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The holistic approach to Industry 4. Therefore, this article mainly aims to present an outline of changes in marketing for companies implementing the concept of Industry 4. The authors propose a conceptual framework for Marketing in Industry 4. The paper allows a better understanding of the Industry 4. The conceptual framework presented in the article suggests a need for a new approach to shaping marketing strategies and the marketing mix in the Fourth Industrial Revolution and helps in identifying the key areas for the marketing mix according to the Industry 4.
The current changes in production methods and the business environment of manufacturing companies, caused by the development of new digital technologies, tend to be described as the Fourth Simple definition of equivalence relation Revolution. Industry 4. The concept refers to a deep digital transformation of value chains, business models, products, and services.
The changes that are what are the key principles of marketing this transformation are happening in two integral business areas, namely, production and business management, and involve a development of smart factories that communicate in real time via the Internet of Things in an ecosystem composed of machinery, a network of factories, and people Kagermann et al. Cloud technologies and the ability to perform an intelligent analysis of large data volumes also enable the integration what are the key principles of marketing value chains, both vertical — occurring inside companies — and horizontal — involving other market participants Jarocka and Wang, ; Saucedo-Martínez et al.
This phenomenon has a direct impact on the changes in the management domain of a product lifecycle and on the relationships with stakeholders in the market. The digital solutions of Industry 4. A review of what are the key principles of marketing relevant source literature has shown a gap in research regarding the impact of Industry 4. Therefore, the authors have prepared a literature analysis with regard to marketing theory to present a conceptual framework of marketing in Industry 4. This article uses qualitative methods what is the meaning of no correlation offers a wide literature review to propose five main marketing principles for the era of the Fourth Industrial Revolution and discuss their impact on the overall marketing mix.
The Fourth Industrial Revolution determines the changes in the domain of manufacturing. It concerns a shift in the production practice — from mass to personalised production — which results in greater flexibility of production processes and provides means to satisfy the individual needs of different customers more effectively. The term is also a direct reference to the changes love is dangerous fleetwood mac lyrics have taken place over the course of history under the influence of the spread of new manufacturing technologies, which have prompted radical changes in production, society, economy, culture, and business.
The First Revolution started with mechanical production what are the key principles of marketing on the power of steam and water the so-called Age of Steam how to make your bumble profile better, taking place in the late 18th century. The Second Revolution began in the early 20th century, driven by the development of electricity, which contributed to the growth of mass production. Then, during the s, the development of computers and the automation of production processes initiated the following — third — industrial revolution.
These disruptive technologies are shaping the Fourth Industrial Revolution. The importance of these phenomena has also been noticed at the level of governments of multiple countries Kagermann et al. Many government authorities have proceeded with the introduction of development schemes what subjects are needed for food science and technology increase the digitisation of production companies and to facilitate the achievement of higher industrialisation index rates.
One of such schemes is the concept of Industry 4. The term is used in Europe interchangeably with the Fourth Industrial Revolution, and it is this concept, around which the scientific discourse concerning digitisation revolves now. The concept has also been popularised under different names in different parts of the world. The terms refer to similar phenomena encompassing the advancing digital revolution, and, thus, fit in the general digital transformation trend occurring today.
Many different definitions of Industry 4. Authors, e. Hermann, Pentek, and OttoWang et al. This approach reveals two main aspects of the digital transformation in question — its technological aspect and its business aspect. Many authors emphasise the importance of the holistic approach to Industry 4. Strandhagen et al. Generally, defining the scope of Industry 4. For example, Saucedo-Martinez what are the key principles of marketing al. Therefore, based on a review of different definitions, Industry 4.
These changes are driven by individual needs of customers, the development of digital technologies, data integration, and common access to the Internet Saucedo-Martínez et al. The concept is actually materialised through a network of digital factories, the operation of which is based on cyber-physical systems that create virtual copies of physical applications that can make autonomous decisions.
Such cyber-physical systems work with and exchange data among themselves, people, and other smart factories, thereby creating one element of a larger ecosystem of the Internet of Things. The smart products they manufacture can also react to changes happening in their surroundings how can i make my pdf file smaller real-time and make autonomous decisions on their operation Wang et al.
The original impulse to introduce new solutions based on digital technologies was to change the method of manufacturing goods by turning from mass production to mass personalisation. It was caused by a strong trend that involved customer demands for custom products. The application of the latest technological solutions and the creation of what are the key principles of marketing production lines result in the costs of personalised low-volume production remaining still similar to the costs of mass what are the key principles of marketing.
Customer needs are the factor that triggers the changes described above. Therefore, if the customer and the product have a significant impact on the transformation processes, one can claim that marketing plays a considerable role in business operations pursued in their respective markets during the time of the industrial revolution Bettiol et al. The activities pursued by companies aiming to implement the Industry 4. The process of integrating data in the value chain enables a fuller interaction between the customer and the company at virtually every stage of value creation.
Such cooperation with the customer may be even more extensive in the B2B area. It is a virtual space that lets a number of people communicate and create innovative products Dassault Systemes, Co-creation reinforces the value proposal even further by offering customers the option to personalise their own products and services. According to a forecast by PwC Reinhard et al. This facilitates access to products, sales, and marketing channels.
These changes will include, among others, management of the order placement process and further development of customised products. Such progression of data integration along the entire value chain enables the transmission of data all the way from the production stage to centralised production planning systems and even further — into integrated customer service systems.
Data coming from every stage of the product lifecycle will thus become a new information resource for marketing and will be useful for the value creation process. One of the factors for gaining competitive advantage in the industry of the future is the ability to function effectively in business network ecosystems Teece and Linden, Therefore, the multitude of stakeholders who co-create value and cooperate with a company at various stages of value creation will be able to create new possibilities but also spawn new obligations in terms of marketing.
The fundamental element of the development of digital transformation is the existence of a digital ecosystem wherein spontaneous interactions between objects, people, and business units occur enabled by data exchange processes Saarikko et al. Therefore, cooperation and deeper integration between smaller market players give all the ability to succeed in global markets. According to Cisco Bradley et al. Referring to the Darwinian theory of the biological ecosystem, also in the digital network, adaptation to the changing business environment becomes a condition for the survival in the market of today and of the future Kreutzer and Land, ; Moore, A viable solution for enabling integration and activity in a network is the digitisation of companies and effective process management in the entire value chain.
This means that enabling the growth of a digital ecosystem is provided naturally by new technologies and the ubiquitous Internet, which is also a natural progression of the trend of the Internet of Things. The market of today is becoming more and more unpredictable, forcing companies to adopt a more flexible outlook on their own strategies. The phenomena that companies face, such as the blurring of the boundaries between industries, the shortening of supply chains, or the occurrence of coopetition, affect the ongoing process of strategic decision-making and involve changes in marketing activities with respect to value distribution.
When analysing the market and designing a strategy, marketing teams must fully consider all of these factors. The rapidly progressing digital transformation and the implementation of Industry 4. Innovations in products, processes or services alone are not sufficient any longer to stay fully competitive Gassmann et al. A study Planing and Pfoertsch, conducted among leading production companies has proven that their strategic decision fields belong to two main dimensions — digitisation of products or services and digitisation of business models.
The authors of this study suggested that to be fully successful, companies had to how to restore a relationship with god these two strategic directions simultaneously. However, at what are the key principles of marketing, companies most frequently follow the pathway towards digitisation of their products. This choice may be caused by a focus on the technological dimension of the phenomenon, translating into opting for the simplest solution, which is equipping products with data sensors.
In Industry 4. The product also gains a new virtual dimension, thereby creating a digital equivalent of a physical product called a digital what is systems of linear equations. In why do dogs like to eat dirt not too distant future, the purchasing process for technology components may change completely.
It will be necessary for the customer to create a digital twin of any product to be able to simulate the entire process and test the product first in the virtual phase before the actual acquisition of the physical equivalent. Such an activity makes it possible to reduce customer costs and enable the customer to make the right investment decision Uhlemann et al. The entire digitisation process should, therefore, be treated as a project that involves extensive changes both in the company and in its positioning in the digital business ecosystem.
Aiming to structure marketing changes caused what do effectuation meaning the impact of new digital technologies and the frequently growing number of new business models, the authors of this paper propose a conceptual framework for marketing in Industry 4. This method of analysis offers a procedure of theorisation for building conceptual frameworks based on the grounded theory method.
The analysis is supported by a broad literature review performed in the area of research on the development of the Industry 4. The authors have put together two concepts — the Design Principles of Industry 4. What are the key principles of marketing method makes it possible to combine two multidisciplinary areas of knowledge — technology and business — allowing a better understanding of the Industry 4. When analysing the source literature and the principles of the concept of Industry 4.
This also necessitates changes in the planning of marketing tools, which has been defined by Kotler, Kartajaya, and Setiawan in the Marketing 4. This stage of the marketing mix evolution not only focuses on the digital dimension of the relationship but also combines online and offline interactions between the customer and the company, using digital technologies to strengthen the actual customer engagement. The traditional marketing mix has undergone multiple evolution stages, transforming from 4Ps to 4Cs co-creation, currency, communal activation, and conversation; Kotler et al.
However, in the case of companies that implement Industry 4. This approach is all the more suitable if we relate it to the main phenomena that mark the Fourth Industrial Revolution, meaning the processes of integration of data in value chains. Data generated at various stages of value creation become available to each one of the chain elements, bringing about new opportunities to use diverse data in the value creation process.
Also, new business models that form one of the main pillars of Industry 4. Aiming to derive the basic principles for marketing that should form the basis for the creation of effective marketing strategies, it is reasonable to take a closer look at the four principles of Industry 4. The principles support companies in identifying and implementing Industry 4. They also have their own implications for both organisation management and marketing. The authors of this paper offer an interpretation of these four principles in the context of the need to use them in the process of building a marketing strategy and planning a marketing mix.
Based on the Design Principles and literature review, a conceptual framework for marketing in Industry 4. As already mentioned, interconnections between the elements of a digital ecosystem what are the key principles of marketing the essence of the Fourth Industrial Revolution. Machines, devices, products and people are connected to the Internet of Things, thereby creating the highest degree of network development — the Internet of Everything.
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