Integrated Marketing Communication Group Assignment - 2 (Library
Assignment & Presentation)
Institute of Management, Nirma University MBA (FT) -
2014-16Integrated Marketing Communication Group Assignment - 2
(Library Assignment & Presentation)Neuromarketing
`
Submitted by: Group No-3KARAN MEHTA (141122)ANISHA
BHANSALI(141208)PRAVEEN KUMAR JHA(141237)SUMIT KUMAR(141259)BHARGAV
KORAT(141308)INTRODUCTIONIts easy for businesses to keep track of
what we buy, but harder to figure out why. Enter a nascent field
called neuromarketing, which uses the tools of neuroscience to
determine why we prefer some products over others. People are
fairly good at expressing what they want, what they like, or even
how much they will pay for an item, says Uma R. Karmarkar, an
assistant professor at Harvard Business School who sports PhDs in
both marketing and neuroscience. But they arent very good at
accessing where that value comes from, or how and when it is
influenced by factors like store displays or brands. Neuroscience
can help us understand those hidden elements of the decision
process. Neuromarketing is the tool which helps inunlocking the
mysteries of consumer choice.Neuromarketing is an emerging field
that bridges the study of consumer behaviour with neuroscience.
Controversial when it first emerged in 2002, thefield is gaining
rapid
credibilityandadoptionamongadvertisingandmarketingprofessionals.Eachyear,over400billiondollarsisinvested
inadvertisingcampaigns. Yet,conventionalmethodsfortesting and
predicting the effectiveness of those investments have generally
failed because they depend on consumers willingness and competency
to describe how they feel when they are exposed to an
advertisement. Therefore, many major corporations have begun to
take special interest in understanding how the human brain can help
them better understand consumers. Neuromarketing offers cutting
edge methods or directly probing minds without requiring demanding
cognitive or conscious partipation.History of
NeuromarketingThecombinationofneuro and marketingimpliesthe merging
of two fields of study (neuroscience and marketing).The term
neuromarketingcannot beattributed to a particular individual as it
started appearing somewhat organically around 2002. At the time, a
few U.S companies like Brighthouse and SalesBrain became the first
to offerneuromarketing research and consulting services advocating
the use of technology and knowledge coming from the field of
cognitive neuroscience. Basically, neuronmarketing is to marketing
what neuropsychology is to psychology. While neuropsychology
studies the relationship between the brain and human cognitive and
psychological functions, neuromarketing promotes the value of
looking at consumerbehaviorfromabrainperspective.The first
scholarly piece of neuromarketing research wasperformedby
ReadMontague, Professorof Neuroscience
atBaylorCollegeofMedicinein2003andpublishedin Neuron in 2004.In a
blind-taste test, consumers are asked to choose between Pepsi and
Coca-Colaand to no ones surprise, Pepsi wins. However, a decade
ago, neuroscientist Read Montague posed a question: If people truly
prefer Pepsi over Coke, why isnt Pepsi dominating the
market?Montague created a Pepsi Challenge of his own, hooking up
his test subjects to an MRI machine to track brain activity. At
first, about half of the participants said they preferred Pepsi;
however, when Montague told them which samples were Coca-Cola,
preferences shifted to three-to-one in favor of Coke. Additionally,
he observed heightened activity had in the prefrontal cortex, part
of the brain that controls higher thinking; as well as in the
hippocampus, which relates to memory.Montague concluded that the
brain was recalling images and ideas from commercials, and that the
thoughts and emotions connected to the branding were overriding
reactions to the actual quality of the product. In 2004, he
published his findingsand as a result, neuromarketing emerged from
the shadows and into the public eye.
For what kinds of customers is neuromarketing
effective?Neuromarketing is a flexible method to determine customer
preferences and brand loyalty, because it can apply to nearly
anyone who has developed an opinion about a product or company. No
matter what form it takes, marketing focuses on creating positive
and memorable impact in the minds of customers. Neuromarketing
measures those impacts, but anyone can take the basic discoveries
and adjust their product or sevice to reflect subconscious consumer
needs.Sensory devices that create or evoke memories, for example,
can be easily employedthe aroma of fresh bread, recollections of
past stories (either a published work or a shared experience),
evocative language, a song that gets stuck in your head and wont
come out -- ultimately, these are all effective (if crude) examples
of neuromarketing that can be used by nearly any business of any
size.Tapping the subconscious mind: Today marketers are adapting
new and complex scientific techniques to dig into consumers
subconscious minds to make the art of selling more creative and
data driven. Its not the product or a service that makes a customer
happy but what makes a customer happy is how that product is
perceived, the sense of joy and pride that comes by being
associated with that product/brand.Neuroscience &
MarketingBrand and product management through consumer behaviour is
more of an influencing art rather than a marketing tactics.
Neuromarketing finds its importance in revealing the taste of the
consumers as per their gender composition, emotional connect, brand
importance. Nowadays packaging, messaging, advertisements,
marketing themes such as ambush, subliminal, guerrilla are all
influenced by the brain waves action of Neuromarketing.
Neuromarketing is primarily used nowadays to better understand
consumers wants and needs and point consumers in the right
direction towards right fit by tapping the comfort zone of the
consumers and then using marketing science tactics for any product
launch.Neuromarketing and consumer satisfaction:In such an advance
social media network and constantly changing buying behaviour,
Neuromarketing signals a direct new brain to brain shared emotion.
Every firm, organization and community whosoever is dealing with
consumer or employer is trying to satisfy the needs and wants in
order to retain the consumer and maintain long term relationship
for better sales of their products. Neuronal sensory system drives
consumer thoughts and behaviour towards anything and thus appeals
to consumer wants, needs and desires.Neuro Marketing
Tools:Functional Magnetic Resonance Imaging (fMRI): It allows
observation of deep brain structures and it is suitable for neuro
marketing studies It combines magnetic field and radio waves,
producing a signal that allows viewing brain structures in detail
It allows measuring brain activity while subjects perform certain
tasks or experience marketing stimuli, searching for
patternsElectroencephalography (EEG): EEG measures electric product
of the brain activity, when brain undergoes any stimulus. It
captures variations in brainwaves, and the amplitudes of the
recorded brainwaves correspond to certain mental states, such as
wakefulness , relaxation, calmness and sleep A number of electrodes
(up to 256) are placed on the scalp of the subjects, in certain
areas, in order to measure and record the electricity for that
certain spot. For the analysis, voltage and frequency are measured
for each subject and compared to the data that is recorded without
using marketing stimuli.Neuroscience Working Principle:
Neuromarketing understands that when stimulated different parts of
the brain are activated. By understanding and observing these
responses using MRI and EEG, and analysing the timing and response
of our brains in relation to specific stimulus researchers can
determine what we really think.
Neuromarketing Relevance:Decision buying and consumer behaviour
is highly reflected by the below mentioned seven tactics of
Neuromarketing: Be visual: the study by Neuro marketers suggests
that any item should reflect visibility in front of target audience
and appeals to the desire of the consumer. Visibility matters much
more than the content description. Create contrast: Since the
plethora of products are available in the market for attracting
customers, sale and maintaining customer base, any firm should have
some USP associated with the product launch. That USP should posses
contrast, should stand out among other products and should truly
reveal the essence of launch. Firsts and Lasts push: A good
marketing strategy on any product is something which could capture
the mind of customer in its first launch and left an everlasting
impression. In such a busy and competitive lifestyle, Neuro
marketers suggest an ideology of first impression is the last
impression. Emotional connect: To influence brain activity, any
product should have an emotional connect with the consumer mind to
persuade him towards buying proposition. Brain to brain association
of product with consumers is essentially important for success of
product. Keep it simple: Any complicated and complex terminology
requires lot of thinking and interpretation. People are too busy to
give a minute of thoughts on product. They immediately carry an
image of product which has simple but lucrative demonstration in
the outlets. Concreteness: Simplicity and concreteness is the guru
mantra influencing buying decision and creating positive image in
the consumers mind. Make it personal: Product should be directly
associated with the needs of consumer. No matter how much
personifying a demonstration will be, it would carry no meaning and
importance until and unless it is related to the needs, wants and
desires of consumer.
Case Study: Shelf Analysis (Space Management)Agency: iMotions -
Enabling Services Date: April - June 2009Client: CadburyPlace:
Denmark
Objectives:The client wanted to know the optimal space
management to place the Fusion group of products and the V6 group
of products in the supermarket check-out shelf
Methodology: Attention Tool + Questionnaire Target segment: 120
people (Males 50% / Females 50%) 15-39 years old 2 Cells: (A/B) 60
people each (30 M / 30 F) Cell A was shown to be measured by EYE
TRACKING METRICS Spotlight & Highlight. Cell B was shown to be
measured by the same metrics
1. Fusion group of product on Top Shelf
2. V6 group of product on Top Shelf
Note - Area nos are given in ascending order based on the
decreasing order of time spent in looking shelf space.The Result
shows that customer was looking at other places for 38% of their
time in case when Fusion group of product are placed on top shelf
and 27% of time when V6 group of products are on Top shelf.
HighlightFusion at top (Time Spent) V6 at top (Time Spent)
Top Shelf15%12%
Middle Shelf10%11%
Discount DividerX4%
Conclusions / Learnings
The Fusion group of products gets more attention than the V6
group of products no matter where they are placed (though the
difference is very little). The Top shelf gets more attention than
the Middle shelf no matter which products are placed. In general
the respondents look first at the top shelf and then at the middle
shelf no matter the arrangement of the products. Whenever the
Discount-Price groceries divider is present, it is the first
element to catch the attention of the respondents, gets
considerable amount of attention and is looked by approximately 75%
of the respondents. The optimal space management arrangement for
product visibility is to place the V6 group of products in the Top
shelf and the Fusion group of products in the Middle shelf to help
V6 gain more attention.
Case Study on Campbell Soup Company
CompanyIntroductionNew Jersey, USA based company Campbell was a
maker and seller of food products. As of November, 2011, Campbell
was the largest producer of Soups in the world. It had about 75% of
US market share in wet soup market with annual sales accounting to
about 2 billion cans. HistoryCampbell started a tinning unit in
1869. It started manufacturing condensed soups in late 1890s. As of
1904, the unit had annual soup sales of 18 million cans. In 1922,
the unit was incorporated as the Campbell Soup Company. Campbell
introduced its chicken noodle and cream of mushroom soups in 1934,
tomato juice in 1938, and, cream of chicken soup in 1947. The
company achieved annual sales of US$100 million in the early 1940s.
For the year ended July 31, 2011, it generated net sales of
US$7,719 million and net earnings of US$802 million.
Issues Faced by the Company1. The product has reached its
maturity stage in PLC and hence it was difficult for the company to
consume more soup than before.2. The sales of condensed soup
reduced by 5% in 2002 in USA3. The exports of the company also
reduced by 6% in the next quarter4. Their advertisements had little
or no influence over consumers buying behaviour5. The consumers'
actual buying patterns were not consistent with the correlation
they had exhibited between ad remembrance and willingness to buy.
The company was unable to know the consumer behaviour because of
conventional market research methodology.
MethodologyThe company decided to go for an intensive market
research as well as use the technique of Neuro Marketing to know
the behaviour of consumer based on their responses to different
catalysts in advertisements, communiqus, pictorial presentations,
and other marketing ploys. The basic reason for using Neuro
Marketing was that consumer purchasing decisions took place in
micro seconds in the subconscious, emotional segment of the brain
and by assessing what consumers preferred, did not prefer, needed,
were scared of, or were less enthused by, as suggested by their
brain's responses to propellants, marketers could develop products
and messages that would cater better to market requirements, and
bond and influence the purchase.The physiological aspects under
study were consumer heartbeat, perspiration and pupil movement
while viewing the Campbells soup cans. Changes made by The
CompanyCampbell made many changes to create positive feelings
within the customer when they view it. The changes made were as
under1. Company removed the spoon from the image incorporating an
image of steam rising from the soup signalling the feeling of
warmth connected with consumer at an emotional level.2. Moreover
company also removed its legendary red coloured streak at the top
of the soup containers which was making it difficult for the
consumer to pick up their preferred flavourResultsIn the initial
quarter after the changes were made, an increase in sales of about
5% was noted. But in the next quarter the sales again decreased
which gave the company clear signs that there is the requirement of
new product in the market to push on sale. Campbell has been
continuing the same product line since 40 years and hence there was
an requirement for new offering in the market.