Augmented Reality (AR) is part of the broader field of Extended Reality (XR), which also includes Virtual Reality (VR) and Mixed Reality (MR). The concept originated in the 1990s, with early applications in aviation and military visualization systems, and was later expanded through advances in mobile computing, sensors, and artificial intelligence. Unlike Virtual Reality, which replaces the real environment, AR enhances it—merging physical and digital dimensions into a unified perceptual field. From a management and marketing perspective, AR represents a new stage in experiential communication, aligning with the Contemporary Marketing Management framework, which emphasizes immersive, data-enhanced, and emotionally engaging experiences.

Augmented Reality (AR) uses digital overlays to enrich a user’s perception of the real world, combining visual, auditory, and sometimes haptic feedback in real time.

Through cameras, sensors, and software, AR systems analyze the physical environment and superimpose contextual digital elements—text, 3D models, or interactive animations—creating a blended layer of meaning and function.

In business and marketing, AR is not merely a technological innovation but a strategic communication tool that bridges product experience and digital storytelling.

It allows customers to visualize, manipulate, or test products virtually within their real environment before purchasing, reducing uncertainty and enhancing engagement.

Key organizational applications include:

1. Product visualization – allowing customers to preview how furniture, clothing, or technology would look in their own spaces.

2. Training and education – providing immersive simulations that enhance employee learning and safety.

3. Marketing and retail experiences – creating interactive campaigns, in-store navigation, and branded content that merge emotion with interactivity.

4. Data visualization – overlaying key operational information on physical environments to assist decision-making and logistics.

In Contemporary Marketing Management, AR serves as a tool for relational innovation, turning interaction into participation. It transforms marketing from a message to an experience, reinforcing the emotional and cognitive connection between people and brands.

Brands like IKEA and Nike use AR to let users virtually try furniture or shoes before purchase, improving confidence and reducing returns. In corporate contexts, AR supports remote assistance and hands-on learning: for example, Siemens and Boeing use AR for maintenance and engineering training. AR filters on social media platforms like Instagram and Snapchat illustrate how the technology blends entertainment, branding, and data collection in real time.