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.
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.