University of Greenwich (UOG)

Bachelor of Arts (Hons) Business Management (Top Up)

ASSIGNMENT / PROJECT COVER SHEET
(to be completed individually by student)

UOG ID Number 001046576

CHUNG NGUYEN PHUONG UYEN

Course Specialization Marketing and Sales

Subject Code/Name MARK 1501/ CONTEMPORARY ISSUES IN

MARKETING

Assignment Title ESSAY 50%

Lecturer/Supervisor Ms. Natasha

Word count 7765

DECLARATION

I, the above named student, confirm that by submitting, or causing the attached assignment
to be submitted, I have not plagiarized any other person’s work in this assignment and
except where appropriately acknowledged, this assignment is my own work, has been
expressed in my own words, and has not previously been submitted for assessment.

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Table of Content: 1

Introduction 2

1. Disruptive technology 3

a. Definition 3

b. A gallery of disruptive technologies 3

c. How it affect the practice of marketing? 6

2. Cloud technology 8

a. Implication to contemporary theory 8

b. How it affect the practice of marketing? 12

i. Customer side 12

ii. Marketer side 12

c. Advantages/ Disadvantages 13

d. Prediction for future 14

3. Internet of Things 15

a. Implication to contemporary theory 15

b. How it affect the practice of marketing? 29

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 i. Customer side 29

ii. Marketer side

31

c. Advantages/ Disadvantages 34

d. Prediction for future 35

Conclusion 37

References 38

Illustrations 43

INTRODUCTION

In 21st century, technology development have significant affected in the business in general

and marketing in particular. They also change the lifestyle of human a lot which result in the

businesses, they must keep up with the trend in order to not to be excluded from the economy.

Hence, nowadays Internet is considered an integral part of life, more and more technologies

launched and developed with internet-based platform as well as everyone must get ready for

Industrial Revolution 4.0 (also known as Industrial Internet) since it is taking place in many

developed countries, it gives mankind the opportunity to change the face of the economy with

many disruptive technologies but there are many hidden risks (Marr, 2016). With all of that, the

global economy in the future will have new turning points and buying behavior & decision making

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of consumers as well as marketing strategies of companies can be affected greatly, they must

change if they want exist in the market.

Fig 1: “Fourth Industrial Revolution”, 2011

1. Disruptive technology

a. Definition

According to Cambridge Dictionary, “disruptive” have both positive (breakout, innovate) and

negative (interrupt, break) meaning. Disruptive technology is a new technology which revolutionize

the world around us by altering the way things are done. Then, it can bring both advantages and

disadvantages for businesses (“Disruptive technology”, 2018).

In business terminology, disruption’s concepts come from the term of destruction, from

disruptive technology to disruptive business model innovation. It is crucial for business survival.

Companies need to apply it to change the way they operate significantly in order to increase

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market share, compete with big competitors. However, if the business model not viable to adapt

technologies, they will lose market share even collapse (Holmen & Habtay, 2012).

Internet is seem to be the biggest or the origin of disruptive technology which lead to the

breakout of many others. Disruptive technology have ability to change existing business model

and so does Internet. Base on internet – platform, Wi-Fi, smartphone, e – commerce, and the

phase “online” appear, strongly develop and affect human society. With the rapid development of

IT (Information technology), it led to the outbreak of disruptive technologies in the future, transform

life, business even replace human being.

b. A gallery of disruptive technologies

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 Fig 2: “A gallery of disruptive technologies”, 2013

According to McKinsey Global Institute, it is estimated that there are 12 technologies can

bring the most disruption for the economy in 2025. Mobile internet, cloud and internet of thing

(IoT) are 3 technologies potential economic impact. Advanced robotics & autonomous and near –

autonomous vehicles are considered Artificial Intelligence which is the most influential technology

that people believe it will be change their life significantly and replace many daily items such as

nowadays some families remove their broom and choose robot to clean their house in order to

save time (Prevett, 2018). All technologies above are not work individually, they are part of each

other even the new generation of technologies go ahead, combinations of technologies could

have multiply impact. For example, Internet of Things cannot work without Cloud to storage

information and exchange among devices; Internet of Things based smart sensors agriculture

stick for live temperature and moisture monitoring using Arduino, cloud computing & solar

technology to create Smart Farming; the combination of next-generation genomics with advances

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in nanotechnology has the potential to bring about new forms of targeted cancer drugs (Manyika,

et al. 2013).

Fig 3: “Poll of influential technology of 2018”, 2018

Moreover, other technologies such as next – generation genomics, advanced materials and

renewable energy, etc. still have a lot of hidden power that scientist need to discover and if all of

these can apply to the real life, it can create new era of development of technology, new age of

intelligent as well as shaping new future for industries, transform life, business, and global

economy in general and marketing in particular (Manyika, et al. 2013).

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 c. How it affect the practice of marketing

“Technology is set to unleash another wave of disruption on marketing”

Emerging disruptive technology can affect all marketing mix 4P’s (Product, Price,

Promotion and Place) and even 7P’s as well as customers’ behaviors because it change the way

people consume products.

+ Product: Technology apply directly on the product to improve itself. That will be also the

unique selling point which attract the attention of customers. The product itself generate

relationship, interact with the customers.

+ Price: May cut cost for the business and lower price for customers.

+ Promotion: With the digital technology development, traditional advertising (TV, radio,

banners, leaflets etc.) will disappear in the near future replace by online media. With the help of

social media, marketers can put advertising on social media platform for customers easy to see

and share, it increase organic reach and it also cheaper way than making a banners.

+ Place: Physical store no longer need anymore. For example, e – commerce retailing has

led people to buy product online instead of going to the store which save time, bring convenience

for customers.

+ Process: Everything can be automated. Besides, business apply disruptive technology to

shorten movement of process, products can reach customers from manufactory faster than ever.

Nowadays, only “1 click” customers can have a product just within 2 hours.

+ People: Customers want the best experience and expect a lot of functions that product

can bring to them and of course with reasonable price go along with warranty.

+ Physical Evidence: Because physical store no necessary anymore, businesses don’t

need to improve their physical evidence to branding image, let’s this part to be the responsibility of

product.

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 To be more specific, in marketers’ aspects, they must be ready for the disruptive technology

integration, they must have ability to analyze enormous data, know the insights of customers, and

improve CRM (Customer Relationship Management) to gain loyal customers, especially, product

relationship management. Marketing in the future has to be one who can wage a deep intense

debate with product management and data management to provide the best experience for

customers.

Cloud and the Internet of things (IoT) technologies have close links and mutual assistance

in operation and work well together. The next era of Smart Computing will be totally based on

Internet of Things (IoT). Next part will focus on about how they apply in human life and how it

affect the marketing of businesses.

2. Cloud Computing
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 a. Implication to contemporary theory

Fig 4: “Cloud”, 2013

Cloud Computing is the storing of data on remote server and accessing them via the

Internet rather than saving or installing them on personal/ office computers. With the Cloud

Computing, all stuffs such as applications, files, data, documents can be stores in the infinite

space of the WWW (World Wide Web) instead of on the limited space of computer’s hard drives.

The term Cloud is used because data and applications are stored on a Cloud or collection of web

servers and computers owned by a third – party (Manyika, 2013).

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 The Cloud can be accessed via the cloud computing system interface software that can be

a web – based service which host all stuffs people need for job or personal life. Besides storing

data, the Cloud is also used as an inexpensive yet effective and flexible tool to purchasing,

operating and maintaining in - house equipment and software. Moreover, it give ability for people

to work anywhere, at any time because your information is always at your fingertips. One example

of Cloud Computing is an online email account such as Gmail. A user log into a web email account

remotely through a browser but the storage for their account doesn’t exist on the computer, it

belongs in the email providers cloud (Jagirdar et al. 2013).

Fig 5: “Cloud Computing”, 2018

There are basically 3 layers to Cloud computing: Infrastructure as a service (IaaS), platform

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as a service (PaaS) and software as a service (SaaS) (Hurwitz, 2012).

 IaaS provides scalable storage and infrastructure:

In the past, when businesses create a website, they put it on a computer or a server

somewhere, the data increased that meant you need to buy or rent more serves which cost a lot

of money. Moreover, when they not using the server, they still need to pay which waste of money.

To solve this problem, Cloud Computing is the most optimal method. With Cloud, business can

access to computing power instantly when they needed. Putting website on a Cloud server just

like put it on a dedicated server. When more and more customers visit the website, businesses

can scale up as much as computing power they need almost instantly. Example for IaaS are

Amazon web service, Window azure, etc. (Hurwitz, 2012).

 PaaS provides high technology development tools for development and deployment

PaaS solutions can bring value to companies in need of software development. With it,

businesses receive a platform that can be used to achieve a few goals. Some companies use that

platform, integrating the functionality available with existing products, solutions, or services. Other

companies are building on the PaaS platform to create new products or add value to existing

products. For example, Apache Strato helps run composite, deploy applications (Hurwitz, 2012).

 SaaS provides flexible, readily available software access

SaaS is a distributed model for software whereby instead of downloading the software to

run locally on a PC, the program is hosted by a third – party vendor and then accessed by the

user via the Internet. The program is usually through a web browser interface. For example,

salesforce.com is a custom app builder which is help business to extend CRM data with app;

Google Drive – free Cloud storage for personal use or you can play game through Internet without

installing it on your computer (Hurwitz, 2012).

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 Fig 6: “How Cloud Computing work”, 2012

The Cloud Computing has 2 parts: the front – end and the back – end which are connected

by the Internet. The front – end represents the computer which able to access the Cloud system

by using Internet browser or unique interface software. The back – end is comprised of the

computer servers and data storage system. It has a central service to ensure everything works

smoothly and it follows set of rule called protocols. Besides, it also uses software called

middleware which allow network computer to communicate with each other (Hurwitz, 2012).

The reason why Cloud is considered one of disruptive technologies is that it cause a huge

transformation for global economic and human life. Instead of saving files in internal memory of

mobile or computers, nowadays people refer use Cloud for the reason of permanent storage.

Moreover, it is viral foundation for the development of other disruptive technologies, it also a driver

of mobile Internet, Internet of Things, Automation of Knowledge, digital technologies, etc.

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 b. How it affect the practice of marketing

i. Customer side

In recent years, the cloud has dramatically changed the digital customer experience.

Customers’ experience is improving days by days. In the past, the website with be stored in

serves would limit the number of people to visit, if it over the limit, the website may crash or it

leads to customer’s actions very slow, and that it not happen with the Cloud. Moreover,

combination with online technical support, the huge data Cloud stored allow customers easy to

assess and searching for the product they want to buy as well as have comparison among brands

before making decision in short time which bring a lot of convenience for them. Sales Force.com

is expressive example of using cloud computing for marketing activities. It support

communications between customers and marketers and customers’ services. For instance,

customers can connect with the technical person by video conference for solving their problems

(Yildirim, 2012).

ii. Marketer side

In the age of mobile, with the advancement of digital technologies in 21 st century and Cloud

technologies, it help businesses attract and retain customers as well as marketers can easily

address customer needs. Cloud has unlimited resources that marketers can take advantages

such as respond to their customers in real time. Moreover, marketers must always focus on

emotions and feeling of customers that’s is only way to make them be loyal to brand because it

bring “real experience”. Cloud technology integrates with Mobile Internet and Internet of Things

allow marketers have many insight information of their target customers and maybe segment of

potential customers in the future must be focus more. So that, marketers instead of creativity skills

and planning strategy, they must have good ability in analyze data and advanced knowledge of IT
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and how to use Cloud in efficient as well as take as much as advantage from it (Yildirim, 2012).

c. Advantages/ Disadvantages

ADVANTAGES DISADVANTAGES
- Lower operating cost: Cheaper than pay - Usage fee: Infrastructure of Cloud
for buy or rent serves from third –
computing is very expensive, third – parties
parties for businesses & reduce paying
will charge you monthly or annually fee
for IT problems.
when you have a demand of scale up the

storage ability.
- Ability of recovery: Data auto save on - Privacy: Cloud computing services can be

Cloud, when incident occurred, it hacked.

possible to get the file back.

- Accessibility: Data stored at remote - Accessibility: No Internet, no data

location and easy to access via Internet,

it bring opportunities to work at

anywhere, anytime.
- Bandwidth: Avoiding send files for only - Bandwidth cap: Limited the amount of data

one person, web link can be sent for a allowed to transfer over network each

lot of people through email. month. If go beyond the limit, providers will

slow down connection speed as well as

charge more fee.

- Usability: Users can convert file location - Security: Handing important data to another

between Cloud storage and personal company can be a big problems if the third –

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 local storage. party leak out the information.

(Obrutsky, 2016)

d. Prediction for future

Fig 7: “Future of Cloud technology”, 2013

Beside delivering valuable service and application through the internet, the Cloud can also

be used as a tool for companies to manage their IT in a productive and flexible way, which show

great potential in the future for many business models. Thanks to the rapid proliferation of

smartphones, Internet users in 2025 over the world will reach the number of 5 billion which will

cause the demand of off – device processing, storage and applications. It is estimated the total

potential economic impact of Cloud will be $1.7 trillion to $6.2 trillion in 2025. Cloud can increase
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10 to 15 percent productivity for software development by saving time. A technological

breakthrough of the Cloud in the future will be something crucial for many companies that is using

the technology today especially when IoT evolve into a huge industry because Cloud is a

fundamental part of the IoT’s infrastructure (Manyika, 2013).

3. Internet of Things (IoT)

a. Implication to contemporary theory

Fig 8: “Internet of Things”, 2018

Technology is changing our world. Thanks to the influence of technology, especially, the

combination of IoT and M2M interactions create and provide connectivity, automation and improve

people's life and even business operation. IoT is a broader concepts of M2M which more and

more factories apply in their manufacturing process to increase productivity. M2M technology can

be applied in many different industries from daily life to business activities. Its asset tracking and

monitoring capabilities have made M2M an important tool in warehouse management and supply

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chain management. For example, M2M's updated tracking feature makes it easy to add

merchandise to vending machines. Petroleum suppliers can utilize M2M to detect indicators such

as pressure, temperature, equipment status, etc. In general, the applications of M2M are not

limited. M2M is a flexible technology that converts conventional machines into "smart" ones, which

means moving to the next phase of M2M: Internet of Things (Mulligan et al. 2014).

It can concluded that IoT is a network of objects, devices, machines, vehicles, appliances

which contain software, electronics can connect to the Internet in order to interact, collaborate and

share experiences (exchange message) without human – to – human or human – to – computer

interaction (“Understanding the Internet of Things (IoT), 2017).

In addition, there is a need of IoT from people. In the past, you need to run from machines

to machines telling them what to do for you, but with IoT, it is help to reduce human intervention.

Beyond the expectation, machines can adapt to your needs and modify how they functions.

Embedding sensors and actuators in machines, devices is help organizations manage assets,

optimize performance, and create new business models.

The reason why IoT is considered the most disruptive technology is changing nearly

completely the behavior of everyone, transform life more interesting, make things more intelligent,

have sensors (like sense of human), it not an object anymore, it can be friend who can interact

with people or even tell us how to do as well as bring a lot of benefits for human being.

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 Due to functions, applications of IoT can be divided into 6 aspects (industries):

 IoT in everyday life

Considering your air – conditioner at home. When you just arrive home, you turn on it with

suitable temperate and wait for about 3 minutes, you will feel how the air – conditioner do their job.

But with IoT, it will bring you better experience. Imaging your car/bike link with air – conditioner,

when you nearly reached home, the car/bike will send a signal to the air – conditioner and it will

turn on for you then you can will immediately comfortable when you come home. Moreover, 2

devices will connect and share date with each other through Cloud which contain many relative

data such as temperate outside, location of the vehicle at that time.

Fig 9 “Uber’s Cloud”, 2015

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 Uber is one successful example of IoT in this aspect because they are use connected

Internet devices (smartphones) represent for drivers and passengers interaction. When Uber

receives such a request, Uber’s Cloud service then uses near real – time analytics to determine

which car is the best fit to service the request (Wyman, 2015).

Another interesting example is AI (artificial intelligence) assistant – virtual assistant

programmed by Mark Zuckerberg, it named Jarvis. It activated by voice and able to control

household devices and install in the smartphone app. It collect all data of owners from many

resources such as their Facebook account, Gmail, Calendar, it know almost everything belongs to

you, around your life such as when you eat breakfast, what is your interest, with the facial

recognition capacities, it help you to know who is knocking the door and provide the security

(Fiegerman, 2016). Home appliances applied IoT Oral-B’s Connected Toothbrush, Babolat’s

tennis racket Play, and Nike’s running shoe, all these still have basic functionalities but extending

with the ability to collect and share data via the Internet.

Moreover, IoT can transform purchasing process of consumers by applying to supply chain.

Delivery now is one of examples. Customers so not need to come to the store to buy food & drink,

they just choose what they want on an app, and information will transfer to the store and the

driver. Within 1 hour, customers get what they want. Various every days thing connect to the

Internet, it like you miniature world into small size fit in your hand and you can control them just by

the Internet.

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  IoT in healthcare

In the traditional way, until you notice that your body is not good with many symptoms,

signals of a bad health condition then you go to the hospital and lets the doctor diagnosis for you.

This is very risky because some illnesses do not have any specific symptoms especially cancer.

That’s why many case of patience who have cancer usually in the final stage because it is not

detected early. Besides, healthcare industry faced with many problems such as no real time data

available, lack of smart care devices and inaccurate standard analytics. Solutions of IoT can solve

of these problem. IoT provides real time data, make devices smarter as well as present far

superior analytics (Kodali et al. 2015).

Fig 10: “Patient check – ups”, 2015

IoT based healthcare systems play a key role in the growth of medical information systems.

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To enhance the healthcare system tracking, tracing and monitoring of patients are essential. IoT

ensures the personalization of healthcare services by maintaining digital identity for each patient

(“Solving health challenges”, n.d).

According to IMB (International Business Machines) Watson Health, a smart care devices

working through 3 stages. First care devices have RFID (Radio-Frequency Identification) to

identify and track data of patients. When an emerging problem of health appear (real – time data),

smart sensors of devices will send signals to the Cloud through connection gateway and then

Cloud pass the remote signal to smart devices that monitor by a nurse or a doctor in hospital.

That’s will help the patients be treated promptly (“IBM has the cloud for smarter healthcare”, n.d).

Implication this technology, many health and fitness app as well as smart watch launched in

order to improve life quality of human especially keep up with the trend of health – conscious. For

example, smart wearable devices (watch, bracelets) can count your footsteps per minute which

connect to an app to analyze the energy that you you've freed, help you to control energy and also

the best way to lose weight. For the elderly, there are many devices can measure blood, blood

glucose such as Apple Watch. However, in the healthcare industry, there are a lot of health apps,

people need to search carefully before using to prevent the misdiagnosis of unreliable brand.

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  IoT in smart city

Fig 11: “IoT in smart cities”, n.d

A smart city is an innovative city that able to use ICTs (Information and Communication

Technologies) among many others to improve the quality of life, provide digital connectivity, well

organized and efficient urban operation & service and enabling better decision making. All of this

is accomplished while ensuring that it meets the need regarding economic, social and

environment expectations of the present and future generation (Srinivasan, n.d). In smart cities,

there also have many issues can also a global problems such as waste control management,

traffic management, water resources management, housing issue, and pollution. To solve all of

that issues, it is crucial to apply IoT (Choudhary, et al. 2017).

For example, smart traffic system. Smart device such as traffic cameras to monitor the road

of traffic jams, accidents, etc. and communicate that status to the gate way which receive date

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from various cameras all around in the city. When problems happen in specific road, the smart

camera will send the insight to the city wide traffic system. Because of its intelligent, the system

can analyze the situation, predict its impact and transmit it to monitoring system of other near road

that connect to the road has problem, then traffic management system can send the information to

drivers around that area through medias such as radio channel, all of that it help to prevent the

traffic jam.

Fig 12: “TTGT TPHCM”, 2018

Implementing IoT in last 2 weeks when Vietnam suffered from Hurricane No. 9 (Usagi)

which caused floods in both HCM city and neighboring provinces. The Vietnamese government

launched an app for both Android and IOS operating system called TTTG TPHCM (Traffic situation

in HCM City) order to help residents conveniently move on the road. This app has the same

functions of Google Map, not only that, it connectivity to traffic cameras off all routes. It provides

pictures of the road at that time, help people to prevent to go in flooded roads as well as find

another way for them to reach the destination. Besides, after the hurricane, the app still useful, it

give drivers information about the route quickly about traffic jam or accidents etc. in peak period in

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big cities such as Ha Noi, Ho Chi Minh City… It also offer other utilities like the location of speed

sign, public toilet, gas stations, and hospitals (“About TTGT TPHCM”, 2018).

In logistics aspect, IoT can help a great deal of it especially in a very large scale. For

example, DHL provides shipping, warehousing, distribution, and supply chain management all

over the world which need a lot of communications. DHL’s IoT help it to tracking and monitoring

the product easily by the RFID tags. FexEd is another example, it offer a programs for customers

tracking progress of packages. This is also applied in many delivery services (Manyika, 2013).

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  IoT in agriculture

Fig 13: “IoT in agriculture”, 2017

Agriculture industry need IoT to solve many problems: inaccurate in practices, labor &

training costs, and irregularity due to physical monitoring. By applying IoT, it can provide precision

farming, smart irrigation, and smart Greenhouse (Stoces, 2016).

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 Fig 14: “IoT in Greenhouse”, 2018

IoT brings a lot of benefits for the Greenhouse farming which optimize the effect and easy

to manage with the help of Internet devices. Moreover with the sensors and actuators, they help to

practically control the climate inside the Greenhouse. It is a 2 ways communication. The sensor

read the issue inside in the Greenhouse then deliver information via Connection Gateway to the

Cloud which then send remote commands via the same gateway back to the sensor. So once

these signals are acknowledged, they pass on to the switchgear then activate the light, turbine…

inside the Greenhouse (Stoces, 2016).

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 Fig 15: “Farm Bot”, 2016

FarmBot Project stared in 2011 which is one example of IoT in agriculture, it is humanity’s

open – source CNC (Computer Numerical Control) farming machine. FarmBot Genesis can plant

more than 30 types of crops, perform almost all pre-harvest processes including sowing, weed

control, and irrigation. Not only that, it collect data of age of the plant, weather conditions. It

managed via a web – based interface that allow remote access from any location on most internet

enable devices. There is an online crop database called OpenFarm which collect all information

and can create an optimal planting plan (“FarmBot”, 2018).

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  IoT in industrial automation

Fig 16: “IoT in Industrial Automation”, 2018

Business nowadays tend to use automated machines to generate products effectively, save

labor cost, increasing productivity and it is easier to control than manage people. The

disadvantage of normal automated machines that it is work independently, when problems

happen, it will stop or become overloaded then result in destroying the goods. IoT application will

have the process go more smoothly when devices can connect, transfer information to each other

as well as connect to server which monitoring by supervisors to prevent accidents, know how

things work without having to be there. With remote monitoring, they can enjoy holidays and

everything is still going well (Deshpande, 2016).

 IoT in disaster management

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 Fig 17: “IoT in Industrial Disaster management”, 2018

Developing countries faced with many problems such as high population density, poor

evacuation infrastructure and expose to severe weather conditions (natural disasters). For

example, Vietnam usually faced with hurricanes, if there is not timely notification to evacuate

residents, it will cause great damage to people and property to the country. IoT is applied to

prevent that from happening by prediction, prepare, response, and recovery. Sensor will installed

in areas where natural disaster usually happen. Any signals of the disasters will transfer to the

Control room or smartphone of residents via network gateway and then government can come up

with measures to handle timely (Ray, 2017).

b. How it affect the practice of marketing

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 i. Consumer side

Fig 18: “Consumer Internet of Things”, 2016

Depend on the purpose, types of devices and applications applied IoT with connect directly

with customer life, it called Customer IoT. Research showed that smart home is the most popular

Customer IoT. Moreover, some of cases can be both Industrial and Customer IoT which called

cross – industry IoT such as health tracking devices, smart car, smart washing machine, etc.

(“Consumer Internet of Things (CIoT) – what is it and how does it evolve?”, 2016).

The development and implementation of IoT expand rapidly, consumer attitudes towards

the Internet of Things have changed or are changing with increased awareness or as people

interact more with the Internet of Things. Looking at positive side, IoT can bring many benefits to

customers including fast respond services, easy to give feedbacks, everything is fixed remotely,

convenience, support them in decision – making, etc.

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 Furthermore, trend of technology, smart devices affect purchase process of consumers,

significantly influence humans’ behavior, change their demand to be more complicated because

they will expect more about convenience as well as the best experience which shaped by digital

devices and services, sometimes without human knowledge (“Testing our trust: consumers and

the Internet of Things”, 2017).

However, IoT in consumer’s mind is still not the perfect and best choice. There is a survey

found that 60% of consumers concert about devices enable Internet connection and 20% don’t

think IoT will bring benefits for them. 2/3 of consumers worry about private issue and 1/3 is about

security. Surprisingly, another survey conducted in 28 countries globally showed that majority

consumers didn’t trust the Internet, they don’t think technology can protect their data, ensures

quality control, and keeps them safe. 59% of 300 tested Internet of Things devices don’t properly

tell customers how their personal information is being used. That’s will be a difficult problem for

the marketer to conquer and gain customer trust (“Testing our trust: consumers and the Internet of

Things”, 2017).

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 ii. Marketer side

If you’re on in an ongoing relationship with customer, you don’t need to advertise them.

Customer Relationship Management:

Technological advancement especially Internet become indispensable part in human life

and dozen devices can connect to Internet combine with Word Wide Web, all change the way

marketers interact with customers. Instead of interviewing, doing offline survey or salespeople

must have ability to convince customers buy products, IoT create a new environment for

marketers to study customers’ insight. All devices communicate and exchange data through a

Cloud, where all data will be stored and marketers can gain benefits from these data such as

improve products features or adapting the IoT products toward individual customer needs or

customize usage-based pricing and this allow business can facilitate the application of price

discrimination strategies. Regarding the availability of web-based and mobile applications,

marketers can exploit and find more potential customers (Decker & Stummer, 2017).

Move to the next point, with IoT products, the challenge of CRM systems switches from

data collection to data handling. Marketers need to have ability of capture and analyze all the

usage data of customers. Because the resources is come from a lot of sources which may make

marketers confuse and distract, they may not focus on their target customers before finding new

segment (Decker & Stummer, 2017).

Last but not least, what marketers gain from IoT is large amount of data to understand

decision – making, behaviors of customers is not enough. They can use these information to

make the product better but how they can make the customers become loyal with be a different

aspects. However, IoT is a great help for marketers in this matters because nowadays people

interact almost via Internet devices such as mobile, laptop… as well as Internet is considered an

Advertising Media which marketers take advantages. Besides spending time to analyze big data,

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they need to communication with customers through social media in order to make people fill

happy with the service attitude as well as build strong relationship with them and IoT make it

become easier. For example, when problems happen, information immediately transmit to the

company, they can handle it in short time without wait for customers’ feedback. The function of

product can be copied but emotion is not, gain trust from customers will help marketers win their

competitors. IoT provide personal information of customers such as birthday, anniversaries help

marketers to create a loyalty scheme lead to long – term relationship (Decker & Stummer, 2017).

Product Life Cycle Management:

All products have to been through 4 stages of Product Life Cycle (PLC): Introduction,

Growth, Maturity, and Decline. With the help of IoT, marketers can track their product and know

what stage the product is in to define their strategies and following step to make the product stable

or may eliminate it. But almost they will find way to improve, change and make it still the best

choice for customers (Decker & Stummer, 2017).

Business Model Development:

The IoT facilitates the application of Internet-based business models with physical

products. Product – as – a – service (PaaS) is on the verge of becoming a popular business

model. More and more businesses nowadays is do the same way. For example, Shopee, Lazada,

Tiki are formed from web – based and mobile applications.

On the other hand, “in – product purchases” is also new business model can have great

development. This model leans concept of “in – app purchases” by the combination of mobile

applications. Pokémon Go is one of examples, it free to download and if somebody want to buy

additional items, they must pay more money by transfer from bank account (Decker & Stummer,

2017).

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 Social media integration:

The combination of IoT devices and social media allows marketers to take advantages by

easily identify the emerging trends. Additional, the development of new communities on social

media can be predicted by marketers, which help them to reach potential customers group that

they are unable to otherwise before. Social media bring a larger, convenience platform for

marketers to communicate with their customers and digital technology is still develop rapidly,

social media will have more opportunities to explore (Abashidze & Dabrowski, 2016).

Product as Media:

“Product thus becomes a media device that is able to market itself digitally”

With the IoT, products become smarter every day, so it can market themselves because

they already have unique selling point. Connected product can be used for sale, for example,

Amazon – Tide loyalty program. When your washing machine is run out of washing power, the

thing you need to do is to press the button then Tide detergent will delivery for you. It also help

customers save time, instead of thinking what brand they should buy, they just need 1 second to

press the button (Allen, 2016).

Fig 19: “Amazon – Tide”, 2016

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 c. Advantages/ Disadvantages

ADVANTAGES DISADVANTAGES
- Depending on Internet connection - No Internet, devices cannot work offline

- Increasing productivity and save time - If not research carefully before apply, it may

for businesses lead to fail and waste of money

- Better quality of life - Technology take control of life: the younger

generation is already addicted to

technology.
- Optimum utilization of energy and - Complexity: Including complex system and

resources can help businesses to save must have experienced in sensors

money technology, microchip, etc.

- Helping businesses collect enormous - Compatibility: Difference devices from

data which support to develop products difference brand cannot exchange data,

which meet the consumer’s demand. communication and work well together

(they must be set up with the same

language).
- Easy to track and monitor, control - Loss of privacy and security: devices all are

quality connected to the Internet, a lot of

information is available on it which can be

hacked.

(Sarmah, 2017)

35
 d. Prediction for future

The Internet of Things is still in early stages of adoption, but it already has a wide variety of

uses. By now, IoT is more and more popularly applied in many countries, especially developed

countries. By 2025, it estimated the potential economic impact of IoT will reach $2.7 trillion to

$6.2 trillion per year and health care & manufacturing will be the 2 industries most affected. For

health care industry, remote monitoring could reduce this cost by 10 to 20 percent for hospital. Not

only that, IoT can push productivity up to 2 – 2.5 percent in manufacturing process, it would leads

to potential economic impact of $900 billion to $2.3 trillion per year by 2025 (Manyika, 2013).

Fig 20: “The future of IoT of social media”, 2018

On another aspects, social media will be the most efficient tool for marketer to

communicate with consumers. In the Social Internet of Things (SIoT) era, marketing insight data

are analyzed in an optimized way. Hence, SIoT interconnected devices will offer businesses a

suitable way for collect insight data from target customers. It leads CMO (Chief Marketing Officer)

36
can make the right marketing strategy (Waddington & Smith, 2015).

Fig 21: “Life in the future of Consumer IoT”, 2018

On the other hand, 5G is predicted to arrive in some countries early next year, it can expect

faster speeds, improved response time, and the bandwidth needed for billions of IoT devices to

communicate with each other. It bring more opportunities for consumers have best experience of

CIoT devices. When they happy with it, they will become loyal and changing the lifestyle follow the

trend of technology (Chen et al. 2015). The benefits IoT bring to human life is enormous however

it still have a lot of potential which has not been discovered.

37
CONCLUTION

To sum up, we can denied the technological innovation is play a crucial role in society and

business in the modern life. Cloud Technology and Internet of Things are 2 disruptive technology

which estimated bring the most potential impact for the global economic, transfer human life as

well as businesses’ model. Both of them are established base on Internet platform and digital

technologies. Cloud replace traditional storage devices such as hardware, servers, bring more

convenience for people to access to data everywhere, anytime, also help businesses reduce cost,

avoid IT problems, help individuals do the work related to data easier and have space to store

their personal document as well as entertainment. For marketing aspect, Cloud provide

opportunities for marketers communicate with customers easily, retain loyal customers by apply

Cloud, analyze their customer’s insight deeper and find new potential customers segments in the

future. However, it still have 2 biggest drawbacks are security & privacy and bandwidth cap.

Scientists and IT people are trying every day to improve Cloud to avoid these disadvantages.

Internet of Things (IoT) is the integrated of Cloud and enable – Internet devices, without human

interaction, devices can communicate, share data to each other’s through Gateway to Cloud.

Thanks to that, human’ work can reduce, give business ability to monitoring and managing

everything easier as well as in in emergency situations, it help to handle timely, reduce as much

38
as possible damage of assets and human. Last but not least, both of these technology is predicted

to continue develop and bring huge unexpected benefits for the global in the future.

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