ARTIFCIAL INTELLIGENCE : a new trend and strategy for marketing and advertising

success and performance

( Study of MTN Nigeria plc,Lagos ).

By
1. Olaide Kehinde Taofeek 2. Samaila Mande 3. Adegbola Eunice Abimbola
. Department of Business Administration and Marketing, National Open University, Abuja

E-mails

1. smande @noun.edu.ng /samailamande@gmail.com.

2. Kehindeolaide@ymail.com/Olaidekehinde6@gmail.com.

3. eadegbola@noun.edu.ng

ABSTRACT
The study examines the impact of artificial intelligence on marketing success and performance as
a strategic meeting point between marketing and technology in achieving business goals . The
study specific objective was to examine the effect of artificial intelligence on marketing success
and performance .The study adopted survey research method using primary and secondary
source of data . A total of 80 staff of MTN were chosen for the study using purposive sampling
with 70 questionnaires returned .The data was analyzed using 24 version of statistical package
for the social science. Today’s marketing requires the use of new trends of technology like
artificial intelligence as a creativity and innovations in the world of business and marketing ,
BMW ,MTN ,AMAZON ,FACEBOOK ,GOOGLE and NETFLIX adopted artificial intelligence
in their marketing activities and operations to achieve their marketing goals and performance
The study concluded that ,artificial intelligence is a new trends in marketing and advertising
world as a strategy to achieve marketing success and performance .It is recommended
that ,policy makers must formulate a policy for AI adoption as a digital business
models ,government and ministry of communications, innovations and digital economy must
create awareness for the adoption of AI in the business operations ,government should
strengthened the digital space for the success of the technology , AI must be made to be trusted
through research and development , there should be optimum data security and protection for
overall success of AI implementation in marketing .
KEYWORDS : Artificial Intelligence ,Marketing ,Advertising ,Strategy ,Technology
 INTRODUCTION

Artificial Intelligence according to Accenture is involves the use of technology that function with
the use of sensor and exhibits human being features and character and this , includes machine
learning, natural language processing ,algorithm and robots,( Awalegaonkar et al, 2019).

In marketing and other disciplines ,artificial intelligence is used in interaction with humans in
terms of making decisions .Presently, AI is adopted in all areas of marketing like identification
branding, marketing strategy, marketing analysis ,marketing positioning, customer behaviour,
advertising, pricing and social and new digital marketing to ensure business relationship and
exchange between customers and organizations (Marinchak et al,2018)

Artificial Intelligence expedites marketers decisions making as its ensures optimal and better
decision in developing new products and marketing management as this ensures patronage and
profit maximization,(Lee et al,2019, Valter et al,2019), hence, this is marketing performance,
and success ,(Kiron&Schrage,2019),(Brock and Wagenheim,2019).

This study seem to ask the question that, will artificial intelligence continues to be the strategy
and new trends in today’s and future marketing and advertising performance .?

The main objective of the study is to examine the impact of artificial intelligence as a new
strategy and trends in improving and enhancing the performance and success of marketing and
advertising .

LITERATURE REVIEW
ARTIFICIAL INTELLIGENCE, MARKETING AND ADVERTISING

Artificial intelligence is a software technology that have the characteristics of human intelligence
like visual insights, speech recognition, decision making and given recommendations, Huang
and Rust,(2018).

The technology artificial intelligence was named by John Mccarthy in 1956 as a science and
technology that solves human problems intelligently. Hence,artificial intelligence is a
programmed technology designed for making decision while exhibiting human
intelligence ,Syam and Sharma,(2019).
 ELEMENTS OF ARTIFICIAL INTELLIEGENCE IN MARKETING AND ADVERTISING

According to Huang and Rus,,(2018),the the elements of artificial intelligence involves the
following :

(1)Expert system (2) Heuristic Problem solving (3) Natural Language processing (4) Vision

NATURAL LANGUAGE PROCESSING: is the component of artificial intelligence that focuses

on computer and human language .This comes in form of chat bots that render customer
services in terms of answering customers questions and recommends products for them.. Also
uses sentiment analysis to analyze the customer sentiment on products for their satisfactions and
identify areas for product improvements and content generation for generating marketing and
advertising contents like blogs ,posts and social media .

EXPERT SYSTEM : is A knowledge system that simulates human expertise as it is used for
personalizing products for customers through their purchase history and likeness for personalized
products .Also ,it adopted target advertising for analyzing customer purchasing history for
specified advertisements as a target. Expert system also uses data to segment customers based on
their behavior and characteristics and also determine the right contents to converts customers .

HEURISTIC PROBLEM SOLVING : is a component of artificial intelligence that proffer

solutions to marketing problems systematically in terms of identifying marketing problems and
evaluate the best strategies to solve the problem ,it also analyze data to identify opportunities and
trends in market for developing the best marketing and advertising campaigns

VISION: processes and analyze data to predicts and forecast the customer behavioural and
attitude change in the future using facial recognition to identify and track in video merely for
targeting customers using the right advertising and evaluating the effectiveness of the marketing
and advertising campaigns .It is also used for recognizing specific products via image and video
merely for monitoring product placement and also identifying trending products and inventory
level in the store , Huang and Rust ,(2018) and Guibao,(2016).

GLOBAL BRAND AND ARTIFICIAL INTELLIGENCE IN MARKETING

The following companies have successfully leveraged on Artificial Intelligence and digitalization
for their success:
(1)AMAZON: Amazon use artificial intelligence to personalized shopping and uses algorithms
to drive pricing ,thus reduce prices to ensure more sales and customer patronage for more
generation of revenue.

(2)STARBUCKS: The Company uses AI and big data to customize and design drink products
through mobile and other applications to gather and analyze customer data for placement of
products.

(3)ALIBABA: The company uses AI technology to recommend products to customers in

strategic way that a product will be appealing to the customers.

(4)NIKE: is a sports company that uses technology to design and produce future products as a
strategy through effective messages via AI to recommend personal products to them.

(5)BMW: Its uses AI to brings about innovations to its automobile cars using big data to
interacts with car as well as self- driving and uses GPR for its locations and customers support
services and experience.Its communicates with the driver and detects faults and alerts the driver
for any emergencies presently or in the future .

ARTIFICIAL INTELLIGENCE AND CONSUMER BUYING BEHAVIOUR DECISION

Consumer buying behavior is a decision making process which the customers undergoes to get,
use and dispose goods and services that satisfy their needs and wants,(Qazzafi,2019).

Kotler et al.(2017),posits that consumer buying decision stages involves five stages; needs
identification, information search, evaluation ,purchase decision and post purchase behavior.

However, in digitalization, consumer showcase their needs and display their attitudes using a
blog, search ,comments, tweets, likes ,views and conversation via many channels like
webs ,mobile or face to face (Court et al,2019).AI role in marketing involves gathering and
conversion of data into meaningful consumer insights.(Kietzmann,2018).AI functions in
marketing includes recommending to customers the benefits and usefulness of products to them
through catalogue ,(Avinaash,2018).

Problem identification
This is the first stage in the consumer purchasing decisions which companies must recognize
consumers’ needs and use digital advertising as a marketing strategies to satisfy their
needs(Kotler,2017). Hence, according to Davenport et al,(2020) ,AI predict consumers’ needs
and wants and proffer solutions in form of a products that can satisfy their needs.

Information Search

Information search is the next stage consumer will undergo searching for the products that can
satisfy his needs. Hence, marketers should use advertisement as a marketing strategy to create
awareness and inform the customers about availability of products in the market through search
engine and paid search advertisement (Batra&Keller,2016). Jason,(2017), asserted that, AI
collates data for record usage purpose of the organization.

Evaluation

This is the stage of comparing alternatives products consumer can buy by through product
positioning to satisfy the needs of the consumer after taken cognizance of the price and products
ability to satisfy or solve problems,(Kotler et al ,2017).AI help the marketers to creates smart
marketing content to realize marketing objectives(Chaffey& Ellis-Chadwick,2019).

Purchase Decision Making

This is the decision making stage of buying a product after due comparison of a products .AI
technology suggests to the consumers best products to purchase to satisfy their needs,
hence ,allows t customers to place orders whether through voice commands, text, and e-mail,

Post –Purchase Behaviour

This is the final stage of buying behavior stage and AI assists the marketers in modifying their
products to satisfy customers’ needs and appeals to them to buy a products.Using the chosen
brands. Daughterty& Wilson,(2018)

ARTIFICIAL INTELLIGENCE AND BRANDING

Branding is the selling of products and services under a particular name and social media data
assist the companies in understanding consumer behaviuour and attitudes. (Qiu et al ,2015,
Zhang et al ,2016).Data from social media assists company in formulating strategy for customer
business patronage through AI adoption.(Luo&zHang,2013).

Chatbox Driven Brand Intimacy

Chat bots uses Natural Language processing (NLP) in making consumer to make decisions and
allows effective interaction between a company and organization. (Dale,2016. Hirschberg
&Manning,2015).

Neural Networks and Brand Choice

This technology allows an organization to gather information about consumer buying behavior
which is later used to predicts their buying behavior and exhibits human being feature to capture
data about consumers. This is mostly be done with the use of loyal cards,(Kaya et al,2010).

CASE STUDY OF HOW BMW USED ARTIFICIAL INTELLIGENCE (AI)

According to the CEO Today,(2018), Artificial Intelligence was launched half a century ago and
it has been adopted to replace tutors, travel agents, office, or family assistants.In realizing its
benefits to the organization and marketing,AI is used by companies like Amazon, Google and
Sephora for marketing, customer relationship management and recommendations with the goal
of boosting sales. One of the biggest companies that uses artificial intelligence is BMW.

BMW is a famous German car manufacturer innovated on opt-in –system and personal mobility
companion named BMW connected with the goal of collecting data about customers and their
cars.

BMW optimized its cars from 2014 with many functions ranging from locking and unlocking the
car, and activating the air condition systems.

Furthermore, BMW partnered with MAPS helps automated cars learnt all they need to know
about location. Also, AI can take charge of the steering wheel and drive the car by itself and
informed the driver whenever its needs assistance.

More so, BMW collaborated with Intel in creating a device that can see like humans which
enable him to make quality and optimal decisions immediately data entered are interpreted.
The future of AI looks bright as it is positive impacts globally cannot be over emphasized and it
is being used in different industries .All companies and organizations in the world are budgeting
and expending huge capital to create Artificial Intelligence which ultimately satisfy customers’
needs and wants.

Artificial Intelligence Usage By Companies Today and Tomorrow

According to CEO Today,(2018), there are 48 AI –powered devices in 2017 and the below level
of AI usage are as follows:

-60% of the consumers use AI –powered navigation apps like Waze or Google Maps.

-80% of marketers says that, personalized content by AI is more effective than general content.

-75% of companies rate a CRM system as a very important data source to their AI strategy.

-44% of companies use AI to detect and deter security intrusions.

Artificial Intelligence projections

-60% of retail and e-commerce brands will implement AI in 2018(Emarsys Research).

-100% of IOT(Internet of Things) initiatives will be supported by AI capabilities by 2019,(IDC).

-20% of business content will be authored by machines in 2018,(Gartner)

-38% of American jobs could be at risk by 2030, because of AI(PWC).

-85% of customer interactions with the enterprise will be managed without human interaction by
2027,(Gartner).

The worldwide spending on cognitive and AI systems will reach $57.68 in 2021,(International
Data Corporation).

MTN NIGERIA ARTIFICIAL INTELLIGENCE MARKETING EXPERIENCE

MTN Nigeria adopted the use of Artificial intelligence ( NEON-dx) to automate its inbound and
outbound marketing in providing an improved ,personalized service for its customers , resulting
in products patronage, reduced customer churn and increased net revenue.
Also, the company in 2019, introduced Africa’s first mobile money (MOMO) Artificial
Intelligence service(chatbot) which enable customers to make payment on whatsApp and
Facebook Messenger via SMS. Hence, chatbot is an artificial intelligence that aids the users to
navigate the MTN’s MoMo services and provide other useful information and this drives
customer’s engagement and improves their experience.

The benefits of Artificial Intelligence to MTN is enormous such as in improving interaction with
customers and enable them to reach MTN anytime and anywhere via social networks and
message applications.

Artificial intelligence adopted by MTN could be used to provide customers answers to their
raised questions at the right time .MTN further said, some big data and artificial intelligence
initiatives are driven and shaping lives across the world as well in Africa in health related
initiatives and agro- business data –driven projects .

THEORETICAL FRAMEWORK

The relevant theory for this study is diffusion of innovation theory .The theory was conceived b
Gabriel Jarde in 1875 ,a French Sociologist .He conducted a study using S-shaped diffusion
curve as a innovative idea and practice newly created. Hence, this innovation was popularized by
Everest Rogers in 1962.

According to Roger,(1995),diffusion is an innovative process where idea is transmitted to people

and is a new strategy and approach to change the world of uncertainty of business in the cause –
effect relationship to achieve a desired results using the hardware and software
components .Diffusion of innovation theory as new approach change the world of business
through the technology of internet and online technology.

Diffusion is a theory that explains in details how ,why and what rate new ideas of technology
spreads ,Rogers ,(1995),strongly argued and believed that, diffusion of innovation theory is the
act by which innovation is communicated among the global society over a period of time.

METHODOGY

The study methodology adopted was descriptive survey research design ,The study population
comprise of 70 staff of MTN and data was sourced basically through primary and secondary
sources by distributing questionnaires to affected respondents to elicit the necessary facts and
responses . The SPSS 24 version was used to test the formulated hypothesis .

HYPOTHESIS TESTING

Ho: Artificial intelligence is not a new trends and strategy for marketing and advertising
performance and success.

N Model Β Sig. T ANOVA R2 Adjusted F (df)

(Sig.) R2
70 (Constant) .356 4.03 8.37 0.000b 0.265 0.243 19.694
(349)
Artificial .369 0.000 5.873
Intelligence
a. Predictors: (Constant), Artificial Intelligence
b. Dependent Variable: Marketing and advertising success and performance
Source: Field Survey, 2023
Interpretation
The results indicated that, artificial intelligence (β = 0.369, t = 5.873, p = 0.000, p<0.05), has a
positive and significant effect on marketing and advertising success and performance. The
simple regression model used to explain the variation in marketing and advertising performance
and success due to the effect of artificial intelligence .
The result from the multiple regression showed that when artificial intelligence is improved by
one unit, the marketing and advertising performance and success would be positively affected
with an increase of 0.369. The result shows an overall statistical significance with p<0.05 which
implies that the exogenous is an important determinant of the marketing and advertising
performance and success .Therefore, the null hypothesis is rejected due to the statistically
significant of the t and p values of the relationship between the exogenous and endogenous
variables.
DISCUSSION OF FINDINGS
This shows that, the use of Artificial intelligence in marketing improved ,personalized service
for customers , resulting in products patronage, reduced customer churn and increased net
revenue.
CONCLUSION

The study concluded that ,artificial intelligence technology is a new trends in global marketing
and advertising world as a strategy to achieving marketing success and performance.

RECOMMENDATIONS

Based on the findings ,the study recommended as follows :

(1)The policy makers must formulate policies for the adoption of artificial intelligence as a
potential business models

(2)Government and ministry of communications, innovations and digital economy must create
awareness for the adoption of artificial intelligence in business, marketing and advertising

.(3)Government must strengthened the digital space for success of the technology adoption in
Nigeria
(4)Artificial intelligence adoption in Nigerian business environment must be made to be trusted
through quality and effective research and development .

(5)Government ,Ministry of communication ,National Communication Commission and other

stakeholders must guarantee optimum data security privacy and protection for overall success of
AI implementation in marketing and advertising in Nigeria .
LIMITATIONS AND SUGGESTIONS FOR FUTURE RESEARCH
The study merely focused on the adoption of artificial intelligence in telecommunication industry
and companies .
The research study is limited to particular period of time ,(present ), and may not reflect changes
in artificial intelligence in marketing and advertising ;
SUGGESTIONS FOR FURTHER RESEARCH
There is need for further study on the use of artificial intelligence in other sectors of the economy
More investigations are required in the future to reflect the changes in artificial intelligence in
marketing and other new inventions and innovations in artificial intelligence and marketing.
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