forbes.com
It is
estimated that by the year 2020, the Internet of Things (IoT) will consist of
approximately 50 billionobjects, each with
its own embedded computing system, and able to interact with the existing
Internet infrastructure. This being the case, the pace of development for the
IoT is rapidly outstripping advances made in the areas of today’s electronic
devices, especially since it is widely considered that electronic device
development is approaching maximum maturity.
This has
some far-reaching implications for businesses and the marketing strategies
which they should adopt in order to stay abreast of the powerful trends now
underway.
IoT
marketing strategy
Consumers
respond far more favorably to products which offer appealing personalities, as
evidenced by the vast numbers of products which already have been linked in
commercials and advertising to adorable kittens and talking coffee machines.
All this promotes loyalty and commitment to aspecific brand name,
and this is precisely the kind of desirable effect marketers are always trying
to achieve. In the future, this trend will be emphasized and developed further
to encourage even tighter linkage between consumer and seller.
More
precise targeting of purchasing consumers will likely be necessary during the
age of the Internet of Things. It will become necessary to provide exactly the
right message to the audience most likely to make a purchase, and in the most
appealing format possible. This will require an even greater investment in
advertising production, as well as better research to identify the appropriate
consumer groups to deliver the message to.
Value-addedservices and products will
become even more important and more emphasized. This means that in addition to
the main service or features provided by a product, something above and beyond
must also be built-in. For instance, ordinary watches will give way to
smartwatches, kitchen blenders will be replaced by smart kitchen blenders, and
this kind of strategy will begin to permeate all product development and
marketing strategies. The unique and distinctive value provided by such
products will differentiate them from the competition, and make them seem far
more desirable to the typical consumer.
A
general view shows visitors at the 2015 Internet of Things Solutions World
Congress (IOTSWC) in Barcelona on September 16, 2015. (JOSEP LAGO/AFP/Getty
Images)
Smart device impact on marketing
According
to Steve Reed, VP of Client Development at Elevation Marketing, “We are on the cusp of revolutionary
technological change. The inherent value of the Internet of Things is in
connecting devices to the cloud, which is no different whether you are on a
farm, in a factory, or any of a billion other places. With the advancement of
IoT, every industry will enjoy countless opportunities to market to potential
buyers, precisely target customers and achieve instant results.”
Marketing
and advertising will be rendered much more specific and effective, since many
smart devices will be installed throughout the country which can supply
priceless data on usage. This will allow businesses to develop much more
informed strategies, and improve return on investment for future sales. When
smart devices do not perform to expectations, that information will also be fed
back to the supplier, providing a prompt opportunity for modification and
improvement.
Smart
devices will be used in conjunction with sophisticated Customer Relationship
Management (CRM) tools, so that more than simple gathering and organizing of
client data can be achieved. It will be possible with this kind of CRM
configuration to analyze customer data as well as gather it, so that a business
can take intelligent actions regarding its consumer base. This is priceless for
marketers, because it circumvents the need for processing information through a
long chain of command, and will help identify where a prospect is in the
purchasing process.
Once again,
everything is about to change in the world of business and marketing.
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