neuromarketing nielsen webinar july11
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Neuromarketing: Understanding the Subconscious Drivers > NeuroFocus, The Nielsen Company > By Caroline Winnett, CMO and Andrew Pohlmann, Managing Partner.TRANSCRIPT
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Neuromarketing: Understanding the Subconscious Drivers
Caroline Winnett, CMO
Andrew Pohlmann, Managing Partner
NeuroFocus, The Nielsen Company
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Today’s NeuroFocus presenters
Caroline WinnettChief Marketing Officer, NeuroFocus
Caroline Winnett received her MBA from the Haas School of Business
at the University of California, Berkeley. She went on to found Albany
Associates, providing marketing services to corporate clients.
Subsequently, she was Publisher of Wilderness Press and Chief
Marketing Officer for BoardVantage. She sits on the boards of three
California corporations and is the co-author of Corporate Governance:
Five Easy Pieces.
Andrew PohlmannManaging Partner, NeuroFocus
Prior to joining NeuroFocus, Andrew served in various senior leadership
roles at JP Morgan Chase, Washington Mutual, Citigroup and Alticor
specializing in corporate strategy, product development, business
development and marketing. He was a Partner with Meridian
Consulting, and his focus has spanned various industries assisting both
institutional and consumer clients in the Americas, Europe, Asia and the
Middle East. Andrew also helped launch BoardVantage, the leading
web-based communication platform for corporate boards.
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Uncovering the subconscious link between “on-shelf” and “in-basket”
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Up to 90% of purchasing
decisions are made
subconsciously
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
7 dimensions of the shopper experience
SHOPPER EXPERIENCE
INFORMATION
INTERACTION
ENTERTAIN-MENT
EDUCATIONSIMPLICITY
SELF WORTH
COMMUNITY
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Duke/Stanford Study: Can non-conscious activation of a goal influence buying selection behavior at a later point in time?
Duke/Stanford Study
Subconscious impact on purchase behavior
Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,”
Journal of Consumer Research 35, no. 2 (8, 2008): 189-201.
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
“You notice that it is time to throw away your
cotton crew socks and buy new ones. Consider these two options:”
Hanes at $6.00 for 2 pairs
Hanes at $6.00 for 2 pairs
Nike at $5.25 for 1 pair
Nike at $5.25 for 1 pair
Duke/Stanford Study
Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,”
Journal of Consumer Research 35, no. 2 (8, 2008): 189-201.
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Impact on consumer choice
PERCENTAGE CHOOSING THE HIGHER-PRICED NIKE SOCKS
48.0%
19.2%
0%
20%
40%
60%
80%
100%
Prestige prime Thrift prime
“… none of the respondents
the general
exposure to words might have
“… none of the respondents
correctly guessed the general purpose of the study or believed that incidental
exposure to words might have altered their choice.”
Duke/Stanford Study
Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,”
Journal of Consumer Research 35, no. 2 (8, 2008): 189-201.
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Neuroscientific methods to determine subconscious drivers
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
up to 64 sensors collect data
2,000 times every secondfully capture activity across
all brain regions
high resolution EEG measures brain response
eye-tracking and
pupillometry pinpoint
hot zones
GSR(galvanic skin
response) confirms
emotion
neuroscienceapplied to marketing
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
MEMORY
formation and
strengthening of
connections in long-term
memory
ATTENTION
sustained focus and shifts in
focus over time
EMOTION
intensity of emotional
engagement
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
market performanceindicators
AWARENESSindicates something is
understandable and
comprehensible
PERSUASION / PURCHASE INTENTindicates a likelihood of attitude or
behavior change
NOVELTYindicates something is new
and worth remembering
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Copyright © 2011 The Nielsen Company Confidential and proprietary
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Measuring deep subconscious response
STEP 3:
POST STIMULIRESPONSE
STEP 1:
BASELINERESPONSE
BASELINE BRAINWAVE MEASUREMENT OF MESSAGE
ATTRIBUTES OR BRANDS
P-300 RESONANCECONFIRMS MESSAGE OR
BRAND ASSOCIATION
STEP 2:
EXPOSURE TO STIMULI
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Three distinct measurements enhance traditional measurement
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Video RealisticOff-site
Mobile EEGOn-site
3D TestingSimulator
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Testing brand performance
Understanding an individual’s
sensory response to a product
Understanding package design
and performance.
In-store displays, merchandising,
and circulars
PACKAGINGBRAND IN-STOREPRODUCT
NeuroFocus insights for Retail & Shopper Marketing
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Getting to ROI: Case studies
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Neuromarketing
Neuro-design to improve shelf performance
BEFORE AFTER
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Copyright © 2011 The Nielsen Company Confidential and proprietary
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Brain insights drove new design
Silver foil used only
around edges
Lime flavorshowcased
Harmonious choice of fonts (two fonts vs. three)
Uniform image behind textName visible on back of bottle
Clear bottle: beer is visible
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Immediate marketplace traction
-0.7
-0.6
-0.5
-0.4
-0.3
-0.2
-0.1
0.0
Lift from introduction of neuro-designed bottle
Share Point change Volume % change
New bottle introduction
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Marketplace validation – groundbreaking study of in-market effectiveness and pre-test effectiveness
Correlation between in-market effectiveness and
NeuroFocus metrics is 85%
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Copyright © 2011 The Nielsen Company Confidential and proprietary
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Practical applications of Neuromarketing
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Copyright © 2011 The Nielsen Company Confidential and proprietary
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Curves attract. Sharp edges repel.
üüDeliberate use of spikes to visualize the pain of arthritis
2010 © NeuroFocus, Inc. All Rights Reserved.
Confidential and Proprietary.
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
• Multi-sensory experiences stimulate many regions of the brain and greatly enhance the shopping experience.
• Look beyond the usual visual elements to consider the impact of touch, taste, smell and sound.
In-store: Boost purchases by engaging senses
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Neuromarketing
In-store: Round the edges
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Copyright © 2011 The Nielsen Company Confidential and proprietary
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Packaging: Connect what’s outside with what’s inside
Subconscious desire for continuity
linking product at hand with the
place/ingredients/contributors from
which it is made
Brand attributes enhanced by
information — knowledge of source equates to sense of quality
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On-shelf: Place products in environments reflecting how they will be consumed
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Display: Showcase the product characteristics
Appropriate materials
enhance the characteristics
of the products or displays.
Natural-looking materials
are especially important for
food product displays.
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Copyright © 2011 The Nielsen Company Confidential and proprietary
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Mirror neuron activationWomen respond strongly to images of people interacting
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Copyright © 2011 The Nielsen Company Confidential and proprietary
Neuromarketing
Key Takeaways
• Neuromarketing can be used to complement traditional research and marketing approaches
• Understanding subconscious factors can identify hidden and substantial improvements in the shopper experience
• Engage the senses to improve shopper engagement and purchases
• Align package design with emotional drivers to improve on-shelf
product performance
• Display products in their environment of use to increase purchase
potential