The 2nd and 3rd marketing revolutions darwinian revolution and neuroscientist age bt20120606_slide_share3


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The Digital Darwinism and Neuromarketing revolutions !

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The 2nd and 3rd marketing revolutions darwinian revolution and neuroscientist age bt20120606_slide_share3

  1. 1. « The Quaternary Marketing » The 2nd and the 3rd Marketing Revolutions: Darwinian Revolution and Neuroscientist Age !Paris, 29th may 2012 Bruno TEBOUL
  2. 2. The author: Bruno TeboulCorporate Digital Marketing Director(The european leader in ICT)Master of Epistemology(1993 - University of Paris 12)Post Graduate Diploma in Cognitive Neurosciences(1994 - Ecole Polytechnique)Executive MBA(2003 - HEC/UCLA)PhD student in Marketing & Management Science(2012 University Paris-Dauphine) Bruno Teboul
  3. 3. The 2nd marketing revolution: the Darwinian Revolution ! Bruno Teboul
  4. 4. The 2nd marketing revolution: the Darwinian Revolution !We believe that the Darwinian revolution imposedby the digital and scientific break with the adventof NBICs, is primarily concerned with the speciesmost resistant to change and before the onslaughtof digital yet have no other choice but to adapt ordie … Bruno Teboul
  5. 5. The 2nd marketing revolution: the Darwinian Revolution !But this species should stand strong and should beresigned to engage in the digital universe in order toadapt: this endangered species is the last survivor oftraditional marketing, they are the marketingdirectors who have not yet realized that their marketshares melt under the lights of ubiquitous commerce(web, mobile ...) and that their purpose isinevitable… Bruno Teboul
  6. 6. The 2nd marketing revolution: the Darwinian Revolution !Geoffrey Miller, a psychologist in evolution at the University ofNew Mexico, believes that evolution is really beginning toaccelerate. He explained that the phenomenon is due to thefact that the possibility to choose partners is increasinglylarge in our society.Traits such as intelligence or social success will be decisive inthese choices, because they are evidence of the ability tofeed and raise any offspring. It is also a reason why society ismore complex in a technological perspective as thepreference of any individual tends to lean on thecharacteristics demonstrating an ability to adapt to thiscomplex environment.The environment is getting more complex and intelligence isan asset for social success and therefore also an asset forsuccess with potential partners. Darwin therefore thought thatthe evolution of human intelligence would lead to more of it. Bruno Teboul
  7. 7. The 2nd marketing revolution: the Darwinian Revolution !It further considers that the techniques of artificial selectionwill act as a multiplier for the transmission of traits favored inour societies.Indeed, the choice is no longer limited to the partner, but alsodirectly to the "characteristics" of embryos, which can onlyfavor the transmission of “favorite” characters.“It is not the strongest of the species that survives, nor themost intelligent that survives. It is the one that is the mostadaptable to change.” said Charles Darwin… Bruno Teboul
  8. 8. The 2nd marketing revolution: The darwinian revolution… « The Darwinian Paradox »:The huge development of digital world leads to a DNA Revolution Marketing ! For the first time, the virtual and the artificial accelerate natural selection. Complexity and darwinian approaches versus Homeostatis Theory ! Bruno Teboul
  9. 9. The 2nd marketing revolution: The darwinian revolution… Brian Solis
  10. 10. The 2nd marketing revolution: the Darwinian Revolution !We believe that digital Darwinism, introduced by Brian Solis,has the effect to propel humans to adapt to change. Indeed,digital Darwinism is consistent with the idea and the conceptof technologic singularity extending the social andphilosophical implications of digital Darwinism: the singularityis an idea, attributed to John Von Neumann, a brilliantAmerican scientist from the 1950s, who originated early workin Artificial Intelligence.The concept of technological singularity presupposes thatthere is an "accelerated fast track" in technology andhumanity, if we represent a curve by this progress, itapproaches a kind of vertical tangent. As we move thistechnology, thanks to NBICs, technological progress will beso important that it will lead to a kind of explosion ofintelligence with consequences almost impossible to imagine. Bruno Teboul
  11. 11. The 3rd marketing revolution: Neuroscientist Age… Bruno Teboul
  12. 12. The 3rd marketing revolution: Neuroscientist Age… Bruno Teboul
  13. 13. The 3rd marketing revolution: Neuroscientist Age…Read Montague Bruno Teboul
  14. 14. The 3rd marketing revolution: Neuroscientist Age…In a study made by the group of Read Montague published in 2004 in Neuron,67 people had their brains scanned while being given the “Pepsi Challenge", ablind taste test of Coca-Cola and Pepsi. The results demonstrated that Pepsishould have half the market share, but in reality consumers are buying Coke forreasons related less to their taste preferences and more to their experience withthe Coke brand. Bruno Teboul
  15. 15. The 3rd marketing revolution: Neuroscientist Age…Patrick Renvoisé in 2004 hypothesized that thebehavior of a consumer is regulated by three floors inthe brain, the brain reptilian being the seat of ourdecisions (as consumers).Patrick Renvoisé spent 10 years in international salesof large computer systems. Exploiting his expertise incomputer engineering, his expertise in business andhis passion to explain the science of sales andmarketing Frap he developed the first model ofneuromarketing.Patrick Renvoisé created SalesBrain, the onlycompany offering research, coaching, and training inneuromarketing. In 2004, SalesBrain was nominatedto receive the award "The next big thing in marketing"by the American Marketing Association. Bruno Teboul
  16. 16. The 3rd marketing revolution: Neuroscientist Age…In 2009 it was the turn of Martin Lindstrom to “throwa cat among the pigeons” in traditional marketingby publishing a famous book “buy.ology”, a worldreferenced in marketing and based on the largestneuromarketing study conducted United States.Philip Kotler himself bows and pays tribute toLindstrom on the afterward of "buy.ology": "Full ofIntriguing stories on how the brain, brands, andemotions drive consumer choice.Martin Lindstroms brilliant blending of marketingand neuroscience supplies us with a deeperunderstanding of the dynamic, Largely unconsciousforces, That shape our decision-making. Onereading of this book and look at You Will consumerand producer behavior in year entirely new light. " Bruno Teboul
  17. 17. The 3rd marketing revolution: Neuroscientist Age…This quote from Kotler sounds a bit like the epitaph oftraditional marketing which is the eminentrepresentative! Indeed Kotler considers the consumer asan agent endowed with reason and conscience, able tomake rational choices that he understands and explains.In Kotler’s book, there is nothing we know on theadvances of neuroscience, as there is no true mention ofit.Neuromarketing is also fighting another way oftraditional marketing: the means of speech and languagesituations in consumer tests. For example: we now knowthat our arguments are not always rational, neither areour discourses, so verbalization is always a possiblebias in interpreting the results of a customer survey, orfocus groups based on the declarative. Bruno Teboul
  18. 18. The 3rd marketing revolution: Neuroscientist Age…Bruno Teboul
  19. 19. The 3rd marketing revolution:Neuropsychologic Age… The Phineas Gage case study: Gages case, therefore, had Antonio Damasio confirmed that damage to the prefrontal cortex could result in personality changes while leaving other neurological functions intact. Today, the role of the frontal cortex in social cognition and executive function isBruno Teboul relatively well established…
  20. 20. The 3rd marketing revolution: Neuroscientist Age… Roger Dooley« …Or even most semi-aware humans, that peopleoften make decisions based more on emotion than onrational processing of information.Oddly, for decades economists ignored this apparenttruth… In recent years, neuroscience has entered thefray, with researchers in the new field ofneuroeconomics attempting to use the tools ofneuroscience to get to the root of human decision-making » (Roger Dooley, 2012). Bruno Teboul
  21. 21. The 3rd marketing revolution: Neuroscientist Age… When the neurobiology proves the work of experimental psychology... The theories and experiments of Kahneman on heuristics in judgment and decision processes in humans, highlight the bias and the framing effects that will be demonstrated empirically through nuclear medicine. In this case the use of fMRI in 2006, which will be published in Science. We owe this discovery to the team Benetto di Martino (Institute of Behavioural Neuroscience, Department of Psychology, University College London) who showed us that the frame has such a pervasive impact on complex decision-making that it supports an emerging role for the amygdala in decision-making ! Bruno Teboul
  22. 22. The 3rd marketing revolution: Neuroscientist Age…Frames, Biases, and Rational Decision-Making in the HumanBrain, SCIENCE, 4 August 2006.Benedetto De Martino, Dharshan Kumaran, Ben Seymour, andRaymond J. Dolan« Human choices are remarkably susceptible to the manner inwhich options are presented. This so-called “framing effect”represents a striking violation of standard economic accountsof human rationality, although its underlying neurobiology is notunderstood. We found that the framing effect was specificallyassociated with amygdala activity, suggesting a key role for anemotional system in mediating decision biases. Moreover,across individuals, orbital and medial prefrontal cortex activitypredicted a reduced susceptibility to the framing effect. Thisfinding highlights the importance of incorporating emotionalprocesses within models of human choice and suggests howthe brain may modulate the effect of these biasing influences toapproximate rationality ». Bruno Teboul
  23. 23. The 3rd marketing revolution: Neuroscientist Age…Frames, Biases, and Rational Decision-Making in theHuman Brain, SCIENCE, 4 August 2006.Benedetto De Martino, Dharshan Kumaran, Ben Seymour,and Raymond J. Dolan« A central tenet of rational decision-making islogical consistency across decisions, regardless ofthe manner in which available choices are presented.However, the proposition that human decisions are“description-invariant” is challenged by a wealth ofempirical data. Kahneman and Tversky originallydescribed this deviation from rational decision-making, which they termed the “framing effect,” as akey aspect of prospect theory »… In our study,activation of the amygdala was driven by thecombination of a subject’s decision and the frame inwhich it took place, rather than by the valence of theframe per se». Bruno Teboul
  24. 24. Bruno Teboul
  25. 25. The 3rd marketing revolution: Neuroscientist Age… Bruno Teboul
  26. 26. The 3rd marketing revolution: Neuroscientist Age…Between 2004 and 2009 the Search EngineMarketing (SEM) has captured the most importantshare of marketing budgets and this developmentwas considered inevitable, until the display (Ads)itself be converted to performance. And this is theinverse movement to what we have witnessed inthe last three years, and that we will continue towitness until 2015: the display (Ads) is growingfaster than the search (SEM).Thus, in the U.S. market between 2011 and 2012,the Display increased 24.5% ($ 12.3 billion), against19.8% for Search ($ 14.38 billion). The Frenchmarket is experiencing a similar trend: 14% for theDisplay and 11% for the search. Bruno Teboul
  27. 27. The 3rd marketing revolution: Neuroscientist Age…« BIG ADS »: Big Ad Campaigns !
  28. 28. The 3rd marketing revolution: Neuroscientist Age… « BIG ADS » !We have reached a advertising saturation theselast two years, due to its height and its unfortunateclimax: during which media agencies haveadvocated strongly for their clients to use cross-media plans to increase the effectiveness ofadvertising, exposure, repetition and thusstrengthen brand equity !Meanwhile, we are exposed to two million TV adsin our lives. Its like watching 8 hours ofadvertisements per day, every week for 6 years.We can not remember everything ! So to survivethe BIG ADS phenomenon, we must makeselections. And we now know that the reptilian Bruno Teboul
  29. 29. The 3rd marketing revolution: Neuroscientist Age… « BIG ADS » !This flood of insane multi-media advertising can bedefined as a recent phenomenon known as BIGADS formed on the expression BIG DATA butapplied to marketing and advertising.This symptom again serves advertising agenciesand major advertisers: ill-advised large groupscontinue to apply the « proterian recipe » ofinvesting massively with a discourse of superiorityto impose their reputation by creating a disasterthat can be name: communicative tsunami: BIGADS. Bruno Teboul
  30. 30. The 3rd marketing revolution: Neuroscientist Age… « BIG ADS » !Companies must understand now that the interests ofadvertising agencies conflict with the strategy to increaseadvertising effectiveness, to build and run a « lovebrand »:It will take more than 10 years to convince advertisersand media agencies to invest in the Internet, the best,most effective, frugal, and profitable media strategy (aseffective as TV in UK to date).10 years again to redirect media plans by introducing abalance between mass media and digital media(including mobile). Bruno Teboul
  31. 31. The 3rd marketing revolution: Neuroscientist Age… « BIG ADS » !How long will it take to understand that it is not the powerof a mass media marketing plan that counts but thedesign of the tagline, the claim, the customer gain, thevalue proposition, in order to address a right message tothe brain of the consumers: their emotions, theirsubconscious, their reptilian brain are more sensitive toimages than they are to words or texts...This failure of marketing and advertising produces adouble boomerang effect on brand image and marketing... Bruno Teboul
  32. 32. The 3rd marketing revolution: Neuroscientist Age…A new study published in Psychological Science brings uscloser to that point: scientists using a UCLA fMRI facilityanalyzed anti-smoking ads by recording subject brainactivity. They also asked subjects about the commercialsand whether the ads were likely to change their behavior.The researchers found that activity in one specific area ofthe brain predicted the effectiveness of the ads in the largerpopulation, while the self-reports didn’t. fMRI Predicts Ad Campaign Performance: Bruno Teboul
  33. 33. The 3rd marketing revolution: Neuroscientist Age…The methodology involved in comparing brain activity insubjects who viewed ads from three campaigns to actualperformance of the campaigns in increasing call volumes.The researchers focused on a subregion of the medialprefrontal cortex (MPFC) but also compared activity in otherbrain regions for control purposes. They found that the adcampaign which created the greatest activity in the MPFCregion generated significantly more calls to a stop-smokinghotline. Bruno Teboul
  34. 34. Bragging about Yourself on Social Networking Sites Can Beas Rewarding as Sex and EatingPosting views on Facebook and other social media sites delivers to the braina powerful reward similar to the pleasure derived from food and sex, aHarvard study has concluded.
The study, led by two neuroscientists andpublished this week, concluded that "self-disclosure" produces a responsein the region of the brain associated with dopamine, a chemical associatedwith pleasure or the anticipation of a reward.
The researchers said thatmost people devote 30 to 40 percent of their speech to "informing othersof their own subjective experiences" but that on social media, this is closerto 80 percent.
They conclude "that humans so willingly self-disclosebecause doing so represents an event with intrinsic value, in the same wayas with primary rewards such as food and sex. »
Although Facebook wasnot specifically cited in the study, it focused on the brain response ofpeoples "opportunities to communicate their thoughts and feelings toothers. »
  35. 35. Bragging about Yourself on Social Networking Sites Can Beas Rewarding as Sex and Eating"To the extent that humans are motivated to propagate theproducts of their minds, opportunities to disclose onesthoughts should be experienced as a powerful form ofsubjective reward," wrote Diana Tamir and Jason Mitchell ofHarvards Social Cognitive and Affective Neuroscience Lab.The research, published in the May 7 edition of theProceedings of the National Academy of Sciences, said thatthe study supported the notion that humans, like someother primates, would give up some rewards because of apowerful brain response.The study gave people a small cash reward for answering