The Internet of Things

The last step in promoting a new product or service is creating a successful advertisement to reach the intended target audience. The product, price, place, and promotion are all aspects of the total marketing process used to meet those objectives. With the technological advancements of today, advertising is no longer a traditional, one-way street, but has become an interactive process (The Saylor Academy, 2009). The introduction of IoT, the internet of things, is helping advertisers enhance the overall customer experience when it comes to product, price, place, and promotion (‘What is internet of things (IoT)? – Definition from WhatIs.com,’ n.d.). The concept, which originated in 1999, allows data to be transferred, shared, and analyzed over a network, without help from humans or other computers (Hall, 2018).

By 2020, it is estimated that every person in the world will have access to at least two connected devices (Lueth, 2014). Sixty percent of marketers are now using IoT to manufacture products at a lower price (Matthews, 2018). By 2020, 82.5 million wearable devices will allow IoT to show personal product promotions, while 80% of companies that use IoT have already reported increased product efficiency (Matthews, 2018). Auto companies used IoT to decide that they will install connectivity devices in 125 million new cars by 2022, after data determined that the dealership lot is not the place shoppers make decisions (Millman, 2018). The results, IoT is defining a global market that matches a product, and a product that matches a global market. It is the ultimate internet connectivity, clearly making IoT’s target market, the world.

With the growing use of IoT, companies are becoming more connected and building a better rapport with consumers on social media. Who is using IoT? Transportation, healthcare, and banking are just some of the industries that currently use IoT for public relations to ensure no breach of security happens to their brand. In the retail industry, LL Bean, is using IoT to place chips in coats and boots to collect valuable data that will help them determine consumer needs more effectively, while Wal-Mart is using IoT to monitor store inventory through robots, to determine consumer shopping habits (Matthews, 2018). Samsung’s smart refrigerator monitors internal conditions to check for spoiled food through an onboard operating system which is connected to the consumer’s smartphone (Brandom, 2016).

Advertising has become more interactive, personal, and entertaining thanks to IoT and social media. Why is IoT the future of advertising? Society is automated and computers are on our wrists, in our hands, in our houses, and in our cars. Smart devices allow IoT to grab a consumer’s attention and allow for personal selling at just the right moment (‘Why IoT is the Future of Advertising,’ 2017). Starbucks is utilizing IoT to recognize smart phones of loyal customers as they approach the counter so they are able to greet them by name (‘New Starbucks CTO: Technology is creating ‘hyper-connected’ coffee shops, personalized for each customer,’ 2016).

IoT provides new opportunities daily, and can help a business perform more efficiently (‘Fern Fort University Analytics, Case Studies & Presentations,’ n.d.). Take a look:

• Politically, IoT is bringing countries together through global trade.
• Economically, IoT allows currency and market analysis, to improve cost effectiveness.
• Socially, IoT can allow smart devices to predict buying habits for personalization.
• Technologically, IoT can quickly transmit data from smart devices to consumers.
• Legally, IoT can help businesses stay informed of global regulations and laws.
• Environmentally, IoT can monitor climate changes to determine future business sites.

IoT is Everywhere:

IoT is already doing great things, but I think it could improve shopping methods by helping customers find products within a store. It would be great if I could make a shopping list on my smart phone, then as I walked up and down the aisles, my phone would beep as I walked past the items. Too much time is spent searching for items in larger stores like Wal-Mart and Meijer. A study shows that 79% of retailers in North America plan to add IoT to improve the shopping experience (‘70% of retailers see the internet of things in their near future,’ 2017). This demonstrates how important IoT can be for retail. A second idea would be to have coupons for those items to appear on my smart phone after I put the item in my cart, since studies show that 96% of consumers use coupons (Carter, n.d.).

Jump onboard with IoT and see how it can improve your business!

References

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4. Brandom, R. (2016, January 4). Samsung’s fridge of the future will let you check spoilage from your phone. Retrieved from https://www.theverge.com/2016/1/4/10707894/samsung-smart-refrigerator-connected-fridge-iot-ces-2016
5. Carter, B. (n.d.). Coupon Statistics: The Ultimate Collection. Retrieved from https://blog.accessdevelopment.com/ultimate-collection-coupon-statistics
6. Fern Fort University Analytics, Case Studies & Presentations. (n.d.). Retrieved from http://fernfortuniversity.com/
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10. Matthews, K. (2018, March 9). These 6 Statistics Will Show You Why You Need the IoT.
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