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Tag: Best Marketing Practices

  • Performance Marketing: An Effective, Results-Driven Strategy for Your Brand

    The article is contributed by Vatsal Rajgor, Co-Founder & CEO, DigiMaze.

    Every brand today wants to establish a strong digital presence and engage with viewers. Given the fact that viewers today are spending more time than ever on social media, there is a very strong business case for brands to use the digital arena as a powerful marketing tool. Even those brands that have a decent digital presence are always aiming to extend their reach and be in contact with their target base.

    The important thing to note is that the digital medium is democratic. It offers a level playing field and is extremely effective once the correct strategies are applied. Appropriate and effective digital strategies, when used, are known to impact the behaviours of the consumers and the purchase decisions they finally make. In our day and age, performance marketing is the perfect digital strategy that can enable this.

    According to the IAMAI- Kantar ICUBE 2020 report, there will be an increase of 45% in active internet users by 2025, i.e., from 622 million in 2020 to 900 million in 2025. These numbers act as an indication of the scope of the profits that can be reaped by brands that have a strong online presence. Here is where performance marketing comes to the rescue. It’s not just a popular buzzword. Performance marketing is on the rise and it allows marketers to measure and optimize key performance indicators. It points out the areas where the marketing effort is lacking and closes those loopholes to help craft an effective digital marketing strategy.

    Performance Marketing – Helping Build Stronger, Goal-Oriented Campaigns

    Performance marketing, powered by data, is inherently goal-driven so brands can measure their ROI. With performance marketing, Once a brand has a clear set of goals that they want its campaign to achieve, can use performance marketing to not just achieve these goals but also measure the probability of success. This is not magic. It’s pure data science. A lot of the decisions made are based on the nuggets of insights from the customer journey and the behaviours displayed by the consumers to create a final plan for the brand.

    Performance marketing gives marketers the advantage of collecting and analysing real-time data to curate a framework to target the intended customers and get the desired results. Insights derived from data become critical because they lay the foundation for a brand’s campaign. This marketing approach is a win-win for both the business owner and the publisher as it allows them to focus and build up their campaigns in order to garner a high ROI that is calculable to an accurate degree.

    Forms of Performance Marketing

    Performance marketing uses various channels to produce the results, and they are:

    Native Advertising

    Native advertising is a channel of advertising which camouflages itself as regular content. Viewers don’t even get to know that it is a paid form of advertisement. It is usually opted for when one wants to combat the issue of advertisement blocking and banner blindness. As per the reports, 42.7% of the internet users in the world use an ad blocker. In such situations, native advertisements come to the rescue as consumers look at native ads 53% more than display ads and have purchase intent is 18% more for a native ad.

    Sponsored advertising is a type of native advertising. The difference between the two is that sponsored advertising is not an ad but is a piece of content that is usually long-form and is about a brand. It can be an article or a video on a media publisher’s site. Sponsored content aims to engage the audience by either entertaining them or educating them. The content needs to mention that it is sponsored or promoted so that people are aware and don’t think otherwise. Sponsored ads help brands reach new customers, grow their following, and increase their conversion rate among other things.

    Social Media Advertising

    Social media advertising is the bread and butter as some brands mainly use this form of advertising over others. In this form of advertising, paid ad campaigns are launched on social media platforms like Facebook, Instagram, and others to reach the intended audience. According to the CMO survey, brands will double their budgets for social media advertising by 2023. This is an important form of advertising because, as of January 2022, there were 467 million social media users in India. These numbers show us what kind of reach a brand can have if they were to use this form of marketing.

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    Search Engine Marketing (SEM)

    Search engine marketing is paid marketing, also known as pay-per-click (PPC). This strategy is majorly used to increase the visibility of a website on the search engine results page (SERP). In this, the advertisers only pay for impressions that result in visitors. This is an efficient form as one only pays for the results. The results are quicker with SEM, and it is non-intrusive in nature.

    Affiliate Marketing

    Affiliate marketing is a subset of performance marketing and includes techniques like email marketing, influencer marketing, and many more. In this form of marketing, the affiliate makes a commission when they promote another person’s products or a company’s products. Performance marketing is affiliate marketing with other additions in its mix at a larger scale.

    Conclusion

    Like any other form of marketing activity, performance marketing also has its pros and cons. Hence, brands need to have flexible targets as a business, because setting rigid goals could hamper outcomes. While performance marketing is undertaken to achieve desired goals and paying only when results are achieved, companies need to have a margin of error. If anything unexpected were to happen, it is all accounted for. Performance marketing can be an effective tool in the arsenal of brands and, if used to its full potential, it can do wonders. It is a cost-efficient marketing strategy, where the performance of a marketing campaign, on any digital platform, can be tracked. Performance marketing is transparent in nature, and this essential feature is not found in other forms of marketing.

    For any company, big, mid-sized or small, performance marketing is essential when you look at the digital frontier. It’s here to stay, and if used correctly, it can show results that are calculable, hence is a boon for any brand to make it a part of their digital strategy.

  • Email Marketing vs Social Media Marketing | What’s Best for Your Business?

    Marketers adopt countless ways of marketing and creating brand awareness for businesses. Two of the most common and effective methods of achieving marketing goals are social media marketing and email marketing. Both are wondrous in their ways. According to Statista, there were around 4.1 billion email users and around 3.78 billion social media users worldwide as of 2021. This number forms around 48% of the total world’s population.

    Social media is gaining popularity day by day. But, at the same time, we can’t oversee the influence of emails on its users for trade. Now the question is which is better? Which of the two can have a greater impact on the target audience? You will get the answer to all of your queries in this article. So, let’s start this battle of Social Media Marketing vs Email Marketing.

    What is Email Marketing?
    What is Social Media Marketing?
    Social Media Marketing vs Email Marketing
    How Can You Effectively Combine Email and Social Media Marketing?

    What is Email Marketing?

    Email marketing is a kind of digital marketing that uses emails to create brand awareness. It puts forward the latest services, products, offerings, discounts, and everything among the users to make them aware and remember the brand. Some of the benefits of email marketing include:

    • It assists in building and enhancing the customer experience.
    • It makes for a profitable strategy to reach the audience emotionally through personalized emails.
    • One can save a lot of time in this marketing strategy via its automation feature.
    • It is measurable, hence one can measure the growth of a marketing campaign via web analytics in order to get accurate data.
    Number of email users worldwide from 2017 to 2022
    Number of email users worldwide from 2017 to 2022

    Industries Benefited from Email Marketing

    A Snovio labs study reveals that 72% of customers belonging to business communication prefer emails over social media. Here are some of the industries that enjoy the benefits of email marketing:

    Automotive

    This is the foremost industry that boosts its sales via email marketing. With email marketing, it becomes easy to track customers’ choices. One can obtain a huge amount of profit in a single purchase. Email marketing is used by the industry to share about new models, sell insurances, and more. Thus, the automotive industry is one of the most benefitted from email marketing.

    Pharmaceutical

    A survey in which 4000 physicians took part revealed that only one-third of physicians use social media channels. Doctors usually don’t spend their time on social media, and that’s why the pharmaceutical sector performs its marketing via emails.

    The following are some of the examples of top companies that use email marketing for their success:

    • Airbnb
    • Uber
    • Bonobos
    • Cook Smarts
    • Kate Spade
    • Litmus
    • BuzzFeed
    • PayPal
    • Drift

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    What is Social Media Marketing?

    Social media marketing refers to the promotion of services and products by using social media platforms. It is the most exciting and powerful way to reach new targeted customers from all over the globe. Some of the benefits of social media marketing include:

    • One can connect with the audience related to the business worldwide.
    • By creating effective posts and stories, one can drive more sales to one’s website.
    • It helps convert the new audiences into customers, thus increasing conversion rates.
    • It leads to enhanced search engine rankings, which ultimately contributes to a brand’s popularity.
    Number of social network users worldwide from 2017 to 2022
    Number of social network users worldwide from 2017 to 2022

    Industries Benefited from Social Media Marketing

    According to a study published on BarnRaisers, around 92% of total customers trust social media instead of any other form of advertising. Here are the industries that benefited the most from social media marketing:

    Entertainment

    The entertainment industry has the biggest share of social media marketing in comparison to any other industry. As per a report, 63.2℅ of all the posts on Facebook belong to the entertainment sector. These sectors include telecom, retail, financial services, beverage, and food. Instagram is one of the best examples of entertainment sections generating a handsome revenue.

    Retail

    The retail sector comes in the second position after entertainment which has benefited from social media marketing. Live sessions or chatboxes on Instagram or Facebook are famous examples. It also assists in displaying features of products and services which is great for the retail startups in today’s time. Moreover, the positive feedback from the customers on social media works like word of mouth which attracts more customers.

    Real Estate

    A study according to a real estate website states that 44% of customers become successful in obtaining new clients for their properties from social media. Brokers, agents, property managers, and developers all belonging to the real estate industry, utilize social media for their marketing. With social media, it becomes pretty easy to showcase the features of properties in dynamic ways.

    The following are some of the examples of top companies that use social media marketing for their success:

    • GoPro
    • Nike
    • Spotify
    • Wayfair
    • Pop-Tarts
    • National Geographic
    • Starbucks
    • Dove
    • Wendy’s

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    Social Media Marketing vs Email Marketing

    In the following points, we will discuss which is better among email and social media marketing from different perspectives:

    Which is Effective in Reaching The Target Audience?

    According to OptiMonster 2020, around 99% of email users check their mailbox every day. Some people even check their emails around 20 times in a single day.
    On the other hand, the community that opens up social media first thing in the morning is more likely to use it for personal purposes. So, basically during the workdays, people are more likely to check their emails first rather than their social media.

    When it comes to targeting, every business wants to capture its target market to be successful. When you indulge your business in paid social media advertisements, you get to select who sees it to a certain extent. However, in the case of organic advertisements, you do not get control over who sees it and who doesn’t. On contrary, with email marketing, you can segment the entire list of your target audience to gain the best results. As emails will help you reach the target audience better, email marketing seems to be a winner here.

    Which Has The Better Return On Investment (ROI)?

    The return on investment(ROI) refers to the measurement of profit after some investment or comparison of revenue of various investments at a particular time. According to DMA 2019, one can get a return of around £42 for just a pound worth of investment in email marketing.

    On the other hand, as per the study published in Forbes, around 6% of marketers could execute customer relationship management on social media, while 56% of them were still in the planning stage of how to achieve it. The fact is that social media ROI can be fruitful only if you are super-viral among a few channels. So, the chances of obtaining satisfactory returns decrease on social media. Hence, email marketing is the winner in this case.

    Which Can Attract New Audiences Better?

    Although email marketing has a huge user base as compared to social media, when it comes to reaching new audiences, it is hard to acquire them through it. This is because social media has no limits. You must have seen several channels, specifically Instagram and Facebook with a lot of supporters, this makes it a great source for new audience attraction.

    If you provide insightful and useful services and products to the consumers, then they will share them on their social media which will directly lead to increased traffic on your brand channels. You can achieve wonders in your business once your posts can start getting viral. Creating more sponsored advertisements for your products is another way to reach new audiences. Thus, this is the field where social media marketing seems to win the battle.

    How Can You Effectively Combine Email and Social Media Marketing?

    Impact of social media on email marketing in India in 2021
    Impact of social media on email marketing in India in 2021

    Now when both kinds of marketing have their pros and cons, what if we combine both and extract the only pros from these forms of marketing. So, here are how you can effectively combine email and social  media marketing for your business’s success:

    • Reuse the content on both channels. It will save your time and is also cost-effective.
    • Generate a similar content calendar for both the channels and adopt a parallel content strategy for both platforms.
    • Use social media to collect emails from your brand’s audience. Add call to action buttons to the social media posts which further lead the user to enter an email so that the brand can proceed with email marketing.
    • Organize engaging contests or giveaways on social media and collect emails from users. For instance, you can ask the users to provide a tagline for your brand and in return, you can give some prize. This will intact your brand in users’ minds and create audience engagement too while participating in contests.
    • While getting positive responses from social media about the channels, you can send feedback in emails that will lead you to convert your audience into customers.

    Conclusion

    Here the battle between social media marketing and email marketing ends. What we observed is that the preference for email marketing is still alive from various perspectives. But we can’t oversee the gaining popularity of social media day by day where around 3.96 billion users reside.

    So, the best thing for businesses is to combine their social media and emails and market their products and services accordingly to maximize their chances of success.

    FAQs

    What is the difference between email marketing and social media marketing?

    Email marketing focuses on customer relationship strengthening whereas social media is more focused on attracting new potential customers.

    Is email marketing better than social media marketing?

    As per overall performance, email marketing does perform better than social media marketing due to the huge amount of email users and better opening rate.

    What are the advantages of email marketing?

    Advantages of email marketing include:

    • Improving Sales
    • Collecting feedback
    • Reaching the right people at the right time
    • Traffic generation for your website
    • Increasing leads

    Which is the biggest social media platform for business?

    Facebook with over 2.9 billion users is the biggest social media platform for business.

  • Risks and Rewards of an Invite-Only Marketing Strategy

    You must have heard of the popular marketing strategy called “invite-only”. In the invite only marketing strategy, new users can join your website only when they are invited by any current users on the site. Invite only events can be very risky as you are launching and not letting everyone use your product. Because you bet on the fact that people will remember you and come back later.

    The invite only strategy is generally done with the goal of getting early feedback to prepare for a later marketing launch. Some popular invite only platform were Facebook which was limited to Harvard students only, Quora to influencers and Gmail with their Google+ social network. To date, Dribbble, Behance, Clubhouse are among several other invite only platforms.

    One such example is Pinterest. When Pinterest was first getting started, it was among the few invite only websites but allowed users to request an invitation if they wanted to join. After requesting an invitation, Pinterest sent out an email to prospective users explaining that the waiting list was quite long, but that eventually, they would be accepted to join.

    Not only internet-based startups but also China-based Mobile Phone company Oneplus launched its new products with the OnePlus invite only strategy.  

    “The reason we created an invite-only system is that we want to control the risks the best we can, to control production, quality, quantity. It’s not like normal marketing; if you have a good product, you’ll want to introduce it to a friend. So the OnePlus 2 is like a product based on friends saying, ‘Come on, that’s good, go buy it.’ This approach throws tradition away.” told founder Pete Lau.

    However invite-only strategy doesn’t work all the time. Simply put, an invite-only marketing strategy is a double-edged sword. With many benefits, it also comes with disadvantages and could backfire if not done properly.

    Advantages of Invite-Only Marketing Strategy
    Disadvantages of Invite-Only Marketing Strategy

    Invite-only Marketing Strategy

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    Advantages of Invite-Only Marketing Strategy

    There are many benefits of launching an invite-only platform, the main being that it makes your startup brand itself as being exclusive, top quality, private, etc. The invite only strategy makes the users feel that they’re a part of something special.

    Get Feedback

    Getting Customer Feedback in invite-only Marketing Strategy
    Getting Customer Feedback in invite-only Marketing Strategy

    The invite-only marketing strategy can be effective when it comes to improving a product or service. Users acquired in beta stages are a lot more engaged with the service and also help in future development. These are the users who are willing to give you appropriate feedback on the application as well as to monitor their usage to test whether you have created a product that people want and achieve product fit.

    Create a Buzz

    Scarcity has a nice effect on increasing demand. With the help of an invite-only marketing strategy, you might get your product in front of more eyeballs than otherwise because they feel a stronger desire to see it. The invitation strategy sparks the interest and curiosity of outsiders and drives product hype.

    Filter Spam Users

    Invite only apps helps you to make sure these are your authentic users. Your first few users will be very important in helping you to determine your product roadmap. Especially useful if you have limited resources and can only work on certain important features. This will help you prioritizing and pivot quickly if needed. So instead of focusing your attention on the content, you can more focus on the product.

    Create a Degree of connectivity

    Especially if you are launching something with a social feature it allows your invitees to send out their own invitations to their network, the new users will already have a connection on the network. A brand or app launch invitation will help foster in-application social connections between groups of pre-existing friends.

    Invite-only marketing strategy works quite well for website launch. A website launch invitation helps in getting users which may not have come otherwise – new members who are referred by others tend to give products a longer trial run and have a higher likelihood of converting into long-term users than any other means of marketing.

    A product launch invitation email is a popular way of limiting the number of people at launch events, especially during the time of the Covid 19 pandemic.

    Disadvantages of Invite-Only Marketing Strategy

    The platform using Invite Only Marketing Strategy
    The platform using Invite Only Marketing Strategy

    There might be a severe disadvantage of the invite only marketing strategy. The worst is that even your early users will leave and forget your site. If you invite a bunch of people and they all join but post low-quality information or just don’t post at all, they won’t find it interesting to ask their friends to join too.

    Negative Buzz can Kill your Startup

    An invite only strategy will lead to the negative buzz that can quickly damage the product reputation and stop new users from accepting invites and steer others away from inviting friends to use the product. One way to combat invite only marketing strategy is to game the system – populate the site with your own content or relevant curated content, have your friends and associates participate, call in favours in the form of engaging posts, etc.

    Fewer Users

    Why would you like to limit the number of users who can sign up?  Let it be completely open and available to all and find other ways, such as using algorithms and user feedback systems, to deal with low-quality users and their low-quality content. After all, what proof is there invite-only websites that produce all the potential benefits I’ve speculated on above?

    Less Feedback and Sharing

    More users will also result in more feedback and more word of mouth. By invite only, you restrict people from using your product and they would not know more about you even if they want to.

    It’s Harder

    Invite only means more programming than not going invitation only, all other things being equal. Do you really want to spend any of your valuable startup time creating a user-management system that allows you to specify who can and can’t sign up?

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    Do let us know if you going for an invite-only marketing strategy for your startup!

    FAQs

    What does invite-only marketing strategy mean?

    In the invite-only marketing strategy, new users can join your website only when they are invited by any current users on the site.

    What are some invite-only platforms?

    Some apps using Invite-Only marketing strategy are:

    • Dribble
    • Behance

    Was Facebook invite-only?

    Yes, initially in 2004 when Facebook was launched it was invite-only and available to only Harvard students before expanding to other Ivy Leagues colleges and then gradually anyone could sign up to the website. This invite-only marketing strategy helped Facebook grow in its initial stages.

    Is Clubhouse invite-only?

    Clubhouse is no more Invite-Only App since July 2021. Earlier it used Invite Only marketing strategy.

    Which startups should use invite only marketing strategy?

    Invite only marketing strategy works well with luxury brands.

  • Data-Driven Marketing | How to Use Data-Driven Marketing Process?

    Today, data is said to be the new currency. Big businesses believe data is what fuels monetary stability. That’s why many companies give more preference and energy to collecting the data, even if that makes them stay at a loss for a short period. Likewise, collecting data has become more of a tradition than a process. Because it is almost everywhere to be found. especially in the marketing of businesses.

    Now, this strikes the question, what exactly is data-driven marketing?

    Regardless of coming under the limelight only in the past few decades, data-driven marketing has become an integral part of the functioning of the world. It has refined marketing, making it more cost-optimized, which further proves that the power of data is undeniably crucial.

    As the name suggests, “data-driven” marketing uses data to promote growth and make the right use of resources. Here, it focuses on using the collected data to improve campaign performance. In simpler words, it means justifying every penny spent on marketing by spending marketing expenditure in such a way that it only focuses on the areas that bring in growth.

    How did Data-Driven Marketing start?
    Why is Data-Driven Marketing better than the traditional methods of marketing?
    Hurdles with the Data-Driven Marketing Process
    How to do Data-Driven Marketing?

    What is Data-Driven Marketing?

    How did Data-Driven Marketing start?

    Data-driven marketing was used in the olden times, even before the existence of computers and the internet. Amusing, right? The only different thing was the form of the data and the means of collecting those data.

    People collected data by going door to door, enquiring about the product while tallying and ticking marks. With the help of the internet, the same goal is fulfilled. The same thing is done, but in a way that is hassle-free and does not require going door to door. It has always been a primitive custom; we upgraded it as we upgraded ourselves.

    The present methodology of the entire process attains the same goal, but the customers are filtered as, only specific customers are targeted according to their line of interest filtering out unwanted, irrelevant audiences, unlike the older times.

    Why is Data-Driven Marketing better than the traditional methods of marketing?

    This type of focus marketing was first initiated in the early 1970s and 80s. The power of collecting data for carrying out marketing procedures for a specific product was newly introduced, and people were amused by how powerful the right database is, for a fruitful and efficient personalized marketing strategy. Ever since then, customer communication has become easier with each passing decade.

    “Valid customer data holds the balance sheets of the company”. When we talk about efficient marketing strategy, personalized engagement comes into the picture; this leads to the promotion of the company brand, which is done directly to the correct crowd; this hinders from wastage of funds and increases the return on investment (ROI).

    It eradicates the unsure thoughts and guesswork from the process. One can get a clear idea of customer demographics, choices, and ideas in the customer’s head. Following this pathway, correct and refined customer segments can be captured and targeted.

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    Hurdles with the Data-Driven Marketing Process

    Along with the heap of benefits, the process also comes with many challenging situations at each step of the process. Check out some obstacles that might come your way if you opt for a data-driven marketing process:

    Collection of the right data

    It is highly risky to depend on a single or few sources of data alone. Verification of each piece of data from multiple media is necessary to prove the authenticity of the piece and validate it. One needs the expertise and experience to filter out the most relevant data. Without this as a basis, the chances of making cognitive errors and wasting resources increase exponentially. This is the most important part of the process.

    Reaching the right target

    Having very elaborate data of interest can do more harm than good to the process. The advertisement tends to pop up mostly on the screens of dummy customers, meaning people who have no desire for the description of your data and will just scroll past it. Hence, decreasing your click-through rate (CTR). Overall, this decreases the efficiency of your procedure and lowers the return on investment(ROI).

    Ready, steady, action!

    There is an urge for an emergency while implementing this step: taking the ultimate step and giving the process meaning. It is very important to hit the iron while it’s hot. The quick-changing temptations of the customer influence data-driven marketers. It becomes very essential to keep track of customer preferences and take action immediately and effectively before the data becomes obsolete.

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    How to do Data-Driven Marketing?

    If you are thinking of revamping your marketing process and making it data-driven, then here are some basic things you need to focus on:

    Collection of data

    Collecting data from available sources is a difficult but necessary phase in the process. It provides a location for monitoring good decision-making and successful execution in a variety of advertising tools and industries. The internet, the cloud, and a variety of other platforms store a significant amount of data that consumers provide while using the internet.

    Analysis of data

    Before implementing any type of tool, data-driven marketers have to derive what type of interest they are looking for. This is done through the set of data gathered, refined, modeled, and framed as per the requirement to obtain the right audience set and maximum funds utilization.

    Showing it to the targeted audience

    When data-driven marketers are sure of the demands of the customers, they will be targeting their desired audience in such a way that it connects with their motives and reflects their attention in a manner that fulfills the goal. This way, by following the proper process, you will get amazing results all thanks to data-driven marketing.

    Conclusion

    To further conclude, the marketing processes that are empowered by data promise to solve bigger problems making the job cost-effective and cutting down the wastage of time and energy. There’s the data liberation that exists, which opens up a plethora of possibilities. Also, because of the abundance of data available, every entity now has a deeper understanding of its audience’s consumers than ever before. So, data-driven marketing is certainly the future of marketing, at least as is predicted now!

    FAQs

    What is Data-Driven Marketing?

    Data-Driven Marketing is the process of marketing your brand based on customer information. Customer data is used to predict their needs, desires, and future behaviours, and marketing is done accordingly.

    Is Data-Driven Marketing better than the traditional methods of marketing?

    Yes, Data-Driven Marketing is a more efficient personalized marketing strategy.

    Why is Data-Driven Marketing important?

    Data allows marketers to market their brand to target and capture the correct and refined customer segments.

  • Neuromarketing: How Brands Decode Consumers Mind?

    Marketing is one of the prime things that is needed for the survival of any kind of business. Without marketing, there would be no demand for the goods or services of a business as well as its identity. It gives the brand an option to connect with people. Apart from building the business reputation, marketing also helps in boosting sales of the products and services.

    With time the way of marketing has changed, traditional marketing is not the only one in the industry right now. Digital marketing made its presence known, apart from that another way of marketing that is grabbing the attention of every industry is Neuromarketing. The name sound scientific and in reality it somehow is. In this article, we will talk about what actually is Neuromarketing and its future in our world. So let’s get right into the business.

    “GOODBYE, THE TRADITIONAL MARKETING! HELLO, NEUROMARKETING!”

    -Hedda Martina Sola

    What is Neuromarketing?
    How does Neuromarketing Works?
    Pros And Cons of Neuromarketing
    Examples of Brands That Used Neuromarketing
    Is Neuromarketing The Future Of Marketing?
    FAQ

    What is Neuromarketing?

    Neuromarketing is also known as consumer neuroscience. It mainly studies the brains of consumers and tries to alter their behaviour and decision-making in favour of the businesses products or services. It basically means measuring physiological and neural signals of customers, to understand their motivation, preference, behaviour, and decisions, these help in the development of the products, their pricing, and others.

    Traditional marketing by using surveys and all try to delve into the conscious mind. While neuromarketing tries to enter the subconscious mind that can give accurate results.

    Here neuroscience and cognitive science are used for marketing. It applies neuropsychology in market research and somehow or the other resulted in changing the behaviour of a consumer.

    How does Neuromarketing Works?

    Neuromarketing only works with the help of certain technologies and they are mainly brain scanning technology such as MRIs, facial encoding, sensory marketing, and Electroencephalography also known as EEG. This helps in realizing how the audience‘s brain reacts after watching an ad, a product, and its packaging design. The marketing depart of the business start collecting the results.

    Testing Ads

    They test ads by showing them to people and scientists realize what part of their brain is lighting up. This helps in making them understand what the person is actually feeling.

    Choosing Colors

    Coca Cola Product Colours
    Coca Cola Product Colours

    Colours are deeply related to emotions, so while making products marketing experts ask to research on this matter, so that perfect colour can be used for products to attract the attention of people.

    Product Placement-

    Apple Pricing Strategy
    Apple Pricing Strategy

    Too many products to choose from can make people, so advertisements or presentations must be made in such a way that they would not overwhelm the consumers.

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    Pros And Cons of Neuromarketing

    Pros

    • Neuromarketing research fills in the gaps that are left after traditional marketing research. Plus it helps in understanding the customers better. They get information from people’s facial expressions, eye movements etc.
    • Neuromarketing gets information from the subconscious mind of a customer, so it provides reliable data about what the customers actually want.
    • It has become a value for money as it gives out accurate information regarding the want of customers.

    Cons

    • There are people who believe that Neuromarketing breaks ethics by entering into the human brain and gathering information.
    • To use Neuromarketing specific skills are required, it is not possible for a traditional market researcher to apply neuromarketing research.
    • Privacy can also be a great concern as through, neuromarketing all the data that are derived after scanning the brain can get leaked and can lead to vulnerable situations.

    Examples of Brands That Used Neuromarketing

    To increase their sales and make their presence known in the market, various brands are using neuromarketing nowadays. Some of them are:

    Yahoo

    Yahoo created an ad of 6o seconds using electroencephalogram (EEG) where it can be seen people from around the world are dancing and are having fun. EEG reads the activity of the brain before running the ad on the TV or online. After the ad scored better, it was introduced as a branding campaign.

    Frito-Lay

    Frito-Lay snack used matte-finished packaging for their brand’s snacks. Before launching their product, they did neuro testing, which states that people started reacting positively to the matte finish packaging of their products. Naturally, this results in a drastic increase in the profit of Frito-Lay.

    HP

    One of the most famous brands for electric appliances in their advertisement for phone photo printers used a very emotional topic. The neuromarketing research shows that people reacted empathetically after watching the advertisement. The advertisement helps in producing a hormone called Oxytocin, which resulted in empathizing with people which led to the audience realizing that the brand cares about them.

    Hyundai

    This automotive manufacturing company is very much aware of the power of neuromarketing. Hyundai uses EEG testing of the brain signals of customers to understand what they actually want and what kind do they prefer that leads them to purchase the product. The data collected from EEG testing are used by Hyundai for designing the exterior of their automobiles, which leads to an increase in sales.

    PayPal

    The online payment service uses neuromarketing and attracts customers to use their payment service. They have seen that the USP are able to trigger the brain of their customers, so they made ads that focus on it, which boost the number of customers using their service.

    Cheetos

    Cheetos released an ad that showed a woman putting orange snacks with white clothing in the dryer. The EEG tests showed that people actually liked the ad, whereas a focus group study states the opposite. This shows that people can lie but their subconscious mind cannot.

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    Is Neuromarketing The Future Of Marketing?

    Although not every company has started using neuromarketing as its prime form of marketing but it has a huge potential. Some of the major brands are using this method already. This method is naturally able to read people’s emotions and know what they actually need this leads to companies creating products according to the customer’s choice, which naturally led to a boost in sales of the company. Companies care about making profits, so they will definitely start applying neuromarketing as a way of marketing in the future.

    Conclusion

    With the use of neuromarketing, the future of marketing is changing. Some may feel that it is not ethical and can harm people’s privacy but big brands are already using it in their favour. It is just a matter of time that traditional marketing will go obsolete and neuromarketing will rule every industry

    FAQ

    Is Neuromarketing Illegal?

    No, neuromarketing is not illegal but neuromarketing companies avoid testing kids who are under 18 years old.

    How Do You Become A Neuromarketer?

    You need to have an undergraduate degree in marketing, advertising, or consumer behaviour with a psychology or neuroscience course.

    What companies use Neuromarketing?

    Yahoo, Frito-Lay, HP, Hyundai, PayPal, and Cheetos are some of the companies that used neuromarketing.