Integrated Marketing Communication Advertising and Promotion in A Digital World

Integrated Marketing
Communication
Now in its second edition, this textbook explores the continuing

transformation of advertising, sales promotion, and public relations
functions within the marketing discipline. The content focuses on emerging
new technologies, as well as established digital and legacy media, as the
reader is guided through the process of developing and implementing a
comprehensive Integrated Marketing Communication plan for companies,
organizations, and brands.
Clear, concise, and practical, the book takes the reader through
consumer, market, and competitive research; creative conceptualization;
market segmentation, identification of a target audience, and brand
positioning; as well as strategic decisions involving the timing, placement,
and intensity of advertising, sales promotion, public relations, and brand
visibility. The new edition emphasizes the importance of social media,
website development, search engine optimization, mobile marketing,
brand promotion events, and retail store connectivity. Updated to include
more digital content with detailed international examples, this new edition
adds four new chapters including Integrated Marketing Communication
objectives, budgets, and metrics, legacy media planning, business-to-
business marketing strategies, and innovative technologies with topics
such as artificial intelligence, predictive analytics, synthetic media, virtual
reality, and voice marketing.
Upper-level undergraduate and postgraduate students will appreciate
this lucid, up-to-date text, as will business professionals in executive
education and certificate programs. Experiential learning is provided with
chapter assignments and a continuity case study woven into the textbook.
The second edition is also accompanied by robust online resources, including
PowerPoint slides, chapter videos, lecture notes, classroom exercises, digital
flash cards, test banks, an instructor resource book, and interactive templates
for preparing an Integrated Marketing Communication Plan.
Jerome M. Juska is an Adjunct Professor at Seminole State University.

Dr. Juska has taught advertising management at the University of Illinois,
Northwestern University, and Franklin College in Lugano, Switzerland. He is
also a consultant for agencies, media, and advertisers.
Integrated
Marketing
Communication
Advertising and Promotion
in a Digital World
Second Edition
Jerome M. Juska
Cover image: © Getty Images
Second edition published 2022

by Routledge
605 Third Avenue, New York, NY 10158
and by Routledge
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Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2022 Taylor & Francis
The right of Jerome M. Juska to be identified as author of this work has been
asserted in accordance with sections 77 and 78 of the Copyright, Designs and
Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or

utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark notice: Product or corporate names may be trademarks or

registered trademarks, and are used only for identification and explanation
without intent to infringe.
First edition published by Routledge 2018
Library of Congress Cataloging-in-Publication Data

Names: Juska, Jerome M., author.
Title: Integrated marketing communication : advertising and promotion in a
digital world / Jerome M. Juska.
Description: Second Edition. | New York, NY : Routledge, 2022. | Revised
edition of the author’s Integrated marketing communication, 2017. |
Includes bibliographical references and index.
Identifiers: LCCN 2021028814 (print) | LCCN 2021028815 (ebook) | ISBN
9780367443368 (hardback) | ISBN 9780367436230 (paperback) | ISBN
9780367443382 (ebook)
Subjects: LCSH: Internet advertising. | Internet marketing.
Classification: LCC HF6146.I58 J87 2022 (print) | LCC HF6146.I58 (ebook)
| DDC 658.8/72--dc23
LC record available at https://lccn.loc.gov/2021028814
LC ebook record available at https://lccn.loc.gov/2021028815
ISBN: 978-0-367-44336-8 (hbk)

ISBN: 978-0-367-43623-0 (pbk)
ISBN: 978-0-367-44338-2 (ebk)
DOI: 10.4324/9780367443382
Typeset in Sabon-Roman
by Deanta Global Publishing Services, Chennai, India
Access the Support Material: www.routledge.com/ 9780367436230

Contents
Dedicationxxi
Authorxxiii
Forewordxxv
Prefacexxix
1 Artificial Intelligence: Another Digital Transformation for

the Future of Marketing 1
2 Integrated Marketing Communication: Pathways for Brand
Messages and Content 31
3 Marketing Research Methods: Collecting and Analyzing
Input for Decision-Making 61
4 IMC Objectives and Budgets: Funding Methods and
Allocating Financial Resources 81
5 Segmentation Strategies: Prioritizing Target Groups for
Effective Brand Communication 99
6 Creativity Strategies and Advertising: The Storytelling
Process, People, and Procedures 119
7 Digital Media Strategies: Owned and Shared Pathways
for Delivering Brand Content 153
8 Legacy Media Strategies: Paid Pathways for National and
Local Advertising Campaigns 183
9 Sales Promotion Strategies: Motivating Shoppers to React
and Respond to Special Offers 219
10 Public Relations Strategies: Earned Media Coverage and
Building Lasting Relationships 241

v
Contents
11 Brand Visibility Strategies: Displaying a Physical Presence

and Using Personal Contact 259
12 B2B Communication Strategies: Retaining Customers and
Discovering New Buyers 271
Further Reading 285

Index295
vi
Detailed Contents
Dedicationxxi
Authorxxiii
Forewordxxv
Prefacexxix
1 Artificial Intelligence: Another Digital Transformation

for the Future of Marketing 1
Learning Objectives 1
Introduction1
What Is Artificial Intelligence? 2
Definition of Artificial Intelligence 2
Threats to Privacy 3
Human and Machine Communication 4
Data-Driven Marketing 4
Marketing Technology’s Digital Landscape 5
Facial Recognition 6
Definition of Facial Recognition 6
Surveillance Environments 8
Public Places 8
Homes and Apartments 9
Offices and Warehouses 10
Retail Stores 10
Transportation 11
Social Media 11
Companies Using Facial Recognition 12
Disney Theme Parks 12
McDonald’s 13
Walmart 13
Chevron 13
MAC Cosmetics 13
MasterCard 14
Privacy Rights and Laws 14
Biometric Privacy Act 14
Consumer Concerns 15

vii
Detailed Contents
Interactive Voice Commerce 15

Voice Assistants and Smart Speakers 16
Definition of Voice Commerce 16
What Is an API? 16
Seamless Voice Purchasing 17
Synthetic Media 18
Definition of Synthetic Media 18
Digital Avatars 19
Text-to-Speech Video Technology 20
Virtual Backgrounds 20
Music Tracks 20
Applications for Integrated Marketing Communications 20
Dangers of Deep Fakes 21
Three-Dimensional Social Media 21
Artificial Reality 22
Virtual Reality 22
Oculus Headset Equipment 22
Facebook Horizon 23
Personal Identity Chips 24
Orwellian Images 24
Radio-Frequency Identification (RFID) Technology 25
Starlink: The Alternative Internet 25
Who Owns the Internet? 25
Elon Musk and Starlink 26
Private Internet Systems 27
Summary28
Discussion Questions 29
Chapter Assignments 29
2 Integrated Marketing Communication: Pathways for

Brand Messages and Content 31
Introduction31
Definition of IMC 32
Communication Pathways 33
Advertising33
Sales Promotion 34
Public Relations 35
Brand Visibility 35
Digital Platforms 37
Personal Contact 37
Message Consistency 37
IMC Industry Structure 38
viii
Detailed Contents
Advertisers39
Consumer Advertising 39
B2B Advertising 40
Agricultural Advertising 40
Government Advertising 40
Non-Profit Advertising 41
Advocacy Advertising 41
Agencies41
Types of Agency 41
Methods of Compensation 43
Employment Positions and Functions 44
Selection Procedures for a New Agency 44
Media44
Suppliers45
Research Firms 45
Production Companies 46
Independent Consultants 46
Technological Support 46
The Customer’s Journey 46
AIDA Model 47
Sales Funnel 48
Top of the Funnel 48
Middle of the Funnel 49
Bottom of the Funnel 49
Attribution Model 50
The IMC Planning Process 51
Purpose of the Plan 51
Responsibility for Development 52
Procedures for Approval 53
Structure of the IMC Plan 53
Executive Summary 54
Marketing Research 55
Segmentation Strategies 55
Target Audience 55
Communication Objectives 56
Budget Allocations 56
Creative Message Strategies 57
Media Delivery Strategies 57
Performance Metrics 57
Summary58
Continuity Case Study 59
IMC Plan Development 60
ix
Detailed Contents
3 Marketing Research Methods: Collecting and

Analyzing Input for Decision-Making 61
Introduction61
Why Research Is Needed 62
Types of Research 62
Quantitative Research 62
Qualitative Research 63
Marketing Research Categories 63
Industry Research 64
Product Research 64
Communication Research 64
Consumer Research 65
Secondary Marketing Research 65
Internet Search 66
Syndicated Reports 67
Industry Associations 67
Business Media 67
Government Documents 68
Academic Journals 69
Consulting Companies 69
Library Databases 69
Primary Research 70
Zoom Online Sessions 71
Traditional Focus Groups 71
Social Media Listening 73
Brand Website Analysis 73
Digital Research Surveys 73
Personal Interviews 74
Behavioral Observations 75
Role-Playing Exercises 75
Projective Techniques 75
Summary77
Assignments78
4 IMC Objectives and Budgets: Funding Methods and

Allocating Financial Resources 81
Introduction81
Funding Sequence for IMC 82
Estimating Costs 82
Marketing Approvals 82
x
Detailed Contents
Budget Calculation Methods 84

Historic Patterns 84
Annual Increases 85
Industry Ratios 85
Percentage of Sales 86
Fixed Amount per Unit 86
Market Share Strategies 87
Share of Voice 87
IMC Objectives 87
Share of Media Expenditures 88
Media Models 88
Competitive Plus 88
Break-Even Points 89
New Brand Entries 89
Predictive Algorithms 89
Writing IMC Objectives 89
Requirements for Objectives 90
Budget Allocation Strategies 91
Allocation by IMC Category 91
Allocations by Product Life Cycle 92
Allocation by Time Periods 93
Allocation by Geographic Potential 94
Flexible Budget Adjustments 94
Competitive Activity 95
New Brand Introductions 95
Media Cost Increases 95
Unexpected Opportunities 95
Fiscal Year-End Reductions 95
Summary96
5 Segmentation Strategies: Prioritizing Target Groups

for Effective Brand Communication 99
Introduction99
Importance of Segmentation 100
Size of the Population 100
Advertising Media Prices 100
Relevance of Creative Content 101
Financial Affordability of Products and Services 101
Positioning of Competitive Brands 101
Maximizing Return on Investment (ROI) 101
xi
Detailed Contents
Consumer Segmentation Categories 102

Demographic Segmentation 102
Age 103
Gender 103
Income 103
Marital Status 104
Family Size 104
Ethnic Heritage 104
Race 104
Religion 104
Sexual Identification 105
Choice of Residence 105
Physical Attributes 105
Health Status 105
Geographic Segmentation 105
Traditional Definitions 106
Zip Codes 106
Core Based Statistical Areas (CBSAs) 106
Designated Market Areas (DMAs) 106
Company Sales Regions 107
Psychographic Segmentation 107
Personality 107
Life Style 108
Values 108
Attitudes 108
Activities 108
Behavioral Segmentation 109
Buyer Status 109
First Time Buyers 109
Brand Switchers 110
Brand Loyal 110
Purchase Rate 110
Developing Audience Profiles 111
Existing Customers 112
Competitive Brands 112
Media Composition 113
Prioritizing Target Audiences 113
Primary Target Audience 113
Secondary Target Profile 114
Focused Target Segment 114
Summary115
xii
Detailed Contents
6 Creativity Strategies and Advertising: The Storytelling

Process, People, and Procedures 119
Introduction119
What Is Creativity? 120
Definition of Creativity 120
Cognitive Structuralism 120
Physiology of Your Brain 121
Cognitive Spheres 122
Measuring Creativity 122
Personality Characteristics 123
Developing Creative Ideas 125
Brainstorming126
Morphing and Visualizing 127
Creative Planning at Agencies 127
Creative Teams 128
Brand Briefs 129
Buyer Personas 130
Storytelling Frameworks 131
Animation133
Announcer134
Aspirational134
Before/After134
Blended134
Celebrities135
Comparison136
Demonstration136
Dramatization137
Emotional137
Entertainment138
Episodes138
Fantasy139
Fear139
Historical139
Humor140
Inspirational140
Life style 141
Mystery141
Negative141
Problem/Solution142
Real people 142
Romantic142
Sexual energy 142
Shock value 142
Slice-of-life143
xiii
Detailed Contents
Teaser143
Technical143
Testimonial144
User-Generated144
Format for Creative Proposal 144
Copy and Layout 145
Audio Scripts 146
Wireframes147
Evaluating Creative Presentations 148
Agency Perspective 148
Advertiser’s Reaction 148
Summary149
7 Digital Media Strategies: Owned and Shared

Pathways for Delivering Brand Content 153
Introduction153
Digital Media Pathways 154
Paid, Owned, and Shared Media 155
Consumer-Generated Content 156
Understanding the Media Spectrum 156
Web-Centric Marketing 156
Omnichannel Media 157
Television Delivery Systems 158
Mobile Apps 158
Advertising Costs in Digital Media 159
Audience/Price Relationship Model 159
Cost-Per-Thousand160
Impressions162
Brand Websites 163
Landing Page 163
Home Page 164
Visual Design 165
Interior Pages 165
Navigation165
Dashboard Metrics 166
Retargeting166
Social Media Platforms 168
Advertising on Social Media 169
Budgets169
Audience Selection 171
xiv
Detailed Contents
Time Scheduling 172

Messages173
Measurements173
Email Marketing 174
List Building 175
Subject Headlines 176
Open-Rate Analysis 176
Conversion Rate 177
Streaming Video 177
Summary179
8 Legacy Media Strategies: Paid Pathways for

National and Local Advertising Campaigns 183
Introduction183
Legacy Media Categories 184
Media Terminology 185
Reach185
Frequency187
Duplication188
Impressions188
Rating Points 190
Gross Rating Points 191
Target Rating Points 192
Characteristics of Legacy Media 193
Determining Media Objectives 194
Purchasing Legacy Advertising 195
Magazines195
Editorial Content 196
Circulation 197
Size of Advertisements 198
Comparison of CPMs 198
Newspapers201
Size of Advertisements 201
Categories of Newspapers 201
Newspaper Formats 202
Newspaper Rates 203
Television206
Availabilities 206
The Pricing Grid 207
xv
Detailed Contents
Radio209
Station Formats 209
Dayparts 209
Average Quarter Hour (AQH) 209
Cumes 210
Total Audience Plans (TAP) 211
Outdoor/Transit Advertising 212
Outdoor Bulletins 213
Showings 213
Transit Advertising 214
Preparing Media Spreadsheets 215
Summary216
9 Sales Promotion Strategies: Motivating Shoppers

to React and Respond to Special Offers 219
Introduction219
What Is Sales Promotion? 220
Definition of a Promotion 220
Media Advertising Support 220
Push and Pull Strategies 221
Promotional Objectives 221
Target Audience 222
Time Frames 222
Expenses and Budgets 223
Ethical and Legal Issues 223
Performance Measurements 223
Sales Promotion Strategies 224
Incentive Categories 224
Price Reduction Strategies 225
Retail Deal Offers 225
Psychological Rewards 225
Targeted Interactions 225
Price Reduction Strategies 225
Paper Coupons 226
Free-Standing Inserts (FSIs) 226
Post Office Mail 226
Single Sheet Flyers 227
Digital Coupons 227
Buy-One, Get-One (BOGO) 229
xvi
Detailed Contents
Cash Back 229

Rebates 229
Value Invitations 230
Deal Discovery 230
Extra Content 230
On-Pack Bonus 230
Free Trial Usage 230
Gift Merchandise 231
Self-Liquidating Premiums 231
Psychological Rewards 231
Loyalty Programs 231
Exclusive Experiences 232
Membership Clubs 233
Special Recognition 233
Limited Editions 233
Targeted Interactions 233
Brand Sampling 233
Free Software Downloads 235
Games and Puzzles 235
Sweepstakes and Contests 235
Product Demonstrations 236
Summary237
10 Public Relations Strategies: Earned Media Coverage

and Building Lasting Relationships 241
Introduction241
Value of Public Relations 242
Definition of Public Relations 242
Earned Media Benefits 243
Public Relations Agencies 243
Building Stakeholder Relationships 243
Customers244
Media Sources 244
Industry Members 244
Professional Associations 245
Suppliers245
Employees245
Community245
Government246
xvii
Detailed Contents
Functions of Public Relations 246

News Releases 247
Press Conferences 247
Company Spokesperson 248
Crisis Management 249
Speechwriting249
Content Development 250
Company Website 251
Community Activities 251
Sponsored Events 252
Internal Communications 252
Corporate Advertising 253
Public Relations and IMC Strategies 253
Brand Announcements 254
New Product Introductions 254
Industry Trade Show Activities 255
Product Recalls 255
Publicity for Promotions 255
Sponsored Events 255
Summary256
11 Brand Visibility Strategies: Displaying a Physical

Presence and Using Personal Contact 259
Introduction259
Definition of Brand Visibility 260
Brand Visibility Categories 260
Product Placement 260
Venue Identification 262
Brand Packaging 263
Event Sponsorship 264
Featured Prizes 265
Licensing Rights 266
Logo Merchandise 267
Retail Displays 267
Summary268
xviii
Detailed Contents
12 B2B Communication Strategies: Retaining Customers

and Discovering New Buyers 271
Introduction271
B2B Marketing Categories 272
Inbound Marketing 272
Complimentary Consulting 273
Industry Reports 273
Trending Topics 273
Free Webinars 274
Video Tutorials 274
Data Infograms 274
Vertical Media 275
Horizontal Media 275
Industry Trade Shows 276
Virtual Display Exhibits 277
Co-op Advertising 278
Merchandising Support 278
B2B Incentive Strategies 279
Financial Incentives 279
Volume Discounts 279
Price Concessions 280
Free Extra Quantity 280
Buy-Back Arrangements 280
Discontinued Model Allowances 280
Sales Award Competition 281
Performance Bonuses 281
Special Accommodations 281
Psychological Incentives 281
International Considerations 282
Summary283
Further Reading 285

Index295
xix
Dedication
When my entire life has revolved around advertising and marketing communication,
it is very difficult to thank everyone who has helped and supported me during
my professional and academic career. My long list would include so many
professors and administrators along with corporate managers and executives. And,
there is a multitude of long-time friends, family members, neighbors, and casual
acquaintances. So many people were important and valued!
Let me begin with the primary reasons for writing this textbook. At the top of my list
are my parents, Tony and Felicia Juska, who always provided me with inspiration,
guidance, and tremendous support. It was my mother’s creative spirit, enthusiasm,
and compassion plus my father’s determination, persistence, and motivation that
forged my perspective and personality.
Northwestern University enabled me to discover the world of advertising. I was

inspired by legendary professors, including the father of modern marketing, Dr.
Philip Kotler, as well as Dr. Steuart Henderson Britt and Dr. Vernon Fryburger,
Chairman of the Advertising Department.
And, to my Northwestern classmates, thank you for the memories and friendships
over the years.
My first note of appreciation is directed toward Alexandro Moneta, former Dean

of the MBA program at St. Xavier University in Milan, Italy. Alex encouraged me
to write a concise, easy-to-read, and practical textbook for international students
who wanted to learn more about the American style of advertising and sales
promotion. His insistence propelled me into the challenging task of preparing my
first manuscript and constructing details for every chapter.
My next thank you is given to Dr. Greg Marshall, the distinguished marketing
professor and former editor of the Journal of Marketing. As an experienced and
successful textbook author, Greg gave me insights on the publishing process and
challenges involved with preparing a manuscript. Knowing what to expect next
was an important part of completing the project.
Another expression of gratitude is reserved for Dr. Deborah Goldring, a professor

of marketing at Stetson University. She has been an academic colleague, associate in
the American Marketing Association, private advisor, and personal friend for many
years in Central Florida. Deborah has always unselfishly connected me to the right
people at the right time at multiple universities.

xxi
I also want to thank Dr. Tulay Girard, a talented marketing professor at Penn State
University. Tulay and I have continually shared academic thoughts and theories of
advertising, social media, and marketing communication since our days together at
Nova Southeastern University. Over many years, we have built a lasting friendship
together, along with her husband, Bill.
I also have deep respect and admiration for Professor Yasuhiko Kobayashi at Aoyama
Gakuin University in Tokyo, Japan. During the years, I enjoyed many visits and
experiences, especially involving Dentsu, the largest advertising agency in Japan, and
Nihon Keizai Shimbun, publisher of the Japan Economic Journal. I also have many
friends at academic institutions in Europe, including: Franklin University in Lugano,
Switzerland, the American University in Paris, Passau University in Germany, Bocconi
University in Milan, and Jyvaskyla University in Finland.
There are also thanks and gratitude for the wisdom of many other people, such as
Joe Cappo, retired editor of Advertising Age, and Dan O’Brien, former Director of
Advertising at Accenture.
Plus, great friends from San Francisco to New York and from Chicago to Miami,
including Jack Minkow, Dor Novak, Ron Krisik, Brent Kubasta, Rafael Martinez-
Pratts, Dr. Julia Maskivker, Dr. Kent Williams, and Dr. Arnold Harrison, who have
helped me in so many different ways over the years by reminding me to count my
blessings and good fortune.
And finally, I want to acknowledge the love and affection of my wonderful wife,
Adriana Schiavon. During all the long hours of writing a textbook and computer-
filled weekends of writing, she was always patient and understanding. The challenge
of completing this textbook was met during the dark specter of the pandemic,
which interrupted our lives and made everything more difficult, especially while
teaching several courses online during the process. Without Adriana, I am not sure
if I could have endured the barriers and limited resources.
My final dedication is to everyone who will be reading this textbook. I may never
meet you, know your name, or contact you, but my desire is to inspire you by
sharing this information and learning experience. Please use it, apply it, and grow
with knowledge and exciting new insights!
Author
Dr. Jerome M. Juska is an author, entrepreneur, business executive, international

marketing consultant, and academic professor. His diversified career began after
graduating from Northwestern University with a Bachelor’s degree in marketing
and a Master’s degree in advertising management. Juska’s business career included
executive advertising positions at several global corporations, such as the Jeep
Corporation in Detroit and International Harvester in Chicago. As the Global
Advertising Manager for the Truck Division of International Harvester, he super-
vised a staff of six and a budget of $17 million dollars. During this time, he earned
two CLIO awards for creative advertising excellence. He was frequently asked
to be a speaker at conferences and workshops as an active member of multiple
advertising and marketing associations. After being the Advertising Manager at
U.S. Telephone in Dallas, Juska returned to Northwestern University to earn his
doctorate degree in communication.
Dr. Juska’s academic career included teaching at Northwestern University,
Evanston, Illinois; St. Xavier University, Kolkata, India; University of Illinois at
Urbana-Champaign, Illinois; Florida Atlantic University, Boca Raton, Florida;
Nova Southeastern University, Broward County, Florida; Seminole State
University, Sanford, Florida; and Rollins College, Orlando, Florida. He also
spent three years at Franklin College in Lugano, Switzerland as the Chair of the
International Management Division. He has taught undergraduate and graduate
courses in advertising, sales promotion, consumer research, public relations, inter-
national business, creative planning, digital media, and brand marketing. He was
also invited to be part of the Advisory Board for the International Advertising
Association, Chicago, as well as a creative judge for a competition sponsored by
Advertising Age magazine.
In 2017, the first edition of Integrated Marketing Communication was pub-
lished. The textbook was developed using a concise, easy-to-read format for MBA
students and executives as well as international students who wanted to learn the
basics of advertising and sales promotion. Dr. Juska introduced a new framework
with his second edition, which emphasized the importance of applying artificial
intelligence for creating and delivering brand messages. His commitment to new
technologies and advanced methods of communication has been internationally
recognized.

xxiii
Foreword
In Chapter 1, the textbook begins with a glimpse of the future. The author has
taken the position that artificial intelligence and machine/human interactions will
precipitate another transformation of the marketing communication industry.
The introduction of digital media and mobile apps was only the beginning of
a new landscape for delivering brand messages and building relationships with
consumers. New technologies, such as facial recognition and seamless voice com-
merce, have the potential to reach and respond to potential buyers in remarkably
innovative ways.
While there are many concerns about privacy and surveillance, technology is
moving faster than our ability to adapt to it. The increased use of synthetic media
and computer-created avatars, along with the brave new world of artificial reality
with social media, is offering new communication opportunities for advertisers.
The most amazing vision of the future is exemplified by entrepreneurs like Elon
Musk, who is disrupting the communication industry by launching thousands of
Earth-orbiting satellites with SpaceX to create a private Internet system.
In Chapter 2, the concept of Integrated Marketing Communication (IMC) is
introduced and discussed. This provides the framework for delivering brand con-
tent and persuasive messages through six functional pathways: advertising, sales
promotion, public relations, brand visibility, digital media platforms, and personal
contact. The structure of the IMC industry is outlined, based on the collabora-
tion among four separate groups: advertisers, agencies, media, and suppliers. The
chapter continues with the review of three models that illustrate the marketing
approach to a customer’s journey: the classical AIDA model, the digitally oriented
funnel model, and the complex attribution model. This leads into the preparation
of an IMC Plan, which is the blueprint for combining all the elements required for
strategic brand communication.
In Chapter 3, the foundation of the Integrated Marketing Communication plan
is built using the information and insights gathered from marketing research. This
includes both primary and secondary research. Four marketing research catego-
ries are reviewed: industry, product, communication, and consumer research. The
importance of quantitative and qualitative research is emphasized, as well as the
need for competitive information. Understanding the mind and mood of existing
customers and potential buyers is essential for making creative advertising and
effective media decisions. The focus is on the consumer’s needs and wants, not
just a product.
In Chapter 4, the importance of communication objectives is discussed with a
direct connection to performance measurements. However, this is preceded by the

xxv
Foreword
generation of budgets and calculating the amounts of financial resources needed.

The multiple methods of funding and estimating advertising costs and other IMC
expenses are explained. After a budget is determined, then the allocation pro-
cess begins, with different amounts of money based on IMC pathway categories,
product life cycle, calendar time periods, target audiences, and geographic sales
potential. Anticipating budget changes and flexible adjustments is also part of
budgeting activities.
In Chapter 5, segmentation, targeting, and brand positioning are the primary
topics. Four traditional segmentation categories are introduced: demographic,
psychographic, geographic, and behavioral. Segmentation must be extremely spe-
cific when identifying existing customers and approaching potential new buyers.
Since the cost of advertising is directly proportionate to the number of people
exposed to a medium, the essential need for specific targeting and consumer per-
sonas becomes more apparent. The chapter ends with the differentiation of pri-
mary and secondary target audiences as an effective method of utilizing limited
financial resources.
In Chapter 6, the process of creativity and the application of creative think-
ing for advertising are revealed. The chapter defines creativity and identifies the
personality characteristics that are most responsible for stimulating original and
innovative thinking. The physiology of the brain is used to demonstrate the devel-
opment of emotional and rational brand message strategies. Multiple storytelling
frameworks are introduced with a long list of creative tactical applications.
The organization of a creative department at a large agency is described, along
with the planning tools used to create advertisements. These include the presen-
tation formats for both legacy and digital media along with the development of
creative concepts based on a compression of the most essential marketing research
information contained in a brand brief for the agency team.
In Chapter 7, the connection between creative brand messages and media deliv-
ery platforms begins to unfold. An introduction is made using a comparison of
digital and legacy media. The difference between paid, owned, and shared media
is also explained with connections to other platforms. A web-centric approach is
presented, based on driving traffic to a landing page or brand website. This rein-
forces the purchase funnel model adopted by digital media marketing agencies
as well as supporting the attribution model for marketing performance measure-
ments. Website design and navigation is discussed, along with simple dashboard
metrics. The balance of the chapter focuses on other important forms of digi-
tal media, such as email marketing and the basic requirements to open business
accounts and effectively advertise on social media platforms.
In Chapter 8, the complexity of legacy media is discussed with a review of
basic terminology, including reach, frequency, duplication, rating points, and
gross points. The importance of establishing media objectives for evaluating the
effectiveness of the advertising is emphasized.
This reverts to the application of the AIDA (awareness, interest, desire, action)
model for legacy advertising and includes the full spectrum of Integrated Marketing
Communication. The chapter continues with a detailed outline of the require-
ments for advertising in television, radio, newspapers, magazines, outdoors, and
transit media. This information can be summarized in a media spreadsheet with
the planned financial expenditures, advertising units, consumer impressions, and
media placement calendar.
xxvi
Foreword
In Chapter 9, the concept of sales promotion is defined along with the impor-
tance of formulating specific promotional objectives. Multiple sales promotion
strategies are reviewed and organized according to four categories: price reduc-
tion, value invitation, psychological rewards, and targeted interactions. The uti-
lization of both paper and digital coupons is emphasized, along with the most
popular forms of promotions, such as buy-one get-one (BOGO), cash back, free
trial, gift merchandise, brand sampling, games and puzzles, contests, and sweep-
stakes. The importance of measurement is also discussed and related to specific
objectives for each individual sales promotion program.
In Chapter 10, the value of public relations is presented within the framework
of stakeholder relationships. Since publicity is considered to be a form of earned
media, the basic method of calculating its financial value is demonstrated. The
chapter continues with a review of the functions of a public relations department,
or agency, followed by recommendations for how these activities can support a
marketing communication plan. This includes mutual collaboration for new prod-
uct introductions, trade shows, and brand-sponsored activities and events.
In Chapter 11, brand visibility is defined with a list categories, including prod-
uct placement, venue identification, brand packaging, licensing rights, retail dis-
plays, and logo merchandise. Brand visibility is considered to be different from
sales promotion since it involves a longer time frame, greater permanence, and a
more substantial impact on consumer awareness of a brand. The financial value
of brand visibility can be calculated based on a media exposure model or by esti-
mating its contribution to image and desirability. Brand visibility extends into
retail store locations and selling environments through packaging, signage, and
portable aisle displays.
In Chapter 12, business-to-business (B2B) marketing communication strategies
are introduced. The emphasis is placed on inbound marketing as the most cost-
effective method but also as part of a balanced approach that includes vertical and
horizontal media. Trade shows have traditionally been the most important way
to interact with thousands of potential buyers in a single location during a three
or four-day period. But, digital technology has been introduced for virtual online
trade shows. This not only saves time and money but enables a greater amount of
connectivity among buyers and sellers. B2B activities revolve around the channel
of distribution, or marketing intermediaries, such as wholesalers, retailers, deal-
ers, distributors, and brokers. Marketing and merchandising support is offered
through a diverse assortment of financial and psychological incentives, including
volume discounts, price concessions, co-op advertising, and product information
training for sales people.
xxvii
Preface
Technology is changing the world faster than our ability to adjust. The impact
on marketing communication industry during the past 20 years was nothing less
than a seismic shift in the way that brand messages had been created, delivered,
and measured. And now, artificial reality is rapidly emerging as it promises to
launch another wave of digital transformations.
That is why the first chapter of this textbook begins which a brief perspective of
the future, including such topics as facial recognition, seamless voice marketing,
synthetic media, predictive analytics, and competitive Internet systems developed
from Spacex satellites and the vision of Elon Musk. While everything is becoming
more sophisticated and complex, there is no doubt about the growing importance
of artificial intelligence and human-to-machine interactions.
The dynamics of the marketplace has already adjusted. Everyone is simulta-
neously competing for customers and opportunities. Enormous amounts of data
and information are collected, analyzed, and utilized in a real-time marketing
environment. So, it is essential for MBA students, corporate managers, and entre-
preneurs to have a basic and practical understanding of Integrated Marketing
Communication. This includes knowledge of legacy media as well as digital
media, along with the process for researching, planning, and implementing brand
content and advertising messages.
Where do we go from here? That’s the next challenge that we need to prepare
for today.
— a voice from the future.

xxix
Chapter 1
Artificial Intelligence
Another Digital Transformation
for the Future of Marketing
Learning Objectives
1. Understand the significance of artificial intelligence for marketing
communication
2. Explore the emerging new technologies for advertising, promotion, and
public relations
3. Imagine the possibilities of voice-only product purchasing and synthetic
media
4. Investigate the potential of facial recognition and virtual reality for social
media
5. Consider the impact of multiple Internet systems and global brand
channels
Introduction
While the future is always filled with new innovations, artificial intelligence is
promising to accelerate that trend and to inject even more disruptive business
models and digital media transformations. So, what is the emerging technological
environment for Integrated Marketing Communication? And, how will it influ-
ence the way brands and companies interact with existing customers and potential
buyers? This chapter begins with a discussion of artificial intelligence and then
moves into an exploration of the most important new technologies shaping the
future.
DOI: 10.4324/9780367443382-1
1
In this chapter, we will briefly explore several of the most influential emerging
technologies. Most of these technologies are still evolving with plenty of obstacles,
problems, and challenges. Some might fail. And no doubt, many more will be
added. New approaches, innovations, and companies will appear with amazing
successes and disastrous collapses. But that isn’t so important. The critical chal-
lenge for corporations, small business owners, and entrepreneurs is to learn how
to incorporate these technologies into advertising, promotion, public relations,
and brand communication. It might be a lot to ask, but why not? There are only
three ways to get ready for the future: avoid it, create it, or quickly adapt to it. So,
let’s get started!
What Is Artificial Intelligence?

We are beginning this textbook by imagining the world of tomorrow. That is the
only way to really understand what could be happening next. By anticipating,
expecting, projecting, and wondering, managers and companies become more
prepared for change and even more ready to adapt when it arrives. If we maintain
a flexible, open-minded, and visionary perspective, then our world becomes less
frightening and more predictable. As we progress deeper into the 21st century, a
multitude of innovative technologies will emerge. They are already beginning to
happen. Some are disruptive, while others are just improvements over previous
systems. Still, technology influences our world, how we live, and especially, how
we communicate with others.
During the past 20 years, digital media have transformed everything.
Remember, only 10 years ago, there was no such thing as an iPhone or an Android
system. And, just look at what has happened since the appearance of that super
smartphone, which was really a computer, a phone, and the essential center of our
daily life in disguise. Now, we are at the beginning of a much more dramatic and
encompassing phenomenon: artificial intelligence. This word is relatively new in
our vocabulary with a meaning that is perceived differently by many people. To
some, it is about faster and more powerful computers, cloud storage capabilities,
and advanced software programs. But to others, artificial intelligence is when
machines can think and act like humans.
Definition of Artificial Intelligence

There are plenty of textbooks, lectures, videos, and white papers on artificial intel-
ligence, along with a long history of science fiction books, television programs,
and movies about the topic. The most relevant example is 2001: A Space Odyssey,
where the visionary director Stanley Kubrick introduced HAL. Without needing
to give a spoiler alert, HAL was a sophisticated computer that assisted the crew
of a space ship as it was making its initial journey to Mars. The HAL computer
performed a variety of operation functions and complex tasks, which included
the ability to think independently and make critical decisions for the astronauts.
Ironically, this first-class movie was made way back in 1968, but finally on August
6, 2012 for NASA (National Aeronautics and Space Administration) succeed in
2
Hardware
Software
Artificial
Intelligence Systems Functions Behavior Abilities Communication
Processes
Interfaces
Figure 1.1 Interacting with Artificial Intelligence
placing a remote-controlled vehicle the size of car, called Curiosity, on the surface
of Mars.
Elon Musk, the CEO of SpaceX, has an ambitious plan to get human to Mars
by 2026. The vehicle that will transport them to the Red Planet is the SpaceX
Starship, the largest rocket ever constructed at nearly 400 feet high or 120 meters
high, was put into orbital flight during 2021. Ultimately, Musk plans to schedule
multiple flights and even create a Mars Colony with its own rules, government,
and culture. But then, who can doubt the man who successfully created the Tesla
electric automobile?
So, what is artificial intelligence, and why is it important to marketing com-
munication? Let’s begin with an original, non-technical definition. Artificial intel-
ligence is “the interaction of computer hardware, software, systems, processes,
and interfaces that replicate human functions, behavior, abilities, and commu-
nication.” As shown in Figure 1.1, artificial intelligence has multiple connecting
points and interaction pathways with humans. As a result, artificial intelligence is
already performing many complex tasks and activities, such as facial recognition,
speech simulation, mood detection, physical mobility, and yes, even independent
decision-making.
Threats to Privacy
On a more philosophical level, artificial intelligence is also a threat. First, our
privacy is no longer as free and unrestricted as in previous years. Cameras are eve-
rywhere. They are located in stores, office buildings, street corners, parking lots,
restaurants, and even in our own homes. Plus, nearly everyone is walking, talking,
or looking into a small camera in their smartphone. Second, data about you, and
everyone else, is continually being collected, analyzed, stored, and in some cases,
illegally shared with others. And many times, this personal data is sold to third
parties without controls or restrictions. This includes the search results from our
computers, the products and services we purchase, the pets we own, the pho-
tos we share on social media, and probably even the things we did last summer.
And finally, intelligent machines in the form of autonomous robots are replacing
humans at an alarming rate. No one is exempt. Nothing is impossible. Machines
3
that think can quickly and efficiently complete physical work, solve the most com-
plex mathematical problems, design a building, and even predict our behavior.
The advantages and disadvantages of artificial intelligence will continue to be dis-
cussed with greater intensity and concern. Yet, humans created all the hardware,
software, systems, processes, and interfaces for artificial intelligence. Is it possible
that machines will eventually become inorganic duplicates of humans? It’s more
than just a science fiction story. It just might be a future reality.
Human and Machine Communication

The interaction between machines and humans involves a classical model of the
two-way flow of communication. It’s pretty simple. There is the sender and the
receiver. No need for a quiz on this topic. The sender, or receiver, can be a com-
puter, smartphone, digital appliance, virtual assistant, digital avatar, or physi-
cal robot. Surprisingly, every type of machine speaks the same type of language:
binary. It is amazingly simple but profoundly complex. It is the language that
every computer and electronic device knows and understands with the proper
programming and software instructions. There are only two numbers involved:
zero and one. What magic and power are bestowed on these numbers! But, we are
just learning how to become more fluent in the language of artificial intelligence.
Let’s take it one step further. What happens when the communication is a con-
tinuous flow involving nanoseconds? Or, how can data be processed when it is
being created faster than it can be absorbed? Let’s look at the process this way. The
machine–human interaction has four basic parts: questions, refinements, recommen-
dations, and commands. Ironically, the action can be initiated in any one of the four
parts. A single question can lead to a refinement or a command. A recommendation
can lead to a question, then a refinement, and finally, a command. Or, a concise com-
mand can be provided by a human at any time. For example, you ask Siri a question,
and you immediately get a specific answer. If you are not satisfied with the response,
the question is revised, and you proceed to ask Siri once again. Another example is a
command asking Alexa to play some jazz music, but Alexa might respond by offer-
ing specific information involving an the artist, style, or specific title.
Data-Driven Marketing
We are also experiencing an increase in data-driven marketing. This can be any-
thing from predictive analytics to programmatic media buying. The foundation
of this process is displayed in Figure 1.2. This is a simplification of the activity,
Acquisition Classification
Data
Distribution Interaction
Figure 1.2 Phases of Data-Driven Marketing
4
but it does provide a framework. These are the four pillars of data-driven mar-
keting: acquisition, classification, delegation, and interaction. The acquisition of
data is really a combination of the production or generation of data along with a
simultaneous ability to retain large volumes of data. The Apple iPhone, which was
introduced way back in 2007, was the initial force behind the accelerating curve
of data. The iPhone has continued to evolve and every year offers new features,
options, and models. The capability to share photos and videos contributed to
the data explosion. And, there was also the ability to share and distribute user-
generated video content on YouTube. The final ingredient was the growth of cloud
computing, especially Amazon Web Services (AWS), which has silently dominated
the market for storage of data with millions of interconnected servers and com-
plex data networks.
The other phases of data-driven marketing are most frequently associated with
the decision sciences, along with knowledge management, while marketing is
dependent on management information systems. That is where classification and
delegation originate, especially when there is any interaction between humans and
machines. Social media is the primary data-generating activity involved with con-
sumer communication, while brand marketing focuses on increasing website traffic.
In the next 10 years, our personal communication with artificial intelligence
will dramatically change. It will be faster and more complex but will gradually
blend into a more natural style. The millions of algorithms that digital scientists
and engineers will be creating will go much further, probably well beyond our
comprehension. Machines will sense, understand, and react to our moods, our
behavior, and even our thoughts. This concept should be no surprise to anyone
in the field of marketing communication, since we have all viewed many differ-
ent visions of the future from movies, films, television programs, digital media,
streaming content, and video games. Our journey to the future has begun; now
we just have to get there.
Marketing Technology’s Digital Landscape

There is an unprecedented number of new technologies restructuring the digital
marketing landscape. They have emerged from entrepreneurs, small businesses,
and large corporations. They could have been developed most anywhere in the
world. While you are aware of some, others will be completely new to you. It is
difficult to determine which will succeed or fail, or which will have the applica-
tions of greatest impact involving advertising, promotion, and public relations.
Figure lists 12 technologies that will provide you with a visual perspec-
tive of the future digital landscape for marketing and Integrated Marketing
Communications. The fascinating technologies that have been selected include
facial recognition, interactive voice commerce, synthetic media, social virtual
and artificial reality, holographic television, retail store beacons, personal iden-
tity chips, proximity marketing, programmatic media, and finally, the alternative
Internet.
This chapter will concentrate on the three most important applications of arti-
ficial intelligence for Integrated Marketing Communication: facial recognition,
voice commerce, and synthetic media. These technologies are expanding so rap-
idly that it is nearly impossible to keep up to date. So, what you are reading right
5
Data Synthetic Virtual Reality Facial

Visualization Media Platforms Recognition
Interactive
Proximity Programmatic
Store Beacons Voice
Marketing Media Buying
Commerce
Private
Personal Predictive Holographic
Internet
Identity Chips Analytics Television
Systems
Figure 1.3 Marketing Technology’s Future Landscape
now has already changed. And by the time you finish this textbook, there will be
another series of improvements, enhancements, and practical applications.
Facial Recognition
Have you ever watched Tom Cruise in the science fiction movie Minority Report?
There was a great scene when his character, walking through a large transporta-
tion center, was continually being confronted by video screens promoting differ-
ent consumer brands. The facial recognition system was not only identifying him
but using his first name in every simulated commercial. Not a good situation when
you are trying to hide from everyone who has been chasing you.
The most powerful, yet controversial, technology of the 21st century is now
facial recognition. However, many companies and organizations have already
developed and effectively utilized facial recognition software in their market prod-
ucts and services. While praised for its ability to provide safety and security, this
aspect of artificial intelligence has also been criticized for its intrusiveness. Often,
facial recognition is associated with discrimination or exclusion. This is a per-
plexing situation for management and marketing communication. Do consumers
have the right to privacy? And, is there an obligation to inform people that facial
recognition is being used for business purposes? That is a philosophical, ethical,
and cultural debate that is beyond the scope and purpose of this textbook. But, it
is a very serious and important issue for a global society.
Definition of Facial Recognition

Let’s start with a more complete definition of facial recognition: “a biometric
software application that identifies, verifies, classifies, compares, and stores digi-
tal data about a person’s facial features, contours, and individual characteris-
tics using complex algorithms.” If you have a recent model of an Apple iPhone
or Samsung, then you are experiencing facial recognition each and every day.
Recognizing and validating your identity is always required to physically activate
your mobile device. But, have you ever wondered how this technology works? Or
6
where facial recognition is being used for marketing and brand communication?
That is where our exploration of artificial intelligence will begin, but from the
perspective of the future and how it can affect us.
There are four basic steps in facial recognition: virtual measurements, appli-
cation of algorithms, database matching, and accuracy estimation. The physi-
cal characteristics of the human face can include many features, but the most
important physiological variables for measurements include the size, location, and
spatial distances between distinct human parts, such as the eyes, nose, and ears,
and basic head geometry. Individual differences in the overall structure, and even
particular idiosyncratic motions, such as head movements, mouth shapes, and eye
blinking, can be incorporated into the algorithm. Unique items, such as moles,
freckles, discolorations, and scars, are other characteristics that can be utilized
for identification. The most sophisticated facial level of recognition systems can
detect and record the expression of moods and reactions to situations.
The use of other biometric measurements, such as thermal heat cameras,
is another part of the complex spectrum of facial recognition. As shown in
Figure 1.4, there are multiple aspects to the acquisition of data involving people,
classifying that information, then distributing the results, and eventually, inter-
acting with the users of this technology. As you can imagine, the same process
can be applied to voice characteristics and speaking patterns. And finally, the
information obtained from facial recognition can be compared with images on
private files and public records, including finger prints and several other biometric
identification measurements.
There are many questions about the reliability and accuracy of facial recogni-
tion. Depending on the algorithm, and the individual who designed it, results can
often be inconclusive. This means that a certain amount of error always occurs,
but is it significant, and can it be trusted? If the situation is a shopper in a store,
a misidentification would only be an embarrassment, but using this same technol-
ogy for law enforcement, security surveillance, or private protection might have
other, more severe consequences. So, there is plenty of room for improvement in
facial recognition technology, but as artificial intelligence continues to observe
and learn from the process, the degree of accuracy and reliability will dramati-
cally improve. Until then, marketing communication can only use what is avail-
able and recognize that errors will always be possible.
Complex
Algorithms
Skin Texture Structural
Analysis Relationships
3D
Facial Database
Geometric
Recogniton Matching
Modeling
Figure 1.4 Biometrics and Facial Recognition
7
Surveillance Environments
Nearly all of us are exposed to facial recognition cameras, as well as other biomet-
ric detection devices, several hundred times a week, or even more. That alone is a
significant amount of information about us. The data collected provides an accu-
rate record of our mobility, including the time, place, and duration of activities.
For example, facial recognition compiles information from many different loca-
tions, but the most important input sources are public places, homes and apart-
ments, business locations, retail stores, transportation, and social media.
This situation has often been described as a surveillance environment. But, it is
part of the world that we now live in. The challenge for marketing management is
to learn how to leverage this technology for brand communication, sales promo-
tional activities, and relationship building.
Let’s begin by developing a perspective of a surveillance environment, espe-
cially with the locations that are shown in Figure 1.5, along with the benefits that
might emerge from different methods of data collection.
Public Places Yes, cameras are everywhere. Some you see, but most of them are
hidden. Small video cameras are placed on street corners, buildings, bus stops,
road signs, traffic signals, and many other locations. While most cameras are
strategically arranged and used for specific purposes, such as the monitoring
of automotive traffic, crime prevention, or crowd control, others are for private
purposes. Do you have any idea how many cameras are located in your city or
neighborhood?
In New York City alone, there are 18,000 surveillance cameras used by the
Police Department to monitor the movement of people and activities around this
large metropolis. The entire city has a recorded number of 31,900 cameras, com-
pared with Los Angeles with 22,675, Paris with 26,835, Tokyo with 39,500, and
Hong Kong with about 50,000. London was ranked as the third most intensely
surveilled city in the world in 2020 with an astonishing total of 627,000 cameras.
This means that a density of 67 cameras per 1000 people is used for observ-
ing, monitoring, and recording the population of London. While the safety and
security of its citizens are very important, England has taken extraordinary pre-
cautions to maintain a network of social media connections, or digital eyes, to
identify problems and then take action immediately.
But, the utilization of facial recognition in Europe and the United States is
extremely low compared with China. Now, are you ready for this number? The
capital of China, Beijing, has over 1,150,000 cameras monitoring its population.
Homes and Office Manufacturing

Public Places
Apartments Buildings Facilities
Transportation Schools and

Retail Stores Social Media
Services Universities
Figure 1.5 Video Surveillance Locations
8
Shanghai has an equally high number of more than 1 million cameras. In fact,
nearly 100 cities in China also have intense surveillance and video observation
environments. Even though it is the most populated country in the world, China
has more than 200 million video cameras installed. That’s right, 200 million!
Homes and Apartments When you are looking at your computer, is your
computer looking back at you? It can, if programmed correctly. That small red
dot at the top of your laptop or desktop that indicates when your camera is turned
on could be activated remotely by a hacker. Many people are already concerned
about the possibility, and that is why tech experts recommend putting a piece of
tape over your camera viewing port at the top of your computer. Yes, that solves
the problem fast.
But facial recognition in home environments is all about those other video
cameras. While very small and inexpensive recording devices can be placed in any
room of a house or apartment, the most dramatic location is a different location.
How about outside your entrance door? About 10 years ago, Doorbot was intro-
duced to the home security market. From virtual obscurity as a start-up, this little
product would begin a whole new chapter in surveillance. The original device
was simple, at first, with a camera inside a doorbell to enable viewing who was
outside your entranceway. It also included a mobile app that enabled you to see a
visitor or guest on your cellphone. Later, the product was rebranded with a new
name, Ring. This version featured a high-definition camera, a microphone, and a
small speaker for two-way audio communication. So, when a person comes to the
entrance doorway, the owner or resident can silently view the person in real time,
record their appearance, and even have a short conversation or provide instruc-
tions. As the technology improved, Ring was capable of playing a pre-recorded
message, musical song, or special sound effects, or remotely performing other
functions, such as activating exterior lights.
During its early development, it was known to share crime-related video inci-
dents with local governments and police departments. This was perceived as a
positive activity. But, the other opinion is that while you are protecting your
home, you are also contributing to the global network of surveillance. Suddenly,
this became both an ethical and a personal issue, especially when it was discov-
ered that data from these devices was being sold to several digital marketing com-
panies, including Facebook. This raised an increasing number of questions about
its usage.
There is one final fact about Ring that you need to know. In 2018, Ring was
purchased by Amazon. And, it provided an entirely new data collection resource
for marketing purposes.
Then, there are apartments. You go out. You come in. And you go out again.
And you return. If you live in a large apartment building, these events are repeated
many times. But as you exit, or enter, the cameras are silently watching and record-
ing. The data collected is enormous. Just imagine! Who has left? What time? How
long were they gone? While most of the video cameras in apartment buildings
are used for live surveillance and security, the potential exists for sharing this
information with other data storage systems. It can be connected with movements
around the city or just down the block. And if social media is involved, the power
of social media and facial recognition are combined to match who you are, where
you are, and when you were there.
9
Offices and Warehouses The need for security and surveillance becomes the
most important motivating factor for using facial recognition in work locations.
This is primarily used for accessing both private and government locations. These
include more than just office buildings and warehouses. There are manufacturing
plants, transportation centers, storage facilities, and the list goes on. For many
years, a security guard was the only gatekeeper and guardian of a work location.
The primary responsibility of these security guards was to check the identity of
employees, suppliers, or visitors to a work location. Then, technology intervened
with magnetic access cards, digital key fobs, and most recently, mobile apps, but
now, cameras have taken over by providing the same essential service of identity
verification using facial recognition technology. Smile, please!
Retail Stores In many large retail stores, there is a person at the main entrance
who gives you a friendly greeting or welcoming hello. But very soon, you might
begin interacting with a different personality, a digital avatar. Since this experience
will be a shopper’s first point of contact, the avatar has the opportunity to direct
a personalized message that is meaningful and relevant. This technological form
of engagement has the potential for interactive communication using artificial
intelligence.
Here’s how it works. As you walk through the entranceway, a facial recogni-
tion system is activated. It scans your face, searches the store’s internal database,
and attempts to identify you. If there is a match, the computer instantaneously
knows the answer to three important questions: Has this person ever visited this
store before? What did they purchase during their last visit? Is this individual a
member of the company’s brand loyalty program? There are thousands of differ-
ent pieces of information about you, and your shopping behavior, that are imme-
diately available for a sophisticated software program to analyze, interpret, and
utilize as the store prepares to interact with you. Depending on the technology,
you will automatically become part of the process.
That’s right. The computer, using artificial intelligence, is going to communi-
cate with you. First, since it already knows your name, it can welcome you on a
digital screen. Nothing fancy, just your first name displayed in bright bold letters.
Or, the computer can select a voice greeting. Synthesized speech is an easy-to-use
technology today. Imagine, “Hello, Martin. Welcome to Harrah’s.” And, after
you walk a few more steps, a video message from a friendly avatar: “Is there
anything we can help you with today?” As you can tell, the computer is trying to
establish, or maintain, a human-like relationship. This entire scenario might be
vaguely familiar. And, it should be. Remember the movie Minority Report with
Tom Cruise? If you recall that scene, then you fully understand the potential for
bombarding a person who is entering a retail store.
In the future, facial recognition can be used to monitor a customer’s shopping
behavior with the installation of “aisle-cams.” These strategically located cameras
could be a valuable source of observational research or a tremendous invasion
of privacy. Let’s begin with an exploration of the first application. The cameras
would be using facial recognition to identify individual shoppers and then, begin
collecting data that is specifically associated with that person. For example, the
purchase of a breakfast cereal. How long did they spend in this section of the
grocery store? Which packages did they look at first? Did they check prices online
with their smartphone? Which brand did they finally put in their shopping cart?
10
There is a sizable amount of information about an individual shopper at a par-

ticular store at an exact day and time. This is precisely the type of qualitative and
quantitative data that can be used for predictive analytics.
There is another reason why retail stores want more cameras installed.
Shoplifting. It has always been a big problem. The financial losses from illegally
taken merchandise historically run into billions per year. While people who steal
are difficult to catch, they are even more of a nuisance to prosecute. There are
thrill-seeking teenagers, people in economic difficulties, and others who just enjoy
the thrill of not being discovered. Unfortunately, there are also very experienced
professional shoplifters who make a career from their deceptive skills and tech-
niques. Facial recognition will identify most of them immediately as they are
entering the store. Perhaps, it’s time for their early retirement? This is certainly a
big plus for the loss prevention department.
Transportation Most any public vehicle can have a surveillance camera inside,
on top, or mounted in a receptive position. This includes trains, buses, taxis, and
even trucks. Millions and millions of them are moving around out there right now.
Many of them have already been equipped with a camera for security purposes,
and even more will be installed tomorrow. The ride sharing services Uber and
Lyft immediately installed more cameras and in some cases, facial recognition
systems during the Covid-19 crisis. No mask, no ride. And if the company wants
to subtly identify and notify drivers of any previous customers who have been
uncooperative or caused problems, the same facial recognition technology can be
used. Also, there is another consideration: the physical area around transportation
locations, where people are either congregating or passing by the vehicles, such
as bus stops, train stations, or waiting shelters. Transportation locations provide
an excellent opportunity to use artificial intelligence to know who is going where
and when. Fortunately, there is no way to know why these people are traveling,
unless Alexa or Siri is involved in the process. Then, it morphs into a gigantic
surveillance network.
Social Media Find your friends, follow your family, and become fans of your
favorite celebrities, local personalities, and nearly anyone else with a Facebook
or Instagram page. But, wait. Do you know those other people in the photos or
posts? Not everyone has been tagged or identified, but now you can do this with
your very own social media software. There are plenty of free versions available
for download, as well as more sophisticated platforms for business enterprises,
non-profit organizations, and government units. During the past few years, as
facial recognition has become more popular, a barrage of new apps has emerged
in the marketplace. Some are good; others are not. One caution. Be sure you know
the reputation of the company and its privacy policy as well as the actual costs
of using or downloading the software. Here are a few suggestions that you might
want to consider and try out with social media.
Blippar is a face recognition app that can identify over 370,000 celebrity faces
for a quick search on their life, work, and other details. FacePhi is dedicated
to the financial sector, allowing banks to recognize their customers in order to
enhance the mobile experience with an added level of security. Luxand can recog-
nize faces in live video footage, along with an estimate of their age. This company
also aggressively markets itself on multiple social media platforms by offering
11
the consumer version of its software, called FaceSKD, which appears to be more
focused on collecting visual data from individuals than effectively using it to
enhance online experiences.
Face2Gene is a facial recognition app for the medical industry, which has been
used to help doctors perform genetic evaluations. FaceFirst uses facial recognition
software to identify individuals from a distance, making it ideal for law enforce-
ment, military, and other organizations. Log Me uses helps users find people from
any part of the world. Like a social networking platform, it enables users to search
for old friends and distant relatives from old photographs and compares the image
to find the best matches. If it is successful, you are provided with enough infor-
mation to contact them. Hopefully, the technology has worked correctly, or you
might just be reaching out to the wrong person. Want to see what you will look
like in the future? Then, try this “aging” and “feature modification” app. It is
appropriately called FaceApp and was launched in 2017 for iPhone users. FaceApp
filters include changing the smile, hairstyle, skin tone, age, and even gender of
your own image or the image of anyone else that you want to upload. Looks like
part of a digital playground, using technology to change reality, but then, what is
real and what is not?
Companies Using Facial Recognition

It’s not in the news, but many companies are experimenting with facial recogni-
tion for a multitude of purposes. These include a “contactless” payment system,
customer service improvements, employee performance evaluation, management
negotiations, political gatherings, marketing research, music concert audience
feedback, and virtual “product trial” experiences. Here are just a few examples
of how facial recognition is being used for many purposes other than policing,
security, general surveillance, and in-store marketing activities.
Disney Theme Parks In March, 2021, the Disney Company announced that
visitors to its theme parks and entertainment centers had the option to use a “facial
recognition” system for the entrance pass. No more printed tickets, no more digital
bar codes, and no more QR codes on cellphones. While this was presented as a
test program, it is inevitable that the utilization of facial recognition by Disney
is a significant advancement in marketing technology. This method serves not
only as an admission control procedure but also as a continual monitoring and
surveillance system. Just think about it—Disney will know exactly where you are
in the theme park, how long you are spending in each location, and your physical
movement pattern through your entire visit!
Is this an invasion of privacy? Probably not. Because this is private property,
Disney has the right to make certain requirements for entering and utilizing its
facilities. This is like a contact and not very different from all the legal statements
involved in using any product or services.
Just read the statements and disclaimers when you sign up for any social media
platform. If you don’t agree to the conditions and regulations, then you cannot
use the service.
Disney’s expansion and implementation of a facial recognition for its theme
parks will be carefully observed by competitors. Other companies that interact
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with large numbers of people in a single location, such as sports stadiums, out-
door concert venues, shopping malls, and even community events, will also be
very interested in the application of facial recognition.
So, this is the just the beginning of the utilization of facial recognition for mar-
keting and the application of artificial intelligence to monitor, interact, analyze,
and interpret customer behavior. Let’s see what happens next and which other
companies follow Disney’s lead.
McDonald’s When you purchase a Big Mac, large fries, or just a small
cheeseburger, facial recognition is working hard to provide you with the best
customer service. Surprisingly, the cameras are not looking at you but at the
McDonald’s employees. The company is using facial recognition to monitor and
evaluate the facial expressions of its staff when they are waiting to take your
order, making a payment, or delivering the food to you. This is only being used
in a few select stores, but the technology could easily be expanded to include
customers. Then, in the future, when you are trying to decide between a Big Mac
and a salad, the facial recognition technology will be capturing information about
your reactions before, during, and after your purchase decision process. And,
artificial intelligence might be used to predict what you will buy in the next few
seconds based on your previous history. Maybe a large order of fries, again?
Walmart How you shop is even more important than what you buy. That’s the
approach taken by Walmart when using facial recognition to scan the aisles. What
is it searching for with those cameras? Walmart is gathering data about your
physical shopping behavior. It wants to know your movements around the display
racks, which packages are picked up from shelves, which ones are passed by, and
the walking pattern that you have taken while you were in the store.
This is marketing research about in-store shopping patterns. While Walmart
wants to study the flow of people going up and down the aisles, there are national
manufacturers who want to know more about how shoppers interacted with their
brands, specifically the packaging. But, Walmart owns and controls this infor-
mation. Should it be collaborating with the manufacturers? Or, can this provide
Walmart with another source of income from its retail operations? If facial rec-
ognition is being used, the technology can identify the person who is shopping
and send text notifications to them with coupons, special sale prices, or other
promotional incentives.
Chevron Can you buy gasoline just by showing your face? Yes. Chevron is using
facial recognition that allows truck drivers to purchase its fuel products at selected
service stations along motorways and highways. Will they expand it to include the
average motorist? Imagine pulling into a gas or petrol station and then looking
into a camera to get authorization and to make a payment. And, that’s not all.
In some countries, Chevron is using the same facial recognition technology with
gasoline delivery trucks to recognize fatigue, distractions, and other safety-related
factors among truck drivers. Is it possible that this application will also be used in
automobiles in the future?
MAC Cosmetics Imagine being able to try 800 shades of lipstick without leaving
your home or apartment? Well, you can. MAC Cosmetics has an interactive online
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experience on its website that does just that. It uses the camera in your mobile
device or desktop for an image of your face. Then, you swipe as many different
shades as you want from its vast selections of colors and styles. Whatever you
want, from glossy to vibrant shades and from classic to modern, it’s on the screen.
You can even upload a photo of yourself in your new dress or fashionable clothing.
Perfect for going out to a party or clubbing, then match the shade of lipstick to
your mood. How cool is that?
But, consider what else might be going on during this virtual experience.
Biometric data is being collected about you. This includes not only your facial
expressions but also a potential scan of your eyes. It is possible to gather research
data about how you reacted to each shade of lipstick after you put it on your lips,
or the popularity of different choices of lipstick, ranked by the order of selection,
the number of product purchases, and the estimated demographics of the user.
But, the same facial recognition technology can be used at cosmetic counters with
retail stores. In those cases, the social interaction with a sales representative, or
a few of your friends who decided to shop with you, will enhance your shopping
experience.
MasterCard Here is a potential industry disruptor. MasterCard has facial

recognition software that enables customers to pay for purchases by holding their
mobile device, such as an iPhone, and pointing it at an optical scanner at special
check-out locations. Just blink twice. Yes, blink! Your eyelids are now acting as
keys on a computer or a mouse with a pointer. In those microseconds while you are
waiting, the camera is scanning your face, and a computer is using Master Card’s
facial recognition algorithms to identify, verify, and authorize your purchase.
Smiling is not required, but it does make the entire process more enjoyable.
Privacy Rights and Laws

Who said you had a right to privacy? Or, does anyone actually guarantee that
right? The answer to these questions has changed during the Digital Age.
Technologies have expanded our ability to view, listen, and interact with other
in both face-to-face and artificial environments. The most important change is
that the process of viewing, listening, and interacting can be initiated without
our knowledge. This process can also be completed using machines and artificial
intelligence, which gathers data, analyzes and processes the data, and finally, uses
the results to accomplish a task.
Biometric Privacy Act Consumers are becoming increasingly concerned about

their own privacy. The collection of data by social media without consumers’
knowledge has raised awareness of this important issue. After it was discovered
that Facebook was selling personal data or collaborating with third-party users,
a movement to restrict or limit the power of social media companies was initiated
with the introduction of several bills and laws that attempted to solve or alleviate
the problem.
In the United States, the first Biometric Privacy Act was passed and approved
by the State of Illinois in 2008. Its purpose is to guard and protect against the
unlawful collection, storage, and usage of individual biometric information. This
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was followed by a series of similar laws and legislation introduced into other areas
of the country. In 2020, a court in the United Kingdom ruled against the police
in New South Wales, Australia, who had collected facial recognition data from a
mobile van that was parked outside a football stadium. This ruling is the latest in
a growing movement against facial recognition technology on the grounds that it
violates personal freedoms, invades privacy, and is discriminatory.
Twenty lawsuits alleging biometric data privacy violations by TikTok have also
been filed in federal court in the United States. Eventually, they were combined
into a single legal case, which alleged that TikTok facial biometrics and other
data were collected from minors by the app and ultimately sent to China. This
included claims that TikTok was also securing user data from smartphones that
were using the app for social media. Microsoft, which was in the process of pur-
chasing TikTok, stated that it would ensure that all data would remain in the
United States but did not indicate whether it would follow the guidelines of the
California Consumer Privacy Act.
Consumer Concerns Expect more legislations and controls in the future. The
European Union has already taken strong action, and further debate is anticipated.
What this will mean for the future of social media is unclear, but the problem of
privacy is much larger and more insidious, especially regarding video surveillance
with algorithms for tracking and recording the movement of people. In China,
the process of monitoring people even includes rewarding individuals for positive
public behavior, such as crossing roads in the correct place, or punishing them
for unwanted actions. There is actually a score associated with your observable
behavior. There was once a phrase: “The whole world is watching.” Well, guess
what? Today, the whole world is “being watched!”
Interactive Voice Commerce

Speech recognition software is nothing new. Just pick up a telephone and call a
company, office, store, or organization. You will be asked questions by an auto-
matic system and routed to the correct place. Software programs were able to
understand the words spoken by a human and respond based on key words and
phrases with the help of artificial intelligence. Most of the time, it worked pretty
well. However, many other times, it did not. Eventually, you could get help from a
live customer service representative. Still, there was plenty of human-to-machine
interaction, but the problem was the amount of time involved in the communica-
tion process.
Text-to-voice software packages are also available for your computer or mobile
device. These allow the user to speak in a conversational tone, with the result of
a continuous flow of typed communication. The reverse process, text-to-voice,
is also part of different software packages. For example, Dragon speech recog-
nition software is a pioneer and leader in conversational artificial intelligence.
Offered by Nuance Communication, Dragon software is easily compatible with
either Apple or Android phones. But, there was still something missing. It was the
transition from dictation and transcription systems toward live, real-time interac-
tions with customers and retail businesses.
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Voice Assistants and Smart Speakers

Siri was introduced in 2011 as an advanced feature with the Apple iPhone 4S.
Alexa was launched in November, 2014 along with a black cylindrical speaker,
the Amazon Echo. This was another quantum leap for human-to-machine com-
munication. Initial sales were slow, but the Christmas holiday season propelled
Amazon Alexa sales to 12 million units, and the following year, sales reached
20 million units. By the time Amazon had reached 60 million units, Google
finally entered the market with its Google Assistant smart speaker, followed by
Samsung’s Galaxy S8 with Bixby. By the end of 2020, more than 100 million
smart speakers had been sold to customers.
The smart speaker market evolved and expanded into a new classifica-
tion of products, which included smaller viewing pieces of technology along
with viewing screens that could display the actual products and services being
requested. This became the foundation for seamless voice commerce, because
physically seeing an object is easier than just talking about it. So, the next
level of interaction went beyond asking for music, weather reports, or movie
recommendations.
Definition of Voice Commerce

In this textbook, voice commerce is defined as a “seamless customer experience
from online search to physical delivery.” Now, this is much more than just ask-
ing a question and waiting for Siri, Alexa, or Google to respond. Originally,
those devices could only provide information and nothing more. Until now.
Voice commerce has taken several giant leaps forward. The difference is that
Siri, Alexa, and Google now have a new function. They are intermediaries that
now have the ability to connect and leverage their voice technology with retail
locations.
What Is an API?
Without getting into the technological details, a software program that involves
detailed coding, called an API or Application Program Interface, is needed to
send actionable instructions to a computer or mobile device. Many of these
APIs are simple, routine processes that can be combined and incorporated into
larger, more sophisticated programs. Perhaps, a good analogy is Lego build-
ing blocks, which become useful only when they are assembled according to a
creative design or pre-determined structure. Each one fits into the others and
contributes to the final end product. So, APIs can be used to develop interactive
voice commerce programs.
Voice responders and personal assistants are providing APIs to software devel-
opment companies and individuals for building systems involving voice commerce.
For example, the Alexa Developer Package has the codes needed to transform a
human voice command into a performance task to be completed. These building
software building blocks are called “skills” that can be used independently or
combined in sequences. Currently, there are more than 100,000 skills offered by
Alexa as part of its integration package for intelligent voice control.
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Seamless Voice Purchasing

The four sequential stages of a seamless voice commerce experience are shown in
Figure 1.6. While the process involves multiple decisions and options, the basic
sequence includes search, selection, purchase, and delivery. The search part of the
process is initiated through a voice command to a smart speaker, or cellphone, in
the form of a request to find a product, service, company, location, or brand name.
We have all done that for music, sports scores, or shopping. But, here is where the
API takes over. If a retailer has installed a voice purchasing system, then the pro-
cess goes beyond the traditional search and selection process. Once this request
has been identified and confirmed, the user communicates a command to Siri,
Alexa, or Google Assistant to run a special program related to a retail location.
The command must be short, specific, and use the most appropriate words for
speech recognition. Plus, the command must also include the identification name
of the retail store or company. For example, a command to Alexa could be: “Start
McDonald’s” followed by the spoken words “display food menu” and then “show
lunch specials.” The entire selection process continues down, including the most
detailed items or extras, like extra ketchup or mustard. Perhaps some fries? And,
don’t forget the Diet Coke!
What happens next is achieved by incorporating the API codes that have been
previously created for a business by a voice software system supplier. This is not
as hard as you think. The software supplier has written instructional computer
“code” for specific industries, such as fast food restaurants, hotels, and recrea-
tional facilities. Want to reserve a tennis course or golf starting time? There are
pre-packaged programs for those functions. Want to book a room for a vacation
trip? Or, a dinner reservation for Saturday night? No problem. There are pack-
ages of code already complete. What you do need is a dependable voice commerce
company to provide the APIs.
The third stage of a seamless voice commerce experience is the purchase. This
requires a secure financial transaction involving a bank credit card or debit card,
PayPal, or any other form of payment exchange that is approved safe for online
transactions. This process is incorporated into the store’s proprietary app and
activated during the checking-out part of the transaction. The payment sequence
is activated immediately after a final check-out is desired. And then, the fourth
stage of the seamless voice commerce experience is delivery, which can include
bringing the food or merchandise to a private home, apartment, or office location
as well as specifying either in-store pick-up or a drive-through arrangement. This
Search Select Purchase Delivery
Figure 1.6 Voice Commerce Seamless Experience
17
is where a voice commerce company is needed to complete the seamless process.

Once again, the APIs are there to facilitate the flow. There are dependable service
delivery operations in every city, from large national companies to smaller local
entrepreneurial start-ups. They just need to be plugged into the voice commerce
equation through a voice commerce service company.
Jetson is an example of a typical company involved in the voice commerce
industry. Based in New York, it provides retail establishments with the API codes
needed to complete seamless transactions. This enables larger corporations, as
well as local businesses, to interact with their customers using user-friendly soft-
ware. It is just another demonstration of how artificial intelligence is shaping the
future of communication and brand management.
And finally, a word about the future of voice marketing. What will it become?
Expect that brand name recognition, and especially brand name recall, will be the
single most important factor that determines success in voice commerce. If a con-
sumer cannot remember the brand, how can they ever order it? There might be room
for micro-video advertising here to stimulate or prompt consumers. Let’s call it video
“blips,” which just communicate a brand’s position or image. However, the challenge
is to demonstrate that voice commerce is viable by providing consumers with a seam-
less experience, with rapid completion times and accurate delivery arrangements.
Synthetic Media
Not everything is what it appears to be. Not in the world of synthetic media, espe-
cially with video. The person you are watching is not there, and the words you
are hearing are not coming from a human. That’s right! You guessed it. The video
was a computer-generated replication using a complex text-to-video software pro-
gram. Imagine the possibilities. A realistic-looking human avatar is speaking the
exact words that you have just written. However, there is a growing danger for
misusing synthetic media, called the “deep fake,” when a video is created and
produced using an authorized image of an actual person along with a manipulated
voice to imitate the real one.
Definition of Synthetic Media

Synthetic media can be defined as “the creation, production, and distribution of
video messages, programs, and brand communication using complex algorithms
that modify, manipulate, and combine user-generated text, images, and digitally
stored content.” Humanized avatars are used to create messages by transform-
ing the text content into an auditory and visual message. How is this possible?
Because synthetic media are based on complex “text-to-video” software, artifi-
cial intelligence can realistically replicate human speech patterns. This process
is achieved through the subtle manipulations of facial features, especially the
lips and mouth, along with body movements, hand gestures, and other forms of
non-verbal communication. The artificial intelligence software is still learning to
speak and understand the many complexities of a “human” language with all its
nuisances, idioms, inflections, and inferences; however, at the same time, we are
still trying to communicate effectively with machines.
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Humanized
Avatars
Written Visual
Words Images
Language
Backgrounds
Translations
Speech
Patterns
Figure 1.7 Text-to-Voice Synthetic Media
There are four basic parts involved in the creation of a synthetic media video:
the digital avatar, the background image, compatible music, and a written script,
which is entered as text (see Figure 1.7). The software program combines these
four parts using artificial intelligence and generates a finished video product, usu-
ally in an MP3 file. It’s that simple and easy, but it does require technical or
computer programming experience. Fortunately, there are several platforms that
provide user-friendly instruction to facilitate the process. The most versatile appli-
cation technology is by the award-winning London-based company, Synthesia
(www.synthesia.com).
Here is a description of how a synthetic media video is produced and the chal-
lenges involved.
Digital Avatars
First, the digital avatar who will be featured in your video is selected from a col-
lection of different personalities. These are real people who have been previously
recorded and through the power of artificial intelligence, speak the words and
phrases that you have entered into a written script. These avatars include men and
women from different age groups, physical appearances, ethnic backgrounds, and
perceived social orientations. While each one has a distinct speech pattern, accent,
and in some cases, even a regional dialect, they are automatically programmed
to convert your text words into a spoken language. In fact, there are more than
30 different languages currently being used with digital avatars. This means that
you can immediately translate your words into French, German, Italian, Spanish,
and even Mandarin Chinese. Just imagine the cost savings, as well as time, when
a single written script for a video commercial or short form content can be utilized
to generate videos for Europe, South America, and Asia.
19
Want to become an avatar? You can. Just upload several images of yourself.
The software will automatically create a digital version of you. So, after you write
a script, your “digital self” will actually be speaking those same words for you in
the video. Pretty cool technology! It’s a perfect alternative for everyone who gets
nervous when they have to make a live presentation.
Text-to-Speech Video Technology

The only major challenges for text-to-video messaging are the rate of speaking,
inflection, and pauses. There are options for speeding up or slowing down the
number of words spoken. Also, the software program enables the artificial intelli-
gence within its design to recognize and to place inflection points at the beginning
of sentences as well as other critical points in the texted script. But, the pauses are
a real problem. Fortunately, the insertion of a small piece of code that is generic
to the system can immediately correct the issue. It takes practice to establish the
correct timing and length of a pause, but the results ensure smooth and realistic
communication. As this technology improves, it will be an increasingly easy and
fast process for converting text to speech.
Virtual Backgrounds
The background image for a synthetic video is selected from a series of images,
which can include uploaded photos from your photo or computer. This is identi-
cal to the technology of Zoom and other video meeting services. So, your pos-
sibilities are endless. Different scenes, locations, and designs along with a gallery
filled with royalty-free pictures are immediately available. This not only makes
the video more interesting but provides a much better visual environment for the
avatar. And if you are a small or large business, the background image could also
be a prominently displayed brand or corporate logo. There are no limitations on
the type of image you can include in the background, as long as it can be uploaded
properly.
Music Tracks
What to use music with your video? It’s as easy as selecting pre-recorded “instru-
mental only” versions that have been electronically created for synthetic media.
Since there are royalty and licensing restrictions on copyrights for musical perfor-
mances, the music that is currently available will be provided only for enhancing
the video production. Since the spoken words and images are more important, the
music provided is primarily an enhancement of the final video.
Applications for Integrated Marketing Communications

So, what are the advantages of using synthetic media for IMC?
Let’s just go down the list. For advertising, video commercials can be pro-
duced in minutes for a fraction of the cost of the traditional method. This repre-
sents a significant saving in time and money. The commercials can range from a
simplistic announcer-style presentation to a more complex integration of people,
20
objects, and locations. The voice selected can also reflect or represent the mind
and mood of potential buyers. But, there is another important distinction. With
advanced features and artificial intelligence, the digital avatar can be selected to
reflect specific demographic characteristics, such as male or female and young or
older individuals. This is an excellent way to create resonance with the viewer,
who can relate to a virtual avatar that looks, sounds, and acts just like they do.
For example, the avatar might be a 25-year-old Hispanic female, a 35-year-old
African-American man, or a 50-year-old white male.
Sales promotion events and activities have a great need for synthetic media.
This is because nearly every promotion is short-term and depends on the immedi-
ate response of consumers. The availability of a low-cost method of video produc-
tion provides a manufacturer, or local retailer, with the technology needed for the
changing marketplace. Coupon offers, special discounts, flash sales, and other
promotional incentives can be created and launched weekly on social media. For
public relations, a digital avatar can perform the function of being the spokesper-
son for a brand or company. These video replications can be a faster and more
cost-efficient method for creating and distributing public relations messages, espe-
cially for important news announcements or sending messages to journalists dur-
ing crisis management situations.
For business-to-business marketing, advanced versions of synthetic media have
the capability of adding a split screen option for PowerPoint or Keynote presenta-
tions. The same technique can be used for sales training purposes involving prod-
ucts and services. Another important utilization is for inbound marketing, where
the videos are posted for website visitors to watch.
Dangers of Deep Fakes

Now that you know what synthetic media can do, here is the dark side of the tech-
nology. Deep fakes are videos with avatars that appear to be famous celebrities in
sports, movies, or cultural popularity. This deception can include people who are
trending in social media with a large number of followers. The deep fake might
even be extended to use images and videos from members of their own family or
close friends. All this is done without their knowledge or permission. Not only is
this practice against the law, but it is also extremely harmful to society. It destroys
trust as well as distorting the truth. So, synthetic media will be used illegally by
some people, especially for posting on social media, until adequate protection
measures are provided.
Three-Dimensional Social Media

This is not the social media you are using now. In the near future, there will
be plenty of changes. While we all know something about artificial and virtual
reality, most of us would not expect that it could be connected to social media.
The transformation would be astonishing and revolutionary. Just imagine if your
Instagram image or Twitter or Facebook posts also included an interactive, three-
dimensional visual component. This could open up new possibilities for personal
communication as well as opportunities for advertising. For example, displaying
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an image of a new automobile using artificial and virtual reality could enable you
to walk around the outside of the vehicle and get inside by opening the door, or let
you experience features such as the car’s navigational map system or music activa-
tion panel. Yes, three-dimensional interactions!
Artificial Reality
Sometimes, there is confusion when using the terms artificial reality, augmented
reality, enhanced reality, virtual reality, and physical reality. It is important to
understand the descriptive distinctions and the basic functions of the digital
technologies involved. So, each of these terms will be discussed and compared.
Hopefully, there are no questions about the concept of reality.
The first three terms are essentially referring to the same process. Artificial
reality, or augmented reality, involves modifying or changing the visual appear-
ance of an existing environment by projecting images, videos, and other digi-
tal information onto the screen of a phone. The result is a merger of the real
world with the artificially created images and enhanced visual activity. The user
of artificial reality experiences a single vision of the same physical space. Perhaps
the best example is the world-famous game Pokemon Go. Introduced in 2016 by
Nintendo, this popular augmented reality platform uses the global positioning
system (GPS) technology on your smartphone to locate your position and then
superimpose images and digital creations. Reality and fantasy become one. If you
have seen groups of people intensely looking down at their phone screens while
walking around parks, down streets, or gathering in other public places, then
they are probably playing Pokemon Go. It’s a captivating game with more than
600 different species in 2020 to interact with during the process. If you have
played Pokemon Go, then no further details or explanations are needed. But, you
might need to demonstrate this by sharing this experience and free-to-play game
with some of your friends who have never engaged with it or experienced dealing
with these imaginary creatures.
Virtual Reality
Virtual reality is a simulated experience created with a three-dimensional com-
puter-generated environment. This is not exactly the same as Star Trek’s fictional
Holodeck, but it certainly is moving in that direction. The user is immersed in
fantasy worlds and situations involving people, places, and activities. While most
of the virtual reality experiences are game-based for consumers, there is growing
acceptance of the technology for training programs, academic courses, medical
simulations, and an endless list of possibilities. This definitely includes advertis-
ing, sales promotions, and public relations for brand communication, but where
does artificial intelligence come into the process? Let’s find out more.
Oculus Headset Equipment In 2010, the prototype of a virtual reality headset

was completed. Two years later, the Oculus Rift was introduced to the game show
market at an industry trade show attended by game designers, software suppliers,
technology developers, and many other interested corporations. Apparently, the
Oculus Rift was so impressive that in 2014, it was acquired by Facebook for a
22
substantial amount of money. By 2016, more than 230 companies were designing
artificial reality products and services. This powerful list included Amazon Apple,
Facebook, Google, Microsoft, Sony, and Samsung. Just imagine what things are
being planned for consumers.
Since virtual reality requires headsets or goggles, there is sophisticated hard-
ware involved, too. Fortunately, those large goggles have decreased in size. Also,
they have become more stylish. Gone are the days of wearing a gigantic apparatus
on your head or attaching a cellphone for viewing. Oculus remains the leader in
virtual reality, with many different models and options. The product offerings are
changing constantly: new updates, operating features, and options.
While there are a few competitors who will be challenging, there is an over-
whelming obstacle. Oculus is owned by Facebook. This relationship will result
in virtual reality experiences that defy your imagination, excite your senses, and
thrust you into a new world of fantasy.
What can you expect in the future? Figure 1.8 provides several categories that
will continue to be prominent in the development of virtual reality, including loca-
tions, people, experience, sports, activities, immersion, learning, and simulations.
While brands are now experimenting with this technology for marketing com-
munication, it has not yet been introduced. Expect rapid development, especially
after the transformation of social media platforms with virtual reality.
Facebook Horizon It’s time to experience a new Horizon. This is Facebook’s

attempt to attract a new global user community with a blended application
of virtual reality software and hardware featuring selected models of Oculus,
a company that produces and sells virtual reality viewing equipment. While
Horizon is still evolving in its format, it begins with a simple login that takes
you to a digital location, originally named the Plaza, which is a public gathering
place. From there, the user can proceed to customize their own avatar and begin
to hang out with a small group of friends. But, there is much more to Horizon
than just social chat and visual experiences. Facebook is planning to offer a
mixture of experiences and environments. So, expect a real surprise with the
platform.
Have you ever heard the expression that everything old is new again? It’s very
true with the launch of Horizon. About 20 years ago, way back in 2013, there was
a virtual world created for the purpose of digital interaction experiences, called
Second Life. There were over a million regular users just in the first year. After
registering at the website, people could create their own avatars, who were able to
Locations People Experiences Immersions
Learning Simulations Entertainment Training
Figure 1.8 Virtual Reality and Social Media
23
move around on the screen as well as interact with places and objects and com-
municate with other avatars. Physical motions, such as walking, talking, sitting,
jumping, running, and nearly every other conceivable human activity, had been
replicated and visually reproduced in a semi-smooth animated form. It wasn’t
always perfect. But, the intention of Second Life was to let your imagination fill
in the details. So, it wasn’t a game but rather, a digital adventure that the user
controlled through decisions and encounters with other avatars.
One surprising and astonishing twist with Second Life was that it had created
its own currency. The Linden dollar was bought and sold with real money from
all over the world. The Linden currency was actually traded on several online
financial exchanges and had a high positive value; however, actually using the
money was exclusively restricted to Second Life. What could you buy with the
Linden dollar? Absolutely anything imaginable from other avatars who had set up
their own retail stores, manufacturing facilities, recreation parks, luxury hotels,
car dealerships, and thousands of other locations to spend time and money. It was
exactly like the “real” world!
Second Life was a time vampire. Those who engaged with the platform spent
hours on it. And, too, many began to enjoy being in this reality more than being
in real life. For example, you could get in your virtual automobile, drive to a sand-
wich show for lunch, and drink a Coke on the way to meet a friend. Or later, go
to the grocery store and purchase an assortment of brand name foods. Maybe, go
home and watch a comedy show on television, or call a friend to discuss the latest
football games. And finally, spend a few minutes deciding which pub or bar you
will go to later in the evening. So, get ready for Horizon and the many experiences
and adventures that it will offer.
Personal Identity Chips

You have read about them and talked about them, but would you ever want to get
one? The specter of being followed, monitored, or observed on a 24-hour basis is
a frightening possibility.
Perhaps, we may not have a choice. The process of individual surveillance is
already happening with facial recognition, selling of personal data by social media
companies, and the ability of Alexa to listen, record, and analyze every word that
is spoken in our homes or apartments.
Orwellian Images
In his famous science fiction novel, 1984, George Orwell depicted life in a state-
controlled society that was constantly monitoring individual activities and
rewriting history. Although his book was published way back in June, 1949, the
projections of a surveillance society were more than accurate. Today’s technol-
ogy has exceeded Orwell’s wildest imagination. But one thing that Orwell did
not describe was a personal identity chip. This is basically a microscopic com-
puter component that is embedded under the skin of an individual person. It is
24
completely feasible and actually used today. But, what if the Covid pandemic pre-
cipitated a need to have one for tracking, monitoring, and managing populations?
In the future, personal identity chips might be our passports or involve different
methods of communication or interaction. While it appears to be science fiction,
anything is possible.
Radio-Frequency Identification (RFID) Technology

Identity chips have already been used hundreds of thousands of times on animals.
Just ask a few pet owners if a veterinarian has ever implanted a microchip in their
dog or cat. It is a good way to find lost pets. It is also useful for ranchers who
want to know the exact location of their cattle. In business, microchips have been
pasted or attached to products to determine their exact location in warehouses, in
retail stores, or even on trucks. This is just one more example of the application
of identity chips.
How does it work? Whether the method is an implant or a tag pasted on a
package, the process depends on a combination of a transponder with a low-
frequency radio transmitter and receiver. The technical name is Radio-Frequency
Identification (RFID). If you’ve ever driven down a tollway, motorway, or Interstate
Highway and made a cashless payment without even slowing down, you used a
small device or sticker with RFID technology. Yes, this was just another form of
“near field” communication, which is growing in popularity for many home appli-
ances and personal services, along with GPS navigation systems for geographic
locations.
Now, we come to humans. The first successful RFID implant in a person was
done way back in 1998 by British scientist Kevin Warwick. Known as a sub-
dermal implantation, it has been repeated many times and has slowly increased
in popularity. Today, individuals who choose to get one have many options for
the location and method of implantation. While this type of device makes sense
for medical purposes, such as storing essential information about an individu-
al’s health condition, it can also be used for security purposes. Implants have
been used for accessing buildings, opening doors in restricted areas, monitoring
prisoners, unlocking private phones, and even storing Bitcoin cryptocurrency.
Surprisingly, it is a simple, painless, and easy procedure. Plus, the cost can be
anywhere from $75 to $300 for the entire implant. While it is not commonly
known, a few companies have adopted limited usage of ID chips for employees
in specialized jobs.
Starlink: The Alternative Internet

Who Owns the Internet?
No one. That’s right, there is no company, government, or organization that
actually owns the Internet. Remember, the Internet is a vast collection of com-
munication systems, technological equipment, and sophisticated software that
25
Public Private
Brand Government
Figure 1.9 Starlink Satellite-Enabled Internets
enables users to create, send, store, and access digital information instanta-
neously on a global scale. The Internet is a complex collaboration of com-
panies and organizations around the world that share this network without
ownership.
However, there are big changes already happening, which will disrupt the
Internet that we are using today. How? Because there will be more than one
Internet system in the next few years. Yes, competitive systems that can provide
the same streaming video and data services that we now enjoy but delivered to us
through a different process. This will all be possible because Elon Musk has cre-
ated Starlink, the new global satellite communication system (Figure 1.9). This is
not surprising from the person who created and introduced the world to Tesla, the
first completely electric automobile. This enormous demonstration of innovation
is just the beginning of new products.
Elon Musk and Starlink

The visionary entrepreneur has been launching satellites from NASA’s space
flight facilities at Cape Canaveral, Florida. The first batch of these satellites was
launched by his own company, SpaceX, in May, 2019. The initial payload was a
total of 50 satellites. Then, another group of 60 communication satellites followed
several months later. And, the pace of these launches has not slowed down, with
the large Falcon 9 rocket propelling hundreds of satellites into space every month.
Now, it’s time for the shocker. The vision of Elon Musk is to have at least
42,000 new satellites orbiting the Earth, which can provide everyone on the
planet with high-speed Internet access!
But, what does this mean? First, security. Since this is a private network, there
is a reduced risk, because the transmission of information will not be shared with
any external users. Data will be encrypted and secure. While hacking can still
26
exist, it will be extremely difficult with a private channel. Ironically, many gov-
ernments of the world are attempting to build their own Internet systems, but
Musk is ahead of them. Second, efficiency. The pathways for connectivity will not
be competing with other carriers and delivery systems. Less competition avoids
delays, and even in microseconds, that is a very important difference. Third, prof-
itability. Starlink will become a digital toll road in the sky. Pay to get in. Pay as
you use it. Pay according to your speed. And, pay when you download. There are
so many ways to generate revenue, including the ability to stream original content.
Netflix has already demonstrated that it can compete, outmaneuver, and innovate
more than its competitors. No wonder the traditional broadcasting networks and
digital cable systems are scrambling to adapt to new models. Sustainability or
obsolescence?
But, the real question is: how will Starlink change global communications?
Absolutely! As shown in Figure 1.9, the Starlink system will enable new global
Internet for public, private, government, and brand usage. And, why is this so
important for marketing and business management? The answer is cost reduction
in communication and an entirely new way to reach and form relationships with
customers and clients.
The number of satellites being launched is enormous according to any previous
standard. This means that the communication carrying capacity will be extraor-
dinarily large, like a gigantic server in the sky with plenty of available unused
digital space. So, if you want to have your own private Internet system, Starlink
can make it happen. Other entrepreneurial companies and existing global corpo-
rations might well take advantage of this opportunity from Elon Musk. The result
could be the creation of a series of very competitive, or complementary, Internets
that are delivering their own content, storing their own data, and providing global
communication services to their clients and customers.
Private Internet Systems

This is already happening. Late in 2020, Starlink began testing its new Internet
service in selected areas of the United States using previously launched satellites.
Early subscribers to the Starlink service paid a one-time equipment fee of $499
and a monthly service cost of $99 per month. This trial was named “Something Is
Better than Nothing” because users were warned to expect periodic outages and
interruptions due to the continuing development and refinement of the system.
Perhaps more remarkable are the company’s plans to open up high-speed satellite
Internet connection to rural and underserved areas around the world. Elon Musk
announced that the initial demonstration of widespread adoption would be in
India during the year 2021.
There is another possibility and opportunity for marketing communication:
corporate-owned brand channels with exclusive content. This could emerge as
another highly disruptive situation with an alternative media model. The need to
use traditional media distribution channels, such as NBC, CBS, and ABC, would
be reduced. Brands might actually be competing for viewers with quality pro-
gramming and entertaining live events. Netflix would be challenged. And, even
the movie production studios would be negotiating with brands to purchase their
27
original films and digital content. Also, there is no need to pay for external adver-
tising, because a brand is both the content distributor and the originator of its
targeted persuasive communication messages.
Tonight, the evening sky over England, Italy, Japan, Germany, Argentina, India,
and the United States, as well as nearly everywhere else in the world, is already
filled with a glowing array of small shiny objects. They circle the Earth-like invis-
ible moons and are sending signals from strategically positioned satellites for
companies, governments, and ventures. Ironically, many of those satellites can be
seen from the ground with binoculars or extremely good eyesight. While changes
have been made to reduce their orbital reflection, it still serves as a reminder that
we, as humans, have only recently begun to explore the universe. It’s time to be
adventurers!
Summary
In this chapter, we explored several of the most influential emerging technolo-
gies. Most of these technologies are still evolving with plenty of obstacles, prob-
lems, and challenges. Some might fail. And no doubt, many more will be added.
New approaches, innovations, and companies will appear with amazing successes
and disastrous collapses. Artificial intelligence has already begun to reshape our
world. The challenge for marketing communication is to understand and utilize
the power of artificial intelligence for advertising, sales promotion, and public
relations.
While there are many different possibilities and applications, we have focused
on the three most important: facial recognition, voice commerce, and synthetic
media. Facial recognition software has already been used to identify loyal cus-
tomers in retail stores and provide them with an expanded shopping experience,
including a welcome greeting, department specials, and instant discounts. Voice
commerce is still evolving with the technological ability to connect Siri, Alexa,
and Google Assistant with local retail stores. This is achieved by using interme-
diary software that allows customers to interact directly with individual stores
using a seamless process of search, selection, payment, and delivery. Synthetic
media are slowly gaining momentum. Their user-friendly instructions provide a
fast, easy, and low-cost alternative to normal video production. The avatars can
be selected to represent different demographic groups, genders, and geographic
areas as well as the capability to deliver text-to-video messages in more than
30 languages.
Finally, there are always things just over the Horizon: Google’s Horizon, the
artificial and virtual video viewing experience that is more like a shared social
media adventure. Plus, there are things far above the horizon, like Starlink, the
constellation of satellites launched by one of visionary Elon Musk’s famous com-
panies, SpaceX. It could very well revolutionize the Internet by creating several
hundred new versions of interconnected global communication and informa-
tion exchange networks. Yes, stay tuned for more to come, because tomorrow is
already happening.
There are three ways to respond to the future: avoid it, create it, or adapt to it.
Are you ready?
28

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Integrated Marketing

Now in its second edition, this textbook explores the continuing

Jerome M. Juska is an Adjunct Professor at Seminole State University.

Second edition published 2022

Routledge is an imprint of the Taylor & Francis Group, an informa business

© 2022 Taylor & Francis

All rights reserved. No part of this book may be reprinted or reproduced or

Trademark notice: Product or corporate names may be trademarks or

First edition published by Routledge 2018

Library of Congress Cataloging-in-Publication Data

ISBN: 978-0-367-44336-8 (hbk)

Access the Support Material: www​.routledge​.com​/ 9780367436230

1 Artificial Intelligence: Another Digital Transformation for

11 Brand Visibility Strategies: Displaying a Physical Presence

Further Reading 285

1 Artificial Intelligence: Another Digital Transformation

Interactive Voice Commerce 15

2 Integrated Marketing Communication: Pathways for

3 Marketing Research Methods: Collecting and

4 IMC Objectives and Budgets: Funding Methods and

Budget Calculation Methods 84

5 Segmentation Strategies: Prioritizing Target Groups

Consumer Segmentation Categories 102

6 Creativity Strategies and Advertising: The Storytelling

7 Digital Media Strategies: Owned and Shared

Time Scheduling 172

8 Legacy Media Strategies: Paid Pathways for

9 Sales Promotion Strategies: Motivating Shoppers

Cash Back 229

10 Public Relations Strategies: Earned Media Coverage

Functions of Public Relations 246

11 Brand Visibility Strategies: Displaying a Physical

12 B2B Communication Strategies: Retaining Customers

Further Reading 285

Northwestern University enabled me to discover the world of advertising. I was

My first note of appreciation is directed toward Alexandro Moneta, former Dean

Another expression of gratitude is reserved for Dr. Deborah Goldring, a professor

Dr. Jerome M. Juska is an author, entrepreneur, business executive, international

generation of budgets and calculating the amounts of financial resources needed.

What Is Artificial Intelligence?

Definition of Artificial Intelligence

Figure 1.1 Interacting with Artificial Intelligence

Human and Machine Communication

Figure 1.2 Phases of Data-Driven Marketing

Marketing Technology’s Digital Landscape

Data Synthetic Virtual Reality Facial

Figure 1.3 Marketing Technology’s Future Landscape

Definition of Facial Recognition

Figure 1.4 Biometrics and Facial Recognition

Homes and Office Manufacturing

Transportation Schools and

Figure 1.5 Video Surveillance Locations

There is a sizable amount of information about an individual shopper at a par-

Companies Using Facial Recognition

MasterCard Here is a potential industry disruptor. MasterCard has facial

Privacy Rights and Laws

Biometric Privacy Act Consumers are becoming increasingly concerned about

Interactive Voice Commerce

Voice Assistants and Smart Speakers

Access the Support Material: www.routledge.com/ 9780367436230

Further Reading 285

Interactive Voice Commerce 15

Budget Calculation Methods 84

Consumer Segmentation Categories 102

Time Scheduling 172

Cash Back 229

Functions of Public Relations 246

Further Reading 285

Figure 1.1 Interacting with Artificial Intelligence

Figure 1.2 Phases of Data-Driven Marketing

Figure 1.3 Marketing Technology’s Future Landscape

Figure 1.4 Biometrics and Facial Recognition

Figure 1.5 Video Surveillance Locations

Figure 1.6 Voice Commerce Seamless Experience

Figure 1.7 Text-to-Voice Synthetic Media

Figure 1.8 Virtual Reality and Social Media

Figure 1.9 Starlink Satellite-Enabled Internets