A family of Microsoft word processing software products for creating web, email, and print documents.
As Anna suggests, you can use the Selection.InlineShapes collection to place the picture where the insertion point is at the time the macro runs, so you'd have to click there before starting the macro.
However, the ActiveDocument.InlineShapes.AddPicture method has an optional parameter named Range, with which the macro can specify any range in the active document, regardless of where the insertion point is. The syntax of the method is
ActiveDocument.InlineShapes.AddPicture FileName, [LinkToFile], [SaveWithDocument], [Range]
where each of the parameters shown in square brackets is optional.
If you do want to place the picture at the current insertion point, you can write Range:=Selection.Range. If the document has a bookmark at the desired spot, you can write
Range:=ActiveDocument.Bookmarks("bookmarkname").Range
There are lots of other ways to determine where the correct range is (for example, the range of a cell in a table).