The document discusses how artificial intelligence is transforming marketing from a focus on the traditional 4Ps (Product, Price, Place, Promotion) to S.A.V.EEE (Service, Access, Value, Experience, Engage, Educate). AI is enabling more personalized experiences for customers through recommendations, dynamic pricing, and augmented reality features. While consumer perception of AI is still unclear, companies are increasingly using AI to improve customer service, and AI integration in marketing is already widespread, though humans will still focus on strategy and creative ideas.

1. HOW A.I. IS MOVING
THE 4P’S TO S.A.V.EEE
HUGUES L. REY - OCTOBER 2018

4. What is AI & Machine Learning ?

5. Perception & Understanding of AI is unclear
(6000 interviews by Pega)

6. Marketing in a nutshell …

7. Focus On
Marketing Mix
4P (+/-1968)

8. A.I. Is definitively moving 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

9. A.I. Is definitively moving 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

11. $6 billion on content this year
◦ If it just presented the most popular selections to everyone, many titles would remain unseen.
◦ Wasted content spend, Less time watching Netflix instead of other networks.
Take-rate on top personalized video recommendations was 3 to 4 times higher than the most popular
videos.
◦ Viewers were exposed to 4 times as many videos using personalized recommendations compared to a list of
the most popular titles.
Recommendations = surface niche titles that wouldn't find an audience on a traditional cable
network, but that its viewers love
◦ Save money on its content & maximize the value of inexpensive titles.
Recommendations lead to meaningful increases in overall engagement with the product (e.g.,
streaming hours) and lower subscription cancellations rates.
◦ Higher lifetime customer values and lower revenue volatility.
◦ Retention rates are already high enough that it takes a very meaningful improvement to make a retention
difference of even 0.1%.

12. A.I. Is definitively moving 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

13. Uber: Till 2017 - Prices go up to encourage more drivers to go
online. The increase in price is proportionate to demand

15. A.I. Is definitively moving 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

17. Chatbot for business penetration
is exponential
2016
Regular
Usage
2016
Pilot
2017
Plan
2020
Customer
Service
5% 20% 32% 85%
Source: Gartner / Forrester

18. Marketeer vs Consumer (Source: Pega)

20. Sephora Visual Artist product à
“try on” cosmetic products
Powered by Modiface AI
technology, the Visual Artist can
map and identify facial
features, then use augmented
reality to “apply” the user’s
selected product and shade.
Moreover, it can automatically
apply suggested shades based
on the consumer’s skin tone.

24. In which situations would
you be comfortable with a
company using AI to give
you better customer
service ? (Source: Pega)

25. A.I. Is definitively moving 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

26. A.I.Men – The
Young Pope:
The Papal Artificial
Intelligence

27. Conclusion & Wrap Up

28. Phygital vs Transhuman
28

29. Planning is A.I.
Compatible …
What about
Strategy ?

30. General Conclusions
àA.I. is already integrated in Marketing
àConsumer is not completely perceiving that reality
à We (Human) + A.I. = 3
à Let’s Human Concentrate on Strategy and
Creative Big Idea
à Test now is a must – Full productivity is about 10
Years

31. hugues.rey@havasmg.com
@huguesrey
+ 32 496 26 06 88
www.huguesrey.com
www.iamartificial.com
THANK YOU
FOR
YOUR ATTENTION !