Neuromarketing 101 - A Primer

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A collaboration of existing findings of both neuroscience and marketing research as it pertains to neuromarketing. Here neuromarketing definitions, technologies, validation and application are discussed. http://lunaweb.com

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  • Neuromarketing has a strict definition of using technology to measure brain response to advertisements and marketing strategies, but also can include a more loose definition of using psychology or any brain function to market a product.
  • Your brain runs on glucose. When your brain is used, it drains glucose. Studies show that brain areas responsible for learning and memory drain particularly fast when learning and memory tasks become difficult. The brain does not ever want to starve or run out of glucose, therefore, the brain is going to take as many shortcuts as possible to conserve that energy during a task to achieve a goal. The brain wants to do the least amount of work to get the same task done..
  • For example, when you ’re on the internet and you go to a webpage with a ton of reading, you may conciously think, “Eh, I don’t want to read all of this..” and you skip through it, missing information that the website writer thought was important. You ’re trying to do the least amount of work to get the gist of what that site is saying. That ’s a conscious example.. You CONSCIOUSLY think “This is too much to read” Unconscious: you may not notice that looking at this is actually stressing you out.. You ’re having a negative experience and your stress hormones are skyrocketing. Your brain doesn ’t want to use all the glucose required to read through this site.
  • So, cognitive neuroscientists conclude that the self-conscious mind (or neo-cortex) contributes only about 5 percent of our cognitive activity. That means that 95 percent of our decisions , actions, emotions and behaviors are derived from the unobserved processing of the subconscious mind. (Lipton, 2009 and Szegedy-Mazak 2005 - see end notes). Conclusion: 95% of our decisions happen unconsciously without our awareness.     Lipton, Bruce with Steve Bhaerman, Spontaneous Evolution, Hay House, Carlsbad California, 2009.pgs.31-34 Szegedy-Mazak, Marianne, "Mysteries of the Mind: Your unconscious is making your everyday decisions," U.S.News & World Report, February 28, 2005 (accessed in Burce Lipton's book October 2011) Lipton, 2009 and Szegedy-Mazak 2005
  • Sales brain and media sauce created this diagram which matches what many scientists and researchers have found: humans contain 3 brains.. The new brain which is rational thought, the middle brain: emotional thought… and finally the reptillian brain. The oldest brain (evolutionarily), it’ s the part that causes us to go into fight or flight mode. Like when you jump and run when you see a stick because you thought it was a snake. You don’t rationalize “HEY theres a snake! And then decide to run.. Your brain decides for you. Again, if someone goes at you with a punch and fakes you out or maybe if you hear a loud sudden noice, you still flinch even when they do it multiple times.. This reptillian brain is therefore known by scientists as the area that makes decisions.. It’ s the part in animals that makes them eat when its time to eat or run away from a predator. And it still works the same way in humans. This therefore is the area which neuromarketers TARGET!
  • Marketing Example: Lets say you ’re producing a product.. Lets say a marker. You can make this product in any color you want to differentiate yourself from your competitors products.. So you make some samples (a red and a blue marker) and you put a traditional focus group together and you ask everyone what color do you like better? Everyone says red, so you make red markers anticipating most people will buy your red marker over your competitor.. The thing is.. Your product doesn ’t end up selling as much as you’d like it to… Consciously, everyone thought they liked the red marker.. But then they didn ’t buy it… subconsciously, something must be going on.. In neuromarketing, you can throw those people in an fMRI scan, ask them if they like red or blue better. They will tell you they like the red, but their brains will show you they really like the blue better… so instead the company can manufacture blue ones and they will sell. And maybe the brain scan will show they blue promotes more calmness than red and that could be a possible reason why people actually like it better so use that in the branding to show the value of a good blue marker This is important because with How does this relate to marketing? $32.5 billion Kantar Media Intelligence in 1 st quarter of 2011 Comes close to 150 billion dollars everyyear.. One large company spent a over 4 billion on their annual budget.. With that kind of money being thrown around, companies want to know what adds are going to get us to act, to be motivated to become subscribers.. . In the past companies have used focus groups but knowing that 95% of your decisions are made by the subconscious how can using research based on conscious BIASED answers do these companies any good. Another point is that you don’ t need an fMRI scan to know that blue might sell better. Marketers in the past have chosen to make their products blue over red because blue reminds people of the ocean and people vacation to the ocean to relax. Also red is known to be an “ angry ” color (think bull ’ s target). Marketing has been using psychology since buying and selling begun.
  • Before I tell you more about these new technologies.. A quick neuroscience lesson If a part of the brain is “activated” it means that part of the brain is working the most. For instance if I show you a silent movie and the room is quiet, the information will move through your eye and your visual cortex/occipital lobe (that processes visual information) will be activated. The brain will then will send that information to other brain areas so that you can identify what the objects are, and maybe what is the emotional story going on..all from the visual information. There are new technologies which can monitor your brain activity while you are watching advertisements. The more something is activated, the more it has your attention, gets embedded into your memory.. the more you create an emotional attachment . neuromarketers are using information like this to determine which types of ads are more successful and WHY. What about that ad made you want to buy it.
  • Also, Steady state topography. Google, Disney, Microsoft and Chevron use neuromarketing.
  • You can measure biometrics while someone is watching an advertisement. Galvanic Skin Response measures change in skin conductance which varies with moisture (sweat) levels. This is of interest because the sweat glands are controlled by the sympathetic (involuntary) nervous system so skin conductance is used as an indication of psychological or physiological arousal. (This is how a lie detector works). So if they see a scary movie and a door suddenly slams unexpectedly, the person may jump and a large spike will occur at the time of the door slam. GSR can detect excitement at a given time. Bill and melinda gates foundation given an educational grant to perform a study to see how engaged students are. Students will wear galvanic skin response bracelets to determine how bored or excited they are during a lesson.
  • Measures point of gaze. Wear glasses that track your retina while watching a screen.
  • Software creates maps to show where your eyes looked at what time during an advertisement.
  • Measures electrical changes across the scalp- so only the outer area of the brain. Excited- so it can measure emotions.. Just don ’t know which emotions- so fear, happiness, exitement all show the same pattern. REALLY small time lag. Not so good with specifically what area.. So .. You watch a commercial and EEG shows which parts of the commercial incite the most emotion
  • Functional magnetic resonance imaging, or fMRI, is a technique for measuring brain activity. It works by detecting the changes in blood oxygenation and flow that occur in response to neural activity – when a brain area is more active it consumes more oxygen and to meet this increased demand blood flow increases to the active area. fMRI can be used to produce activation maps showing which parts of the brain are involved in a particular mental process. So show a subject a commercial and watch their brain activation. See which parts of the commercial activate which brain areas.
  • fMRI can be used to produce activation maps showing which parts of the brain are involved in a particular mental process. Color indicates higher activation.
  • Which one is the best one? Using them all TOGETHER. Sands Research, a neuromarketing company, ranks superbowl commercials based on how much brain activation they produce. 2012- Pepsi commercial was ranked #1. After watching the video, notice the Pepsi logo is not ever “in your face”. Also.. Where there’s pepsi, there’s music? And the slogan is in old english font? Why would pepsi have done this? Wikipedia of Neuromarketing: In a study from the group of Read Montague published in 2004 in Neuron , [7] 67 people had their brains scanned while being given the " Pepsi Challenge ", a blind taste test of Coca-Cola and Pepsi . Half the subjects chose Pepsi, since Pepsi tended to produce a stronger response than Coke in their brain's ventromedial prefrontal cortex , a region thought to process feelings of reward. But when the subjects were told they were drinking Coke three-quarters said that Coke tasted better. Their brain activity had also changed. The lateral prefrontal cortex , an area of the brain that scientists say governs high-level cognitive powers, and the hippocampus , an area related to memory, were now being used, indicating that the consumers were thinking about Coke and relating it to memories and other impressions. The results demonstrated that Pepsi should have half the market share, but in reality consumers are buying Coke for reasons related less to their taste preferences and more to their experience with the Coke brand. To me it looks like Pepsi is changing their marketing strategy.. To shift brain activation towards experience preference, not taste preference. The experience is that where there is music, there is fun, there is Pepsi.
  • So maybe pepsi has changed their marketing.. And maybe sands ranked them the highest as far as brain response.. But what is our behavior showing? Did pepsi increase their sales this year? Study isn ’t done yet.. BUT one UCLA study shows that neuromarketing CAN improve sales.. The study took 67 smokers who were trying to quit smoking, put them into an fMRI to measure their brain response, and showed them 3 actual anti smoking campaign commercials each containing a hot line to call (ie. 1800helpmestopsmoking) They were asked to rate the effectiveness of the commercial (which one is most likely to get them to quit smoking/call the number)
  • Results: Participants Rated C as least likely to get them to call and B as most..
  • The brain was most active to campaign C! By real world results, they mean the conversion rate.. The number of people who actually called the 1800number to quit. Campaign EXPERTS.. Also reported the same thing in rating… SO brain activity increased for C and behavior increased. This is one of the first studies to show that Neuromarkeitng WORKS. . And brain imaging predicted how the GENERAL population would behave as well.. Not just the people from the study.
  • Average fMRI or EEG study can cost average 50,000 according to FORBES Eye trackings range in the thousands.. GSR pretty cheap.. 100 dollars
  • So for contrast.. Use black and white, red and green, yellow and purple.. Contrasting colors on websites to gain attention People prefer smaller widths of content on the web But they actually READ wider widths of content FASTER People prefer smaller widths because they THINK and are CONVINCED that they read smaller width content faster when the reverse is actually true What people want isn ’t necessarily what is best   But memory wise.. fancy font give 82 percent recall Simple font only has 72 percent
  • A crazy messed up disorganized website frustrates people online: your readers. We don ’t need a neuroscience study to know they are less likely to convert if they are stressed out by the homepage. By fancy font, I mean something different from normal standard font - something that stands out. Whether it be this, something with cursive, or if you want a really subconscious message, use a prestigious brand name’s font like Mercedes (really simple font) to give the subliminal message that your website is offering a quality message or product. Width-Bruijn eta al. study showed people prefer reading short line lengths online because it appears more organized and easier to understand. .. . Dyson and Haselgrove, found that people comprehend shorter line lengths better than longer line lengths. So just shorter line length is preferable right? to ensure maximum comprehension and the appearance of simplicity, the perfect line length ranges between 40 and 55 characters per line, or in other words, a content column that varies between 250-350 pixels wide (it depends on font size and choice). If you ’re blogging or selling online, you’ll know that 300-400 pixels wide is much too thin. You have a lot of screen real estate to fill up, and despite the fact that people prefer shorter line lengths, they consistently read longer line lengths (100 CPL, or 500-600 pixels wide) faster.
  • Need to get them to read content by getting them to read the first few lines and hopefully you say something of interest to keep them reading past those first couple lines.
  • Neuromarketing blog and Forbes.com Brainy Marketing Blog by Roger Dooley Socialtriggers.com Sallyhogshead.com Derval Research HQ Test
  • Neuromarketing 101 - A Primer

    1. 1. Neuromarketing Marketing InsightsInteractive ExpeditionJuly 11, 2012Kirby Gilliamkgilliam@lunaweb.net
    2. 2. Outline1. Your brain and consuming2. Neuroscience 1013. Neuromarketing a) Methods/Technology b) Examples c) Application to small businesses4. Neuromarketing resources
    3. 3. Your brain runs on glucose.
    4. 4. Conscious vs Subconscious
    5. 5. MarketingTraditional: “Which color do you like best?”Neuromarketing: Put subject into fMRI and then ask “Which color do youlike best?”
    6. 6. Neuroscience 101 Frontal Lobe Parietal Lobe •Personality •Interprets signals •Emotions from vision, hearing, •Judgment motor, sensory and •Planning memory •Problem solving •spatial and visual •Reward center perceptionTemporal Lobe•Memory Occipital Lobe•Hearing •Interprets vision,•Sequencing color, light and•organization movement “activation”
    7. 7. Methods/Technology• Biometrics• Eye Tracking• EEG• fMRI
    8. 8. biometrics• heart rate• respiration• Galvanic Skin Response
    9. 9. eyetracking
    10. 10. Electromagnetoencephalography AKA EEG
    11. 11. functional Magnetic Resonance Imaging AKA fMRI
    12. 12. Increasedblood flow
    13. 13. Neuromarketing Examples• Sands Research Kings Court 2012• Coke vs Pepsi
    14. 14. Does Neuromarketing REALLY work?
    15. 15. Comparing Ad Campaigns A, B, C
    16. 16. Imaging predicted how the GENERAL population behaved as well!
    17. 17. Application to small businesses.• Cost????
    18. 18. Quick Tips• Find studies already done online.• Target the reptilian brain: – The reptilian brain • is self centered • emotional • likes contrast • likes visual stimuli • likes tangible stimuli • remembers beginning and end
    19. 19. Online Content
    20. 20. • Make the first few lines shorter by adding an image• Recommendation: 100 characters per line (optimal length for reading speed)
    21. 21. Neuromarketing is traditional marketing with technology.• stores have targeted the reptilian brain to create a positive buying environment even before neuroscience technology was available. – Color – Shapes – Organization – Smell – Music
    22. 22. Neuromarketing Resources
    23. 23. Ethics Discussion• Do you think neuromarketing is unethical?
    24. 24. Thanks for interacting! Kirby Gilliam kgilliam@lunaweb.net
    25. 25. • Images Bibliography – Title http://www.google.com/imgres?um=1&hl=en&sa=N&biw=1600&bih=775&tbm=isch&tbnid=-BzF-lwduWTZnM:&imgrefurl=http://www.pazarlamadunyasi.com/Default.aspx%3Ftabid%3D5408%26ItemId%3D719&docid=nu-ylOBXFIDZrM&imgurl=http://www.pazarlamadunyasi.com/Portals/0/Ekim/neuromarketin – Slide 3: http://www.google.com/imgres?um=1&hl=en&biw=1600&bih=775&tbm=isch&tbnid=jLXyJ4OQ0wovCM:&imgrefurl=http://holydonuts.blogspot.com/2010/10/finally-proof-that-donuts-are-miracle.html&docid=sR_ZcaQ3vGBxOM&imgurl=http://cache.gawker.com/assets/images/lifehacker/2010/10/d i:84 – Slide 4 www.wepagesthatsuck.com – slide5 http://www.google.com/imgres?um=1&hl=en&sa=N&biw=1381&bih=780&tbm=isch&tbnid=Px5ehwTlOnFeDM:&imgrefurl=http://tranquilitymindcoach.com/subconscious-vs-conscious-mind/&docid=A-ZqrzsOUIcDwM&imgurl=http://tranquilitymindcoach.com/wp-content/uploads/2011/09/tom1.jpg& – http://www.google.com/imgres?um=1&hl=en&sa=N&biw=1381&bih=780&tbm=isch&tbnid=YlhI4m3ldJ4ywM:&imgrefurl=http://www.transcendlimits.com/power-subconscious-mind.html&docid=VVNrC2ptxJmRrM&imgurl=http://www.transcendlimits.com/image-files/subconscious-mind.jpg&w=500 – S Slide 6, 7 http://neuro.mediasauce.com/ – Slide 9 http://www.google.com/imgres? um=1&hl=en&sa=N&biw=1197&bih=642&tbm=isch&tbnid=ZiES0RgISbwkRM:&imgrefurl=http://www.mayoclinic.com/health/medical/IM03440&docid=TPUUCRIrduQ9MM&imgurl=http://www.mayoclinic.com/images/image_popup/bn7_lobes.jpg&w=400&h=400&ei=hpf9T7PdC9LQ qwH-qbmMCQ&zoom=1&iact=rc&dur=336&sig=103459387994404128462&page=4&tbnh=127&tbnw=127&start=68&ndsp=23&ved=1t:429,r:14,s:68,i:338&tx=63&ty=95 – Slide 10 http://www.google.com/imgres?um=1&hl=en&biw=1197&bih=630&tbm=isch&tbnid=nfWE3MbXJ9_5IM:&imgrefurl=http://soiwasjust.blogspot.com/2010/12/brain-under-construction.html&docid=SxoTLA- Ja7M9DM&imgurl=http://4.bp.blogspot.com/_9PKjb_tLJ7A/TQ7KPitV-8I/AAAAAAAABvE/ECg3n0n5_Qo/s1600/ADHD-Brain-Under-Construction.jpg&w=424&h=283&ei=M5j9T6a_F8HlrQHT- K2LCQ&zoom=1&iact=rc&dur=274&sig=103459387994404128462&page=1&tbnh=117&tbnw=177&start=0&ndsp=20&ved=1t:429,r:4,s:0,i:87&tx=101&ty=67 – Slide 11 http://en.wikipedia.org/wiki/File:Gsr.svg – Slide 12 http://www.google.com/imgres?q=eye+tracking&start=121&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&channel=fflb&biw=1253&bih=542&addh=36&tbm=isch&tbnid=KjgrMfUq7dsY- M:&imgrefurl=http://news.cnet.com/2300-11389_3-6240184.html&docid=V9jN36E2eFVCZM&imgurl=http://i.i.com.com/cnwk.1d/i/ne/p/2008/japantech1_550x384.jpg&w=550&h=384&ei=FvT6T- DYKJOK8QTn1bjRBg&zoom=1&iact=hc&vpx=895&vpy=91&dur=2698&hovh=188&hovw=269&tx=152&ty=145&sig=116511068856481520782&page=9&tbnh=159&tbnw=197&ndsp=17&ved=1t:429,r:5,s:121,i:119 – Slide 13 http://www.google.com/imgres?q=eye+tracking&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&channel=fflb&biw=1253&bih=542&tbm=isch&tbnid=g6UjDxbCK4Sc7M:&imgrefurl=http://evocinsights.com/blog/methodology-spotlight-the-benefits-of-adding- eye-tracking-to-usability-labs/&docid=MrHS9TmehgVe3M&imgurl=http://www.evocinsights.com/img/eVOC_Eye_Tracking_Data.jpg&w=655&h=290&ei=wvP6T4P1O4ak8QTH-pjwBg&zoom=1&iact=hc&vpx=217&vpy=156&dur=5922&hovh=149&hovw=338&tx=184&ty= 47&sig=116511068856481520782&page=6&tbnh=107&tbnw=242&start=75&ndsp=16&ved=1t:429,r:12,s:75,i:385 – Slide 14 http://www.google.com/imgres?q=eeg&um=1&hl=en&client=firefox-a&hs=B9u&rls=org.mozilla:en-US:official&channel=fflb&biw=1253&bih=542&tbm=isch&tbnid=Uz454dnnykl4cM:&imgrefurl=http://neurodevelopmentcenter.com/index.php%3Fid %3D39&docid=9YL3dPRDq3JcxM&imgurl=http://neurodevelopmentcenter.com/uploads/pics/eeg_traces_01.gif&w=495&h=356&ei=TOX6T9nUO4uO8wT87PnFBg&zoom=1&iact=hc&vpx=402&vpy=196&dur=129&hovh=190&hovw=265&tx=140&ty=118&sig=116511068856481520782 &page=1&tbnh=152&tbnw=207&start=0&ndsp=12&ved=1t:429,r:2,s:0,i:144 •Nuerofocus.com – Slide 15 http://www.google.com/imgres? hl=en&sa=X&biw=1197&bih=630&tbm=isch&prmd=imvns&tbnid=N9mAB92cdHIfMM:&imgrefurl=http://neuro.mediasauce.com/&docid=DP1dciyrmBDkNM&imgurl=http://neuro.mediasauce.com/images/fmri_machine.png&w=435&h=324&ei=Bpz9T4CLFsHYqAHB08CLCQ&zoom=1 &iact=rc&dur=211&sig=103459387994404128462&page=1&tbnh=120&tbnw=160&start=0&ndsp=18&ved=1t:429,r:14,s:0,i:133&tx=89&ty=30 – Slide 16 http://www.google.com/imgres?imgurl=http://psychcentral.com/lib/img/fmri_scan.jpg&imgrefurl=http://psychcentral.com/lib/2007/what-is-functional-magnetic-resonance-imaging- fmri/&h=200&w=164&sz=12&tbnid=4ErNiY7ufh_cMM:&tbnh=90&tbnw=74&zoom=1&usg=__XBH6c-Z7tDX1ZD8XKuBFRvRh8A4=&docid=NC0Mp5AbtQ4cnM&hl=en&sa=X&ei=M5z9T9umOMyQqwHtipW6Ag&ved=0CFgQ9QEwAg&dur=191 – Slide 17 Video: http://www.sandsresearch.com/2012KingsCourt.asp – Slide 18, 19, 20 Anti smoking campaign study http://www.neurosciencemarketing.com/blog/articles/neuromarketing-ad-success.htm• Info – Slide 3 http://www.fi.edu/learn/brain/carbs.html#brainpower – Slide 5 Lipton, Bruce with Steve Bhaerman, Spontaneous Evolution, Hay House, Carlsbad California, 2009.pgs.31-34 Szegedy-Mazak, Marianne, "Mysteries of the Mind: Your unconscious is making your everyday decisions," U.S.News & World Report, February 28, 2005 (accessed in Burce Liptons book October 2011) – Slide 8 Video on http://neuro.mediasauce.com/ – Slide 13 http://psychcentral.com/lib/2007/what-is-functional-magnetic-resonance-imaging-fmri/ – Slide 17 Coke vs pepsi http://en.wikipedia.org/wiki/Neuromarketing – Slide 21 http://www.forbes.com/forbes/2009/1116/marketing-hyundai-neurofocus-brain-waves-battle-for-the-brain.html – Slide 22 http://neuro.mediasauce.com/ – Slide 23 http://socialtriggers.com/best-font-website/ – Slide 24 http://socialtriggers.com/perfect-content-width/

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