Module 5
Module 5
Module 5
AI–Powered Market Research
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Part 1: Introduction to AI in Product Management
Module 1: Introduction to Product Management
Module 2,3 & 4: Role of AI in Product Management
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Part 4: Category Management and Customer Analysis using AI
Module 15: Market And Category Analysis with AI
Module 16: AI Tools for Customer Segmentation
Module 17: Personalization Engines using AI
Module 18: AI in Omni-Channel Customer Engagement
Module 19: AI Driven Customer Journey Mapping
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Part 7: Developing AI-Enhanced Product Strategy
Module 30: Strategic Planning with AI Insights
Module 31: Positioning and Differentiation using AI
Module 32: AI in Brand Management
Module 33: Product Lifecycle Management with AI
Module 34: Case Studies on AI in Product Strategy
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Part 11: AI in Promotion, Advertising and Distribution
Module 50 & 51: AI-Powered Advertising
Module 52: AI in Channel Management
Module 53 & 54: Distribution Optimization using AI
Part 13: Ethical Considerations and Future Trends in AI for Product Management
Module 59: Challenges & Ethical Considerations
Module 60: Future Trends in AI for Product Management
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Part 2
AI-Powered Market Research
MODULE 05
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MODULE OVERVIEW
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Role of Marketing Research in Product Management
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Introduction to AI in Marketing Research
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Overview of AI in Marketing Research
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Applications of AI in Market Research:
Sentiment analysis:
▪ AI-powered sentiment analysis enables market researchers to analyse the
emotions, opinions, and attitudes expressed in large volumes of text data,
such as social media posts, customer reviews, and survey responses.
▪ Natural Language Processing (NLP) algorithms
categorize the sentiment as positive, negative, or
neutral, providing valuable insights into customer
perceptions and preferences.
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Applications of AI in Market Research:
Sentiment analysis:
Example: Cosmetics businesses can use AI in market research to quickly
analyse thousands of social media posts to gauge customer sentiment
towards their latest product launch, allowing them to make informed
marketing decisions and improve their product.
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Applications of AI in Market Research:
Predictive analytics:
▪ AI algorithms can analyse historical data, identify patterns, and
make predictions about future market trends and consumer
behaviour.
▪ Predictive analytics helps market
researchers forecast demand, optimize pricing
strategies, and make informed decisions about
product development, marketing campaigns, and
inventory management.
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Applications of AI in Market Research:
Predictive analytics:
Example: eCommerce retailers can analyse historical customer
data, market trends, etc. to accurately forecast future demand
for products and optimize marketing campaigns.
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Applications of AI in Market Research:
Consumer segmentation:
▪ AI-driven market research clustering algorithms group consumers
into distinct segments based on similarities in their demographics,
behaviours, and preferences.
▪ Market researchers can then tailor marketing
strategies and messages to each segment,
improving campaign effectiveness and enhancing
customer targeting efforts.
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Applications of AI in Market Research:
Consumer segmentation:
Example: Fashion brands can analyse diverse data sets to identify
distinct customer segments based on demographics, behaviours, and
preferences, enabling them to tailor marketing strategies and create
personalized experiences.
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Applications of AI in Market Research:
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Applications of AI in Market Research:
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Applications of AI in Market Research:
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Applications of AI in Market Research:
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Applications of AI in Market Research:
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Applications of AI in Market Research:
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Applications of AI in Market Research:
Demand forecasting:
▪ AI-based demand forecasting models leverage historical sales data, market
trends, external factors, and even weather patterns to predict future
demand for products or services.
▪ Accurate forecasting helps organizations optimize
inventory levels, production planning, resource
allocation, and reducing costs. It also helps boost the
customer experience, by reducing delivery times and
ensuring there is always stock for popular items.
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Applications of AI in Market Research:
Demand forecasting:
Example: A consumer electronics company can use it
to balance the demand for products based on
historical sales data, market trends, and external
factors (like chip shortages). This allows them to
optimize warehousing and supply-chain costs while
maintaining suitable inventory levels.
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Applications of AI in Market Research:
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How AI Can Enhance Market Research
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How AI Can Enhance Market Research
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How AI Can Enhance Market Research
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How AI Can Enhance Market Research
Sentiment Analysis:
▪ AI tools such as Insight7 can analyze qualitative data from interviews
or social media to extract sentiments and themes, providing deeper
insights into customer opinions.
Predictive Analytics:
▪ AI algorithms can analyze historical data to
identify trends and predict future market shifts,
helping businesses stay ahead of competitors.
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How AI Can Enhance Market Research
Competitive Intelligence:
▪ Platforms like Crayon provide real-time insights into competitor
activities, aiding in strategic decision-making.
Natural Language Processing (NLP):
▪ Tools like ChatGPT facilitate conversational
analytics, enabling researchers to generate
insights from unstructured data sources such as
interviews or focus groups.
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Data Collection Using AI
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Data Collection Using AI
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Competitive Analysis Using AI
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Competitive Analysis Using AI
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Competitive Analysis Using AI
Key Features:
Automated Data Collection
AI tools can continuously collect data from various sources, including
social media, websites, and news articles, providing up-to-date insights
into competitor activities.
This process not only saves time but also enhances
the accuracy of insights, allowing marketers to make
informed decisions.
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Competitive Analysis Using AI
Enhanced Insights:
AI processes large datasets to identify trends, consumer sentiment,
and competitor strategies, enabling businesses to make informed
decisions. Some of its benefits are:
▪ Improved accuracy in understanding market
dynamics.
▪ Faster response times to competitive actions.
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Competitive Analysis Using AI
Product Analysis:
AI tools can assess competitors' product features, pricing models, and
customer feedback to pinpoint strengths and weaknesses. By also analyzing
competitors' marketing campaigns and sales strategies, businesses can
effectively benchmark their own performance.
This analysis enables organizations to refine their
product offerings and optimize marketing strategies by
leveraging deep insights into competitors' strengths,
gaps, and market positioning.
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Competitive Analysis Using AI
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Competitive Analysis Using AI
Forecasting Capabilities:
Predictive analytics powered by machine learning
algorithms can forecast future market conditions
based on historical data and current trends.
This allows businesses to anticipate changes in
consumer behavior and adjust strategies
accordingly.
Real-time insights help organizations adapt quickly
to market shifts, ensuring they remain competitive.
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AI-Driven Customer Behavior and Market Segmentation
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AI-Driven Customer Behavior & Market Segmentation
AI in Customer Profiling and Behavior Prediction:
Definition: Customer profiling involves creating detailed descriptions of
different customer segments based on their behaviors, preferences,
and demographics.
AI Applications: AI models analyze historical data to predict future
behaviors, such as purchase intent or likelihood to churn.
Benefits: Enhanced customer profiling leads to
improved targeting, increased customer loyalty, and
more effective marketing campaigns.
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AI-Driven Customer Behavior & Market Segmentation
Using Machine Learning for Market Segmentation:
Definition: Market segmentation is the process of dividing a broad
consumer or business market into sub-groups based on shared
characteristics.
ML Techniques: Algorithms like k-means clustering
and decision trees are used to analyze large
datasets and identify distinct customer segments.
These techniques can uncover hidden patterns that
traditional methods might miss.
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AI-Driven Customer Behavior & Market Segmentation
Using Machine Learning for Market Segmentation:
Benefit:
By segmenting customers more accurately, businesses can create
tailored marketing strategies that resonate with specific groups,
improving engagement and conversion rates.
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AI-Driven Customer Behavior & Market Segmentation
Personalization at Scale Using AI:
Targeting the Right Customer Segments, AI enables dynamic
content generation and product recommendations based on
individual customer behaviors. For example, e-commerce
platforms use AI to analyze browsing history and previous
purchases to suggest relevant products.
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AI-Driven Customer Behavior & Market Segmentation
Predictive Models:
These models forecast customer behavior by analyzing data such
as purchase frequency, product preferences, and cross-selling
opportunities. This allows businesses to engage customers with
personalized offers at the right time.
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AI-Powered Product Development Insights
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Leveraging AI to Identify Product Opportunities & Gaps
Market Analysis:
▪ AI tools analyze vast datasets to identify market trends and consumer
needs.
▪ By processing data from various sources, such as social media, customer
feedback, and sales data, AI can highlight unmet needs or emerging trends
that may present new product opportunities.
▪ For example: Netflix use AI to analyze viewing habits
and preferences, allowing them to develop original
content that caters to specific audience segments.
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Leveraging AI to Identify Product Opportunities & Gaps
Opportunity Identification:
▪ Machine learning algorithms can uncover patterns that suggest
potential gaps in the market.
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Leveraging AI to Identify Product Opportunities & Gaps
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Leveraging AI to Identify Product Opportunities & Gaps
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Starbucks' Use of AI and Predictive Analytics
Overview:
▪ Starbucks has revolutionized its customer engagement and marketing
strategies by leveraging AI-powered predictive analytics and customer data
from its loyalty card program.
▪ By collecting and analyzing vast amounts of customer
data, Starbucks is able to make data-driven decisions
to enhance customer experience, optimize product
offerings, and increase sales.
▪ This case study explores how Starbucks integrates AI
and predictive analytics into its marketing research
and product management.
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Starbucks' Use of AI and Predictive Analytics
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Starbucks' Use of AI and Predictive Analytics
Personalized Promotions:
▪ Starbucks uses predictive analytics to create personalized marketing
campaigns based on individual customer behavior.
▪ By analyzing loyalty card data, Starbucks can predict what a customer is
likely to buy next and send personalized offers through their mobile app,
email, or in-store notifications.
▪ For example, if a customer hasn’t visited for a few
weeks, Starbucks might send them a special offer to
encourage a return visit, such as a discount on their
favorite drink.
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Starbucks' Use of AI and Predictive Analytics
Customization:
▪ With the help of AI, Starbucks tailors its menu to match customer
preferences and local trends.
▪ By analyzing loyalty card data, Starbucks identifies popular products and
trends within specific regions or stores.
▪ Predictive analytics helps Starbucks optimize its
product mix by determining which items to promote or
introduce in certain locations, and which items might
need adjustments or removal from the menu.
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Starbucks' Use of AI and Predictive Analytics
Inventory Management:
▪ Predictive analytics is also applied to Starbucks’ inventory and supply chain
management.
▪ By forecasting demand for specific products, Starbucks ensures that stores
are stocked with the right ingredients at the right time, minimizing waste
and maximizing efficiency.
▪ For instance, Starbucks can predict that more iced
beverages will be sold during the summer and adjust
its inventory accordingly to ensure availability across
stores.
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Starbucks' Use of AI and Predictive Analytics
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Starbucks' Use of AI and Predictive Analytics
Key Takeaways
▪ Starbucks’ Success with AI-Driven Marketing Research showcases the
transformative role that artificial intelligence can play in marketing
research.
▪ By leveraging customer data to predict behavior,
personalize marketing, optimize product offerings,
and improve inventory management, Starbucks
has strengthened its competitive edge and
deepened customer loyalty.
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Starbucks' Use of AI and Predictive Analytics
Key Takeaways
▪ This case study exemplifies how AI can enhance decision-making
and strategic marketing in the product management lifecycle.
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Conclusion
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Conclusion
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References
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Thank You
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