Neuromarketing an Introduction
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Transcript of Neuromarketing an Introduction
Neuromarketing-an introduction
Neuromarketing-an introduction
An Introduction to Neuromarketing 2Sarah Opitz
Introduction
“I know that half the money I spend on advertising is wasted, I just do not
know which half.”John Wannamaker (1876)
An Introduction to Neuromarketing 3Sarah Opitz
In search for understanding consumer behaviour
“Marketing and environmental stimuli enter the consumer’s consciousness [and/or subconsciousness]. 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.”
Kotler and Keller (2006, p.:184)
An Introduction to Neuromarketing 4Sarah Opitz
The emergence of neuromarketing
Neuromarketing
Neuroscience
An Introduction to Neuromarketing 5Sarah Opitz
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.”
Mucha (2005, p.: 36)
An Introduction to Neuromarketing 6Sarah Opitz
The scientific background (1) fMRI - functional Magnetic Resonance Imaging
developed in the early 90s
apparatus allows the precise tracing of areas activated in thebrain responding to stimuli
3D-Encode: activated regions appear in multiple colour
originally applied to detect the locationof illnesses, e.g. headaches, paralysis
and seizures in the human brain
An Introduction to Neuromarketing 7Sarah Opitz
The scientific background (2) QEEG – quantified electroencephalography
(an alternative to fMRI)
„…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.“
Lewis (2005/2006, p.:5)
An Introduction to Neuromarketing 8Sarah Opitz
Neuromarketing- researching consumer behaviour (1)
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
An Introduction to Neuromarketing 9Sarah Opitz
Neuromarketing- linking science and marketing
overconsumption and compulsive shopping can be traced back to a dysfunction of the orbitofrontal cortex (ORF)
Leake (2006)
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
Mucha (2005)
memory retention is processed in the amygdale and ventro-medial lobes (VFML)
Ambler, Ionnides and Rose (2000)
irrational buying and selling is associated with the autonomic nervous system
Peterson (2005)
An Introduction to Neuromarketing 10Sarah Opitz
Neuromarketing-its potential impact on promotion campaignsPosters/billboards-location-duration
TV/ radio adverts-channels/stations-time slots
Sponsoring-celebrities-events
Web adverts-duration-contents
Freebies/promotion extras-location-product choice
An Introduction to Neuromarketing 11Sarah Opitz
Neuromarketing-its potential impact on advertisement designs
sports person
colour arrangement
slogan/message
size
Poster/billboardsRadio promotion
music
voicelength
balance information/entertainment
TV advertisement
colour arrangement
image
voice/music
balance information/entertainment
length
product focus
An Introduction to Neuromarketing 12Sarah Opitz
Neuromarketing-its potential impact on product development
flavour
smell
colour
health/fashion trends
identifiying new target groups
An Introduction to Neuromarketing 13Sarah Opitz
Neuromarketing-its potential impact on product packaging/design
logo
colour scheme
packaging materials
packaging size
limited editions
smell
An Introduction to Neuromarketing 14Sarah Opitz
Neuromarketing-its potential impact on distribution
shelving
product grouping
special offers
smell
music
general atmosphere
availability
An Introduction to Neuromarketing 15Sarah Opitz
Neuromarketing- between hype and reality (1)
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
General limitations: accurate measurements of brain activities are limited Michel (2004/2005) certain emotions cannot be clearly differentiated Kurfer (2006) analysis of collected data still remains an enigma Reynolds (2006), Ahlert (2005) neuromarketing without future: Walter, Adler, Ciaramidaro and Erk (2005)
1. Consumer behaviour cannot be recreated in laboratory2. Time & costs prevent the testing of a great number of individuals3. Brain activities cannot be measured against the will of test subjects4. Ethical issues should not be solely reduced to neuromarketing
An Introduction to Neuromarketing 16Sarah Opitz
Neuromarketing- between hype and reality (2)
“…marketing executives are hoping to use neuroscience to design better selling techniques. […]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.”
Editorial of nature neuroscience (2004, p.: 683)
An Introduction to Neuromarketing 17Sarah Opitz
Neuromarketing- between hype and reality (3)
it appears to be less transforming the existing fundamentals of the marketing discipline, as it is rather a neuro-scientific consumer research technique, with the potential to add significantly to marketers‘ current understanding of consumer behaviour
it introduces the subconscious perspective with the potential to reform and extend quantitative research
it might be the first technique, which allows the inclusion of the environment into quantitative research
a response error of test subject is non-existent
An Introduction to Neuromarketing 18Sarah Opitz
Neuromarketing- ethical concerns
“We can sell these people refrigerators. They may not have room for them, and they will put
them on the front porch. They will buy a big automobile and all the luxuries, but they
never move up the scale.”
Chicago ad executive, cited from V. Packard (1981, p.: 99)
An Introduction to Neuromarketing 19Sarah Opitz
Neuromarketing- ethical 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? Traindl (2005)