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Neuro Marketing

Neuro Marketing. The new revolution in Marketing knowledge. The starting point. “ Their’s a sucker born in every medial prefrontal cortex” New York Times 2003. Dr.Read Montague of Baylor College of Medicine used fMRI while doing the Pepsi challenge. Top down approach.

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Neuro Marketing

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  1. Neuro Marketing The new revolution in Marketing knowledge

  2. The starting point “ Their’s a sucker born in every medial prefrontal cortex” New York Times 2003

  3. Dr.Read Montague of Baylor College of Medicine used fMRI while doing the Pepsi challenge

  4. Top down approach PET, fMRI, Transcranial Magnetic Stimulation

  5. Fruits of a long journey

  6. 90% of the new product launches fail

  7. “50% of the advertising expenditure is wasted, but I do not know which 50%”

  8. Marketing loosing its importance “All that marketers want from CEOs is more money to spend” Prof. Nirmalya Kumar, LBS, Marketing as Strategy

  9. Mr.Karsanbhai Patel made me eat my words

  10. The root of the problem has to be more fundamental

  11. What ails marketing?

  12. Scientific basis for marketing theory Main cause of marketing failure is the inability to understand the consumer behaviour

  13. Scientific basis for marketing theory Unlike other sciences, there are no fundamental theories in psychology to decipher human behaviour

  14. Fundamental theories Quantum mechanics and general relativity are true throughout the universe. Darwin’s theory of evolution and DNA based genetics apply to all organisms that have ever lived on earth.

  15. “ Psychology on the other hand has been characterized by an embarrassingly long sequence of ‘theories’, each really nothing more than a passing fad that rarely outlived the person who proposed it” V.S ramachandran, J.J Smythies, Uni. Of California

  16. The incomplete science! Psychoanalysis although it had tremendous influence in psychology, it had little influence in marketing Freudian Fraud by E.Fuller Torrey

  17. The incomplete science! Behaviorism propagated by B.F. Skinner Ivan Pavlov etc had huge influence on marketing

  18. The incomplete science! Behaviorism which virtually denied the existence of mind, took a beating with the article written Noam Chomsky, an MIT professor and linguist ( language and problems of knowledge)

  19. Scientific basis for marketing theory Cognitive science has been influenced by studies on Artificial Intelligence too had tremendous influence on marketing

  20. Scientific basis for marketing theory Cognitive science as much as AI has huge limitations. More so its inability to consider emotions and its role in human behaviour

  21. Scientific basis for marketing theory You, your joys and your sorrows, your memories and your ambitions, your sense of personal identity and free will, are in fact no more than the behavior of a vast assembly of nerve cells and their associated molecules Francis Crick, The Astonishing Hypothesis

  22. Neurology will help build a scientific foundation for marketing theories

  23. More than 90% of what we know about the brain has been discovered in the last 10-12 years

  24. The stagnant knowledge base of the marketing field

  25. Many new developments in the field of neurology, sociology, anthropology, psychology, etc But very little of that has permeated into the world of marketing and advertising.

  26. Marketing is like Astrology. It is a quasi science. It is based more on past practices.

  27. Even Ries and Trout have used only logic of past practices and not scientific facts to develop the theory of positioning

  28. Who are the best marketers in the world? Politicians God men/God women Organised Religions

  29. The conman at Chennai central station

  30. Heuristics The science of fast and frugal decision making

  31. The Mother turkey and the pole cat

  32. Civilizations advances by extending the number of operations we can perform without thinking about them British philosopher Alfred North Whitehead

  33. Daniel Kahnemann,a psychologist wins the Nobel prize for Economics in 2002

  34. Harvard University introduces a course in Behavioural Economics

  35. Economist predicts that Behavioural Economics is the new trend in management consultancy

  36. Rational man, the fundamental assumption of Classical Economics is under scrutiny

  37. Most of the Marketing theories are influenced greatly by the classical economic theories and are based on the assumption that human beings are rational

  38. Great amount of Market Research, Media planning hides their fundamental flaws behind the correctness of mathematical models

  39. Even the world of finance and project management falls prey to the workings of the brain

  40. What is the length of Nile?

  41. Over confidence

  42. Huge implications in business forecasting, the insurance sector

  43. Reciprocation rule Reason behind mother’s advice to ‘good girls’

  44. Reciprocation rule We should try to repay in kind what ever another person has provided us.

  45. Contrast Principle If two things are presented one after another, and if the second item is fairly different from the first, we will tend to see it more different than it actually is.

  46. Rejection-then-retreat

  47. Commitment and Consistency Once we have made a choice or taken a stand, we will encounter personal and interpersonal pressures to behave consistently with that commitment

  48. The more effort that goes into a commitment, the greater is its ability to influence the attitudes of the person who made it

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