buyology final

8/8/2019 Buyology Final

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BUY.OLOGYBUY.OLOGY

Group 3Aran Kim, Benny Hung

Blanding and CommunicationBlanding and Communication

We hereby certify that the following piece of work complies with the Own Work

Declaration form already issued and with the Universityd s Rules and Regulations relating to

plagiarism and collusion, as listed in the Essential Information for Students and the MBA

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Candidate No: 9378, 9418



What is Branding?

Products are made in the factory,but brands are created in the mind

Walter Landor



How Does Branding W ork in Market?

The Different Reaction between Group A and Group B?



Where is the problem of Traditional Marketing?

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IDENTITYBrand messageto makepeople buy

IMAGEConsumersperceptionon brand

UnconsciousGAP

Lack of awareness that there is a certain Unconscious Gapbetween what company want to sell and what derives consumer to buy



1. It is a Very Rational Approach2. Relying on the results of conventional market research and focus

groups,3. Starting asking a familiar question for consumers,

³Why they buy a product?´

4. Traditional marketers may believeµWe know why we do the things we do¶

5. Huge expenditure on Market Research in US. More than $12 Billion(2007). Additionally, packaging and displays, TV commercials,Online banner ads, and celebrity endorsements carry $117 billion.

So, the new products in market were

successful...?

Traditional Marketing Method



T raditional Marketing Scorecard

Snapshot of New ProductsSnapshot of New Products

in Market in Market Results wereResults were

1. Over 156,000 new products

debuted in stores2. One new product release

every 3 minutes.

3. 21,000 new brands are

introduced worldwide

per year

1. All but a few of them havevanished from the shelf a yearlater

2. 52 percent of all new brands fail

3. 75 percent of individual productsfail.

4. Eight out of every ten productslaunched in the US are destinedto fail

5. It fails within the first 3 months

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Now, Its Time to Think about Neuromarketing

Because 90% of our consumer purchasing behavior is unconscious



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What Makes Consumers Buy?

Irrational Minds

CulturalBiases

Tradition

Consumers consistently engage in behavior but they have no logical explanationand rely on irrational minds

News

ChildhoodMemories

NeedsViolence

Wellness

Daily-Stressed out

Social Position

Rational

E motions

History

Hidden Preference

Irrational Dreams



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ConsumersConsumersDecisionDecision

CenterCenter

TraditionalMarketing

T raditional Marketing vs. N eurom arketing

Neuromarketing



Marketing $ forTV Features

2006:$3.36 billion

2007:$4.38 billion



American IdolCommercial YouTube Video



PRODUCT PLACEMENT

R ESULTS

Consumers memory of product is

most relevant, reliable measure of

ad effectiveness.

Branded logos achieved greater

recognitionthan unbranded logos

Coke > Cingular > Ford

Coke was shown during 60% running

time

Ford only in commercials, did not

intrudeSubjects remembered Ford less than

before study

Double-Barrel Effect increase memory

of featured

brand, while weakening our ability

to remember

other brands



SUBLIMINALMESSAGING

Hypnotic codes that do not show

brands, butdeliver messages that affect the

subconscious

People let their guard down

Create stimuli powerful enough to replacetraditional advertising

CASE 2 hrs smoking abstain

First shown subliminalimages, then brandedcigarette products

fMRI scans to measureresponse and activity in

brains reward zone

RESULTS

Images > branded cigarette products Subliminal Messages = Brand Value



SOMATIC MARKERS

50% Purchases made

spontaneously

Our previous experiencesof reward & punishmentmake mental bookmarks



U ncover C onsumers H idd en Mind U ncover C onsumers H idd en Mind

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Our consumers just want to talk rationally,Never say their hidden mind!



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RationalBehavior

Opinion

Preference

TVAdsCampaign

Needs

Price

IrrationalIrrationalBuy ButtonBuy Button

Neuromarketing

Emotions Irrational Minds

Hidden Preference

Unconscious Desires

Irrational Dreams

PrioritiesPriorities

C onclusion:N eurom arketing



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Our brain influences our buying behaviorThat is, unconscious mind derives consumers to buy the productThe more stress consumers are under in the world,

The more they are influenced by neuromarketing

K ey Summ ar y & Evaluation

To verify Lindstoms claims, further substantial experiments are required.- Lack of the number of subjects to prove his theory- Less logics with many assumptionsto link between the experiment results and consumers behaviors

Feasibility to apply his method into practical business environment- expensive costs for medical instruments, new analytical skills, etc-Neuromarketing still leaves lots of questions about How to do it in practice, not in hospital.

There are some key points to be taken

However..



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The End

buyology final

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