Introduction to Neuromarketing - Neural sense

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An introduction to the world of Neuromarketing, along with case studies, and how we offer neuromarketing to businesses

Published in: Business, Technology

Introduction to Neuromarketing - Neural sense

  1. 1. Neural SenseIntroduction to Neuromarketing
  2. 2. Agenda: The Brain & Marketing• Background – Why the brain in Neuromarketing – Anatomy for Marketers – Emotions & Reason• Traditional Marketing Research pitfalls – Neuromarketing’s Relevance• Neuromarketing Techniques – Technologies – How we Package them• Case Studies
  3. 3. BackgroundWhy the Brain in Neuromarketing?
  4. 4. The Brain According to Plato
  5. 5. The Brain as it Really Is
  6. 6. Why the Brain in Neuromarketing• System 1 vs. System 2 (Kahnemann D)• The Subconscious & Emotional brain integral to consumer decision making• We are not the rational agents economists historically thought us to be• Heuristics that we apply – Affect Heuristics – Availability Heuristics – Recency Bias – Anchoring
  7. 7. Pioneering Better Branding & Marketing• Customers bombarded with messages every day – Retina sends 10m bits/second to the brain• Emotions key to decision making process and the relationships we have with brands• Does brand image communicate correct emotion convincingly?
  8. 8. When Emotions Make Better Decisions
  9. 9. BackgroundAnatomy for Marketers
  10. 10. Anatomy for Marketers• Tripartite brain• Cortex and Limbic System• Cortex has 4 lobes (Frontal, Temporal, Parietal and Occipital)• Frontal – Decision making, planning, concentration, attention, reasoning• Temporal – Auditory processing, auditory sensory integration• Parietal – Visual Spatial processing• Occipital – Visual Processing, mirroring, visual analysis
  11. 11. Limbic System - brief Memory formation and emotional Meaning memory processing with Temporal lobe Emotional processing, emotional intensity andemotional learning center
  12. 12. The Amygdala
  13. 13. BackgroundEmotions and Reason
  14. 14. Emotion vs Feelings • 95% of Mental Activity is Subconscious • Emotions = Subconscious • Feelings = Cognitively Filtered • Traditional Research only accesses FeelingsIs it prudent to base decisions based on 2% of our mental activity?
  15. 15. © 2011. All Rights Reserved. Fact: Emotion Sells • 880 UK Case Studies – IPA • Emotional Messages Trumpon Effectiveness Awards Rational Ones 880 U.K. Case Studies • “Soft Sell” can reduce price sensitivity • Enduring sense of brand differentiation Source: IPA Effectiveness Awardsarch 2nd , 2009
  16. 16. Emotional Processing
  17. 17. Traditional Research Pitfalls Neuromarketing’s Relevance
  18. 18. Traditional Research Pitfalls• Tendency towards pleasing the interviewer – What answer would a good person give? Or – What answer does the interviewer want to hear? (Hawthorne/Halo effect)• Relies heavily on cognitive filtering of emotions• Not always accurately interpreted• Conscious perceptions less than 5% of full perceptual experience
  19. 19. Traditional Research Pitfalls• TV/Radio Ads – Specificity of emotional response – Intensity of response – Inaccuracy of self-report – Response Latency – Focus Group pitfalls• Product Design/Packaging – What aspects are most appealing?
  20. 20. The Relevance of NeuromarketingWe need to understand the decision makinglandscape that is coloured by emotion and subconscious thought processes
  21. 21. Advent of Neuromarketing Neuromarketing Techniques
  22. 22. Neuromarketing Techniques• Psychophysiological measures – Heart Rate (variability) – Skin Conductance – Temperature – Breathing rate• Neurological Measures – Electroencephalograph (EEG) – Functional Magnetic Resonance Imaging (fMRI)• Facial Coding Analysis
  23. 23. Neuromarketing Techniques• Questionnaires – Social Psychology measures – Measures of belief systems – Metacognitions – Memory and attention checks• Other Neuromarketing measures – Eye-tracking
  24. 24. How We Package Them• Emotive Basic• Emotive Plus Granularity• Emotive Advanced• Emotive Professional• Emotive Investigate• Recommended number of respondents: 30
  25. 25. Emotive Plus• Galvanic Skin Response• Measure levels of arousal during stimulus response• Powerful for ethnographic testing• Applications – Ad testing (radio, TV) – Ethnographic (product experience) – Logo Design – Product Design – Taste-testing
  26. 26. Demonstration
  27. 27. Emotive Advanced• Electroencphelography• Measure levels brain activity during stimulus presentation• Good for measuring Arousal, Valence, Memorability, Attention• Applications – Ad testing (radio, TV, print) – Logo Design – Product Design – Taste-testing
  28. 28. EEG: How it Works• Sensors measure electrical potentials on scalp• Provides output for – Location on the scalp (brain region) – Type of Brain Wave • Alpha - Consciousness • Beta - Concentration • Delta - Disengagement • Theta – Emotion/Memory processing • Gamma – Integration of ideas
  29. 29. Emotive Professional• Facial Coding• Measure facial muscle movements• Powerful at measuring emotional responses to stimuli• Applications – Ad testing (radio, TV, print) – Logo Design – Product Design – Casting testing – Focus Groups & Indepth Interviews
  30. 30. Facial Coding?• Charles Darwin 1872• Facial Expressions are – Universal – Spontaneous – Abundant
  31. 31. How Facial Coding Works• We’re all facial coders• Facial Expressions can be shown• 43 Facial Muscles• 23 Action Units• 6 Core Emotions
  32. 32. Emotive Investigate• Functional Magnetic Resonance Imaging• Measure levels brain activity during stimulus presentation• Good for investigating fine-grained response and brain processes• Applications – Ad testing (radio, TV, print) – Logo Design – Product Design – Taste-testing
  33. 33. Neuromarketing in Action Case study samples
  34. 34. Brands Using Neuromarketing
  35. 35. Campbell Soups Example
  36. 36. Research on New Scientist
  37. 37. Research with New Scientist
  38. 38. Testing Ads with Emotive Advanced• We tested 3 different Advertisements: – Individually to ascertain strong & weak points – Comparatively to ascertain which is most effective• Using Neuromarketing Techniques – No questionnaires, just psychophysiological measures
  39. 39. NeuroMarketing? Use: Focus Groups &Traditional research Questionnaires5% Thought Processes In this study we used: EEG & GSRNeuromarketing95% Thought Processes
  40. 40. Sample Radio Ad
  41. 41. Galvanic Skin Response Snapshot 20 secs “…woo hoo, woo hoo”
  42. 42. Emotional Processing (EEG)Emotional Processing 20.5 sec: Moderate emotional engagementCognitive Processing 32sec: High Cognitive processing
  43. 43. Valence/Arousal (EEG) Arousal Valence
  44. 44. Testing a TV AdEmotive Professional
  45. 45. Facial Coding in Action
  46. 46. Neuromarketing Conclusions
  47. 47. Neuromarketing – in its teens• Neuromarketing is still a growing field• Many conclusions are being drawn without proper scientific foundation – E.g. “iPhone Love” – Very small sample sizes• Industry Standards still to be set: NMBSA• Popularity is growing
  48. 48. Finding the Buy Button?
  49. 49. Additional Resources Neural Sense @NeuralSense Neuralsense.wordpress.com Emotionomics How We Decide Buyology
  50. 50. Thank You Neural Sensebrandon.bester@neuralsense.co.zadavid.rosenstein@neuralsense.co.za 082 780 8916 f: /NeuralSense t: /NeuralSense www.neuralsense.co.za

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