The emergence of neuromarketing

Neuromarketing

Neuroscience

Defining neuromarketing

“By studying activity in the brain, neuromarketing combines the techniques of neuroscience and clinical psychology to develop insights into how we respond to products, brands, and advertisement. From this, marketers hope to understand the subtle nuances that distinguish a dud pitch from a successful campaign.”

Purchase decisions aren’t as rational as people think, and they never have been

Neuromarketing

Neuromarketing is a new field of marketing that studies :

consumers' sensors, recognition, and response,

to marketing stimulus.

The scientific background

Established that aspects of cognition and emotional

responses to commercial

messages [below the level of conscious awareness], can be successfully monitored in real time and analysed with sufficient depth and accuracy to provide an invaluable window on their [consumers‘] inner decision making process.“

Neuromarketing- researching consumer behaviour

Neuromarketing is based on neuro-scientific consumer research and the assumption that the majority of consumer behaviour is made subconsciously

What motivates consumers to purchase a certain product? self-esteem emotions consumption experience goal-directed behaviour external influences

It starts, where traditional consumer research techniques end– in the consumer‘s brain

An Introduction to Neuromarketing 8

Sarah Opitz

Posters/billboards

-location-duration

TV/ radio adverts

-channels/stations-time slots

Sponsoring

-celebrities-events

Web adverts

-duration-contents

Freebies/promotion extras-location-product choice

An Introduction to Neuromarketing 9

Sarah Opitz

Neuromarketing-its potential impact on advertisement designs

sports person

colour arrangement

slogan/message

size

Poster/billboards

Radio promotion

music

voicelength

balance information/entertainment

TV advertisement

colour arrangement

image

voice/music

balance information/entertainment

length

product focus

An Introduction to Neuromarketing 10Sarah Opitz

Neuromarketing-its potential impact on product development

flavour

smell

colour

health/fashion trends

identifiying new target groups

Neuromarketing-its potential impact on product packaging/design

logo

colour scheme

packaging materials

packaging size

limited editions

smell

Neuromarketing-its potential impact on distribution

shelving

product grouping

special offers

smell

music

general atmosphere

availability

Neuromarketing- between hype and reality

Marketing executives are hoping to use neuroscience to design better selling techniques.A Process (FMRI)is being exploited by savvy consulting companies intent on finding ‘the buy button in the brain’, and is on the verge of creating advertising campaigns that we will be unable to resist.

Neuromarketing- ethical concerns

“Consumer rights rest upon the assumption that consumer dignity should be respected, and that producers have a duty to treat consumers as ends in themselves, and not only as means to the end of the producer. Thus, consumer rights are inalienable entitlements to fair treatment when entering into exchanges with other parties”.

Crane and Matten (2004, p.: 268)

e.g.: consumer’s right to privacy, fair pricing and free thought and choice

“…do…advertising techniques…involve a violation of human autonomy and a manipulation and control of consumer behaviour, or do they simply provide an efficient and cost effective means of giving the consumer information on the basis of which he or she makes a free choice. Is advertisement information, or creation of desire?”

Arrington (1982)

human beings do not have a so called free will, as the brain reacts to stimuli split seconds before the human being recognises them consciously

an escape from ethical responsibility in general?

Empirical evidence: case study

Case study: Coke VS Pepsi

Blind test results: Coke 50% - Pepsi 50%

Open choice results: Coke 75% - Pepsi 25%

Brain activity is stronger when drinking Pepsi

Brain activity is stronger when seeing Coke brand

Case study: Wines priceBlind test with price in mindBoth: brain activity and satisfaction is

stronger drinking wine with higher labeled price

Marketing decisions complexity

How to make customers satisfied?

Market complexity

information overload technical complexitytoo many stores and

too little timesatisfaction is a

short lived phenomenon

ConclusionsMarket complexity and purchase decisions

irrationalityHigher customer satisfaction is not the result

of better qualityPrice is used as an indicator of product

qualityBoth quality and satisfaction have

subordination to price Marketing decisions should be more

concentrated on price rather than quality