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Presentation neuromarketing

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Presentation neuromarketing

  1. 1. NEURO- MARKETINGBY: FREDERICA KOHLLEPPEL, VALMA TIKKAKOSKI, HARPEROZBIRIM, NIKOLETTA KOSMA AND LOUISE DANDANELLTUTORIAL PRESENTATION, 28 FEBRUARY, 2013
  2. 2. AGENDA• Introduction - History – Purpose• Techniques – Usage• Case Study• Critiques• Conclusion• Future Perspectives
  3. 3. WHAT ISNEUROMARKETING?• New innovative form of market research• The practice of using technology to measure brain activity in consumer subjects.• More effective than traditional market researchWhy?• Removes subjectivity and ambiguity• Common metrics: • Respondent attention level • emotional engagement • memory storage
  4. 4. HISTORYFirstly introduced in June 2002 by:  An Atlanta advertising firm: BrightHouse  For the creation of a business division using fMRI for marketing researchOn the basis of neuroscience researchOne manifestation of neurocultureThe premise:  consumer buying decisions are made in split seconds in the subconscious, emotional part of the brain Thus:What we like, dont like, want, fear, are bored by, etc. isindicated by our brains reactions to brand stimuli
  5. 5. PURPOSE• To better meet "unmet" market needs, connect and drive "the buy".• To inform the development of products and communications - really to inform the brands 4Ps• To guide marketers to just the right product designs, packaging and ad messages to boost sales.
  6. 6. METHODS INNEUROMARKETING• EEG‟s (Electroencephalography) and fMRI (Functional Magnetic Resonance Imaging) • WTP – Willingness To Pay • Expectation and experience measurement • Hedonic rating scales • Brain-mapping in the buying process
  7. 7. SO WHAT ARE THESEMETHODS MONITORING ?• Basic – it monitors our emotions!• We feel more than we think• The “New Brain” (neo-cortex) VS: The “Old Brain” (reptilian brain)• Therefore: what we really react on are exposed • This can be used to create messages and products that speaks to the subconscious part of our brain that control the way we act
  8. 8. TECHNIQUES IN RELATIONTO MARKETING• Market Research and Product Development• Facial expression tracking• Eyetracking • Especially in online media
  9. 9. WHO USESNEUROMARKETING?• Brain Scientists• Neurologists• Hollywood• Advertising agencies• R&D departments in P&G, Unilever, Coca Cola etc.• Facebook• Google• And many more….
  10. 10. COCA-COLA VS. PEPSI CASE STUDY
  11. 11. WHAT & WHY• For humans, behavioral preferences for food and beverages are affected by a great number of sensory stimuli, hedonic states, expectations, semantic priming, and social context.• Additionally, cultural influences also affect eating and drinking habits• In this experiment, Coke and Pepsi were delivered to humans while using functional magnetic resonance imaging (fMRI).• Two conditions were examined: (1) anonymous delivery of Coke and Pepsi and (2) brand-cued delivery of Coke and Pepsi  AKA brain response to both drinks• Reasons for choosing Coke and Pepsi as stimuli• Hypothesis of study
  12. 12. THE VIDEOhttp://www.youtube.com/watch?v=kmMWJ4z8ssA
  13. 13. PROS ANDCONS
  14. 14. NEUROMARKETING -PROS• Reaching unconscious mind • 90% of purchasing decisions (Lindstorm) • Sex sells? • Health warnings – reverse effect
  15. 15. NEUROMARKETING -PROS• Convincing sales presentations + compelling commercials + 
  16. 16. NEUROMARKETING -PROSMore reliable than traditional MR techniques • “Neurons don’t lie” • Environment • Formulation of answers vs.
  17. 17. NEUROMARKETING -PROS• Lower prices• A better world?
  18. 18. NEUROMARKETING -CONS• Cost - $ 50K (Forbes) • return?• „Brainwashing‟ Marketers – bad image
  19. 19. NEUROMARKETING -CONS• Ethical concerns
  20. 20. CONCLUSION• Is a handy tool for marketers in the research process• No matter which industry you are in you can incorporate neuromarketing• Helps to examine cultural influences on brand perceptions• Neuromarketing can be both good and bad
  21. 21. FUTUREPERSPECTIVES• It will become a given in future product development (Ariely and Berns, 2010)• The next “big thing” in marketing research (Ariely and Berns, 2010)• Could possibly achieve a better cost/benefit trade-off• Evidence is found that new MVPA measurement will reveal hidden information about consumer preferences
  22. 22. FUTUREPERSPECTIVES• It will become a given in future product development (Ariely and Berns, 2010)• The next “big thing” in marketing research (Ariely and Berns, 2010)• Could possibly achieve a better cost/benefit trade-off• Evidence is found that new MVPA measurement will reveal hidden information about consumer preferences
  23. 23. DISCUSSION1. DO YOU THINK NEUROMARKETING ISMANIPULATIVE?
  24. 24. DISCUSSION2. DO WE NEED FUTURE LEGISLATION ON THISSUBJECT?

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