Neuromarketing: Understanding the Subconscious Drivers > NeuroFocus, The Nielsen Company > By Caroline Winnett, CMO and Andrew Pohlmann, Managing Partner.

1. Neuromarketing:
Understanding the
Subconscious Drivers
Caroline Winnett, CMO
Andrew Pohlmann, Managing Partner
NeuroFocus, The Nielsen Company

2. Today’s NeuroFocus presenters
Caroline Winnett
Chief Marketing Officer, NeuroFocus
Caroline Winnett received her MBA from the Haas School of Business
at the University of California, Berkeley. She went on to found Albany
Associates, providing marketing services to corporate clients.
Subsequently, she was Publisher of Wilderness Press and Chief
Marketing Officer for BoardVantage. She sits on the boards of three
California corporations and is the co-author of Corporate Governance:
Five Easy Pieces.
Andrew Pohlmann
Managing Partner, NeuroFocus
Prior to joining NeuroFocus, Andrew served in various senior leadership
roles at JP Morgan Chase, Washington Mutual, Citigroup and Alticor
specializing in corporate strategy, product development, business
development and marketing. He was a Partner with Meridian
Consulting, and his focus has spanned various industries assisting both
institutional and consumer clients in the Americas, Europe, Asia and the
Middle East. Andrew also helped launch BoardVantage, the leading
web-based communication platform for corporate boards.
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3. Uncovering the subconscious link between
“on-shelf” and “in-basket”
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Neuromarketing
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4. Up to 90% of
purchasing
decisions are
made
subconsciously
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Neuromarketing
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5. 7 dimensions of the shopper experience
INFORMATION
COMMUNITY INTERACTION
SHOPPER
EXPERIENCE
SELF WORTH ENTERTAIN-MENT
SIMPLICITY EDUCATION
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Neuromarketing
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6. Duke/Stanford Study
Subconscious impact on purchase behavior
Duke/Stanford Study:
Can non-conscious activation of a goal influence
buying selection behavior at a later point in time?
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Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,”
Journal of Consumer Research 35, no. 2 (8, 2008): 189-201. Neuromarketing
Copyright © 2011 The Nielsen Company Confidential and proprietary

7. Duke/Stanford Study
“You notice that it is time to throw away your
cotton crew socks and buy new ones.
Consider these two options:”
Nike at Hanes at
$5.25 for 1 pair $6.00 for 2 pairs
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Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,”
Journal of Consumer Research 35, no. 2 (8, 2008): 189-201. Neuromarketing
Copyright © 2011 The Nielsen Company Confidential and proprietary

8. Duke/Stanford Study
Impact on consumer choice
PERCENTAGE CHOOSING THE HIGHER-PRICED NIKE SOCKS
100%
80%
60%
48.0% “… none of the respondents
correctly guessed the general
40%
purpose of the study or
19.2% believed that incidental
20%
exposure to words might have
altered their choice.”
0%
Prestige prime Thrift prime
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Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,”
Journal of Consumer Research 35, no. 2 (8, 2008): 189-201. Neuromarketing
Copyright © 2011 The Nielsen Company Confidential and proprietary

9. Neuroscientific methods to determine
subconscious drivers
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Neuromarketing
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10. up to 64 sensors collect data eye-tracking and
2,000 times every second pupillometry pinpoint
fully capture activity across hot zones
all brain regions
neuroscience
applied to marketing
GSR
(galvanic skin
response) confirms
emotion
high resolution EEG 13
measures brain response
Neuromarketing
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11. ATTENTION
sustained focus and shifts in
focus over time
MEMORY
formation and
strengthening of
connections in long-term
memory
EMOTION
intensity of emotional 14
engagement
Neuromarketing
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12. PERSUASION / PURCHASE INTENT
indicates a likelihood of attitude or
behavior change
market performance
indicators
NOVELTY AWARENESS
indicates something is new indicates something is
and worth remembering understandable and 15
comprehensible
Neuromarketing
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13. Measuring deep subconscious response
STEP 1: STEP 2: STEP 3:
BASELINE POST STIMULI
RESPONSE EXPOSURE TO STIMULI RESPONSE
BASELINE BRAINWAVE P-300 RESONANCE
MEASUREMENT OF MESSAGE CONFIRMS MESSAGE OR
ATTRIBUTES OR BRANDS BRAND ASSOCIATION
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Neuromarketing
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14. Three distinct measurements enhance
traditional measurement
Mobile EEG Video Realistic 3D Testing
On-site Off-site Simulator
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Neuromarketing
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15. NeuroFocus insights for Retail & Shopper
Marketing
BRAND PRODUCT PACKAGING IN-STORE
Testing brand Understanding an Understanding In-store displays,
performance individual’s package design merchandising,
sensory response and performance. and circulars
to a product
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Neuromarketing
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16. Getting to ROI: Case studies
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17. Neuro-design to improve shelf performance
BEFORE AFTER
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18. Brain insights drove new design
Silver foil used only
around edges Clear bottle:
beer is
visible
Lime flavor Harmonious choice of
showcased fonts (two fonts vs. three) Name visible on 21
Uniform image behind text back of bottle
Neuromarketing
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19. Immediate marketplace traction
Lift from introduction of neuro-designed bottle
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-0.2
-0.3
-0.4
-0.5
-0.6
New bottle introduction
-0.7
Share Point change Volume % change 22
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20. Marketplace validation – groundbreaking
study of in-market effectiveness and
pre-test effectiveness
Correlation between in-
market effectiveness and
NeuroFocus metrics is 85%
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21. Practical applications of Neuromarketing
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22. Curves attract. Sharp edges repel.
Deliberate use of spikes to visualize the pain of arthritis 9 25
2010 © NeuroFocus, Inc. All Rights Reserved. Neuromarketing
Confidential and Proprietary.
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23. In-store: Boost purchases by engaging senses
• Multi-sensory
experiences stimulate
many regions of the
brain and greatly
enhance the shopping
experience.
• Look beyond the usual
visual elements to
consider the impact of
touch, taste, smell and
sound.
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24. In-store: Round the edges
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25. Packaging: Connect what’s outside with
what’s inside
Subconscious desire for continuity
linking product at hand with the
place/ingredients/contributors from
which it is made
Brand attributes enhanced by
information — knowledge of source
equates to sense of quality
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Neuromarketing
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26. On-shelf: Place products in environments
reflecting how they will be consumed
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27. Display: Showcase the product
characteristics
Appropriate materials
enhance the characteristics
of the products or displays.
Natural-looking materials
are especially important for
food product displays.
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Neuromarketing
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28. Mirror neuron activation
Women respond strongly to images of people interacting
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29. Key Takeaways
• Neuromarketing can be used to complement traditional research
and marketing approaches
• Understanding subconscious factors can identify hidden and
substantial improvements in the shopper experience
• Engage the senses to improve shopper engagement and purchases
• Align package design with emotional drivers to improve on-shelf
product performance
• Display products in their environment of use to increase purchase
potential
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