How the Internet of Things will fundamentally change marketing

A world of interconnectivity offers the opportunity to improve products and services in real-time. IoT can provide marketers with the information they need to improve the customer experience and effectively balance marketing efforts

What is the connection between IoT and marketing?

Perhaps, despite my intentions, it wasn’t stated clearly enough in my previous post. the link between IoT and marketing may depend on how the role of marketing is viewed.

1. Is marketing a tactical activity that focuses on the 4Ps of product, price, location, and promotion?

Or is it a broader strategic activity that places marketing as a company’s most important function?

I would choose the second view. If the goal of a company is to create and satisfy a customer, marketing and innovation of products and services are the most important strategic activities that contribute to the final result.

Strategic Marketing

IoT and the competitive landscape

Adopting this second view, we need to be aware of the impact the Internet of Things can have on our competitive environment.

In my previous article, I gave examples of how GE has changed its business model, from focusing on transactional relationships to designing systems to build closer relationships with customers, make customers more dependent on GE, and make it more difficult for customers. to make contact.

IoT disrupts industries

While taxi drivers don’t see Uber coming, car manufacturers are seeing their own direction. Aside from Uber, connected cars are perhaps the best-known example of IoT-related technology.

Connected cars, autonomous driving systems, artificial intelligence, and cloud computing are causing major changes for car manufacturers. The IoT has contributed to this.

IoT-related technologies will redefine the automotive industry. Car manufacturers now operate in an environment where they have to keep an eye on non-traditional competitors such as Tesla, Google, and Apple. Two of these companies did not exist twenty years ago.

Tactical Marketing

Let’s go back to a more tactical level and see what IoT can do, especially for digital marketing.

In the previous post, I said that IoT can enable marketers to deliver better service and value. I also mentioned that the IoT can provide real-time contextual data that can come from many touchpoints over a period of time.

Analytical Marketing

As internet-enabled sensors, such as beacons, become more widespread, their implications can be significant. I would suggest that the data from these sensors could be used to enable merchants to more accurately map offline touchpoints and develop a single view of the customer based on online and offline behavior.

IoT and customer experience

A world of interconnectivity offers the opportunity to improve products and services in real-time.

The IoT can provide marketers with the information they need to improve the customer experience, effectively dividing marketing efforts between customer acquisition and retention.

Closing

Due to the wide availability of bandwidth, unlimited computing power due to cloud computing, and almost endless amounts of storage, we will see more and more new and innovative IoT applications.

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