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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.”
Purchase decisions
aren’t as rational as
people think, and
they never have
been
Neuromarketing
Neuromarketing is a new
field of marketing that
studies :
consumers' sensors,
recognition,
and response,
to marketing stimulus.
The scientific background

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.“
Neuromarketing-
researching consumer behaviour
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
Sponsoring
Posters/billboards
-location
-celebrities
-duration -events

TV/ radio adverts


-channels/stations
-time slots Web adverts
-duration Freebies/
-contents
promotion extras
-location
-product choice

An Introduction to Sarah
Neuromarketing 8 Opitz
Neuromarketing-
its potential impact on advertisement
designs

Poster/billboards
Radio promotion
size sports person

balance music
information/entertainment

slogan/message colour length voice


arrangement
TV advertisement

balance information/entertainment colour arrangement

length image

product focus voice/music


An Introduction to Sarah
Neuromarketing 9 Opitz
Neuromarketing-
its potential impact on product
development
 flavour

 smell

 colour

 health/fashion
trends

 identifiying new
target groups

Sarah Opitz An Introduction to Neuromarketing 10


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

Marketing executives are hoping


to use neuroscience to design
better selling techniques.A
Process (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.
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?


Empirical evidence: case
study
Case study: Coke VS
Pepsi
Blind test results: Coke 50% - Pepsi
50%
Open choice results: Coke 75% - Pepsi
25%
Brain activity is stronger when
drinking Pepsi
Brain activity is stronger when seeing
Coke brand
Case study: Wines price
Blind test with price in mind
Both: brain activity and satisfaction is
stronger drinking wine with higher labeled
price
Marketing decisions
complexity

How to make
customers satisfied?
Market complexity
information overload
technical complexity
too many stores and
too little time
satisfaction is a short
lived phenomenon
Conclusions
Market complexity and purchase decisions
irrationality
Higher customer satisfaction is not the result
of better quality
Price is used as an indicator of product quality
Both quality and satisfaction have
subordination to price
Marketing decisions should be more
concentrated on price rather than quality