Marketing To Machines
Marketing To Machines

By Florian Stahl and Andreas Hamann

Marketing To Machines

The New Rules of Choice and Competition

Every company asks how it can use AI. The more important question is what happens to your company when your customers use AI to decide what to buy.

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The shift

For a century, companies competed for attention. Next, they compete for selection.

Yesterday

  1. Compete for attention
  2. Build awareness
  3. Enter consideration
  4. Persuade
  5. Win the customer
What managers measuredShare of attention

Tomorrow

  1. Become discoverable
  2. Enter the machine's consideration
  3. Be evaluated
  4. Earn the recommendation
  5. Win selection
What managers will need to measureShare of selection
The leadership agenda

Questions every leadership team will soon have to answer

What happens when customers stop searching?

What happens when an AI agent creates the consideration set?

What happens to brands when machines make the choice?

What happens to loyalty when an agent can reconsider the whole market before every purchase?

What happens to pricing when buyer agents negotiate with seller agents?

What happens when consumers no longer see most of your advertising?

If machines increasingly decide what gets bought, how do you make sure they choose you?

The book

A management book about what happens to markets when customers use AI

The internet made information cheap to distribute.

Search engines made information cheap to find.

AI agents may make decisions cheap to make.

Human choice

Attention → Search → Consideration → Evaluation → Choice

Companies compete mainly to influence consumers.

Machine-assisted choice

Intent → Agent → Recommendation → Human choice

Machines increasingly decide what consumers see and consider.

Machine-delegated choice

Intent → Agent → Selection → Transaction

The machine becomes an economic decision maker acting for the consumer.

This is not a book about how marketers can use AI. It is about what happens to your business when your customers do.

Who it is for

Written for the people who set direction

Senior executives

CEOs, CMOs, chief strategy officers, chief digital officers, general managers and product leaders.

"What does AI mean for how we compete?"

Advisers and investors

Consultants, entrepreneurs, investors and executives in technology and platform businesses.

Executive education

MBA, Executive MBA and executive programs in marketing strategy, digital transformation, AI and competitive strategy.

Contents

Five parts, eighteen chapters

Part IWhen Machines Become Customers

  1. 1When Machines Become CustomersThe biggest change in marketing since the internet
  2. 2The Vanishing FunnelWhat happens when consumers stop searching
  3. 3From Persuasion to SelectionMarketing's new problem

Part IIHow Machines Choose

  1. 4Inside the Machine's Consideration SetIf the machine can't see you, you don't exist
  2. 5The New SearchWhat comes after Google
  3. 6What Does a Machine Want?The new science of machine preferences
  4. 7Can Machines Love Brands?What becomes of brands when algorithms choose

Part IIIThe New Rules of Competition

  1. 8Winning the Algorithmic ShelfThe fight to become the recommendation
  2. 9When Good Enough Isn't Good EnoughDifferentiation when machines can compare everything
  3. 10The Death and Rebirth of PriceWhen machines negotiate with machines
  4. 11Loyalty Without LoveWill your AI keep buying your favorite brand?
  5. 12The Gatekeepers Get SmarterWho owns the customer when agents control access?

Part IVMarketing To Machines

  1. 13The Machine-Ready BrandHow to become the product an agent can choose
  2. 14Stop Optimizing Clicks. Start Optimizing Choice.The metrics that matter when machines become intermediaries
  3. 15Your Next Customer May Have an APIBuilding the organization for machine-mediated markets

Part VStrategy in a World Where Machines Choose

  1. 16What Will Humans Still Choose?The limits of delegation
  2. 17Gaming the MachineManipulation, trust, and the coming influence war
  3. 18The Machine EconomyWho wins when machines choose?
Frameworks

Two tools you can take into your next leadership meeting

The Machine-Mediated Choice Framework

Shows where competitive advantage moves once machines enter the decision.

Human

Needs, preferences, constraints and context.

Machine

Searches, considers, evaluates, recommends, negotiates and selects.

Market

Brands, products, prices, sellers and platforms.

Choice

The human accepts, the human overrides, or the machine transacts.

The Machine Readiness Audit

To be chosen by a machine, your offer has to be:

  • Discoverable
  • Understandable
  • Verifiable
  • Comparable
  • Recommendable
  • Transactable
Authors

The authors

FS

Florian Stahl

Professor of Marketing, University of Mannheim

Florian Stahl holds the Chair in Quantitative Marketing & Consumer Analytics at the University of Mannheim and Mannheim Business School, and directs the Mannheim Institute for Brand Intelligence. His research and teaching cover consumer analytics, digital markets, artificial intelligence, pricing, platforms and marketing strategy.

He teaches MBA, Executive MBA and executive audiences and advises senior managers on what data and AI mean for strategy.

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AH

Andreas Hamann

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What leaders say about the book

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