CollectiveIntelligenceforDigitalMarketing.pdf



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Journal of Business and Technovation (ISSN: 2414-245X)
Vol. 3(3), 2015, pp. 194-203
http://www.jotonline.net

________________________________________________________________

Collective Intelligence for Digital Marketing
Hilalah Al-Turkistani and Tanzila Saba*
College of Computer Science & Information Sciences,
Prince Sultan University, Riyadh, Saudi Arabia.
*Contact author

Abstract
This paper presents a comparative analysis of recent studies carried out in the context of
digital media and collective marketing. The studies are diverse in the sense that they present
collective and collaborative approach to marketing in different industries and for different
products. The paper would present the main ideas contributed by the researched articles
together with our observations and analysis. These studies present different managerial
implications associated with the personnel hard work. By analysing our findings, we expect to
know more about different firms that are adopting an open current innovation strategy, both
systematically and deeply. We hope that this research can help organizations to generate and
identify exceptionally good innovative ideas at much lower costs and high productivity.
Keywords: Collective intelligence, Digital marketing, E-commerce and Data analysis
Introduction
Digital marketing, in specific terms, is
referred to the marketing of brands or
products by means of one or multiple forms
of electronic media. Digital marketing is the
revolutionized form of the conventional
marketing as it demands the employment of
methods and channels which facilitate any
company in analysing the marketing
strategies and understanding what is
operational while what is not. Such things
are monitored by the digital marketers as;
what is being viewed, for how long and how
often, sales conversations, and more. One of
the mainstream techniques employed by the
marketers for pursuing successful and
effective digital marketing is collective
intelligence. Collective intelligence is

basically group or shared intelligence which
materializes as a result of competition,
collective efforts, and collaboration several
people and is employed for decision making
of businesses and organizations as shown in
Fig 1.

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Analysis of Current approaches: State
of the Art
In this section we present state of the art
research in the field of collective
intelligence. Table 1, covers latest research
contributions from variant aspects in the
same domain. The work presented in [1]
focuses on collective and collaborative
approach to marketing various brands
through social media websites that are quite
Research Focus
Big social media data
mining for marketing
Intelligence [1]

Improving marketing
forecasting
through
Collective
market
intelligence [2]
Benefits, Challenges,
and
Enabling
Conditions
of
Collective Action to
Promote Sustainable
Production
and
Marketing of Products
from Africa’s Dry
Forests [3]
Producers’ Perception
of Collective Action
Initiatives
in
the
Production
and
Marketing of Kola in
Cameroon [4]
Social media: their
role as marketing tools
in B2B Marketing [5]
Collective
Intelligence:
Capitalizing on the
Crowd [6]

effective. It is justified by presenting that
inference derived through collective
intelligence is less biased as it takes into
consideration all users across every
category. Also, it has been established that,
the inference derived through this approach
facilitates the discovery of unforeseen
differences in the collaborative opinionanalysis behaviour of user populaces from a
number of areas.

Findings and Results
Employ optimized techniques and methods to build a predictive user model for
identifying targeted users for online advertisement.
1. Incorporate syntactic, semantic, and context information from texts and
network information from historical social activities to improve social
identification.
2.Comprehensive set of techniques that span multiple views of data
3. Automated computational framework of ranking social entities under big data.
Study makes contributions of:
1.Literature on open innovation contests in online markets
2. Use of online contests in practice.
Small scale organizations use of effective marketing through collective
intelligence :
1.Promoting forest products collection
2. Marketing practices that benefit small-scale producers in Africa’s dry forests.

Two groups of farmers analyzed to evaluate the benefits of collective action of
Kola in Cameron:
1. Majority has a positive perception
2. Minority group viewed negatively.
Differentiated strategies have to be used in order to reach out to the two groups in
promoting collective action for effective market entry.
Based on three large B2B organizations,
1.Motives: relationship and trust building ,identifying potential partners.
2.Barriers: lack of resources and skill.
1.Prediction markets: organizations need to inform individuals of the relevance
and accuracy of their predictions and provide clear understanding of how the
organization uses these predictions to improve business decisions.
2. Analytics required to structure the associated recognition, rewards and
reputation systems, the underlying valuable, contextual information.

195

Journal of Business and Technovation (ISSN: 2414-245X)
Vol. 3(3), 2015, pp. 194-203
http://www.jotonline.net

________________________________________________________________

The recording industry
and
grassroots
marketing: from street
teams to flash mobs
[7]
Growth of collective
intelligence by linking
Knowledge workers
through social media
[8]
A Business Educator’s
Guide
To
Transitioning to a
Digital Curriculum [9]

International
marketing: application
of
marketing
Intelligence
and
knowledge
management
for
sustainable
Growth
[10]

From ‘collective intelligence’ to ‘participative stardom’. Collaborative
construction of a transmedia creating and spreading a brand of music stars.

Questions have to be answered for any business activity to build suitable
collective intelligence system for the desired goal, can support the success of :
1.Social network
2. Stimulate the growth of collective intelligence.
Digital convergence has brought together many previously independent business
functions under its technological umbrella. These three departments often work at
cross-purposes with each other having its own goals.
1.Finance & management
2.Information technology
3.Creative functions & marketing.
Knowledge management and marketing intelligence playing a predictable role for
the business organizations global world.

Table 1 State of the art research in digital marketing through collective intelligence.

The proposed model [1] of collective
intelligence entails the collaborative
assumption of social brand reputes on the
basis of large scale consumer behaviours.
The positivity of consumers on social
media websites may be evaluated by the
use of this approach together with the
brand reputation for every brand, primarily
emphasizing on the brand side. However,
analysis may be conducted on the user side
for the order of acquiring some helpful
nearness. Appropriate marketing strategies
may be chosen for on the basis of gender,
work, social interests, etc of the social
consumers as depicted in Figure 2.

Fig 2. Collective intelligence resources
The development as well and management
of novel products are essential for the long
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Journal of Business and Technovation (ISSN: 2414-245X)
Vol. 3(3), 2015, pp. 194-203
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________________________________________________________________

standing efficiency and success of a
company. The mentioned areas in [2] are
those where companies usually require
improvement their performance. The two
major decisions regarding novel products
include the selection of novel ideas and
computing their prospective market
demand and potential. Consumer and
market forecasting is a crucial task to
support the two mentioned decisions. As a
piece of misfortune, forecasting is an area
where companies usually strive for
acquiring proficiency. This study, in the
situation of this background in the
marketing research for developing
intelligent, real time, and better decision
support tools for helping resolve the issues
of big data era and promote enhanced
forecasting of users’ demands. The
technology platform of prediction market
conveys two categories of information; the
backdrop information which sets out a
minimum shared information baseline for
every participant; and the capability for the
participants for the order of viewing
collaborative predictions that other
participants make in real time. In order to
model the way prediction markets operate,
distribution is defined in the study as
participants employing information shared
in the system for the order of making and
updating their predictions. Collective
information is shared by the market
mechanisms by means of which the private
information is transferred to less
knowledgeable
informants
from
knowledgeable informants. In this way, the
participants that are less informed learn
from the ones that are more informed

which in lead to the establishment of
smarter markets.
The study
[3] presents that the
nongovernmental organizations as well as
the government identify collective
intelligence approach to marketing as a
means for improving the bargaining power
of the smallholder farmers as well as their
access to output and input markets.
Supporting
collective
intelligence
measures and actions, in several
developing markets, has and continues to
be a significant instrument for policy. This
study contributed in presenting the way
collective intelligence by means of formal
manufacturing firms may be employed for
the purpose of promoting responsible
collection as well as marketing of forest
products,
which
profit
small-scale
manufacturers in the dry forests of Africa.
The results reported in [3] study indicate
several benefits of using the collective
intelligence approach to marketing,
illustrating them with examples of the case
studies
presented.
Small
scale
organizations face a number of barriers to
effective marketing. They have a rather
constrained access and the associated
transaction costs undercut the qualities
derived by the smallholders from the
market prospects. Their decreased capacity
of meeting market demands destabilizes
the potential of small scale manufacturers
from market prospects. Also, there is a
decreased capability of people to negotiate
with the service providers and buyers in
case of small scale organizations. In
addition, there is a lack of knowledge and
capacity for responding to the market
prospects. Against all these barriers faced
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Journal of Business and Technovation (ISSN: 2414-245X)
Vol. 3(3), 2015, pp. 194-203
http://www.jotonline.net

________________________________________________________________

by the small scale organizations, the
collective intelligence approach imparts
benefits like enhanced access to market
information and decreased transaction
costs; enhanced capacity for meeting
international
and
local
market
requirements; enhanced bargaining power;
and improved capacity for competing in
high value markets.
The study reported in [4], research states
that collective intelligence approach has
been recognized as a technique for
improving the returns of small-scale
manufacturers in several developing
markets, principally by cutting down the
transaction costs while enhancing the
bargaining power of farmers. This study
has
analysed
the
perception
of
manufacturers
regarding
collective
intelligence strategies for the marketing
and manufacturing of Kola nuts. It is
established that the efficacy of collective
intelligence
is
evaluated
by the
manufacturers on the basis of five principal
groups of criteria. These include;
unfavourable dimensions, social networks
and status, financial and market status,
acquisition of new skills and learning, and
reduced transaction costs. Two groups
emerged from the analysis: one group
which forms
the majority has a positive perception
whereas the minority group viewed it
negatively. The findings in [4] also reveal
the perception of the manufacturers
regarding the collective action. According
to their perceptions the collective
intelligence approach to marketing
guarantees a number of benefits to the
marketers as well as to the overall

business. Also, the study evaluates the
negative perceptions of the farmers
regarding collective intelligence approach
to marketing. A total of thirty two percent
farmers point out that collective
intelligence has resulted in a loss of
independence in duration of the
negotiation period. The technique that is
applied is that every participant places the
products together while agreeing with the
traders on one price. Despite the fact the
majority of the farmers acknowledge the
price stability and increased prices due to
collective intelligence; however they had a
desire to have had a comparatively more
active role in the negotiations of prices.
Concluded that the advocators of collective
intelligence
required
improving
differentiated techniques for the purpose of
enhancing its adoption in the relevant area.
The author of [5] discuses that during the
operations phase of the value chain,
activities to create value are conducted that
would transform the inputs into the service
or the final product. Such activities include
machining, packaging, testing, assembly,
and more. Because of the internet facility,
there is a virtual world established for
collective intelligence. The internet
facilitates individuals in connecting and
working
collaboratively
for
the
achievement of success. Collaboration and
communication together with the approach
of social media may pose a positive effect
on the process of innovation, this is
referred to as open innovation and it is
associated to the employment of external
as well as internal organizational
knowledge regarding the innovation
process. Also, in the study [5] mentioned,
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Vol. 3(3), 2015, pp. 194-203
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social media, apart from online
recruitment, may additionally be employed
in different activities related to the human
resource management. For instance,
companies may exploit intranet that is
referred to a set of the inclusive ICT
services and applications based on web
technologies. This may be presented by the
company to the personnel and it would
even support the organizational business
procedures. Moreover, it helps in
collaborating, interacting as well as sharing
the corporate information across the
several levels in an organization. For
instance, the personnel may employ
intranet as a platform for discussing all
sorts of issues with each other regarding
their business operations. Also, web
seminars or online training programs may
be imparted through the intranet.
The social
media technology is
progressively enhancing the capability of
the organizations to employ collective
intelligence [6]. Collective intelligence
facilitates the distributed skills and
knowledge of people outside and inside the
firm’s formal boundaries. Having these
skills and knowledge may produce
substantial qualities in the development
and markets of novel services and
products, distributing tasks in innovative
and novel ways, sharing best practices, and
foreseeing the future happenings. This
research throws light on various
approaches to the application of collective
intelligence; the way companies may select
and determine the suitable audiences for
such activities; and the way they may
attend to the mutual challenges and risks to
this emerging potential. The research [6]

deduces that collective intelligence
improves the outcomes of a business by
enhancing the way of new skill and
knowledge is accessed by the organizations
regarding their networks. This facilitates
them in sharing and discovering novel
ideas; enhancing skills and sharing the
workload; and enhancing forecasting
efficiency. Collective intelligence may be
implemented for achieving various
corporate goals for the purpose of
identifying
novel
prospects
for
differentiating the organization or serving
novel markets, tapping into external
experiences and skills for delivering on
corporate imperatives, and predicting the
outcomes of the existing extremely
complicated corporate challenges.
By analysing [7] study we find that
Modern media firms attempt to exploit
collective
intelligence
which
is
materializing online, developing an
affective economy. There are negative as
well as positive implications of affective
economics. They allow advertisers to
exploit the potential of collective
intelligence and steer it towards their own
end. However, they also allow the
customers to develop their specific type of
collective bargaining structure which may
be used for challenging the business
decisions. The entrepreneurs of Web 2.0 in
the new millennium focus on exploiting
the free collective intelligence for the
purpose of enhancing their incomes. Free
services are provided by the media
companies of Web 2.0 against free labour,
attention, and personal data. The research
[7] also finds that labels, artists, and Web
2.0 have novel prospects for reaching the
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Vol. 3(3), 2015, pp. 194-203
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global audiences, establishing associations
with the fans, and connecting their
collective intelligence skills for the
purpose of marketing. However, they are
also required to compete for attention in a
larger remote, and distributed music
market. Official profiles are created by the
indie and pop artists in the social media
websites for the purpose of sharing
podcasts, music videos, and information,
aiming to promote their music in an
international setup. Examples of pop stars
like Justin Bieber and Mika have been
presented who have been reported thanking
their online profiles on social media
websites like YouTube and MySpace. The
Web 2.0 applications are employed by the
independent musicians for the order of
distributing their content with no need to
mediate their labels.
Collective intelligence has been existent
since a long time, that is emphasised in the
following [8] research. However, during
the last twenty years, the boom of internet
has provided increase to the novel sorts of
collective intelligence. Organizations may
exploit
the
supposed
web-enabled
collective intelligence. The web based
collective intelligence has its bases in the
connection of knowledge workers by
means of social media. This implies that
organizations may recruit knowledge
workers that are geographically dispersed
and establish supposed virtual teams out of
these
knowledge
workers.
The
organizations, by imparting an online
social
network,
may
accomplish
considerable development of collective
intelligence.

The organizations that are willing and
capable of innovating their managerial
methods acquire a strong competitive
advantage [8]. Employing collective
intelligence for the purpose of making
decisions is amongst the greatest prospects.
Acquirable collective intelligence is
currently the virtually unlimited, which is
due to the web based social media
networks. The employment of collective
intelligence may facilitate organizations in
solving their issues, in overcoming the
individual brain constraints, in qualifying
the effects of decision-making, and more.
The employment of collective intelligence
in several organizations is not yet a part of
policy. This is because of the lack of
standard guidelines or rules regarding the
way to develop an effective social network
and the way to exploit collective
intelligence of the various participants. In
sum, to build the kind of collective
intelligence system suitable for the desired
goal, managers have to ask four main
questions: What is being done? Who is
doing it? Why are they doing it? How it is
being done? In general, these questions
have to be answered for any business
activity. The answer to What? is the
mission and goal, answers to Who? are in
web-based collective intelligence systems
activities can be taken by anyone in a large
group. Why? Is the question of motivation,
and How? refers to choose the best idea
proposed by the contributors.
Studies [9] demonstrate that, the word Web
2.0 is linked with a seminal conference
which was conducted in the year 2004. The
term, Web 2.0, was proposed by O’Reilly
Media who was the publisher of global
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technology. It is observed that, Web 2.0 is
considered as the better way to replace the
traditional perception of work station
computer applications with web based
platforms. Furthermore, the idea of Web
2.0 can also be used to utilize and spread
combined intelligence, in order to develop
and improve the functionality of the web
based operations. The analysis of this [9]
article reveals that, in the current era, the
digital convergence has brought various
innovations and advancements in the
business processes. It is because of the
reason that, these advancements have
allowed the businesses to bring their
organizational processes beneath its
technological umbrella. On the other hand,
it is also analysed from this study that, it is
necessary for each and every business or
organization, to understand innovative
techniques of marketing. In this regard,
they can utilize the technology of digital
marketing. This may greatly help the
organizations and businesses to promote
their services and products globally.
Furthermore, the analysis of the [9] study
also determines that, Google has also
provided innovative marketing principles
to the organizations, which may greatly
help the organizations to expand their
business globally.
Internationalization’s emerging aspect is
the need to grow and the urge to be more
and more competitive, to gain strategic
advantage of globalization and the need to
diversify [10]. With the help of worldwide
economic environment, the marketing
strategies are turning to be more
internationalized
even
for
such
organizations which are operating at

domestic level. The integration of
knowledge management and marketing
intelligence in this age of information and
communication
technology
offers
sustainable
growth
of
business
organization. In the findings [10] states
that the globalization of international
investments,
global
convergence,
consumer choice and information surge,
supply chain systems, WTO (World Trade
Organizations), global growth, rise in ICT
(Information
and
Communication
Technology) and free market economy
have helped in creating new world order in
the global business environment [10]. The
knowledge management and marketing
intelligence is playing a predictable role
for the business organizations in new
world order. In international marketing,
reliable and appropriate information plays
a significant role for making decisions.
Competitive
behaviour,
Consumer’s
demand, relative weaknesses and strengths
and demand trends are compiled and
collected from these resources. Market
research is the important part of knowledge
management.
Conclusions and Future Work
For the foreseeable future, technology will
continue to accelerate the blurring of
international boundaries in commerce.
Commerce will become increasingly
digital and globally international in scope.
Digital marketing through collective
intelligence is almost unlimited because of
Internet-based social networks. The use of
collective intelligence can help companies
solve their problems, to ease the effects of
internal and external decision making. The
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Journal of Business and Technovation (ISSN: 2414-245X)
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________________________________________________________________

companies which are able and willing to
innovate their managerial methods achieve
a strong competitive advantage, while
challenging in its newness the most other
small scale business programs. The new
business program must include applied
technology components and modernised
programs should be improved if they wish
to stay relevant in the business.
However, technology and application that
applied into collective intelligence for
improved decision making may be simple
in concept, but it can be extremely difficult
to implement for some organizations. In
many companies the use of collective
intelligence is not yet on the agenda. The
reason is that there are no general rules and
guidelines, unaffordable cost or lack of
easiness how to build an efficient social
network and how to take advantage of
collective intelligence of the participants.
Moreover, it is very likely that the
development of technology will be faster
than implementing existing. So, what else
can managers do than just look at examples
and hope for inspiration and success?
Especially, small scale organizations in
developing countries may have challenges
to adopt in the international techno world.
In my opinion, fast speed innovation of
novel technology and application of digital
marketing through collective intelligence
should be slow down. The existing
methods still not known well and not fully
implemented. Innovators have to work on
improvement of present technology and
application by emphasising to usability,
usefulness and accessibility for the most
organizations. By encouraging more
collaboration and having feedback

collective intelligence give marketing
planners, content owners, business analysts
and decision-makers more data for future
planning,
budgeting
and
resource
allocation. Altogether, it provides for
smarter and more effective marketing
operations. I believe that this approach will
avoid the intellectual and economic gap
between organizations in different
countries. In sum, the properly use of
social
networking
and
collective
intelligence in digital marketing is a big
opportunity, it may bring some risk but in
any case it is an adventure.

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[7] Agnese Vellar. 2012. The recording
industry and grassroots marketing:
from street teams to
flash mobs.
Journal of Audience and Reception
Studies.

References
[1] Kunpeng Zhang, 2013. Big social
media data mining for marketing
Intelligence. Graduate School In
Partial
Fulfillment
Of
The
Requirements, ProQuest LLC.

[8] Jaroslava KUBÁTOVÁ, 2012. Growth
of collective intelligence by linking
Knowledge workers through social
media. Lex ET Scientia. Economics
Series.

[2] Mark F. Lang, 2013. Improving
marketing
forecasting
through
Collective market intelligence. The
Temple University Graduate Board,
ProQuest LLC.

[9] Scott D. Roberts, Russell E. Rains, &
Gregory E. Perry, 2012. A Business
Educator’s Guide To Transitioning To
A Digital Curriculum. American
Journal Of Business Education.

[3] Fiona
Paumgarten,
Habtemariam
Kassa,
Mathurin
Zida,
Moira
Moeliono, 2012. Benefits, Challenges,
and Enabling Conditions of Collective
Action to Promote Sustainable
Production and Marketing of Products
from Africa’s Dry Forests. Review of
Policy Research, Vol. 29, No. 2.

[10]
Dr. Artta Bandhu Jena & Dr.
Rama
Chandra
Parida,2014.
International marketing: application of
marketing Intelligence and knowledge
management for sustainable Growth.
International journal of management
research and review.

[4] Amos Gyau & Bertin Takoutsing,
2012. Producers' Perception of
Collective Action Initiatives in the
Production and Marketing of Kola in
Cameroon. Canadian Center of Science
and Education.
[5] Nicole Busscher. 2015. Social media:
their role as marketing tools in B2B
Marketing, University of Twente,
Faculty
of
Management
and
Governance.
[6] Eric Lesser, David Ransom, Rawn
Shah & Bob Pulver, 2012. Collective
Intelligence: Capitalizing on the crowd.
IBM Institute for Business Value.

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