Four hundred twelve billion. Do you know what does this number means? This is the amount of money that each company spends on advertising and marketing each year.
John Wannamaker, the creator of the first department store in 1896 said, “I know half the money I spend on Advertising is wasted, I Just don’t know which half.”
Then, with this so much money and effort, why are so many companies are failing? Well, the quote from professor of Harvard Business School, Gerald Zaltman, might tell you why.
“The world has changed, but our methods for understanding consumers have not. We keep relying on familiar but ineffective research techniques and consequently misread consumer’s actions and thoughts. The products we create based on those techniques, simply aren’t connecting with consumers.”
As professor Zaltman says, the sales approaches until today were mostly outdated, and it constantly failed to read the real needs of consumers. Because of that, the need of the new marketing strategies for the new consumers has been raised, and the marketing strategy which is newly created now is ‘neuromarketing’.
Neuromarketing is a word that neuron and marketing is combined. It is a new field of marketing research that studies consumers’ brain response to marketing stimuli to learn why consumers make the decisions they do, and what part of the brain is telling them to do it. 85% of decisions people makes are made by the unconsciousness in people’s brain. People are not making their decisions, their brains are. The problem here is that the company cannot measure the needs or preference of unconsciousness, at least by the old method. Surprisingly, Neuromarketing found a way to measure the reaction of unconsciousness of our brain by these four methods.
First, fMRI stands for functional Magnetic Resonance Imaging. It shows the energetic economy of the brain such as blood oxygenation and glucose combustion and which reflects mental process of the brain. Second, electromyography, EMG, measures the facial muscles’ electrical potential to evaluate reactions to specific advertisement. We can verify whether advertisement is perceived positively since we know which muscles represent specific emotions such as happiness, fear, or anger. Third, electroencephalograph, EEG, measures the frequencies on the scalp that appear due to cortex neurons’ activity according to the stimulus. These frequencies are related to the waves of different length, and we can measure the consumers’ emotions or concentration. Lastly, electrooculography, EOG, measures the electrical potential difference between two sides of the eyeball. It measures the light reflected by...