Sample Technology Paper on Internet of Things in Marketing

Background Information

Currently, the Internet of Things has grown immensely due to technological
advancements. The Internet of Things can be used in various fields, including industrial
automation, home automation, healthcare, retail and marketing (Atzori et al., 2014).
Consequently, Internet of things has encouraged computer networking capabilities, enhanced
security and privacy, interoperability, and cloud computing. The above developments have
influenced the growth of the Internet of Things in the marketing industry (Balmer & Yen,
Besides, the Internet of Things can promote logistics and infrastructure, enhancing the
retail industry (Atzori, Lera, and Morabito, 2014). In marketing, strategies linked to the
Internet of Things are very relevant. For instance, the creation of smart speakers and smart
assistants has allowed consumers to find online restaurants, shop online, and check the status
of orders (Hoffman & Novak, 2015). It is through such frameworks that essential touchpoints
are given for marketers to stay linked with target customers. IoT offers customers the ability
to tell marketers their needs. IoT devices also provide marketers with opportunities to listen
and respond to the desires and needs of the target consumers based on behaviours and many
other factors that can be captured via such devices (Opreana & Vinerean,2015).

Problem Statement

Internet of Things developments are currently concerned with optimizing and
automating targets and operations that are only implicitly connected to customers (Yee-Loong
Chong et al., 2015).  In marketing, the Internet of Things enables marketers to provide
consumers with highly personalized and suitable advertisements (Bęcek, 2016). Irrespective
of existing knowledge, the current literature focuses primarily on the technical part of the


Internet of Things in marketing (Yee-Loong Chong et al., 2015). Nevertheless, research on
the Internet of Things is insufficient from a marketing point of view. Therefore, there is a
need to evaluate the potential of Internet of Things in marketing.
Research Goal

This study aims to examine the potential of Internet of Things as a marketing tool. It
also seeks to define the opportunities that businesses will realize in light of modifying new
data connected to the Internet of Things.

Research Questions

Research questions for this study will include:
a) Why does the distribution of connected consumer interactions increasingly become
essential for businesses, and how can companies maximize data benefits?
a) How is the Internet of Things technology intended to be used in everyday life, such as
production, logistics, and automation?


The IoT refers to the complex worldwide data network that connects to various topics,
such as sensors, radio frequency identifications, and actuators (Rymaszewska et al., 2017).
Besides, the IoT is necessary for communication through sensing and data exchange devices.
Therefore, in a quest to provide better services and goods to customers, the Internet of Things
will track, locate, classify, handle, monitor, and control business operations. Rymaszewska et
al. (2017) estimated that there would be an approximation of 212 billion installations of IoT
devices by 2030. Nevertheless, Rymaszewska et al. (2017) also observed that, compared to
other areas, the Internet of Things' actual use in marketing is lower.


Besides, Trequattrini et al. (2016) researched to develop various marketing and
retailing applications for the Internet of Things. By diving the applications into two broad
parts, these authors suggested that one of the segments includes those that impact the
customers directly. Whereas, the other section involves those related to infrastructure and
business processes. The development of a product, digital engagement screens, automatic
replenishment, geo-targeting, and personalized deals provide examples of those directly
impacting the customers (Trequattrini et al., 2016). Besides, behaviour analysis, retail layout,
loyalty programs, dynamic pricing, payment processes, smart store setting, asset and
equipment monitoring, supply chain management, modern business model, inventory and
stock management, and collaborative supply chain management are examples related to
technology and business processes (Trequattrini et al., 2016).
Besides, Shin (2017) carried out a sensing technology report in the iPod/iPhone and
Nike applications. He identified that consumer preferences in the retail and marketing sectors
are understood by analysing and evaluating big data, integrating on-site customer
movements, shopping, and product search queries. Shin (2017) also noted that IOT, if used
efficiently, could lead to more sales, predict future patterns, and mitigate risks. Similarly,
Shin (2017) found that the Internet of Things enables sensors to be connected irrespective of
their location, allowing them to exchange sensor information. However, organizations need
to adopt proper Internet of Things guidelines and marketing channels.
The Internet of Things generates vast amounts of data. The generated data should be
improved and connected through cloud technologies and big data analysis to be useful to
customers. It should also comply with certificates for protection and privacy (Dinh et al.,
2017). There must be the right talent, structure, place, culture, and shape for an organization
to enable its analysis. Nonetheless, Dinh et al. (2017) found that the IoT lacks support
structure, community, and creativity in organizations.


IoT opportunities on Marketing

IoT plays a crucial role in improving customer loyalty in terms of external company
operations. IoT can improve marketing aspects that enable marketers to execute and plan
marketing campaigns creatively through its technological skills. Therefore, IoT provides
consumers with convenience and can also obtain consumer competition and loyalty at the
optimum level, providing marketers with the ability to recognize customer demands, desires,
and needs (Irakli & Marcin, 2016). IoT systems also help to assist clients in decision-making.
Besides, IoT offers production, pricing, feedback, and expertise from one customer to
IoT helps organizations by collecting extensive consumer or product data essential in
customer and product research, making it easier to choose the best marketing approaches. IoT
creates immense quantities of data that come with valuable knowledge, thus generating
consumer value. It also allows advertisers to evaluate the consumer's purchasing habits, and
then they can assess customer desires. As a result, advertisers increase advertising,
responding more quickly to their customers to gain customer loyalty (Łukowski, 2017).
Automated ordering and cloud-based systems make it possible to respond to
consumer needs faster and better. Besides, as IoT is deployed, the establishment and
dedication of delivery networks are more significant. Thus, by applying IoT through
personalization, consumer engagement, and building close customer relationships, marketers
can enhance promotion (Hoffman & Novak, 2015). Advertising enhances or weakens the
sense of security, and it can be carefully managed by advertisers using IoT.


The methodology used in the study is a quantitative research method.



The techniques and methods of communicating with consumers become more
intimate when the Internet of Things is used for marketing purposes. Quality standards are
also met when targeting the precision of the segmentation and the targeted audience. Internet
of Things can also be used as a whole new version of direct marketing. Internet of Things
innovations present some new possibilities for marketers when it comes to communication.
Companies are now using reviews received about goods on social media. The development of
social preferences is influenced, and the views of each social media user are affected.
Ultimately, a product and functionality linked to it can be influenced by the use of
Internet of Things. As the Internet of Things technology and social media are incorporated, a
virtual environment is created in where the user and the business have a closer association. It
is also possible to share verbal data, make customer purchase order and modifying it by an
entity to the customer's requirements. The Internet of Things will be a crucial component of
integrated marketing and communications, transforming how businesses relate with their
existing or prospective customers.


Strategies such as product reviews, email promotions, and customized videos are used
to provide consumers with a marketing experience. Marketers rely largely on customer
relationships to obtain the correct information from customers. The data collected is used in
the promotion of the product. The Internet of Things is the ideal methods in spending
personalized messages to consumers. There is a need for advertisers to develop a
comprehensive strategy on how and why to use consumer data and guarantee accountability.
Marketing plans, particularly for the Internet of Things, should also be established because
consumer communication methodologies and strategies vary from old-fashioned internet


marketing. Besides, companies should ensure that their consumers are safe and protected
from third parties with their data.



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