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Directed Study Neuromarketing

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A 60 minute presentation introducing the burgeoning marketing facet called neuromarketing

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Directed Study Neuromarketing

  1. 1. Neuromarketing 101The Importance of Marketing to the Brain
  2. 2. The Marketing Landscape✤ millions of jobs depend on communicating and persuading the brain✤ trillions of dollars spent✤ billions of dollars gets wasted -- corrosive or ineffective✤ marketing jobs are competitive✤ many marketers adopting new approaches to better understand the way we interact, communicate, and attribute value
  3. 3. Why the Brain? “It’s a no-brainer”✤ brain makes behavior✤ brain creates your world and and the world of consumers✤ brain filters out the unnecessary, navigating you to perform important actions✤ brain tells your body what to pay attention to/what to remember
  4. 4. Brain Statistics✤ a brain processes sensory input subconsciously✤ brain activity occurs below consciousness threshold✤ 5 senses capable of absorbing 11 million bits of info per second✤ conscious brains can only process 40 bits per second✤ 99.999 percent subconscious to conscious brain processing✤ 95% of purchases are determined subconsciously (we are unable to access are subconscious)
  5. 5. Brain FunctionalityPart IPart I ✤ Think -> Do -> Feel: OLD MODEL (wrong)
  6. 6. Brain FunctionalityPart IIPart II ✤ Feel -> Think -> DO : NEW MODEL (right)
  7. 7. Marketing Research Flaws✤ measure thinking, not feeling✤ 80 percent of new products in marketplace fail✤ Traditional research solely measures the cortex when it is our subconscious (limbic system) and reptilian brains that drive buying behavior✤ Cortexes alter original data that the brain recorded (aka the truth)✤ people cannot articulate why they do what they do✤ people lie✤ dominant focus group participants
  8. 8. Reasons to Change✤ Capitalism driven by hands of the consumer -- misunderstanding of consumer means failure in capitalism✤ Languages, norms, conventions, etc. obscure results of traditional methods✤ BRAIN IS UNIVERSAL✤ For the good of science...it’s a new horizon in marketing!Learn how to: ✤ make consumers notice you ✤ make consumers like you
  9. 9. Benefits of NeuromarketingApprehension✤ make products and messages more effective -- marketing is everything✤ understand the design cues and aesthetics that appeal to our inner truths and sensibilities...which formed 100,000 years ago
  10. 10. What is Neuromarketing?Offspring of Psychology + Neuroscience + EconomicsEconomicsNeuroscience -- imaging technology, measuring brain’s areas ofactivation✤ EEG✤ fMRI
  11. 11. Neuro-History✤ 1920’s Hans Berger develops the first brainwave reading machine called the EEG✤ EEG = Electroencephalography✤ Berger first to design sensors to read the electrical signals that naturally emanate from the brain✤ Hans’ machine had 8 sensors, new standard is 64 sensors✤ 80 years later, technology incubates the Neuroscience field
  12. 12. The Neuromarketing BOOMPart IPart I1. Technological Revolution✤New innovations in computer technology provide us with the tools tounderstand the complexityFrom this, we learned: ✤ brain has 60,000 miles of wiring ✤ brain is a complex, interwoven series of networks ✤ brain (not all senses) is capable of approx. 200 million billion calculations per second
  13. 13. The Neuromarketing BOOMPart IIPart II2. Understanding the Brain is a Series of Several Networks ✤ neurons migrate to different areas (networks) of the brain ✤ each area is responsible for a different function and different emotion(to be discussed in greater detail later in the lecture)
  14. 14. Part III3. Marketing Research Shortcomings ✤ created a need in the market research world ✤ new method necessary for creating more accurate, reliable, and actionable knowledge --> MAKE BETTER BUSINESS DECISIONS
  15. 15. The Neuromarketing BOOMThe FormulaThe FormulaEXPONENTIAL GROWTH IN KNOWLEDGE OF BRAIN+COMPUTER ADVANCEMENTS+CHALLENGES OF EXISTING RESEARCH TACTICS= NEUROMARKETING BOOM
  16. 16. Marketer’s Ultimate Goal: Tapinto Subconscious✤ subconscious -- marketer’s sweet spot✤ subconscious -- where initial product interest, purchase intent, and brand loyalty are formed
  17. 17. A Neuromarketer’s Toolbox EEG(Electroencephalography) fMRI(functional Magnetic Resonance Imaging)Biometrics/Facial Coding
  18. 18. EEG Electroencephalography
  19. 19. EEG Electroencephalography✤ passive technology, uses sensors (highly sensitive microphones)✤ sensors capture short bursts of noise from electrical signals that brainwave activity produces✤ noninvasive/comfortable✤ sensors usually embedded into a cap✤ neurological activity -- up to 2,000 low-voltage signals every second, @ each sensor location✤ 16 minimum, avg. 64 sensors on all parts of brain✤ must examine all areas of brain to identify which systems are
  20. 20. EEG Electroencephalography ct....✤ White noise produced from muscle movements (eye blinks = 100x electric voltage that brainwaves produce BRAIN METRICS (part & parcel with eye-tracking***) : 1) Attention 2) Emotional Engagement 3) Memory Retention
  21. 21. EEG Criticism✤ only measures brain activity at the neocortex level, though neocortex is touted as a reflection of limbic system activity
  22. 22. fMRI functional Magnetic Resonance Imaging✤ Primarily used for medical researchProcedure: step 1: lie down in narrow long tube surrounded by magnets step 2: magnets produce electrical fields step 3: electrical fields inputted into computer step 5: computer renders image, displaying oxygen levels in the brain’s blood flow
  23. 23. fMRI functional Magnetic Resonance Imaging✤ every brain section needs oxygen via blood to function✤ measures increased blood flow in limbic system
  24. 24. fMRI Criticisms✤ 5 second delay for blood to flow to specific part of the brain✤ difficult to determine precisely what triggered the increased blood flow
  25. 25. Biometrics✤ physiological responses from external stimuli -- some biometric measurements directly linked to limbic system activity✤ examples: eye-tracking, heart-rate, sweat glands, facial coding
  26. 26. Biometrics Criticisms✤ possible lag-time between physiological response to stimuli and psychological response✤ many altering variables -- fatigue, medical conditions, etc.✤ peripheral confirmation
  27. 27. Evolution of the BrainThe Primal Brain
  28. 28. Anatomy - 3 Levels of Brain - - 3 Levels of Brain - 1.Neocortex (conscious) --- 7,000,000 years old 2. Limbic (subconscious) --- 100,000,000 years old3. Reptilian (subconscious) --- 450,000,000 years old
  29. 29. The OLD BrainPart IPart I✤ limbic and reptilian systems have been in us for approx. 100,000,000 years+ ... gained prominence in reptiles & dinosaurs...ruled the earth for 135M years✤ reptilian relies on instinct for survival✤ limbic uses emotion, memory, & attention to filter encounters✤ 6 emotions: arousal, confident, inspired, unimpressed, annoyed, disappointed
  30. 30. The OLD BrainPart IIPart II✤ remember: we’re animals (primates) too... only we can think linearly, develop complicated languages, formulate/ understand metaphors, etc.✤ confusing the OLD brain = brain gives up = negative association with the brand/company✤ wants easy, simple, “zen-like” marketing ploys✤ harbors pleasure/reward circuits, which get cemented after repetition✤ SELL TO OLD BRAIN by integrating simple, clean, emotionally engaging marketing tactics
  31. 31. The NEW Brain✤ neocortex✤ first emerged as a instrument to store food, plan, plant, hunting, and other survival duties✤ absorbs and emits culture✤ SURVIVE to THRIVE✤ duty = to keep the old brain happy (goal-driven behavior)✤ SELL TO NEW BRAIN by “giving consumer clear, accurate directions for finding and obtaining that goal”
  32. 32. With Neuromarketing:✤ we know now what the brain wants/rejects✤ what the brain is frustrated by✤ what the brain ignores✤ what the brain feels is novel (brain can’t ignore novelty)
  33. 33. Takeaways✤ brain has precious resources; limited at what it can process & short span of attention✤ simple images/copy, while still captivating brain✤ use direct verbs since their simpler
  34. 34. BRAIN 101“every behavior, every intention, every dream begins in the brain”
  35. 35. Brain CellsPart IPart I✤ brain = network of billions of individual cells called neurons✤ neurons = electrically charged. basic working units of brain and nervous system✤ every brain function requires a certain # of neurons in specific part of the brain✤ neurons: 1. collect to form various brain structures 2. acquire ways of transmitting messages to other parts of body to perform functions 3. learn how to control and interact with environment (motor to memory)✤ cell body + dendrite (receiver) + axon (messenger) = neuron
  36. 36. Brain CellsPart IIPart II✤ neurons connect to other neurons ... tens of thousands of connections on just one cell✤ neurons compete with each other for chemicals, connections (synapses) ... some win, some lose, some die (why children have more neurons than adults)
  37. 37. Charging and Transmission of aNeuron✤ neurons receive electrical impulse (via dendrite) -> processes signal, then prepares to send it to another neuron (generates action potential [100 mi./hour]) -> action potential fires, channeled in stretching axon -> charge produces diminutive electrical signal -> axon connects to dendrite (via synapse) -> neurotransmitter released
  38. 38. RECAP✤ neuron: brain cell, basic working units of brain (nucleus + cell body+ dendrite + axon)✤ dendrite: branch of neuron that receives electrical impulse✤ axon: branch of neuron that electrical signal is transmitted through✤ action potential: electrical charge in neuron, pre-discharge✤ synapse: port between connecting neurons✤ neurotransmitters: chemicals (known as chemical messengers) brain releases when neurons bond to each other...chemicals bind receptors to synapse
  39. 39. Brain TopographyPart IPart I4 Parts of Neocortex(Focus Groups, EEG -> any cognitive metric) ✤ 1. Parietal Lobe - space ✤ 2. Frontal Lobe - movement & speech & problem solving ✤ 3. Occipital Lobe - vision ✤ 4. Temporal Lobe - hearingMain parts of Limbic System
  40. 40. Brain TopographyPart IIPart IIMain parts of Limbic System(emotions, memory, chemical senses) ✤ piriform cortex - olfactoryMain parts of Reptilian System(Biometrics -> survival)
  41. 41. The Limbic System vs. ReptilianSystem
  42. 42. Neuromarketing MetricsEEG // fMRI // Biometrics // Eye-Tracking // Facial Coding
  43. 43. EEG // fMRI // Biometrics // Eye-Tracking // Facial Coding✤ EEG --> electrical impulses on the surface area of the brain (cortex)✤ fMRI --> oxygenated blood flow into different areas of brain✤ Biometrics --> heart rate, skin conduction, motion and respiration (all areas of brain in the reptilian complex)✤ Eye-Tracking --> precise visual response to stimuli✤ Facial Coding --> micro-expressions = instant indication of emotions in limbic and/or reptilian system
  44. 44. They Measure...Primary Metrics: ✤ 1. ATTENTION ✤ 2. EMOTIONAL ENGAGEMENT ✤ 3. MEMORYDerived Metrics: ✤ 1. PURCHASE INTENT/PERSUASION ✤ 2. NOVELTY ✤ 3. AWARENESS/UNDERSTANDING/COMPREHENSION...in response to brand/product/packaging/advertising/in-storestimuli...
  45. 45. ATTENTION -- Primary Metric✤ addresses: Do people notice us?✤ attention = starting point for all marketing✤ WHEN to look and WHERE to look✤ people do not have access to the predecessor processes that lead up to attention
  46. 46. EMOTIONAL ENGAGEMENT-- Primary Metric✤ at a subconscious level, our brains are constantly updating our emotional engagement with the world around us ... left undetected at a conscious level✤ 6 emotions: Arousal, Confidence, Inspired, Unimpressed, Annoyed, Disappointed✤ emotional engagement = connection we feel to stimuli at a specific moment in time
  47. 47. MEMORY -- Primary Metric✤ memory = what we depend on when we’re buying things✤ no remembrance = no influence on product purchase✤ to conjure up memory -> brain encodes, then retrieves✤ with neuromarketing, predict the likelihood that someone will remember something after exposure to stimuli✤ implicit memory = process of memory influencing attitudes, decisions, & behaviors w/out entering conscious thought
  48. 48. Case Study: Kleenex vs. Andrex “They ‘feel’ that Andrex is somehow indefinably better than Kleenex" “They ‘feel’ that Andrex is somehow indefinably better than Kleenex"
  49. 49. PURCHASEINTENT/PERSUASION --Derived Metric✤ MEMORY + EMOTIONAL ENGAGEMENT ... Advertisement comes to memoryProcess ✤ step 1: Advertisement/Somatic Marker comes to memory ✤ step 2: Past emotions begin to surface
  50. 50. NOVELTY -- Derived Metric✤ brain loves novelty✤ example: Monkey sees new fruit from tree (increased in chance in survival) -> caught his attention and he has to, in hindsight, memorize where he saw it✤ novelty influences interest, surprise, attraction, and potentially purchase✤ novelty is perishable✤ novelty ... boredom ... irritation
  51. 51. THE FUTURETapping Into The Brain’s SubconsciousDate
  52. 52. Top SensoryBrandsBranding’s Sensory SymphonySIGHT // SOUND // SMELL // TASTE //TOUCH
  53. 53. SightTiffany & Co.’s Trademark Blue
  54. 54. SOUNDMercedes Benz’s Doors
  55. 55. SmellSingapore Airlines’ Signature Scent
  56. 56. Bang &OlfusenWeighted Remote

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