New 5 Ps of Marketing in the age of Artificial Intelligence

Marketing has transformed beyond imagination with implementation of smart technology. Today, every enterprise leverages technology-driven marketing to reach where the customers are! The traditional marketing-mix that centered around product, price, place, people and promotion or the 5Ps needs a complete re-conceptualization as we look back at the evolution of marketing over the last five decades.

Transformation of data into meaningful insights is crucial for decision making in Marketing. Let’s get started by understanding how marketing has become more prospect focused and ROI-oriented as it embraces technology in every stage of its evolution.

How marketing trends have evolved with technology

Marketing was highly traditional until the 2000s and was confined to the use of mass media to a great extent. The high expense was a major deterrent in limiting its use for branding and advertising. Moreover, the reach of a campaign used to depend on the marketing budget and there was no way for a marketer to measure its actual impact and/or generate leads.

Since 2000, digital marketing has been driving businesses as it is more persona driven and is cost effective. With its advanced segmentation, it helped marketers reach targeted audiences through multiple channels across different stages of the sales funnel using the right mix of channel and content strategy. Unlike the traditional marketing, content in Digital marketing can be quickly altered and adapted which was a major drawback in traditional marketing. With the power of social media, digital marketing has the power to make the content go viral and reach more audiences. So, here the reach doesn’t depend only on the budget but on many other factors – primary being the content.

Digital marketing has demonstrated improved ROI over traditional marketing in most cases, but intervention of technology in marketing has opened up a host of benefits and its implementation has picked up rapidly.

With data driven decision-making, AI-powered marketing is leveraging the huge amount of consumer data that is being generated on a daily basis to derive powerful insights from them. With its power to predict consumers’ behavior, AI will support marketers to implement targeted marketing strategies with real-time analytics.

The New 5 Ps of Marketing that define new age marketing strategy

In the backdrop of the AI evolution, we observe a marketing focus shift from a product or service to the customer. Analysing customer data and operational data to predict customer behaviour AI can support in defining a clear strategy for various channels. The recommendation engines provide personalized experience with high satisfaction rates to the customer. Artificial Intelligence has opened up innovative ways to travel along with the prospect in their buying journey.

And, in order to be successful marketers, we need to have the perfect combination of few crucial aspects – the new Ps in AI powered marketing – profiling, personalization, preferences, prediction, and platform are crucial for customer satisfaction in target marketing and these add value to the business.

Profiling: Marketers and businesses use this tool to recognize and understand their potential customers. This helps them while making business decisions. Similar profiles can be grouped based on demographic, geographic, psychographic and behavioural characteristics. This micro segmentation helps in analysing behavioural intentions , purchase patterns etc.

Personalization: Personalized experience can be delivered by recommendation engines which leads to very high customer satisfaction rates which in turns deliver high ROI. Business can leverage the power of AI to deliver individualized product suggestions to current or prospective customers optimized as per the buyers intentions .

Preferences: Knowing consumer preferences in today’s new-age marketing era makes it easier for marketer and businesses to target the right customer which leads to long term customer satisfaction. This helps in an efficient , customer oriented , targeted marketing campaign dedicated to delivering the right message to the right people at the right place at the right time keeping in mind his/her preferences.

Prediction: With huge amounts of data widely available, marketing decisions have become smarter with predictive analytics. Using new age technologies to analyse the data available is helping the marketers and businesses predict customer behaviour, qualify and prioritize leads. Predictive analytics can support businesses to launch the right product/service into the market.

Platform: The selection of the right platform is very crucial for a marketing strategy to work. Platforms create value by attracting, matching and connecting various groups of customers. Optimal usage of various channels including search engines and social media with right content can go a long way in successful marketing.

AI-powered Marketing and skills in-demand

The new 5 Ps in Marketing is changing the entire marketing landscape and is helping the marketers and businesses to leverage the widely available data to develop valuable insights. With the use of AI, brands are now focusing on more personalized and prospect driven marketing strategies with an additional focus on ROI.

As major brands are implementing AI-powered marketing, there is a huge demand for skilled people who not only know the technical sides of AI but also know how to apply it in the business context. According to a recent PwC study, 72% respondents viewed AI as a “business advantage”, however, acute shortage of expertise is one of the major challenges in the adoption of AI in Marketing. Research shows that 85% of AI projects fail due to risk, confusion and lack of upskilling among marketing teams.

Also read: AI-Powered Marketing is the Future https://www.nationalskillsnetwork.in/ai-powered-marketing-is-the-future/

Therefore, there is a huge demand-supply gap that needs to be addressed through skilling, reskilling and upskilling. With an aim to bridge the demand-supply gap, advanced courses are being offered by leading institutes in this domain to ensure that aspiring CXOs, business heads, and marketing professionals are prepared for the new-age marketing. With the required skills professionals will be able to leverage the power of AI in taking data-driven marketing decisions to maximize their marketing yield, engage customers with precision and leverage superior customer insights.