neuromarketing an introduction

Neuromarketing-an introduction

Neuromarketing-an introduction

An Introduction to Neuromarketing 2Sarah Opitz

Introduction

“I know that half the money I spend on advertising is wasted, I just do not

know which half.”John Wannamaker (1876)


In search for understanding consumer behaviour

“Marketing and environmental stimuli enter the consumer’s consciousness [and/or subconsciousness]. A set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions.

The marketer’s task is to understand what happens in the customer’s consciousness… [and/or unconsciousness] between the arrival of the outside marketing stimuli and the ultimate purchase decision.”

Kotler and Keller (2006, p.:184)


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.”

Mucha (2005, p.: 36)


The scientific background (1) fMRI - functional Magnetic Resonance Imaging

developed in the early 90s

apparatus allows the precise tracing of areas activated in thebrain responding to stimuli

3D-Encode: activated regions appear in multiple colour

originally applied to detect the locationof illnesses, e.g. headaches, paralysis

and seizures in the human brain


The scientific background (2) QEEG – quantified electroencephalography

(an alternative to fMRI)

„…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.“

Lewis (2005/2006, p.:5)


Neuromarketing- researching consumer behaviour (1)

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


Neuromarketing- linking science and marketing

overconsumption and compulsive shopping can be traced back to a dysfunction of the orbitofrontal cortex (ORF)

Leake (2006)

impulsive buying decisions are based on the emotional state of the buyer (governed by the limbic system), rational buying decisions are processed in the frontal cortex

Mucha (2005)

memory retention is processed in the amygdale and ventro-medial lobes (VFML)

Ambler, Ionnides and Rose (2000)

irrational buying and selling is associated with the autonomic nervous system

Peterson (2005)


Neuromarketing-its potential impact on promotion campaignsPosters/billboards-location-duration

TV/ radio adverts-channels/stations-time slots

Sponsoring-celebrities-events

Web adverts-duration-contents

Freebies/promotion extras-location-product choice

http://lh3.google.com/_iYqk9IdgdSk/RlDTkd2qhyI/AAAAAAAACEU/qy6BlGvsEgM/s800/Day9CokeRadio.jpg

http://images.google.co.uk/imgres?imgurl=http://www.sz-wholesale.com/uploadFiles/041029113906s.jpg&imgrefurl=http://www.sz-wholesale.com/shenzhen_China_products/Cola-keychain-bottle-Opener_1.htm&h=340&w=340&sz=13&hl=en&start=4&tbnid=muY0pHQeOnXhKM:&tbnh=119&tbnw=119&prev=/images%3Fq%3Dcoca-cola%2Bkeyring%26gbv%3D2%26hl%3Den


Neuromarketing-its potential impact on advertisement designs

sports person

colour arrangement

slogan/message

size

Poster/billboardsRadio promotion

music

voicelength

balance information/entertainment

TV advertisement

colour arrangement

image

voice/music

balance information/entertainment

length

product focus


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 (1)

Technological limitations: 7% of patients/test subjects worldwide are not suitable for brain scans noise and density of apparatus might prevent some test subjects from taking part in

experiments falsified results due to apprehensiveness apparatus is large and inflexible (artificial environment) tests require medical supervision due to time and money constraints, only a small number of test subjects can be scanned

General limitations: accurate measurements of brain activities are limited Michel (2004/2005) certain emotions cannot be clearly differentiated Kurfer (2006) analysis of collected data still remains an enigma Reynolds (2006), Ahlert (2005) neuromarketing without future: Walter, Adler, Ciaramidaro and Erk (2005)

1. Consumer behaviour cannot be recreated in laboratory2. Time & costs prevent the testing of a great number of individuals3. Brain activities cannot be measured against the will of test subjects4. Ethical issues should not be solely reduced to neuromarketing



“…marketing executives are hoping to use neuroscience to design better selling techniques. […]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.”

Editorial of nature neuroscience (2004, p.: 683)



it appears to be less transforming the existing fundamentals of the marketing discipline, as it is rather a neuro-scientific consumer research technique, with the potential to add significantly to marketers‘ current understanding of consumer behaviour

it introduces the subconscious perspective with the potential to reform and extend quantitative research

it might be the first technique, which allows the inclusion of the environment into quantitative research

a response error of test subject is non-existent


Neuromarketing- ethical concerns

“We can sell these people refrigerators. They may not have room for them, and they will put

them on the front porch. They will buy a big automobile and all the luxuries, but they

never move up the scale.”

Chicago ad executive, cited from V. Packard (1981, p.: 99)


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? Traindl (2005)

neuromarketing an introduction

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