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Brain circuits

Do you understand how AI can revolutionize your marketing?

Published 13 December 2022 in Brain circuits • 3 min read

AI is a hot commodity in the marketing space – but like all new tools, many companies adopting it don’t fully understand its benefits and its drawbacks. As a result, most marketers are using AI in an ad hoc manner, lacking in a clear strategy. To really gain a competitive advantage, executives need to rethink the scope and framing of how they are viewing AI and shift from improving on traditional and familiar marketing strategies to considering game-changing new ideas.

For today’s exercise, consider these questions and ask yourself where AI could assist in making critical strategic decisions.

As a marketer, how are you looking for new markets or product segments? Conversely, how are you pinpointing markets you should avoid?

AI can identify things a human can’t by rapidly sifting through vast amounts of data. Used correctly, AI may point you to completely change the types of customers your company is targeting. It can also demonstrate where you may need to streamline your products or services.

How do you determine where your marketing spend goes?

There is no exact science to this, but AI can help you identify the optimal channels for advertising and help you to clearly explain your decisions from a data perspective. AI can also help you to understand what influences your customers purchasing decisions on a level never previously possible.

How do you reach people beyond your normal viewpoint?

We all have blind spots, which creates bias – even unintentionally. AI can lift the veil and help you to see perspectives that were never available to you before. This allows marketers to consider all potential customers, not just those that are easy to relate to because of a shared background and culture. This insight has the potential to unlock new markets and revenue streams.

How are you providing input into pricing models?

AI can give organizations the ability to develop pricing models that are responsive to individual customers. This is one of the most powerful applications available in times like today when inflation is forcing companies to look for new ways to change prices without losing customers.

Understanding the unique ways you can use AI to improve insights and accountability can earn marketing executives a seat at the top table when it comes to strategy. This is something executives often feel is elusive. But it is important to understand the strategic aspects of AI and work closely with colleagues across the organization to ensure the ability to execute new initiatives.

Further reading: 

The next frontier of AI in marketing by Amit Joshi

Authors

Amit Joshiv - IMD Professor

Amit M. Joshi

Professor of AI, Analytics and Marketing Strategy at IMD

Amit Joshi is Professor of AI, Analytics, and Marketing Strategy at IMD and Program Director of the Digital Analytics program, AI for Business Sprint , and the Business Analytics for Leaders course. This research builds on his 2020 paper Hollywood studio filmmaking in the age of Netflix: a tale of two institutional logics, which was co-authored by Allègre L. Hadida, Joseph Lampel, W. David Walls) and published in Journal of Cultural Economics.

 

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