Marketing Management-Basics – Assignment

Submitted by,
Name- Akshay Zutshi
Roll no.- 06
Course- PGDM (2019-21)
Submitted to- Dr. D.N. Murthy Sir

ARTIFICIAL INTELLIGENCE (AI) IN MARKETING

Ask 10 different experts to define AI for you, and you are likely to get 10 different definitions.
But my favourite is from Demis Hassibis, co-founder and CEO of Google DeepMind. Demis
Hassibis, in simple terms defines AI as, “the science of making machines smart.”  AI is simply an
umbrella term for making machines “smarter” and giving them human-like capabilities. It has now-
a-days become a critical part of the technological industry.
From a marketing perspective, it is easier to understand by looking at specific challenges and use
cases. For example, let’s consider the case of an e-book.
Whenever a person downloads an e-book, a set of algorithms or rules are defined by the marketer
that tells the machine what to do next (i.e., if the user downloads the e-book, the send a two-part
email).
But what’s going to happen if there are 100,000 downloads, across various identities, that
originate from different channels, and require personalized emails and website experiences based
on the user history? That’s where artificial intelligence comes in and takes these kinds of data-
driven, complex tasks and makes them look easy. But AI doesn’t just stop here. It uses machine
learning to continuously evolve its actions. To put it in more simpler terms, it learns, it gets
smarter, and it creates its own algorithms.
Artificial Intelligence- Hidden in Plain Sight:
 Facial recognition is used by Facebook, to recommend who to tag in your photos.
 Netflix uses machine learning to constantly adapt and personalize its movie and show
recommendations, and manufacture shows based on subscriber viewing habits and
preferences.
 Natural language processing, natural language generation and machine learning is used
by google to recommend three-to-five-word responses in the Gmail app and power smart
reply, which predicts which words you will want to type next.
Need of AI in Marketing:
Artificial intelligence and machine learning are an increasingly integral part of many industries,
including marketing. Artificial intelligence not only helps marketers in executing their
marketing strategies but are also used to form one. Artificial intelligence is a very important tool
for marketers as it removes the occurrence of human errors like delay, biased approach, and
other petty errors. Here are some ways in which AIM (Artificial Intelligence Marketing) helps
the marketers:
 Create compelling messaging that connects with customers.
 Knowing how customers are reacting to a company’s brand at all times.
 Leverage open content to supplement data and profiles

Ways in which AI is helping to enhance the digital marketing experience:

 Enhanced user experience: When the content is relevant to the user, they are more likely
to convert and become recurring customers and be loyal to a brand. Artificial intelligence
can help with that in its ability to collate data and decide which content is the most
applicable for an individual based around things like historical data, location, and past
behavior. In the retail sector, we already see advancements in augmented reality that allow
customers to ‘try on clothes’ without even entering a clothing store. Voice search
technology is also a great AI tool that can help digital marketers get faster results.
Companies can now write their website to coincide with virtual assistants like Alexa,
SIRI, and Google Home.

 Predict Customer Behaviour: With a myriad of data management platforms collating

second- and third-party data, AI can now crawl the internet collecting information about
your customers. This data can help to personalize your services to their needs
automatically, through user-journeys and profiles. This enables marketers to target
potential leads and rule out those who will be unlikely to convert. With these processes in
place, businesses can spend more time creating and executing effective marketing
strategies. AI is continuously collecting, interpreting, and analyzing data to get smarter at
utilizing it for marketing purposes

 Customer Support in Real-Time: When customers shop online, they expect quick
responses and resolutions from businesses. AI chatbots help to deliver these experiences in
real time. Chatbots can be programmed to use terms that make them seem more “human-
like,” and they can answer basic questions, fulfill orders, and help solve simple issues.

Examples of AI in Marketing:
 Chatbots: Chatbots are designed to serve one or more purposes to the customers. For
example, a chatbot operating in a chat screen of a website, or a bot operating in any social
networking website’s chat box. National Geographic lets you chat with Albert
Einstein on Facebook messenger to raise awareness of the launch of its new original
series Genius.

 Dynamic Pricing: Dynamic pricing (often referred to as personalized pricing) is a

pricing strategy where the price is determined depending upon the demand, the
availability and the profile of the customer. AI technologies are even used to decide and
design personalized offers based on customer profiles.

 Business Forecasting: One of the challenges marketers face is how to predict the exact
future of the business or a product using a complex set of inputs under tight time
constraints. Many machine learning processes have been designed to automatically learn
patterns in the numerous data inputs and help marketers to predict the future of anything
they want to.

 Audience Targeting and Segmentation: For marketers to reach their customers with
the level of personalization that many have come to expect, they need to target
increasingly granular segments. AI can be used to achieve this. Drawing on the data that
marketers already have about their customers, machine learning algorithms can be trained
against a “gold standard” training set to identify important variables and common
properties, and even pick out incorrectly identified contacts. The extent to which
marketers can segment their consumers comes down to the data that they have –
segments can be as simple as gender and age, or as complex as past behaviours and
buying personas.