Neuromarketing a technique to go inside the consumers mind

Neuromarketing a technique to go inside the consumers mind Veronica BORICEAN Iasi AL. I. Cuza University, 22 Caril I Bvd, 700505 Iasi, Romania Phone: +40 232 202070, Fax: +40 232 217000, e-mail: boriceanv@yahoo.com Abstract What exactly neuromarketing is and why it is important more precisely for the economy? this is the main question to which this paper aims to answer. Any field of activity, including business always keeps its own several secrets that worth being discovered. Starting from the perception law stated by Al Ries and Jack Trout, according to which Marketing is not a battle of the products, but of the perception consumers have about products, it can be stated that the great battle in marketing is for giving a position in the potential consumer s mind, and in order to find out how consumers really think a wide range of methods and techniques have been applied, the most innovating being the neuromarketing. Keywords: neuroscience, neuroimage, consumer s behaviour. Rezumat Ce este mai exact neuromarketingul şi de ce este important pentru domeniul economic, în mod concret? este întrebarea principalã la care se încearcã a se gãsi rãspuns prin aceastã lucrare. Orice domeniu de activitate inclusiv cel business, îşi pãstreazã întotdeauna câteva secrete ce meritã sã fie descoperite. Plecând de la legea percepţiei formulatã de Al Ries şi Jack Trout, conform cãreia Marketingul nu este o bãtãlie a produselor în sine, ci a percepţiilor pe care consumatorii le au asupra produselor, putem afirma cã marea bãtãlie în marketing se dã pentru câştigarea unei poziţii în mintea potenţialului consumator, iar pentru a afla cum gândesc de fapt consumatorii s-a recurs la multiple metode şi tehnici, cea mai inovatoare dintre ele fiind neuromarketingul. Cuvinte cheie: neuroştiinţa, neuroimagistica, neuromarketing, comportamentul consumatorului. 1. Introduction As the father of neuromarketing, Smithts coined the term in 2002, being defined as the use of techniques for identifying the brain mechanisms for understanding the consumer s behaviour in order to improve marketing strategies. Practically, marketing experts identify wishes expectations and deductions of hidden options through technology transfer between medical imaging and produce a major change in the relation between the company and the clients. So, to say, neuromarketing highlights a major fact the consumers makes the decision at cerebral level emotionally and instinctually. Thus, to be successful every promoting action must address firstly to this brain levels. To determine how the consumer perceives, evaluates and reacts to the challenges represented by a commercial or a product the eye and brain answers are followed. 2. Materials and methods 2.1. Basic techniques used in neuromarketing The progress in the field of sciences studying the brain lead to new questions and appealing answers with reference to the provocative way in which thinking works. Innovating techniques to study the brain accelerated this progress. All techniques the 9

Sibiu Alma Mater University Journals. Series A. Economic Sciences Volume 2, no. 3, September / 2009 techniques are based on neuromarketing - scanning brain techniques heading to pictures representing the structure and the way neurons function. Using neuroimaging, researchers can directly study the brain activity, wile the subjects are employed in different mental jobs. This techniques rapidly developing are promising in revolutioning the study of consumer s behaviour. Thus, at basic techniques used in neuromarketing are: Electroencepfalography (EEG), which appeared in 1920, and recorded the electrical potential changes in the brain during various activities. EEG can measure the time required to process a stimulus. Magnetoencefalografie (MEG), appeared in 1960, measuring the activation and inhibition of nerve cells in the brain. It offers precise information over the time of activation and inhibition. Computed axial tomography (CAT / CT), appeared in 1970. Generate images of the human organs. Positron emission tomography (PET), appeared in 1970. Measured the flow of the blood stream and the intensity of metabolism in the brain. Functional magnetic resonance imaging (fmri), appeared in 1990. Identifies the brains activity simultaneously in more regions. Event related optical signal (ECT), appeared in 1990. It registers the direction of the look and indicates the areas where it concentrates. 2.2. Domains using neuromarketing Even from the first trials of Professor Gerry Zeltman from Harvard University, done in the 90 s, neuromarketing draw the attention of many companies and found a great number of applications. Following the model found in genetic engineering and pharmaceutical research, there is a close cooperation between large investors and university laboratories involved in this type of research. Several development fields are: operating the branding; maximizing the impact of advertising; optimizing the efficiency of TV spots. Operating the branding In marketing there has always been a question left without an adequate unanswered: in what measure is the quality of a product, even well know to the consumers, a source of competitive advantage. The classic example has been offered by the fight between Coca Cola and Pepsi Cola. Trying to increase its share of the market, Pepsi launched a campaign in the 70 s called The Pepsi Challenge. A series of tests were done in supermarkets and mini-markets, in which the buyers were asked to decide which of the two drinks is tastier. Without knowing what drinks were studied 57% of participants chose Pepsi and only 43% Coca-cola. These results were intensely exploited from commercial point of new and to prepare the selling force, but the effect over the increase on the market share was not significant. For 30 years ago, the obstinacy of consumers buying a product that they know is less testy than its direct competitor, was a mystery, was explained by a strange branding effect that could not be split into pieces in order to be repeated. In 2003 in an experiment that draw the attention over neuromarketing, Redd Montague repeated the experiment, but measuring this time by f MRI the activity of various parts of the brain. The results were never extremely interesting. when they didn't know what drink they had,75 % of subjects preferred Pepsi, the drink that would activate strongly the part in the brain corresponding to the satisfaction sensation pleasure; when the subjects know what drink they are tasting the ratio reversed; at 75 % of the tasted persons Coca Cola determined the stimulations of the part of the brain corresponding to the value judgment, rationality and emotional memory. The experiments show that the image of the brand determines emotions that can be stronger than the direct effect of the product. This is the demonstration of David Ogilvy statement that "products are created in the factory, but the brand in the consumer s mind. Maximizing the impact of commercials The neurologist Paul McLean proposed a model of the human brain (see figure 1) composed of 3 superimposed structures, each one specialized on certain functions: 10

R complex (reptilian) or the primitive brain, controls the body and decides very rapidly on the strategy to be used (act, retreat or wait), in order to assure the satisfaction of fundamental needs (physiological, sexual, security, defending the territory etc.); Limbic system or the emotional brain, associated with emotions, feelings, attention, general attitude, memory(remembering events), immunity and hormonal equilibrium, relationships with others; its decisions refers to the pleasure or un-pleasure which we associate with that situation; Neocortex or the rational brain, which analyzes, and solves problems, uses language and logics, builds rational memories(much as subjects studied for an exam) and leads to creative thinking; its decisions refer to conforming to rules and past experiences, believes and personal values, self image. Shortly, it may be stated that, in contact with a product, the rational brain evaluates, the emotional brain feels, the primitive brain decides what is to be done. We are only aware of the results of rational evaluation and partly of the effect over the emotional state. If basic reactions and emotions, are not involved, the commercial add is ignored. Thus, to be effective, the commercial must firstly address to the emotional and primitive brain, which must be determined to open the attention channel, and lead the information to the relational brain. In 2003, Daimler-Chrysler financed an experiment aimed to establish the type of automobile which men desire. The result wasn t unexpected, more than two thirds wishing a sports car, about 25% limousines, and the rest compact cars. The important aspect of this test, was that it was put into evidence that sports cars activate strongly a part of primitive brain, initially thought to be involved in making decisions regarding vital elements (good food, attractive and available sex partner). The activation of this part, oftenly leads to unthought-of gestures, the man instinctively acting to get that toffee. Also, it activates neuronal circuits of rewarding, producing a deep emotional state. This way, the rational brain is conditioned to find justifications and solutions to get that product. Nothing new, car dealers might say, knowingly very well the effect of a beautiful woman next to the car they re selling. But this discovery allowed redesigning the limousines and compact cars, in such a way that they would provide a very motivated answer. It also leads to redesigning the ads and dealers presentations, followed by an increase in sells of up to 40%! Optimizing the efficiency of TV adds The traditional methods of evaluating TV adds (remembering the add, recognizing tests and measuring the attitude over a product or over a brand) are exclusively based on subjects polls so they re limited, to the aware part of the brain. The aim of investing in TV adds is to determine people to buy products and services that are promoted, and not to understand the advantages or liking the story in the add. But, it is well known that between knowing and doing something there is a considerable border, and we need to be motivated to cross it. To quote the neurologist Donald Caine: the essential difference between emotion and ration is that motions make, use, act while ration just evaluates. When we speak about emotion, the reference is made almost exclusively to the emotional and primitive brain. Thus, studies made by Ioannidis through MEG show that the message of some adds with strong emotional character activate the imagination, and people tend to check how the product can satisfy them. The result is that after this imagination test, the information is stored as if the experience would have happened in reality and it activates decision elements from the primitive brain. Those observations are confirmed by Ambler s studies, which shown clear differences in brain answer towards emotional and rational add. The last mentioned strongly stimulate the regions of the brain involved in social networking and decision making exactly the type of answer that a company needs when it invests money in TV adds. Big Hollywood studios used neuromarketing to optimize trailers for movies made between 2005 and 2006. In this way they got a lot of feedback about: general first impression and the degree of willingness to see the movie; the relative impact, the interest and the attractively of specific elements included in that trailer; 11

Sibiu Alma Mater University Journals Series A. Economic Sciences Volume 2, no. 3, September / 2009 Figure 1. Human brain model the importance if several sensorial elements (images, sounds, transitions); the degree of going into the long term memory; clear recommendations for the possible optimizations. 3. Results and discussion 3.1. Successful examples of using neuromarketing The most recent research techniques are instruments that are extremely useful in today s competition jungle of this century. This is why, players from various fields invest for a long time now in neuromarketing: Procter & Gamble representatives said that, due to neuromarketing, the launch of the product Febreze was the most successful in the history of the company. For Motorola, the neuromarketing had important implications in the positioning of certain products. The representatives of the company said that in this way you can get the answer to questions you ve never thought asking. Buick used this research to improve the experience of there dealers with the customers. This way they managed to improve the sales from 9% to 40% for every dealer. Using this technique, Delta Airlines managed to implement on company level the idea that the accumulated experience over the years is extremely valuable. Neuromarketing appeared from the need of sustaining a decision through every possible means when the pressure is much higher than the capacity of a person making the decision to face the defeat. Coca-Cola, BMW, Procter & Gamble, Motorola, some of the companies that have experienced neuromarketing are leaders which cannot afford the failure and have resources to control it. 3.2. Neuromarketing in Romania Unfortunately, in Romania, marketing people found about those techniques from specialized journals. It s an extremely advanced study, and I don t think that the local market is ready for it. More than that, it also involves the value of investment when, in other countries, just the production of the add costs one or two million euros, of course they re using every possible techniques to understand its impact said Alexandra Rusu, senior partner at Marketing Consulting. Due to the lack of competition, in comparison with other countries, the resources invested in the fight are at the same level. Neuromarketing is a hunting plane, and we have just discovered the gun powder. We are more like in the embroil-marketing faze, is the opinion of Iulian Padurariu, managing partner at Trout & Partners. On the other hand, he says that in Romania a simple eco-scan needs appointment of more than one month before, so we need more time regarding the necessary hardware. 12

4. Conclusions Is neuromarketing the techniques of the future? It s hard to answer the question. Of course those methods as independent as possible from the people s answers are looked for in order to lead to understand the mechanism of succeeding or failing, of advertising campaigns. According to specialists, we can say that neuromarketing is not an alternative for the future of marketing, but more like an evolution. Neuromarketing limits come from the fact that although it offers a great deal of information in comparison to the traditional marketing, it can t offer any type of information related to the consumer s behaviour. The second limit is the price and technology, which in this faze can only be applied in the lab, and the price for renting the equipment is significant. So neuromarketing remains just a compliment of traditional techniques. Neuromarketing really can improve the way companies create products, and how they promote them, in such a way they would be more interesting, attractive and valuable for the consumers. Or, like Joey Rieman said in The New Scientist: The neuromarketing s objective is to change the behaviour of companies and not of consumer. References Haineault, D.L., Roy, J.-Y. 2002. Publicitate si psihanaliza, Trei Masthead. Kolter, Ph., Amstrong, G. 2003. Principiile marketingului, Teora Masthead, Bucuresti. Kolter, Ph. 2004. Marketing de la A la Z: 80 de concepte pe care trebuie sa le cunoasca orice manager, Codecs Masthead. Kosslyn, S.M., Rosenberg, R.S. 2001. Pshiology: The Brain, the Person, the World, Boston, Massachusetts, Alyn and Bacon. Purcarea, Th., Raţiu, M. 2007. Comportamentul consumatorului. O abordare de marketing, Editura Universitara Carol Davila Masthead, Bucureşti. Ries, Al., Trout, J. 2004. Cele 22 de legi imuabile ale marketingului: Daca le incalci, o faci pe riscul tau!, BrandBuilders Masthead, Bucureşti. Ries, Al., Trout, J. 2004. Pozitionarea: Lupta pentru un loc in mintea ta!, BrandBuilders Masthead, Bucureşti. Travisani, D., Doroga, C. 2007. Psihologia marketingului si a comunicarii: strategii de marketing perceptiv, bugetul mental, concurenta psihologica pe piata achizitiilor, Irecson Masthead, Bucureşti. Zaltman, G., trad. Popa, C. 2007. Cum gandesc consumatorii. Aspecte esentiale pentru studiile de piata, Polirom Masthead, Iaşi. 13