Lec 02-Understanding the basics of AI in Marketing-II

Summary

This course explores the evolution of AI in marketing, focusing on Marketing 4.0 and 5.0. It discusses the integration of AI with other technologies to enhance customer interaction and productivity. The script highlights the customer journey, the impact of the internet, personalization, and mixed reality on marketing strategies. It also showcases how CarMax leveraged AI and Salesforce for an omnichannel experience, enhancing customer satisfaction and operational efficiency. The video concludes with a look at the history and categorization of AI, distinguishing between weak and strong AI.

Takeaways

• 📚 The course focuses on AI in marketing, covering its evolution and impact on marketing strategies.
• 🔍 Marketing 4.0 combines online and offline interactions and integrates AI to enhance productivity and human connectivity.
• 👥 The customer path in Marketing 4.0 includes five steps: awareness, appeal, ask, act, and advocate.
• 🌐 The development of technology, especially AI, has led to Marketing 5.0, focusing on personalization and addressing environmental and social issues.
• 📈 Marketing 5.0 uses AI in three main techniques: predictive, augmented, and contextual marketing, leading to an agile marketing framework.
• 🚗 CarMax's Omni-channel strategy uses AI to enhance customer experience by personalizing interactions and streamlining the car buying process.
• 🌍 Marketing 5.0 emphasizes sustainability and the correction of past environmental damage using AI.
• 💻 Businesses must have a website to succeed today, as customers rely on online research and social networks for product information.
• 🎯 AI enables personalization, improving customer engagement, loyalty, and sales by customizing interactions in real-time.
• 🤖 AI is categorized into weak AI, which is task-specific, and strong AI, which imitates human common sense and can handle complex tasks autonomously.

Q & A

What is the main focus of Module 2 in the course on artificial intelligence and marketing?

Module 2 continues the discussion on the basics of AI in marketing, focusing on the impact of new technology in marketing, the evolution into Marketing 4.0 and 5.0, and the categorization of AI between strong and weak AI.

How is Marketing 4.0 defined in the script?

Marketing 4.0 is defined as a marketing approach that combines online and offline interaction between companies and consumers, merging artificial intelligence with other technologies to increase productivity and human-to-human connectivity.

What are the five steps in the customer path as described in the script?

The five steps are: 1) Awareness - the customer learns about the brand; 2) Appeal - consumers become attracted to the brand; 3) Ask - consumers search about the product online; 4) Act - consumers make a purchase; 5) Advocate - customers recommend the brand to others.

What is the significance of transparency in the digital economy as mentioned in the script?

Transparency in the digital economy is significant as it prevents brands from making false promises and allows the public to evaluate a company's brand position, promises, and values, which is a valuable instrument for the public.

What is the role of AI in Marketing 5 according to the script?

In Marketing 5, AI plays a role in creating a personal marketing platform, analyzing data, and working with other technologies to ensure customer satisfaction and profit while being mindful of societal norms and sustainability.

How has the COVID-19 pandemic affected marketing strategies as discussed in the script?

The COVID-19 pandemic has led to social distancing and masking, forcing marketers to develop new ways of interacting with customers to maintain personal interaction and capture new clients while ensuring customer satisfaction and profit.

What are the three types of marketing techniques that are prominent in Marketing 5?

The three types of marketing techniques in Marketing 5 are predictive marketing, augmented marketing, and contextual marketing.

How does CarMax utilize Salesforce to create a seamless customer experience?

CarMax uses Salesforce to create a centralized view of the customer, personalize customer experience across channels, and increase productivity and customer satisfaction by automatically classifying and routing incoming customer SMS messages.

What is the impact of the internet on businesses as described in the script?

The internet has made it essential for businesses to have websites, as 81% of people would not buy from a business without one. It has also shifted the way customers research products and services, favoring online reviews and comparisons over traditional advertising.

What are the three types of mixed reality technologies mentioned in the script?

The three types of mixed reality technologies mentioned are augmented reality (AR), virtual reality (VR), and mixed reality (MR).

How does AI categorize into weak and strong AI, and what are their differences?

Weak AI provides suggestions based on past data and is designed for specific tasks, while strong AI imitates common sense and can handle a wide range of problems without human intervention, potentially becoming self-aware.

Outlines

00:00

🚀 Introduction to AI in Marketing and Marketing 4.0

This paragraph introduces the course on artificial intelligence in marketing, focusing on Module 2 which delves into the evolution of marketing into versions 4.0 and 5.0. It discusses the integration of AI with other technologies to enhance productivity and human-connectivity. Marketing 4.0 is characterized by a customer-centric approach, merging online and offline interactions, and a customer path consisting of awareness, appeal, ask, act, and advocate stages. The paragraph also touches on the impact of technology on marketing, the rise of Marketing 5.0 during the COVID-19 pandemic, and the importance of personal interaction in marketing strategies.

05:01

🛍️ Marketing 5.0 and the Impact of Technology

The second paragraph explores Marketing 5.0, emphasizing the need for a personalized marketing platform that aligns with societal norms and sustainability. It outlines three types of marketing techniques: predictive, augmented, and contextual, which contribute to agile marketing frameworks. The paragraph also discusses the environmental and social consequences of unchecked growth, the role of AI in advertising, and the potential of Marketing 5.0 to improve online sales and customer satisfaction. The impact of the internet, supply and demand dynamics, personalization, and mixed reality on marketing are also highlighted, showcasing how these technological advancements have reshaped customer expectations and business practices.

10:02

🚗 CarMax's Omni-Channel Strategy and AI Integration

This paragraph narrates the story of CarMax, the largest used vehicle retailer in the U.S., and its strategic use of AI and Salesforce to create an omni-channel experience. It details how CarMax disrupted the automotive retail sector with integrity and transparency, and later by offering a seamless online and in-store buying process. The company's use of AI for personalization, improving productivity, and enhancing customer satisfaction through various touchpoints is discussed. The paragraph also covers CarMax's response to the COVID-19 pandemic, introducing contactless test drives and home delivery options, and its focus on employee and customer experiences through custom apps and agile development practices.

15:03

🛠️ AI's Role in Business Innovation and CarMax's Digital Transformation

The fourth paragraph examines the role of artificial intelligence in business innovation, particularly in CarMax's digital transformation journey. It explains how CarMax accelerated its digital initiatives during the pandemic, focusing on employee and customer experiences. The company's culture of innovation and entrepreneurship, combined with digital-native characteristics, allowed for rapid change and adaptation. The paragraph also provides a historical overview of AI, from its conceptual beginnings to the development of weak and strong AI, highlighting milestones such as the creation of AI products and significant achievements in AI capabilities.

20:05

🤖 Understanding AI: Weak vs. Strong Artificial Intelligence

The final paragraph concludes the module by discussing the categorization of AI into weak and strong AI. It defines weak AI as systems that provide suggestions based on past data and are limited to specific tasks, while strong AI is capable of thinking like humans, using general knowledge and common sense. Examples of weak AI include virtual assistants and recommendation systems, whereas strong AI is represented by self-driving cars and AI in hospital operating rooms. The paragraph summarizes the evolution of marketing discussed in the module and the significance of AI in modern business operations.

Keywords

💡Artificial Intelligence (AI)

Artificial Intelligence refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. In the video, AI is central to the discussion of marketing evolution, particularly in the context of Marketing 4.0 and 5.0, where it merges with other technologies to increase productivity and human connectivity. The script mentions AI's role in personalizing customer experiences and its categorization into weak and strong AI, illustrating its growing integration into marketing strategies.

💡Marketing 4.0

Marketing 4.0 is described as an approach that combines online and offline interactions between companies and consumers, integrating artificial intelligence with other technologies. It emphasizes the importance of human connectivity and productivity in the digital age. The script outlines how Marketing 4.0 has led to changes in customer interaction processes, adapting to the challenges posed by the global market and rapid technological advancements.

💡Customer Journey

The customer journey represents the stages a customer goes through from becoming aware of a brand to becoming an advocate for it. In the script, the journey is broken down into five steps: awareness, appeal, ask, act, and advocate. This concept is crucial for understanding how AI and marketing strategies can be tailored to engage customers at each stage, enhancing their experience and brand loyalty.

💡Personalization

Personalization in marketing refers to the customization of marketing strategies to individual consumer preferences and behaviors. The script discusses how AI enables brands to increase customer engagement and sales through personalization, providing real-time, tailored experiences that improve conversion rates and customer satisfaction.

💡Predictive Marketing

Predictive marketing is a technique that uses data analytics to forecast consumer behavior and preferences. The script mentions predictive marketing as one of the three prominent marketing techniques, alongside augmented and contextual marketing, which are all powered by AI and data analytics to create agile marketing frameworks.

💡Agile Marketing

Agile marketing is a flexible and adaptive approach to marketing that aligns with societal norms and sustainability. The script describes how predictive and contextual marketing, facilitated by AI, contribute to agile marketing frameworks that ensure customer satisfaction and compliance with societal guidelines.

💡Sustainability

Sustainability in the context of marketing refers to the consideration of environmental and social impacts in business practices. The script highlights the role of Marketing 5 in addressing the negative environmental impacts of unchecked growth, emphasizing the use of AI to correct and prevent further damage.

💡Omni-Channel Experience

An omni-channel experience provides a seamless interaction between customers and a brand across multiple platforms and touchpoints. The script details how CarMax, a company in the automotive retail sector, leveraged Salesforce and AI to create a human-centered omni-channel experience, allowing customers to buy cars on their terms through online and in-store integration.

💡Mixed Reality

Mixed reality is a technology that blends virtual elements with the real world, allowing for interactive and immersive experiences. The script discusses mixed reality as part of the impact of new technologies on marketing, where it can be used for experiential marketing to engage audiences and create memorable brand experiences.

💡Supply Chain Management

Supply chain management involves the coordination and management of activities involved in the production and delivery of products. The script touches on the evolution of supply chain management from an operational function to an advanced planning process, emphasizing its importance in modern marketing strategies and the role of the Chief Supply Chain Officer.

💡Weak AI

Weak AI, as mentioned in the script, refers to AI systems that are designed and trained for specific tasks or narrow functions. These systems do not possess general intelligence but excel in their designated roles, such as recommendation systems in e-commerce or gaming AI that can beat human champions in specific games.

💡Strong AI

Strong AI, in contrast to weak AI, refers to AI systems that can understand, learn, and apply knowledge across a wide range of tasks, similar to human cognition. The script describes strong AI as systems that can imitate common sense, potentially becoming self-aware, and are capable of handling complex problem-solving without human intervention, such as in self-driving cars or medical diagnostics.

Highlights

Introduction to AI in marketing, discussing the evolution from Marketing 4.0 to 5.0 and the integration of AI with other technologies.

Marketing 4.0 defined as the approach combining online and offline interactions with AI to increase productivity and human connectivity.

The five-step customer path in Marketing 4.0: Awareness, Appeal, Ask, Act, and Advocate.

The importance of transparency and the impact of technology on brand promises in the digital economy.

Marketing 5.0's requirement for a shift from segmentation to a more personal marketing platform in the age of COVID-19.

The three types of marketing techniques in Marketing 5.0: Predictive, Augmented, and Contextual, leading to Agile marketing.

The societal and sustainability impacts on marketing strategies, emphasizing the need for environmental responsibility.

AI's role in advertising and its potential to improve online sales, customer satisfaction, and reduce a brand's carbon footprint.

The impact of technology on marketing, including the internet, supply and demand dynamics, personalization, and mixed reality.

The necessity for businesses to have a website and the shift towards online research and social networks for product information.

The transformation of supply chain management and the rise of the Chief Supply Chain Officer.

AI's impact on personalization, enabling brands to increase customer engagement and sales through real-time understanding.

The distinction between Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) in experiential marketing.

The story of CarMax, the largest used vehicle retailer in the U.S., and its focus on trust and transparency in the car buying process.

CarMax's Omni-Channel strategy and its use of Salesforce to create a seamless customer experience.

The implementation of AI at CarMax for personalizing customer experiences and increasing associate productivity.

CarMax's response to the COVID-19 pandemic, accelerating its Omni-Channel experience and introducing contactless car buying.

The importance of putting customers and employees at the center of every decision at CarMax, enhancing both customer and employee experiences.

CarMax's culture of innovation and entrepreneurship, blending digital natives to operate like a true digital technology company.

Definition and history of Artificial Intelligence, from its early concepts to modern applications and the distinction between weak and strong AI.

Transcripts

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welcome to this course on artificial

intelligence and marketing and we will

talk about module 2 so as you can see

that we are talking about the first part

that is Introduction to AI in marketing

management and the first three modules

are dedicated to understanding the

basics of AI in marketing we have talked

about module one and now we will start

with module two in this module we will

continue the discussion of marketing

Evolution into

versions four and five what is the

impact of new technology in marketing

along with example what is AI and its

brief history and categorization of AI

between strong Ai and weak AI now let us

look at what is marketing 4 marketing 4

can be explained as the marketing

approach that combines the online and

offline interaction between companies

and

consumers at the same time it can also

be explained as the approach that merges

artificial intelligence with other

Technologies to increase productivity

and increase human to human connectivity

thus improving the customer interaction

process it has led to the increase in

the outcome of different changes sourced

from an extreme Worldwide Challenge

other kinds of purchases and quick

advancements in Innovations in marketing

4 the typical day-to-day customer is set

to follow a fixed customer

path which is as follows the first is is

being aware customer learns about the

brand from others or are exposed to the

advertisements the second step in this

customer uh path is appeal so consumers

become attracted to the brand and

develop a set of prospective Brands to

purchase from and the third is to ask

consumer searches about the product

online and compare prices and features

Etc in the fourth step they act so cons

you must buy online and in a store and

proceed to use the product for the first

time the fifth is Advocate customers

recommends the brand to others and keep

using it themselves so these are the

five steps that we have uh just seen 1 2

3 4 and five in the first that is aware

so uh it means I know second appeal that

is I like like it the third ask I am

convinced at the fourth stage that is

act is that I am buying the product and

at the fifth stage that is Advocate

where I recommend the

product or the brand to my family and

friends customers now have the resources

and means to evaluate and scrutinize any

company's brand position

promise corporate social

responsibilities and core values in the

digital

economy due to the transparency Brands

can no longer make false unverifiable

promises this proves as a valuable

instrument for the public the

development of technology has led to the

introduction of artificial intelligence

which has led to marketing five and now

we come to marketing five marketing file

five will require us to analyze

marketing for and then wholly revolve

from segmentation and personalization to

create a new marketing platform that is

personal in the age of the covid-19

pandemic we distancing and masking was

the basic regime marketers have had to

develop new ways of interacting with the

customers to keep their businesses and

capture new clients and customers by

maintaining that personal interaction so

marketing f is a complex model with

several faets that must work together to

ensure customer satisfaction and profit

information procured by Ai and other

technological channels that is data Ren

marketing is inputed into the three

different types of marketing techniques

that are prominent

now one is predictive second is

augmented and the third is

contextual this gives rise to Agile

marketing framework work that works in

harmony while ensuring it complies with

societal norms and guidelines and is

sustainable also at the same time so now

these are uh one is augmented marketing

second is predictive marketing and the

third is contextual marketing and this

predictive marketing comes from the data

D marketing and contextual marketing

gives and their interaction gives rise

to uh agile marketing and the society

and sustainability are affecting

covering these three marketing so

marketing five has to deal with the

consequences of the aggressive and

unchecked growth over decades leading to

leading to negative environmental impact

and Rising inequality so companies

cannot Thrive and survive if they ignore

the external consequences of their

actions due to this one of the core

purpose of marketing five is to use and

apply artificial intelligence to prevent

and correct the pollution and

environmental damage that has occurred

over the years AI also has become an

integral part of the advertising process

multiple makeup brands accessory Brands

Etc have been using the tool to help

ease the apprehensions of the consumers

and boost online sales marketing 5 has

enormous potential to improve online

sales and customer satisfaction and

reduce the carbon Footprints of the

brand

now let us look at the impact of

technology that is a new marketing

reality first is the internet then

supply versus demand the third is

personalization and the fourth one is

mixed reality so now let us look at the

impact of internet in the past

businesses could get buy without a

website however that is is no longer the

case today customers expect businesses

to have websites in fact 81% of people

said that they would not buy from a

business if it did not had a website

having a website is essential for any

business that wants to be successful in

the past we would ask our friends and

family for recommendations when we were

looking for a new product or service

these days we are much more likely to do

our own research online we will read

reviews and compare prices for making a

purchase this change is due in part to

the increase uh in internet access and

in part to the increase in mistrust of

advertising people don't trust

advertising

anymore they prefer to find out what's

true about products or Services through

social networks social networking sites

like Facebook and Twitter allow

companies to connect directly with

customers the next is supply versus

demand over the last 30

years Logistics has undergone a

tremendous change from a purely

operational function that reported to

sales of manufacturing and focused on

ensuring the supply of production lines

and the delivery to customers to an

independent Supply Chain management

function that in some companies is

already being led by a CSO that is the C

Chief supply chain officer the focus of

Supply Chain management function has

shifted to Advanced planning processes

such as analytical demand planning or

integrated

snop which has become established

business process in many companies the

third is

personalization artificial intelligence

machine learning and natural language

programming are changing the ways Brands

interact with the customers AI based

personalization enable Brands to

increase customer

engagement

improve loyalty increase sales and more

completely understand the customer so

that is also very

important to more completely understand

the customers and all in the real time

using AI brands are able to customize

their website content based on each

specific customer which helps to improve

conversion rate the next comes mixed

reality there are three kinds of

Technology available right now in the

market first is the AR that is augmented

reality the second is VR that is virtual

reality and the third is Mr that is

mixed reality the three can be

distinguished as below virtual reality

or VR places users in a 100% artificial

digital environment like ocas Rift

content augmented reality that is AR

uses overlays to display virtual objects

on the real world environment like

Pokémon go the third is mixed reality

that is Mr goes be on overlays anchoring

virtual objects to the real world for

interaction in experiential marketing

brands are constantly finding new ways

to give consumer an experience they will

not soon forget they are constantly

striving to plan activations that will

not only Reach people but also get them

excited about the product mixed reality

can keep an audience engaged with the

brand and reach a larger audience it is

The Cutting Edge of technology and

brands are beginning to find success

blending realities for a more immersive

experience now let us look at the story

of

Carmax Carmax is the largest retailer of

used vehicles in the United States

because of the trust it has created with

its customers with trust at its core

CarMax brought integrity and

transparency into the car buying process

and made it very simple and easy having

first disrupted the automative retail

sector where it first launched in 1993

CarMax disrupted the industry for the

second time by launching a true Omni

Channel experience that empowers

customers to buy a car on their terms

online in store and a sess integration

of both so we will discuss how the

company use Salesforce to create that

experience Delight customers in a new

and innovative ways and reimagine car

buying so now we are we are trying to

analyze the of Carmax that through Omni

channel strategy for flexible customer

interaction anticipating its customers

would want more control of the car

buying Journey the company set about

creating a human- centered Omni Channel

experience that enable customers to

interact seamlessly online and with

their stores and truly buy a car on

their terms the car buying process is

not completely linear and a single

customer may interact with multiple

Associates during that unique Journey

from remote support specialist to inore

Associates so CarMax worked with

Salesforce to create a centralized view

of the customer to provide a seamless

experience across all the touch points

the company uses AI to personalize

customer experience across channels

providing product recommendations for

customers and time saving next best

action for associates is also uses AI to

automatically classify and root incoming

customers SMS messages increasing

Associates productivity and customer

satisfaction in addition the company

launched multiple contact centers to

provide remote consy service that helps

customers via phone text and digital

channels while they are shopping online

understanding customers position in the

customer Journey process before

2020 CarMax was already well underway

with this ambitious digital

transformation then the pandemic hit

with its strong digital foundation in

place the company was able to quickly

peot accelerating the launch of its Omni

Channel experience to the rest of the

country and rolling out CarMax curbside

delivery within 3 weeks CarMax scrub

side is a new contactless way for

customers to test drive and buy a new

car with adherence to social distancing

practices CarMax also offers a home

delivery op option for most of the

customers Associates can concentrate on

providing outstanding on-site customer

service

experience thanks to appointment

scheduling guided checklist and other

workflows now when someone books an

appointment for a test drive online it

triggers a workflow that ensures the car

is checked clean comfortable and ready

to drive the buying experience becomes

seamless too so customers can save time

by completing most of the process online

in advance such as getting pre-approvals

for

financing CarMax rolled out CarMax crite

to the whole country to thousands of

Associates and all its customers is in

less than 3 weeks next it delivered

great customer experience through

employee experience by custom apps one

important reason for CarMax success is

that it puts both customers and employ

emplo Es at the center of every decision

CarMax redesigned its customer

experience at a fundamental level with

interntional relationship

designs this involved listening to

customers and using design thinking and

other tools to emphatically but

deliberatively evolve its relationship

with customers custom apps also enhance

experience for both employees and

customers the company's coders benefit

from a modern agile developers

experience and use pre-built partner

solutions to accelerate the time to

market for their apps on the front end

CarMax

Associates have the tools and

information they need to Delight

customers for example when the delivery

team learned that a customer had a new

baby they included a gift of toys with

the C delivery it was nice surprise for

the

customer that would definitely Delight

them and all customer want a surprise

and obviously that Delights them and the

third is implementing change with

acceleration since the start of the

pandemic CarMax has gained new heights

of efficiency as they were able to move

and innovate faster than ever before

customer facing Associates play a vital

role with some included in the company's

product team this ensures development

initiative addresses user pinpoints from

the beginning and meaningful testing and

training starts early as a result it now

takes days not months to train a staff

when a new capability or app is rolled

out it is a combination of people

culture and technology that enabled this

rapid change and allowed CarMax to

continue to reimagine the future of car

buying Carmax have always had an amazing

culture of innovation

and Entrepreneurship but lately when

they brought in a lot of digital native

characteristics it actively binded all

of the three things and made it operate

like a true digital technology company

now let us look at what is AI so what is

artificial

intelligence it is the study of methods

for making computers behave

intelligently so artificial intelligence

is study and design of intelligent

agents intelligent agent is an AI

program that perceives its

environment perceives its environment

take actions autonomously in order to

achieve

goals and may improve the performance

with learning or may use knowledge now

let us look at when and where it

started so in 1945

whenever Bush suggested machine scan

thing Concepts then in

1950 alen touring suggested the

machine's ability to take

decisions and in 1956 the term

artificial intelligence was first used

by mcarthy and the darmor workshop in

1967 wot project in Vasa Unity

Japan in 1989 Cari melon University's

Hightech and deep

thought in 1997 de blue supercomputers

beat the world chess

champion in 2000 deep learning big data

and artificial in general intelligence

came into being in 2010 access to large

amounts of data that is big

data and in 2016 AI product Market

reached $8

billion so in Broad perspective

it can be categorized as weak AI that is

suggestions are based on past data and

strong AI that imitates common sense so

weak AI giv suggestion that is that are

based on the past data while strong AI

it imitates common sense now because it

imitates common sense that is why it is

called as strong AI we AI consists of

system designed to do one particular

particular job it refers to system that

are programmed to accomplish a wide

range of problems but operates within a

predetermined or predefined range of

functions we have lived with v a for a

while now vki system includes video

games such as chess where the end result

is winning the game and a personal

assistant such as Google uh such as

Amazon Alexa and Apple Siri you ask the

assistant a question it answers it for

you Pandora is very good at choosing

what music you might like based on the

sort of music you liked before Amazon is

pretty good at guessing what if you

brought this you might like to buy

that Google Alpha go beat go world

champion Lee sidol in March 2 2016

another AI system that is DP

stack beat experts at No Limit Texas

holding them poker but one of those

systems can do anything else they are

weak next comes a strong AI a strong

artificial intelligence consists of

systems that carry on the task

considered to be

humanik so when it moves the AI is

moving towards

human then it is called as

strong a strong AI is that which thinks

like human draws on General Knowledge

imitates Common Sense threatens to

become self-aware and take over the

world these tend to be more complex and

complicated

system they are programmed to handle

situations in which they may be required

to solve problem without having a person

to

intervene these kind of systems can be

found in applications like s

self-driving cars and Hospital operating

rooms so to conclude in this module we

continued the discussion from module one

regarding marketing evolution in

versions 4.0 and

5.0 we have discussed about the impact

of new age Technologies on

marketing we have understood how CarMax

used AI to enhance their business

operations and finally we have discussed

the categorization of AI into its

stronger and weaker versions and these

are the books from which the material

for this module was taken thank

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you

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a