Block chain for dummies

1. Block chain Technology as a
veritable tool for value
oriented marketing
TEMITAYO TIJANI

2. BLOCK CHAIN TECHNOLOGY A GROUND
BREAKING PHENOMENUM OR MERE
TECHNOLOGY
• Block chainTechnology is a massive, highly decentralized, global
distribution ledger that keeps a record of transaction that occurs
across a fully distributed or peer to peer network either public or
private. Essentially, it creates a business network in which members
exchange items of value through a ledger which each member
possesses and whose content is always in sync with the others. No
central authority controls the ledger and no one can game the
system.
• The essential features of block chain technology are that it creates a
timestamped public ledger, verified by multiple users and encrypted.
It is a very secured system for transaction management.

3. Why is Block Chain Technology Important
• Experts believe that “the basic mechanisms of how people and organizations execute
transactions with one another have not been updated for the 21st century”.They further
believe that block chain technology is the revolutionary tool that could bring to those
processes the openness and efficiencies we have come to expect in the internet era.
• As we move into the post millennial phase of marketing, with increased emphasize on
meeting consumer need and wants as against just producing, Block chain technology
facilitates a more robust relationship between marketers and consumers. It gives parties
to a consumer transaction the abilities to have control and say over what they do and
how it is done.
• As the internet continue to dominate our lives privacy concerns remain significant and
demands for safeguards remain unattended to largely because of the sale value of
information or big data gathering. Block chain technology with its complex cryptic
system ensures that only information that people are willing to give are obtained.

4. RELEVANCE OF BLOCKCHAIN TECHNOLOGY TO MARKETING
• According to Pierre Berthon, the future of the marketing industry will have marketers having direct ongoing
relationships with their ultimate consumers.This utopia posits the absence of a central authority (gate keeper) who
renders intermediation for a fee. Block Chain technology with its complex system of records can thus help reduce the
incidence of intermediation by creating the requisite trust necessary for direct dealing between sellers and buyers. For
example, successful central authorities like Facebook, PayPal and Google act as middlemen between advertisers who
want clicks (sellers) and buyers, these intermediation how becomes unnecessary where sufficient trust is established
between the parties and the gatekeeper cost is thus extinguished.
• Block chain can also help manage the resulting billions of consumer relationships and trillions of transactions resulting
from lack of intermediation. An instant example, in the music industry acute challenges relate to the way in which digital
content can be copied and freely distributed.This is because the industry is traditionally highly intermediated, Block
chain technology can thus be used to manage the incidence of royalty and licensing.
• AD FRAUD-AD Fraud is endemic and costs advertisers over 7 Billion dollars in 2016. Only about 50% Ad clicks are real. It
is virtually impossible to publicly track, verify and certify.The block chain will allow for greater scrutiny of who is clicking
an Ad and who is seeing it. Solving it could boost communication effectiveness or online ad by 7 Billion.
• DATATHEFT PREVENTION –With democratization comes the burden of data breaches. Data about us can now be
legally gathered about our intimacies, operations and lifestyle either consciously or otherwise.Thus and as paranoia
increases, it is natural that people increasingly demand a guarantee that the confidentiality of their activities be
protected. Here comes Block chain with its capacity to allow people prove they are real in a way that does not require
giving away personal details that could be subject to data breaches.
• Tracking Counterfeit Products –The proliferation of counterfeit products remains a huge problem for commerce and in
supply chain management. Block chain technology with its peer to peer marketing potentials has the capacity to
monitor the transmission of product from supplier to consumer.

5. UNEXPECTED SIDE EFFECTS
• Block chain technology can be considered an emersion phenomena with the capacity to bring
radical and profound changes to the way consumer and society behave.
• Block chain technology when proliferated will bring a whole new “trust factor” into transactions
and interactions.This trust factor will take the traditional concept of trust as we know it to a new
level. Block chain will bring a new way to facilitate transactions.
• The use of block chain technology in marketing will put existing intermediate companies in a
defensive mode since its intended to take over their role in transaction and interaction services.
• Another unexpected consequence of the application of block chain technology to marketing is
that it, like other automated processes, diminishes the human involvement in marketing
activities. Using the music industry as an example, the use of smart contracts to regulate
agreements between artists, promoters and consumers ensures the unlikely involvement of
lawyers in such transactions.
• Given the complexity of block chain technology, there is likely to be much misunderstanding
about its emergent trajectories. Furthermore, it will take a long time for marketers to discern the
full implication of the block chain technology and its relevance to marketing processes. Facebook
and Google and other intermediators whose implications are currently more obvious will continue
to dominate.

6. REFERENCES AND LINKS
• What is Block chain-http://www.ibm.com/blockchain/what_is_blockchain.html
• ConsumerTechnology:Why Marketers Sometimes Get it wrong by Pierre Berthon;
California Management ReviewVol 48, No 1.
• What is Block chain and what is its impact on marketing?-
https://www.businessesgrow.com/2016/07/20/blockchain-101/
• Marketing Myopia byTheodore Levitt NBR 1960
• Will Block chain Put Consumers In Charge Of Ad And Marketing Industry?- By Dave
Morgan http://www.mediapost.com/publications/article/278391/will-blockchain-
put-consumers-in-charge-of-ad-and.html
• How Blockchain technology will transform digital marketing by Robert Allen-
http://www.smartinsights.com/managing-digital-marketing/marketing-
innovation/blockchain-technology-will-transform-digital-marketing/

7. # The true hope of peer to peer marketing lies not
in social media but in block chain technology. This
is not to say the social media will die; it will only
become unprofitable to run#
• https://youtu.be/kP_dOGNtraA