Brand Management with Artificial Intelligence

Hi, I am Dr. Carlos Valdez, founder and director of Mercadotecnia y Ventas. This is my video and audio blog from September 16, titled "Brand Management with Artificial Intelligence."

In the most recent September-October 2024 edition of the Harvard Business Review (HBR), the editor-in-chief mentions that he used AI to write his editorial, reflecting how AI is being used in all areas of business. What was once seen as "cheating" is now considered a recommended practice to be more productive.

Since the launch of OpenAI and ChatGPT in November 2022, Harvard Business Review has dedicated its main article in three consecutive issues to AI: July-August 2023, September-October 2023, and now September-October 2024. It is evident that AI continues to be a central theme in business.

In this blog, we will explore two articles from the latest edition of Harvard Business Review on how AI can be a key tool in brand management:

1. "Embracing Gen AI at Work" by H. James Wilson and Paul R. Daugherty, which introduces the "fusion skills" necessary to use this technology effectively.
2. "How AI Can Power Brand Management" by Julian De Freitas and Elie Ofek, which offers key strategies on how to use AI to boost performance and creativity in brand management.

The Three Fusion Skills for AI in Brand Management

In the article "Embracing Gen AI at Work," Wilson and Daugherty highlight three essential "fusion skills" for growing and learning alongside AI assistants:

1. Intelligent Interrogation: Improving Strategic Decision-Making in Marketing

Intelligent Interrogation involves breaking down complex problems into smaller steps to optimize each one. This technique is fundamental for developing more effective marketing campaigns by using AI to analyze large volumes of data and provide recommendations based on patterns. For example, adding the instruction "Let's think step by step" in AI prompts can significantly improve the accuracy of the results.

Practical examples include:

• Audience Identification: Use AI to analyze data and determine the most relevant customer segments.
• Message Personalization: Use AI to create personalized messages for each segment.
• Channel Selection: Leverage AI to select the most effective marketing channels.
• Budget Allocation: Use AI to optimally allocate budgets.

1. Judgment Integration: Ensuring Precision and Reliability in Brand Management

Judgment Integration is crucial when using generative AI models that lack sufficient context. This involves knowing when to intervene to improve the reliability of the results. For example, Intuit uses AI to analyze customer service call transcripts and provide feedback to its agents, improving customer satisfaction and ensuring employees remain the face of the brand.

1. Reciprocal Learning: Turning AI into a Strategic Partner

Reciprocal Learning involves teaching AI to understand the needs and context of your company by integrating rich data and organizational knowledge into the provided instructions. This turns AI into a true co-creator of marketing strategies. Nike, for example, used generative AI to design new editions of its Air Max sneakers, combining human creativity with AI capabilities to optimize designs.

The Four Ps of AI's Impact on Brand Management

In the article "How AI Can Power Brand Management," the authors describe the Four Ps that summarize the key areas where AI can enhance brand management:

• Productivity: AI improves the efficiency and convenience of marketing tasks, such as customer service. For example, customer service representatives are brand ambassadors, and AI can help them improve their performance and keep customers satisfied.

• Prediction: AI helps reduce uncertainty and increases confidence in products. An example is Caterpillar, which uses AI to predict equipment failures and perform preventive maintenance, protecting the brand's image as reliable and caring for its customers.

• Personalization: AI enables the creation of personalized experiences for customers. LOOP, a car insurance app, uses real-time data to adjust rates and offer discounts for safe driving, strengthening the relationship with its customers.

• Proposals: AI offers new creative solutions that remain true to the essence of the brand. Jasper AI, for instance, generates marketing content that matches the brand's unique voice without compromising its integrity.

Conclusion: AI as an Enhancer of Brand Management

The integration of artificial intelligence in brand management should be seen as a complement to human intelligence, not a substitute. The most effective strategies combine the best of both worlds to improve decision-making, creativity, and efficiency in marketing and sales. Companies that adopt this hybrid approach will be better positioned to leverage the power of AI without sacrificing their brand's essence.

References:

De Freitas, J., & Ofek, E. (2024). How AI can power brand management. Harvard Business Review, September-October 2024, 108-114.

Wilson, H. J., & Daugherty, P. R. (2024). Embracing Gen AI at work. Harvard Business Review, September-October 2024, 151-155.