Lec 01- Understanding the basics of AI in Marketing-I

Summary

This course explores the integration of artificial intelligence in marketing across seven modules. It delves into AI's role in marketing strategy, research, customer engagement, brand building, and value communication. A case study of Ramco Cement illustrates AI's impact on advertising effectiveness. The course also examines marketing's evolution from focusing on product features to leveraging AI for data-driven strategies, emphasizing the importance of understanding both the technology and consumer needs in modern marketing practices.

Takeaways

• 📚 The course is divided into seven parts, each focusing on different aspects of AI in marketing, from basic introduction to ethics.
• 🚀 AI and analytics are transforming business practices, with AI enabling smart use of data and optimization of functions and processes.
• 🏭 Manufacturing is a major industry adopting AI massively, with a significant increase in AI usage over the past decade.
• 📈 Ramco Cement's case study illustrates how AI can change advertising effectiveness and improve business decision-making through data visualization.
• 🌐 Google Maps integration with Ramco ERP system at Madras Cement helped in visual analysis, identifying discrepancies, and developing business growth strategies.
• 📊 AI adoption in Madras Cement reduced penalties and improved consignment clearance time, demonstrating tangible business benefits.
• 🔍 Marketing is defined as the activity of institutions and processes for creating, communicating, delivering, and exchanging offerings of value.
• 🏢 Marketing offerings include a variety of types such as events, experiences, persons, properties, organizations, information, ideas, and services.
• 🌐 The marketing environment consists of the task environment and the broad environment, including demographic, economic, social cultural, national, technological, and political legal aspects.
• 🔄 Marketing has evolved from version 1 to version 5, driven by marketing technology and customer needs, with each stage having distinct philosophies, objectives, and practices.

Q & A

What are the main parts of the course on artificial intelligence and marketing?

The course is divided into seven parts: 1) Introduction to AI in marketing management, 2) Developing marketing strategies and plans using AI, 3) AI for marketing research, 4) Connecting with customers, 5) Building strong brands using AI, 6) AI for designing, delivering, and communicating value, and 7) Ethics in AI.

What is covered in the first module of the course?

The first module covers the basics of AI in marketing, including how AI is used by the industry, a case study, the definition of marketing, various marketing offerings, and the marketing environment and its components.

How has the use of AI in different industries evolved over the years?

From 2015 to 2025, AI usage in healthcare increased from 37% to 40%, in transportation it remained at 41%, in manufacturing it rose from 14% to 83%, in finance from 41% to 59%, and in advertising it decreased from 47% to 36%.

What challenges did Madras Cement face before adopting AI?

Madras Cement struggled with visualizing and leveraging data from their ERP system, understanding performance issues, and making quick business decisions due to the complexity of traditional reporting methods like Microsoft Excel.

What solution did Madras Cement implement to overcome their challenges?

Madras Cement integrated Google Maps with their ERP system, allowing for rich data visualization and improved productivity. This solution helped in better monitoring, strategy development, and enhancing market penetration and competitiveness.

What is the definition of marketing according to the American Marketing Association?

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for clients, customers, partners, and society at large.

What are the eight types of market offerings mentioned in the course?

The eight types of market offerings are events, experiences, persons, properties, organizations, information, ideas, and services.

What constitutes the marketing environment?

The marketing environment consists of the task environment, which includes actors like the company, suppliers, distributors, dealers, and target customers, and the broad environment, which includes demographic, economic, social-cultural, natural, technological, and political-legal environments.

How has marketing evolved over the years according to Philip Kotler?

Marketing has evolved from Marketing 1.0, focused on product features and functionality, to Marketing 2.0, which emphasizes customer relationships and the use of Web 2.0 tools, and Marketing 3.0, which integrates technology with a focus on emotional and social aspects to create value-driven marketing.

What is the focus of Marketing 3.0?

Marketing 3.0 focuses on the emotional and social needs of consumers, creating value-driven marketing through mission statements and influencing consumer behavior with stories and values, leveraging new wave technologies and globalization.

Outlines

00:00

📘 Introduction to AI and Marketing Course Overview

The course on artificial intelligence (AI) in marketing is structured into seven parts, starting with an introduction to AI in marketing management. The first five modules cover AI in marketing, followed by modules on developing marketing strategies, marketing research, connecting with customers, building strong brands, designing and communicating value, and ethical concerns in AI. The course aims to provide a comprehensive understanding of AI's role in various aspects of marketing, starting with basics and case studies, and progressing to advanced applications and ethical considerations.

05:00

🏗️ Case Study: AI Implementation in Madras Cement

Madras Cement faced challenges in visualizing and leveraging data from its ERP system. By integrating Google Maps with their ERP, they developed a rich data visualization tool that improved productivity and decision-making. This integration allowed field sales teams to access vital information on mobile devices, enhancing market penetration and competitiveness. The use of Google Maps reduced logistic costs, improved consignment clearance times, and helped identify growth opportunities, leading to significant market share gains.

10:01

📊 Exploring Marketing Offerings and Their Types

Marketing involves identifying and meeting human and social needs through various offerings, including events, experiences, persons, properties, organizations, information, ideas, and services. The paragraph details the diverse nature of market offerings and emphasizes the importance of services in advanced economies. It also highlights the role of marketing in promoting events, creating experiences, and enhancing the public image of organizations through strategic communication and engagement.

15:01

🔄 Evolution of Marketing: From 1.0 to 3.0

Marketing has evolved through several stages, driven by technological advancements and changing consumer needs. Marketing 1.0 focused on product features and mass communication. Marketing 2.0 introduced interactive communication through web 2.0 tools, emphasizing customer needs and emotional benefits. Marketing 3.0, driven by new technologies and globalization, focuses on values and emotional connections, integrating advanced data systems to understand and address consumer needs. Each stage brought new methods and strategies to enhance marketing effectiveness.

20:01

📈 Planning and Implementing Marketing 3.0 Strategies

Marketing 3.0 involves a planning phase that recognizes the importance of mission and values, and an implementation phase that focuses on demonstrating these values through daily business practices. This phase emphasizes aligning business behavior with consumer values, using discussions and brand personality communication to create a strong emotional connection with customers. The paragraph concludes with a summary of AI's role in data utilization, a case study on Ramco Cement, and the transition from marketing versions 1 to 3, with future discussions on versions 4 and 5.

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 context of the video, AI is central to the theme as it discusses its application in marketing, management, and the development of marketing strategies, highlighting its role in data utilization and automation.

💡Analytics

Analytics is the process of qualitatively analyzing data to extract valuable insights and drive informed decision-making. The video script mentions that 'analytics is the combustion engine' in the context of big data, emphasizing its importance in powering AI and enabling smart data usage for business advantage.

💡Marketing Strategies

Marketing strategies are comprehensive plans that outline how a business will reach its marketing goals. The script discusses a course divided into parts, one of which is dedicated to developing marketing strategies and plans using AI, showcasing the integration of AI in formulating effective marketing approaches.

💡Data Visualization

Data visualization is the graphical representation of information and data, making it easier to understand and interpret. The script provides an example of Madras Cement using Google Maps for data visualization, which helped them in idea generation and improved productivity.

💡Enterprise Resource Planning (ERP)

Enterprise Resource Planning is a management software that businesses use to manage day-to-day business activities such as accounting, procurement, project management, and risk management. The script mentions Ramco ERP system, illustrating how Madras Cement integrated it with Google Maps for better data visualization and decision-making.

💡Marketing Environment

The marketing environment consists of all the external and internal factors that affect an organization's ability to build and maintain relationships with its customers. The script delves into the components of the marketing environment, emphasizing the need for marketers to understand and adapt to these factors.

💡Ethics in AI

Ethics in AI refers to the moral principles that guide the development and use of artificial intelligence. The video script mentions a part of the course dedicated to discussing the ethical concerns in using AI, indicating the importance of responsible AI integration in marketing practices.

💡Market Offerings

Market offerings are the products, services, or experiences that a company offers to its customers. The script outlines various types of market offerings, such as events, experiences, persons, properties, organizations, information, ideas, and services, illustrating the diverse range of offerings in the market.

💡Marketing Evolution

Marketing evolution refers to the historical development and changes in marketing practices and philosophies over time. The script discusses the evolution from Marketing 1.0 to 5.0, highlighting the shift from product-focused marketing to more customer-centric and value-driven approaches.

💡Marketing 3.0

Marketing 3.0 is a concept that emphasizes creating customer value by understanding their deeper needs and aspirations. The script describes Marketing 3.0 as value-driven marketing, which involves planning and implementation phases focused on aligning corporate values with consumer behaviors.

💡Case Study

A case study is a detailed analysis of a specific situation or event for instructional purposes. The script uses the case study of Ramco Cement to demonstrate how AI adoption has changed advertising effectiveness and improved business operations, providing a practical example of AI in marketing.

Highlights

Course divided into seven parts, focusing on different aspects of AI in marketing.

Part one introduces AI in marketing management.

Part two discusses developing marketing strategies and plans using AI.

Part three covers AI for marketing research in modules 15 to 17.

Part four connects with customers using AI, discussed in modules 18 to 25.

Part five builds strong brands using AI, covered in modules 26 to 31.

Part six explores AI for designing, delivering, and communicating value in modules 32 to 55.

Part seven addresses ethics in AI, covering modules 56 to 60.

AI and analytics enable smart use of data for business advantage.

Healthcare, transportation, manufacturing, and finance are industries massively using AI.

Madras Cement Limited uses AI to improve advertising effectiveness.

Google Maps integration with ERP system enhances data visualization and decision-making.

AI adoption in manufacturing has seen a significant increase over the years.

Madras Cement uses Google Maps for visual analysis, monitoring benchmarks, and developing business strategies.

Field sales teams can access critical information on mobile devices, improving sales strategies and market penetration.

Google Maps helps in identifying and analyzing performing markets, capturing market share.

Logistic costs are reduced, and consignment clearance time is improved through AI integration.

Marketing is defined as activities for creating, communicating, delivering, and exchanging offerings of value.

Marketing offerings include events, experiences, persons, properties, organizations, information, ideas, and services.

Services are a growing proportion of economic activities, including airlines, hotels, and maintenance services.

Experiences can be marketed, such as customized experiences and events.

Persons like artists and professionals can be marketed through celebrity marketing.

Properties involve marketing of real estate and financial property.

Organizations use marketing to build a strong, favorable, and unique image.

Information is a major industry, marketed and distributed at a price.

Ideas are part of marketing offerings, promoting social benefits and values.

The marketing environment consists of the task environment and the broad environment.

Marketing has evolved from version 1 to 5, driven by marketing technology and customer needs.

Marketing 1 focused on selling products, emphasizing the unique selling proposition.

Marketing 2 utilized web 2 technologies for interactive communication between consumers and businesses.

Marketing 3 is value-driven marketing, focusing on emotional needs and wants of customers.

Transcripts

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welcome to this course on artificial

intelligence and marketing and we will

start with module one but before that uh

a brief introduction about this course

this uh course is divided into seven

Parts in part one we will talk about

introduction to AI in marketing

management and the first five modules

are dedicated to this part in part two

we will talk about developing marketing

strategies and plans using AI so module

6 to 14 will be covered in the second

part in the third part we will talk

about AI for marketing research and

module 15 16 and 17 uh uh we'll be

talking about AI for marketing research

in part four we will talk about

connecting with the customers and module

18 to

25 we'll be talking about part four in

part five we will talk about building a

strong Brands using artificial

intelligence and module 26 to 31 are

covered in part five in part six we we

will talk about AI for Designing

delivering and communicating value and

module 32 to

55 are dedicated to understand the role

of AI for Designing delivering and

communicating value and in part seven

that is ethics in Ai and we will talk

about the ethical concerns in using AI

so module 56 to 60 are covered in this

part so we will start with first chapter

and module one that is understanding

basics of AI in marketing that is part

one so the module in this module we will

talk about about the introduction to how

AI is being used by the industry along

with the case study what is marketing

and the various marketing offerings what

is marketing environment and what are

its

components how marketing has evolved

over the years from version 1 to version

five so to start with the introduction

if big data is the new oil analytics is

the combustion engine data is only of

benefit to business if it is used

according ly and capitalized analytics

and AI increasingly enable the smart use

of data and the associated Automation

and optimization of functions and

processes to gain advantage in

efficiency and competition in the recent

years AI has created for an immense leap

in development in business

practice while the optimization and

automation of production and logistic

processes are focused on in particular

in the scope of Industry 4 AI

increasingly also address

administrative dispositive and planning

processes in Marketing sales and

management and on the path toward the

holistic algorithmic

Enterprise now let us look at use of AI

in Indian industry which industry and we

will start with answering this question

which industry use AI

massively

Healthcare used uh AI 37% in 2015 to 20

2020 and estimated from 2021 to 2025 is

40% then comes Transportation with 41%

each the third is

manufacturing now you see how much

increase in the use use of AI over a

period of of 10 years has been happening

in manufacturing moving from 14% to

83% then comes Finance 41% to

59% and advertising from 47% and it has

decreased it is supposed to decrease to

36% so

manufacturing is the industry that is

using AI massively now uh let us look at

this example of AI adoption by a cement

company so this is the story of a cement

company how AI changed advertising

effectiveness

so that is the use of AI by ramco cement

Madras cement limited is the flagship

company of the ramco group in India the

company is one of the six largest cement

operators in India manufacturing

ordinary Portland cement and

Portland Pana cement the challenges they

faced was madra cement felt that their

potential for growth was hampered by

their inability to visualize and

leverage the rich data generated from

ramco enterprise resource plan planning

system information such as distributed

performance comparison and location

mapping of their wagon movement were

difficult to visualize madas sement also

find found it difficult to understand

the real issues affecting operations and

performance across the region Mr AV dhak

Krishnan Chief Executive Officer of

Madras cements commented that

traditional means of reporting using

Microsoft Excel sheets were complex and

timec consuming

hindering further business decision

making they needed a data visualization

solution one that offered richer Dynamic

interactive Graphics that integrated

with the ramco Erp system the solution

Madras choose Google Maps to integrate

with its ramco Erp system by

superimposing its data onto Google Maps

the result was a rich data visualization

tool that facilitated idea generation

and improved productivity all across

India over 1,000 employees access

reports and transactions on a daily

basis from the ramco Erp systems and

integrated Google Maps management at

Madras

cimons use Google Map for V visual

analysis for monitoring benchmarks

identifying discrepancies and deviations

Google Map serves as a tool to help them

develop appropriate strategies for

business growth the field sales team now

has the capability to easily view

information on their mobile devices

information ranging from competitors

distributor Network in their area to the

best and worst performing dealers this

not only enabled them to make faster

sales strategies on the go it also

helped management improve their Market

penetration strategy and

competitiveness as they could locate

their cement warehouses and key

customers on Google Maps Visa we

critical operation information and

empowering them to device effective

supply chain strategies and enhance

customer service Google Maps help

illustrate data at various levels of

detail for example which regions were

experiencing a strong growth which

dealers were performing best or had the

most potential for growth now let us

look at the results keeping logistic

cost low is a critical success factor in

the cement manufacturing industry Google

Maps together with their in-house SMS

notification system and ramco Erp

Solutions formed a solid communication

infrastructure this has helped the

Madras cement reduce penalties losses

and damages arising during the wagon

clearance process by up to 70% and

improved Consignment clearance time by

up to

40% Google Maps also made it easier to

identify and analyze performing markets

with the poti potential for growth since

implementing Google Maps the company has

successfully captured 20 to 30% of

market share of these markets while the

same information can be put in the Excel

sheet or word dhak Krishna shared that

he can better appreciate the data which

is visually presented on Google Maps now

let us look at the artificial

intelligence so this is AI word

cloud before that let us look at what is

marketing so marketing is about about

identifying and meeting human and social

needs and as American Marketing

Association defines it marketing is the

activity set of Institutions and

processes for creating communicating

delivering and exchanging offerings that

have value for clients customers

partners and Society at large so now let

us look at these

offerings so what are these Market

offerings the various types of Market

offerings are one events second is

experience third

persons

properties organizations information

idea and services so these are the eight

offerings that we are talking about 1 2

3 4 5 6 7 eight so these are the eight

offerings that we are talking about now

let us look at what are Services as

economies Advance a growing uh

proportion of their activities focuses

on production of services Services

include the work of Airlines hotels car

rental firms barers and beauticians

maintenance and repair people and

accountants bankers lawyers Engineers

doctors software programmers and

management

Consultants many Market offerings mix

goods and services such as fast food

meal events are marketers they also

promote time based events such as major

trade shows artistic performance and

Company anniversaries Global sporting

events such as the Olympics and the

World Cup are promoted aggressively to

both companies and fans what is

experience by managing several services

and goods a farm can create stage and

Market experiences Walt Disney World's

Magic Kingdom allows customer to visit a

fairy kingdom a pirate ship or a haunted

house there is also a market for

customized experience such as week at a

baseball camp with retired baseball

grades a 4- day Rock and Roll Fantasy

Camp or a climb up Mount

Everest the persons like artists

musicians CEOs Physicians high-profile

lawyers and finances and other

professionals all get help from

celebrity marketers some people have

done a masterful job of marketing

themselves like David bman

opra wire and the Rolling Stones

Management Consultant Tom Peters a

master of self-branding has advised each

person to become a brand properties are

intangible rights of ownership to either

real property that is a real estate or

financial property that are the stocks

and bonds they are brought and sold and

these exchanges require marketing real

estate agents work for property owners

or sellers or they buy and sell

residential or commercial real estate

invest companies and Banks Market

Securities to both institution and

individual investors

organizations organizations work to

build a strong favorable and unique

image in the mind of the target public

in United Kingdoms Tesco every little

helps marketing program reflect the food

marketers attention to detail in

everything it does within the store and

in the community and the environment the

campaign has vaulted Tesco to the top of

the UK supermarket chain industry

universities museums performing art

organizations corporations and nonprofit

all use marketing to boost their Public

Image and compete for audience and fund

information the production packaging and

distribution of information are major

industries information is essentially

what books schools and universities

produce market and distribute at a price

to parents the students and communities

ideas every Market offerings include a

basic idea products and services are

platforms for delivering some idea or

benefit social marketers are busy

promoting such ideas as friends don't

let friends drive drunk and a mind is a

terrible thing to waste the next is the

marketing environment and it consists of

the task environment and the broad

environment the task environment

includes the actors engaged in producing

Distributing and promoting the offerings

these are the company suppliers

distributor dealers and Target

customers in the supplier group are

material suppliers and service suppliers

such as marketing research agencies

advertising agencies telecommunication

companies Etc Distributors and dealers

include agents Brokers manufacturers

representatives and others who

facilitate finding and selling to

customers so that is the task

environment next comes the broad

environment so marketing management has

two and broken down into to task and

Broad we have talked about task in the

last slide now we are talking about the

broad environment it consists of six

components demographic environment

economic environment social cultural

environment National environment

technological environment and political

legal environment marketers must pay

close attention to the trends and

development in these and adjust their

marketing strategies as needed new

opportunities are constantly emerging

that awaits the right marketing Savi and

engineuity now we will look at the

evolution of marketing although there

are different thoughts on when marketing

came to exist as a discipline the

majority of a specialist agree that it

began during the time of Industrial

Revolution somewhere around the rate

18th and early 19th century since then

it has been continuously evolving from

marketing 1 to 2 to 3 to 4 to five so

there are two main factors that can be

considered as the drivers of marketing

Evolution so marketing technology and

customer needs so one is marketing

technology and the second is consumer

needs the intersection of these two

factors is the major reason why

marketing as a business philosophy has

been evolving according to Philip Cotler

marketing has evolved in several stages

where each stage has different

philosophy objective dominant focus and

practices so now let us look at the

various uh how marketing has evolved and

what are the various stages so in

marketing one it was a concept that

first emerged in the

1930s this is the first stage of

marketing consists of several models

production product selling and marketing

the main objective of this stage was to

sell products it is the most basic

fundamental phase of marketing where the

main focus relies on the product and its

features the Industrial Revolution

proved the perfect Catalyst for the

expansion of marketing one it provided a

situation where there was a boom in the

needs of the consumers and thus there

was a drastic increase in both the

demand for the product and the

competition among the businesses the

marketing relied on emphasizing and

focusing on the unique selling

proposition to distinguish one product

from its

competitors they focused on the

functional aspect of the product to sell

the products to customers as their core

Focus was to address the immediate needs

of the customers without considering the

the aesthetic value its distribution was

by traditional channels such as

television and radio it would be cited

that its M message was UN directional

because it did not provideed feedback to

the client and the elements of

measurement are very few and variable

the next came marketing to prompt

advancement in technology liberalization

globalization privatization led to a

modification in the social business life

the economic condition and the demand

for the goods in the market enhance the

bias power the combination of web 2

technology and the marketing practice

resulted in the commencement of

marketing

2. it is marketing 2 is defined as the

utilization of web 2 and the

collaborative resources it offers to

open interactive communication channels

between the consumers and the businesses

it introduced a new model of information

system which linked the customer to the

businesses in a much more effective

manner it starts with the customer and

introduces tools like like WordPress

Facebook YouTube Wikipedia Etc all the

information collected through the

different instruments of web2 the

businesses collect and systematically

organize the data the following steps

are to be followed while collecting data

the first is information gathering

second is database third is

pre-processing fourth is processing

fifth is classification and useful

information extraction after information

goes through all these stages it reaches

the marketing manager where it is

utilized for developing strategies based

on consumer demographics and the current

needs in the market it also helps to

identify and satisfy the needs of the

consumers highlighting their feelings

the stage is focused on the four seeds

of

communication that is Clarity coherence

control and credibility so this this is

the figure so customers web two tools

marketing to information system

information gathering datab base

processing pre-processing processing

classification useful knowledge

attraction and then it goes to the

marketing manager who takes a decision

at the end of the stage the focus was

slowly shifting to the emotional

benefits of a product treating the

consumers as a human who has mind and

emotion that can impact sales marketing

three

is known as value driven marketing

application the rapid appearance of

marketing 3 originated from the

development of New Wave Technologies and

the employment of computers and the

internet the amalgamation of this change

in technology and the shifts of the

focus from consumers to the emotional

needs and wants of the

customers helped increase and Advance

marketing to unprecedented Heights it

focuses on the types of technology that

interacts with individuals and groups

for marketing one the Catalyst was the

Industrial Revolution and in this case

the Catalyst was the rapid globalization

process the concept of coexistence of

human and technology and the emergence

of a creative

Society the idea of globalization is

directly linked to technology as

globalization involves the CH exchange

of goods and services technology and

flow of investment people and

information it introduces A New

Perspective that aims to change the

lives of the

customers this change is made possible

by formulating a mission statement that

contains a moving stories at the

executional stage and influences

consumers so marketing three comprises

of two main steps the first is the

planning

phase now let us look at the consumers

in the planning phase so recognition of

mission priority over Financial results

change in gous perceptions attitude and

behaviors the second is the business

defining corporate values creating

platforms where employees can make a

change the second phase is the

implementation phase again we we will

look at this implementation phase from

the two perspective one is that of the

consumer and another is that of the

business so consumers using the

discussion as a new type of advertising

communicating brand personality based on

values and for business demonstrating

values through daily Behavior within the

company focusing on aligning value with

behaviors so marketing three has these

two phases planning and implementation

again at both these stages we are

looking at the two

perspective so to conclude in this

module we briefly discussed about how AI

is helping in utilizing data and giving

meaning to it then we have discussed a

case study on how ramco cement is

adopting AI we have understood what is

marketing Mar marketing environment and

discuss its components finally we have

discussed about the transition that has

happened in marketing from version 1 to

3 and version four and five will be

covered in the next module these are the

books from which the material for this

module was taken thank

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