How does AI Impact Your Category Strategy?

So, now that everyone is adding an AI element to their product solutions, the question naturally arises: “How does this impact my category strategy?” The answer is that AI scratches the System 2 itch, and is not a System 1 tip of the spear, meaning...you don't lead with it.

By
Mike Geraci
|
August 1, 2023

There is a natural, hard-coded rhythm to how humans process information. We start broad, look for patterns, then get narrow when more detail is required for clarity and differentiation. Kahneman refers to this as System 1 and System 2 thinking in his book Thinking Fast and Slow.

System 1 is fast, automatic, intuitive, and emotional thinking. It operates subconsciously, relying on patterns, and allowing us to make quick judgments and decisions without much conscious effort. System 2 is slow, deliberate, analytical, and logical thinking. It requires mental work. We tend to avoid it when possible.

System 2 thinking is engaged when faced with complex problems, novel situations, or tasks that demand deeper analysis and critical thinking. It helps us reason, plan, evaluate evidence, and make well-thought-out decisions.

Most B2B SaaS product marketing leapfrogs System 1 and gets right into System 2; product, feature, benefit. This scratches the System 2 itch, but, as noted above, that’s not how cognitive processing works. First, you have to interrupt the patterns driving System 1 processing before you engage deeper System 2 systems.

System 1 activations impact B2B decisions through differentiated first impressions based on the prospect's cognitive biases, using more emotive hooks through visuals and copy.

Here's a recent example from Vibe.co's LinkedIn campaign. The visual hijacks the expected and creates a pause in pattern seeking. Light copy with clear CTA and differentiated value prop, with incentive.

Vibe.co LI d unite

The tenets of Category Strategy push us to lead with the big change in the world, the problem you solve related to that, and the human problem behind the business problem. This is a System 1 on-ramp to communication, as it establishes context rooted in the prospect’s experience and cognitive bias.

So, now that everyone is adding an AI element to their product solutions, the question naturally arises: “How does this impact my category strategy?” The answer is that AI scratches the System 2 itch, and is not a System 1 tip of the spear, meaning...you don't lead with it.

The entire DRMG crew discusses how, where, when, and why to include AI in your strategy, positioning, and marketing through the lens of the Databricks' acquisition of MosaicML, in Episode 42 of...The SaaS Brand Strategy Show.

Subscribe to the blog.

Thank you! You have been subscribed.
Oops! Something went wrong while submitting the form.

More From the Blog

Call It A Catjacking: Apple Hijacks AI With Personal Intelligence Category

Following the launch of the Spatial Computing category, Personal Intelligence System is the second recent example of Apple embracing and crushing category strategy.

Read More →

Unlock GTM: Accelerate Your Strategy With DRMG And AI In 5 Weeks

DRMG's New SBAI start-up activation sprint workshops are designed to reorient and align your teams, quickly. Our activation sprints leverage AI to translate your vast business knowledge base into actionable, strategic plans, making your go-to-market strategy not just faster, but smarter.

Read More →

CATEGORY STRATEGY STARTS HERE

Schedule an in-person clinic on DRMG's Category Strategy.
We'll send you a calendar link with available times.

Thank you! We'll get in touch with you soon.
Oops! Something went wrong while submitting the form.