1. Advertising with and without Social
Messages: Insights from Neuro
Marketing
By:
Sharad Agarwal
FPM Participant,
IIM Ranchi
sharadiitian@gmail.com

2. Flow of Presentation
• What is Neuro Marketing
• Applications of Neuroscience in Marketing
• Advantages of Neuro Marketing
• Tools of Neuro Marketing
(fMRI, EEG, ERP, P300)
• Advantages of ERP
• Process of Learning
• Framework of our study
• Expected Outcomes of our Experiment

3. Neuro Marketing
• Neuro marketing is the branch of neuroscience
research that aims to better understand the
consumer through his cognitive processes and has
application in marketing, explaining consumer's
preferences, motivations and expectations,
predicting his behavior and explaining successes
or failures of advertising messages
• “Applying the methods of neurology lab to the
question of the advertising world” (Thomson,
2003)

4. Applications of Neuroscience in Marketing
Neuro science can help Marketers by :
• Providing confirmatory evidence about the
existence of a phenomenon,
• Generating more fundamental (i.e., a neural-
level) conceptualization and understanding of
underlying processes,
• Refining existing conceptualizations of various
phenomena, and
• Providing methodologies for testing new as
well as existing theories

5. Advantages of Neuro Marketing
• It avoids the problem of relying heavily upon
subjects’ self-reports when it is highly unlikely
that even the most determined subject could
accurately articulate his or her crucial
subconscious motives
• Neuro scientific tools take inputs from the
processes happening in the brain, and skip all
emotion, introspection and ego
• It is difficult for a survey to capture the emotional
reasons underlying consumer preferences or
decisions

6. Subjects Self Reported
(Survey Method)
MPFC activity from
fMRI
Real world Results
Prediction of Ad Campaign through fMRI
Source: Falk et.al. (2012)

7. Classification of Neuro Marketing Tools
Neuro Marketing
Tools
Recording Metabolic
Activities in Brain
Positron
Emission
Tomography
(PET)
Functional
Magnetic
Resonance
Imaging (FMRI)
Recording Electrical
Activities in Brain
Electroencephalography
(EEG)
Magneto encephalography
(MEG)
Steady State Topography (SST)
Transcranial Magnetic
Stimulation (TMS)
Without recording Brain
activities
Eye Tracking
Skin Conductance
Facial Coding
Facial
Electromyography

8. Functional Magnetic Resonance Imaging
(fMRI)
• It allows observation of deep brain structures
and it is suitable for neuro marketing studies
• It combines magnetic field and radio waves,
producing a signal that allows viewing brain
structures in detail
• It allows measuring brain activity while
subjects perform certain tasks or experience
marketing stimuli, searching for patterns

9. Electroencephalography (EEG)
• EEG measures electric product of the brain
activity, when brain undergoes any stimulus.
• It captures variations in brainwaves, and the
amplitudes of the recorded brainwaves
correspond to certain mental states, such as
wakefulness , relaxation, calmness and sleep
• A number of electrodes (up to 256) are placed
on the scalp of the subjects, in certain areas, in
order to measure and record the electricity for
that certain spot.

10. Electroencephalography (EEG)
• For the analysis, voltage and frequency are
measured for each subject and compared to
the data that was recorded without using
marketing stimuli.

11. Event Related Potentials (ERP)
• Event Related Potentials (ERP) are very small voltages
generated in the brain structures in response to
specific events or stimuli.
• ERP in humans can be divided into two categories.
1 The early waves or components peaking roughly within
first 100 milliseconds after stimulus are termed
‘sensory’ or ‘exogenous’ as they depend largely on the
physical parameters of the stimulus.
2 ERPs generated in later parts reflect the manner in
which the subject evaluates the stimulus and are
termed ‘cognitive’ or ‘endogenous’ ERPs as they
examine information processing

12. P 300 Wave
• The P300 (P3) wave is an event related
potential (ERP) component elicited in the process
of decision making.
• It is considered to be an endogenous potential, as
its occurrence links not to the physical attributes
of a stimulus, but to a person's reaction to it
• When recordedby electroencephalography (EEG),
it surfaces as a positive deflection in voltage with
a latency (delay between stimulus and response)
of roughly 250 to 500 ms

13. Oddball Paradigm
• Two different stimuli are presented in a series
such that one of them occurs relatively
infrequently- that is the oddball
• The subject is instructed to respond to the
infrequent or target stimulus and not to the
frequently presented or standard stimulus
• Majority of studies have employed stimuli to
elicit the P3 wave as it is easy to produce, readily
captures the subject’s attention and produces
least artifact.

14. Advantages of ERP
• Event-related potentials constitute a millisecond-
by-millisecond record of neural information
processing that occurs between presentation of a
discrete stimulus and the production of the motor
response.
• The level of temporal resolution is vastly greater
than other functional neuro imaging techniques
• The instrumentation is potentially portable so
studies can be obtained in a variety of settings
• Moreover, while fMRI cannot be performed on
some individuals (e.g., if they have implanted
metal devices, fear enclosed spaces)

15. EEG Headsets

16. Process of Learning
Short Term
Memory
(5-6 hours)
Long Term
Memory
(Lifelong)
The process of learning, or memory formation, involves
transferring information from short term memory to long
term memory.

17. Conceptual Framework of study

18. Expected Results
• Help to understand the brand recall pattern of
individuals after viewing the advertisements
with and without social messages (Cause
related advertising)
• impact of advertisement with and without
social messages on the short term and long
term memory of human beings
• Managers would be able to choose better
advertising strategy for their advertisements

19. Thank You !
Questions ??