Applications of Neuromarketing

Introduction 

Neuromarketing enables marketers to read consumers’ minds, interests, and preferences and effectively target their advertising. The technology provides a direct window into the brain’s decision-making regions, which may favor how consumers decide whether or not to purchase a product. The global neuromarketing market size is expected to reach USD 21,218 million by 2030, with an annual CAGR of 8.9%. 

The investigation of the consumers’ brain’s inside-outside reactions is done using a variety of methodologies and instruments, including the most recent cognitive scanning techniques. EEG, MEG electromyography, and cardiovascular parameters are a few of the technology-infused neuromarketing inner reflex approaches that are employed.  

Neuromarketing has the potential to become one of the most effective tools for product managers. Functional MRI (fMRI) applications for neuroscience have the potential to reach two stages of the product development cycle. First, the design process itself can incorporate fMRI. In this case, brain reactions could be used to improve product quality before it is made available. In the latter, neuroimaging can be used to detect brain responses once the product has been fully designed, generally as part of an advertising campaign to boost sales. Thus, making neuromarketing one of the most innovative product management tools. 

What Is Neuromarketing?  

Neuromarketing is the study of how people’s brains react to marketing and other brand-related communications. It objectively analyzes brainwave activity, eye movement tracking, and skin responsiveness. 

By studying the brain, these neuroscientific strategies can predict how consumers make decisions. Neuromarketing can also be used to try to influence consumer habits. 

However, many still doubt it, even after learning about its potential and certain ground-breaking findings, so “Is it worthy?” How should it be implemented correctly? What equipment is needed in total? Understanding the technology and its potential applications sit at the heart of the solution. 

Neuromarketing influences the human brain by understanding the mechanism of its operation. It has become a household term since every industry today employs it to shape consumer decision-making and ascertain their preferences. 

Neuromarketing is technically defined as “the science that investigates customer behavior by utilizing techniques and information from neuroscience.” This defines neuromarketing, but there are two main forms of neuromarketing:  

• Theoretical neuromarketing 
• Applied neuromarketing 

Theoretical neuromarketing, often known as “consumer neuroscience,” is the application of neuroscience knowledge to the field of marketing. 

Applied neuromarketing (or “neuroresearch” in some circumstances) is the practice of using neuroscience research techniques or instruments (such as EEG, biosensors, eye tracking, etc.) to do market research. 

Advantages of Theoretical Neuromarketing 

Theoretical neuromarketing provides a fresh theoretical framework for understanding consumer behavior and decision-making (especially the purchase process). The simple “economic man” concept may be set aside thanks to theoretical neuromarketing, and we can instead concentrate on how unconscious reactions affect our behavior and purchasing decisions. 

The two non-conscious and one conscious phases that people go through before acting are explained by the new human actuation models: 

Information processing: Our attentional processes—which are unconscious—decide which stimuli to pay attention to or ignore. This mostly depends on whether these stimuli are distinct from one another (bottom-up attention) or whether our brain values them highly (top-down attention). Attentional processes will be in charge of considering an alternative while making a decision. 

Meaning and emotional value determination: Our brain assigns meaning and emotional worth to the information that is unconsciously received from our senses. This is why we already have a favored selection when making an unconscious choice. 

Deliberation and analysis: Here, conscious cognitive activities are defined as recalling memories, anticipating the future, interpreting the past, planning, generating intentions, evaluating and making judgments, solving a problem, simulating, calculating, and reasoning. This stage may lead us to choose an option that isn’t necessarily the most appealing from a subconscious standpoint. 

Difficulties and Challenges of Theoretical Neuromarketing: 

Many professionals in traditional marketing and related fields are interested in theoretical neuromarketing because they want to learn how to influence their clientele. They aim to “manipulate” customers or their “subconscious minds” in some way to persuade them to buy some particular goods or services. 

However, the human brain is much more intricate than we can conceive. The development of neuroscience has demonstrated to us that numerous factors influence our behavior. In other words, this means that it is now impossible to completely mimic or even make an attempt to manipulate human behavior. Therefore, theoretical neuromarketing does not provide a “manual of customer behavior.” 

The ability to discriminate between trustworthy theories founded on solid research and others that are not is, thus, the major difficulty in theoretical neuromarketing. In such cases, it is advised to always look for primary sources (science research) and never ignore the context of the original study. 

Advantages Of Applied Neuromarketing 

The fundamental benefit of applied neuromarketing is that it offers a layer of information not accessible through other conventional market research methods. 

Observe their behavior: There are a number of approaches used in market research, including field observation, ethnography, big data for digital behavior, and even big data from the internet of things (IoT). 

Understand how people deliberate and analyze: Because the deliberation and analysis phase is conscious, we may directly ask the consumer. Surveys, interviews, and focus groups are the most common ways to understand customer decisions from a conscious perspective. 

Examine unconscious reactions: Since unconscious reactions are not observable, the methods indicated above cannot be used to analyze them (observation or traditional). However, these unconscious responses are created in the brain and frequently impact other body parts (for example, sweaty hands when we are nervous). With the help of neuroscience technologies like EEG or biosensors, it is now possible to quantify these physiological changes and, using sophisticated decoding algorithms, identify the emotional or cognitive response that triggered them. This is made possible by applied neuromarketing.  

In this approach, if we want to understand a consumer’s unconscious response to a marketing campaign, we might observe the physiological changes brought on by watching the advertisement and determine what emotions were responsible for these changes. 

Difficulties and Challenges of Applied Neuromarketing 

It is a frequent oversimplification in the applied neuromarketing research to “use EEGs in a sample of clients as they watch an ad and detect whether the brain area related to positive feelings is active.” Unfortunately, it takes considerably more to execute a neuromarketing study successfully. The following are some of the most important aspects of neuromarketing to take into account: 

The technology of the highest caliber: Without the technology of the highest caliber, physiological data acquired are unreliable, and outcomes are as well. 

Correct experimental design: A study on neuromarketing is still a study on neuroscience. When designing an experiment, it’s important to adhere to a scientific technique and stay away from biases. 

Correct decoding algorithms: No “brain area or part of the brain associated with happy emotions” exists because each human brain is unique. Calibration methods and computational models are required to customize the decoding algorithms. These algorithms are already included in several technologies, including Bitbrain’s laboratories. 

Knowledge of outcomes interpretation: The results of applied neuromarketing include numerical values for particular metrics, but no explanation is given as to how these numbers were arrived at. A competent professional should be able to analyze these findings and offer a diagnosis, lessons learned, and suggestions. 

How Is an Applied Neuromarketing Study Carried Out? 

An applied neuromarketing study requires more than simply attaching the participant’s device to them and exposing them to the stimuli we wish to examine. The following actions are taken to conduct a study properly: 

• Briefing with the client: Your most crucial beginning point for the creative process is the creative brief. With feedback from numerous business members, you draft the brief while under time constraints.You have a lot to say, including the main idea, features, advantages, and supporting evidence. 
• Technologies to include: A briefing with the client will also determine this. Depending on the aims, it may be interesting to acquire particular metrics; thus, some methods are recommended. In order to prevent results with low reliability, it is crucial to employ high-quality technology. 
• Design of the experimental protocol: The design protocol should regulate many aspects and make many design decisions: What stimuli should I display? How much time? What sequence? 
• Organize and execute fieldwork: Depending heavily on the study’s goals, you can often complete all fieldwork for a 40-person sample in one week. 
• Obtain metrics: Using a system that generates the appropriate metrics is practical in the context of neuromarketing. Knowing how to choose a lab with effective decoding algorithms is crucial. 
• Interpret the results: This is a crucial but challenging phase since it requires drawing out important insights from the metrics acquired and responding to the client’s inquiries during the briefing. More value can be gained from the study if more information is accessible (even from other sources). In order to produce an effective outcome report, information synthesis is a must. 

Conclusion 

A developing field, neuromarketing offers prospects in the areas of social, political, and commercial advertising. Because of this, good documentation is needed to capture the state-of-the-art in this subject. This blog attempts to illuminate the technological reach and potential business opportunities in this area, especially its use in the field of product development. UNext offers PG Certificate Program in Product Management where you can learn the latest trends in product development and acquire an IIM Indore certification.