Integrated Marketing Communication Group Assignment - 2 (Library Assignment & Presentation)

Institute of Management, Nirma University MBA (FT) - 2014-16Integrated Marketing Communication Group Assignment - 2 (Library Assignment & Presentation)Neuromarketing

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Submitted by: Group No-3KARAN MEHTA (141122)ANISHA BHANSALI(141208)PRAVEEN KUMAR JHA(141237)SUMIT KUMAR(141259)BHARGAV KORAT(141308)INTRODUCTIONIts easy for businesses to keep track of what we buy, but harder to figure out why. Enter a nascent field called neuromarketing, which uses the tools of neuroscience to determine why we prefer some products over others. People are fairly good at expressing what they want, what they like, or even how much they will pay for an item, says Uma R. Karmarkar, an assistant professor at Harvard Business School who sports PhDs in both marketing and neuroscience. But they arent very good at accessing where that value comes from, or how and when it is influenced by factors like store displays or brands. Neuroscience can help us understand those hidden elements of the decision process. Neuromarketing is the tool which helps inunlocking the mysteries of consumer choice.Neuromarketing is an emerging field that bridges the study of consumer behaviour with neuroscience. Controversial when it first emerged in 2002, thefield is gaining rapid credibilityandadoptionamongadvertisingandmarketingprofessionals.Eachyear,over400billiondollarsisinvested inadvertisingcampaigns. Yet,conventionalmethodsfortesting and predicting the effectiveness of those investments have generally failed because they depend on consumers willingness and competency to describe how they feel when they are exposed to an advertisement. Therefore, many major corporations have begun to take special interest in understanding how the human brain can help them better understand consumers. Neuromarketing offers cutting edge methods or directly probing minds without requiring demanding cognitive or conscious partipation.History of NeuromarketingThecombinationofneuro and marketingimpliesthe merging of two fields of study (neuroscience and marketing).The term neuromarketingcannot beattributed to a particular individual as it started appearing somewhat organically around 2002. At the time, a few U.S companies like Brighthouse and SalesBrain became the first to offerneuromarketing research and consulting services advocating the use of technology and knowledge coming from the field of cognitive neuroscience. Basically, neuronmarketing is to marketing what neuropsychology is to psychology. While neuropsychology studies the relationship between the brain and human cognitive and psychological functions, neuromarketing promotes the value of looking at consumerbehaviorfromabrainperspective.The first scholarly piece of neuromarketing research wasperformedby ReadMontague, Professorof Neuroscience atBaylorCollegeofMedicinein2003andpublishedin Neuron in 2004.In a blind-taste test, consumers are asked to choose between Pepsi and Coca-Colaand to no ones surprise, Pepsi wins. However, a decade ago, neuroscientist Read Montague posed a question: If people truly prefer Pepsi over Coke, why isnt Pepsi dominating the market?Montague created a Pepsi Challenge of his own, hooking up his test subjects to an MRI machine to track brain activity. At first, about half of the participants said they preferred Pepsi; however, when Montague told them which samples were Coca-Cola, preferences shifted to three-to-one in favor of Coke. Additionally, he observed heightened activity had in the prefrontal cortex, part of the brain that controls higher thinking; as well as in the hippocampus, which relates to memory.Montague concluded that the brain was recalling images and ideas from commercials, and that the thoughts and emotions connected to the branding were overriding reactions to the actual quality of the product. In 2004, he published his findingsand as a result, neuromarketing emerged from the shadows and into the public eye.

For what kinds of customers is neuromarketing effective?Neuromarketing is a flexible method to determine customer preferences and brand loyalty, because it can apply to nearly anyone who has developed an opinion about a product or company. No matter what form it takes, marketing focuses on creating positive and memorable impact in the minds of customers. Neuromarketing measures those impacts, but anyone can take the basic discoveries and adjust their product or sevice to reflect subconscious consumer needs.Sensory devices that create or evoke memories, for example, can be easily employedthe aroma of fresh bread, recollections of past stories (either a published work or a shared experience), evocative language, a song that gets stuck in your head and wont come out -- ultimately, these are all effective (if crude) examples of neuromarketing that can be used by nearly any business of any size.Tapping the subconscious mind: Today marketers are adapting new and complex scientific techniques to dig into consumers subconscious minds to make the art of selling more creative and data driven. Its not the product or a service that makes a customer happy but what makes a customer happy is how that product is perceived, the sense of joy and pride that comes by being associated with that product/brand.Neuroscience & MarketingBrand and product management through consumer behaviour is more of an influencing art rather than a marketing tactics. Neuromarketing finds its importance in revealing the taste of the consumers as per their gender composition, emotional connect, brand importance. Nowadays packaging, messaging, advertisements, marketing themes such as ambush, subliminal, guerrilla are all influenced by the brain waves action of Neuromarketing. Neuromarketing is primarily used nowadays to better understand consumers wants and needs and point consumers in the right direction towards right fit by tapping the comfort zone of the consumers and then using marketing science tactics for any product launch.Neuromarketing and consumer satisfaction:In such an advance social media network and constantly changing buying behaviour, Neuromarketing signals a direct new brain to brain shared emotion. Every firm, organization and community whosoever is dealing with consumer or employer is trying to satisfy the needs and wants in order to retain the consumer and maintain long term relationship for better sales of their products. Neuronal sensory system drives consumer thoughts and behaviour towards anything and thus appeals to consumer wants, needs and desires.Neuro Marketing Tools: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 patternsElectroencephalography (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. For the analysis, voltage and frequency are measured for each subject and compared to the data that is recorded without using marketing stimuli.Neuroscience Working Principle: Neuromarketing understands that when stimulated different parts of the brain are activated. By understanding and observing these responses using MRI and EEG, and analysing the timing and response of our brains in relation to specific stimulus researchers can determine what we really think.

Neuromarketing Relevance:Decision buying and consumer behaviour is highly reflected by the below mentioned seven tactics of Neuromarketing: Be visual: the study by Neuro marketers suggests that any item should reflect visibility in front of target audience and appeals to the desire of the consumer. Visibility matters much more than the content description. Create contrast: Since the plethora of products are available in the market for attracting customers, sale and maintaining customer base, any firm should have some USP associated with the product launch. That USP should posses contrast, should stand out among other products and should truly reveal the essence of launch. Firsts and Lasts push: A good marketing strategy on any product is something which could capture the mind of customer in its first launch and left an everlasting impression. In such a busy and competitive lifestyle, Neuro marketers suggest an ideology of first impression is the last impression. Emotional connect: To influence brain activity, any product should have an emotional connect with the consumer mind to persuade him towards buying proposition. Brain to brain association of product with consumers is essentially important for success of product. Keep it simple: Any complicated and complex terminology requires lot of thinking and interpretation. People are too busy to give a minute of thoughts on product. They immediately carry an image of product which has simple but lucrative demonstration in the outlets. Concreteness: Simplicity and concreteness is the guru mantra influencing buying decision and creating positive image in the consumers mind. Make it personal: Product should be directly associated with the needs of consumer. No matter how much personifying a demonstration will be, it would carry no meaning and importance until and unless it is related to the needs, wants and desires of consumer.

Case Study: Shelf Analysis (Space Management)Agency: iMotions - Enabling Services Date: April - June 2009Client: CadburyPlace: Denmark

Objectives:The client wanted to know the optimal space management to place the Fusion group of products and the V6 group of products in the supermarket check-out shelf

Methodology: Attention Tool + Questionnaire Target segment: 120 people (Males 50% / Females 50%) 15-39 years old 2 Cells: (A/B) 60 people each (30 M / 30 F) Cell A was shown to be measured by EYE TRACKING METRICS Spotlight & Highlight. Cell B was shown to be measured by the same metrics

1. Fusion group of product on Top Shelf

2. V6 group of product on Top Shelf

Note - Area nos are given in ascending order based on the decreasing order of time spent in looking shelf space.The Result shows that customer was looking at other places for 38% of their time in case when Fusion group of product are placed on top shelf and 27% of time when V6 group of products are on Top shelf.

HighlightFusion at top (Time Spent) V6 at top (Time Spent)

Top Shelf15%12%

Middle Shelf10%11%

Discount DividerX4%

Conclusions / Learnings

The Fusion group of products gets more attention than the V6 group of products no matter where they are placed (though the difference is very little). The Top shelf gets more attention than the Middle shelf no matter which products are placed. In general the respondents look first at the top shelf and then at the middle shelf no matter the arrangement of the products. Whenever the Discount-Price groceries divider is present, it is the first element to catch the attention of the respondents, gets considerable amount of attention and is looked by approximately 75% of the respondents. The optimal space management arrangement for product visibility is to place the V6 group of products in the Top shelf and the Fusion group of products in the Middle shelf to help V6 gain more attention.

Case Study on Campbell Soup Company

CompanyIntroductionNew Jersey, USA based company Campbell was a maker and seller of food products. As of November, 2011, Campbell was the largest producer of Soups in the world. It had about 75% of US market share in wet soup market with annual sales accounting to about 2 billion cans. HistoryCampbell started a tinning unit in 1869. It started manufacturing condensed soups in late 1890s. As of 1904, the unit had annual soup sales of 18 million cans. In 1922, the unit was incorporated as the Campbell Soup Company. Campbell introduced its chicken noodle and cream of mushroom soups in 1934, tomato juice in 1938, and, cream of chicken soup in 1947. The company achieved annual sales of US$100 million in the early 1940s. For the year ended July 31, 2011, it generated net sales of US$7,719 million and net earnings of US$802 million.

Issues Faced by the Company1. The product has reached its maturity stage in PLC and hence it was difficult for the company to consume more soup than before.2. The sales of condensed soup reduced by 5% in 2002 in USA3. The exports of the company also reduced by 6% in the next quarter4. Their advertisements had little or no influence over consumers buying behaviour5. The consumers' actual buying patterns were not consistent with the correlation they had exhibited between ad remembrance and willingness to buy. The company was unable to know the consumer behaviour because of conventional market research methodology.

MethodologyThe company decided to go for an intensive market research as well as use the technique of Neuro Marketing to know the behaviour of consumer based on their responses to different catalysts in advertisements, communiqus, pictorial presentations, and other marketing ploys. The basic reason for using Neuro Marketing was that consumer purchasing decisions took place in micro seconds in the subconscious, emotional segment of the brain and by assessing what consumers preferred, did not prefer, needed, were scared of, or were less enthused by, as suggested by their brain's responses to propellants, marketers could develop products and messages that would cater better to market requirements, and bond and influence the purchase.The physiological aspects under study were consumer heartbeat, perspiration and pupil movement while viewing the Campbells soup cans. Changes made by The CompanyCampbell made many changes to create positive feelings within the customer when they view it. The changes made were as under1. Company removed the spoon from the image incorporating an image of steam rising from the soup signalling the feeling of warmth connected with consumer at an emotional level.2. Moreover company also removed its legendary red coloured streak at the top of the soup containers which was making it difficult for the consumer to pick up their preferred flavourResultsIn the initial quarter after the changes were made, an increase in sales of about 5% was noted. But in the next quarter the sales again decreased which gave the company clear signs that there is the requirement of new product in the market to push on sale. Campbell has been continuing the same product line since 40 years and hence there was an requirement for new offering in the market.