Minor Project

On
“Does artificial intelligence adds advantage to contemporary marketing
practices”

Submitted to
Amity University Uttar Pradesh

In partial fulfillment of the requirements for the award of the degree

of
Bachelor of Business Administration
in
International Business
by

SHASHWAT SHUKLA

A1833318033
Under the guidance of

Dr. Nitin Arora, Professor

AMITY INTERNATIONAL BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

DECLARATION

I , Shashwat Shukla , student of BBA (IB) hereby declare that the project titled “Does
artificial intelligence adds advantage to contemporary marketing practices” which is
submitted by me to Amity International Business School, Amity University Uttar Pradesh,
Noida, in partial fulfillment of requirement for the award of the degree of Bachelor of
Business Administration in International Business, has not been previously formed the basis
for the award of any degree, diploma or other similar title or recognition.

The Author attests that permission has been obtained for the use of any copyrighted material
appearing in the Term Paper other than brief excerpts requiring only proper
acknowledgement in scholarly writing and all such use is acknowledged.

Date:

Shashwat Shukla

A1833318033

BBA-IB-21 (2018-21)
ACKNOWLEDGEMENT

The satisfaction that accompanies that the successful completion of any task would be
incomplete without the mention of people whose ceaseless cooperation made it possible,
whose constant guidance and encouragement crown all efforts with success. I would like to
thank Prof. (Dr.) Gurinder Singh, Head of Department-AIBS, and Amity University for
giving me the opportunity to undertake this project. I would like to thank my faculty guide
Dr. Nitin Arora who is the biggest driving force behind my successful completion of the
project. He has been always there to solve any query of mine and also guided me in the right
direction regarding the project. Without his help and inspiration , I would not have been able
to complete the project. Also I would like to thank my batch mates who guided me, helped
me and gave ideas and motivation at each step.

Shashwat Shukla
A1833318033
BBA-IB (2018-21)
Section-E
Semester- 3
TABLE OF CONTENTS

Title Page

Abstract
Introduction of artificial intelligence
Literature review
Objective , Research methodology
History of artificial intelligence
Role of artificial intelligence in marketing
practices
How artificial intelligence is reshaping the
marketing practices
Role of artificial intelligence in advertising
Limitations of artificial intelligence in
marketing practices
Conclusion
Refrences
Abstract
Artificial intelligence is the capacity of the machines to function , react , reason like humans ,
solve problems and handle every situation like humans do. The aim of artificial intelligence is
to mimic human intelligence , behaviour and researchers are also trying to develop machines
that can use logics , reasoning and also even be creative like humans. It is like creating an
artificial human. Deep learning and machine learning contribute to this process , just like
humans perform actions based on their past experiences machines perform actions based on
the stored data. Nowadays many of the companies are using artificial intelligence for various
purposes some are using it for labour some for storing and analysing data to predict the future
consequences. Most of the companies use it for repetitive jobs and manual jobs so that it can
reduce the human effort. Some companies are also using this for marketing by analysing the
core customer need and providing the companies the data of the products they should keep in
their stock or to tell them which product is more demanded.

This paper demystify the facts abut how artificial intelligence adds advantage to
contemporary marketing practices and also tells what are the limitations of this technology.
 Introduction of Artificial Intelligence

Artificial Intelligence is the combination of human’s intellect , behaviour , emotions , with

computer or technology . Artificial Intelligence (AI) is the evolution of technology and will
have a boom in the near future just like Information Technology (IT) had in the past . Few
years ago there were hardly few people who knew about computers and working of it and
now everything has changed completely and whatever you want is just a click away from you
, we can search for anything we want on the internet , it now helps us to connect with our
friends , family with the help of facebook , IMO , etc. Artificial Intelligence will have a
greater impact because automation is the future of the world . In other words Artificial
Intelligence are the machines or robots that can think like humans , humans have the privilege
to think unlike other organisms in the world AI can create huge number of job opportunities
and can be a reason for losing jobs or unemployment . Repetitive jobs like factory labour ,
driver will be replaced by machines . In America driverless cars have already started ,
Amazon has also started delivering through drones resulting loss of delivery jobs . So all
types of mass works will be replaced by AI robots . Jobs to update these machines or to
instruct them will be available. A person should be aware of this technology and should know
how to make use of it , for example nurse in a clinic can take the help of Artificial
Intelligence to tell the disease of a person . AI or machine will tell the disease by analysing
symptoms and compare it with all the historical data to give the results . So the nurses who
know how to use Artificial Intelligence will have the upper edge from the nurses who how to
take care of their patients only.

Application of Artificial Intelligence are chatbots , self driving cars , Ai eye doctor , AI
dream machine , AI music composer. The best example of Artificial intelligence is google
maps , you must have seen when there is traffic or congestion ahead of you you will get to
know while you travel with the help of red lines that are shown on the path , this is because
google map can detect the number of persons or vehicles that are in a particular position for a
long time . One more example of google in artificial intelligence is google assistant where
you can ask anything to google about daily current affairs or anything which you would ask
your friend .
 Literature review
When anyone says the word marketing we think of a seller selling products to the customer
from his shop by attracting him by the features of the product. Now this trend has changed
because most of the customers buy products online that’s when artificial intelligence come
into play. Most of the sellers have started selling their products online either by creating their
own websites or by collaborating with online websites. When customers buy product online
they pay through card and the details of the product bought is stored in the data of that
website and when buyer again goes for shopping they recommend the related products which
makes the purchase decision easier for customers.
Companies are trying to streamline the process of marketing by targeting the specific
customers which is also called as segmented marketing. AI makes easier for companies to
analyse consumer’s needs and provide them that , it also helps to predict what will customer’s
need in future so that companies can start manufacturing that item and keep it in their stock.
There are a lot of changes made by artificial intelligence in the field of marketing like
introduction of chatbots where customer can share their complaints by chatting with the
robots , this saves a lot of time of customers as well as employees of the company so that they
can solve the bigger problems to satisfy customer’s demand. It is easy to start anything but to
maintain it becomes a difficult task and that is the limitation of AI like lack of cost , lack of
maintenance , lack of creativity and the most important thing is machine don’t have emotions
so the cannot understand what customer is going through and what is his real problem , today
also when it comes to operation by robots people hesitate and hence there is lack of trust.

Artificial intelligence and machine learning

Some people often say think that machine learning and artificial intelligence is one of the
same thing and are used interchangeably. Machine learning is a subset of Artificial
Intelligence which enables the machine to perform any task or execute any action on the basis
of past experiences stored in the machine in the form of data like humans do things based on
their past experiences or improve what they do by learning from their experiences. Someone
has rightly said mistakes in the past is your best teacher, so like humans machine can also do
things based on the data stored in it and not by programming it for specialized task or action.
Nowadays many multinational companies are using machine learning to provide their
customers a delightful experience for example if I buy anything from flipkart today it will
give thousand other options to choose from or list of other products which I can like or they
will suggest complementary products. A lot of webseries as well like Netflix and amazon
prime do data mining and based on that information they provide you series or movies which
you would like to watch by understanding your choice.
 What is the difference between Deep learning and Machine learning?
Deep learning is more efficient than machine learning where in machine learning humans
have to repair the program or fix anything if machine does not respond how it is supposed to
be and on the other hand in case of deep learning machine does all that by itself. Example of
deep learning is driverless cars where machine already knows what to do it does not need any
guidance from humans.
Let’s understand by an example about the suppose there are street lights which are
programmed in such a way that if someone says night they have to light up now machine
learning model will identify the word night from sentences said by anyone and put it on but if
someone say that it is too dark or it is time for street lights to be on they will not get on
because they have not analyzed night till now but in case of a deep learning model even if
someone does not say night it would be able to find out from its own method of computing.

Objective
 The objective of this paper is to tell what advantages does artificial intelligence adds
to contemporary marketing practices and what are its limitations.
 This shows how it will replace humans in the upcoming future and how it will create
unemployment.
 To understand how a machine can think and react like humans.
 Applications of AI like gaming , natural language processing , speech recognition ,
vision systems etc.
 To understand the change in marketing practices after implementing artificial
intelligence.

Research methodology
This paper is completely based on the researches that are done previously and some new facts
about artificial intelligence. Information on this paper is collected from journals , websites
and research papers.
 History of Artificial intelligence
The birth of the term Artificial intelligence was given by John McCarthy in the academic
conference which is known as Darmouth conference in 1956. The conference was to be a
“two month , ten man study of artificial intelligence on the basis of the conjencture that every
aspect of learning or any other feature of intelligence can in principle be so precisely
described that a machine can be made to stimulate it”. But the journey of believing that
machines can really think started much before that. Alan turing who is also as a scientist
played a huge role by prescribing a test called as turing test or which is also known as
imitation game.
Turing test is the test where a human judge takes responses of a human and a machine and
has to identify which one is a machine and which one is a human. If he fails to do that this
means machine has passed the test. Nowadays there is a Lobener Prize – an annual
competition where chatbots are judged for human like responses. the English philosopher
Thomas Hobbes first expressed the opinion that thinking is the manipulation of symbols.
Gallileo had said that “ all reality is mathematical in sense that everything is made up of
particles , and our sensing of smell or taste was how we reached to those particles”. Hobbes
extended this notion to say that thought too was made up of (expressed in) particles which the
thinker manipulated. However he had no answer to the question of how can a symbol mean
anything , because he had given up on the idea of thoughts being in the image of the reality.
That is a question we can still say is unresolved. Thomas hobbes is also known as the
grandfather of artificial intelligence. In the tournament of chess IBM’s AI chess computer
‘Deep Blue’ defeats incumbent chess world champion Garry Kasparov this was regarded as a
historic success.
 In 2011 ‘Watson’ a computer program won a US television quiz show against the
human players this proved that Watson can understand natural language and can
answer difficult questions as well.
 In 2014 microsoft has launched cortana , their version of virtual assistant similar to
Siri on iOS. In 2014 amazon has mas made amazon alexa a home assistant who
evolved into intelligent speakers who work as private assistants.
 In 2016 Hanson robotics has created a humanoid robot named Sophia. She is also
known as the first ‘robot citizen’ Sophia is different from other human robots with its
varying features like image recognition , facial expressions and make communications
through AI.
 In 2016 google also released google home which act as a personal assistant for
reminding tasks , fix appointments , and search anything through voice.
 Role of Artificial intelligence in marketing practices
Artificial intelligence plays a huge role in determining the change in consumer’s taste for
example many international companies nowadays are collecting data of the people who buy
their product from malls through credit card or debit card to determine how many people of
how much age are buying their product so they can plan their advertising strategies according
to that suppose if their product is bought by a person whose age is 25 then their target will be
to attract customers of the ranging from 20 to 30 . a lot of online stores like amazon and
flipkart are using this technology to recommend products to customers for example suppose
you bought a book from amazon as soon as you finish shopping you will see the related
products below it. It is all to improve the experience of customers by impressing them and
making them believe that they care about their choice and remembers it.
Another thing which uses AI is product pricing , which means with the help of machine
learning we extract the information from the past data to observe how mush customers are
willing to pay for a particular product or what is the worth of a company’s product in front of
customer’s eye.
They can also observe if they are charging more or low for a particular product. Companies
can predict the future trends based on present data like with the help of AI they can predict
the likeability of a product among customers by counting the number of purchase for the
same product. One more prediction based application of AI s sales forecasting , this
application help the companies to plan their sales based on the past data for example product
demand so that they can plan their production and manufacturing accordingly.
Artificial intelligence is playing huge role in contemporary marketing practices because
internet and other related technologies have changed the way to connect with people. It is not
how it is used to be , a buyer will come to your shop and you will impress him with your
people’s skills it has changed now , in today’s world anyone can sell their product from any
part of the world to anyone. With development in technologies new marketing strategies are
being used by various companies like content marketing , mobile marketing , integrated
digital marketing , continuous marketing , personalized marketing , visual marketing. Thus
companies should adopt AI and machine learning by developing their employees with these
skills as they are very essential for the future and it understand the customers better than
humans. They can generate different types of advertisements for different people who are of
different age , culture , region which is also called personalized advertising. Nearly 80% of
business will communicate to customers through chatbots by 2020.
 How artificial intelligence is reshaping the marketing practices

"In the era of big data, we have the need to mine all of that information, and humans can no
longer do it alone," says Mark Simpson. Humans can interact with customers and try to solve
their problems related to products , delivery and bad experiences but artificial intelligence can
do the same things with better efficiency and at larger scale. It helps marketer to create a
separate marketing strategies and personalized advertisements for a particular customers
rather than providing one offer to everyone.

Every consumer has different taste towards products and he can be attracted to the packaging
in a different way , so AI helps marketer to identify likes and dislikes of every customer and
based on researches from social medias and websites on which customers usually spend their
time they can penetrate them with advertisements that interests them and make them feel that
this product is made for them.

One of the great revolution done by AI in the field of marketing is chatbots. First we had to
do a lot of things whenever we face problems related to product like late delivery , defect in
the product , different product than what we asked for we used to do a lot of things c like
calling customer service 200 times and e mailing them problems occurring but nowadays
because of chatbots we can talk to a company’s representative with the help of the option of
chatting , it solves your problems instantly and is very personalized and chances of conflict
will be lesser because it is free of emotions.

Today online customers are increasing day by day and no one wants to go to store to buy
anything. There is a tough competition among the online websites hence it becomes
necessary to segment the market according to age , gender , preferences and creating a
relevant message for them , with the help of AI we can re acquire the customers by analyzing
their problems and detecting them by their less purchases from a particular website by
assisting and recommending them with the help of AI.
 Role of Artificial intelligence in advertising

When we talk about marketing practices a lot of things come to our mind which are the way
to connect from people , one of the way is advertising. By an estimate 85% of businesses will
use AI by 2020. You must have seen whenever you watch any video on youtube related to
review of some products you will see that when you visit some other website advertisements
related to that product will keep penetrating you in the form of pop ups , this is because of
artificial intelligence. Most organizations are now mindful of and utilizing live chatbots , or
AI frameworks where we can message our problems and chat with a person or machine that
is on the other side , we will never come to know wheather that is a or a human and that is
what we call as artificial intelligence. This makes our site one of a kind, profitable and stands
separated from others.

Artificial intelligence ensures that relevant and correct message is being delivered to the
people who are interested and not to target the whole market with one offer. It can assist
consumers with their problems and that is why many companies are nowadays replacing their
customer service from call helpline number to apps of the company where you can chat with
the employee of the company. They have the ability to follow their clients through their
purchase patterns and make personalized advertisements according to that. AI enable
marketers to connect with their target customer in an efficient way. People and companies
who are adopting this technology are the one who will get a competitive advantage because
this is the next milestone of industrial revolution. It helps marketers to make one on one
communication with customers and understand their core needs and wants for example a
woman buying a lipstick buys more than a lip colour. Marketers can track their customer’s
location and based on that they can recommend people different products with the help of
penetrating advertisements in social media.

One more feature of AI is prediction , in addition to making companies more competent ,

predictive intelligence helps to understand an individual user and prepares personalized
content to satisfy their interests and needs. With the help of AI marketers can fully
understand the conduct of customers and sustain a personalized connection that was hard
previously. Like predictive customer service , customer received emails can be evaluated
based on prior conservations and behaviours. To personalize advertisements and create
messages for targeted marketing we need data of thousands or millions of people. Then we
have to evaluate the information and make use of it for creating personalized advertisements.
Humans cannot do this much of manual work because of lack of resources and mental
capability and that is why the need AI systems.
 Limitations of Artificial Intelligence in marketing practices

One of the major limitations of adopting artificial intelligence in India is lack of education
and skills that is very necessary for the companies. That is why there is a huge demand of
skilled employees with experience to operate artificial intelligence.

 Second limitation is the lack of cost, because of huge population of India labour is
very cheap than to install a machine that is the reason why companies don’t want to
shift to machines and automate the whole process as it is an expensive affair.

 Third one is lack of maintenance, when we talk about machines, we need to think
about their maintenance so it does not stop suddenly which can cause major accidents
and to maintain them manual labour is also required and they are also needed to
supervise them.

 Whenever you call to a customer service you must have noticed after dialling 1991
they ask you a lot of things to do like press 1 , 2 , 3 and after that also you have to talk
to a robot , some people find this frustrating that is why we need to use chatbots very
carefully and it should also be supported by humans.

 Machines cannot be so creative as humans , they can recommend colours or can give
preferences based on the data stored. For example in marketing when we have to
create offers for attracting customers machine cannot say which thing has to
highlighted and how it should be presented.

 It will create a lot of unemployment in a lot of sectors. As I have mentioned earlier

amazon.com has already started delivering its products through drone which will
replace the jobs of delivery boys. All kinds of repetition jobs will be replaced by
machines that does not require a lot of skills. Although new jobs will be created for
example supervising the machines or upgrading them to do a task.
 Conclusion
To conclude I will say that there are lot of adavantages of implementing or adopting artificial
intelligence but there are cons too for example AI will make the job or life of humans easier
but it can also cause a great impact on the lives of the people who are unskilled and
uneducated resulting to a huge number of unemployment. It can reduce the error made by
humans but it is also very costly to install such high tech machines. Machines do not require
intervals or rest like humans , no machine will request their boss to give them leave because
of some uncertain incidence or because he is sick which will improve work efficiency but this
is also a fact that machines cannot replace humans 100% they need somebody to guide them ,
to supervise them , to ensure that whatever they are doing is correct. This is true that they can
make the life of humans easier but this fact can also not be denied that they will also make
humans lethargic. Machines do not have emotions and that is also the goal of AI to make a
kind of brain who thinks just like humans , interact like humans , behave like humans so that
it can be replaced to humans not only in repetitive jobs but also in the jobs that require people
skills for example marketing , sales etc.
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