Current marketing strategies are not working; most advertising campaigns are not producing the desired effect of capturing the minds of consumers. In the U.S., for example, an adult is exposed to 52,000 TV ads per year on average, which translates to more than $68 billion in TV advertising spending per year. However, there is little evidence that the ads influence consumer behaviour in this frenetic world.
To address this issue, marketing organizations are seeing the need to develop new methodologies and mechanisms to better understand consumer motivation. Neuromarketing is emerging as a new sub-area in marketing combining psychology, neuroscience, and economics to study consumer behaviour and understand consumer motivations and emotions.
Neuroscientific technologies are being used to understand how the brain is physiologically affected by advertising and marketing strategies. This is leading to the creation of new technological approaches (user interfaces, applications and software), to enable companies to “read the customer’s mind” and tailor marketing practices, products and services.
With the evolution of technology and increasing public knowledge of the marketing techniques to attract consumers, the marketing sector is currently faced with the need to develop new mechanisms for neurobehavioral interpretation. This new sub-area of marketing beginning to emerge is neuromarketing. In order to develop new communication techniques neuromarketing uses neurophysiological analysis technologies to study consumer behaviour and understand the desires, impulses and motivations that are activated in the presence of certain stimuli.
The ultimate goal of neuromarketing is to understand consumer preference, expectation and motivation in order to predict behaviour and evaluate the effectiveness of advertising. The rationale behind neuromarketing is that human decision-making is not so much a conscious process and the “homo economicus” basis for the majority of economic models is outdated. Instead, there is more and more proof that the willingness to buy products and services is an emotional process where the brain uses a lot of shortcuts to accelerate the decision-making process.
While consumer neuroscience refers to academic research at the intersection of neuroscience and consumer psychology, neuromarketing refers to commercial interest in such neurophysiological tools as eye tracking, measurement of skin conductivity, electroencephalography and functional magnetic resonance imaging to conduct company-specific market research.
Most of the work done in this area uses EEG to study variations in brain signals when the subject encounters a particular stimulus, or fMRI to study variation in blood oxygenation during different activities. However, the scientific community has observed that other physiological signals are also indicators of a person’s emotional state. In 2008, Kim Jonghwa used electromyography sensors, electrocardiography, skin conductivity and respiration rate to measure the emotion aroused in subjects exposed to music. A correlation was observed between the electrophysiological variations and emotional states, with skin conductivity and electromyography associated with changes at the level of excitement while electrocardiography and rate of respiration were correlated with valence.
To develop a new marketing communication methodology, new models need to be created for using neurophysiological technology not only to assess the emotional state of the person in reaction to a particular stimulus but also to assess the development of a memory.
Neuromarketing has been studied from a variety of viewpoints, including how it relates to an ageing population, stock traders and risk-taking, chemical influences on the brain and decision-making, loss aversion, and decision-making under uncertainty. All of these viewpoints have value for marketers in creating marketing strategies for target populations.
Internet of things is taking neuromarketing to whole new level, now the way you interact with things provides a good insight into the marketer how to reach you. This field has a growing potential and all the Nielsen of the world are looking for you to interact with the devices around you.