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NEUROMARKETING

BY
GROUP NO 3
Group Members
NEETHA
JOYSON
CHRISTOPHER
ALWIN
BELINDA
GURU DARSHAN
Overview
Introduction
Unlocking the Brain
Technology Used
Case study
Impact on various marketing fields
Ethical concerns
THE future
of advertising?

Inside the mind of


the consumer;

What’s going on
in there?

The brain’s “buy button”.


• Why some brands have a devoted cult-
like following while others have zero
loyalty?

• Why and how prospects buy the


products or services they do, even if
their choices seem irrational or
impractical?

• Why even the highest priced or lowest


quality products sometimes outsell
their competitors?

Did you ever wonder?


“Neuromarketing is a field of study using
neuroscience technology, such as
functional magnetic resonance imaging
(fMRI), how people's
to see
brains respond to advertising
and other brand-related messages”.

What is?
• NEUROMARKETING is the study of the
brain’s 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.
When it all began?

• 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 consumer’s mind
Focus Group

Blind taste tests


Survey

Observation

How neuromarketing works?


fMRI
Brain Wave Meaurement

Magneto
encephalography (MEG)

Recent advancements
Three basic measurements
• Attention
• Emotional engagement and
• Memory retention
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 a
decision
• 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.
In search for understanding
consumer behaviour
“Marketing and environmental stimuli enter the consumer’s
consciousness [and/or sub consciousness]. 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 unconsciousness]
between the arrival of the outside marketing stimuli and the
ultimate purchase decision.”
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
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 of


the buyer (governed by the limbic system), rational buying
decisions 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 autonomic
nervous system
Top 7 Insights To
Unlocking Customer's
Brain For Instant Sales

BY:
JOYSON SIDNY D’SOUZA
A new field called
NeuroMarketing --
combining neuroscience,
marketing and
technology -- has
generated a buzz across
every industry and every
business sector.
NeuroMarketing: It is the
Key To Unlocking
Customer's Brain?
In traditional marketing, we ... "follow the proven
formula of compelling headlines, benefits,
satisfaction guarantee and a call to action and
your sales will skyrocket."
"Our unconscious mind -- drives how we respond
to ads, brands and products and, ultimately,
drives all our buying decisions. Customers don't
really know why they buy what they buy, which
is why traditional market research falls short."
According to neuroscientists,
there are 3 main parts to the
brain, each functioning as a
brain unto itself. These "three
brains" - nestled inside one
The "Human" ("New" or outer-most) Brain: Most evolved part of the
another
brain known as--
the are as follows.

cortex. Responsible for logic, learning, language,
conscious thoughts and our personalities.
 The "Mammalian" (Middle) Brain: Also known
as the limbic system. Deals with our
emotions, moods, memory and hormones.

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


R Complex controls our basic survival
functions, such as hunger, breathing, flight-
or-fight reactions and staying out of harm's
way.
The "Reptilian Brain" and Profits:
7 Critical Insights company Must
Know about how and why its
Customer Buys
Our "old" brain often overrides our voice
of logic and drives all buying decisions
for reasons beyond our conscious
awareness. To influence your customer's
buying decisions, you must learn how
the "old" brain operates and speak its
"language." Below are 7 key insights
about the old brain that can add to your
bottom line.
1. The old brain is driven by
emotions.
Our old brain operates on
autopilot -- i.e.., a stimulus
response mechanism. Emotions
are automatic responses to
sensory stimuli. The smell of
coffee, the sound of the ocean,
the view of a setting sun ... all
trigger an unconscious
emotional response.
"decides" on the basis of
the gain vs. pain
tradeoff.
The two basic drivers of
all behavior and
decisions are: to seek
pleasure and avoid pain.
In this company should
add more joy and
pleasure in buying
3. The old brain is highly
influenced by beginnings and
endings.
Research confirms that the
beginning and ending of an
event or experience alters our
perception of the entire
experience. Our initial
impression becomes the "filter"
for how we perceive what is to
follow. The most recent
experience leaves a final
4. The old brain is visually
oriented and responds rapidly to
images.
From the moment we are born, we
are able to see shadows and
associate meaning to them. In
communications, we are told that
65% of our how our message is
received is through our physiology
(or visual cues). Study after study
has shown that someone's first
impression of you is based on your
physical appearance.
5. The old brain perceives the
"pain of buying" in relative, not
absolute, terms.
Neuroscience tells us that the
"pain" in the old brain is most
activated with price. Not in
absolute terms but rather in
relative terms -- such as fairness
vs. unfairness, or alternative uses
of dollars. Therefore, how you
present or frame your prices could
be driving customers away.
6. The old brain understands
only what is tangible, physical
and concrete.
the old brain is constantly
scanning for what is familiar
and tangible. It does not
understand numbers or
abstract terms, like
"integrated approach" or
"comprehensive solution."
7. The old brain's control
over buying decisions
varies from culture to
culture.
Adapt your marketing
communications to each
culture and what part of
their brain drives buying
decisions. Use emotional
appeal with Americans;
use logic with European
Technology use in
Neuromarketing
BY
Christopher
• Techniques used in neuromarketing include both brain
imaging and brainwave measurement.
• Functional magnetic resonance imaging (fMRI) and
electroencephalography (EEG), quantitative EEG,
magnetoencephalography (MEG).
• Some of this techniques produce detailed 3-D images
which highlight activity in different areas of the brain as
the subject performs an assigned task, and their
analysis have been used to assess consumer behavior.
• Some of the enterprise that provide neuromarketing are
Emsense, Neuroco, Neurosense Limited, Sales Brain,etc.
Example :
Case Study : Product Design of Global
Auto Co.
• Case :

Global Auto Co. feels that conventional


qualitative and quantitative research methodologies
are simply but not advancing their understanding of
emotional responses of customer to new design
features. Emotional design become a critically
important area for the future success of the
business. But ,before ,it was not been possible to
measure sub-conscious / emotional response.
Objectives :

• Measure consumer response at a sub-conscious


level to new design / car models.
• Recommend the specific design features behind
which to focus marketing strategies.
Results :

• Using EEG + Eye movement tracking, Neuroco


pioneered a tailor-made methodology for
evaluating a score for each vehicle; a totally new
quantified measure.
Additionally rated and ranked the relative
impact, 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 specific
design feature ,changes.
How is it work!?
• Neuromarketer used
technique like fMRI.
• The subject in a typical will
lie in the magnet and a
particular form of stimulation
will be set up.
• the subject may wear special
glasses so that pictures can
be shown during the
experiment. Then, MRI
images of the subject's brain
are taken. Firstly, a high
resolution single scan is
taken. This is used as a
background for highlighting
the brain areas which are
activated by the stimulus.
• Next a series of low resolution scans
are taken over time, for example 150
scan on every 5 second. For some of
these scans, the stimulus will be
presented, and for some it will be
absent.
• After the experiment, the raw input
images from the MRI scanner require
mathematical transformation to
reconstruct the images into 'real
space', so that the images look like
brains.
• And compare the
low resolution
images taken when
the stimulus was
off with those
taken when it was
on.
• The final statistical
image shows a
bright in those
parts of the brain
which were
activated by this
experiment.
Who use neuromarketing?
Some of the high profile business
houses like General Motors, P&G, Coca-
Cola, Hallmark, Delta Airlines, Motorola,
Nokia, Bank of America, Kodak etc. are
successfully using Neuromarketing to
identify what force consumer to
purchase the product in order to
develop and offer most preferred
products, services & advertisements.
CASE STUDY ON
NEUROMARKETING
By,
Alwin Joseph
In a study from the group of Read Montague
published in 2004;

67 people had their brains scanned while being given


the “Pepsi Challenge”, a blind taste test of Coca Cola
and Pepsi;

After testing ,50% choose Pepsi and it tended to


produce a stronger response than Coke in the brain's
prefrontal cortex (region thought to process feelings
of reward);

When the subjects were told they were drinking


Coke, ¾ said that Coke tasted better; their brain
activity had also changed.

The “lateral prefrontal cortex”, an area of the brain


that scientists say governs high-level cognitive
powers, and the hippocampus, an area related to
memory, were now being used, indicating that the
consumers were thinking about Coke and relating it
to memories and other impressions.

Coke vs. Pepsi


Results showed that Pepsi should have half the
market share, but in reality consumers are buying
Coke for reasons related less to their taste
preferences and more to their experience with the
A DaimlerChrysler study in Ulm
showed pictures of 66 different cars:

22 sports cars, 22 sedans and 22


small cars to 12 men, with an
average age of 31, as they lay in a
scanner.

Far more than the other models,


sports cars excited areas of the brain
associated with reward and
reinforcement.

Among the sports cars that generated


the strongest brain responses: the
Ferrari 360 Modena, the BMW Z8 and
the upcoming Mercedes SLR.

Daimler Chrysler
Supporters say:

• ads will be more effective by


helping consumers either buy
or become more loyal to a
brand
• It identifies audience
interest and enables
advertisers to be more
specific in providing products
that consumers want Opponents say:
• form of “brainwashing”
• increased incidence of
marketing-related diseases.
• more effective promotion of
degraded values.

Supporters and opponents


 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

Limitations of Neuromarketing
 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:
 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

Limitations of Neuromarketing
Potential Impact of
Neuromarketing

By,
Belinda Britto
Neuromarketing

• Impact on Promotion Campaigns

• Impact on Advertisement Designs

• Impact on Product Development

• Impact on product Packaging/Design

• Impact on Distribution
Impact on Promotion Campaigns

Sponsoring
Posters/billboards
-location
-celebrities
-duration -events

TV/ radio adverts


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

Poster/billboards
Radio promotion

size sports person

balance
information/entertainment music

slogan/message colour length voice


arrangement
TV advertisement

balance information/entertainment colour arrangement

length image

product focus voice/music


Impact on Product Development
• flavour

• smell

• colour

• health/fashion trends

• identifiying new
target groups
Impact on product Packaging/Design

logo

colour scheme

packaging size

Impact on Distribution

• shelving

• product grouping

• special offers

• music

• general atmosphere
ETHICAL CONCERNS

BY
GURU DARSHAN
Neuroethics of neuromarketing
• Protection of research subjects
• Protection of vulnerable niche
populations from marketing exploitation
• Full disclosure of goals, risks, and
benefits
• Accurate media and marketing
representation
• Internal and external validity
Conclusion

Neuromarketing will be far more socially welcome for


applications that focus on products and causes with a clear
social benefit - applications like road safety messages and
persuading people to give up smoking or to resist over-eating.
Developing and testing strategies that are designed to cure
rather than giving social hazard. Used in this type of
application, neuromarketing will be refined to public applause,
rather than public alarm.
Thank you !!!
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