Buyology by Martin Lindstrom.ppt


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How much do we know about why we buy? What truly influences our decisions in today's message-cluttered world? An eye-grabbing advertisement, a catchy slogan, an infectious jingle? Or do our buying decisions take place below the surface, so deep within our subconscious minds, we're barely aware of them?

In BUYOLOGY, Lindstrom, who was voted one of Time Magazine's most influential people of 2009, presents the astonishing findings from his groundbreaking, three-year, seven-million-dollar neuromarketing study, a cutting-edge experiment that peered inside the brains of 2,000 volunteers from all around the world as they encountered various ads, logos, commercials, brands, and products. His startling results shatter much of what we have long believed about what seduces our interest and drives us to buy. Among the questions he explores:

Does sex actually sell? To what extent do people in skimpy clothing and suggestive poses persuade us to buy products?
Despite government bans, does subliminal advertising still surround us – from bars to highway billboards to supermarket shelves?
Can "Cool" brands, like iPods, trigger our mating instincts?
Can other senses – smell, touch, and sound - be so powerful as to physically arouse us when we see a product?
Do companies copy from the world of religion and create rituals – like drinking a Corona with a lime – to capture our hard-earned dollars?

Filled with entertaining inside stories about how we respond to such well-known brands as Marlboro, Nokia, Calvin Klein, Ford, and American Idol, BUYOLOGY is a fascinating and shocking journey into the mind of today's consumer that will captivate anyone who's been seduced – or turned off – by marketers' relentless attempts to win our loyalty, our money, and our minds.

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Buyology by Martin Lindstrom.ppt

  1. 1. Book Summary 1
  2. 2. Sameer Mathur Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 2
  3. 3. “ Neuromarketing is it’s about uncovering what’s already inside our heads —our Buyology” Martin Lindstrom - Buyology 3
  4. 4. Why Read This Summary? Neuro-marketing is the new key tool which will revolutionize marketing strategies in future and help understand the logic behind purchase behavior. The summary highlights the major concepts from the book which can help in building better marketing campaigns 4
  5. 5. Brief Introduction 5 • People are constantly surrounded by brands and messages from marketers & advertisers • Some information is retained and some is instantly forgettable • To make the brand message stay with the consumer and to induce product cravings, research in “Neuromarketing” is being done • Neuromarketing is the window key to unlock the subconscious thoughts, feelings & desires that drive purchase decisions - Buyology
  6. 6. 1. A Rush Of Blood Of The Head 2. This Must Be The Place 3. I’ll Have What She Is Having 4. I Cant See Clearly Now 5. Do You Believe In Magic? 6 Contents
  7. 7. 6. I Say A Little Prayer 7. Why Did I Choose You? 8. A Sense Of Wonder 9. And The Answer Is… 10. Lets Spend The Night Together 11. Conclusion 7 Contents
  8. 8. Chapter 1 A Rush of Blood to the Head – The Largest Neuromarketing study ever conducted 8
  9. 9. 9 1. The Largest Neuromarketing study ever conducted PROBLEM ADDRESSED Companies often are not able to carefully detect what to do to engage the consumers authentically “Half my advertising budget is wasted. Trouble is, I don’t know which half.” John Wanamaker 1889 – 1893
  10. 10. The traditional marketing research techniques namely - Qualitative & Quantitative research techniques are not well equipped to evaluate what the consumer wants For example, the smokers replied in negative to purchasing cigarettes when shown the warning signs on cigarette packs Whilst the actual buy behavior has not much changed as despite the results of traditional marketing research tests, the smokers went and purchased the cigarette packs Hence a new marketing tool – neuromarketing is required to test how the consumer’s brain evaluates and responds to the brand messages it encounters 10 1. The Largest Neuromarketing study ever conducted
  11. 11. 1. The Largest Neuromarketing study ever conducted fMRI – The most advanced brain-scanning technique was used that measures the magnetic property of hemoglobin that carries oxygen in the body. More worked up a part of brain is, more is the flow of oxygenated blood to that part of the brain The study was conducted using the fMRI technique to assess which aspects of the brand or product message stimulate which part of the part of the brain that ultimately induces the need to buy that product 11
  12. 12. 1. The Largest Neuromarketing study ever conducted 12 Neuromarketing Study Duration: Three years (2004-2007) Cost: $7 million (provided by 8 MNCs) fMRI Scans: 102 SST: To measure the degree of emotional engagement, memory, approach & withdraw i.e. how different parts of the brain talk to one another Volunteers: 2,081 Countries: America, England, Japan, China, Germany Research Team overseen by: Dr. Gemma Calvert, Chairperson Applied Neuroimaging at University of Warwick, England
  13. 13. 1. The Largest Neuromarketing study ever conducted Test: Smokers were shown cigarette warning packs Questions asked: Are you affected by these warnings? | Will you smoke lesser? Answers were a quick “Yes” to both Analysis & Results: When these respondents went through fMRI, it was observed that the cigarette warnings in fact stimulated the area of the brain called “the craving spot” This part of the brain when stimulated requires higher and higher doses to get it fixed 13 Neuromarketing Study – Experiment with smokers Such cigarette warning signs, encouraged the smokers to buy more cigarette packs
  14. 14. 1. The Largest Neuromarketing study ever conducted 14 Neuromarketing Study – Importance Therefore, traditional marketing research techniques are not reliable to know what consumers really what because the irrational mind shaped via social & cultural bias acts in a conditioned manner Hence, what consumers think why they have a particular behavior, a closer look into the mind tells a different story Unconscious minds are a lot better at interpreting behavior than the conscious minds which is what works when traditional marketing research is conducted Consumer experience is more likely to be found in brain, in the nansecond lapse before thinking is translated into words, the truth – unplugged & uncensored, what causes us to buy
  15. 15. 1. A Rush of blood to the head Pepsi Challenge or Sip Test, showed that more than half of the volunteers prefer the taste of Pepsi over coke, this was confirmed by the fMRI techniques The later Brain scan techniques revealed when test subjects know whether they were sampling coke or Pepsi before they tasted it, 75% of respondents claimed they prefer Coke.
  16. 16. 1. A Rush of blood to the head • Positive associations the subjects had with Coca cola- its history, logo, color, design, and fragrance, their own childhood memories of coke, emotional Coke-ness of brand beat back their rational, natural preference for the taste if Pepsi • Emotions are the way in which our brain encode things of value, and brands that engages us emotionally will win every single time
  17. 17. Chapter 2 This Must Be The Place– Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake 17
  18. 18. In 1965 a typical consumers had a 34% recall for ads, in 1990 that figure had fallen to 8 % The relentless advertising assault have resulted in strengthening the filter system in our brains grow thick and self protective 2. This must be the place 19
  19. 19. 2. This must be the place
  20. 20. To identify whether the product placement in the show American Idol helps in creating a lasting impact in the consumer’s minds and hence translate into sales of the company’s product 20 2. Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment - Objective
  21. 21. American Idol has three main sponsors – Cingular Wireless, Ford Motor Company & Coca-Cola Cingular Wireless – Runs 30 seconds ads during the commercial breaks & also features its products prominently during the show Coca-Cola: It has judges drink strategically placed Coke, the judges’ chairs are shaped like coke’s bottle, the walls are coke-red. Coca Cola is present approximately 60% of the time on American Idol Ford: Doesn’t shares actual stage with the contestants & it shells out $26 million only toward traditional thirty seconds ad spots. 21 2. Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Sponsors
  22. 22. Four hundred subjects were chosen to go through the SST test that mathematically measures the brain waves in real time The subjects were seated in the darkened room Twenty product logos (branded & unbranded) were shown, one each/second “Branded Logos”: Logos of companies that aired their commercials during American Idol – Coke, Ford & Cingular “Unbranded Logos”: Logos of companies that had no products placed within the show i.e. no connection or sponsorship with American Idol like Fanta, Verizon, Target, etc. 22 2. Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Setup
  23. 23. The subjects were shown 2 shows, one was a 20 min special edition of American Idol followed by a screening of another show Rescreened the same sequence of logo thrice. It was done to test whether viewers remembered which logos they had seen during the show and which ones they hadn’t Ad Effectiveness: measured by the consumer’s memory of the product. A remembered product has more probability of being purchased 23 2. Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Setup
  24. 24. Before-Screening: No matter how frequently the products were featured during the show, the memory of branded logos was the same as that of the unbranded logos. Therefore, before the study began, both branded and unbranded logos were at par Post- Screening: Branded logos had a greater recall than unbranded logos. The potency of branded logos had inhibited the recall of unbranded logos i.e. memory of Coke, Cingular had crowded out memories of Pepsi, Verizon Coke was far more memorable than Cingular which was far more memorable than Ford Ford commercials were remembered by subjects lesser post study than pre-study 24 2. Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Results
  25. 25. Coke had permeated 60% of the show – Soft drink cups – Furniture- Décor. Coke reinforced throughout the show There was no memory of the brands that did not played an integral part in the story line of the show Coke played an integral part of the show – was remembered the most and at the same time weakened the memory of other brands Ford just played ads in commercial breaks – no significant difference than “just other ads” 25 2. Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – The Analysis
  26. 26. Coke saturated show had suppressed memory of Ford commercials Ford had invested $ 26 million in yearly sponsorship but – lost market share 26 2. Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The Experiment – Ford’s Multimillion-Dollar Mistake
  27. 27. Mid 1940s Warner Bros. movie had General Electric refrigerator or a love story with diamonds from DeBeers Co. E.T. Extra Terrestrial had tactically placed Hershey's candies Ray-Ban: Suffered from slowing sales, tied up with the movie Risky Business where Tom Cruise flaunted Ray-Ban sunglasses. Sales increased by over 50%. Again in Top Gun, sales rose by 40% But movies like Die Another Day that displayed 23 brands in 123 minutes or Driven that displayed 103 brands in 117 minutes – all the brands made no effect 27 2. Product Placement, American Idol and Ford’s Multimillion-Dollar Mistake The product has to be a good match with the TV show or movie
  28. 28. 2. This must be the place Product Placement in Movies
  29. 29. 2. This must be the place In Steven Spielberg’s E.T.: The Extra- Terrestrial, a boy named Elliott discovers an extraordinary-looking creature living in the woods behind his house. To lure it out of hiding, the boy tactically places individual pieces of candy—instantly recognizable as Hershey’s Reese’s Pieces—along the path from the forest leading into his house
  30. 30. 2. This must be the place
  31. 31. 2. This must be the place In the late 1970s and early ’80s, the U.S.-based sunglasses manufacturer Ray-Ban was fighting to stay alive as their sales figures remained dismally flat. That is, until the company struck a deal with Paul Brickman, the director of 1983’s Risky Business, and Tom Cruise gave the retro-looking shades a whole lot of renewed cachet. When the movie became a hit, Ray-Ban sales rose by over 50 percent.
  32. 32. 2. This must be the place In Tony Scott’s Top Gun, when the actor alit from his fighter jet clad in Air Force leathers and Aviator Ray- Bans, the sunglasses maker saw an additional boost of 40 percent to its bottom line
  33. 33. 2. This must be the place SST study showed, for product placement to work, it has to be a lot slyer and more sophisticated than simply plunking a series of random products on a screen and expecting us to respond. Let’s revisit E.T. for a moment. Elliott didn’t just pop those Reese’s Pieces into his mouth during a thoughtless bike ride with his buddies; they were an essential part of the storyline because they were used to lure E.T. from hiding. In order for product placements to work, the product has to make sense within the show’s narrative. So if a product isn’t a good match with the movie or TV show in which it appears viewers will tune it right out
  34. 34. Chapter 3 I’ll Have What She’s Having – Mirror Neurons at Work 34
  35. 35. 3. I’ll have what she is having Mirror neurons at work- Neurons that fire when an action is being performed and when that same action is being observed 35
  36. 36. 36 3. I’ll have what she is having Do humans’ brains work in the same way? Do we too, mimic how others interact with objects? Not only animals, but humans also imitate. When a person in front of you YAWNS, you also feel like yawning!
  37. 37. Are you yawning now or feeling the initial strings of yawning? Mirror neurons becoming activated even when we’re reading about someone performing it 37 3. I’ll have what she is having Mirror neurons make humans mimic each other’s buying behavior too.
  38. 38. 38 3. Mirror Neurons at Work If people see something cool and jazzy, they will wish to have that product in order to feel themselves as cool and jazzy – They are the mirror neurons at work Example 1: According to an experiment, when a monkey picked up a nut or even when it saw other monkey pick up the nut, the macaques’ pre-motor neurons lit up and in the latter case too it imagines itself picking up the nut
  39. 39. 39 3. Mirror Neurons at Work Example 2: When an adult ticks out his tongue, the baby too imitates and sticks out his tongue – These are mirror neurons at work
  40. 40. • While people view baseball matches and the favorite player strikes or the football player scores a goal, the viewer pumps the arm in the air • Based on fMRI & EEG, the mirror neurons are activated when someone is performing an action or when a person observes someone else performing the action • Hence people often imitate other people’s behavior • We empathize when bad things happen to good people and feel pleasure when bad things happen to bad people • In short, everything we observe or read someone else is doing, we do as well – in our minds 40 3. Mirror Neurons at Work
  41. 41. When people see white cool earphones on someone else, they want to buy it When people see mannequins in GAP stores wearing fitted jeans with a bandana, they wish to buy that outfit and be like it 41 3. Mirror Neurons at Work
  42. 42. When someone smiles at you, we tend to smile back. We remember the names of the people who smile back. When one has a great shopping experience at a store owing to the music, décor, products available, one shops. Few days later, when he encounters another store of the same brand, Dopamine-one of the most additive brain chemical work and one wishes to re-experience the last time’s shopping experience 42 3. Mirror Neurons at Work
  43. 43. Just seeing a product over and over makes it more desirable. 43 3. I’ll have what she is having
  44. 44. We don’t think twice before buying as we calculate our purchases based on how they might bring us social status 44 3. I’ll have what she is having DESIRE ASPIRATIONS BRAND CELEBRITY STYLE RECOGNITION SOCIAL STATUS
  45. 45. Chapter 4 I Can’t See Clearly Now – Subliminal Messaging, Alive and Well 45
  46. 46. Subliminal messaging Visual, auditory or any sensory message that register just below our level of conscious perception and can be detected by the subconscious mind 46 4. I can’t see clearly now
  47. 47. Subliminal advertising in political messaging 47 4. I can’t see clearly now George Bush criticizes Al Gore’s prescription plan, towards the end of the ad the word RATS flashes in oversized letters for a split second
  48. 48. Malboro’s subliminal advertising 48 4. I can’t see clearly now Everything Formula 1 represented was subliminally transformed into representing the Malboro brand Subliminal images invoked more activity in brain and better recognition than the overt images
  49. 49. Subliminal messaging examples 49 4. I can’t see clearly now
  50. 50. 50 4. Subliminal Messaging Subliminal messaging has many a times garnered bad publicity. It is considered: • To be ‘brainwashing’ the population • “Contrary to the public interest”
  51. 51. 51 4. Subliminal Messaging Subliminal messaging – The Experiment Elderly people in the age group of 60 – 85 years old were split into two groups Both groups were given a computer game to play
  52. 52. 52 4. Subliminal Messaging Subliminal messaging – The Experiment One group was displayed a series of positive words like wise, accomplished, achievement, etc. on their computer screen The other group had negative words like senile, diseased, forlorn, etc. displayed on their computer screens When finished, the researchers measured the “swing-time” in their gaits or walks i.e. the time when they had one foot off the ground
  53. 53. 53 4. Subliminal Messaging Subliminal messaging – The Results The people who were in the positive group, their gait increased by 10% This suggested that positive psychological stimulus can have a positive impact and it improved the physical achievement
  54. 54. 54 4. Subliminal Messaging Subliminal messaging – The Experiment The respondents were shown an image of either a smiling face or an unhappy face for a millisecond Post that, they were asked to pour a drink and pay for it
  55. 55. 55 4. Subliminal Messaging Subliminal messaging – The Results The respondents who saw the happier face poured more drink This lot was also willing to pay almost twice as much for that drink as compared to the respondents who were shown sad faces
  56. 56. 56 4. Subliminal Messaging Phenomenon of Unconscious Emotion This was the result of a phenomenon called the “unconscious emotion” Unconscious emotion: The brain remembers and recalls a brand or an image even before it has consciously recognized it Therefore, the brain decides that something is to be bought even before the respondent has consciously realized it
  57. 57. Chapter 5 Do You Believe in Magic? – Ritual, Superstition, and Why We Buy 57
  58. 58. 5. Do you believe in magic RITUALS AND SUPERSTITIONS are defined as not entirely rational actions and the belief that one can somehow manipulate the future by engaging in certain behaviours, in spite of the fact there’s no discernible causal relationship between that behaviour and its outcome. Rituals will force the consumer to buy the product even if you don’t like that product synonymous to the numerous superstitions we hold on to in daily lives. 58
  59. 59. 59 5. Ritual, Superstition, and Why We Buy Rituals and Superstitions make people feel certain and stable in times of ever changing world Rituals are persistent and embedded in our culture It is these rituals that helps people gain control over their lives in this ever changing fast-paced unsettling society For example, touching wood to ward off evil, not walking under stairs or ladders Rituals within the products gives people a sense of illusion of comfort and belonging
  60. 60. Take the fear of the number thirteen, for example. In early 2007, in response to countless customer complaints, Brussels Airlines reluctantly altered the thirteen dots in their airline logo to fourteen. If you want to sit in the thirteenth row on your Air France, KLM, Iberia (or for that matter, Continental) flight, you’re plain out of luck, as there isn’t one. 60 5. Do you believe in Magic?
  61. 61. In Asian cultures, the unluckiest possible number is four, since the Mandarin word for that number is read as si, which comes perilously close in sound to shi, which means “death.” As a result, in hotels in China, and even in Asian-owned hotels around the world, there are no fourth or forty-fourth floors. 61 5. Do you believe in Magic?
  62. 62. When Nestlé rolled out their candy in the Far East, locals couldn’t help but notice how close the words “Kit Kat” were to “Kitto- Katsu,” which roughly translates to “win without fail.” In time, students began to believe that eating a Kit Kat before they took their exams would result in a higher grade, which is a major reason the Kit Kat brand is doing so well in Japan’s overcrowded retail market. 62 5. Do you believe in Magic?
  63. 63. 5. Do you believe in Magic? 3 aspects of rituals: Preparing for battle; Feasting; Indulgence Preparing for battle is preparing for the daily chores of life. Feasting is explained as having a family dinner time Indulgence means caring for self and doing activities which boost your self confidence
  64. 64. 5. Do you believe in Magic? All these rituals are meant for humans to have a control in their lives It makes them feel safe and at the same time makes them believe that uncertainty has reduced Brands have recognized this need for control and rituals and used it to their advantage
  65. 65. 5. Do you believe in Magic?
  66. 66. 66 5. Ritual, Superstition, and Why We Buy People have a loyalty towards their preferred brand This behavior towards products like shampoo, biscuit or coffee is similar to their religious affinity which encourages them to keep on buying Oreo cookies offers two ways of being eaten Nabisco that manufactures the Oreo cookies partnered with the “Got Milk?” campaign For people to associate a brand with a nationwide ritual, this brings along with it a feel of familiarity and unity, keeping sales going
  67. 67. Chapter 6 I Say a Little Prayer? – Faith, Religion and Brands 67
  68. 68. 68 6. Faith, Religion and Brands Brands can be like religions with their rituals A sense of unity exists amongst consumers of the same brand – there is a sense of belonging, camaraderie, loyalty and the feeling of being on one side
  69. 69. 69 6. Faith, Religion and Brands Faith, Religion & Brands – The Experiment A brain Scan test was conducted Respondents: 15 nuns The experiment: The respondents were told to relive their most deep and impactful religious experience The researchers monitored and mapped which part of the brain was involved in the activity Next, the respondents were told to relive an emotional experience and the researchers again monitored and mapped which part of the brain was involved in the activity
  70. 70. 70 6. Faith, Religion and Brands Faith, Religion & Brands – The Experiment Next, 65 male respondents were used to find out whether the brain part associated with sports & sportsmen was the same part that was involved when referring to the religion The experiment: The respondents rated their spirituality levels on a scale of 1 to 10 and they were then shown a series of images of strong and weak brands interspersed with religious and sports images
  71. 71. 71 6. Faith, Religion and Brands Faith, Religion & Brands – The Results A different part of the brain is engaged when a religious experience is imagined and when an emotional experience with a person is imagines The same part of the brain is involved when images of ‘strong’ brands, sports images and religious images were shown. Hence the brain responds exactly the same for all the three The brain activity seemed identical whether it was referring to brands or religion Many companies have also started creating spiritual or religious products like the Spiritual Water
  72. 72. 72 6. Faith, Religion and Brands Faith, Religion & Brands – An Example Unilever Shampoo printed millions of labels saying “Contains X9 Factor” without realizing it When the supplies ran out, the label was printed without the X9 factor Result: Thousands of consumer complaints, sales decreased, complaints saying the shampoo no longer works without knowing what X9 was about Brands are similar to religious icons – McDonald’s or Nike’s logo – They are universal and induce associations within minds of the consumers with the companies these logos represent
  73. 73. Symbols play an important role in helping people finding solace or finding people with the same religion . A cross, a dove are symbols of religion which can be easily identified and make a statement for a person who is wearing them. 73 6. I say a little prayer
  74. 74. Mystery is an important aspect of religion as well. People tend to get attracted to mysterious news and stories involving faith and religion. Companies have used this behavioral trait to their advantage. 74 6. I say a little prayer
  75. 75. Sense of belonging (Absolut, Harley davidson users) Clear vision (“Solutions for a Small Planet” – IBM’s mandate) Power over enemies (Pepsi vs coke, visa vs mastercard) Sensory appeal (Nokia ring tone) Storytelling (Disney mickey mouse) Grandeur ( Dubai’s Hotel Burj Al Arab) Evangelism (Centurion black card in US) Symbols (Nike Swoosh, McDonals golden arches) Mystery (Coca cola’s secret formula) Rituals (Apple’s discarding of Newton handheld computers) 75 6. I say a little prayer
  76. 76. 6. I say a little prayer Brand following has been developed and created on the similar lines in sports as well. We can see the examples of brand following in terms of European football clubs where they are revered and followed as religion.
  77. 77. Chapter 7 Why did I Choose You? The Power of Somatic Markers 77
  78. 78. 7. Why did I Choose You? Most consumers think about their choice for all of 2 seconds It may have seemed that you made your decision rationally, but it wasn’t so at all. There are subconscious conversations that go on in our head every time we choose one product over another. These are rarely uttered aloud. 78
  79. 79. A Somatic Marker is a kind of bookmark or shortcut in our brains created due to past experiences of reward and punishment. 79 7. Why did I Choose You?
  80. 80. An experience makes an “impression”. These markers connect an experience or emotion with a specific required reaction Somatic Markers instantaneously narrow down the possibilities in a situation and direct us towards the best or least painful outcome. 80 7. Why did I Choose You?
  81. 81. The real rationale behind your choices are built on a lifetime of positive and negative associations, that you aren’t consciously aware of. Our brain summons and scans incredible amounts of memories, facts, and emotions and leads to rapid response  dictating what we buy. 50% of shopping decisions are made spontaneously at point of sale 81 7. Why did I Choose You?
  82. 82. 7. Why did I choose you? Favorable somatic markers play a very important role in deciding winning brands in low involvement and low differentiation categories 82
  83. 83. Everyday we manufacture new Somatic Markers. Without them, we wouldn’t be able to make any decisions at all. All the seemingly unrelated bookmarks create certain associations that make you feel that your decisions are rational, whereas they aren’t so at all 83 7. Why did I Choose You?
  84. 84. Fear spreads faster than anything else. However, not all somatic markers are based on pain/ fear. Some of the most effective ones can be rooted in sensory experiences which can be quite pleasant 84 7. Why did I Choose You?
  85. 85. For advertisers, its easy and inexpensive to create a somatic marker in consumer’s brains Somatic Markers are associations between two incompatible elements, which make them far more memorable and lasting => Advertisers aim to create surprising, shocking, humorous and fear generating associations between disparate things to catch our attention 85 7. Why did I Choose You?
  86. 86. Chapter 8 86 A Sense of Wonder Selling to Our Senses
  87. 87. Our visual sense is NOT the most powerful in getting us interested to buy These days, we are more visually stimulated than before and that makes it even harder to capture our attention through images => Visual advertising did not result in higher sales. Sight isn’t as powerful as we assumed and sound & smell are more effective than before 87 8. A Sense of Wonder
  88. 88. SENSORY BRANDING: Visual images are far more effective & memorable when they are coupled with another sense – like sound or smell To fully engage us emotionally, companies should use logos, fragrances and music. 88 8. A Sense of Wonder
  89. 89. Our senses are very important in interpreting the world around us and have a deep impact on our behavior When a pleasant fragrance is matched by an appealing visual image, we perceive it as more pleasant and memorable. But if image & fragrance are incongruent, the effect is equally negative Odour activates the same regions of the brain as the sight of a product 89 8. A Sense of Wonder
  90. 90. 90 8. Selling to our senses Restaurants pump specially crafted aromatic chemicals into there air vents to induce favorable reaction from consumers
  91. 91. 91 8. Selling to our senses IFF is the world’s largest flavor company and supplies flavors to the world’s best know fast food chains These flavors make the otherwise bland processed food an extremely enticing affair
  92. 92. Of all our senses, smell is the most primal and deeply rooted and closely tied to how we experience brands and products. The feel of a product also plays an important role on whether we decide to buy it Colours can also be very powerful in generating emotional connect to a brand. Colours can increase brand recognition by up to 80%. Coloured ads hold consumer’s attention much more than black & white ones 92 8. A Sense of Wonder
  93. 93. Sight is not very powerful in getting us to buy as we once believed, however much of what we perceive everyday is related to our sight Sounds can also trigger strong association & emotions and have a powerful impact on our behaviour Sounds & images when presented together are much more favourably and left an impression than when either of them was presented alone => lead to greater preference & stronger recall of the brand 93 8. A Sense of Wonder
  94. 94. SENSORY SUCCESS SHAPE: Consumers associate shape of packaging with the product SOUND: Unique noises associated with products enhance their brand appeal & recognition COMBINATION: Improved recall and perception when a sound & image are paired versus being used alone SMELL: Plays a very important role due to mirror neurons. Prime role in brand experience & perception TOUCH: Tactile sensation is an important factor. Research suggests heavier items are perceived to be of higher quality 94 8. A Sense of Wonder
  95. 95. The road to emotions runs through our sensory experiences and emotions is one of the most powerful forces in driving purchase behavior An effective retail world will therefore involve vivid colors, tunes and melodies that make u sing, and distinct memorable fragrances. This will win customers attention and loyalty 95 8. A Sense of Wonder
  96. 96. Chapter 9 96 And the Answer is… Neuromarketing and Predicting the Future
  97. 97. 9. And the Answer is… 80% of all the new product launches fail in the first 3 months Companies are bad at predicting how consumers will respond to their products. This is because how people “say” they feel about a product can never truly predict their behaviour 97
  98. 98. Market research is highly unreliable and can at times seriously mislead a company or lead to an unsuccessful product development NEUROMARKETING: =>Can help companies create products that consumers actually like =>Can reliably and scientifically predict the success or failure of a product or a brand (research suggests) 98 9. And the Answer is…
  99. 99. Research studies have shown that questionnaire based responses did not reflect the success or failure status of a program as it actually happened in reality => How we say we feel and how we actually behave rarely match up =>Brains’ responses (based on SST Scans) were consistent with actual results 99 9. And the Answer is…
  100. 100. 9. And the Answer is… Can Neuromarketing help the companies create products that the consumers actually like? Can it reliably, scientifically predict the failure of a brand or product? Problems Addressed Majority of the companies are woefully bad at predicting how we as consumers will respond to their products That is also because how we say we feel about a product can never truly predict how we behave, market research is largely unreliable.
  101. 101. 9. And the Answer is… 200 volunteers were shown 3 different shows : a proven success, a proven failure and the show whose success of failure had to be predicted i.e. QUIZMANIA Methodology Quizmania was already a success in U.K and was going to be launched in U.S The other two shows : The Swan ( a proven failure) and How Clean is your House? ( a proven success) had already been broadcasted in U.S Volunteers were first asked questions about the shows : Did they like or dislike them? And then SST scans were performed on them
  102. 102. 9. And the Answer is… The SST scan showed that although the subjects rated the unaired pilot program Quizmania as the show they were least likely to watch, viewers’ brains were actually more engaged when watching Quizmania than when watching The Swan, a show they had claimed to have liked. Results Proving, once again, that what people say and how they really feel are often polar opposites The SST scans predicted the show’s (Quizmania) performance accurately and it was indeed more successful than The Swan but less than How Clean is Your House?
  103. 103. Soon more and more companies would be trading their pencils for SST caps. Neuromarketing will become the primary tool that the companies will use for predicting the success or failure of their products to be launched. Applications 9. And the Answer is…
  104. 104. Hundreds of millions of dollars can be saved if companies could predict beforehand that their launches would be failures Traditional market research tools will gradually take a smaller role and neuromarketing will become the primary tool for companies As neuromarketing becomes more popular, it will become cheaper and easily available 104 9. And the Answer is…
  105. 105. Chapter 10 Let’s Spend the Night Together Sex in Advertising 105
  106. 106. 10. Let’s Spend the Night Together Roughly 1/5th of all the ads use sex overtly to sell its products Sex in ads is everywhere: TV Commercials, Magazines, Retail Spaces and on the Internet, bill boards, etc. 106
  107. 107. Research Studies carried out show that people shown sexually suggestive ads were no better able to recall the brands and products as compared to those shown other unerotic ads. => Sex does not sell anything other than itself => Sexual stimuli interfere with effectiveness of ads => Sexually suggestive material blinds audiences to other information in the ad, including the name of the product itself 107 10. Let’s Spend the Night Together
  108. 108. VAMPIRE EFFECT: Titillating content (such as sexually suggestive) was sucking attention from what the ad was actually trying to convey However, it is the attention that is more effective than suggestive content itself  controversial ads can be more intensely effective than sexually suggestive ads. 108 10. Let’s Spend the Night Together
  109. 109. Extreme beauty or celebrity can also take our attention away from crucial information in an ad  Celebrities overshadow the message of an ad Women are turned off by extremely attractive models The more provocative a model’s expression, the more disinterested or bored the women is in buying a product. Twice as many people are willing to buy products that portrayed love in their ads than those that showed sex 109 10. Let’s Spend the Night Together
  110. 110. Consumers are far more likely to identify with and purchase products that look more like them Consumer generated advertising is the trend these days – ads that allow everyday people to participate in the campaigns We can connect and identify with the brand more easily. Average looking people seem more welcoming and inviting us to the brand 110 10. Let’s Spend the Night Together
  111. 111. People respond to real or ordinary looking models more due to their desire for AUTHENTICITY Consumers believe in what such models are saying, unlike ‘stories’ narrated by supermodels, where they intrinsically feel whatever being told about the product is ‘phony’ In a more user-generated world, marketers can sell more by using charismatic yet ordinary people with real stories 111 10. Let’s Spend the Night Together
  112. 112. 10. Let’s Spend the Night Together Why is Sex and Beauty so prevalent in ads? MIRROR NEURONS: Looking at the idealised bodies gives them an impression that using the product will make them feel as confident about their body as projected in the ads. However, future predictions suggest that sex in ads will go down and will no longer serve the purpose of catching ones attention as well. It will be the activity in one’s brain that can help determine and predict buying behaviour 112
  113. 113. Chapter 11 113 Conclusion Brand New Day
  114. 114. 11. Conclusion The book is a meeting between science and marketing & sheds light on how and why people buy. It tells us the impact on our hidden preferences unconscious desires, irrational dreams & opinions through neuroimaging 90% of the buying behavior is unconscious & most marketing & branding strategies are a guessing game 114
  115. 115. 11. Conclusion Examples of companies leveraging Neuromarketing 11
  116. 116. 11. Conclusion Studies reveal that expensive products presented before the consumer leads to a flurry of activity in the brain  perception of pleasantness 11
  117. 117. Human beings are poor reporters of their own actions Brain scans have revealed information on why products were not working Traditional Research methods only get a minuscule part of the brain processes that underlie decision making 117 11. Conclusion
  118. 118. Most buying decisions are unconscious. Our brain makes the decision & we are hardly aware of it Fear based advertising can be most persuasive & memorable as it plays on our insecurities about ourselves Our brains are hardwired to bestow upon brands a religious importance and as a result people show brand loyalties 118 11. Conclusion
  119. 119. Branded things are perceived much more valuable & special than they actually are. NEUROMARKETING will help us predict the directions and trends that will alter the face of commercials in future It will help consumers understand what drives & motivates them & help them avoid becoming the slaves of their subconscious mind on which the marketers play. 119 11. Conclusion
  120. 120. 11. Conclusion When things are branded our brain perceives them as more special and valuable 12 The prices of the Seki Saba fish in Japan skyrocketed when it was given a brand by the Govt
  121. 121. 11. Conclusion When things are branded our brain perceives them as more special and valuable 12
  122. 122. 11. Conclusion Biggest Lesson Traditional research of asking consumers for reasons why he/ she bought a product will only reveal a minute part of the information. Neuromarketing explains much more. 12
  123. 123. 12 References • • • • media/ • confusion/ • • But-In-Line-With-Inbound • • • • american-idol-it-was-like-working-in-hell.html • coming-soon-300123 • articleshow/20859259.cms
  124. 124. Over 1 Million views from more than 100 countries Prof. Sameer Mathur Top 1% most viewed Over 250 presentations on Marketing