Marketing, Technology conference in Vändra, Estonia (November 21, 2021)
How IoT impacts marketing strategy

How IoT impacts marketing strategy

The Internet of Things (IoT) is a concept that emerged in 1999 but has attracted more and more attention today. The main postulate of the concepts – the presence in the computer network of physical objects (there are “things”, “Things”), which provide built-in technology for interaction with the environment or a friend. In the Internet of Things (IoT), it is believed that the organization of such networks can completely transform social and economic processes, eliminating the need for human participation.

Marketers did not immediately grasp the potential of the concept and technology. But today experts are increasingly listening and looking closely at the “Internet of Things”. Experts have appeared who are confident that the growth in the number of devices connected to the global network can be turned in their favor; use solutions in many areas (from smart farming to healthcare). And if it all started with cheap sensors, today everything has changed. The Internet of Things (IoT) is no longer just refrigerators that remind the user how to order groceries, how to know the exact time, and how to prepare a meal. Scientists are working to make technology even smarter starting from real-time video monitoring to intelligent iot use cases in the retail industry as new digital marketing trends are empowered by technology.

Why is the Internet of Things (IoT) called a real explosion?

The secret of this is simple: with the right approach, the Internet of Things will allow not only to release new product lines, but also to improve interaction with users, track their needs, instantly offer a worthy solution (this does not even require large-scale marketing research, hiring a bunch of specialists for advertising campaigns, analytics and other functions).

If earlier marketing was “one-way” (we suggest – you buy), today it is interactive. Experts answer questions on social media, provide expert advice, ask for advice, conduct polls, and much more. Maximum interactivity and audience involvement requires the use of fundamentally new tools and solutions: social networks, special applications.

Marketers around the world are working to build strong relationships with customers based on trust and mutual respect, not just promoting products. Now you do not have to attract every passer-by with a shining sign: individual promotions / offers will come to the devices of potential customers.

What opportunities does the Internet of Things (IoT) give marketers?

Product development will be even easier, more efficient. The data that the Internet of Things will provide to specialists will help improve products, improve their quality, add one elements and remove others. Businesses will get a broader view of the use of goods, which is a strong driver for growth.

Strengthening customer relationships. Trust and respect are the tenets on which modern marketing is based. Thanks to the new concept, the business will be able to promptly respond to the questions and doubts of the client. The relationship with each customer will become stronger. For example, even barbershops, where offline custom relationships are top priority, are now implementing IoT technologies to  deliver outstanding customer experiences with personalization.

Demand for innovative products and quality solutions. Implementation of the Internet of Things (IoT) is impossible without a major technological breakthrough. Companies that are the first to implement intelligent and innovative solutions will gain customer confidence and high demand for their products. This applies not only to B2C but also B2B buyers.

Advertising will “grow smarter” and become more relevant. If the product is constantly connected to the Internet, then you can track the user’s activity, his questions and features. And this will make advertising more accurate, as if targeted at each individual client.

There will be more companies that work in the field of software. Of course, more software and technologies are needed to implement the concept. They say that even the United States predicts a serious shortage of programmers in a couple of years (this is a reason to take a closer look at this area).

Marketing tactics and strategies will have to change. Everything is changing. The technologies that were profitable yesterday are no longer doing it today. There is little doubt that the approach to advertising and marketing will change.