A 60 minute presentation introducing the burgeoning marketing facet called neuromarketing

1. Neuromarketing 101
The Importance of Marketing to the Brain

2. The Marketing Landscape
✤ millions of jobs depend on communicating and persuading the brain
✤ trillions of dollars spent
✤ billions of dollars gets wasted -- corrosive or ineffective
✤ marketing jobs are competitive
✤ many marketers adopting new approaches to better understand the
way we interact, communicate, and attribute value

3. Why the Brain? “It’s a no-
brainer”
✤ brain makes behavior
✤ brain creates your world and and the world of consumers
✤ brain filters out the unnecessary, navigating you to perform
important actions
✤ brain tells your body what to pay attention to/what to remember

4. Brain Statistics
✤ a brain processes sensory input subconsciously
✤ brain activity occurs below consciousness threshold
✤ 5 senses capable of absorbing 11 million bits of info per second
✤ conscious brains can only process 40 bits per second
✤ 99.999 percent subconscious to conscious brain processing
✤ 95% of purchases are determined subconsciously (we are unable to
access are subconscious)

5. Brain Functionality
Part I
Part I
✤ Think -> Do -> Feel: OLD MODEL (wrong)

6. Brain Functionality
Part II
Part II
✤ Feel -> Think -> DO : NEW MODEL (right)

7. Marketing Research Flaws
✤ measure thinking, not feeling
✤ 80 percent of new products in marketplace fail
✤ Traditional research solely measures the cortex when it is our
subconscious (limbic system) and reptilian brains that drive buying
behavior
✤ Cortexes alter original data that the brain recorded (aka the truth)
✤ people cannot articulate why they do what they do
✤ people lie
✤ dominant focus group participants

8. Reasons to Change
✤ Capitalism driven by hands of the consumer -- misunderstanding of
consumer means failure in capitalism
✤ Languages, norms, conventions, etc. obscure results of traditional
methods
✤ BRAIN IS UNIVERSAL
✤ For the good of science...it’s a new horizon in marketing!
Learn how to:
✤ make consumers notice you
✤ make consumers like you

9. Benefits of Neuromarketing
Apprehension
✤ make products and messages more effective -- marketing is everything
✤ understand the design cues and aesthetics that appeal to our inner
truths and sensibilities...
which formed 100,000 years ago

10. What is Neuromarketing?
Offspring of Psychology + Neuroscience + Economics
Economics
Neuroscience -- imaging technology, measuring brain’s areas of
activation
✤ EEG
✤ fMRI

11. Neuro-History
✤ 1920’s Hans Berger develops the first brainwave reading machine
called the EEG
✤ EEG = Electroencephalography
✤ Berger first to design sensors to read the electrical signals that
naturally emanate from the brain
✤ Hans’ machine had 8 sensors, new standard is 64 sensors
✤ 80 years later, technology incubates the Neuroscience field

12. The Neuromarketing BOOM
Part I
Part I
1. Technological Revolution
✤New innovations in computer technology provide us with the tools to
understand the complexity
From this, we learned:
✤ brain has 60,000 miles of wiring
✤ brain is a complex, interwoven series of networks
✤ brain (not all senses) is capable of approx. 200 million billion
calculations per second

13. The Neuromarketing BOOM
Part II
Part II
2. Understanding the Brain is a Series of Several Networks
✤ neurons migrate to different areas (networks) of the brain
✤ each area is responsible for a different function and different
emotion
(to be discussed in greater detail later in the lecture)

14. Part III
3. Marketing Research Shortcomings
✤ created a need in the market research world
✤ new method necessary for creating more accurate, reliable, and
actionable knowledge --> MAKE BETTER BUSINESS
DECISIONS

15. The Neuromarketing BOOM
The Formula
The Formula
EXPONENTIAL GROWTH IN KNOWLEDGE OF BRAIN
+
COMPUTER ADVANCEMENTS
+
CHALLENGES OF EXISTING RESEARCH TACTICS
= NEUROMARKETING BOOM

16. Marketer’s Ultimate Goal: Tap
into Subconscious
✤ subconscious -- marketer’s sweet spot
✤ subconscious -- where initial product interest, purchase intent, and
brand loyalty are formed

17. A Neuromarketer’s Toolbox
EEG
(Electroencephalography)
fMRI
(functional Magnetic Resonance Imaging)
Biometrics/Facial Coding

18. EEG Electroencephalography

19. EEG Electroencephalography
✤ passive technology, uses sensors (highly sensitive microphones)
✤ sensors capture short bursts of noise from electrical signals that
brainwave activity produces
✤ noninvasive/comfortable
✤ sensors usually embedded into a cap
✤ neurological activity -- up to 2,000 low-voltage signals every second,
@ each sensor location
✤ 16 minimum, avg. 64 sensors on all parts of brain
✤ must examine all areas of brain to identify which systems are

20. EEG Electroencephalography ct....
✤ White noise produced from muscle movements (eye blinks = 100x
electric voltage that brainwaves produce
BRAIN METRICS (part & parcel with eye-tracking***) :
1) Attention
2) Emotional Engagement
3) Memory Retention

21. EEG Criticism
✤ only measures brain activity at the neocortex level, though
neocortex is touted as a reflection of limbic system activity

22. fMRI functional Magnetic Resonance Imaging
✤ Primarily used for medical research
Procedure:
step 1: lie down in narrow long tube surrounded by magnets
step 2: magnets produce electrical fields
step 3: electrical fields inputted into computer
step 5: computer renders image, displaying oxygen levels in the brain’s
blood flow

23. fMRI functional Magnetic Resonance Imaging
✤ every brain section needs oxygen via blood to function
✤ measures increased blood flow in limbic system

24. fMRI Criticisms
✤ 5 second delay for blood to flow to specific part of the brain
✤ difficult to determine precisely what triggered the increased blood
flow

25. Biometrics
✤ physiological responses from external stimuli -- some biometric
measurements directly linked to limbic system activity
✤ examples: eye-tracking, heart-rate, sweat glands, facial coding

26. Biometrics Criticisms
✤ possible lag-time between physiological response to stimuli and
psychological response
✤ many altering variables -- fatigue, medical conditions, etc.
✤ peripheral confirmation

27. Evolution of the Brain
The Primal Brain

28. Anatomy
- 3 Levels of Brain -
- 3 Levels of Brain -
1.Neocortex (conscious) --- 7,000,000 years old
2. Limbic (subconscious) --- 100,000,000 years old
3. Reptilian (subconscious) --- 450,000,000 years old

29. The OLD Brain
Part I
Part I
✤ limbic and reptilian systems have been in us for approx. 100,000,000
years+ ... gained prominence in reptiles & dinosaurs...ruled the earth
for 135M years
✤ reptilian relies on instinct for survival
✤ limbic uses emotion, memory, & attention to filter encounters
✤ 6 emotions: arousal, confident, inspired, unimpressed, annoyed,
disappointed

30. The OLD Brain
Part II
Part II
✤ remember: we’re animals (primates) too... only we can think linearly,
develop complicated languages, formulate/ understand metaphors,
etc.
✤ confusing the OLD brain = brain gives up = negative association with
the brand/company
✤ wants easy, simple, “zen-like” marketing ploys
✤ harbors pleasure/reward circuits, which get cemented after repetition
✤ SELL TO OLD BRAIN by integrating simple, clean, emotionally
engaging marketing tactics

32. The NEW Brain
✤ neocortex
✤ first emerged as a instrument to store food, plan, plant, hunting, and
other survival duties
✤ absorbs and emits culture
✤ SURVIVE to THRIVE
✤ duty = to keep the old brain happy (goal-driven behavior)
✤ SELL TO NEW BRAIN by “giving consumer clear, accurate directions
for finding and obtaining that goal”

33. With Neuromarketing:
✤ we know now what the brain wants/rejects
✤ what the brain is frustrated by
✤ what the brain ignores
✤ what the brain feels is novel (brain can’t ignore novelty)

34. Takeaways
✤ brain has precious resources; limited at what it can process & short
span of attention
✤ simple images/copy, while still captivating brain
✤ use direct verbs since their simpler

35. BRAIN 101
“every behavior, every intention, every dream begins in the brain”

36. Brain Cells
Part I
Part I
✤ brain = network of billions of individual cells called neurons
✤ neurons = electrically charged. basic working units of brain and
nervous system
✤ every brain function requires a certain # of neurons in specific part of
the brain
✤ neurons: 1. collect to form various brain structures 2. acquire ways of
transmitting messages to other parts of body to perform functions 3.
learn how to control and interact with environment (motor to memory)
✤ cell body + dendrite (receiver) + axon (messenger) = neuron

37. Brain Cells
Part II
Part II
✤ neurons connect to other neurons ... tens of thousands of connections on just
one cell
✤ neurons compete with each other for chemicals, connections
(synapses) ... some win, some lose, some die (why children have more
neurons than adults)

38. Charging and Transmission of a
Neuron
✤
neurons receive electrical impulse (via dendrite) -> processes signal,
then prepares to send it to another neuron (generates action potential
[100 mi./hour]) -> action potential fires, channeled in stretching
axon -> charge produces diminutive electrical signal -> axon
connects to dendrite (via synapse) -> neurotransmitter released

39. RECAP
✤ neuron: brain cell, basic working units of brain (nucleus + cell body+
dendrite + axon)
✤ dendrite: branch of neuron that receives electrical impulse
✤ axon: branch of neuron that electrical signal is transmitted through
✤ action potential: electrical charge in neuron, pre-discharge
✤ synapse: port between connecting neurons
✤ neurotransmitters: chemicals (known as chemical messengers) brain
releases when neurons bond to each other...chemicals bind receptors
to synapse

40. Brain Topography
Part I
Part I
4 Parts of Neocortex
(Focus Groups, EEG -> any cognitive metric)
✤ 1. Parietal Lobe - space
✤ 2. Frontal Lobe - movement & speech & problem solving
✤ 3. Occipital Lobe - vision
✤ 4. Temporal Lobe - hearing
Main parts of Limbic System

41. Brain Topography
Part II
Part II
Main parts of Limbic System
(emotions, memory, chemical senses)
✤ piriform cortex - olfactory
Main parts of Reptilian System
(Biometrics -> survival)

42. The Limbic System vs. Reptilian
System

43. Neuromarketing Metrics
EEG // fMRI // Biometrics // Eye-Tracking // Facial Coding

44. EEG // fMRI // Biometrics // Eye-
Tracking // Facial Coding
✤ EEG --> electrical impulses on the surface area of the brain (cortex)
✤ fMRI --> oxygenated blood flow into different areas of brain
✤ Biometrics --> heart rate, skin conduction, motion and respiration (all
areas of brain in the reptilian complex)
✤ Eye-Tracking --> precise visual response to stimuli
✤ Facial Coding --> micro-expressions = instant indication of emotions
in limbic and/or reptilian system

45. They Measure...
Primary Metrics:
✤ 1. ATTENTION
✤ 2. EMOTIONAL ENGAGEMENT
✤ 3. MEMORY
Derived Metrics:
✤ 1. PURCHASE INTENT/PERSUASION
✤ 2. NOVELTY
✤ 3. AWARENESS/UNDERSTANDING/COMPREHENSION
...in response to brand/product/packaging/advertising/in-store
stimuli...

46. ATTENTION -- Primary Metric
✤ addresses: Do people notice us?
✤ attention = starting point for all marketing
✤ WHEN to look and WHERE to look
✤ people do not have access to the predecessor processes that lead up to
attention

47. EMOTIONAL ENGAGEMENT
-- Primary Metric
✤ at a subconscious level, our brains are constantly updating our
emotional engagement with the world around us ... left undetected at
a conscious level
✤ 6 emotions: Arousal, Confidence, Inspired, Unimpressed, Annoyed,
Disappointed
✤ emotional engagement = connection we feel to stimuli at a specific
moment in time

48. MEMORY -- Primary Metric
✤ memory = what we depend on when we’re buying things
✤ no remembrance = no influence on product purchase
✤ to conjure up memory -> brain encodes, then retrieves
✤ with neuromarketing, predict the likelihood that someone will
remember something after exposure to stimuli
✤ implicit memory = process of memory influencing attitudes,
decisions, & behaviors w/out entering conscious thought

49. Case Study: Kleenex vs. Andrex
“They ‘feel’ that Andrex is somehow indefinably 'better' than
Kleenex"
“They ‘feel’ that Andrex is somehow indefinably 'better' than
Kleenex"

50. PURCHASE
INTENT/PERSUASION --
Derived Metric
✤ MEMORY + EMOTIONAL ENGAGEMENT ... Advertisement
comes to memory
Process
✤ step 1: Advertisement/Somatic Marker comes to memory
✤ step 2: Past emotions begin to surface

51. NOVELTY -- Derived Metric
✤ brain loves novelty
✤ example: Monkey sees new fruit from tree (increased in chance in
survival) -> caught his attention and he has to, in hindsight,
memorize where he saw it
✤ novelty influences interest, surprise, attraction, and potentially
purchase
✤ novelty is perishable
✤
novelty ... boredom ... irritation

52. THE FUTURE
Tapping Into The Brain’s Subconscious
Date

53. Top Sensory
Brands
Branding’s Sensory Symphony
SIGHT // SOUND // SMELL // TASTE //
TOUCH

54. Sight
Tiffany & Co.’s Trademark Blue

55. SOUND
Mercedes Benz’s Doors

56. Smell
Singapore Airlines’ Signature Scent

57. Bang &
Olfusen
Weighted Remote