neuromarketing pres

8/14/2019 Neuromarketing Pres

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NEUROMARKETING

BY

GROUP NO 3


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Group Members

NEETHA

JOYSON

CHRISTOPHERALWIN

BELINDA

GURU DARSHAN


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Overview

Introduction

Unlocking the Brain

Technology UsedCase study

Impact on various marketing fields

Ethical concerns


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The brains buy button.

Inside the mind ofthe consumer;

Whats going on

in there?

THE futureof advertising?


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Why some brands have a devoted cult-like following while others have zeroloyalty?

Why and how prospects buy theproducts or services they do, even iftheir choices seem irrational orimpractical?

Why even the highest priced or lowestquality products sometimes outselltheir competitors?

Did you ever wonder?


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What is?

Neuromarketing is a field of study using

neuroscience technology, such asfunctional magnetic resonance imaging

(fMRI), to see how people'sbrains respond to advertisingand other brand-related messages.


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NEUROMARKETING is the study of the

brains responses to advertising, the

brands encountered in our daily lives, and

all the associated messages and images

that are strewn throughout the cultural

landscape of everyday life.


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In 1915, series of experiments conducted

to determine purchasing patterns, and

consumer behavior.

Ad campaigns since then have all been

based, in some form or another, on an

understanding of the consumers mind

When it all began?


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How neuromarketing works?

Focus Group

Survey

Blind taste tests

Observation


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Recent advancements

fMRIBrain Wave Meaurement

Magneto

encephalography (MEG)


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Three basic measurements

Attention

Emotional engagement and

Memory retention


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Two sides of the brain

One part of the brain that influences feelings,

while another influences thought

Both parts of the brain can work at cross

purposes during the process of making adecision

Neuromarketing decodes these processes and

converts marketing messages into a language

that appeals to the different parts of the brain

and motivates a decision in your favor.


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In search for understanding

consumer behaviour

Marketing and environmental stimuli enter the consumers

consciousness [and/or sub consciousness]. A set of

psychological processes combine with certain consumer

characteristics to result in decision processes and purchasedecisions.

The marketers task is to understand what happens in the

customers consciousness [and/or unconsciousness]

between the arrival of the outside marketing stimuli and the

ultimate purchase decision.


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Neuromarketing-

linking science and marketing overconsumption and compulsive shopping can be traced back

to a dysfunction of the orbitofrontal cortex (ORF)

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

memory retention is processed in the amygdale and ventro-

medial lobes (VFML)

irrational buying and selling is associated with the autonomicnervous system


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Top 7 Insights ToTop 7 Insights To

Unlocking Customer'sUnlocking Customer's

Brain For Instant SalesBrain For Instant Sales

BY:BY:

JOYSON SIDNY DSOUZAJOYSON SIDNY DSOUZA


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A new field calledA new field called

NeuroMarketing --NeuroMarketing --combining neuroscience,combining neuroscience,

marketing andmarketing andtechnology -- hastechnology -- has

generated a buzz acrossgenerated a buzz across

every industry and everyevery industry and everybusiness sector.business sector.


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NeuroMarketing: It is theNeuroMarketing: It is the

Key To UnlockingKey To Unlocking

Customer's Brain?Customer's Brain?In traditional marketing, we ... "follow the provenIn traditional marketing, we ... "follow the provenformula of compelling headlines, benefits,formula of compelling headlines, benefits,satisfaction guarantee and a call to action andsatisfaction guarantee and a call to action and

your sales will skyrocket."your sales will skyrocket.""Our unconscious mind -- drives how we respond"Our unconscious mind -- drives how we respondto ads, brands and products and, ultimately,to ads, brands and products and, ultimately,drives all our buying decisions. Customers don'tdrives all our buying decisions. Customers don't

really know why they buy what they buy, whichreally know why they buy what they buy, whichis why traditional market research falls short."is why traditional market research falls short."


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The "Mammalian" (Middle) Brain: Also knownThe "Mammalian" (Middle) Brain: Also known

as the limbic system. Deals with ouras the limbic system. Deals with ouremotions, moods, memory and hormones.emotions, moods, memory and hormones.

The "Reptilian" (Old) Brain: Also known as theThe "Reptilian" (Old) Brain: Also known as the

R Complex controls our basic survivalR Complex controls our basic survivalfunctions, such as hunger, breathing, flight-functions, such as hunger, breathing, flight-

or-fight reactions and staying out of harm'sor-fight reactions and staying out of harm's

way.way.


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The "Reptilian Brain" and Profits:The "Reptilian Brain" and Profits:

7 Critical Insights company Must7 Critical Insights company Must

Know about how and why itsKnow about how and why itsCustomer BuysCustomer Buys

Our "old" brain often overrides our voiceOur "old" brain often overrides our voice

of logic and drives all buying decisionsof logic and drives all buying decisions

for reasons beyond our consciousfor reasons beyond our consciousawareness. To influence your customer'sawareness. To influence your customer's

buying decisions, you must learn howbuying decisions, you must learn how

the "old" brain operates and speak itsthe "old" brain operates and speak its"language." Below are 7 key insights"language." Below are 7 key insights

about the old brain that can add to yourabout the old brain that can add to your

bottom line.bottom line.


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1.1. The old brain is driven byThe old brain is driven by

emotions.emotions.

Our old brain operates onOur old brain operates on

autopilot -- i.e.., a stimulusautopilot -- i.e.., a stimulus

response mechanism. Emotionsresponse mechanism. Emotions

are automatic responses toare automatic responses to

sensory stimuli. The smell ofsensory stimuli. The smell of

coffee, the sound of the ocean,coffee, the sound of the ocean,

the view of a setting sun ... allthe view of a setting sun ... all

trigger an unconscioustrigger an unconscious

emotional response.emotional response.

d id h b i f"d id " th b i f


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"decides" on the basis of"decides" on the basis of

the gain vs. painthe gain vs. pain

tradeoff.tradeoff.The two basic drivers ofThe two basic drivers of

all behavior andall behavior anddecisions are: to seekdecisions are: to seek

pleasure and avoid pain.pleasure and avoid pain.

In this company shouldIn this company should

add more joy andadd more joy and

pleasure in buyingpleasure in buying 3 The old brain is highly3 The old brain is hig

hly


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3. The old brain is highly3. The old brain is highlyinfluenced by beginnings andinfluenced by beginnings and

endings.endings.

Research confirms that theResearch confirms that the

beginning and ending of anbeginning and ending of an

event or experience alters ourevent or experience alters our

perception of the entireperception of the entire

experience. Our initialexperience. Our initial

impression becomes the "filter"impression becomes the "filter"

for how we perceive what is tofor how we perceive what is to

follow. The most recentfollow. The most recent

experience leaves a finalexperience leaves a final


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4. The old brain is visually4. The old brain is visually

oriented and responds rapidly tooriented and responds rapidly to

images.images.From the moment we are born, weFrom the moment we are born, we

are able to see shadows andare able to see shadows and

associate meaning to them. Inassociate meaning to them. In

communications, we are told thatcommunications, we are told that

65% of our how our message is65% of our how our message is

received is through our physiologyreceived is through our physiology

(or visual cues). Study after study(or visual cues). Study after studyhas shown that someone's firsthas shown that someone's first

impression of you is based on yourimpression of you is based on your

physical appearance.physical appearance.


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5. The old brain perceives the5. The old brain perceives the

"pain of buying" in relative, not"pain of buying" in relative, not

absolute, terms.absolute, terms.Neuroscience tells us that theNeuroscience tells us that the

"pain" in the old brain is most"pain" in the old brain is most

activated with price. Not inactivated with price. Not inabsolute terms but rather inabsolute terms but rather in

relative terms -- such as fairnessrelative terms -- such as fairness

vs. unfairness, or alternative usesvs. unfairness, or alternative uses

of dollars. Therefore, how youof dollars. Therefore, how youpresent or frame your prices couldpresent or frame your prices could

be driving customers away.be driving customers away.


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6. The old brain understands6. The old brain understands

only what is tangible, physicalonly what is tangible, physicaland concrete.and concrete.

the old brain is constantlythe old brain is constantly

scanning for what is familiarscanning for what is familiarand tangible. It does notand tangible. It does not

understand numbers orunderstand numbers or

abstract terms, likeabstract terms, like"integrated approach" or"integrated approach" or

"comprehensive solution.""comprehensive solution."


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..over buying decisionsover buying decisions

varies from culture tovaries from culture to

culture.culture.

Adapt your marketingAdapt your marketing

communications to eachcommunications to eachculture and what part ofculture and what part of

their brain drives buyingtheir brain drives buying

decisions. Use emotionaldecisions. Use emotionalappeal with Americans;appeal with Americans;

use logic with Europeanuse logic with European


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Technology use inNeuromarketing

BY

Christopher


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Techniques used in neuromarketing include both brainimaging and brainwave measurement.

Functional magnetic resonance imaging (fMRI) and

electroencephalography (EEG), quantitative EEG,magnetoencephalography (MEG).

Some of this techniques produce detailed 3-D imageswhich highlight activity in different areas of the brain asthe subject performs an assigned task, and their

analysis have been used to assess consumer behavior.

Some of the enterprise that provide neuromarketing areEmsense, Neuroco, Neurosense Limited, Sales Brain,etc.

E l


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Example :Case Study : Product Design of Global

Auto Co.

Case :

Global Auto Co. feels that conventionalqualitative and quantitative research methodologiesare simply but not advancing their understanding ofemotional responses of customer to new designfeatures. Emotional design become a criticallyimportant area for the future success of thebusiness. But ,before ,it was not been possible tomeasure sub-conscious / emotional response.

Objectives :

Measure consumer response at a sub-consciouslevel to new design / car models.

Recommend the specific design features behindwhich to focus marketing strategies.


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Results :

Using EEG + Eye movement tracking, Neuroco

pioneered a tailor-made methodology forevaluating a score for each vehicle; a totally newquantified measure.

Additionally rated and ranked the relativeimpact, interest & emotional appeal of:

the overall vehicle

different views of the vehicle and

specific features both exterior / interior

The importance of different sensory elements to

design perceptions was explored like sound,touch.

Clear recommendations were made on specificdesign feature ,changes.


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How is it work!?

Neuromarketer usedtechnique like fMRI.

The subject in a typical willlie in the magnet and aparticular form of stimulation

will be set up. the subject may wear special

glasses so that pictures canbe shown during theexperiment. Then, MRIimages of the subject's brainare taken. Firstly, a highresolution single scan istaken. This is used as abackground for highlightingthe brain areas which are

activated by the stimulus.


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And compare thelow resolutionimages taken whenthe stimulus wasoff with thosetaken when it was

on. The final statistical

image shows abright in those

parts of the brainwhich wereactivated by thisexperiment.


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Who use neuromarketing?

Some of the high profile businesshouses like General Motors, P&G, Coca-Cola, Hallmark, Delta Airlines, Motorola,Nokia, Bank of America, Kodak etc. are

successfully using Neuromarketing toidentify what force consumer topurchase the product in order to

develop and offer most preferredproducts, services & advertisements.


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CASE STUDY ONCASE STUDY ON

NEUROMARKETINGNEUROMARKETING

By,By,

Alwin JosephAlwin Joseph

I d f h f R d M


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Coke vs. Pepsi

In a study from the group of Read Montaguepublished in 2004;

67 people had their brains scanned while being giventhe Pepsi Challenge, a blind taste test of Coca Cola

and Pepsi;

After testing ,50% choose Pepsi and it tended toproduce a stronger response than Coke in the brain'sprefrontal cortex (region thought to process feelingsof reward);

When the subjects were told they were drinkingCoke, said that Coke tasted better; their brainactivity had also changed.

The lateral prefrontal cortex, an area of the brainthat scientists say governs high-level cognitive

powers, and the hippocampus, an area related tomemory, were now being used, indicating that theconsumers were thinking about Coke and relating itto memories and other impressions.

Results showed that Pepsi should have half themarket share, but in reality consumers are buying

Coke for reasons related less to their tastepreferences and more to their experience with the


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Daimler Chrysler

A DaimlerChrysler study in Ulmshowed pictures of 66 different cars:

22 sports cars, 22 sedans and 22small cars to 12 men, with anaverage age of 31, as they lay in ascanner.

Far more than the other models,

sports cars excited areas of the brainassociated with reward andreinforcement.

Among the sports cars that generatedthe strongest brain responses: the

Ferrari 360 Modena, the BMW Z8 andthe upcoming Mercedes SLR.
http://www.youtube.com/watch?v=S0ht2mma3YY


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Supporters and opponents

Supporters say:

ads will be more effective byhelping consumers either buyor become more loyal to abrand It identifies audienceinterest and enablesadvertisers to be more

specific in providing productsthat consumers want Opponents say:

form of brainwashing increased incidence ofmarketing-related diseases.

more effective promotion ofdegraded values.


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Technological limitations:Technological limitations: 7% of patients/test subjects worldwide are not7% of patients/test subjects worldwide are not

suitable for brain scanssuitable for brain scans noise and density of apparatus might prevent somenoise and density of apparatus might prevent some

test subjects from taking part in experimentstest subjects from taking part in experiments falsified results due to apprehensivenessfalsified results due to apprehensiveness

apparatus is large and inflexible (artificialapparatus is large and inflexible (artificialenvironment)environment)

tests require medical supervisiontests require medical supervision due to time and money constraints, only a smalldue to time and money constraints, only a small

number of test subjects can be scannednumber of test subjects can be scanned

Limitations of Neuromarketing

G l li it tiG l li it ti


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General limitations:General limitations: accurate measurements of brain activities are limitedaccurate measurements of brain activities are limited

certain emotions cannot be clearly differentiatedcertain emotions cannot be clearly differentiated

analysis of collected data still remains an enigmaanalysis of collected data still remains an enigma

neuromarketing without future:neuromarketing without future:

Consumer behaviour cannot be recreated in laboratoryConsumer behaviour cannot be recreated in laboratory

Time & costs prevent the testing of a great number ofTime & costs prevent the testing of a great number ofindividualsindividuals

Brain activities cannot be measured against the will ofBrain activities cannot be measured against the will oftest subjectstest subjects

Ethical issues should not be solely reduced toEthical issues should not be solely reduced toneuromarketingneuromarketing

Limitations of Neuromarketing


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Potential Impact of

Neuromarketing

By,Belinda Britto


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Neuromarketing

Impact on Promotion Campaigns

Impact on Advertisement Designs

Impact on Product Development

Impact on product Packaging/Design

Impact on Distribution


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Impact on Promotion Campaigns

Posters/billboards

-location-duration

TV/ radio adverts

-channels/stations-time slots Web adverts

-duration-contents

Freebies/

promotion extras-location

-product choice

Sponsoring

-celebrities-events
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%3Denhttp://lh3.google.com/_iYqk9IdgdSk/RlDTkd2qhyI/AAAAAAAACEU/qy6BlGvsEgM/s800/Day9CokeRadio.jpghttp://images.google.co.uk/imgres?imgurl=http://images-eu.amazon.com/images/P/B00009RH23.03.MZZZZZZZ.jpg&imgrefurl=http://www.cojito.de/shop_wasserglaeser_2336.htm&h=150&w=131&sz=7&hl=en&start=6&tbnid=5fWVunPeK6opOM:&tbnh=96&tbnw=84&prev=/images%3Fq%3Dcoca-cola%2Bglas%26gbv%3D2%26hl%3Den


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Impact on Advertisement Designs

size sports person

slogan/message colour

arrangement

Poster/billboardsRadio promotion

balanceinformation/entertainment

length voice

music

TV advertisement

balance information/entertainment

length

product focus

colour arrangement

voice/music

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


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Impact on Product Development

flavour

smell

colour

health/fashion trends

identifiying newtarget groups


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Impact on product Packaging/Design

logo

colour scheme

packaging size


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Impact on Distribution

shelving

product grouping

special offers

music

general atmosphere


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ETHICAL CONCERNS

BYGURU DARSHAN


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Neuroethics of neuromarketing

Protection of research subjects Protection of vulnerable niche

populations from marketing exploitation

Full disclosure of goals, risks, andbenefits

Accurate media and marketing

representation

Internal and external validity


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Thank you !!!


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Discussion

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