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Neuromarketing & its essence

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  1. 1. • CONTENTS • What is Neuromarketing? • How neuromarketing emerged? • Purpose of Neuromarketing • Neuroscience & Brain’s working system. • The Methods used in neuromarketing • Some researches on neuromarketing • The Books & Authors related to neuromarketing • Pros & Cons of Neuromarketing
  2. 2. • Neuromarketing is a field that claims to apply the principles of neuroscience to marketing research, studying consumers' sensorimotor, cognitive, and affective response to marketing stimuli. Researchers use technologies such as functional magnetic resonance imaging (fMRI) to measure changes in activity in parts of the brain, electroencephalography (EEG) and Steady state topography (SST) to measure activity in specific regional spectra of the brain response; sensors to measure changes in one's physiological state, also known as biometrics, including heart rate, respiratory rate, and galvanic skin response; facial coding to categorize the physical expression of emotion; or eye tracking to identify focal attention - all in order to learn why consumers make the decisions they do, and which brain areas are responsible (Wikipedia)
  3. 3. • Neuromarketing is the application of neuroscience to marketing. Neuromarketing includes the direct use of brain imaging, scanning, or other brain activity measurement technology to measure a subject’s response to specific products, packaging, advertising, or other marketing elements. In some cases, the brain responses measured by these techniques may not be consciously perceived by the subject; hence, this data may be more revealing than self-reporting on surveys, in focus groups, etc. Roger Dooley
  4. 4. • Neuromarketing – Selling to the Old Brain for Instant Success Patrick Renvoise and Christophe Morin. Neuromarketing is the study of how people's brains respond to advertising and other brand-related messages by scientifically monitoring brainwave activity, eye-tracking and skin response.
  5. 5. P U R P O S E • To better meet "unmet" market needs, connect and drive "the buy". • To inform the development of products and communications - really to inform the brand's 4Ps & services 7Ps • To guide marketers to just the right product designs, packaging and ad messages to boost sales. • To increase service quality in servicescapes • To have better management of TQM
  6. 6. • HISTORY • Firstly, Neuromarketing emerged in 1990s in USA Then, it introduced in June 2002 by: An Atlanta advertising firm: BrightHouse For the creation of a business division using fMRI for marketing research On the basis of neuroscience research One manifestation of neuroculture The premise:  consumer buying decisions are made in split seconds in the subconscious, emotional part of the brain Thus: What we like, don't like, want, fear, are bored by, etc. is indicated by our brain's reactions to brand stimuli HISTORY
  7. 7. • https://www.youtube.com/watch?v=_rKceOe-Jr0
  8. 8. 15% of human behaviour is conscious, 85% is subconscious.
  9. 9. Oursubconsciousmindisthemainfactorto makea decisionaboutbuyingbehavior. So,itishardtoexplainoursubconscious decisions bymeansof ourconscious
  10. 10. From thisview,itcanbesaidthatneuromarketing hasa capabilitytomakeafairanalysisofproduct/service /brandrelationship andithashighimportancefor advertisors. Duringpurchasingprocess, bymeansof neuromarketing methods, ourbraincanbe monitored andrealdecision makingstrategyand motivations canbeexplained explicitly.
  11. 11. • Neuromarketing is examining how the brain works during the buying process and what kind of responses it gives. • How does the Brain work?
  12. 12. • New brain thinks, processes the rational data, and resonsible for intellectual continuums. • Middle brain feels, processes emotions and feelings coming from inside. • Old brain makes the main decision and considers the data coming from other two brain parts.
  13. 13. • Old Brain is the first developing part of the brain when the fetus in the womb. • Old Brain makes the decisions related to the survival of the organism • Old Brain has self-centered characteristics, and has no emphaty and patience to the stimulus which don’t provide any benefit or which are not responsible for its survival. • It is sensible to the conflicts. • It is attentive to the beginning and end of sth. • Waiting, by stimulating the reward center in the old brain, provides to excrete dophamine,which serves as neurotransmitter
  14. 14. • Old Brain reacts to visual stimulus. • Optic nerves are much more speedy than acustic nerves. It perceives quicker than high brain and doesn’t recognize the words. It shows that visual stimuli can create bonds with emotional stages. • It makes decisions regarding reward and punishment balance. • Two main factors effecting our behavior and decisions are hedonistic approach and avoidance from pain.
  15. 15. • Besides the working mechanism of brain, there are some neurons and hormones which are effective on the brain’s mechanism, individual’s reactions and buying behavior processes. • Mirror Neurons: The neuron "mirrors" the behavior of the other, as though the observer were itself acting. These reacts to objects including certain movement. For example, the reason of crying when we see an actor is crying in the movie is due to from these mirror neurons,in deed.
  16. 16. • Our brain reacts as if we were doing these actions ourselves. • Imitation of other’s behaviours is resulting from these mirror neurons. • This tendency of behavior is coming from innate. It can also be seen newborn’s actions and behaviours • Mirror neurons explains that why we laugh when we see someone joyful or why we wince when we see someone is suffering. • Do you aware of why you are yawning when someone is yawning in front of you?
  17. 17. • Example: In UNILEVER, managers realized that when someone is talking about itching, the other people in the focus group start to itching their heads. • Briefly, while we’re observing or reading that someone is doing sth, we’re also doing the same thing in our mind. Considering the buying behavior, mirror neurons are reflecting as imitating the same buying behavior. For example, Apple’s headphones, GAP’s young and sexual clothes are providing that people feel themselves when they buy the same equipments and clothes, they would seem as young as the dummies in the store window.(Actually, they are buying an image or attitude)
  18. 18. • In SMILING TEST, it was seen that we could remember the people whose behaviour and attitude were positive, and buying behaviour would be easier in this kind of environment.
  19. 19. The main reason of coming into fashion of Computer games such as Guitar Hero 3, The Simps, Second life is in deed the mirror neurons.
  20. 20. • When you become skilled to play a more difficult melody in Guitar Hero, • When you reach an upper level in Second Life, • Your mirror neurons construct an emotional connection between you and virtual reality. • These kind of virtual tools are providing the same pleasure in the mind with the real world.
  21. 21. • A clue, especially for service marketing: • Mirror Neurons can evoke the same part of brain with the scent and visual element which are compatible to each other. Think that when your eyes closed you heard that a paper was being torn. You can understand that was a paper by visualizing it in your mind by help of mirror neurons Mirror Neurons don’t work without dophamine or oxytosin which are effective on decision making process. By releasing oxytosin, people are becoming more sharing and nearer to more donating behaviour. The response to the brand preference occurs in the prefrontal cortex which executes the thinking and justice process
  22. 22. • According to this information, the effectiveness of a brand image in the brain is much more stronger than the messages transmitted to the brain by a sense of taste in the tongue.
  23. 23. • THALAMUS: One of the functions of thalamus is to process the sensory information and to send to the related part of the cortex. For instance, a visual info comes from retina, goes to thalamus, then processed in the related part of the brain. The paths of all senses goes to thalamus as in the example above, only scent follows a different path. It has no relationship with thalamus. It directly goes to AMYGDALA which is the center of the emotions. • Due to amygdala is next to the memory center of brain, scent impresses deeply.
  24. 24. • Scientists concluded that sports cars activate the ventral putamen part which describes the reward emotions in the brain. Ventral Putamen also describes social predominancy and sexual pleasure in the brain. • In the experiments, subject’s same brain part was activated when they saw a mini-cooper or a baby face
  25. 25. • Warnings on the cigarette packets are stimulating the NUCLEUS ACCUMBENS part of the brain and the dophamin released in this region is building up more desire.
  26. 26. • Having high loyalty brands are stimulating the same part of the brain with the religious emotions • Consumers are buying only 8% of product that they are looking at. • Purchasing process are different from culture to culture.
  27. 27. METHODS IN NEUROMARKETING • FMRI(FunctionalMagneticResonanceImagination) • EEG(ElectroEnsaphaloGraph) • WEB EEG • SST(Steady State Typography) • EYE TRACKING • GALVANIC SKIN RESPONSE • VOICE ANALYSIS • FACIAL DECODING
  28. 28. • By analyzing the electric currents which are comprimising the data coming from each pieces of emotion, EEG gives us the information of which part of brain is being activated during the consumption process or while the individual is observing any object • Same kind of emotions are activating the same part of the brain. For example, when people from different culture are excited, the same part of their brain is being activated.
  29. 29. Eye Tracking Technic measures sensitively and reports the eye-pupils’ movements results. During the buying process, this technic measures where consumers looking at or while individual is observing any object. It is being used from the beginning of 1980s.
  30. 30. • In WEB EEG researches, by using eye tracking and EEG equipments synchronically it is possible that to reveal the users are looking at which part of the web page and also, when they have in difficulty, what kind of designs are attracting the users. • WEB EEG helps to buyers about how to use the web page, and brand name and logo to increase the emotional affect in the mind of customer.
  31. 31. • Facial Decoding enables to measure the biometric effects by interpreting the facial expressions.
  32. 32. In Voice analysis technic, it is possible to obtain the data by analyzing the voice of customers when they are reacting to stimuli.
  33. 33. • https://www.youtube.com/watch?v=StxLB6KDzK8
  34. 34. • PROS: One of the important features of neuromarketing is to obtain much faster and more reliable results with small sampling structure comparing to the traditional researches. • With the help of neuromarketing, systematic or nonsystematic errors can be minimized in focus group studies which are known as the most effective research technic until now. • In focus groups, if we consider that people are not telling the truth most of the time, it is much more understandable the need to use of neuromarketing researches in the field.
  35. 35. • The cost is not so high than it is thought , even in some projects, it is more cost-effective than conventional research. The main reason of this feature is to being possible to reach the certain results with the small amount of data. Because when the people’s same type of emotion is triggered, their same brain part is being activated. • It provides a guideline in a concise and clear way for future communication strategies and brand development. • It can be used in many areas such as ads, movies, brand perception, web sites,shop designs, servicescapes, even in political party programmes which are appealing to five senses.
  36. 36. • Neuromarketing doesn’t ask questions. • It enables to exclude the disturbing parts or creating loss of interest parts of the ads. • Organizations may have benefit of cost- effectiveness and efficiency of neuromarketing methods. CONS : Neuromarketing technics are being discussed as not being manipulative. Due to it is newly being started to use in Turkey, sometimes researchers may hesitate to apply in the field.
  37. 37. • In order to predict the success or failure of a product or service, organizations would utilize more than the conventional methods. • with the increase in demand for neuromarketing, its methods wold be cheaper and easier. • This would help to be more common in the future • for neuromarketing.