Tuesday, November 30, 2010

Marketing Brain!

In 1980s Pepsi started a campaign called Pepsi challenge where people were given a sip of Pepsi and coke. Pepsi won the challenge but the results from the challenge do not show the market reality where Coke has captured most of the market share in United States. A neuroscientist Read Montague did the study on the Pepsi campaign. He found out that if people were not told which drink they are having, half of them preferred Pepsi. But the interesting thing was when consumers were told which drink, three fourth of them preferred coke. This is due to the image of coke customers have in their mind about coke.  Taste of the product became secondary thing. According to Montague coke had affect on medial prefrontal cortex, which controls the higher thinking in the brain.

Neuromarketing has been used in political ad campaigns. Famous in Political advertising world, Fred Davis is a firm believer in neuromarketing. He uses neuromarketign as basis for ads. His list of clients includes George Bush, John McCain and the latest is Cristin O’donnalld, who ran Delaware senate elections and her ad campaign caught the attention of everyone.  Brian Boquist, an Oregon Republican Senate also admitted using neuromareting techniques in his campaign. Republicans Oregon Republican State Senator, Brian Boquist also admits to having employed political neuromarketing in his campaigns. In recent midterm elections republican ads were appealing to the emotions of the voters. Was it a reason that republicans won the election? May be not but it may have made some difference. May be it is difficult to know if the politicians are using these techniques. No politician will accept the fact he is using influencing techniques to get votes. Using these techniques is not wrong in my view because the results will give better picture for the parties about their campaigns. It will be easy for the companies to know if particular ad grasps the attention of the customers.

Does it seduce them enough to buy particular product or watch the movie?  Is it novelty to them? Are they aware of the product? Are some of the few questions marketing firms always have been taking into account, But Neuromarketing provides enough data by which big companies have better understanding of market and customers. Companies do need numbers to rely on since amount of money they put into marketing and advertising campaigns is huge. I sometimes get confused when I go to any big store for shopping; neuromarketing techniques used by companies may make it easy for me, because companies will know better what I want than myself.

Sources

Sunday, November 28, 2010

Boosting your business!

Just a few weeks back founder of Facebook, Mark Zuckerberg announced a new mobile platform which will let local merchants offer promotional deals to customers who use the new places feature on Facebook. Will it help me? Yeah! Suppose if I am walking down the street and decide to eat pizza this application will show me not only the places but also the offers and deals nearby pizza places have. This will help me save a few bucks. I won’t mind that for sure. GAP, a apparel retail store gave away pair of jeans to customers who checked in with the facebook application. The sales of the company have gone up since then. Social media is about C’s of marketing, connections and convenience of the customers. As internet usage has changed from desktops to pocket PCs and mobile phones, social media strategies have become must in today’s business world. Social media makes it easy for businesses to get the message out to the customers and get feedback from the consumers and build customer relations t low cost.  Whenever I have to buy something, I do read reviews and discussion forums about the product and the company.

Social media can make it easy to spread the world for small businesses but it takes a lot of resources to keep the consumers engaged all the time. I have come across the facebook pages or blogs which have not been updated or there have been no activity since long time. My perception towards those companies has changed dramatically due to this. It is kind of mandatory to reply to queries and comments of all the users. Therefore it is really important to keep up the pace. An interesting comment by Anthony Miyazakiprofessor of marketing at Florida International University about the time commitment businesses have to make, to take care of thousands of contacts. As the networking makes it easy to share and spread the word faster, it can backfire when negative news spreads faster it is impossible to control social media in these cases. Since it is about customer behavior I do believe there is certain amount of risk involved.

There are few concerns, but businesses can not afford not to be part of these advances in marketing. After what happened to Barns and Nobles ignoring Amazon and many more such examples. Also competitors engaging into these activities makes it even more necessary for businesses to be a part of it. I believe that these techniques are important for small businesses to compete with big giants and engage and form a core group of customers (target) who will make purchase and spread the word.

Peace.
Abhijeet

Source: 
Wall Street Journal