markets
Individualization, Mass Customization
Exploding number of variants
Staging large, heavy, complex goods
Mastering cross media, Multi-channel
marketing
Analysis
Target Definition SummaryIntroduction Strategy Marketing-Mix Marketing Monitoring
New simulation and visualization
methods
Increasing mobile computing
power
Internet availability
Digital development process
chains as data suppliers
Chances
marketing
Fast product changes; shortening time-to-
campaign
Differentiation compared to competition
Increased expectations of consumers/
customers regarding presentation/
visualization
Communication of hidden (e.g.
technological) competitive advantages
2
chains as data suppliers

Analysis
Virtual techniques in marketing process – Application fields
1. Market and environmental analysis
Competitive analysis: Benchmarks
Customer analysis
Virtual Store
Tests & Presentations
Customer dialogue
3. Strategy definition
Virtual engineering in product development
Customer integration with VR
4. Marketing-Mix
Variant development
3D and VR for print, web,
Analysis
SummaryIntroduction Strategy Marketing-Mix Marketing MonitoringTarget Definition
3
2. Target definition
Order hedging and
mass customization
Creativity support
Customer integration with VR
Overcoming digital gap
High-tech image
3D and VR for print, web,
point-of-sales, digital signage
in communication
Virtual sell-in, virtual training and
virtual store in distribution
5. Marketing mapping
Virtual store/ test/ training for verifying
target achievement

Analysis
Competitive analysis
Objective: assessment of the goals,
strengths, weaknesses of relevant
competitors
VR (Virtual Reality) and AR (Augmented
Reality): virtual benchmarks: comparison
of own (still virtual) designs with
Image: Volvo
Hall with entering
possibility for trucks
Marktforschung & UmweltMarket & Environmental
Analysis
of own (still virtual) designs with
competitive products
Comparative presentation (VR)
Interfering presentation (AR)
Image: Volvo
Image: Volvo
Large Powerwall for
1:1-visualisation
Comparison in front of
Powerwall
4

Analysis
Customer analysis – Consumer habits
Virtual packaging tests
Design packaging, labels, etc.
Test in 3D environments, e.g. virtual
supermarket (subject: "Virtual Store")
Variation and evaluation of the packaging
design during runtime
Image: Wurzel-Medien
Label design for a water
bottle during its design
phase
Analysis
design during runtime
Customer test: e.g. gaze analyses possible
Secret tests of new products, hidden from
competitors, failed approaches remain
confidential
Some systems use the grip of a shopping cart
to navigate in 3D scenes
Wall Street Journal: 50% reduction of product
testing time
Image: SCA Packaging
Image: SensoMotoric Instruments
Supermarket simulation
Stereo-3D-glasses with
integrated eye tracking
5

Analysis
Customer analysis - Demands
Virtual representation
Selected test users: dialogue; recording of
further requests
Product tests and acceptance tests based on
virtual prototypes
Image: KOP
Dialogue with
customer based on
architecture design
Analysis
virtual prototypes
Variant comparisons prior to the creation of
physical, haptic prototypes (thinning variants)
Examination points e.g.:
Design
User interface, operation
Image: HLRS
Image: ESI Group
Hybrid driving simulator
(with virtual dashboard)
Project implementation
Gabler
6

Analysis
Customer analysis - Expectations
Virtual customer dialogue
3D web platforms or virtual worlds
Independent selection and
configuration
Statistical evaluation of preferences
Image: LumoGraphics
Individually created
variant of a bus in 3D
Analysis
Statistical evaluation of preferences
Dialogue through avatars, which are
controlled by employees (e.g. Second
Life)
Image: Mercedes-Benz
Mercedes-Benz branch in
Second Life (closed in
2008)
7
Own choice of clothes
and backgroundImage : Macy's Passport
99

Analysis
Customer dialogue – Aspects VR/AR
Free and immediate changeability of the
product
Variety of compilations
Variety of possible scenarios/ backgrounds of
application
Vehicle stagingImage : DS 3DXcite
Analysis
application
Equally variable: colors, materials, geometries,
haptics, ...
Image: Miele
Dialogue based on the
look at a virtual
product
Haptic programmable
controller
Application Cockpit
Application equipment
technology
8
Images: Immersion

Analysis
Target definition – Indicator customer satisfaction
Development of a customized product (Mass
Customization)
Superior, attractive products (see also section
“Strategy”)
Development of only technically possible/
Image: LumoGraphics
Interior view: gaze in
configured bus
Target Definition
Development of only technically possible/
available orders
Image: LumoGraphics
Image: LumoGraphics
Representation of truck
variants
3D elevator configurator:
selection mask
9

Analysis
Target definition – Indicator innovation capability
Creativity support with VR/ AR
Fast visualization of sketches
Fast sketching in 3D without media breaks
Integrate customer ideas from virtual customer
dialogue
Image: Fraunhofer IAO
Volume creation and
freeform surface design
in a CAVE
Target Definition
dialogue
Integrate ideas of employees
Image: SensAble
Imageer: Fraunhofer IAO
3D sketching
Sketch architecture,
inspection in VR
10

Analysis
Target definition – Indicator customer orientation
Statistical evaluation of customer preferences
on online platforms with 3D
Web-enabled 3D configurators
Image: Lightshape
Product configuration
and navigation with
tablet-PC
Target Definition
Image: LumoGraphics
Image: DS 3DXcite
Selection of color and
material during
configuration
Car configurator
11

Analysis
Target definition – Indicator employees engagement/ satisfaction
Overcoming the digital gap by means of 3D
visualization: intuitively understandable
Use of collaborative 3D platforms
o Large projections
o Planning tables
Image: Visenso
Planning office with
various multimedia
systems
Target Definition
o Distributed virtual environments
o Collaborative Augmented Reality
Image: VDC
Image: ESI Group
Schematic representation
of distributed virtual
engineering
Common AR-working
space by means of Head
Mounted Display
12
Work using a
planning desk:
arrangement
planning in surgery
Image: TU Wien

Analysis
Target definition – Indicator image
Use of the high-tech image of VR for own
representation
Trade fairs, other events
Showroom
Sales room
Image: Immersight
Use of Head Mounted
Display at fair
Target Definition
Sales room
Reception area
Image: Adidas
Image: bluelemon Interactive
Magic Mirror
for shoe fitting
AR-X-ray view in a Unimog
13

Analysis
Strategy definition – Superior, attractive products
Market research (user survey) identifies the following
perceived advantages of VR application: Competitive advantages through
Support of success factors
Faster and more efficient processes
Higher planning quality and reliability
Cost savings through error reduction and
thus avoiding consequential costs
In detail:
(sequence based on relevance): increased transparency of complex products and thus reduction
Strategy
Early cost determination, late cost incurrence
Increase of planning security and cost influence
by moving planning activities forward
(sequence based on relevance): increased transparency of complex products and thus reduction
of errors, improved internal communication (inter-divisional), VR as a discussion platform for
technical questions, increase of product quality, reduction of iteration loops in product
development, optimization of product development process, intuitive interaction with the product,
improved product understanding through immersion, scaled inspection of the products in early
development phases, reduction of physical prototypes, improved integration of the individual
development phases, increased product acceptance, improved external communication (data
exchange), improved handling of high product variance, more creative product development
process [Klocke, F.: Vorsprung durch Virtual Reality; Eine Studie über den industriellen Einsatz von
VR. Aachen: Fraunhofer-Institut für Produktionstechnologie IPT, 2003]
14
(sequence based on relevance): visualization of malfunctions, visualization of product functions, identification of customer
requirements, offer preparation, operating ergonomics, design optimization, generation of design alternatives, quality
improvements, time reduction of development, cost reduction [Decker R.; Bödeker, M.; Franke, K.: Potentiale und Grenzen von
Virtual Reality-Technologien auf industriellen Anwendermärkten. Possibilities of virtual reality technologies, University Bielefeld. IM
Information Management & Consulting (2002) Band 17 ]
Leston, J.; Ring, K.; Kyra, E.: Virtual reality. Business applications, markets and opportunities. London: Ovum Ltd. 1996

Analysis
Strategy definition – Superior, attractive products
Offer impeccable products designed for their complete life
cycle: massive frontloading
Desired products of the customer
Minimization of product recalls
Strategy
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Image: xxx
xxx
15
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Analysis
Strategy definition – Superior, efficient processes
VR/AR-based fast, secure product development
that takes all relevant aspects into account
Image: ESI Group
Constructibility analysis
at the virtual prototype
Strategy
Image: Aberdeen Group
Change costs/ change
possibility in product
development
Change costs in
product development
depending on product
complexity
16
Image: TU Ilmenau
Image: Eversheim 1995

Analysis
Strategy definition – Superior customer relations
Creation of the offer together with the
customer
Inclusion of all wishes/ requests
Immediate statements on feasibility, price,
delivery date, ...
Image: DS 3DXcite
Customer dialogue using
a 3D-configurator
Strategy
delivery date, ...
Integrated solutions: initial configuration at
home; detailing on site
Image: KOP
Image: ESI Group
Presentation and
discussion of architecture
design
Project implementation
Trumpf
17

Analysis
Product policy
Objectives virtual engineering
o Fast development cycles as an active process
element
o Early feedback report
o Emphasis on early phases of development
Image: LumoGraphics
Visualization of
commercial vehicle
Marketing-Mix
o Development of alternative product concepts
o Decide the product specification
Thereby also: longer pursuit of promising
product variants in the development
Tool presentation for
Festool
Photorealistic textile
visualization
18

Analysis
Communication: Print
Digital creation of print media
3D-model for High-End-Renderings:
Photorealism
Transparency, insights: provide new insights;
show the hidden/ functionalities
Image: Viisenso
Virtual surgery room:
representation for
KLS Martin
Marketing-Mix
Difficult camera positions are feasible
Exploded views
Not only presentation of the design is possible,
but explicitly the technology
Presentation of future/ past, comparison
Image: Lightspahe
Digitally created color
variants of a punch
Visualization of water, tap
19

Analysis
Creation of marketing material already during the
product development process (based on digital
prototypes)
reduction of time-to-campaign
Avoidance of expensive photoshoots at distant
places
Image: Lightshape
Visualization of the
interior of a
passenger car
Marketing-Mix
places
Product changes easy to understand
Easier secrecy of prototypes
Reuse 3D-environment data in re-designs and
facelifts
Print catalogues are getting interactive using AR
(monitor plus webcam plus print catalogue)
Image: Lightshape
Image: metaio
Visualization bathroom
Print catalogue,
interactive through
gesture detection by
means of a webcam
20

Analysis
Target Definition SummaryIntroduction Strategy MissionMarketing-Mix MissionMarketing MonitoringMarketing-Mix
Representation of various,
digitally created variants in
printed catalogue
21

Analysis
Communication: Web
Digital media creation: image, film
Web configurators, interaction:
possibility for customer dialogue
3D-information source with low entry inhibition
threshold (anonymous information possible)
Can be operated/ retrieved by customers themselves
Image: DS 3DXcite
Marketing-Mix
Fashion: realistic
presentation of material,
form, deformation
Can be operated/ retrieved by customers themselves
(without 3D-experience)
High-End-Renderings
Video extraction
Animations and tracking shots
Multimodal additional information
Usable on modern devices
(tablet PC, smartphone)
Image: DS 3DXcite
Platform-independent
3D-configurator (Ford)
Commercial configurator
(tablet) and professional
system (car dealership)
22
Image: DS 3DXcite

Analysis
Communication: Web
Interactive (simple) product configurators
(specific configuration logic)
Access restrictable for user groups: exclusivity
Integration with order system (delivery
capability/ time)
Marketing-Mix
Image: bitmanagement
Fashion:
web-3D-configurator
capability/ time)
Prototypic:
Use of Augmented Reality (AR) and webcam
Gesture detection for interaction
Image: DS 3DXcite
Automotive:
position, form and
color of seam
23
Image: Westfield
Virtual garment
fitting in web with
Augmented Reality

Analysis
Communication: Point of Sales (PoS)
Interactive presentation of the product
Secure common understanding
Easy presentation of variants
Presentation of virtual product in operation
Increase information density,
Image: DS 3DXcite
Marketing-Mix
Audi digital showroom
in London
Increase information density,
especially understandable presentation, even
of complex relationships
Provide detailed insights
Customer creates individual product: product
configurations by using the expert version of
the configurator
Image: NIKE
Image: Kimberly-Clark
Application of
autostereoscopic display
Tridelity in
NIKE-Flagship-Store
24
Design merchandising in
retail
(here: baby care)

Analysis
Communication: Point of Sales (PoS)
AR installations e.g. in use at “Toys´R Us”
Animated LEGO model is displayed on the
sales packaging
Customer adjusts the desired perspective of
the model
Interactive LEGO-Box
Marketing-Mix
Virtual fitting of clothes, shoes with AR is
content of research projects
Usage of virtual mirrors
Image: metaio
Image: Cisco
Interactive LEGO-Box
at “Toys R Us”:
application of
Augmented Reality
Augmented Reality:
vision „Magic Mirror“
25

Analysis
Communication: Digital signage
Display of changing static or dynamic content
on digital ads in the store or outside (such as
airports)
Extension of the duration of attention with
autostereoscopic 3D displays
Image: DS 3DXcite
Screen in shop-context
Marketing-Mix
Image: Tridelity
Image: Tridelity
Displays without the
necessity of using glasses
at the airport by Tridelity
Portrait format
displays at fair
26

Analysis
Communication: Fairs & Events
Virtual product presentation
Secure common understanding
Complex and big products
Show product virtual in operative mode
Individual presentations; costumer can create
Marketing-Mix
Image: ESI Group
VR-fair stand
Motek 2011
Individual presentations; costumer can create
his own specific product
Provide detailed insights in an easy way
Saving transport costs for large and complex
goods (e.g. machines)
Better secrecy possible, presentation of critical
details can be restricted to selected contacts
27
Image: Visenso
VR booth
Knowledge Base
Image: Imsys
Customer guidance
Powerwall

Analysis
Show concept with VR and/ or AR
Use of AR in a stage context
Possible set-up
oMarker plus mobile camera plus pantomime
actor or
oTracked camera plus one separate screen
Image: Visenso
Booth for Magma
(casting simulation)
Marketing-Mix
oTracked camera plus one separate screen
lateral in each case
Advantages:
o Presenter is integrated in 3D model
o Audience can see presenter plus 3D model on
a screen
o Presenter interacts with audience
Image: metaio
Image: metaio
Explanation of
chassis components
by means of AR
AR entertainment show
for Toyota
28

Analysis
Target Definition SummaryIntroduction Strategy MissionMarketing-Mix MissionMarketing MonitoringMarketing-Mix
/ŵĂŐĞ͗ ^/ ʹ /͗/K
29
Booth for Optima Group at
the fair Interpack 2011:
Trade fair concepts may
include fixed time slots for
the presentations. The
serving and the collection of
3D-glasses has to be
organized. Another option is
the use of disposable
goggles. The audience can
additionally track the 3D-
scene using simple screens.
Due to the light-swallowing
effect of the 3D-filter a
darkening may be required͘

Market Environmental
Analysis
Distribution: Sell-In
Sell-In: collection sales,
marketing to wholesaler/ intermediary
Production of entire collection as sample parts
is too expensive
Useful, if there are many variants or models
Image: DS 3DXcite
3D-visualization
shoe collection of
Adidas by DS 3DXcite
Marketing-Mix
Useful, if there are many variants or models
which have to be discussed with customers or
within the company
Staging
Combination of new outfits
Image: DS 3DXcite
Image: DS 3DXcite
3D-presentation
collection in shop
Different
outfit visualizations
30

Analysis
Distribution: 3D-Configuration
Marketing-Mix
Exemplary
configurations of
commercial vehicles at
Daimler.
Modern 3D-
configurators are using
variant management
systems which can
manage the product
diversity and the huge
combinatorics ´./ŵĂŐĞ͗ ƵŵŽ'ƌĂƉŚŝĐƐ
31

Analysis
Distribution: Training sales staff
Training of sales staff
Application of serious games techniques
Interactive imitation of scenes
Variable dialogue [the avatar´s reaction
can be adjusted]
Image: blog.venuegen.com
Scene 3D-sales talk
Marketing-Mix
can be adjusted]
Objective success monitoring
Free change of variables
Possibility for integration of gestures and
facial expressions
Image: Zone2Connect
Image: Zone2Connect
Scene 3D-sales talk for
Vodafone
Logical modeling
Dialoog
32

Analysis
Distribution: Virtual store
Shop design – such as virtual supermarket
1: 1 simulation of the PoS scene
New option for testing: Efficiency of marketing
within the store, comparison possibilities
Cheaper than field trials
More flexible, faster: swift change of scenarios
Image: Visenso
Design car dealership –
external view
Marketing-Mix
More flexible, faster: swift change of scenarios
Variations of boundary conditions at runtime
- Shelves full/ half full/ empty
- Product placed on top/ centred/ at the bottom
- Market full/ half full/ empty
Stronger control:
all environment variables controllable:
weather, light, competitor activities, supply
bottlenecks, ...…
Image: Visenso
Image: Kimberly-Clark
Design car dealership –
internal view
Presentation of a
supermarket design
33

Analysis
Marketing monitoring: Target achievement of marketing instruments
Image: Vision Critical
Supermarket simulation
Marketing Monitoring
Virtual Store:
virtual tests packaging, sales support, store
design
Virtual Test:
product acceptance test based on virtual
Image: Kärcher
Image: Zone2Connect
Discussion based on
a virtual product
3D-training environment
for sales staff
34
product acceptance test based on virtual
prototypes
Virtual Training:
success monitoring of active person
training/ test environments

Analysis
Summary
Numerous VR applications in the
communication channels and as a working tool
in marketing
Application is linked with many benefits
Possibility of early access to development data;
Fashion-
visualization
Analysis
Target Definition SummaryIntroduction Strategy Marketing-Mix Marketing Monitoring
Possibility of early access to development data;
coordination with development departments
(data supplier) is essential
More and more industries can be provided
with 3D technologies, even those that are
traditionally more difficult to visualize (e.g.
textiles)
Image: metaio
Image: Vision Critical
Augmented Reality:
LEGO model displayed on
sales packaging
3D representation of
a supermarket in
environment context
35

Analysis
Summary virtual techniques in the marketing process
Overview application fields
Analysis
Target definition SummaryIntroduction Strategy Marketing-Mix Marketing Monitoring
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VDC members and partners regarding this topic
37

dŚĂŶŬ ǇŽƵ ǀĞƌǇ ŵƵĐŚ ĨŽƌ ǇŽƵƌ ŝŶƚĞƌĞƐƚ͊
zŽƵ ĂƌĞ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ƚŚŝƐ ƚŽƉŝĐ ĂŶĚ ǇŽƵ ĂƌĞ ůŽŽŬŝŶŐ ĨŽƌ ĐŽŶƚĂĐƚ ƉĞƌƐŽŶƐͬ ŝŵƉůĞŵĞŶƚĂƚŝŽŶ
ƉĂƌƚŶĞƌƐ͍ WůĞĂƐĞ ĐŽŶƚĂĐƚ ƵƐ͘
© Competence Centre for Virtual Reality and Cooperative Engineering w. V. – Virtual Dimension Center (VDC)
Virtual Dimension Center (VDC) Fellbach
Auberlenstraße 13
70736 Fellbach
www.vdc-fellbach.de

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Virtual Techniques in the Marketing Process: VDC-Whitepaper