The impact of AI on marketing

Hi everyone,

Back again with a new story! Enjoy!

We all know the IKEA principle. Set up the store in such a way, such that it influences your buying behavior. Supermarkets, casinos, all the commercial aids on the streets, online, wherever. Any business that relies on customer's willingness to buy something most likely uses some marketing principle. They are all set up to influence behavior of possible customers. And there is much much more to it. There are so many things that companies can do to influence its customers.

https://www.behavioraleconomics.com/mini-encyclopedia-of-be/ikea-effect/

Before the world of machine learning existed, marketing mainly focused on psychology. Run experiments with test subjects and see if the data confirms your idea. Like the cookie experiment, taking advantage of the scarcity effect. Not to mention, when you are at a store that sells some type of food, the smell of freshly baked cookies makes a person buy more food.

http://www.neurosciencemarketing.com/blog/articles/scarcity-effect.htm#

Now a new field in the work of marketeers has arisen. The quantitative marketeer, the marketeer with knowledge of data science or the marketeer that knows how AI's work. Many companies try to exploit the predictive power and pattern recognition of techniques to increase profits. They want to influence human beings.. Anyone who might be a potential customer.

But when you think of the opposite effect. What if.. we would have virtual private assistant based on some algorithm. Then what happens to the job of a marketeer. Now it does not need to influence the human.. but the algorithm.

Mark Holden, PHD Media’s worldwide director of strategy and planning said once:

‘If VPAs start making decisions for you, then our industry, which is fundamentally about marketing to the pre-frontal cortex, will begin to market towards an algorithm’

Something to think about as an after effect of the integration of AI's in our personal life..