LUT School of Business and Management

A330A0352 Strategic Issues in Digital Marketing

Post-Doctoral Researcher, D.Sc. (Econ. & Bus. Adm.) Heini Vanninen

Post-Doctoral Researcher, D.Sc. (Econ. & Bus. Adm.) Jaakko Metsola

Article Analysis + Case Exercise 1

Student ID: 0594878

Tamanna Wahid
Article Analysis of Huang & Rust (2021):
The paper gives a complete framework for the strategic application of artificial intelligence in
marketing, focusing on three essential stages: research, strategy, and actions. It emphasizes
the significance of comprehending AI's distinct intelligences (mechanical, thinking, and
feeling) and their applicability in many aspects of marketing. The paradigm is consistent with
the cyclical nature of marketing research, strategy creation, and action implementation,
emphasizing the importance of a continuous information flow loop.
The strategic planning framework is based on the marketing research-marketing strategy-
marketing action cycle, with AI intelligences incorporated at each level. Mechanical AI
handles repetitive duties, thinking AI analyzes unstructured data for insights, and feeling AI
understands and responds to human emotions in interactions. The assignment of applications
to individual intelligences, on the other hand, remains changeable, demonstrating the murky.
The importance of AI in segmentation, targeting, and positioning (STP) becomes clear within
this paradigm. Through pattern recognition, mechanical AI aids in data collecting and
segmentation, whereas thinking AI aids in market analysis and targeting by recognizing rivals
and customer preferences. Feeling AI is critical for recognizing client emotions in order to
provide optimal positioning and individualized communication.
The 4Ps/4Cs paradigm elucidates the strategic integration of AI intelligences even further.
Mechanical AI makes standardization easier, thinking AI makes personalization easier, and
feeling AI improves relationalization across the marketing mix (Product, Price, Place,
Promotion; Consumer, Cost, Convenience, Communication).
Critical factors, such as the limitations and biases associated with each AI intellect, are
underlined. Mechanical AI may lose contextual relevance, whereas thinking AI may exhibit
decision-making biases. Though powerful in understanding emotions, Feeling AI lacks full
emotional awareness and can be replaced by other AI intelligences, resulting in unintended
consequences.
In summary, the paper presents a strong strategic framework for AI integration in marketing,
while advising marketers to carefully consider AI's limitations, biases, and increasing
capabilities in order to drive powerful marketing strategies.
Also, the rapidly changing nature of AI’s development may make a portion of the article less
up to date, depicting what is happening at present. AI landscape changes quickly; therefore,
the continuous of exploration and adaptations. In addition, the article can delve deeper into
the subtleties that are associated with human-AI collaboration in marketing. This can enable
the development of harmonious relationships that take advantage of the strong points
exhibited by both humans and AI for effective marketing results. Overall, the article presents
a powerful framework as well as useful information on using of AI in marketing practice.
However, more analysis of ethics, AI changes, and complex of human-AI interaction can help
this publication to be updated and applied to modern marketing.
Question: What is marketers’ smartest way forward – how do they integrate AI into their
strategies without violating ethics, preserving some level of personal engagement with
customers?
Explanation:
As the world continues to evolve, one must ask what the most effective method for the
integration of AI in marketing strategies that adheres to ethical standards and maintains a
humanist approach is? The study explores how marketers can use AI’s efficiency,
personalization, and data-driven decision-making while upholding ethical boundaries and the
authenticity of human connections.
My point of view about this issue conforms to the need for the balance between AI’s
advantages and the human-oriented components in marketing. There is no doubt that AI can
be a gamechanger in analyzing large data, personalized marketing, and automation of trivial
tasks. Nevertheless, the ethical considerations involved in the adoption of AI like data
privacy, bias and dehumanization need to be considered. Human touch is still irreplaceable in
creating trust, empathy and emotional bond with customers that AI would perhaps not
manage to achieve.
Marketers need to find an answer to this question carefully and think about how to use the
capabilities of AI without violating moral norms, and losing the essence of natural
communication between people. These strategies include peer-to-peer collaborative
discussions involving teachers, industry experts, and stakeholders, which may help develop
AI’s potential while retaining human empathy and the personal touch necessary for building
long-lasting relationships with customers.
Article Analysis of Rusthollkarhu et. al. (2022):
These articles provide a critical examination into AI usage in managing B2B customer’s
journey, illustrating its impacts on different touchpoints. It clearly demonstrates the
significance of AI applications such as machine learning, Virtual reality, IoT and the internet
in improving customer engagements and sales in digital spaces. To me, their focus on the
ethical implications of AI for B2B customer management is vital. The concerns are becoming
even more relevant due to the increased use of AI. However, although the articles are well
detailed on the AI’s role and classification of tools, there might be a more practical approach
to implement these strategies in business settings at a different size. However, understanding
how small and medium enterprises manage B2B customer journeys using AI could be
helpful. Furthermore, a more critical exploration in the limits of AI, especially about
comprehending intricate human behaviors, is necessary in order to enhance the overall
assessment about the possibilities of AI. In general, although AI has great potential to
revolutionize B2B customer interactions, the ethics issues should be addressed and its
practical applications within different sized businesses should be explored in order to
optimize its efficiency.
There are various specific approaches, including the emphases of the articles. Another article
specifically concentrates on studying AI-supported techniques functionalities and how they
affect B2B customer journey management, presenting a thorough classification of these tools
according to the phase of customer journey that they assist. On the contrary, the second
article focuses on explaining the definition of AI, its conceptual model as well as its role in
B2B customer journey management. It provides particular management activities aimed
towards customer journeys and incorporates AI-powered instrumentations within this
platform. In summary, both articles are centered on AI’s role in managing interactions with
B2B customers but have different foci on tool functionalities and classification vs defining AI
and its integration into activities of management throughout a customer journey framework.
These articles demonstrate the need to utilize AI-powered systems in managing B2B
customer journeys. This helps to demonstrate how these technologies can analyze customer
behavior, create a custom experience for the customer, engage them and direct them through
their journey. The utilization of tools, sorted out by stage of a customer’s journey, offers a
systematic perspective on how AI can influence B2B interactions. Discussion of ethics
related to AI that encompass data privacy and job displacement, is important and in line with
wider societal discussions.
In my opinion, I concur with the writers’ focus on using AI to improve B2B customer
relations. My experience in digital marketing and sales has given me firsthand knowledge
about how AI can be used in personalised recommendations, data-driven insights for better
customer satisfaction by optimising customer engagement with automation. This is well
presented in those articles, which rightly point out the need of understanding AI’s capabilities
and limitations here.
Nevertheless, a critical issue that can also be considered is the real-world implications of AI
tools’ usages especially among small businesses with fewer resources. Furthermore, the
articles may also discuss the possible cultural and organizational impediments that may
impede successful adoption and integration of AI in B2B customer journey management.
Additionally, the articles outline ethics related to AI although they could have gone a notch
higher to proffer possible remedies on how to counter the concerns.
Like the authors, I equally emphasize on the role of addressing data privacy and ethical issues
in the implementation of AI. The use of AI should be ethical, transparent and avoid biases. It
should focus on ethical frameworks and guidelines for managing B2B customer journeys.
In general, although the articles provide useful insights on the role of AI in managing B2B
journey of customer, more investigation about the challenges of practical implementation,
organizational barriers as well as overall strategies to handle the ethical issues would enrich
their comprehensiveness and relevance to the real business environment.
One important open-ended question arising from these articles could be:
What measures should be adopted by enterprises for a successful integration of AI-driven
solutions in cross-company consumer experience planning that will also pay attention to
moral issues as well as take all sides of the matter into account?
Today, I consider this question extremely important. In enhancing customer journey
management, AI has a lot of potential, but there are ethical questions regarding data privacy,
fairness and transparency. Finally, making AI fair involves thinking through how it will affect
stakeholders – for example, considering AI’s influence on the workers whose jobs are
automated or clients with different demographics or technological possibilities. However,
business entities need to engage in discussions regarding the strategies which can be
employed to maintain the balance between using AI for better B2B engagements without
violating ethics and inclusivity while navigating through this terrain responsibly and
sustainably. Through collaborative discussions on the topic, insights and practices that can
support ethical AI incorporation into b2b customer management strategies can be brought
forth.
Case exercise:
I would consider my startup Brush Rush Cleaning Co. for this case exercise. As the CEO of a
B2C e-commerce office/home cleaning firm in charge of boosting digital marketing for
customer acquisition and retention in the face of competitive landscapes, the incorporation of
AI-supported methods becomes critical. The incorporation of AI into the marketing approach
is critical in navigating the digital arena for my office/home cleaning firm. A structured use of
AI-powered solutions across the customer journey is required to outperform competition and
streamline my strategy. Starting with the awareness and outreach phase, AI-driven content
customization solutions powered by machine learning algorithms may dynamically customize
content, increasing user engagement and driving leads. In tandem, predictive analytics is
useful for detecting new leads, optimizing marketing communications, and targeting
prospects who are more likely to convert.
Initially, employing AI-powered content personalization tools appears to be a critical strategy.
Machine learning algorithms are used in these technologies to adapt information and
recommendations, increasing user engagement and experience. Predictive analytics helps in
detecting possible leads and personalizing marketing messaging, guiding efforts toward more
promising prospects.
As we move into the engagement and awareness phase, adding AI-powered chatbots and
virtual assistants is critical. These sophisticated tools, powered by natural language
processing, provide instant support, answer questions, and enable smooth client experiences.
Furthermore, utilizing AI-optimized email marketing methods via algorithms improves
content relevancy, increases open rates, and fosters long-term client connection.
As potential clients reach the decision and conversion phase, implementing AI for
behavioural targeting and retargeting across ad channels becomes important. These platforms
use user behaviour analysis to deliver targeted adverts, nurture leads, and increase conversion
rates. Furthermore, using AI for dynamic pricing optimization allows for real-time
modifications depending on market trends and consumer behaviour, which has a huge impact
on conversions.
Customer retention is dependent on post-purchase involvement and satisfaction.
Implementing AI-powered customer service solutions with natural language processing
improves efficiency in handling issues, while sentiment analysis tools aid in proactive
feedback management, cultivating post-purchase customer happiness.
Integrating an AI-driven analytics platform is helpful in consolidating data from numerous
touchpoints, providing complete insights into client behaviour, and maximizing my digital
presence. Strategic use of AI in SEO tactics and content optimization increases exposure and
relevance in online searches, resulting in increased organic traffic and customer acquisition.
Finally, the strategic deployment of AI across the client experience will be a game changer
for my Brush Rush Cleaning Co's digital marketing activities. These AI-driven approaches
and technologies not only improve customer encounters but also personalize marketing
campaigns, establishing strong customer relationships and propelling long-term corporate
success. My B2C enterprise may strengthen its market position by matching these tactics with
the company's unique demands, providing outstanding customer experiences, and gaining a
competitive edge in the digital marketplace.