Neuromarketing: Can this be a dominating Marketing Strategy?

Abstract

Marketing has always been an evolving domain in the business. Different innovations, methods have been used and have been successful in providing market exposure to industries and increase the market share and therefore sales of their products/services. With the introduction of new technologies and by integrating these technologies with the methods of conventional marketing techniques, new blends of strategies have been introduced and amongst them is Neuromarketing.

Introduction

When we use neuroscience with market research to gain insights about the response that a customer will have over a product/service/marketing strategy. This is done by using neuroscience methods like brain scanning, imaging and other relevant methods which help the experts to draw a conclusion. As the data gathered through this method will not be biased and will be genuine, it gives accurate metrics to marketers to incline their strategy or marketing methods so that it can be recognized as appropriate and result oriented. fMRI (functional Magnetic Resonance Imaging) is used by most of the experts to get the data. This technique helps experts to know the reason for consumers making certain actions and what triggers it. By this method, products and services will be designed to be more effective and the processes associated will become more efficient. It focuses on the stimulus that is generated due to marketing campaigns and will then focus on the behaviour of the customer. This can help in tracing the stimulus-behaviour of the customer (similar to action-reaction).    

Neuromarketing will be helpful to companies when they are launching a new product/service. It will help them to structure their approach and target the audience strongly for which they developed the product/service.

The focus of neuromarketing is to reduce uncertainty. Neuroscience studies the behaviour and how a decision is made by the brain. This has the ability to guide marketers to develop the consumer expected product/service.

Neuromarketing Tools

Mainly two tools are extensively used which are:

  1. fMRI
  2. EEG

In MRI, blood flow change is measured and tracked by the help of strong magnetic fields whereas, in EEG, sensors are used to track activities of brain cells.

As we can see that both the techniques focus on neuroscience techniques and that is the reason this marketing technique is called neuromarketing. These tools are very costly but there are some ways by which neuromarketing can be practiced efficiently and cost-effectively like facial expression, eye movements, attention, heart rate, respiration rate, etc. These are critical neuroscience signals but are cost-effective approaches which can help companies for developing insights.

Impact of Neuromarketing

Initially, neuromarketing was believed to drive marketing strategy. With many companies contacting neuromarketing firms and trying to get the insights, it was thought to benefit the businesses. But it was found that the data from neuromarketing was the same as the one that can be obtained through the general perception of customers. Later, with the involvement of several technologies and integrating it with neuroscience, it became effective and later businesses again decided to focus on data from neuromarketing. Another reason was the ability of neuromarketing to provide data that can help businesses to build future strategies and they were found to be more accurate as compared to traditional methods. Now, neuromarketing has been adopted and is used by major businesses in the world. 

Future Aspects

As per the interest and changing trends, these are the following ways in which neuromarketing will be used:

  • Market Share determination and Market Segmentation

Neuromarketing will help companies to determine future market share and will help in segmenting population on the basis of the impact of their marketing and identify the group which resonates with their product/service.

  • Managing neural triggers and behaviours

Based on the outcome, experts can provide reasons and help businesses adopt measures to make customers focus on the product and identify its importance and generate behaviour which will be supportive of business.

Conclusion

Neuromarketing has emerged as a different method and a means to understand consumers’ minds and with several new technologies being introduced, it has the potential to become a major part of marketing and strategy. The problem that can occur is the use of neuromarketing to manipulate and then use it to increase profit for either businesses or neuromarketing firms or even both. But an optimistic approach makes us believe that it will increase business at a rapid pace.

References

  • What is Neuromarketing, Roger Dooley, NeuroScience Marketing
  • Neuromarketing: What You Need to Know?, Eben Harrell, Harvard Business Review
Muvendra Kumar Singh

About Muvendra Kumar Singh

Muvendra Kumar Singh is currently pursing MBA from Department of Management Studies, Indian Institute of Technology, Delhi. He is a Marketing Enthusiast and holds a bachelor’s degree in Electrical Engineering. He has authored several articles in Marketing and Operations Management domain and has also co-authored a Research Article in a leading Electrical Technology magazine

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