Neuro Marketing

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.“

Neuromarketingresearching 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

-celebrities

-location -duration

-events

TV/ radio adverts -channels/stations -time slots

Web adverts -duration -contents

Freebies/ promotion extras -location -product choice

An Introduction to Neuromarketing

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Sarah Opitz

Neuromarketingits potential impact on advertisement designs Poster/billboards Radio promotion size

sports person music

balance information/entertainment

slogan/message

colour arrangement

balance information/entertainment length product focus An Introduction to Neuromarketing

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length

voice

TV advertisement colour arrangement image voice/music Sarah Opitz

Neuromarketingits potential impact on product development  flavour  smell  colour  health/fashion

trends  identifiying new

target groups

Sarah Opitz

An Introduction to Neuromarketing

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Neuromarketing-

its potential impact on product packaging/design  logo  colour scheme  packaging

materials

 packaging size  limited editions  smell

Neuromarketingits potential impact on distribution  shelving  product grouping  special offers  smell  music  general

atmosphere

 availability

Neuromarketingbetween 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.

Neuromarketingethical 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