Neuromarketing: Evolution

marketing and sales from a neuroscience angle

marketing and sales from a neuroscience angle

The Need for Neuromarketing

In the United States 8 out of every 10 new products brought to market fail within one year’s time. If we hop a flight to the other side of the world and stop in Japan we’ll come to find out that 9.7 out of every 10 products fail in the first year. These are pretty dismal numbers. Now I understand there are a lot of factors that play into the success (or lack there of) of any given good or service, but a lot of the emphasis in the launch of a product is placed on marketing.

Billions of dollars are spent each year on focus groups, trials, tests, or whatever tools researchers are using to predict the success of a product, yet 80% of the time they fail. As the market place continues to get more crowded the likelihood of success is diminishing unless we as marketers can better predict what actually appeals to potential consumers.  To achieve this goal we’re going to have to enter a new arena that few marketers dare to go; the human brain.

From the Marketplace to Our Minds

From the second you start your day you are bombarded with an assault of marketing and media: TV commercials, radio ads, banners on your favorite websites, street signs, and this list gets longer every hour. In fact, we are so heavily bombarded with marketing much of it becomes background noise to us after a while.  By the time you are 60 years old you will have seen over 2,000,000 commercial advertisements.  Astonishingly enough a recent survey from ACNielson found that the average person could only remember 2.21 commercials of those they had ever seen, ever, period (Buyology, Lindstrom 2008). This proves a point that you can flood a marketplace with advertising and marketing, but if you never penetrate the mind of a consumer you will fail.

Al Reis and Jack Trout were game changers when they came up with the idea of “positioning”.  They maintained that the only thing that mattered in marketing is not where you were at in the marketplace, but more importantly where you were in the mind of the consumer.  If your brand was present in the mind of the consumer you were exponentially more likely be purchased than someone who wasn’t and this is beyond true. If at this very moment I had you name as many brands of toothpaste as you could you would probably come up with a list of around 7 brands, if that. Those brands you came up with hold a lot of weight in your purchasing decision because they are the brands you’re most likely to purchase. And that brand you named first is probably the brand of toothpaste that is currently sitting in your cabinet at home.

From Our Minds to Our Brains

It would only be a matter of time before science would step up to the plate and start hitting some homeruns (non steroids, of course) in the marketing stadium. Science can literally map our brains through neuroimaging while we go through our purchasing process.  Neuromarketing can effectively map the entire purchasing process from our initial perceptions to our final decisions. The great thing is that we’re in it right now. Researchers are pioneering this process and learning new information every day. For example, in fMRI tests the design of The Mini Cooper triggers a part of the brain associated with faces, more specifically a baby’s face, in participants’ brains. The facial expression of a baby is a strong perception that is almost always positive and not surprisingly more so with women than men.

We are all consumers, and with every purchase we make we’re making a decision. The neuroscience of decision making, in general, is largely dominated by our emotions rather than our logic.  The question that many marketers face is how to properly blend emotional design into our products and marketing campaigns. This challenge looms over companies all over the world, and surprisingly very few have adopted the neuromarketing approach to business because they simply don’t know it even exists.

My Vision:  Neuroecology

Marketing campaigns exist to grab your attention and make you aware that a product exists. That marketing/consumer interaction is very topical and rarely goes any deeper than being present in your conscious for a brief moment in time. However people to people interactions hold a lot more weight in helping us form our perceptions and in making our decisions.  The person to person interaction is the only true way to authentically connect with another person and communicate knowledge. Neuromarketing will get your attention, social neuroscience will then communicate and understand the consumer’s needs and create a sale.

In most corporations today marketing and sales departments are distanced from one another and have little interaction. Marketing people are viewed as the creatives and sales people are often held in a negative light. However if you had your marketing department on the same page as your sales department in a streamlined brain based campaign you could effectively reach more people, and more importantly reach them authentically. Sales can learn a lot from neuroscience. Just like a marketer can tailor a promotional piece to effectively reach a desired audience, a trained sales person can effectively communicate the benefits of a product to the customer by utilizing presentation skills and strategy that are proven to help people make better decisions. I call it Neuroecology because this strategy takes into account everything that goes into a business decision from the selling environment to product perception to marketing to personal interaction and finally to the decision. More importantly Neuroecology is a dynamic process that is highly attuned to emotions, much like human nature.

A highly recomended read that detailes the emergence of neuromarketing and peers into the future of the field.

A highly recomended read that details the emergence of neuromarketing and peers into the future of the field.

Neuromarketing Threats

Some government groups are attacking neuromarketing claiming that it is unethical and want a ban on research. These people simply have a lack of understanding for what neuromarketing can actually accomplish. Images of subliminal advertising come to mind at the mention of brains and marketing, but these images are simply not true and they’re rooted in folklore. There is no magic buy button in the human brain. There are only complex processes that lead to a single decision. Neuromarketing provides us with the opportunity to improve the quality of business by better understanding ourselves and each other in order to better serve our potential consumers. Neuromarketing is scientific, ethical, and it is the future of business.

You Probably Think this Post is about you

Yes, I’m this Awesome all of the Time

 

“As individuals and as a nation, we now suffer from social narcissism. The beloved Echo of our ancestors, the virgin America, has been abandoned. We have fallen in love with our own image, with images of our making, which turn out to be images of ourselves.”

 

This is the dialogue of Daniel J. Boorstin, an American educator and historian, and surprisingly enough this quote is from 1914.  Now I have to imagine that if Mr. Boorstin had to spend but a few hours in today’s society his brain might fall right out of his skull. I mean this guy thought we were full of ourselves in 1914. Imagine what he’d do when we slap a pair of True Religion jeans on him, match it up with a Lacoste polo, and for the hell of it put an iPhone in his pocket.

 

The truth is narcissism is becoming an epidemic in today’s society. Just a few weeks ago The RedEye Magazine in Chicago dedicated an entire layout to tackling this very subject matter. I would like to do the same today. Undoubtedly all of us know someone that we might consider a narcissist (and if you can’t think of a person you know who fits this bill it’s probably you, sorry). We might call them a friend, coworker, acquaintance, or that tool at the gym whose shirt is too small and hogs all of the machines you’re trying to use. Since more often than not we are forced to interact with narcissistic people it should be helpful to understand them a little bit better.

 

The Narcissist Debate

 

i hope you get the what this picture is trying to say...

i hope you get the what this picture is trying to say...

Most cognitive researchers agree that there is a great deal of incongruence between how narcissists act and how they really feel deep down. Jean Twenge, author of The Narcissism Epidemic, debates that narcissists actually think and believe they really are that awesome. Wendy Behary, director of The Cognitive Therapy Center of New Jersey, debates just the opposite believing that underneath the bravado of a narcissist is really a high degree of insecurity. Fellow Chicagoan and psychoanalyst, Frank Summers holds the view point that narcissists are overwhelmingly addicted to affirmation.

 

As you can see there is a good amount of diversity in regards to narcissists, and rightfully so. After all, no two people are exactly the same, so why should we pigeon hole our ego-inflated friends and lump them all in with a singular motivation. I’ve dealt with a variety of people who exhibited narcissistic qualities and all of them had drastically different motivations that could fit the descriptions of any of the three specialists listed above. 

 

Social Intelligence and Narcissists

 

Perhaps one of the most frustrating things about dealing with a narcissist is their ability to succeed. All exhibit this booming confidence that over time has developed from their skills and abilities.  Daniel Goleman, Harvard PhD and leading social intelligence researcher, has linked narcissism to three main motivations: Dreams of glory, adoration, and self righteousness.  Surprisingly enough Goleman maintains that succeed in our society today narcissism can go a long way to helping you make difficult decisions. He refers to this as “healthy narcissism” and the key descriptor in healthy narcissism is that this person has to ability to take criticism and ideas that are not their own.

 

Ladies, is this how you get ready to go out on the weekend?

Ladies, is this how you get ready to go out on the weekend?

On the other side of the coin we have unhealthy narcissism. The motto of this narcissist is that others exist to serve me. They act with little to no concern for people around them. If the motto of social intelligence is “seek first to understand and then to be understood” their motto would be “you should always understand me”.  The goals and motivations of this narcissist are front and center in their life, and other people’s goals and motivations don’t even register on their radar. Unlike their healthy counterparts if you challenge these narcissists they will explode on you. Further these narcissists do no handle constructive criticism well at all (in fact most children today don’t either).

 

Babies and Narcissists

 

When we’re infants we lack the cognitive ability to understand that others’ needs exist in this world besides ours. Seriously, we’re these selfish little creatures that act impulsively and make a stink if we don’ get fed, changed, entertained or whatever it is that babies want. However, as we develop we begin to realize that other’s have motivations like we do and we attune to those needs and motivations. This is perhaps our first and one of our most important lessons in social interaction. Children who perform the best socially are willing to share and take time playing with others and wait their turn. They’ve learned in a way to table their impulsive selfish needs for the whole of the group or their friends.  Hearing me describe the selfish infant almost sounded like I was describing a narcissist. Perhaps narcissist failed to properly acquire these social skill set as children.

 

We all have Selfish Brains

 

Our old brain, our most primitive brain that we share with all mammals, is selfish and it serves us right to be so. In evolution if we did not act quickly for our own interests we were usually gobbled up by some large animal. Over time we developed more complex brains on top of this brain, however the old brain still runs the show because it the decision making center of the brain. Thought helps guide this process but when push comes to shove emotion chimes in our old brains says yes or no. Studies on organizational behavior have suggested that in turbulent and stressful situations people resort back to more selfish motivations and actions. This is not surprising at all because we have to ensure our own safety in times of peril.  Now let’s look past this false bravado of any given narcissist. If underneath it all these people possess a high degree of insecurity there is probably a fair amount of stress and threat that is motivating their selfish repetitive actions.

Morrie Schwartz (Tuesdays with Morrie) said “The culture we have does not make people feel good about themselves.”  He was speaking to the false pressures that our culture places on all of us; Pressures like being the prettiest, the skinniest, the smartest, the wealthiest, and the most successful.  A lot of people today, especially our impressionable youth, feel this pressure and in the struggle to become something they desire place a lot of stress on themselves. This stress can be one of many routes to narcissism. The other half of Morrie’s quote is, “…And you have to be strong enough to say if the culture doesn’t work, don’t buy it.” It would seem to me narcissists have the confidence to besomething their not, but lack the confidence to be who they really are.

Creativity is the New Key to Success

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Are you an artist? Depending on your age your answer will vary. You see, if I were to walk into a kindergarten class and ask this question nearly all of the hands would go up in agreement. However, if I waltzed into a general education college class and asked this question only a handful of students would raise their hands. The truth is that we are all artists, whether you know it or not. For beginners we have to broaden our perception of art from a guy wearing a beret holding a paint brush and attacking a canvas like a skilled swordsman. Art is creativity, and creativity is boundless and freeform.

 

“All children are artists. The problem is how to remain an artist once he grows up.” – Pablo Picasso

 

Symbolism and Light Sabers

 

We all share a common characteristic in our brains that allows us to do something that is uniquely human, and that is create, interpret and understand symbolism. We have our highly evolved neo-cortex (new brain) to thank for that. It’s our new brain that through evolution allows us to think in abstract and hypothetical. This is important because symbolism is the cornerstone of creativity.

 

I was recently playing Star Wars with my nephew and we were using these green swimming noodles as light sabers as we battled in a duel – I was the Sith Lord and as a result got my arm chopped off. The part I want to focus on here is the green swimming noodle, because that is far from an actual light saber as possible, I mean it’s a water toy. However, our ability to rethink and perceive that noodle as a light saber, and not a noodle, is a distinctly creative, human, and cognitive skill.  Thousands of years back when we were just starting out as apes in a jungle the ability to see a rock for something more than a rock was a huge advantage to our species. No longer just rocks, we now have a hammer to crush up food or a projectile to protect us from pursuing hunters.  Long ago we left the jungle behind, but we still keep our creativity and symbolism with us because it’s still vital to our survival.

 

Symphony, Success, and Back to the Jungle

 

Our lives are filled with symbolism: mementos, keepsakes, logos, brands, signs – most of these carry emotional weight only strengthening our perception. This process of interpreting symbols is often processed in our brains out of our consciousness so this process is often taken for granted. It’s important we spend time discovering our own creative processes in addition the creative processes of others.

 

Everybody has been through a process of creative inspiration, meaning that they witnessed or experienced an event that is seemingly unrelated to another event but some how gives it explanation or purpose. I call this the Apple/Gravity effect. For example: Isaac Newton saw an apple fall from a tree and some how came up with the theory of gravity. Just think about that. It’s freaking mind blowing! The diversity of perception is fuel to our creativity. This ability to link two or more unrelated ideas is known as symphony.

 

I mentioned how we lived in a jungle many thousands of years ago. Well guess what, our culture is becoming a jungle again, and surprise, surprise, we need creativity to survive. Let’s look at our business world for a moment. There is so much competition and abundance out there that it’s scary. In my line of work I may be up against as many as 16 different vendors on a given deal, all offering similar goods and services as myself, now add a degree of uncertainty because of this crap economy and you can begin see the jungle I’m talking about. Alright Kevin, what are you getting at? If all products are essentially equal in quality the only differentiating factor is the emotional and creative appeal that is associated with the product. This means creativity and symphony are the X factor to success, especially in a turbulent competitive world. Creative thinkers step up. We need you now more than ever.

 

Pursuing Creativity: Creative In

 

I’ve heard a lot of people say “I’m just not that creative.” That’s a load of crap. They don’t have a creative disability; they’re just out of practice. The reason kids are so creative is that a child’s brain is nearly twice as active as an adult’s brain and as a result children have this desire to observe and explore everything. If you want to be more creative you need to open yourself up to new ideas, new concepts, and new perceptions. This will allow you to expand your thought and possibly provide the link that might lead to relevant symphonic ideas.

 

Pursuing Creativity: Creative Out

 

Externalize your creativity: write, draw, cook, doodle, dance, or something completely crazy that we don’t even know about.  Here’s a fun game I like to play when working with a new college class. Take out a blank piece of paper and a pen. You will have two minutes to write down as many uses for an object as you can think of. Have a friend give you a random object and begin. This is a practice in divergent thought, and you’ll be surprised with how many or how few uses people can come up with in that time. Once you’re done share your results with others and find out how they came up with that idea. Repeat with new objects. Keep in mind there are no wrong answers when you’re thinking divergently.

 

Lastly, define yourself as an artist, because in some way or form you are one. Personally, my art is people. I use the science of social interactions to better understand people so I can empower them and energize them to reach new levels of success that weren’t there previous to meeting or working with me. Okay, now it’s your turn. How are you an artist?

here's what i came up with

here's what i came up with

You’ve got to move it move it. What? Move it!

Movers and Shakers 

I have a niece and she is crazy. I mean she is just plain nuts. She is also only two years old, so she is living up to the “terrible two’s” stereotype, if not surpassing it. Now I don’t mean to say that she is a bad kid – and she’s not, she’s absolutely adorable – but she just gets into everything. She is curious, as all children are. If something has her attention she’s going to make a full effort to explore and find out more about it. The need to explore is a human trait and is deeply rooted in our neural evolution. For thousands and thousands of years humans have been very active in exploring planet Earth (and other planets too). Our activity as a result of our exploration has had some pretty profound impacts on our brain development. 

 Humans are made to Move 

notice that all of these people are in motion. that could be you!

notice that all of these people are in motion. that could be you!

Who wants to walk 12 miles with me today? Any takers? Probably not.  It might surprise you to find out that our human ancestors traveled as much as 12 miles a day. They did this to find food, safety and to explore. Thousands of years of traveling did much to improve the brain functions of early man, and it still holds true for humans today. 

 Our brains make up only 2% of our body mass, yet account for 20% of our energy use. That’s an incredible fact considering that if the brain was like the rest of the body is should really account for 2% of energy use. Oxygen is vital to brain nourishment. Activity (exercise) does humans a lot of good. When the body is moving during exercise it pumps blood and oxygen through out the body and especially to the brain. Nitric Oxide is a flow regulating molecule that through exercise creates more blood vessels in the brain in some pretty key areas. This process of neurogenesis helps improve our cognitive ability. 

 Don’t be a couch potato 

 

I highly recomend this book.

I highly recomend this book.

University of Washington Neurologist and author of the book Brain Rules, John Medina, shows that our society gives us a lot of reasons be a couch potato. Things like television, computers, and video games often allow people to sit around for hours upon hours with little body movement. Couple that with fast food and you wonder why America is the world’s fattest nation.  John goes a step further and examined some of our most institutional environments that we created for ourselves and how they negatively impact our brain development and chemistry. I’m talking about classrooms and cubicles, the mainstays of our educational and professional systems. Think about it for eight plus hours a day our children and coworkers are often sitting motionless at a desk or trapped in some fabric-lined neural jail cell. For our brains to function optimally we as humans need to move. 

Active Performance 

It’s important to note that exercise alone will not improve your cognitive ability but repeated tests have shown a strong association to improved cognitive performance. In fact it was found that physically fit kids and adults had faster response times compared to their over weight counter parts. What’s more amazing is that physical activity and exercise were found to decrease your odds of Alzheimer Disease by 60% and stroke by an amazing 57%. 

The great news is that you don’t have to run marathons to benefit from exercise. All you have to do is walk about 20 minutes a day three days a week and be more conscious of your dietary intake. It really doesn’t take much. It should also be noted that balance is key to exercise. Overdoing workouts will negatively impact your brain function. So be fit in a manner that comfortably works best for you. Walk when you can and breathe deep and often because Oxygen is so important your brain’s health and development. 

 We have the same brains our early ancestors did that walked 12 miles a day. So be active and make the most of your brain. I’ll leave you with this quote from John Medina that sums up why humans are made to move.  

“We were not used to sitting in a classroom for 8 hours at a stretch. We were not used to sitting in a cubicle for 8 hours at a stretch. If we sat around the Serengeti for 8 hours – heck, 8 minutes – we were usually somebody’s lunch.”

Embracing Failure… Becoming The First Penguin

You’re Going to Fail

 

You are going to fail. It’s that simple. You are going to fail. Now it might not be today, it might not be tomorrow, but at some point down the line you’re going to mess up.  And it’s not going to be some little screw up either. It’s going be really bad. For some of you, you’re going to see it coming. For others you’re going to get blindsided. Some of you, bless your hearts, are going to do everything right and then guess what, you’re still going to fail. Some of you probably all ready failed. Have you gotten the hint yet? Everyone fails in some form or way in their lives, be it professional or personal. But one thing is for certain, there’s no getting around it. So you might as well embrace it, because failing isn’t as bad as you think.

 

Why We Fear Failure

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A student fearing failure is a student handicapped by outdated educational ideals.

 

Now as you read that first paragraph your stomach probably turned a little bit and some thoughts started flowing through your head about things that could fail in your life right now. Maybe is that deal waiting to close? Maybe it’s that first date?  We as a society fear failure. We are terrified of it. Through our educational development we’ve been conditioned to fear being wrong. Failure is stigmatized in our educational systems. It is the reason why when a teacher asks a question in a kindergarten class all the hands go up and when a professor asks a question in a college course only a handful of hands go up. At some point along the way we as learners begin to think that being wrong is the worst possible outcome, and we run our business like this too.

 

Think about it this way. All of us spent the first 18-22 years of our lives being told that failing is wrong. The truth is that academic life is geared around your success. In most cases if you get a C in a course that is the pretty bad, when in reality its average. Failure in the real world is much different because anything goes and you need to take chances to succeed. If you consistently got a 4/10 on your college quizzes you would probably get an F in that class. However, if you were a professional baseball player and 4/10 at bats you got a hit you would be going to the All-Star Game.

 

 

The Other Side of Failure

 

Hypothetically failure is horrible, but in retrospect failure is often essential to success.  So why is failure essential to success? Well there are two main reasons that I can think of: The first is because only through our mistakes and failures we can truly begin to learn and develop. The other reason is that failing over time begins to make us resilient to aversive conditions.

 

Michael Jordan said it best. He said, “I can accept failure. What I can’t accept is not trying.” That is what I am getting at. If you try, if you really give it all you got you’re going to get something out of the process of your attempt. So the end result is that you goofed or things didn’t go according to plan. The odds are that if you truly gave your best effort you’re going to walk away knowing something that you didn’t before.  That is what matters most.  Ask any great champion or stand out in their field and they will tell you the same thing. Failure leads to success.

 

What Juggling Can Teach Us about Failure

 

In my senior year of college I heard Curtis Zimmerman give a speech. Curtis is a tall large framed man who slicked his brown hair back and wears thin wire framed glasses. Curtis is a world renowned entertainer and circus performer. He can swallow swords, eat fire and juggle like it’s nobody’s business. The culmination of his speech is to have a person come on stage who can’t juggle and learn how to juggle in front of the entire audience, and best of all he guarantees they will learn to juggle, and the person, nervous as they always are gets it every time. Curtis then puts on a juggling show where he’s juggling three, four, and five balls in different patterns and ways that people have never even seen before and he’s getting really into it he says, “Do you know why I am able to do this so well?… Because I’m not afraid to do this.” And he lets all of the balls fall on the floor. “The reason I can juggle so well is because I have dropped the balls more than any other person in this room. My past failures are the reason for my current success.”

 

The First Penguin

 

The late Randy Pausch PhD, author of The Last Lecture and former professor at Carnegie Melon, gave out a First Penguin award each year when he was teaching to the biggest failure in trying something big and new because he thought this should be celebrated. The idea came to him because First Penguins are the ones that risk their lives to jump into water first even though it might be filled wih predators.

penguin08

Behold the glorious First Penguin. This penguin is the first to dive into the water. That water might be filled with predators or that penguin might get first dibbs on all the tasty fish in the ocean. Take the risk.

 

My best advice is if you’re not the first penguin find someone who will make you the first penguin, find someone who will push you into the frigid waters below. When I first started my job right out of college I was fortunate enough to have a boss who embraced failure and taking chances. Believe it or not I was scared to make phone calls to clients because I was scared I might mess up and fumble my words on the phone and sounds dumb. So my boss sat at my desk with me and made me make some calls. I was so nervous I messed up a lot at first, but then I realized that this wasn’t so bad at all. After while my initial fear wore off and I became quite good at the phones. Now I start off every phone block session with a random call to a business in a phone book just to get my goof up out of the way. I used to be that little penguin on the edge of the iceberg looking into the water, scared to jump. Today I’m still that little penguin, but now I’m doing back flips into the water and give it my best effort every time I jump.

 

Be that first penguin. Celebrate your attempt even if it ends up in failure, because odds are you’ve learned something important along the way. Good luck.

 

Some quotes and media on failing that you might like.

 

“Why do we fall? So we can learn to pick ourselves up.”

                                                            – Batman’s Dad

 

“Mistakes are, after all, the foundations of truth, and if a man does not know what a thing is, it is at least an increase in knowledge if he knows what it is not.”

– Carl Jung, Psychologist

 

“My reputation grows with every failure.”

                                                            – George Bernard Shaw

 

“Failure is instructive. The person who really thinks learns quite as much from his failures as from his successes.”

                                                            – John Dewey