Artificial intelligence is becoming a driver for any marketing campaign. According to Salesforce analysts, more than half of marketers already use AI in digital marketing and are convinced that it`s an irreplaceable instrument for any type of marketing, stimulation one is no exception.
What Is Stimulational Marketing?
Lack of demand for a product or service is a tall order for any marketer. And it is not even about negative or positive emotions about the product, but a complete indifference or disinterest on the part of consumers.
This demand may take 3 main forms and shapes.
The first case is when a certain product has lost all its value. An example would be once vehemently sought-after PS4 or any other products that went out of favor.
The second case is when goods have a certain value but in a different area, region. Imagine selling boats in places where there are no rivers, oceans, etc.
The third case is when there is no demand for new goods on the market because the market is not prepared for them. An example could be fancy products that customers are not aware of and will be interested in it only once they see them.
With that said, marketers have to change customers` indifferent attitude to the product, and if possible to spark interest in product or service, improve distribution and advertising of products, etc.
A sharp decrease in prices, strengthening of advertising, diverse methods of product promotion could help to solve such problems.
4 Latest Trends in AI Application
Good. Marketers know all the pain points and how to act accordingly, but what does AI has to do with it? Well, today artificial intelligence in business is an essential tool, and here is why.
AI Helps to Identify the Target Audience
Today marketers use AI as a tool to analyze the transactional activity of a customer to develop a target profile (for example, income level, average receipt in the store, or the purchase of competing products) and to create the most relevant promotion strategy according to this profile.
As a result, a targeted offer would not only allow exceeding the KPI on sales but also impacting customer loyalty.
Well, it has human intellectual abilities that allow it to find patterns between seemingly random things. That is important for stimulation marketing campaigns since you can find more cross-sell opportunities. Consequently, the processing of large amounts of information leads to high-quality analytical results.
For instance, AI can tell us that people aged 25-30 who go hiking in the mountains are more likely to buy oranges than other people. Based on this kind of data, marketers can reach out to this target audience and increase product sales.
Ai has found it routs into media placement too. It allows businesses to plan, prioritize, and optimize their ad placements. Given that stimulating marketing requires tight audience segmentation, AI can help more than ever.
German automaker Volkswagen, for example, has already entrusted media buying management to artificial intelligence. As Volkswagen states, it does a better job than traditional approaches. The market has long understood that the future of marketing lies in in-depth profiling and hyper-segmentation of customers.
That’s why micro-influencers (bloggers with thousands of followers in social networks) are today rock stars in marketing communications. Promoting the right product with the right Influencers can help to attract a more solvent audience.
This is especially common for retailers. To increase sales and profits, retail outlets can flexibly adjust prices with in-depth analytics-based systems. Today, thousands of different retailers around the world are already using deep analytics-based AI applications. By implementing algorithms, companies are testing the fundamental laws of market economics.
Traditional books about marketing and economics say that in open competition, companies with similar products need to lower prices to attract customers. That’s why simple rules such as keeping the price lower than the competitors often are built into the common analytics software.
AI algorithms work differently. They monitor and set new prices several times a day depending on the goals set by marketers. Such systems have arrays of historical information and real-time data at their disposal to predict how customers and competitors will react to any price hikes under different scenarios.
This provides an effective understanding of market dynamics.
The AI analysis usually includes direct and indirect competition factors that offer similar solutions/products or have the same target group. It should be noted that different products may still appeal to the same target group and, as a brand, you are competing for their attention.
Methods of classical marketing are unlikely to be useful today since they are not adapted to digital reality.
However, AI offers quite a few ways and tools that will give you comprehensive information about your competitors. That enables marketers to act accordingly and plan the following:
- Find indirect and direct competitors
- Compare product distribution
- Compare positioning and established brand image
- Compare methods and used promotion channels including budgets
- Analyze target audience, awareness, and commitment to the product
To wrap it up
Personalized marketing communications that meet the interests and needs of the client are already becoming the accepted standard. Of course, identifying those very interests and points of communication manually is expensive, time-consuming, and has a high probability of error.
That`s why AI is becoming a more popular tool for many marketers around the globe and has already proved beneficial in many marketing areas.
About the author:
Kyle McDermott is a web developer, blogger, blockchain enthusiast, and business analyst. He loves to write about new technologies, business news, and sports events. Kyle is also a proofreader at Computools. Follow him on Twitter.