Neuromarketing

Neuromarketingan introductionSubmitted by: Suresh Tolani Varun Choudhary

In search for understanding consumer behaviourMarketing and environmental stimuli enter the consumers consciousness [and/or subconsciousness]. A set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. The marketers task is to understand what happens in the customers consciousness [and/or subconsciousness] between the arrival of the outside marketing stimuli and the ultimate purchase decision.Kotler and Keller (2006, p.:184)2

The emergence of neuromarketing

Neuromarketing

Neuroscience

3

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)

4

The scientific background (1)

fMRI - functional Magnetic Resonance Imagingdeveloped in the early 90s apparatus allows the precise tracing of areas activated in the brain responding to stimuli 3D-Encode: activated regions appear in multiple colour originally applied to detect the location of illnesses, e.g. headaches, paralysis and seizures in the human brain5

The scientific background (2)

QEEG quantified electroencephalography(an alternative to fMRI)

established that aspects 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)

6

Neuromarketingresearching 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 consumers brain7

Neuromarketingits potential impact on promotion campaignsPosters/billboards-location -duration

Sponsoring -celebrities-events

TV/ radio adverts -channels/stations-time slots

Web adverts -duration-contents

Freebies/ promotion extras-location -product choice

8

Neuromarketingits potential impact on advertisement designsPoster/billboards Radio promotionsize sports person balance information/entertainment music

slogan/message

colour arrangement

length

voice

TV advertisementbalance information/entertainment length product focus colour arrangement image voice/music9

Neuromarketingits potential impact on product development

flavour smell colour health/fashion trends identifiying new target groups

10

Neuromarketingits potential impact on product packaging/design

logo colour scheme packaging materials packaging size limited editions smell

11

Neuromarketingits potential impact on distribution

shelving product grouping special offers smell music general atmosphere availability12

Neuromarketingbetween 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 certain emotions cannot be clearly differentiated analysis of collected data still remains an enigma neuromarketing without future:1. 2. 3. 4.

Michel (2004/2005) Kurfer (2006) Reynolds (2006), Ahlert (2005) Walter, Adler, Ciaramidaro and Erk (2005)

Consumer behaviour cannot be recreated in laboratory Time & costs prevent the testing of a great number of individuals Brain activities cannot be measured against the will of test subjects Ethical issues should not be solely reduced to neuromarketing

13

Neuromarketingbetween hype and reality (2)

marketing executives are hoping to use neuroscience to design better selling techniques. []neuroscience techniques are 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)14

Neuromarketingbetween hype and reality (3)

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-existent15

16