Journals Proceedings

Abstract

Internet of Things (IoT) is predicted to be one of the main raising megatrends in technology. Combined with current and expected ubiquity and pervasiveness of connected smart devices it gives ground to application in many areas, including marketing. Potential of sensors and actuators for context relevant, personalized, real-time, interactive communication with consumers and shoppers is seen as a driver of traffic and transaction, facilitator of movement along the path to purchase, able to enhance their experience. At the same time, they can serve to improve logistics and infrastructure for more effective retail business and store management. This paper reviews and organizes potential applications of IoT technologies and solutions for effective marketing at retail from the angle of manufacturers and retailers as well as from the angle of consumer/shopper facing or infrastructure and process related initiatives. We propose a model that indicates the potential that IoT has vs standard industry practices of marketing and retail to drive business results and competitive advantage. Proposed model is applied on multiple industry examples. With theoretical framework and practical examples, the paper provides relevant theory and managerial implications of IoT in marketing and retail.