Bringing brains

to business Perspectives on how to

improve marketing effectiveness

Agenda

08:30 Welcome and introduction – Implement Consulting Group

09.00 Neuroscience – improving marketing impact by bringing brains to business – Thomas Zoëga Ramsøy, PhD

10:15 Learning space – how to apply new insights – Implement Consulting Group

10:00 Break and coffee

11:30 Wrap-up – Implement Consulting Group

12:00 Light lunch

Bergen Oslo

Stockholm

Malmö CPH

Helsinki

Tallin

ICG Facts

12 books

published

400 Consultants

8+ Years of

experience on average

250+ articles

published

• Strategy & Transformation • Commercial Excellence • Leadership, Energy,

Assessment & Development • Process Improvement • Operations Strategy • Planning & Execution

Excellence • Sourcing & Procurement • Strategic Innovation &

Execution • Finance Management • Change Management • IT Management

Marketing and brand building is one of our core competencies

Change with Impact.

”Science has revolutionised every discipline it has touched. Now it’s marketing’s turn”

Joe Tripodi

Chief Marketing Officer The Coca-Cola Company

Our understanding of consumer decision making and buying behaviour is increasing

… as well as our understanding of how brands grow and the effectiveness of marketing activities

Humans largely make unthinking decisions based on habits

Source: Daniel Kahneman – Thinking, Fast and Slow

New insight is challenging old assumptions within marketing

Conventional Assumptions New Assumptions

Segmentation & tight targeting drives grows Reaching for all potential buyers drives growth

Different brands sell to different consumers Competing brands sell to the same consumers

User base recruitment is a one-off battle User base is a leaky bucket

Consumers are committedly brand loyal Consumers are habitual loyal to a repertoire

Building loyalty is a growth lever Building user base is a growth lever

Shoppers want to optimize their choices Shoppers want to simplify shopping

We must have a meaningful USP We must stand out from the crowd

Consumers care about brands Brands compete for consumers' attention

Advertising should persuade Advertising should resonate emotionally

Building broad mental and physical availability is key to generate sustainable brand growth

MENTAL AVAILABILITY

• Top-of-mind awareness

• Salience

• Ease of recognition

• Preference

PHYSICAL AVAILABILITY

• High accessibility

• High visibility

• Distinctive brand elements

• Right format - price - channels

What do consumers DO? What do consumers THINK & FEEL? What do consumers EXPERIENCE?

What should consumers DO? What should consumers THINK & FEEL? What should consumers EXPERIENCE?

TODAY TOMORROW

To generate brand growth marketers must be able to change consumer behaviour

Enter neuroscience...

Neuroscience provides a novel toolbox

Neuroscience can help us assess and understand the unconscious drivers of consumer choice and behaviour Neuroscience address four key metrics that are scientifically validated and have a tested reliability: • Attention • Emotional engagement • Motivation • Cognitive load

Thomas Zoëga Ramsøy, PhD How to Improving marketing impact by bringing brains to business

ICG Learning space - how to apply new insights

1. Getting noticed

2. Being processed

3. Becoming wired

Agenda

08:30 Welcome and introduction – Implement Consulting Group

09.00 Neuroscience – improving marketing impact by bringing brains to business – Thomas Zoëga Ramsøy, PhD

10:15 Learning space – how to apply new insights – Implement Consulting Group

10:00 Break and coffee

11:30 Wrap-up – Implement Consulting Group

12:00 Light lunch

Change with Impact.

Learning space How to apply new insights

October 2014

Time is limited

The battle of getting noticed, being processed and becoming wired

Getting noticed

Go shorter and be relevant

Being processed

Go longer and get closer

7

Becoming wired

Go all in and become a habit

Learning space

Becoming wired

Being processed

Getting noticed

Learning space How to apply new insights

October 2014

Two brain systems – automatic and controlled cognition

System 1, fast

System 2, slow

The old brain

• Basal ganglia

• Limbic system

Flight, fight or freeze

Perceptual thinking

Implicit and imprecise

Unconscious processing

Threat, risk, reward driven

The new brain

• Prefrontal cortex

• Parietal cortex

Pause and plan

Conceptual thinking

Explicit and precise

Conscious processing

Meaning and goal driven

The fast system decides in milliseconds (blink)

Limbic system

Prefrontal cortex

The slow system can veto and make fact-based decisions

Information overload or attention deficiency?

Some statistics about attention

The average attention span* in 2013 08 seconds

The average attention span in 2000 12 seconds

The average attention span of a gold fish 09 seconds

Average number of times per hour we check our email 30 per hour

The doubling time of information in the world 18 months

Percentage of marketers using content marketing 90 percent

Percentage rating their content marketing efforts as effective 42 percent

Source: Statistic Brain, 2014

* Attention span is the amount of concentrated time on a task without becoming distracted.

Same attention span as a goldfish

What is your

strategy?

Successful branding in an attention deficit world

How brand sell – from features to benefits

Higher-order benefits

Functional benefits

Emotional benefits

Customer rewards

Product benefits

Product features

An emotional feeling that binds the

brand and the target person typically

via shared values and beliefs

What the brand make the target

person able to experience, do

and obtain

An implicit or explicit claim of

superiority

A feature, quality, detail or function

of a brand

Coca-Cola example

System 1 reaction to change – domains of social survival

High dopamine

Perceived reward

Engagement

High noradrenalin

Perceived threat

Disengagement

Status is about relative importance to others

Certainty concerns being able to predict the future

Autonomy provides a sense of control over events

Relatedness is a sense of safety with others, of friend rather than foe

Fairness is a perception of fair exchanges between people

The untapped potential – habit building

Habit building step by step

1. Analyze the loop

• Identify the routine – obvious and visible part of the loop

• Isolate the cue – 5 types: time, place, relation, activity, feeling

• Figure out the actual reward – it often takes some observation and reflection

2. Adjust the routine

• Cues and rewards are difficult to deny, while routines can often be replaced

3. Be patient

• Each turn in the loop makes the neural pathways grow

• Building strong connections takes time

Implementconsultinggroup.com

Implement Consulting Group Implement Consulting Group is a leading Scandinavia based management consultancy, specialised in driving strategic transformations with a strong differentiator on “making change happen” – delivering documented Change with Impact.

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