For a non-fiction book about business, Buyology by Martin Lindstrom is sure making a lot of waves across the world of business and beyond, and for good reason, too. After using MRIs of more than 2000 consumers to observe their behaviour with regard to conventional marketing techniques, Lindstrom found that most ads actually fail to achieve their intended purpose, sometimes even going so far as to backfire miserably, as can be seen with the example of the cigarette carton label. Instead, he contends that purchasing decisions are often subconscious and emotional rather than rational. Although some may argue his scientific method of analyzing the tastes of consumers may not apply to the real world, the evidence provided so far is fairly concrete. Personally, I found his fusion of biology and business fascinating, as it proves that most areas of study are interdisciplinary by nature.
Topics from the syllabus the article covers include 4.1 The Role of Marketing, 4.2 Marketing Planning, 4.3 Product, 4.5 Promotion. However, I will only focus on one of these topics, 4.5 Promotion.
Lindstrom's research certainly has many implications about conventional notions of promotion. By pointing out that large warnings on cigarette packets only stimulate the desire to purchase the good in question, governments and NGOs involved in de-marketing such "demerit goods" may need to reconsider alternate promotion strategies to achieve their intended effect. Additionally, businesses should start considering ways to appeal to the hearts of their target audience rather than their heads, as it appears that consumers tend to go on their instinct more than anything else (hence proving that humans are irrational?). An example of such a method would be appealing to consumers’ nationalism instead of touting the benefits of the product in question. If organizations choose to take Lindstrom’s research into consideration when considering their promotion strategies, they might just be the push they need to capture more market share and profits in the long run. Although one must inevitably consider the ethical implications of researching the biology behind consumer desire, it must be said that cracking the biological code to marketing would undoubtedly give any business an edge.
is it just me or does your layout cut off your words? (:
ReplyDeleteHi Val,
ReplyDeleteCool Article.
I am in total compliance with all the points you mentioned above. In regards to Lindstrom's discoveries, companies may want to reconsider their promotion methods to inspire the "desire" that drives consumers to purchase what may not actually BE the best, but what they THINK is the best.
Hi Val,
ReplyDeleteCool Article.
I am in total compliance with all the points you mentioned above. In regards to Lindstrom's discoveries, companies may want to reconsider their promotion methods to inspire the "desire" that drives consumers to purchase what may not actually BE the best, but what they THINK is the best.
Perhaps Lindstrom's research or physcological research can be employed in qualitative marketing research for businesses.
Qualitative research methods are used primarily to define a problem and generate hypotheses. They are often used as the prelude to quantitative research in order to identify determinants, and develop quantitative research designs. They can be better than quantitative research at probing below the surface in order to understand what drives and motivates behaviour.
With this information in mind, businesses can improve their promotion methods to better suit the needs of consumers
Hi Val. I suppose we'd like to think we are all rational consumers, but as you point out, Lindstrom's research suggests otherwise. A great example of how math and science can reveal how the world works. Thanks for sharing the article and your insights.
ReplyDeleteHi Val,
ReplyDeleteI thoroughly enjoyed reading your article. I tend to agree with Lindstrom’s findings on the ruling of emotion in making a purchase decision. It works best for products which appeal to the aspiration of customers, such as buying a car for image and status, or even purchasing premium jeans for vanity and personal style. However, there are still many buying decisions backed by rational thinking, free of emotional influence. People go to buy medical insurance, a microwave oven or to get a domestic helper for practical reasons, with very little emotional content. As many purchase decisions are not rational, this explains why managers are willing to spend huge amounts of money in promotion and advertising. Instead of going to the internet or catalog sales, some firms insist on selling in stores in order to maintain a personal touch with customers as a successful salesperson can trigger a purchase with the use of emotional selling techniques.