BUY-OLOGY

Written By: Martin Lindstrom

Presented By:
Birendra Bista
MBA 4th sem, GCI
 Basic concepts
 The major concepts from the book which can help in
building better marketing campaigns
 Neuro-marketing: Neuro-marketing is the new key tool
which will revolutionize marketing strategies in future and
help understand the logic behind purchase behavior.
 People are constantly surrounded by brands and messages
from marketers & advertisers
 Some information is retained and some is instantly
forgettable
 To make the brand message stay with the consumer and to
induce product cravings, research in “Neuromarketing” is
being done
 Neuromarketing is the window key to unlock the
subconscious thoughts, feelings & desires that drive
purchase decisions - Buyology.
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 Contents
1. A Rush Of Blood Of The Head
2. This Must Be The Place
3. I’ll Have What She Is Having
4. I Cant See Clearly Now
5. Do You Believe In Magic?
6. I Say A Little Prayer
7. Why Did I Choose You?
8. A Sense Of Wonder
9. And The Answer Is…
10. Lets Spend The Night Together
11. Conclusion
 Chapter 2
This Must Be The Place–
Product Placement, American Idol and Ford’s Multimillion-Dollar
Mistake
 History
In 1965 a typical consumers had a 34% recall for ads, in 1990
that figure had fallen to 8 %.
By 2007 this was down to only 2.21 ads remembered by someone
EVER. 
The relentless advertising assault have resulted in strengthening
the filter system in our brains grow thick and self protective.
In essence, sponsors are letting us know that it’s futile to hide,
duck, dodge, fast-forward, or take an extended bathroom break:
they’ll get to us somehow.

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Objective
To identify whether the product placement in the show American
Idol helps in creating a lasting impact in the consumer’s minds
and hence translate into sales of the company’s product
American Idol has three main sponsors – Cingular Wireless,
Ford Motor Company & Coca-Cola
Cingular wireless– Runs 30 seconds ads during the
commercial breaks & also features its products prominently
during the show
Coca-Cola: It has judges drink strategically placed Coke, the
judges’ chairs are shaped like coke’s bottle, the walls are coke-
red. Coca Cola is present approximately 60% of the time on
American Idol.
Ford: Doesn’t shares actual stage with the contestants & it
shells out $26 million only toward traditional thirty seconds ad
spots.
The Setup
•Four hundred subjects were chosen to go through the SST
test that mathematically measures the brain waves in real
time
•The subjects were seated in the darkened room
•Twenty product logos (branded & unbranded) were
shown, one each/second
“Branded Logos”: Logos of companies that aired their
commercials during American Idol – Coke,
Ford & Cingular
“Unbranded Logos”: Logos of companies that had no
products placed within the show i.e. no connection or
sponsorship with American Idol like Fanta, Verizon,
Target, etc.
Continuee..

The subjects were shown 2 shows, one was a 20 min special

edition of American Idol followed by a screening of another show
Rescreened the same sequence of logo thrice. It was done to test
whether viewers remembered which logos they had seen during
the show and which ones they hadn’t.
Ad Effectiveness: measured by the consumer’s memory of the
product. A remembered product has more probability of being
purchased
Results
Before-Screening: No matter how frequently the products were
featured during the show, the memory of branded logoswas the
same as that of the unbranded logos. Therefore, before the
study began, both branded and unbranded logos were at par

Post- Screening: Branded logos had a greater recall than

unbranded logos. The potency of branded logos had inhibited
the recall of unbranded logos i.e. memory of Coke, Cingular
had crowded out memories of Pepsi, Verizon
Result
Results showed that after having watched American Idol, the
brands featured were remembered afterwards and served to
inhibit memory of the other brands. For Ford, having watched
the show, subjects remembered less of the brand than before –
most likely due to it being featured during the break, so
automatically associating it with being “just” an ad.
Result
•Coke had permeated 60% of the show – Soft drink cups –
Furniture-Décor. Coke reinforced throughout the show
•There was no memory of the brands that did not played an
integral part in the story line of the show
•Coke played an integral part of the show – was remembered the
most and at the same time weakened the memory of other brands
•Ford just played ads in commercial breaks – no significant
difference than “just other ads”
•Coke saturated show had suppressed memory of Ford
commercials
•Ford had invested $ 26 million in yearly sponsorship but – lost
market share
Product Placement in Movies
•In the late 1970s and early ’80s, the
U.S.-based sunglasses manufacturer Ray-
Ban was fighting to stay alive as their
sales figures remained dismally flat. That
is, until the company struck a deal with
Paul Brickman, the director of 1983’s
Risky Business, and Tom Cruise gave the
retro-looking shades a whole lot of
renewed cachet. When the movie
became a hit, Ray-Ban sales rose by over
50 percent.
•In Tony Scott’s Top Gun, when the actor
alit from his fighter jet clad in Air Force
leathers and Aviator Ray-Bans, the
sunglasses maker saw an additional boost
of 40 percent to its bottom line
Conclusion

In order for product placements to work, the product has to make

sense within the show’s narrative. So if a product isn’t a good
match with the movie or TV show in which it appears viewers
will tune it right out.

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