Sunday, November 21, 2010

Neuro-Marketing!

A myriad of companies invest millions of dollars on launching market campaigns in hopes of reaping profits and loyal consumers. While the field of marketing has embraced many changes in  recent years, forcing companies to change their approaches to marketing as a result of globalization, the Internet, and other factors, "Neuromarketing" seems to be a growing fad amongst companies and marketers alike. But what is neuromarketing and how did it emerge? Most importantly, what effect does marketing have on us, the consumers?


According to Pradeep, Hans Berger was the first scientist to develop sensors that collected electrical signals emerging from the human brain amd employ electroencephalography (EEG) measurements in the 1920s. Considering the intricate nature and continuing developments and research of the human brain, Berger's application of EEG was clearly well ahead of its time. The EEG measurements picking up the electrical signals of the brain can then be studied to determine an individual's liking, preference, interest, or even discontent with the product or service the individual is experiencing. Neuromarketing is very beneficial for companies and marketers who can now dwell deep into human minds and determine whether their products and services are actually satisfying consumers and what elements of a product are important to consumers.


According to Forbes, numerous companies today are already making successful and lucrative use of neuromarketing, including Google, Hyundai, Microsoft, Disney, and Chevron. One use of neuromarketing that I found particularly interesting was by Frito Lay, a subunit of Pepsico. Executives at Frito Lay abandoned shiny packaging with pictures of  potato chips after their neuromarketing revealed that beige packaging with pictures of potatoes and healthy ingredients stimulated less activity in a region of the brain associated with feelings of guilt; what an interesting way to combat the guilt of consumers watching their waistlines and opting for healthier snacking options. Frito Lay also conducted neuromarketing and traditional focus groups for a commercial for Cheetos. The participants in the focus group viewed a commerical but claimed to not like the commercial possibly because they felt admitting liking the commercial would make them appear mean and cunning to other focus group participants. Nevertheless, neuromarketing revealed otherwise and the EEG tests showed that the female participants in the focus group liked the ad which pushed Frito Lay to begin airing the commercial.




Executives at Frito Lay abandoned shiny packaging with pictures of  potato chips after their neuromarketing revealed that beige packaging with pictures of potatoes and healthy ingredients stimulated less activity in a region of the brain associated with feelings of guilt
Neuromarketing makes sense but it is also raises several questions and concerns. Notably, neuromarketing is effective and beneficial for companies but it diminishes the barricade of privacy for consumers. Being able to see what is and what is not effective to the consumer mind grants companies even greater power in terms of marketing and sales. As a consumer, I like being able to test the effectiveness of a marketing campaign of a company and deciding whether or not to purchase something. As a human being, I prefer to share only certain thoughts and interests with others. For individuals considering taking part in any neuromarketing test, please ponder whether you'd really like for companies can dig deeper into your brain to retrieve information that you weren't willing to share...

Cheers for now,
Summia

2 comments:

  1. Well said well explained Summia,
    But I have bad news for you!

    You are not comfortable with the fact that companies want to know so much about you? You don’t want them to invade your privacy?
    Then you have to,

    1. Never search anything on Google.
    2. Delete your Facebook Account, YouTube, Twitter, any social network.
    3. Stop watching TV.
    4. Smash your Smartphone.
    5. And dump your laptop under the shower just in case.

    You would be scared if you find out how much information companies know about you. They know so much about you more than anybody else you know.

    Google for example, as explained in this article “What Google Knows about You, knows so much about so many people. And it’s the company’s most valuable assets, it’s data.
    Link:

    (http://www.computerworld.com/s/article/337791/What_Google_Knows_About_You)

    They know so much about us already and the more advanced their technology becomes, and the more they would know.

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  2. Interesting and well researched post! As I have done elsewhere
    I will try and address the concerns you raised about privacy (hopefully without repeating to much of what I've already said on my blog). I'd say the concern about privacy and Neuromarketing is mostly based on a false assumption that knowing what's going on in your head = telling/forcing you to buy something. Think of it this way, the only real difference here is that marketing is becoming more precise (with the possibility of high customization to the individual level) and it's starting to take place in "personal" real time (In Soviet Russia, Ads watch you!) Ha ha sorry I couldn't resist. Anyway please see my blog for more analysis on this topic if you wish.

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