Analytical Approach to Neuromarketing as A Business strategy Asela A. Burgos-Campero, Jose G Vargas-Hernandez.

Important Point Neuro-marketing is an emerging interdisciplinary field that combines psychology, neuroscience and economics (Lee et. al., 2007) whose term has been coined by Smidts in 2002 (Lewis and Bridger, 2005) Braidot (2005) states that the needs describe what people need to live. These needs become wants when the customer thinks about a product or service to satisfy demand and when you have the purchasing power to buy at the point of sale. The study of customer needs is at the heart of the concerns of the organizations as the key to staying competitive lies in the ability to identify and develop products and services that can satisfy them better than competitors. Both needs and wished involve the biological and social human beings, although ultimately is preferable to separate for study. The goal of neuro-marketing is to study the physiological response of the brain to advertising and marketing strategies. In order to evaluate the effectiveness of these strategies, the resulting brain activity from this phenomenon is monitored and measured using neuro-imaging techniques. So the aim of this study is to show an overview of the advances in neuroscience and how they have helped broaden the knowledge of those who from their niche continue asking questions about human behavior. The methods of "articulated answers" as market research, surveys and focus groups to name some of them, are not ideal to know the way a person feels about a product or service because it is difficult to describe in precise words the emotions experienced by a person to a stimulus such as a product. In the case of focus groups participants' responses may be influenced by the dominant group subjects, in addition to factors such as incentives, time and pressure that may have some interference in its report. Surveys in turn require substantial samples and design tools developed to be able to counter variables such as language, education and culture between subjects tested

Neurological tests reach a rigorous degree of scientific and actionable results for various reasons. The EEG is an acronym of the Electro encephalography. Hans Berger designed the first practical application of EEG in 1920 (Pradeep, 2010, 3). This passive technology uses sensors to pick up electrical signals due to activation of brain waves (Pradeep, 2010, 11). To do this, it uses a cap with electrodes that are placed on the head of each participant of the study to measure low voltage signals.

Despite the great potential, the applications of neuro-imaging in relation to marketing initially focused primarily on brands and consumer behaviour, particularly using EEG to explore people's reactions.

Apparently neuros-cientific methods can provide information on trust development. Early studies have linked activation of the caudate nucleus with this phenomenon (Lee et al., 2007). But this isonly the beginning of a fine and detailed research that will correspond to future research.

In this paper it is defined the strategy as the alignment or direction of the resources available to an organization in terms of changes in their environment (Vargas,2012) and it also focus on the strategy as the theory of a firm about how compete successfully (Peng, 2010, 10). Also the core of the concept is related to the formulation of the strategy and the implementation thereof. That is why the neurosciences in conjunction with cognitive science, psychology and marketing have gone into the business arena by providing new ways to observe and analyze consumer behavior and how it makes decisions.

When entering into the literature on this topic, it is realized that the human being is less rational than it has been seen before and maybe there is nothing wrong with this. Studies of preferences for a product show that culture values some aspects which may act as a secondary gain related to a primary need. In fact, the field of neuro-marketing should be considered alegitimate and important area that allows understanding human behavior in extremely important business relationships. Undoubtedly obtaining information from the neuro-marketing is more accurate because it takes into account not only the sociological and psychological profiles of customers, but also the cognitive. Thus, neuroscience gives us the ability to explore more of each group and segment the market on more solid bases

So the heart of the interaction between neuroscience and business is not using one method but in the way how to address business problems. So it is very likely to have a neuro-scientific approach in marketing research, in significant organizational problems and decisions will give a better understanding of why human beings behave generally or react the way they do and they will be in a better position to more accurately predict this

Analysis Analytical Approach to neuro-marketing as a Business strategy is a journal compiled by Asela A. Burgos-Campero, Jose G Vargas-Hernandez in 2013. The journal is published by Elsevier L and it consists of nine pages. This explains a lot about the field of business strategy and aim of this paper is to analyze the theoretical and methodological approaches to the study of neuro-marketing for designing business strategies. Word neuro itself is a study of nervous system and neuro-marketing combines psychology, neuroscience and economics the point is refers to the use of modern brain science to measure the impact of marketing and advertising on consumers. Neuro-marketing techniques are based on scientific principles about how humans really think and decide which involves brain processes that our conscious minds arent aware of. When combined with sound experimental designs and procedures, these new techniques provide insights into consumer decisions and actions that are invisible to traditional market research methodologies. I will compare this journal with marketing strategy that include in internal factors. The marketing itself in Internal factor have seven basic function and I will explain it one by one. The study of customer needs is at the heart of the concerns of the organizations as the key to staying competitive lies in the ability to identify and develop products and services that can satisfy them better than competitors. Actually, neuro-marketing is also implemented a little bit of science study. Like for example there is EEG. EEG is an acronym of the Electro encephalography. Hans Berger designed the first practical application of EEG in 1920. The EEG has become the best instrument to evaluate the wave brain handles cognitive information along providing subjacent information about neural mechanisms. This system may be use 256 electrodes to monitor brain activity. This device displays the products or advertisements on a sensitive screen to the sight and look, which allows determining what people see every millisecond in real time. The results show the areas that the participating persons observed for

longer period of time and the path of the eye movements. Despite the great potential, the applications of neuro-imaging in relation to marketing initially focused primarily on brands and consumer behaviour, particularly using EEG to explore people's reactions. Also it was used to assess individual preferences between the brand familiarity and preference for the product, comparing familiar vs. no familiar brands.

The collaboration between neuroscience and marketing can expand the knowledge in important areas, from the expected questions such as the relationship between the consumer and the product, the influence of advertising stimuli, the formation of a brand, unmet needs and business opportunities, to the interaction of organizations in specific market contexts and identification of emotions in terms of brain activation, for contemporary society. To research this aspect at organizational level is very important because it can be designed better strategic alliances, joint ventures, mergers and / or acquisitions. The psychology of pricing on its part has been investigated in order to know the effects on the consumer price. Despite the amount of literature available, companies seem to use very little of this information when setting their prices at a disadvantage getting (Lee, et al., 2007). Recent studies have explored the mistakes made by consumers when they process terminated prices 0.99 compared with integers, suggesting that the individual pays less attention to the last sequence numbers. Others have investigated the social role of the same in terms of brain activation (Lee, et al., 2007). It appears that commodity prices are influenced by emotional based rewards. Knowing the price of a product as salt price compared to the price of a sports car shows brain activation in areas other than suggesting a different processing of the same.

The strategy concept may have different views. In this paper it is defined the strategy as the alignment or direction of the resources available to an organization in terms of changes in their environment (Vargas, 2012) and it also focus on the strategy as the theory of a firm about how compete successfully (Peng, 2010, 10). Also the core of the concept is related to the formulation of the strategy and the implementation thereof. By understanding more scientific and specific the various types of customers, inquiring about their cognitive and perceptual characteristics to apply this knowledge to satisfy their needs and wants is one of the major interests of neuro-marketing (Braidot, 2005, 210). Therefore, neuro-marketing can help

companies to strategize more focused and less uncertainty. The resource-based view suggests that the specific capabilities of a firm lead to the difference in performance. The winning firms have valuable skills, unique and difficult to imitate (Peng, 2010:16). So as more objective information which offers neuro-marketing provides insight into customer needs to enable organizations to better ability to innovate, develop and refine their marketing strategies. While most research analyzes how the brain perceives reality and focus on sensory processing of information, currently is being analyzed numerous experiments that reveal how it affects the image of the brand in those preferences (Braidot, 2005, 216). Unlike conventional advertisers that work with preconceived ideas about the success of an announcement, it should be fun and the design must be conspicuous (Gladwell, 2000, 105).

Studies of preferences for a product show that culture values some aspects which may act as a secondary gain related to a primary need. People learn to meet their needs in different ways according to their socioeconomic and cultural profile. In this same line many companies undertake communication campaigns to achieve desirable social goals, as to persuade young people not to drink, not to smoke, not to pollute the environment, among others. These campaigns besides showing a behavior consistent with the values of society, they also underpin a corporate image with long-term benefits (Braidot, 2005). The association of the brand with these behaviors carries a code that gives consumers a strong group membership based on the ideology of the same and therefore strengthens their affective bond. This paper is also talking much about reinforces the complexity of decision making and the importance of emotions, situational aspects and information resources available to the consumer. To quantify the behavioral processes, takes the form in which decisions can be divided into five steps: (a) identify the problem before which a decision is made (b) assess the possible choices (c) make the decision based on the evaluation of the available options (d) consider the resulting consequences (e) learn from this process to make better decisions in the future.

Here are six major areas where neuro-marketing is being used today:

Branding: Brands are ideas in the mind that draw strength from the connections they make. Neuromarketing provides powerful techniques for measuring brand associations.

Product design and innovation: Neuromarketing can measure consumer responses to product ideas and package designs that are largely automatic, emotional, and outside our conscious awareness.

Advertising effectiveness: Much advertising impacts us through nonconscious means, even though we dont think it does. Neuromarketing explains how.

Shopper decision making: Neuromarketing shows how store environments directly influence how shoppers decide and buy, and its not a logical process.

Online experiences: The online world provides new challenges to our old brains. Brain science shows the many ways we can be subtly influenced as we go about our online activities.

Entertainment effectiveness: Entertainment creates experiences in peoples minds that can influence attitudes, preferences, and actions. Neuromarketing shows what happens when entertainment transports us into an imaginary world.

Source: http://www.dummies.com/how-to/content/what-is-neuromarketing.html 4 Ps of the marketing mix: Product: Product is exactly the main point to be market. Product have to full fill what customer need and want. Product can vary in quality or in services they offer and is targeted to consumers who usually have the need for a specific type. So as more objective information which offers neuro-marketing provides insight into customer needs to enable organizations to better ability to innovate, develop and refine their marketing strategies. Pricing: Decisions influence the demand and profitability. In the journal, pricing have the most important place that can avoid the product to be marketed. Promotion: Or in this paper we will found it as advertising. Unlike conventional advertisers that work with preconceived ideas about the success of an announcement, it should be fun and the design must be conspicuous. However, marketing executives and

advertising so far have based their predictions on intuition, experience and articulated consumer reports to try to predict whether advertising is effective. Place: there are not many words talking about strategy for place.

There are seven basic function in the marketing: 1. Customer analysis Customer analysis in this journal identifies target customers, ascertains the needs of these customers, and then specifies how the product satisfies these needs. Before beginning a customer analysis, it would be helpful to have a good understanding of basic marketing terminology. And in the book, to know about our customer needs, desires, and wants. We learn about different stage of customers in customer analysis. First are the loyal customers who purchase the companys services regularly. Second are the customers who purchase the services and products occasionally but also use competitors services. Third are the not yet customers who have been targeted by the companys marketing but have not yet purchased their services. Fourth are the customers who used to use the companys services but are no longer, for some reason, doing so. 2. Selling product or services This Journal talking about develop the ability to select and offer the right products or services to your customers in a competitive market. More than any other factor, your ability to make this choice will determine your success or failure. 3. Product and service planning Product and service plan coverage goes beyond most manufacturers warranties, guaranteeing that your product will perform to the manufacturer's specifications for the duration of the coverage. 4. Pricing The pricing has to be consistent with the positioning. People really do hold strongly to the idea that will get what you pay for.

5. Distribution Its the method you use to get your product or service through various distribution channels to the ultimate purchaser or end-user in other words, how and where the consumer buys your product or service. The location of your business depends on a number of factors as outlined below: are you retailing direct to the public or working through an intermediary? is it convenient for customers to visit you? where is your target market located? how important is exposure to your business? where are your major competitors located? what is the occupancy cost?

6. Marketing research The strategy concept may have different views. In this paper it is defined the strategy as the alignment or direction of the resources available to an organization in terms of changes in their environment (Vargas, 2012) and it also focus on the strategy as the theory of a firm about how compete successfully (Peng, 2010, 10). Also the core of the concept is related to the formulation of the strategy and the implementation thereof. That is why the neurosciences in conjunction with cognitive science, psychology and marketing have gone into the business arena by providing new ways to observe and analyze consumer behavior and how it makes decisions. 7. Opportunity analysis The goal of neuro-marketing is to study the physiological response of the brain to advertising and marketing strategies. In order to evaluate the effectiveness of these strategies, the resulting brain activity from this phenomenon is monitored and measured using neuro-imaging techniques. Neuroscientists are now able to directly study the frequency, location and timing of neuronal activity in an unprecedented way. Needs become wants when the customer thinks about a product or service to satisfy demand and when you have the purchasing power to buy at the point of sale. The study of customer needs is at the heart of the concerns of the organizations as the key to staying competitive lies in the ability to identify and develop products and services that can satisfy them better than competitors.

Strategy Management Assignment International journal Analytical Approach to Neuromarketing as A Business strategy Asela A. Burgos-Campero, Jose G Vargas-Hernandez.

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