Author of the article: Kateryna Ilchenko
Neuromarketing
or how to avoid
"plant and pray".
Neuromarketing is a field of marketing that studies the neurobiological processes underlying consumer behavior. The goal of neuromarketing is to understand how people's brains process information about products and services in order to use this knowledge to create more effective marketing campaigns.
In December, as part of the module "Marketing & Digital Strategy" Kateryna Ilchenko delivered a guest lecture for 6th level students.
Kateryna Ilchenko –
founder Neuro-Knowledge, a leading expert in the field of neuromarketing.
Neuromarketing is a relatively young direction of marketing that often generates revolutionary solutions.
Kateryna Ilchenko - one of the most authoritative experts in this field shared author's content for our readers.
Below you will find a short intro to "Neuromarketing" for marketers and not only.
Enjoy yourself.
What is neuromarketing and why does business need it?
Culture of consumption - this is the basis of the modern economy; manufacturers and sellers are making great efforts to make consumers want to buy. It's no secret that marketers use many tricks and psychological "traps" to draw the buyer's attention to a specific product - from the arrangement of products on the shelves to the color of the wrappers. However, the moment came when simply acquired experience in a competitive environment was not enough, and a whole discipline was formed at the junction of neuropsychology and market research - neuromarketing.
So, what is neuromarketing?
Neuromarketing is, first of all, a complex field of knowledge that studies the human reaction to advertising. Its main task is to identify patterns by which consumers react to various types of advertising stimuli. In other words, neuromarketing is the practical application of neuropsychology in the field of marketing.
And although such techniques, consciously or unconsciously, have been used by businesses for quite some time, the history of neuromarketing itself begins only in the 2000s, because the term was introduced in 2002 by BrightHouse (Atlanta, USA), which published the first article in this area and sponsored the first neuromarketing studies.
How does neuromarketing differ from classical marketing?
The main instruments of classic marketing are recognized survey and observation.
For this, focus groups are formed, based on the reactions of which a forecast is made regarding the product's success on the market, as well as the effectiveness of its advertising. A significant limitation of classical marketing is that it only analyzes moments of already-made choice.
In contrast, neuromarketing analyzes physiological indicators, which allows you to track the buyer's reaction at the subconscious level - more before this choice is made.
Of course, forms of advertising that can influence the consumer's choice have long been developed; however, neuromarketing makes it possible to make a much deeper analysis - to choose those triggers that are more likely to work on this category of consumers. Therefore, it is sometimes compared with the manipulation of people's consciousness.
Thus, neuromarketing goes beyond focus groups, providing an understanding of how a consumer makes a choice, what areas of the brain are activated, and how advertising changes this picture. In general, it allows you to get information about how to best promote a particular product.
What methods does neuromarketing use?
The main set of neuromarketing methods are non-invasive methods of measuring the brain activity of respondents.
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MRI (magnetic resonance imaging).
This method of neuromarketing research is widely used by scientists at Stanford University, Carnegie Mellon University, and the Massachusetts Institute of Technology to identify the parts of the brain that influence the purchase decision. The essence of this method is to assess blood circulation in the brain. The more active blood supply is fixed in one or another area, the more active it is when perceiving certain stimuli or performing a certain task. The disadvantage of the method is the impossibility of evaluating the process in dynamics. -
Electroencephalography (EEG) / magnetoencephalography (ME)
Mmethod of graphic registration of electrical impulses of the brain, which also allows analyzing the activity of one or another area in the process of considering a purchase. It was the use of EEG / MEG for marketing research that marked the beginning of neuromarketing. In these experiments, special attention is paid to understanding human behavior and decision-making when choosing a product. When we make a choice, various mental images or thoughts about it continuously arise and disappear in our consciousness. In addition, subconscious stimuli are also involved in this process. It is these unconscious impulses that can often lead to the purchase of a product. -
Lie detector.
With this device, it is possible not only to determine when a person is lying, but also to record his physiological indicators during the decision-making process or emotional changes as a reaction to this or that advertisement (for example, when the advertisement is liked, the person's heart rate increases, he sweats, etc. .). -
Micromovement eye tracking (eye tracking).
This method provides an understanding of how a consumer looks at an advertisement, packaging, website or mobile application, what he pays attention to, where his gaze lingers. This helps to develop the most "selling" design of the product, understand the difficulties that may arise during the visual study of the product, and its use. -
Reading emotions on the face.
First of all, microexpressions that the consumer does not even recognize are read. Despite the short duration of these emotions, even for a millisecond furrowed eyebrows can tell neuromarketers a lot about the first impression of a product.
Purpose and tasks of neuromarketing. What is the use of it for business?
The goal of neuromarketing is to find answers to the question of why consumers prefer this or that product, as well as to develop techniques for motivating consumers to buy not only on a conscious, but also on an unconscious level.
Neuromarketing researchers determine how consumers react and feel when they are offered products and/or relevant incentives. Then these observations can be correlated with the results of classical surveys and with the emotions that the participants show. In the future, this information is used to determine whether the product or advertisement stimulates brain reactions associated with positive emotions, and already on the basis of this - to form a portrait of the brand or product on the market. The result is more effective options for products, packaging design and advertisingbring more sales, ensure the satisfaction of the target audience and form its loyalty.
In addition to targeted methods with the direct participation of surveyed / tested people, neuromarketing is also used together with Big Data. This helps, for example, to conduct an analysis of modern advertising channels (social networks, search advertising, etc.), to clarify the peculiarities of people's behavior on certain web resources. The result isoptimization of the user's path on the site, directing the client to the desired product, introducing new (more effective) payment and delivery methods.
Therefore, almost all IT giants either resort to the services of companies specializing exclusively in neuromarketing research, or have their own divisions in this direction. In particular, it is known that Microsoft uses EEG data in order to better understand the interaction of users with computers, and Google cooperates with neuromarketing agencies to determine the audience's reaction to advertisements on YouTube and to find out which format is most liked by viewers; Apple and Facebook also have neuromarketers on staff.
Conducting neuromarketing research is relevantat any stage of business development - from choosing a logo and product design to creating advertising and launching active promotions.
Investments in neuromarketing pay off quite well. In the long run, they help a lotwill save money on advertising, because only the one that really leads the user to purchase will be launched.
Specialists estimate the ROI from neuromarketing studies at 15-50%, depending on how work with the received insights is carried out in the company.
Thus, knowing the characteristics of the behavior and decision-making of your potential customer is a powerful tool that, if used correctly, can contribute to the growth of both large and even small businesses.
Neuromarketing in practice
There are several cases of the use of neuromarketing, which have become classics of such studies. The well-known Hyundai, PayPal, Cheetos can serve as a striking example - all these companies conducted powerful neuromarketing studies of the reactions of potential users to their advertisements. As a result, the most effective strategies and options were selected.
A case of Cheetos
Cheetos tested the commercial using both focus groups and EEG. Their advertisement featured a woman who avenged a friendOh, I put the orange snacks in the dryer full of white clothes. At first, the participants of the focus group stated that they did not like both the initiative itself and the advertisement as a whole. But according to the results of the EEG study, positive brain activity was revealed in the same respondents, which indicates that people actually liked this video.
Why did the participants say otherwise at the initial interviews? Because they didn't want to put themselves in a negative light in front of others. That is, neuromarketing research has shown that people do not always say what they think, even when it comes to the reaction to a promotional video.
Hyundai case
Hyundai and testing prototypes of their cars is another well-known case of using neuromarketing in design. The company applied the EEG technique; 15 men and 15 women took part in the study, to whom different concepts of future design were demonstrated. Subsequently, Hyundai made some adjustments to the appearance of the cars according to the results of the study. The very fact of the conducted research was also used for advertising purposes: "We want to know what consumers think about the car before we start producing thousands of such cars," Dean Macko, manager of brand strategy at Hyundai Motor America, said at the time.
PayPal case
PayPal used neuromarketing to encouragemore customers use the Internet payment service. The researchers found that commercials focused on benefits such as speed and convenience elicited a significantly greater response in the brain than those promoting features such as security and purchase protection. Later, PayPal used this information to create new advertising, which made it one of the most popular online payment services.
Disadvantages and criticism of neuromarketing
Like any applied tool, neuromarketing has its drawbacks.
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First of all, similar studies can be affordednot every company, because they require complex equipment and considerable investments. However, the existing array of publications (including in scientific journals and on the official resources of companies that used this approach) allows extrapolation of data to other products and services.
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The second important point isthe complexity of interpreting the obtained data and setting up the experiment. Only qualified specialists in neurobiology in collaboration with marketers and psychologists can conduct an effective analysis.
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Thirdly,it is difficult to extrapolate research data to the market, because needs change, as well as the culture of society as a whole, and as a result of some unforeseen event, the obtained data will cease to be relevant.
Also, many people and organizations see potential threats in neuromarketing, in particular:
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Violation of confidentiality. In a world where companies "read the minds" of consumers, the principle of privacy of life in a democratic society is violated. Although this point does not take into account studies that are conducted openly and do not disclose the data of their respondents;
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Discrimination by physiological signs. Identifying products that are necessary for people with certain physiological conditions affects their final cost. This point is also controversial, since this principle is actively used and without any research - for example, the prices of drinks near the beach are much higher than further away from it, but because of thirst, people still buy them;
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Ethical component. Impact on the consumer's subconscious "bypassing" rational thinking and conscious choice is often considered unethical in relation to people. The counterargument is that advertising has already acted on the subconscious, and neuromarketing has only developed a scientific basis for such an effect;
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Companies act in their own interests and do not consider the interests of the consumer.For example, often when developing a brand or product, a far-fetched precedent can be artificially created, and a product is developed under it, which is promoted using neuromarketing.
Areas of use of neuromarketing
Practically everyonelarge concern has its own neuromarketing department, focused on specific products (PepsiCo, Coca-Cola, Nestle, etc.), which selects those videos and campaigns that are considered the most effective. As a result, almost every one of their advertisements is heard. If certain content "sticks" (for example, videos with RedBull, which is "cool", or a catchy song from an advertisement for children's products, which is difficult to get out of your head) - know that such videos, most likely, were released after a thorough neuromarketing check.
Neuromarketing is actively used ito the cinema – it is not for nothing that brand advertisements often appear in films precisely at the moment when the viewer is not focused on the main plot, or the brand receives a small "role" in the film (for example, Nike sneakers in the action films "Terminator" and "Terminator: Genesis"). Product placement is actively used both by companies and by film producers themselves - advertisements for one film may appear in others.
Another aspect of the use of neuromarketing in the film industry is to make the viewer come to the screening with the help of a trailer, and also to make the film as successful as possible, removing from it the triggers that cause dissatisfaction.
Thus, neuromarketing is now practically everywhere - it is already known which packaging designs are the most pleasant for the consumer, which associations / smells / emotions "sell" better. This knowledge is actively used by brands that can afford such research or use the results obtained by others.
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What's worth reading? Literature on neuromarketing
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Neuromarketing For Dummies Stephen J. Genco, Andrew P. Pohlmann, Peter Steidl
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Demystifying neuromarketing Weng MarcLim
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Neuromarketing: Exploring the Brain of the Consumer Leon Zurawicki
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Neuromarketing and consumer neuroscience: contributions to neurology Javor et al.