AI-BASED MARKETING IN THE AUTOMOTIVE INDUSTRY: LEVERAGING PROPENSITY, IN-MARKET, NEAR-MARKET, AND AFFINITY MODELING

Abstract

The automotive industry is experiencing a transformative shift through the integration of artificial intelligence in its marketing strategies. This article examines how propensity, in-market, near-market, and affinity modeling are revolutionizing customer engagement and sales optimization in the automotive sector. The implementation of AI-driven marketing solutions spans various applications, from personalized campaigns to dynamic pricing strategies. Through real-world examples and performance metrics, this article demonstrates how these advanced modeling techniques enable automotive companies to better understand customer behavior, predict purchase intentions, and deliver targeted marketing initiatives. The article reveal significant improvements in customer acquisition, retention rates, and operational efficiency, while also highlighting challenges in data privacy, model interpretability, and system integration.