Neuromarketing-an introduction

Neuromarketing

Submitted by:Suresh TolaniVarun Choudhary

2

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 subconsciousness] between the arrival of the outside marketing stimuli and the ultimate purchase decision.”

Kotler and Keller (2006, p.:184)

3

The emergence of neuromarketing

Neuromarketing

Neuroscience

4

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)

5

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

6

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)

7

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

8

Neuromarketing-its potential impact on promotion campaigns

Posters/billboards

-location-duration

TV/ radio adverts

-channels/stations-time slots

Sponsoring

-celebrities-events

Web adverts

-duration-contents

Freebies/promotion extras-location-product choice

9

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

10

Neuromarketing-its potential impact on product development

flavour

smell

colour

health/fashion trends

identifiying new target groups

11

Neuromarketing-its potential impact on product packaging/design

logo

colour scheme

packaging materials

packaging size

limited editions

smell

12

Neuromarketing-its potential impact on distribution

shelving

product grouping

special offers

smell

music

general atmosphere

availability

13

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

14

Neuromarketing- between 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)

15

Neuromarketing- between 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-existent

16