Neuromarketing

Topic 1. Neuromarketing conception and

strategic perspectives

Topic 1
Neuromarketing conception and its strategic Theme scan
perspectives
Lina Pilelienė

•Core terms of marketing

• Evolution of marketing thought

• Neuromarketing conception

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Marketing 4P’s, Marketing Mix

Marketing is the activity, set of
institutions, and processes for creating,
communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society
at large.

(Approved by AMA, July 2013)

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Marketing Mix Core questions till now:

– the mix of controllable marketing • What can be organization’s marketing
variables that the firm uses to pursue the goal?
desired level of sales in the target market.
• What are most common customer
– the set of inter-related decisions and needs?
actions used to achieve organization’s
marketing goals through the satisfaction of
customer needs.

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 Neuromarketing
Topic 1. Neuromarketing conception and
strategic perspectives

Product Why do people buy products?

A bundle of attributes (features, functions,
benefits, and uses) capable of exchange or use; Traditional explanations:
usually a mix of tangible and intangible forms. • Function
Thus a product may be an idea, a physical entity • Necessity
(a good), or a service, or any combination of • Convenience
the three. • Replacement
It exists for the purpose of exchange in the • Lower price/ greater value
satisfaction of individual and organizational
• Prestige/ aspiration
objectives.

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Peñón de Guatapé

Why do people buy products? Place

Place in the marketing mix
Non-Traditional explanations: refers to the channel, or
the route, through
• Scarcity which goods move from
• Emotional vacuum the source to the final
user.
• Ego stroking
• Niche identity
Place could be the
• Peer pressure intermediaries,
• Reciprocity/ guilt distributors, wholesalers
and retailers.
https://www.youtube.com/watch?v=qOw44VF
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Price Promotion
Promotions refer to the entire set of
activities, which communicate the
• Price is the sum of all the values that product, brand or service to the
consumers exchange for the benefits of user. The idea is to make people
aware, attract and induce to buy
having or using the product or service. the product, in preference over
others.
• Price refers to decisions and actions
related to the establishment of final
product price, its changes, discounts,
conditions of payment.
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 Neuromarketing
Topic 1. Neuromarketing conception and
strategic perspectives

Why do people buy products? The Dark Side of Marketing

Internal explanations: • Addictive Consumption:
• Empathy (Sometimes people buy from other people – Consumer addiction:
because they listened and cared about them even if they • A physiological and/or psychological
had the lesser value alternative)
dependency on products or services
• Addiction • Compulsive Consumption:
• Fear – Repetitive shopping as an antidote to
• Indulgence (So long as you can afford it, sometimes tension, anxiety, depression, or boredom
there’s no better justification for that hour-long massage or
that $75 bottle of 18-year single malt scotch other than • https://www.youtube.com/watch?v=iIKywjMpdl4
“you’re worth it”).

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Non-consumer
Non-consumers are those who can bring us new
opportunities
https://youtu.be/shLKAN2a6fw Audi

https://www.youtube.com/watch?v=Df9YCHg7TEM&list=PLPYZs
kXV2FtMrEqf1KvVeKSLdrbYzZXTP&index=3 Nivea 1 - 15 1 - 16

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Summing up… Theme scan

• Marketing is a field devoted to influencing people to
like things, and ultimately to buy things, including • Core terms of marketing
things they may not need.
• Knowing that people have brain, marketing is devoted
to influencing brain.
•Evolution of marketing thought

• Neuromarketing conception

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 Neuromarketing
Topic 1. Neuromarketing conception and
strategic perspectives

Evolution of marketing thought:

Core Marketing Philosophies
core philosophies
Production Concept
• Production concept “Good product sells itself.
Main idea – mass economy”.
Marketing
• Product concept “Consumers prefer familiar
Product Concept Philosophy – the
core idea
quality improvement”.
products. Main idea –

Selling Concept determining • Selling concept “Creative advertising and

active selling will convince consumers.”
organization’s goals
Marketing Concept and measures used • Marketing concept “Consumer is the king.
Understand the need and satisfy it.”
to reach them.
Societal Marketing Concept • Societal Marketing Concept “Satisfy
consumers’ needs to obtain society’s well-being.”
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Production (manufacturing)
Product concept
concept
• Aim – to produce many • Aim – to produce
and cheap products – good products.
mass production. • Main attention - to
• Main attention – create many
production and versions of existing
distribution. products.

PRODUCE!!! VARIETY !!!

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Marketing (consumer)
Selling (sales) concept
concept
Aim – indentify and satisfy target customer needs
• Aim – encouraging better than competitors.
consumers to buy many Main attention – information gathering, customer
and fast – stimulate the needs, top-quality products, long-term relations
– customer loyalty.
demand.
Love your customer. Not your product.
(Peter Drucker)

OFFER !!! UNDERSTAND !!!

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 Neuromarketing
Topic 1. Neuromarketing conception and
strategic perspectives

Societal marketing concept Theme scan

• Aim – deliver satisfaction more

• Core terms of marketing
effectively and efficient than
competitors in a way that
maintains or improves the • Evolution of marketing thought
consumer’s and society’s
wellbeing.

•Neuromarketing conception
REPUTATION!!!
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Background for Neuromarketing NeuroMarketing

Traditional marketing research
methods: • is any marketing or
market research
• Questionnaire • Secondary source activity that uses the
• Interview analysis: methods and
techniques of brain
• Focus groups –Content sciences or is informed
–Context by the findings or
• Observation insights of brain
• Experiment science.
Usually brands run both primary and secondary, and also
quantitative and qualitative research. Some techniques work
better than others in certain circumstances.
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Brain doesn’t lie. 1 - 28

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NeuroMarketing
Foundations of neuromarketing
«the application of neuroscientific methods to
Neuromarketing evoked from at least three
analyze and understand human behaviour in
relation to markets and marketing exchanges» basic science fields:
Neurosciences: •Neuroscience
• Medicine •Behavioral economics
• Psichology •Social psychology
• Psychiatry
• Social sciences
• Marketing?

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Lee et al.What is ‘neuromarketing’? A discussion and agenda for future research. Int J Psychophysiology 2007. 1 - 30

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 Neuromarketing
Topic 1. Neuromarketing conception and
strategic perspectives

Neuroscience Behavioral economics

• The study of human nervous system, • The study of how people make economic
including the brain, its anatomy,
decisions in the real world.
functions, and the peripheral nervous
system it controls. • Behavioral economics is most relevant to
• Neuroscience is most relevant to understanding situational influences on
understanding the brain states and consumer choice and behavior.
physiological reactions that
accompany exposure to brands,
products, and marketing materials.

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Social psychology The purpose of neuromarketing

• The study of how people
think and act in the (real or Neuromarketing is solving the same problems
imagined) presence of other as all types of marketing research:
people. Social psychology is – How company should best spend its
also focusing on the impact of advertising and marketing budget to
non-conscious processes on
human actions.
communicate its value to consumers, while
generating revenues and profits for its
stakeholders.
• It is relevant to understanding
how conscious and non- Neuromarketing is a new way to measure
conscious brain processes whether and how marketing is working.
work together in consumer
choice and behavior.
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Neuromarketing tells us:

• What’s going on in people’s brains while
they’re experiencing a marketing stimulus;

• How brain react to marketing stimuli

presented in different situational contexts;

• How brain translate those reactions into

consumer decisions and behaviors.

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