This slide is prepared on the basis of classes attended by Logesh Kumar an alumni of IIM Ahmedabad. With a great deal to let others also know the recent trends in neuroscience. The viewers and downloaders may use the video links to watch it. Hope you will enjoy the meaningful slides all together.

1. NEUROSCIENCE &
CONSUMER BEHAVIOUR
How companies use science to sell?
A Marketing Perspective…
Prepared by
Logesh Kumar.S B.Sc., MBA., FDPM -IIM Ahmedabad.,
Assistant Professor (Sl.Gr),
Dept. of Management Studies,
Velalar College of Engineering and Technology
(Autonomous),
Thindal,Erode, Tamilnadu, India.

2. Short History of Marketing
Take a dictionary – WEBSTER’S
If u look at “ Marketing “ in the year 1900’s
1900’s – You will not find – “ Market”
1910’s – Marketing – 100 years old
Much more than selling.

3. Who was the 1st Marketer ?

4. Father of Marketing
Rhetoric – the art of
effective, impressive
speaking and writing.
Who is Aristotle ?
A Greek Philosopher and
a scientist
Born in 384 B.C.

5. WHY ARISTOTLE ?
He was a Google at that time.
He knows more than anyone in the world.
He read about Science, Economics, Politics,
Rhetoric, Arts and everything.
He was able to convince people across the
globe

6. Some Antecedents of marketing
 First department store ?
- Mitsui family in 1650 (which is still alive)
 First newspaper ad ?
- For Coffee in England in 1652
 First advertising agency ?
- 1869 N.W Ayers and Sons

7. First Coffee Ad

8.  First brand name product – Commodity ?
- 1870 Pear’s Soap
 First Packaging
- 1880 Laundry soap in England
 First Marketing Research Department
- 1911 Curtis publishing Co.

9. French People says…
Normally if you ask in “ France”, they would
say off course we have invented department
store in 1845.

10. The Fortune at the Bottom of the Pyramid
by C.K. Prahalad
Low –income markets present a prodigious
opportunity for the world’s wealthiest
companies – to seek their fortunes and bring
prosperity to the aspiring poor.

11. The Fortune at the Bottom of the Pyramid

12. • Over a billion people – roughly one-sixth of
humanity – per capita income is less than $1 per
day.
• Doing business with the world’s 4 billion poorest
people – 2/3rds of the world’s population – will
require radical innovations in technology and
business models.
Source : C.K. Prahalad |strategy & competition |Page no: 2-4

13. The Income Gap between rich and poor is growing
- United Nations
The fraction
of Income
accruing
1960 2000 Income Level
To the Richest 70% 85%
To the poorest 2.3% 1.1%

14. Contribution is kind enough
Innovative CEO
INGVAR KAMPRAD BRAND : IKEA
Mission & Vision :
Make stylish furniture
affordable.

16. Modern Marketing Concept
Customer-Oriented Organization Chart
Customers
Front-line people
Middle management
Top
manage-
ment

17. How to measure the success of a
Brand?
• Level of awareness
• No of units sold
Eg : Ford Fiesta & Google’s advertisement

18. Neuroscience and Consumer Behaviour

20. • Brain is a separate object
• Hardest work done by brain is thinking and
reasoning.
NEUROSCIENCE PSYCHOLOGY
CONSUMER BEHAVIOUR
&
MARKETING ACTIONS

21. Neuromarketing
• The 1st published study on Neuromarketing was
in 2003/2004 by Read Montague.
Testing PEPSI & COKE
(People prefer Pepsi’s flavour but Coke’s Brand)
Neuromarketing was added to the Collins
dictionary in the year 2005.

22. Does Neuromarketing really work or it is
science fiction?
• Plays a major role in this new application of
creative marketing.
• Using brain based tools such as
- Eye-Tracking,
- EEG (Electroencephalography)
- FMRI ( Functional Magnetic
Resonance Imaging)
are used to conduct studies about the consumer’s
brain wave, reactions, emotions,etc…

23. Beyond the Ethics
For those marketers among you
There are number of companies such as
• Mynd play,
• Forbes Consulting and
• True Impact Marketing

24. Microsoft & IBM
• Educates potential vendors through websites
• Used Eye Tracking & EEG to analyze brains
response to the various contents, Aesthetics
and web design combinations.

25. Bowerbird’s nest

26. Porsche
• How brain reacts while racing in a Porsche
compared to flying a fighter jet.

27. LEXUS
• They have taken on a different approach to
demonstrate the user experience
Shows Link between Heart rate & Driving
Experience

28. Facebook with ZESTXLabs
• Gets inside your brain
• They work with Neuromarketing firms in the US
to help them figure out.
• They have metrics that determine
- How frequently a page should post
- How to plan out an ad campaign
- How to take advantage of trends
Multiple neurological / autonomic measures
such as sweat, heart rate and eye movement as
well as brain activity measured via EEG.

29. DOPAMINE
(Advertisements which has “Dopamine” release will have good impact)
SURVIVE CONSERVE
ENERGY
PATTERNING
CONTRAST FEEL GOOD

30. Meaningful advertisements
• Relevant to the current
needs
• Emotional connect
• Existing schemes
• Past Experiences
UNDERLYING DRIVERS
• ATTENTION
• ENGAGEMENT
• MIRROR NEURONS
• MOTIVATION
GOALS OF THE
ADVERTISERS
• AWARENESS
• PURCHASE
• INFORMATION
• BRAND
CONNECT

31. What goes into your brain when
you make decisions about money?
Scientists have made stunning discoveries
about the ways the human brain evaluates
rewards, sizes up risks and calculates
probabilities.

32. In practice, assumptions often turn out
to be dead wrong.
IN THEORY IN PRACTICE
The smarter you are, the more
money you will make
In 1720, Sir Isaac Newton was
wiped out in a stock-market
crash, blazing a trail of financial
failure that geniuses have been
following ever since.
The more closely you follow
your investments, the more
money you will make
People who keep up with the
news about their stocks earn
lower returns than those who
pay almost no attention.

33. DOPAMINE & SEROTONIN (Happy Chemicals)
• High involvement products leads to high stakes
• All advertisements play with human emotions
• F:MARKETING - VCETADVTCadbury Dairy Milk
Ad.mp4

34. Mirror Neurons
• It helps us to empathize, repeats what our
friends doing.
• More Neurons developed in collectivist
culture (i.e) Indian culture

35. All reputed brands are very strong in
Procedural
( i.e. Rituals I do regularly)

36. People are buying the feelings
while purchasing the brands

37. LEARNING AND MEMORY
• Sense of belongingness
• Patriotism
• Hazardous Free
It takes us to the Unconscious
state.
Priming – Response
Procedural – Rituals I do regularly
Associative – Culture

38. Attention grabbing:

39. GETTING ATTENTION : UNCONSCIOUS
• Our brain has ability to do only one task at a
time
F:MARKETING - VCETADVTselective attention
test.mp4

40. When our emotional engagement is high
we will remember for longer time.
• F:MARKETING - VCETADVTSamsung India
Service (SVC) – We’ll take care of you,
wherever you are. #SamsungService.mp4

41. MEANINGFUL ADVERTISMENTS
• ATTENTION &
ENGAGEMENT
• MIRROR NEURONS &
MOTIVATION
UNDERLYING
DRIVERS
• AWARENESS | PURCHASE
• INFORMATION | BRAND
CONNECTGOAL

42. Sources
• Neuroeconomics – Ambrose Bierce
• “Thinking” and “Feeling” – Benedict de Spinoza
• THE TELL-TALE BRAIN UNLOCKING THE MYSTERY OF HUMAN
NATURE – V.S.RAMACHANDRAN
• “Business Strategies for the Bottom of the Pyramid” –
Prof.Anand Kumar Jaiswal, IIM-Ahmedabad.