How IT and AI have transformed marketing

Information technology (IT) has revolutionised the way businesses approach marketing, enabling more efficient and targeted strategies. The integration of artificial intelligence (AI) has further accelerated these changes, allowing for data-driven decisions that enhance customer engagement and optimise promotional efforts.

Applications of IT in marketing

IT provides various tools that help businesses promote their products and connect with customers in diverse ways. These applications span online and physical environments, making marketing more accessible and cost-effective.

Ways IT is used in marketing

• Internet-based marketing - Businesses use websites to display product information, customer reviews, and multimedia content, reaching a global audience without geographical limits.
• Email marketing - Through opt-in subscriber lists, companies send targeted messages about new offers, updates, or product details at low cost to engaged customers.
• Mobile marketing - Text messages and dedicated apps deliver promotions directly to users' devices; for example, a clothing retailer might use an app to provide exclusive discounts to loyal customers.
• In-store digital tools - Technologies like electronic displays and sophisticated checkout systems allow shops, such as supermarkets, to show timely promotions and monitor buying habits.
• Social media marketing - Platforms act as a digital form of word-of-mouth, where consistent posting encourages users to share and discuss products, building community and brand awareness.

Capabilities of AI in marketing

AI enhances marketing by leveraging advanced data analysis to understand and influence consumer behaviour. It processes information from multiple sources to create more precise and timely strategies.

Key capabilities of AI in marketing

• Data analysis through machine learning - AI examines large volumes of data to identify patterns and insights that inform marketing decisions.
• Consumer behaviour monitoring - By tracking actions across websites and apps, AI helps brands adapt campaigns; for instance, a skincare company might promote products featuring popular ingredients based on current trends.
• Digital advertising optimisation - AI reviews search histories and online activities to target ads effectively, such as a furniture business directing promotions to users searching for particular interior themes.
• Building consumer profiles - AI compiles detailed profiles from user data, enabling customised messages that resonate with individual preferences.
• Real-time customer interaction - During shopping sessions, AI can offer instant suggestions, like an e-commerce site recommending related items as a buyer adds products to their basket.

Limitations of AI in marketing

While AI offers powerful tools for marketing, it is not without challenges. Businesses must consider these drawbacks to use AI effectively and avoid potential pitfalls.

Main limitations of AI in marketing

• Consumer resistance to data use - Some customers may object to personal information being collected, leading to negative reactions or loss of trust.
• Need for human oversight - Managers must supervise AI systems to ensure decisions align with business goals and ethical standards.
• High resource requirements - Implementing AI demands substantial spending on data gathering, skilled personnel, and technology infrastructure.
• Absence of human creativity - Existing AI lacks the imagination and innovative thinking that people bring to creative marketing tasks.