Journal Article
Machine Learning

A strategic framework for artificial intelligence in marketing

Ming‐Hui Huang(National Taiwan University), Roland T. Rust(University of Maryland, College Park)
November 4, 2020Journal of the Academy of Marketing Science1,629 citations

1.6k

Citations

53

Influential Citations

Journal of the Academy of Marketing Science

Venue

2020

Year

Abstract

Abstract The authors develop a three-stage framework for strategic marketing planning, incorporating multiple artificial intelligence (AI) benefits: mechanical AI for automating repetitive marketing functions and activities, thinking AI for processing data to arrive at decisions, and feeling AI for analyzing interactions and human emotions. This framework lays out the ways that AI can be used for marketing research, strategy (segmentation, targeting, and positioning, STP), and actions. At the marketing research stage, mechanical AI can be used for data collection, thinking AI for market analysis, and feeling AI for customer understanding. At the marketing strategy (STP) stage, mechanical AI can be used for segmentation (segment recognition), thinking AI for targeting (segment recommendation), and feeling AI for positioning (segment resonance). At the marketing action stage, mechanical AI can be used for standardization, thinking AI for personalization, and feeling AI for relationalization. We apply this framework to various areas of marketing, organized by marketing 4Ps/4Cs, to illustrate the strategic use of AI.

Analysis

Why This Paper Matters

This paper provides a foundational strategic framework for integrating artificial intelligence into marketing, a field increasingly driven by data and automation. By categorizing AI into mechanical, thinking, and feeling types, the authors offer a clear lens for marketers to understand which AI capabilities are best suited for different marketing tasks—from automating routine data collection to analyzing human emotions for customer understanding. The framework bridges the gap between technical AI capabilities and marketing strategy, making it highly relevant for both academics and practitioners seeking to leverage AI effectively.

The timing of the publication (2020) coincides with the rapid adoption of AI in business, and the paper has garnered significant attention (1629 citations), indicating its influence. It addresses a critical need: a structured way to think about AI beyond hype, linking specific AI functions to concrete marketing outcomes like segmentation, targeting, and positioning.

Technical Contributions

  • Three AI types defined: Mechanical AI (automation of repetitive tasks), Thinking AI (data processing and decision-making), Feeling AI (interaction and emotion analysis).
  • Three-stage marketing planning: Research (data collection, market analysis, customer understanding), Strategy (segmentation, targeting, positioning), Actions (standardization, personalization, relationalization).
  • Mapping AI to STP: Mechanical for segment recognition, Thinking for segment recommendation, Feeling for segment resonance.
  • Application to 4Ps/4Cs: Illustrates how each AI type can be applied to product, price, place, promotion (or customer, cost, convenience, communication).

Results

The paper does not present empirical results but provides a conceptual taxonomy. Its main output is a structured framework that has been widely adopted in subsequent research. The framework's utility is demonstrated through examples, such as using feeling AI for customer sentiment analysis in positioning, or thinking AI for personalized pricing recommendations.

Significance

This paper has become a key reference for AI in marketing, cited over 1600 times. It provides a common language for researchers and practitioners to discuss AI applications, moving beyond generic terms like 'AI' to specific functional roles. The framework encourages strategic alignment of AI investments with marketing goals, potentially improving ROI on AI initiatives. It also opens avenues for future empirical work to test the framework's predictions and refine the AI type categorizations.