Artificial Intelligence for Asset Management and Investment

Chapter 11Marketing Science

MARKETING IS ONE OF THE MOST important functions in asset management. As Sandra Murphy, author of The Road to AUM, clarifies, performance on its own is not a competitive differentiation since it is already expected (Murphy, 2018). Just as an automobile company cannot claim mobility of a vehicle as a differentiator (since it is an automobile's basic functionality and hence expected attribute), asset management cannot build a competitive advantage on the basis of performance only. Marketing drives demand for product and services. It understands what customers need and want and develops the best way to communicate the value proposition, gets people interested and excited, and as a consequence, influences demand. AI provides a powerful way to develop and implement marketing strategy. In fact, AI is revolutionizing marketing. In this chapter we discover how to deploy AI to improve marketing in asset management.

WHO UNDERTAKES THIS RESPONSIBILITY?

The head of marketing is responsible for undertaking the AI-centric transformation. The CMO's strategy must align with the corporate strategy and should be consistent with the overall strategy of the firm, customer experience (CX), and sales. This function can create a powerful effect, but conventional marketing is expensive, ineffective, and often unproductive. Companies spend millions, but the return on marketing is often low. At the TSAM (The Summit of Asset Management) event in Boston, Dominica Ribeiro, ...