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NEUROMARKETING
BY
GROUP NO 3
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Group Members
NEETHA
JOYSON
CHRISTOPHERALWIN
BELINDA
GURU DARSHAN
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Overview
Introduction
Unlocking the Brain
Technology UsedCase study
Impact on various marketing fields
Ethical concerns
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The brains buy button.
Inside the mind ofthe consumer;
Whats going on
in there?
THE futureof advertising?
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Why some brands have a devoted cult-like following while others have zeroloyalty?
Why and how prospects buy theproducts or services they do, even iftheir choices seem irrational orimpractical?
Why even the highest priced or lowestquality products sometimes outselltheir competitors?
Did you ever wonder?
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What is?
Neuromarketing is a field of study using
neuroscience technology, such asfunctional magnetic resonance imaging
(fMRI), to see how people'sbrains respond to advertisingand other brand-related messages.
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NEUROMARKETING is the study of the
brains 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.
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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 consumers mind
When it all began?
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How neuromarketing works?
Focus Group
Survey
Blind taste tests
Observation
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Recent advancements
fMRIBrain Wave Meaurement
Magneto
encephalography (MEG)
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Three basic measurements
Attention
Emotional engagement and
Memory retention
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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 adecision
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.
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In search for understanding
consumer behaviour
Marketing and environmental stimuli enter the consumers
consciousness [and/or sub consciousness]. A set of
psychological processes combine with certain consumer
characteristics to result in decision processes and purchasedecisions.
The marketers task is to understand what happens in the
customers consciousness [and/or unconsciousness]
between the arrival of the outside marketing stimuli and the
ultimate purchase decision.
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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 ofthe buyer (governed by the limbic system), rational buyingdecisions 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 autonomicnervous system
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Top 7 Insights ToTop 7 Insights To
Unlocking Customer'sUnlocking Customer's
Brain For Instant SalesBrain For Instant Sales
BY:BY:
JOYSON SIDNY DSOUZAJOYSON SIDNY DSOUZA
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A new field calledA new field called
NeuroMarketing --NeuroMarketing --combining neuroscience,combining neuroscience,
marketing andmarketing andtechnology -- hastechnology -- has
generated a buzz acrossgenerated a buzz across
every industry and everyevery industry and everybusiness sector.business sector.
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NeuroMarketing: It is theNeuroMarketing: It is the
Key To UnlockingKey To Unlocking
Customer's Brain?Customer's Brain?In traditional marketing, we ... "follow the provenIn traditional marketing, we ... "follow the provenformula of compelling headlines, benefits,formula of compelling headlines, benefits,satisfaction guarantee and a call to action andsatisfaction guarantee and a call to action and
your sales will skyrocket."your sales will skyrocket.""Our unconscious mind -- drives how we respond"Our unconscious mind -- drives how we respondto ads, brands and products and, ultimately,to ads, brands and products and, ultimately,drives all our buying decisions. Customers don'tdrives all our buying decisions. Customers don't
really know why they buy what they buy, whichreally know why they buy what they buy, whichis why traditional market research falls short."is why traditional market research falls short."
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The "Mammalian" (Middle) Brain: Also knownThe "Mammalian" (Middle) Brain: Also known
as the limbic system. Deals with ouras the limbic system. Deals with ouremotions, moods, memory and hormones.emotions, moods, memory and hormones.
The "Reptilian" (Old) Brain: Also known as theThe "Reptilian" (Old) Brain: Also known as the
R Complex controls our basic survivalR Complex controls our basic survivalfunctions, such as hunger, breathing, flight-functions, such as hunger, breathing, flight-
or-fight reactions and staying out of harm'sor-fight reactions and staying out of harm's
way.way.
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The "Reptilian Brain" and Profits:The "Reptilian Brain" and Profits:
7 Critical Insights company Must7 Critical Insights company Must
Know about how and why itsKnow about how and why itsCustomer BuysCustomer Buys
Our "old" brain often overrides our voiceOur "old" brain often overrides our voice
of logic and drives all buying decisionsof logic and drives all buying decisions
for reasons beyond our consciousfor reasons beyond our consciousawareness. To influence your customer'sawareness. To influence your customer's
buying decisions, you must learn howbuying decisions, you must learn how
the "old" brain operates and speak itsthe "old" brain operates and speak its"language." Below are 7 key insights"language." Below are 7 key insights
about the old brain that can add to yourabout the old brain that can add to your
bottom line.bottom line.
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1.1. The old brain is driven byThe old brain is driven by
emotions.emotions.
Our old brain operates onOur old brain operates on
autopilot -- i.e.., a stimulusautopilot -- i.e.., a stimulus
response mechanism. Emotionsresponse mechanism. Emotions
are automatic responses toare automatic responses to
sensory stimuli. The smell ofsensory stimuli. The smell of
coffee, the sound of the ocean,coffee, the sound of the ocean,
the view of a setting sun ... allthe view of a setting sun ... all
trigger an unconscioustrigger an unconscious
emotional response.emotional response.
d id h b i f"d id " th b i f
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"decides" on the basis of"decides" on the basis of
the gain vs. painthe gain vs. pain
tradeoff.tradeoff.The two basic drivers ofThe two basic drivers of
all behavior andall behavior anddecisions are: to seekdecisions are: to seek
pleasure and avoid pain.pleasure and avoid pain.
In this company shouldIn this company should
add more joy andadd more joy and
pleasure in buyingpleasure in buying 3 The old brain is highly3 The old brain is hig
hly
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3. The old brain is highly3. The old brain is highlyinfluenced by beginnings andinfluenced by beginnings and
endings.endings.
Research confirms that theResearch confirms that the
beginning and ending of anbeginning and ending of an
event or experience alters ourevent or experience alters our
perception of the entireperception of the entire
experience. Our initialexperience. Our initial
impression becomes the "filter"impression becomes the "filter"
for how we perceive what is tofor how we perceive what is to
follow. The most recentfollow. The most recent
experience leaves a finalexperience leaves a final
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4. The old brain is visually4. The old brain is visually
oriented and responds rapidly tooriented and responds rapidly to
images.images.From the moment we are born, weFrom the moment we are born, we
are able to see shadows andare able to see shadows and
associate meaning to them. Inassociate meaning to them. In
communications, we are told thatcommunications, we are told that
65% of our how our message is65% of our how our message is
received is through our physiologyreceived is through our physiology
(or visual cues). Study after study(or visual cues). Study after studyhas shown that someone's firsthas shown that someone's first
impression of you is based on yourimpression of you is based on your
physical appearance.physical appearance.
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5. The old brain perceives the5. The old brain perceives the
"pain of buying" in relative, not"pain of buying" in relative, not
absolute, terms.absolute, terms.Neuroscience tells us that theNeuroscience tells us that the
"pain" in the old brain is most"pain" in the old brain is most
activated with price. Not inactivated with price. Not inabsolute terms but rather inabsolute terms but rather in
relative terms -- such as fairnessrelative terms -- such as fairness
vs. unfairness, or alternative usesvs. unfairness, or alternative uses
of dollars. Therefore, how youof dollars. Therefore, how youpresent or frame your prices couldpresent or frame your prices could
be driving customers away.be driving customers away.
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6. The old brain understands6. The old brain understands
only what is tangible, physicalonly what is tangible, physicaland concrete.and concrete.
the old brain is constantlythe old brain is constantly
scanning for what is familiarscanning for what is familiarand tangible. It does notand tangible. It does not
understand numbers orunderstand numbers or
abstract terms, likeabstract terms, like"integrated approach" or"integrated approach" or
"comprehensive solution.""comprehensive solution."
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..over buying decisionsover buying decisions
varies from culture tovaries from culture to
culture.culture.
Adapt your marketingAdapt your marketing
communications to eachcommunications to eachculture and what part ofculture and what part of
their brain drives buyingtheir brain drives buying
decisions. Use emotionaldecisions. Use emotionalappeal with Americans;appeal with Americans;
use logic with Europeanuse logic with European
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Technology use inNeuromarketing
BY
Christopher
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Techniques used in neuromarketing include both brainimaging and brainwave measurement.
Functional magnetic resonance imaging (fMRI) and
electroencephalography (EEG), quantitative EEG,magnetoencephalography (MEG).
Some of this techniques produce detailed 3-D imageswhich highlight activity in different areas of the brain asthe subject performs an assigned task, and their
analysis have been used to assess consumer behavior.
Some of the enterprise that provide neuromarketing areEmsense, Neuroco, Neurosense Limited, Sales Brain,etc.
E l
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Example :Case Study : Product Design of Global
Auto Co.
Case :
Global Auto Co. feels that conventionalqualitative and quantitative research methodologiesare simply but not advancing their understanding ofemotional responses of customer to new designfeatures. Emotional design become a criticallyimportant area for the future success of thebusiness. But ,before ,it was not been possible tomeasure sub-conscious / emotional response.
Objectives :
Measure consumer response at a sub-consciouslevel to new design / car models.
Recommend the specific design features behindwhich to focus marketing strategies.
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Results :
Using EEG + Eye movement tracking, Neuroco
pioneered a tailor-made methodology forevaluating a score for each vehicle; a totally newquantified measure.
Additionally rated and ranked the relativeimpact, 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 specificdesign feature ,changes.
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How is it work!?
Neuromarketer usedtechnique like fMRI.
The subject in a typical willlie in the magnet and aparticular form of stimulation
will be set up. the subject may wear special
glasses so that pictures canbe shown during theexperiment. Then, MRIimages of the subject's brainare taken. Firstly, a highresolution single scan istaken. This is used as abackground for highlightingthe brain areas which are
activated by the stimulus.
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And compare thelow resolutionimages taken whenthe stimulus wasoff with thosetaken when it was
on. The final statistical
image shows abright in those
parts of the brainwhich wereactivated by thisexperiment.
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Who use neuromarketing?
Some of the high profile businesshouses like General Motors, P&G, Coca-Cola, Hallmark, Delta Airlines, Motorola,Nokia, Bank of America, Kodak etc. are
successfully using Neuromarketing toidentify what force consumer topurchase the product in order to
develop and offer most preferredproducts, services & advertisements.
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CASE STUDY ONCASE STUDY ON
NEUROMARKETINGNEUROMARKETING
By,By,
Alwin JosephAlwin Joseph
I d f h f R d M
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Coke vs. Pepsi
In a study from the group of Read Montaguepublished in 2004;
67 people had their brains scanned while being giventhe Pepsi Challenge, a blind taste test of Coca Cola
and Pepsi;
After testing ,50% choose Pepsi and it tended toproduce a stronger response than Coke in the brain'sprefrontal cortex (region thought to process feelingsof reward);
When the subjects were told they were drinkingCoke, said that Coke tasted better; their brainactivity had also changed.
The lateral prefrontal cortex, an area of the brainthat scientists say governs high-level cognitive
powers, and the hippocampus, an area related tomemory, were now being used, indicating that theconsumers were thinking about Coke and relating itto memories and other impressions.
Results showed that Pepsi should have half themarket share, but in reality consumers are buying
Coke for reasons related less to their tastepreferences and more to their experience with the
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Daimler Chrysler
A DaimlerChrysler study in Ulmshowed pictures of 66 different cars:
22 sports cars, 22 sedans and 22small cars to 12 men, with anaverage age of 31, as they lay in ascanner.
Far more than the other models,
sports cars excited areas of the brainassociated with reward andreinforcement.
Among the sports cars that generatedthe strongest brain responses: the
Ferrari 360 Modena, the BMW Z8 andthe upcoming Mercedes SLR.
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Supporters and opponents
Supporters say:
ads will be more effective byhelping consumers either buyor become more loyal to abrand It identifies audienceinterest and enablesadvertisers to be more
specific in providing productsthat consumers want Opponents say:
form of brainwashing increased incidence ofmarketing-related diseases.
more effective promotion ofdegraded values.
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Technological limitations:Technological limitations: 7% of patients/test subjects worldwide are not7% of patients/test subjects worldwide are not
suitable for brain scanssuitable for brain scans noise and density of apparatus might prevent somenoise and density of apparatus might prevent some
test subjects from taking part in experimentstest subjects from taking part in experiments falsified results due to apprehensivenessfalsified results due to apprehensiveness
apparatus is large and inflexible (artificialapparatus is large and inflexible (artificialenvironment)environment)
tests require medical supervisiontests require medical supervision due to time and money constraints, only a smalldue to time and money constraints, only a small
number of test subjects can be scannednumber of test subjects can be scanned
Limitations of Neuromarketing
G l li it tiG l li it ti
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General limitations:General limitations: accurate measurements of brain activities are limitedaccurate measurements of brain activities are limited
certain emotions cannot be clearly differentiatedcertain emotions cannot be clearly differentiated
analysis of collected data still remains an enigmaanalysis of collected data still remains an enigma
neuromarketing without future:neuromarketing without future:
Consumer behaviour cannot be recreated in laboratoryConsumer behaviour cannot be recreated in laboratory
Time & costs prevent the testing of a great number ofTime & costs prevent the testing of a great number ofindividualsindividuals
Brain activities cannot be measured against the will ofBrain activities cannot be measured against the will oftest subjectstest subjects
Ethical issues should not be solely reduced toEthical issues should not be solely reduced toneuromarketingneuromarketing
Limitations of Neuromarketing
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Potential Impact of
Neuromarketing
By,Belinda Britto
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Neuromarketing
Impact on Promotion Campaigns
Impact on Advertisement Designs
Impact on Product Development
Impact on product Packaging/Design
Impact on Distribution
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Impact on Promotion Campaigns
Posters/billboards
-location-duration
TV/ radio adverts
-channels/stations-time slots Web adverts
-duration-contents
Freebies/
promotion extras-location
-product choice
Sponsoring
-celebrities-events
http://images.google.co.uk/imgres?imgurl=http://www.sz-wholesale.com/uploadFiles/041029113906s.jpg&imgrefurl=http://www.sz-wholesale.com/shenzhen_China_products/Cola-keychain-bottle-Opener_1.htm&h=340&w=340&sz=13&hl=en&start=4&tbnid=muY0pHQeOnXhKM:&tbnh=119&tbnw=119&prev=/images%3Fq%3Dcoca-cola%2Bkeyring%26gbv%3D2%26hl%3Denhttp://lh3.google.com/_iYqk9IdgdSk/RlDTkd2qhyI/AAAAAAAACEU/qy6BlGvsEgM/s800/Day9CokeRadio.jpghttp://images.google.co.uk/imgres?imgurl=http://images-eu.amazon.com/images/P/B00009RH23.03.MZZZZZZZ.jpg&imgrefurl=http://www.cojito.de/shop_wasserglaeser_2336.htm&h=150&w=131&sz=7&hl=en&start=6&tbnid=5fWVunPeK6opOM:&tbnh=96&tbnw=84&prev=/images%3Fq%3Dcoca-cola%2Bglas%26gbv%3D2%26hl%3Den8/14/2019 Neuromarketing Pres
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Impact on Advertisement Designs
size sports person
slogan/message colour
arrangement
Poster/billboardsRadio promotion
balanceinformation/entertainment
length voice
music
TV advertisement
balance information/entertainment
length
product focus
colour arrangement
voice/music
image
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Impact on Product Development
flavour
smell
colour
health/fashion trends
identifiying newtarget groups
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Impact on product Packaging/Design
logo
colour scheme
packaging size
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Impact on Distribution
shelving
product grouping
special offers
music
general atmosphere
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ETHICAL CONCERNS
BYGURU DARSHAN
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Neuroethics of neuromarketing
Protection of research subjects Protection of vulnerable niche
populations from marketing exploitation
Full disclosure of goals, risks, andbenefits
Accurate media and marketing
representation
Internal and external validity
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Thank you !!!
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Discussion
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