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Neuromarketing, marketing employing psychoanalysis techniques, is a recent method utilized to understand consumers. The concept of neuromarketing investigates the non-conscious processing of information in consumers brains. A greater understanding of human cognition and behaviour has led to the integration of biological and social sciences. The concept of neuromarketing combines marketing, psychology and neuroscience. Consumer behaviour can now be investigated at both an individuals conscious choices and underlying brain activity levels.
Collecting information on how the target market would respond to a product is the first step involved for organisations advertizing a product. Traditional methods of this research include focus groups or sizeable surveys used to evaluate features of the proposed product. This method of research fails to gain the consumer’s non-conscious emotions. Neuropsychology allows insight into differences seen in individuals by three non-invasive methods of measuring brain activity. Based on the proposed neuromarketing concept of decision processing, consumer buying decisions rely on either System 1 or System 2 processing or Plato’s two horses and a chariot. System 1 thinking was intuitive, unconscious, effortless, fast and emotional. In contrast, decisions driven by System 2 were deliberate, conscious reasoning, slow and effortful.
Marketers use segmentation and positioning to divide the market and choose the segments they will use to position themselves to strategically target their ad. Using the neurological differences between genders can alter target market and segment. Research has shown that structural differences between the male and female brain has strong influence on their respective decisions as consumers. Young people represent a high share of buyers in many industries including the electronics market and fashion industry. Due to the development of brain maturation, adolescents are subject to strong emotional reaction, although can have difficulty identifying the emotional expression of others. Marketers can use this neural information to target adolescents with shorter, attention grabbing messages, and ones that can influence their emotional expressions clearly.
E Television amongst others have used neuromarketing research services to measure consumer reactions to their advertisements or products. The findings made by Crespo-Pereira, Martínez-Fernández and Campos-Freire determine that around a dozen public broadcasters in Europe already apply visual neuromarketing strategies as an innovative tool to test and design entertainment products, commercial blocks and competitiveness. Many of the claims of companies that sell neuromarketing services make are not based on actual neuroscience and have been debunked as hype, and have been described as part of a fad of pseudoscientific “neuroscientism” in popular culture. Some consumer advocate organizations, such as the Center for Digital Democracy, have criticized neuromarketing’s potentially invasive technology. Advocates nonetheless argue that society benefits from neuromarketing innovations. German neurobiologist Kai-Markus Müller promotes a neuromarketing variant, “neuropricing”, that uses data from brain scans to help companies identify the highest prices consumers will pay. Müller says “everyone wins with this method,” because brain-tested prices enable firms to increase profits, thus increasing prospects for survival during economic recession.