rWCA69-21GE022 Strategic Marketing PDF 2024-25 Module 7

Strategic Marketing 7 – Emerging technology 2024-2025 Olivier Schunck [email protected] 21GEO22A – Strategic Marketing - Module 7 1  Video 21GEO22A – Strategic Marketing - Module 7  Course Outline Marketin...

Strategic Marketing 7 – Emerging technology 2024-2025 Olivier Schunck [email protected] 21GEO22A – Strategic Marketing - Module 7 1  Video 21GEO22A – Strategic Marketing - Module 7  Course Outline Marketing’s A brief history of Marketing Digital & Marketing strategy in the 1 6 Journey and where it stands today Social Digital Era Strategic Basics of Marketing Strategy Emerging AI, Gen AI & emerging tech- 2 7 Marketing explained, step-by-step technology led Marketing Reinvention Customer Customers’ behavior & needs Brand & Brand identity, trust and 3 8 Centricity and distinctive experiences Purpose purpose-driven marketing Research & Customer intelligence driven Responsible Marketing in times of crisis: 4 9 Insights by data/AI & human insights Marketing Sustainable and Ethical Market & Competitive advantage to Agile Resilient & agile marketing 5 10 Competition stand out and innovate Marketing operating models Note: To align to the presentations of guest speakers, the order of modules 5 to 9 has been slightly changed 21GEO22A – Strategic Marketing - Module 7 3  Today’s focus Marketing’s A brief history of Marketing Digital & Marketing strategy in the 1 6 Journey and where it stands today Social Digital Era Strategic Basics of Marketing Strategy Emerging AI, Gen AI & emerging tech- 2 7 Marketing explained, step-by-step technology led Marketing Reinvention Customer Customers’ behavior & needs Brand & Brand identity, trust and 3 8 Centricity and distinctive experiences Purpose purpose-driven marketing Research & Customer intelligence driven Responsible Marketing in times of crisis: 4 9 Insights by data/AI & human insights Marketing Sustainable and Ethical Market & Competitive advantage to Agile Resilient & agile marketing 5 10 Competition stand out and innovate Marketing operating models Note: To align to the presentations of guest speakers, the order of modules 5 to 9 has been slightly changed 21GEO22A – Strategic Marketing - Module 7 4  Economics foundation: Technology as growth engine Evolution of economic growth Along history of humanity, technology innovation has been a key enabler of economic production and transactions. A phenomenal acceleration of economic growth occurred during the Industrial Revolution, coupled with the development as capitalism – with its many different variations – as main economic system. Today, technological and scientific progress continue to drive productivity boosts, new customer experience and reshaping of entire industries/creation of new markets © CORE Economics Education (CORE Econ) licensed under CC BY-NC-ND 4.0 21GEO22A – Strategic Marketing - Module 7 5  Economics foundation: Creative destruction A striking characteristic fact of today’s economic system 52% of companies in the is its dynamism. Over the last decades we have seen Fortune 500 list have how quickly they can be born, expand, contract and die. disappeared since 2020 Schumpeter argued that this economic dynamism was due to the creation of technological improvements by entrepreneurs. He introduces the concept of creative destruction. Old technologies and the firms that do not adapt are swept away by the new, because they cannot compete in the market by selling goods at a price that covers the cost of production. The failure of unprofitable firms releases labor and capital goods for use in new combinations. Joseph Schumpeter Nowadays, creative destruction is most often used to describe (1883–1950) disruptive technologies and innovation Austrian economist © CORE Economics Education (CORE Econ) licensed under CC BY-NC-ND 4.0 21GEO22A – Strategic Marketing - Module 7 6 ASK - How is emerging tech impacting Strategic Marketing? Data analytics Blockchain Artificial Intelligence Augmented Reality Generative AI Virtual Reality Emotion AI Robotics & Drones Influence AI Digital Twins Internet of Things Cyber-security Smart devices 5G / Mobile Wearables etc… 21GEO22A – Strategic Marketing - Module 7 7 Emerging technologies impact Marketing in three ways DATA, AI & BIOMETRICS INTERNET AUGMENTED/ BLOCKCHAIN DIGITAL TWIN ROBOTICS & QUANTUM CYBER GEN AI OF THINGS VIRTUAL REALITY METAVERSE DRONES COMPUTING SECURITY RESHAPED INDUSTRY CHANGING CUSTOMER MARKETING / NEW MARKETS (B2B / B2C) REINVENTED 1 2 3 21GEO22A – Strategic Marketing - Module 7 8 Emerging technologies impact Marketing in three ways......-·····O ILLUSTRATION Drug Discovery Al, EDGE COMPUTING, IoT… AI, EDGE COMPUTIN, IOT… Accelerating the discovery process and saving millions in costs by identification of novel compounds for drug WILL TRANSFORM TRANSFORMS HEALTHCARE HEALTHCARE candidates, biomarker identification and drug repurposing....-·····O Improving Speed &..- Accuracy of Diagnosis Reduce time to check images and O·································································································································································· reduce misdiagnosis rates _.:·····O EHR (Electronic ,. Health Records) Data extraction from free O·································································································································································· text.Diagnostic and predictive algorithms. Clinical documentation and data entry. Clinical decision support _...·····O Robotic Surgery Robotic surgery over a 5G network: robots performing remotely-controlled surgery Clinical Trials www.dls.ltd _.:·····O loT real-time monitoring of patients with sensors.. & wearables. NLP for patient data extraction & matching the patient to a clinical trial. Text mining to inform current trial design from previous trials 21GEO22A – Strategic Marketing - Module 7 9  Emerging technologies impact Marketing in three ways ILLUSTRATION WITH SOCIAL MEDIA CUSTOMER INTERACTIONS MOVED FROM A ‘BOWLING’ TO A ‘PINBALL’ APPORACH Opresnik, M.O. (2017). From Bowling to Pinball: Understanding How Social Media Changes the Generation of Value for Consumers and Companies. 21GEO22A – Strategic Marketing - Module 7 10  Emerging technologies impact Marketing in three ways ILLUSTRATION GEN AI SEARCH IS GOING TO CHANGE HOW COMPANIES OPTIMIZE THEIR BRAND AND ADVERTISING INVESTMENTS Opresnik, M.O. (2017). From Bowling to Pinball: Understanding How Social Media Changes the Generation of Value for Consumers and Companies. 21GEO22A – Strategic Marketing - Module 7 11 Emerging technologies impact all of Strategic Marketing DATA, AI & BIOMETRICS INTERNET AUGMENTED/ BLOCKCHAIN DIGITAL TWIN ROBOTICS & QUANTUM CYBER GEN AI OF THINGS VIRTUAL REALITY METAVERSE DRONES COMPUTING SECURITY 21GEO22A – Strategic Marketing - Module 7 12  Foresight #1 Marketing 6.0 Source: Marketing 6.0: The Future Is Immersive, by Philip Kotler, Hermawan Kartajaya, Iwan Setiawan, 2023 21GEO22 – Strategic Marketing - Module 7 13  Foresight #1 Marketing 6.0 Source: Marketing 6.0: The Future Is Immersive, by Philip Kotler, Hermawan Kartajaya, Iwan Setiawan, 2023 21GEO22 – Strategic Marketing - Module 7 14  Foresight #2 Quantum Marketing From previous evolutions, this era is now driven by exponential disruptions in consumer’s lives, caused by a deluge of emerging technologies. More than 2000 technologies are coming at us each with a humongous disruptive potential. What Quantum marketing means: Quantum marketing is powered by technologies. The past models alone will not be able to explain future reality. The speed, scale and impact of Quantum Marketing are unprecedented. There will be more changes in marketing in the next 5 years than has occurred in the previous 50 years. Source: Quantum Marketing by Raja Rajamannar, 2021 21GEO22 – Strategic Marketing - Module 7 15  Foresight #2 Quantum Marketing Loyalty will be completely transformed as consumers want ne different relationships Advertising will radically change as consumer get hyperconnected The agency ecosystem will be disrupted as traditional lines blur and new business models will emerge. Marketing will be fragmented given its extensive complexity Purpose will move from being a politically correct stance into an essential North Star Ethics and values will gain significant prominence. Trust will be a gigantic competitive advantage. Crises will happen more often, and risk management is critical. Source: Quantum Marketing by Raja Rajamannar, 2021 21GEO22 – Strategic Marketing - Module 7 16  Foresight #2 Quantum Marketing DATA – more than ever before AI (Artificial Intelligence) – the ultimate marketing propellant 5G – a quantum speed upgrade The Future of Quantum Marketing BLOCKCHAIN – Virtual record keeping IOT (Internet of Things-, smart speakers & plenty others – Technology’s big bang AR & VR (Augmented Reality & Virtual Reality) – additional layers improving CX ROBOTICS & DRONES – game changer for the fourth ‘P’ (place/distribution) SCIENCES – multisensory marketing Source: Quantum Marketing by Raja Rajamannar, 2021 21GEO22 – Strategic Marketing - Module 7 17 Data, AI and Generative AI #1 New Tech for Marketing 21GEO22A – Strategic Marketing - Module 7 ASK – Since this morning, in what situations have you come across AI, knowingly or not? 21GEO22A – Strategic Marketing - Module 7 19 AI use cases are all over consumers’ lives 21GEO22A – Strategic Marketing - Module 7 20 20  AI and Gen AI: Key focus for Marketers +25% 73% 63% … in perceived of AI’s …of Marketers already …of CMO plan to importance in driving use or plan to use invest in GenAI marketing success1 GenAI in the next year2 in the next year3 Source: Based on recent researches from 1 Marketing AI Institute, Aug 2023; 2 Salesforce, 2023 and 3 Gartner survey, Aug 2023 21GEO22A – Strategic Marketing - Module 7  AI and Gen AI: Key focus for Marketers Source: AWS, 2022 21GEO22A – Strategic Marketing - Module 7  AI and Gen AI: Key focus for Marketers Value can be achieved gradually – e.g. consumer marketing Source: MaKinsey, 2023 21GEO22A – Strategic Marketing - Module 7 AI and Gen AI: Selected emerging use cases Use case #1 Personalization & tailored experiences Use case #2 Content creation, production and localization Use case #3 Marketing Strategy - Portfolio decisioning Use case #4 Marketing Strategy - Market & Customer research Use case #5 Product & Service Innovation Use case #6 Digital & Social Media Marketing Use case #7 Marketing Optimization 21GEO22A – Strategic Marketing - Module 7  Video 21GEO22A – Strategic Marketing - Module 7 USE CASE #1 Personalization & tailored experiences Starbucks Deep Brew 21GEO22A – Strategic Marketing - Module 7 USE CASE #1 Personalization & tailored experiences Starbucks Deep Brew 21GEO22A – Strategic Marketing - Module 7 USE CASE #1 Personalization & tailored experiences McDonalds Emotion AI 21GEO22A – Strategic Marketing - Module 7 USE CASE #1 Personalization & tailored experiences Chatbots are computer- generated programmes that use AI (AI) to initiate and carry on conversations with consumers. Chatbots are expected to become a primary customer service channel for businesses without ever even speaking to a human. The capabilities of chatbots, however, are not limited to customer service. They can also serve as an engagement Uber driver, lead generator, and can even help with market AI Chatbot research. 21GEO22A – Strategic Marketing - Module 7  USE CASE #2 Content creation, production and localization Heinz Just like humans, A.I. prefers Heinz. Text > image Source: Heinz Ketchup and Think With Google 21GEO22A – Strategic Marketing - Module 7  USE CASE #2 Content creation, production and localization Google Veo Video generation Video 21GEO22A – Strategic Marketing - Module 7 USE CASE #2 Content creation, production and localization Coca-Cola Ad localization 21GEO22A – Strategic Marketing - Module 7  USE CASE #2 Content creation, production and localization Lay’s Deepfake messages 21GEO22A – Strategic Marketing - Module 7 USE CASE #2 Content creation, production and localization ING Arts meets AI Video 21GEO22A – Strategic Marketing - Module 7  USE CASE #3 Product & Service Innovation Video A.I.R Athlete Reimagined Revolutions 21GEO22A – Strategic Marketing - Module 7  USE CASE #3 Product & Service Innovation BMW Generative Design 21GEO22A – Strategic Marketing - Module 7  USE CASE #4 Marketing Strategy - Portfolio decisioning “The capability brings together the perspectives of our customers, shoppers and business to make better, faster decisions that create growth for our business and for our customers” Global VP, Unilever Data Centre of Excellence Unilever Portfolio strategy 21GEO22A – Strategic Marketing - Module 7 USE CASE #5 Marketing Strategy - Market/Customer research Brandwatch AI intelligence 21GEO22A – Strategic Marketing - Module 7  USE CASE #5 Marketing Strategy - Market/Customer research Kantar Synthetic data & AI concept testing 21GEO22A – Strategic Marketing - Module 7 USE CASE #3 Market & Consumer Research Synthetic 10% 14% 26% 32% 18% 21GEO22A – Strategic Marketing - Module 7 USE CASE #6 Digital & Social Media Marketing Google Gen AI search 21GEO22A – Strategic Marketing - Module 7  USE CASE #6 Digital & Social Media Marketing theClueless AI influencer agency 21GEO22A – Strategic Marketing - Module 7 USE CASE #7 Marketing Optimization (budget, execution…) Enable faster and better data collection US retailer and more precise modeling to optimize media spend. New machine learning AI planning helped to proactively identify those interdependencies between channels that potentially drive sales. 21GEO22A – Strategic Marketing - Module 7  AI/Gen AI in Marketing: Responsible use is critical Trust in responsible use of GenAI is low for both consumers and marketers With respect to GenAI, consumers in the US1… …have high …associate …want the concerns in 62% terms of privacy,