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Neha Sharma MBA(IB) Semester 2 L0625DOJA0211

Proposed Research Title How does Neuroscience the new age marketing tool direct strategies across national boundaries ? Research Brief
The concept of neuromarketing emerged in 1990 at Harvard University. This model included the sub conscious mind of human brain which drives the activities which are not in control by conscious mind. The main content of Neuromarketing is meme the small unit in brain which stores information. This unit drives human decision and takes only 2.6 seconds. For marketers it is the most important target area as it stores and memorize. The neuro marketers examine people and their minds (brain scan, subconscious motives) and analyse them. The Harvard University professor Jerry Zaltmen (Gerald Zaltman) developed neuromarketing technology under his patented name known as Zaltman Metaphor Elicitation Technique (ZMET).This technique was used to analyse unconscious mind with specially selected images that cause a positive response and activate hidden images, metaphors stimulating the purchase. ZMET gained positive response from retail sector. Companies like Coca Cola, General Motors, Nestle, and P&G etc.There was a case of PEPSI vs. Coca cola conducted on 67 brains trying to understand what people perceive and how they react if they are not aware of brand. And results showed that they could relate to Coca Cola as their brand of identity as they are emotionally attached to it. We will also look into different ways of consumer behaviour research and consumer psychology which will allow marketers to strike a right balance between consumers and markets. fMRI (functional Magnetic Resonance Imaging) The application of brain scan technology to marketing as neuro marketing is the extension of neuro science. This technology helps marketers to understand which part of the brain performs what kind of function and how it influences people around. Mapping peoples thinking process with the help of technology is called neuromarketing in layman language. fMRI is a type of specialized MRI scan used to measure the Hemodynamic response (change in blood flow) related to neural activity in the human brain or spinal cord. Since 1990 fMRI is one of the widely used techniques for brain mapping as it is relatively low invasiveness, absence of radiation exposure and wide availability. GSR(Galvanic Skin Response) Skin conductance, also known as Galvanic Skin Response (GSR), Electro Dermal Response (EDR), Psycho Galvanic Reflex (PGR), Skin Conductance Response (SCR) or Skin Conductance Level (SCL) is a method of measuring the electrical conductance of the skin, which varies with its moisture level. The sweat gland is controlled and monitored by nervous system which results into physiological and psychological arousals. There is an in depth research on this and it deals with spontaneous action and reaction to stimuli.

SST(Steady State Topography) In 1981, SST (Steady State Topography) came into existence which uses Brain Wave to understand behavioural patterns of consumers. Prof. Richard Silberstein was using SST in clinical application purely and was investigating better ways to use this in marketing. Use of light weight cap with goggles to monitor brain activity. Record 13 times per second from 64 electrodes in skull cap. MEG(Magneto Encephalography) In 1968 by David Cohen used copper induction coil as detector. This experiment used to happen in magnetic shielded room for less background noise. Technique to study brain activity by recording magnetic fields produced by electrical currents occurring naturally in brain using array of SQUIDS(superconducting quantum interference devices). Used for perceptual and cognitive brain processes. MEG and fMRI are two new technologies used widely to analyse human brain by marketers across world. Both of them produce brain shots and show what areas light up.MEG is faster in comparison to fMRI in terms of speed MEG is faster (think shutter speed) and temporal resolution is 1/1000second.fMRI temporal resolution is 1-3 seconds however MEG is more expensive than fMRI. There are different techniques used by marketers to understand human behaviour in regards to particular product. There are many driving factors to it like: y y y y y y
y

Cultural and Social Factors Research Methodology Facial Coding Advertisement Branding Pricing Retailing

There are three key elements which neuro marketers determine whether or not a consumer is inclined to make a buying decision: y y y The degree of Attention Emotional Engagement How well is the brand encoded in memory.

These techniques are quite effective in terms of gauging the market and consumer behavioural patterns driven by brain. Marketers from across the world apply this technique to understand consumer behaviour. Some of the top companies using these techniques are Ad agencies like Arnold Worldwide uses fMRI to gauge the emotional power of various images almost 25-34 male whiskey drinkers. The images included teenagers drinking cocktails on spring break, mid 20s people drinking near camp fire and old people at bar which helped Jack Daniels add campaign in 2007.

Another experiment conducted on NBCs Today show which showed a woman walking down aisle picking product and keeping it back and pick up another product of same kind which was unusual for marketers studying her behaviour. Supermarket executives closely analysed the large screens displaying her brain activity as she engaged in her choices. Marketers were quite interested in her activity as she was a good decision maker and they quite appreciated that. She was picking the product reading it properly that was normal the major concern was she keeping the product back and buying the same product. That was unusual which clicked the minds of neuro marketers and this entire process took only 4 seconds. However that is analysed that Cleanliness was top at the ladder of priorities. Now what should be the marketing strategy based on brain scan for Kelly who examined the product and bought the other product of same kind. Top organisations like Hyundai use EEG as to understand what drivers think about their new product. They ask them to wear EEG caps while looking and examining the product. NeuroFocus a company from Berkeley works for companies like Google, Walt Disney. EmSense works for Microsoft. Executives at Pepsi Co. use neuromarketing to test commercials, products and packaging in different markets of the world. Yahoo commercial of 60 second played across world where people are dancing and happy before going on air they saw this commercial to consumers wearing EEG caps which brings more consumers to search engine this campaign cost yahoo $100 million.

Research Aims and Objectives


In my research I intend to look at the strategies companies formulate to increase their customers using Neuro techniques, Consumer Behaviour and Consumer Psychology about a particular brand across nation boundaries and what challenges they face in different markets. To review model and theoretical framework and how it has evolved over the period of Neuro Marketing. To identify the challenges marketer face using this technology in mass market. To examine the market trend and use of technology while applying these techniques. To understand the marketers need in contrast with customer needs with different case studies. To recommend solutions based on my research that will help marketers to formulate there key strategy in different markets on different levels to reach its target market.

Research Question
In order to guide my inquiry and shed more light on my research into Neuromarketing and cross national strategies formulation I intent to answer following research questions: What triggers human brains in different parts of the world for a single product? How marketers study this and formulate particular strategy as per the needs of consumers? What consumers are looking for in this global era instead of what they want to sell without knowing the niche market? How companies select the tools of neuro marketing to formulate strategy to make a product better known as BRAND.

Literature Review

The main purpose of marketing is to understand consumers and making product worthy of selling itself. Peter Druker is known as father of neuromarketing. The main motive of Neuromarketing and applied sciences in marketing is to understand and decode human mind and in order to find out what they desire for what are their wishes and this is made possible with the help of medical imagery technology. In result companies feel more connected to their customers and vice versa. The term Neuromarketing was created in 2002 when Ale Smidts won Noble Prize for his work.He initiated the use of cerebral techniques to understand consumers better and improve marketing strategies. Neuromarketing is a part of neurosciences study which allows marketers to understand customers through neural studies which involve : y NeuroAnatomy Characterize the anatomical structure of nervous system. y Neurology Deals with pathology of nervous system. y Neuropsychology Focuses on nervous clinical consequences of nervous system pathology. y Cognitive Neurosciences Study of relation between nervous and brain systems. The cognitive reorganizes different systems on the basis of perception of the environment to motion orders. y Neuroeconomy This involves functioning of neural system in terms of decision making. In 1990 two American doctors named American Paul Lauterbur and British Peter Mansfield got huge success in neuro sciences field as they introduced Magnetic Resonance. In 1991 United States neuromarketing researchers used this technique for the first time in laboratories as requested by important clients like Coca Cola, Levi Strauss, L-Mart, Ford, etc.) this was kept confidential. In 2004 the very first symposium took place in Houston which was organized by Baylor Medical School which was dedicated to marketing and neural imagery. There are many entrepreneurs who have moved to this area of interest Joe Rezman is one of them who close his publicity agency to open Bright House company in 1995 and Brighthouse Neurostartegist Group in 2001.They were the pioneers in this kind of commercial business. There are consultancies which are researching in this domain one of them is Shop Consult which collaborates with Ludwig-Boltzman institute. y y y y y In neuromarketing there are five main research areas: Increase the BRAND preference makes it visible to customers. Maximise the impact Work on TV commercials Creating difference and making a product into a BRAND.

In Romania people have something else to say these techniques are found in literature. It is an extremely advance study and the local market is not prepared for it yet. And certainly

investment is relatively on higher side as marketing strategies like advertisement will alone cost millions of Euros explains Alexandra Rusu senior partner in consultancy. Neuromarketing is an American fighter, and we have just discovered gun powder. We are rather in the embryo marketing phase says Iulian Padurariu, managing partner at Trout&Partners. Successful Examples of Neuro Marketing Procter and Gamble, Motorola, Buick, Delta Airlines, THQ(video games producer), Ford, Pepsi which allowed these companies to get an insight of human brain and the things which they were not even considering during their strategy of marketing the product. The increase in the number of customers, sales, Brand value, brand positioning etc.

Research Methods
y y y y y y y y Use of appropriate sources of information. Research Works (Books, Video, Papers) Interviews Questionnaires Marketing Professionals Consumer Opinion Interviews with Neuromarketer Use of secondary Data

Conclusion
Neuromarketing is born out of need to sustain in this globalization and churning economy where companies are in tough fight with each other and competition is high. Companies with big brand names are using neuromarketing as the tool to gauge their market value and improving on it cannot afford to fail with ways and means to control it financially as well. Marketers use this tool as to make appropriate strategy in sync with different consumer behaviour patterns and psychological patterns in different parts of the world. It is just not about neuromarketing marketers consider neuro studies like consumer behaviour, Consumer psychology etc.

Timescale:
y y y y y y y Proposal presentation Written project proposal (draft) Written project proposal (final) Information and data collection Interviews with various Marketers Analysis of the information collected Final writing of the dissertation 20 December 2011 March 2012 April 2012 February 2012 February 2012 March 2012 April 2012

References:
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David Lewis & Darren Brigder (July/August 2005). "Market Researchers make increasing use of Brain Imaging". Advances in Clinical Neuroscience and Rehabilitation Samuel M. McClure, Jian Li, Damon Tomlin, Kim S. Cypert, Latan M. Montague, and P. Read Montague (2004). Mary Carmichael (November 2004). "Neuromarketing: Is It Coming to a Lab Near You?" Media Maze: Neuromarketing, Part I www.scribd.com Brainfluence: 100 Ways to Persuade and Convince Consumers with Neuromarketing Byology by Martin Lindstrom Neuromarketing: Is There a 'Buy Button' in the Brain? Selling to the Old Brain for Instant Success Online Papers Research works Neuro Marketing Videos like http://www.youtube.com/watch?v=oe_XFTr4fbE Babylon, Fabio, Marco, Vittorio (2007), - Neuroeconomics, neuromarketing is process Decision, Springer Bear, The Mark F., Connors, Barry W.;Paradiso, Michael A. (2007) - Neuroscience: Exploring the Brain, Third Edition, Lippicott Williams & Wilkins, Philadelphia Clark, Andy (1997) - Being There: Putting Brain, and World Together Again Bady, MIT Press, Cambridge, Massachusetts Gazzaniga, Michael S., Ivry, Richard B.; Mangun, George R. (2008) Cognitive Neuroscience: The Biology of the Mind, (Third Edition), Hardcover, New York Glimcher, Paul, Camerer, Colin, Fehr, Ernst; Poldrack, Russell (2008) Neuroeconomics: Decision Making and the Brain, edited by Elsevier Academic Press in association with The Society for Neuroeconomics

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