Assignment Sample on MOD004160 AI-POWERED MARKETING DESIGN

1. Introduction

International business management and its growth mainly depend on the huge demand for individuals with an understanding and in-depth knowledge of the global market. The main purpose of the study is to evaluate the contemporary challenges of international business operation along with the cover story of AI-powered marketing.

1.1 Cover story on AI-powered marketing design

AI-powered marketing strategy uses artificial intelligence technology in product design, makes a quality service with automated decision-based economic trends that affect marketing efforts. Moreover, AI handles the narrow tasks of international operation such as digital placements enhances the accuracy of prediction to establish sales forecast and build customer loyalty in service. As an example, the American marketing association conducted a 2020 Deloitte global survey and found that 27% of firms adopted AI-powered marketing strategies to ensure success (Thomas, 2021). There are five critical criteria to implement an AI-powered marketing strategy: innovate the new product and services, enhance product and service range, and develop a strong relationship with customers.

On the other hand, AI-based marketing design has two key dimensions such as task automation and machine learning that helps to establish a broader platform in the international market. The application of task automation executes a sequence of operations that handle complex problems of customers and meet requirements significantly. On the other hand, machine learning is the marketing algorithm that makes complex decisions and drives programmatic online advertisements to influence customers through e-commerce marketing. CRM (customer relationship management) is the most powerful tool of AI-powered marketing strategy that integrates market volume with raising customer awareness and influence with their innovative features in products and services.

1.2 Justification of choosing the cover story

The most international business faces challenges of high competitiveness regarding effective decision-making, effective forecast of sales and production of new products, understanding the cultural differences, foreign policy, product pricing and meeting customer demands effectively. AI-powered marketing is an effective tool that easily enhances marketing potentials through data analytics that classify customers’ choices and introduce programmatic buying facilities globally.

The above figure describes the revenue growth of AI-based marketing that reached around 34.87 billion USD in 2021 that will increase by 126 billion USD in 2025 (Statista.com, 2021). The major applications of AI-powered marketing are robotic processes of automation that reduce human error, natural lingerie processes that reduce cultural barriers in the international market.

1.3 Key issues of AI-powered marketing in customer satisfaction

There are several challenges in international business; however, customer satisfaction plays a major role to achieve success or failure in business. As per the viewpoint of Schlögl et al. (2019), digital content and accurate search engines are relatively affordable that allow a more personalized experience for customers. However, AI provides the most suitable context about the personal preferences, location, weather, and events that influence customers.

The above figure represents the marketing cycle of AI that allows companies to gather more specific customer information that helps to customize products to meet their requirements effectively. On the other hand, Surya (2018) has argued that the international business operation faces regulatory compliance with corporate regulatory policy and measures in production and generates high customer satisfying products to promote organizational growth globally. As an example of application of AI marketing strategy, Amazon, the most popular and successful, retail that improves convention rate accounts for high percentage sales of Olay that hampered the brand’s ability to deliver products seamlessly (Thomas, 2021). The AI assistance is effectively improving customer experience over different geographic areas that integrate into large e-commerce and loyalty platforms.

2. Research and synthesis of international business management

2.1 Key challenges of the international business environment

The international business faced challenges to meet customer demands and the barrier factors were raised from political, social, economic, technology, environmental and legal.

PESTLE analysis

Table 1: PESTLE analysis of international business challenges

2.3 Complex situation in international business areas

The contemporary challenges of business are to implement effective organizational structure, manage performance level by effective HRM, predict budgets, and generate effective financial statements, marketing strategy, and efficient supply chain management.

Organisation Theory

There are four effective organization theories to implement an effective structure and enhance contribution such as neo-classical or human relation theory, classical organizational theory, decision or contingency theory and modern system theory. As per the viewpoint of Auernhammer and Leifer (2019), the organizational theory considers effective business approaches of pattern, plan, and perspectives of business that to be linked with adequate domain structure, behaviour, and cognition.

Modern system theory is effective to import AI-powered marketing strategies that mitigate the management issues through providing analytical and conceptual base systems in business. Modern system theory considers the multilevel and multidimensional approach that efficiently addresses the consequences of business operations such as communication control, and implements man-machine learning. On the other hand, Grothe‐Hammer (2020) has explained that modern system theory elaborates the sociological approaches in the organization that provides an extensive understanding of substantial insights, social phenomena across Meta, macro, and microenvironments in business. It implements the functional organization that is effective for AI-powered marketing strategy concerning sensor system, motor system and modulation system in business analytics.

Supply Chain Management

The SCM is an important contemporary issue is in international management to determine the effective trade practice and arrange it with favourable prices. The transaction cost analysis model is effective to lead the international business challenges within the market throughout the commission paid to the stockbroker, booking a free charge trade, completing a share deals while buying a product (Treiblmaier, 2018). The model is most important to enhance investment and build commodities across a long-distance business that can become more efficient with AI-based technology that generates a key determination of net returns.

On the other hand, CRM is another model of SCM that considers efficient information technology to build a buying lifecycle in international business. The modern SCM and logistic system use CRM software to manage manufacturing, sales force marketing, vendors, customers and determine prediction using mobile-connected tools. Based on the viewpoint of Eyob and Eyob (2019), CRM is a strategic competitive tool that develops B2B (business to business) and B2C (business to customer) relationships that ensure high profit with effective sales rate in the business.

The above figure represents the AI-based solution in CRM that helps logistic operation with different features and applications to reduce cost and improve service in SCM.

Finance and Marketing

The international marketers mostly use the theory of 4p’s marketing that considers major components of price, product, people, and promotion. The contemporary issues of economic instability in international management can be addressed by the digitally AI-powered marketing that customizes messaging, meet consumers’ need with predicting customer analysis. A per the viewpoint of Huang and Rust (2021), AI-based marketing provide systematic guidance that establishes a great connection between consumers and marketers withdrawing a multiple intelligence view from the mechanical thinking to team collaboration.

However, the price strategy of international business is a vital component that boosts competitiveness and effective sale rate throughout high customer addressability (De Bruyn et al. 2020). On the other hand, the charter Jet XO uses a machine-learning-based pricing model that helps to increase EBITDA by 5%, increase the supply of jets with propriety sources (Thomas, 2021). Moreover, the promotional strategy of AI-powered marketing provides programmatic buying opportunities online that access a wide range of customers and meet their requirements within a short time.

The product strategy of AI technology is promoted after considerable research on the customer journey to integrate their engagement through AI-enable bots. The retailer firm Wayfair, a video-powered digital customer platform of Vee24 are using browsing history to understand customer needs and increase engagement in their service effectively.

HRM

The international business faced the challenges of recruiting the right talents and developing effective marketing positions in the foreign and domestic market. The SMAC (social, mobile, analytics, and cloud) model of AI-based marketing strategy boosts the efficiency of HR by balancing organizational efficiency and innovation in products and services (Denis et al. 2020). The HR model is the indicator of technology maturity in the business with improving the value proposition, business model, and workflows to long-term market trends. The first component of the SMAC model is social media that ensures communication within the corporate network, boosts social selling, opportunities promote the products through Facebook, Integra, develops CRM and employer and customer brand loyalty.

On the other hand, Gandhi (2017) has illustrated that mobility refers to the business response with geo-location, electronic signature, and mobile payment through web design strategy or AI-powered strategy of marketing. The analytics and cloud help to access and share data to promote a customer-centric business approach with understanding the cognitive components and affective components of customer behaviour in the international market.

3. Analysis

3.1 Interconnectedness between socio-culture and organizations and institutional context

The cross-cultural management of international business generates effective challenges of communication and expression, differences of influencing and motivating marketer that highly affects work style. As per the viewpoint of Romani et al. (2018), multicultural marketing is a strategic process with an awareness of different dimensions of culture such as social norms, values, religion, language, and living style. Most companies create global competition by exploring the market opportunities, reducing production costs offered by economic integration and trade liberalization.

On the other hand, Hofstede cultural dimensions theory is effective to establish a strong relationship within a diversified workforce and organizational management system. Six effective cultural dimension theories compare a nation based on values, behaviour, belief, and attitude. However, Beugelsdijk and Welzel (2018) have explained that the four effective dimensions play a vital role in international management such as power-distance, masculine vs. feminine, collectivism vs. individualism and uncertainty avoidance index. The rest of two dimensions such a short-term and long-term orientation, Indulgence vs. restraints is effective to empower a diversified workforce to unit factor analysis of a global business.

• PDI (power distance index): The intentional business management focused on the high power distance country to run business smoothly and easily accept the products, services in the local community. However, it can face the challenges of low power distance where the inequality exists among the low and high-status people that make a barrier to the business authority to generate business smoothly. As an example, Signpoor, China, India and Arab countries are high-powered distant countries and the AI-powered marketing strategy can easily lead to a greater influence of digital CRM systems (Hofstede-insights.com, 2021).
• Collectivism and individualism: Collectivism and individualism are the significant cultural dimensions that separate work personality from society. The high score of countries in the Hofstede model refers to a more individualistic culture and that makes challenging the fact of international management. However, Tuckman communication theory is effective to reduce this cultural barrier and encouraging collectivism in the workplace (Jones et al. 2020).
• Masculinity vs. femininity: This cultural dimension is based on the gender role and traits in management. The high core of feminine culture refers to a high quality of life and high scores of masculine culture represent material and competitive success. The AI-powered strategy of marketing can generate equal growth opportunities in international management to establish a fair and bias-free business operation globally.
• UAI (uncertainty avoidance index): The international business firms are faced with high uncertainty regarding rules, regulations, and effective trade practices in business to prevent the unpredictable moments. However, AI-based technology helps to understand trade regulation and avoid unwanted consequences through analytic and cloud-based technologies.

3.2 Systematic understanding and critical awareness of current issues AI-powered marketing in international business

The various international firms use AI-powered marketing to increase productivity and profitability within a short time. However, there are some challenges with a power-hungry algorithm that negatively affects the work efficiency of the organization. The machine learning or deep learning framework of computer power is available with a high-cost price that is an effective barrier for SMEs (small-sized enterprises). As per the viewpoint of Chui et al. (2018), the application of AI affects different management operations by the suitability of available techniques, availability of data, algorithm solution, and its applicability of various techniques. However, customer-facing industries such as retail, mature companies can use these AI-powered techniques to accelerate operational performance that generates potential in SCM and drive corporate performance in the international market. On the other hand,  Markov models are effective in driving data generation and predicting the decisions and behaviours within a large group of people in international management. The model is effectively used in financial management to control the stock price movement in international operation and helps the business firms to move digitally from the traditional business operation.

On the other hand, Kousta and Bellet (2020) have argued that LIME (local-interpretable-model-agnostic explanations) concepts help to elaborate the AI-model transparency and resolve the cross-cultural issues with efficient explanation in the workplace. However, the AI-powered marketing style can be effective through model-agnostic methods that support the internal stakeholders of the organization to be empowered with machine learning and benefits business effectively.

3.3 Relationship between international business management and AI-powered marketing strategy

There are four types of marketing-styles in AI-powered strategy that are categories based on the potential application in international management such as

• Standard along with machine learning app
• Stand-alone task-automation-app
• Integrated machine learning app
• Integrated task-automation app

The AI-powered marketing framework consists of two effective dimensions: intelligence level and technologies that allow companies to integrate business and engage customers within a short time. As per the viewpoint of Huang and Rust (2021), AI marketing brings a fundamental change in the economy and society that allows different sized companies to integrate and globalize business with accurate decision-making, generate great customer service and evaluate opportunities in the new market. Moreover, the application of task automation helps managers to execute a predetermined sequence of business operations concerning given output. As an example, the Facebook manager provides a set of basic information to customers, taking down a decision tree within the customized response that learns from the interaction over time (Thomas, 2021).

On the other hand, the stand-alone application generates a primary channel for marketing to eel, service to make up the local trip for customers and employees beyond those marketing channels. As an example, the IBM Watson’s natural language processing is the most effective AI-marketing app that uses a tone analyser to ensure sales outlets and allows it to connect to order and delivery of customer requirements.

The integrated application of AI-powered marketing handles the entire process of placing and buying an ad through online that easily attract new customers and ensure high engagement in business. As an example of AI-integrated application of marketing, Netflix is the world-leading company of technology and entertainment industry in the UK has integrated machine learning through a menu of offerings to the viewers (Thomas, 2021). The company makes an efficient footprint through AI marketing strategy and automatically establishes position through B2B customer leads business.

3.4 Advantages of using AI-powered marketing in the international business

The AI-powered marketing strategy is majorly considered the stepped approach through simple task-automation and rule-based systems that enhance highly structured processes. In addition, the international firms can offer responsible potential in business operation for an effective commercial return. Based on the opinion of Yang and Siau (2018), AI technology can bring organizational change in sales units in the marketing companies where they can easily perform the intellectual tasks and specialize in flipping buyers. However, the task-automation in marketing is increasingly combined with key data and machine learning from managers to make personalized communication and create decisions that are more complex.

On the other hand, Grewal et al. (2020) have argued that AI technology is a sophisticated personalized system in marketing that develops a patented, innovative, and one-click pondering system. The most advanced features of AI are robotics, chatbot dark web, legacy and in-store technology that helps to organize various components in marketing. However, the AI system has achieved context-awareness in international management by learning-to-learning that is able to complete context-specific responses and idiosyncratic tasks using adaptive histologic. On the other hand, a Deloitte survey in 2020 has evaluated the AI-powered marketing strategy among global enterprises and found that 74% of AI executives agreed with short-time success and long-time benefit in international business (Thomas, 2021).

Apart from that, most of the successful international firms use the AI-based approach of crawl-walk-run to promote customer-facing task automation apps and ensure engagement of them in the service. Moreover, Google, Tesla, Uber, Amazon, and UPS innovation their business model through AI technology that enhanced their competitive advantages and emphasized entrepreneurial mind-set in new product design in new market operations (Lee et al. 2019). Stitch Fix’s clothing-selection  uses the AI powered marketing strategy that helps to create more stylist-curated offers for target customers concerning their self-reported style preference in international marketing management. This model allows the customer to choose products according to their preferences among style shuffle photos that creates a valuable source of new data in marketing.

3.5 Limitation of AI-powered marketing

The main limitation of AI-powered marketing is constraints in the system that comes from the algorithms available to the model and inputs into the model or actions for business driving. Based on the viewpoint of Ernst et al. (2019), the AI systems and marketing app is intrinsically a black box that can hamper user willingness and cannot give any explanation regarding the output. However, the weak AI system impacts human cognitivist that is unable to provide appropriate information by making predictions and detecting the patterns. AI does not care about the workflow distribution among the machine and human tasks that creates massive problems in the workplace management. However, the rule-based chatbots of AI-based customer service can irritate customers and reduce their satisfaction level as the communication bot cannot answer as per the emotional or emptiness of humans. This digital marketing strategy allows companies to use third-party platforms to integrate e-commerce marketing and boost customer loyalty programs. Consequently, AI-application can worry the customers about security, privacy and data ownership issues during buying the products and show a lack of willingness for personal data sharing to the company. As an example of A-limitation, Alexa is the controller of smart devices that seem to be dwarfed by the influence of their benefits with transparency in privacy and security control in marketing operation.

4. Conclusion

The international marketing strategy mainly depends on effective production with low cost and ensuring high quality to increase customer satisfaction level. The cover story of AI-powered technology is effective for the industrial evaluation 4.0 and transforms the market and business management digitally. The AI-powered marketing strategy is effective for the international business management that ensures time management, cost-management, and quality-management in business with a long-term profitability. The core of international business management is customer satisfaction and faced challenges to meet their demands throughout the cultural differences, language barriers and a lack of efficient labour in the international business operation.

Based on the PESTLE analysis on the international business environment and key issues are found the political influences regarding tax and new rules implication, economic barriers for new foreign trading, socio-cultural barriers with a lack of communication strategy. However, the AI technology ensures these barriers and addresses the issues through online business practice that improve social implications of languages through different marketing apps. The contemporary issues of international organizational structure, effective SCM, HRM, and finance and marketing that can be addressed through AI technology with efficient task automation, machine learning, and standard applications.

On the other hand, the Hofstede cross-cultural dimensions theory is effective to reduce cultural barriers in different countries and establish business with customer acceptance. However, there are some limitations in the AI-powered marketing strategy such as security, prophecy risks during the data exchange through buying or selling products to clients and customers respectively. Consequently, the efficient AI application improves CRM and SCM through digitized transactional cost analysis that establishes an interconnectedness of B2B and B2C operations globally. The machine learning process of the AI-based marketing enhances management capabilities through tasks, monitoring performance progress and managing the workforce efficiently. Most leading firms use AI technology to boost profit and gain global competitiveness in the international market in future. The digital edge and competitive marketing can develop through AI-powered marketing and its valuable application in international business management in future.

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